Starting your own business is an exciting opportunity, but it can be challenging. To help guide you through the process, these resources cover the important aspects of starting a business.
This resource combines business-related information from government agencies into a one-stop platform for businesses. It focuses on three areas:
Wizards - The Start a Business wizard walks you through the process and connects you to important information. It also provides other resources for starting a business, including help with writing a business plan, as well as registering and running a business. You can also explore other wizards, including how to access financing for your business.
Events - Explore a variety of events related to starting a business, including seminars, trade events, and webcasts.
You can also get business advice from experienced executives on insurance and other topics through SCORE, a non-profit resource partner of the SBA.
The IRS provides federal tax information for people starting a business, as well as information to assist in making basic business decisions. Find out the steps you should follow in the checklist for starting a business.
Each state has additional requirements to start and operate a business. For links to information regarding state-level requirements for starting a business, refer to the IRS State Government Websites directory.
When starting a business, you may decide to hire some help. The SBA has information on hiring your first employee that explains how to get the hiring process started and make sure you comply with key federal and state regulations.
You can also find out the employment eligibility of your employees by registering with E-Verify.
Consumer Protection Law
The FTC's Business Center can help your business understand its rights and responsibilities in protecting consumers. It covers several important areas:
Advertising and Marketing - Under the law, any claims in advertisements made by a business must be truthful, cannot be deceptive or unfair, and must be evidence-based.
Credit and Finance - Businesses that extend credit to consumers, are in the business of offering loans, or help companies that do, have compliance responsibilities.
Privacy and Security - Businesses must protect sensitive data and be clear about their information-sharing practices.
Selected Industries - Stay up to date with the rules and laws of various industries.
Resources for Military Veterans
These programs and services offer support to veterans starting a business:
Register your business to be eligible for special purchasing opportunities at VetBiz.gov.
The Office of Veterans Business Development helps maximize the availability, applicability and usability of all administration small business programs for Veterans, Service-Disabled Veterans, Reserve Component Members, and their Dependents or Survivors.
If you want to start your own home-based business, the Small Business Administration (SBA) offers a guide for home-based businesses. This guide includes start-up resources, tax information, and information about buying a home-based franchise.
Franchising, unlike starting a business, does not require you to start from scratch. It can be a great alternative if you want to have some guidance in the startup phase of the business. But investing in a franchise, like all investments, involves financial risk.
What Is Franchising?
A franchise is a business model that involves one business owner (franchisor) licensing trademarks and methods of operation to an independent entrepreneur (franchisee). Sometimes franchises are called chains.
There are two kinds of franchising:
Product/trade name franchising – A franchisor owns the right to a name or trademark and sells that right to a franchisee.
Business format franchising – A franchisor and franchisee work together. The franchisor often provides a full range of services, including site selection, training, product supply, marketing plans, and even help in obtaining financing.
Under the Franchise Rule, enforced by the Federal Trade Commission (FTC), a franchisor must give a potential franchisee important information in a Franchise Disclosure Document (FDD) at least 14 days before a contract is signed or any payment is made.
Important Factors to Consider
Consider these factors to decide whether investing in a franchise is right for you:
Your financial situation - As buying into a franchise is a major investment, you will need to figure out how much you have to safely invest. Can you afford to lose your entire investment? Will you invest on your own or with others? Do you need financing?
Your abilities and goals - Think about your skills as a business manager or owner. What special skills do you have? Do you want a franchise that requires technical experience, specialized training or education? Will you run the business yourself or hire a manager?
Your timetable - Franchise agreements typically last several years, often 5 or 10. Once you commit to a franchise contract, you must stay with it until the term ends, even if you are not making much of a profit (or any profit at all).
Your comfort working under a franchisor's control - When you buy a franchise, you're a business owner, but you don't operate independently. You're part of a network and must follow rules that call for uniformity. A franchisor may give you less flexibility over sales area, training, suppliers, or the merchandise you sell.