STARTING A NEW BUSINESS

WHAT YOU NEED TO KNOW



2. STARTING QUESTIONS

• Are you starting a business or purchasing a current operating business?

• Selling the Product or Service:
  • Product
    • Resale Product
    • Manufactured Product
  • Service
    • Office Based Service
  • Outside Service

• Do you have any experience selling your product or service?

• Is your product or service provided by other companies? (Who is your competition?)

• To whom are you selling your product and service?
  • Consumer
  • Business

• What is the selling price range?

• Target Market
  • Define Target Market
  • How to reach Target Market
  • How large is the Target Market?

• Purchasing, Manufacturing, and Related Costs of Your Product or Service.

Resale Product

• Who are your suppliers and what are the financial arrangements for payment?
• Do you have the space to hold inventory?
• How would the product be delivered to customers?
• Can your product become obsolete, worthless, spoiled?

Manufactured Product

• Will you need to obtain a Patent?
• Will you manufacture the product or sub-contract the manufacturing?
• Do you have the space to hold inventory?
• How would the product be delivered to customers?
• What are your direct and indirect manufacturing costs?
• Can your product become obsolete, worthless, spoiled?

Cost of Goods Sold

• Product for Sale
  • Raw Materials
  • Resale Products
  • Freight-In
  • Packaging Supplies
  • Factory Labor & Related Payroll Taxes & Employee Costs
  • Factory Overhead
    • Rent
    • Electric
    • Insurance
    • Factory Expenses – Cleaning Services & Supplies, Alarm Contracts, Repairs, etc.

General, Administrative and Selling Expenses

• Salaries
• Pension Plan
• Insurance - Medical
• Insurance - Long Term Care
• Employee Benefits - Other
• Fica & Medicare Tax
• Federal and State Unemployment Insurance Tax
• Dbl Insurance
• Workers Compensation Insurance
• Rent
• Electric
• Rent - Storage
• Telephone
• Internet Services
• Office & Stat, & Comp. Supp
• Postage & Messenger Service
• R & M - Office Equipment
• Office Repairs & Maint.
• Equip. Maint. Contracts
• Computer Consulting
• Accounting, Legal, Computer Fees
• Professional Publications
• Professional Seminars
• Dues & Subscriptions
• Licenses & Permits
• Auto & Truck Rental
• Auto & Truck Expenses
• Parking & Tolls
• Trains, Taxis & Buses
• Travel
• Advertising & Promotions
• Entertainment & Meals
• Gifts & Holidays
• Insurance – Business, Liability, etc.
• Interest
• Bank Charges
• Moving Costs
• Federal Corporation Tax
• State Corporation Tax
• NYC Corporation Tax
• New Jersey Corporation Tax

DISCLAIMER

NOTICE:

U.S. Treasury Circular 230 Notice:

Any tax advice contained in this document is not intended or written to be used, and cannot be used for the purpose of:

• avoiding penalties that may be imposed under the Internal Revenue Code or by any other applicable tax authority, or

• promoting, marketing or recommending to another party any tax-related matter addressed herein.

1.   Introduction <<                                                            >> 3. Funding & Business Locations