Every prospective small business owner must go through the same process to establish a company. To make it easy for you, we’ve pulled together a list of the 8 steps to starting a business in the Finger Lakes Region.
1. Select a Business Structure
When starting a business, one of your first steps is to determine which business structure would be best for you. The legal structure you chose can impact your tax position, your personal liability, how many people are involved in the business and other important factors. The following resources can help you select a business structure:
Provides brief descriptions, an online tutorial, the pros and cons, and a side-by-side comparison of the most common business structures.
SCORE Rochester provides local assistance when selecting – or revising – your business structure.
The Brockport Small Business Development Center can help you determine which business structure is best for you.
2. Apply for an EIN
An Employer Identification Number (EIN) or Federal Tax Identification Number is used to identify a business. Most businesses will need an EIN for a variety of reasons such as filing taxes or obtaining permits or licenses.
This IRS site lets you apply online for your business EIN.
New York State’s Online Permit Assistance and Licensing website helps you find the business permits you need.
3. Develop a Business Plan
While writing a business plan can seem like an agonizing and difficult task, it is a critical component of starting a business. If you plan to seek funding of any type, a business plan is a requirement. Fortunately, there are several resources to help you with this task.
Provides an overview, outline, template and online tutorial on how to write a business plan.
SCORE provides templates for your business plan, bank loan request, financial statements and more.
The Urban League of Rochester assists minorities and women in launching and growing their businesses through classroom instruction and one-on-one technical assistance.
4. Obtain Funding
Some times, banks and other agencies act as clearinghouses for distributing start-up capital. They use formulas and criteria to determine eligibility for loans. These local organizations and resources are available to help you through the process of obtaining funding to start your business.
This is a list of the BIC's Funding Resources categorized by region, counties, and cities. A "Find by ZIP Code" search option is also available.
Articles, self-assessment and checklist regarding what type of loan is best for your business, what lenders look for, and what you should include in your loan package.
SCORE provides an overview of options for funding your small business as well as a discussion about grants, which are not usually a viable way to obtain funding. They also provide a list of resources in the Rochester area to assist you.
The Enterprise Center carries out its mission by making loans to small and micro businesses, and by accompanying those loans with a strong program of pre-loan and post-loan technical assistance and training programs designed to support our clients’ growth.
The Ibero American Investors Corporation's purpose is to provide equity capital, long-term loans, and management assistance to qualified small businesses.
5. Select a Location
Location, location, location! Finding the right place to run your business is critical. There are also legal restrictions to be aware of regarding location of a business.
Learn how you can best select a location for your new business.
Greater Rochester Enterprise provides a tool so you can review available commercial sites and buildings in the area.
6. Get Licenses and Permits
City, county, and state governments often require business owners to obtain permits and licenses to run a business. Depending on the type of business, there may also be additional, special permits or licenses required. For more information, visit these resources:
Provides an overview of the process for registering your business with the federal and state government.
Monroe County.gov lists the licenses, permits and taxes, as well as business laws and regulations applicable when conducting business in Monroe County.
The Brockport/Rochester SBDC can assist you in complying with licensing and regulations.
7. Develop a Marketing and Sales Strategy
Creating a marketing plan or strategy is critical to your business success. Creating a marketing plan will help you understand who your target market is and how best to reach that market.
Overview of the key elements of a marketing plan, sample plans and worksheet for creating a marketing budget.
SCORE provides assistance with marketing your business through workshops and mentors.
The Brockport/Rochester SDBC can help you develop a marketing plan.
8. Get a Handle on Finances
Properly managing your business means establishing an accounting system and a reliable way to record business transactions. The following financial resources will help increase your chances of success:
Understand your financial statements and business transactions in order to start and run a thriving business.
Receive free advice from local SCORE counselors who guide entrepreneurs on how to use financial reports to grow a business.
