The toughest part is finding the right business that will provide the services or products you want to manufacture. Once you have found the right one, it’s time to create your business plan. A good business plan will include a description of what your business is going to do, who your target market and consumers will be, how you are going to get your products or services to the market along with a projection of income, expenses and cash flows for the first three years.
I suggest taking this business plan to your accountant for preparation assistance or review. The right accountant will guide you through the financial component of the plan while giving you an unbiased opinion on your underlying assumptions. A CPA will have been exposed to a wide variety of industries and will help you determine if you have enough capital to start your venture.
After completing your business plan, you should form a team of professional advisors. This team needs to include an attorney, an insurance agent and a commercial banker. Your accountant can help you save time by providing a short list of referrals to develop this team. I suggest you request at least two referrals for each position on the team so that you can make sure you are comfortable with the individuals and their communication styles.
Once you have the financial backing, meet with your attorney to create the entity that makes sense for your company. You have a variety of entity choices including corporations, s-corporations and limited liability companies. These entities have different tax implications, so make sure your accountant and attorney agree on this decision.
Time to put your business plan into action – good luck!
Timothy Beine, CPA, is executive vice president of Pewaukee-based Jannsen + Co.
