HOW TO SUCCESSFULLY START YOUR OWN BUSINESS .. SPECIAL SECRETS

    The American Dream is, and always will be, to come up with an idea,
    start a business and become rich from your own efforts. Based upon
    this motivation, thousands of businesses fail each year, due
    primarily to not being familiar with the basics involved in running
    a business.

    This report will enlighten you, and give you a number of suggestions
    you can use to better guarantee your chances for success.  This
    report is written with the warning that any and every business
    venture contains certain inherent risks, and any number of
    alternatives.  We do not espouse that any one way is the right way
    or that our suggestions are the only way.   On the contrary, we
    advise that before investing any money in a business venture you
    seek counseling and help from a qualified accountant and/or
    attorney.

    Just about the first thing you should consider before deciding to
    start or purchase a business is the legal form you'll be operating
    under.  There are basically four choices: sole proprietorship,
    partnership, limited partnership, and/or corporation.

    Each has a number of advantages and disadvantages.  We'll try to
    enumerate some of them for you.

    As much as anything else, for many people, starting a business is a
    form of ego-gratification, and they form a corporation for some sort
    of prestige gain - just to say, "I own a corporation."

    With just a little bit of observation, you'll find that one of the
    major causes of business failures is due to the founder wasting
    start-up capital on frills, such as an impressive store-front
    office, expensive furnishings, and corporate legal costs.

    One of the basic traits you must develop if you're going to be
    successful in business, is a tight hold on your expenditures.  In
    fact, a good rule of thumb is that anything that does not make money
    for you or protect your investment, should not be purchased at this
    time.  Very definitely, this applies to the expense of setting up
    your own corporation.

    Unless you have a partnership and start your business as such, the
    only real advantage to forming a corporation would appear to be that
    a corporate structure will semi-protect the property you personally
    own.

    As an example, you own a home and car.  You form a corporation to
    protect these possessions from business losses.  Yet, if you can be
    found guilty of misusing corporate funds, your business creditors
    can pierce the corporate shield and come after your possessions.

    Basically, if you invest everything you have in your business, as
    most newcomers do, you don't usually need a corporation because you
    have nothing to protect.  Your household possessions, personal
    belongings, generally your car, and even a portion of the equity in
    your home is protected by the homestead provision of the Federal
    Bankruptcy Act, and cannot be taken away from you.

    As a sole proprietor or partner of a business you'll be paying taxes
    on your overall earnings, much the same as if you were holding down
    a salaried or hourly paid job.  Whether you do or don't take out
    money as a salary will have no bearing on the earnings of your
    business and tax return.

    The often advertised advantage of incorporating, that you can
    manipulate your salary in order to save on tax dollars, is real
    because of corporation laws.  However, the IRS frowns on this
    practice.  When your business is successful and making a lot of
    money, definitely check with your accountant on the advantages of
    incorporating.

    As a corporation, you'll be subject to a number of other drawbacks
    as well:  generally higher state taxes, stricter laws concerning the
    operation of your business, more elaborate accounting procedures,
    and legal papers that are required just about every time you make a
    major move or sign almost any contract.  Thus, your legal and
    accounting fees will be much higher as a corporation than will those
    required for a sole proprietorship type of business.

    As a sole proprietor or partnership, you'll find many areas require
    the registration of your business name.  The cost however, is
    minimal, ranging from $5 to $100.  About the best way to find out
    what laws apply in your area, is to call your bank and ask if they
    need a fictitious name registration card or certificate in order for
    you to open a business account.

    Selecting a name for your business is quite important to you and
    particularly relative to advertising.  Your business name should
    describe the product or services you offer.  Fancy names such as,
    Linda's Clipping Service will lose potential "walk-in and passing"
    customers to the beauty shop across the street that calls itself,
    Patti's Beauty Salon or Jane's Hair Styling shop.

    The advantage of using your full name in the title of your business,
    such as Johnny Jones' Meat Lockers, has the advantage of making
    credit somewhat easier to come by - provided you pay your bills on
    time - but it also includes the disadvantage of confining your
    services to a local or at most, a regional area.

    Should you buy, lease, or rent space for your business?  Think twice
    before you make any decision along these lines.  Most businesses
    tend to grow quickly or they never get off the ground. There are a
    few exceptions, but only a very few, that tend to grow at a modified
    rate.

    So, buying a piece of property and setting up your business on or
    within that property, obligates you to ownership regardless of what
    happens to your business.

    Leases are almost always very strong contracts written by attorneys
    to the advantage of the property owner.  When you sign an agreement
    to pay someone for the use of their space over any length of time,
    you're "nailed in" to paying for that space regardless of what
    happens to your business.

    In the beginning, it's wise to either get the shortest-term lease
    possible, or arrange to rent with an option to lease at a later
    date.  This does not apply to a retail business, unless your
    particular business happens to be an untried one.

    Definitely, you should open a business bank account.  In selecting a
    bank for your business, scout around and look for one that can, and
    will help you.  Determine what your banking needs will be, and then
    via telephone, interview the managers of the banks in your area.
    The important thing is to be discretionary and not select just the
    most convenient bank to your business location.

    A point to remember:  the closer you can make the relationship
    between you and the bank manager, the better your chances are going
    to be for approval on loans and/or special favors you may need at a
    later date.

    Try to become acquainted with as many of the bank employees as
    possible.  The better you know them, the more courtesies they'll be
    extending especially to you in the course of your association.

    Just as a doctor is a specialist in his field, and you go to him for
    medical problems, your banker is a specialist in his field and you
    should go to him for your money problems.  In business, you'll have
    to learn that everyone is an expert in his own line of work, and in
    your associations with other business people, refrain from acting
    like a "sharpie" and/or pretending that you know exactly how
    everything works in someone else's specialty.

    You'll find that very often, different banks specialize in different
    types of businesses.  As an example, you're sure to find banks that
    specialize in real estate transactions, export-import businesses,
    and even manufacturing operations only.  What I'm saying here is
    that if you're planning to sell a fairly expensive item, your
    customers will probably need and/or want financing.  It will behoove
    you to select a bank familiar with your type of product that will
    afford your customers, through you, contract financing.

    Some of the questions you should ask of your banker include the
    following:

    Is it necessary to maintain a certain balance in your account before
    the bank will approve a loan for you?

    What qualifications must you have in order to obtain a line of
    credit with the bank?

    Does the bank limit the number of loans, or types of loans it will
    approve for small businesses?

    What is the bank's policy regarding the size of a check you might
    deposit that requires holding for collection?

    And what about checks less than that amount - will they be
    immediately credited to your account?

    In almost all types of businesses, it will be to your benefit to set
    up with your bank a method of handling VISA, Master Charge, and
    regional credit cards.  The important thing here is to ultimately
    set up your account in the bank that will service all of these
    credit transactions for you - one stop for all your banking needs.
    In most instances, you'll find that having the capability to fill
    orders/make sales via credit card transactions, will increase your
    volume of sales appreciatively.

    Once you've made the decision as to which bank is going to handle
    your account, you'll need your Social Security Number or you Federal
    Employer's Identification Number, your driver's license, the
    fictitious name certificate, and if you're requesting a VISA or
    Master Charge franchise, you'll also need a financial statement.
    For corporations, you'll also need a corporate resolution approving
    of the opening of your business account.

    There are different policies exercised in just about every state
    regarding installation/hook-up charges by the telephone and utility
    companies.  Some require a deposit, and some don't.

    You'll find that a great number of city business license departments
    are there solely for the purpose of collecting another tax.
    Depending on the type of business you're asking a license for, the
    building and zoning people may inspect your premises for soundness
    of structure and safety.  Generally, you won't encounter any
    difficulties - you simply pay your fee to operate your business in
    that city, and the clerk types your name onto a city license
    certificate.

    Relative to sales tax permits and licenses, each state's rules and
    regulations vary widely.  The best thing to do is call your state
    offices and ask for information concerning registry and collection
    procedures.  Many states require an advance deposit or bond, and
    you'll find that some wholesalers or manufacturers will not sell to
    you at wholesale prices until you can show them your sales tax
    permit or number.

    Should your business entail selling your products or services across
    state lines, in an other state, you're not required to collect taxes
    except in those where you have offices or stores.

    You may find also that your particular business requires the
    collection of Federal Excise Taxes.  For information along these
    lines, check in with your local office of the Internal Revenue
    Service.

    Some states also require certain businesses to hold state licenses,
    such as those required in many states for TV Repairmen. These are
    known as "occupational permits" and are most often required of
    barbers, hair stylists, real estate people and a number of other
    consumer oriented businesses.  If you have any doubts, check with
    your state offices for a list of those occupations that require
    licensing.

    Any business doing business in any type of interstate commerce is
    subject to federal regulations, usually through the Federal Trade
    Commission.  This means that any business that shops, sells or
    advertises in more than one state is subject to such regulation, and
    this includes even the smallest of mail order operations.

    Normally, very few business people ever have any contact with the
    federal regulatory agencies. The only exceptions being when there is
    a question of your operating your business unethically or illegally.

    Any business that sells or distributes food in any manner almost
    always requires a county health department permit.  If your business
    falls into this category, simply call the county health department
    and invite them out to your place of business for an inspection.
    The fees generally range from about $25, depending on the size of
    your business when they first inspect it for permit approval.

    There are also a number of businesses that require inspection by a
    fire marshal, and fire department approval.  Generally, these are
    those that handle flammable materials or attract large numbers of
    people, such as a theater.  Overall, the local fire department has
    to be allowed to inspect your premises whenever they desire to do
    so.

    You may also run into a requirement for an air and/or water
    pollution control permit.  These specifically apply to any business
    that burns anything, discharges anything into the sewers or
    waterways, or use any gas-producing product, such as a paint
    sprayer.

    Without a doubt, you'll need to check on local regulations relating
    to advertising display signs.  Each city or township makes its own
    rules and then enforces those rules according to its own thinking -
    check before you contract to have a sign made for your business.

    The design and placement of your sign is very important to your
    business - specifically to retail establishments - but let me remind
    you that your business sign is usually the first thing a potential
    customer sees and as such, it should catch his eye and leave an
    impression that lasts.  It would be a good idea to ride around your
    town and take a look at the signs that catch your eye, and try to
    determine the impression of the business that sign leaves on you.
    This is a basic learning formula for determining the design, size
    and placement of your business sign.

    Some of the other things to consider before opening for business -
    If you intend to employ one or more employees, you'll be required to
    deduct Federal Income Taxes, and Social Security payments from their
    checks.  This will involve your filing for a Federal Tax Number and
    necessitates contact with your local IRS Office.

    Most states have "unemployment taxes" which will have to be deducted
    from the pay checks of any employees you hire.  And there are a
    number of states that have income taxes - disability insurance - and
    any number of other taxes.  Again, the best thing to do is check
    with your local office of the IRS.  And above all else, don't forget
    to ask for the rules of the minimum wage law, and comply.

    When your business grows to the point of needing additional help,
    don't be afraid to look for and hire the help you need. When you're
    ready to hire someone, simply run an ad in your local paper and/or
    register your needs with the local office of your state's employment
    service. Businesses either grow or die, and those that grow
    eventually need more people in order to continue growing.  When that
    time comes, hire the additional people you need, and your business
    will continue growing.  If you don't, for whatever reason, you'll
    find yourself married to your business and your business growth
    stymied.

    Regardless of how small your business is when you begin, never walk
    in with the thought in mind that it's something to keep you busy.
    Anyone with an attitude of that kind is a fool.  You begin and make
    a business successful in order to realize financial freedom.
    Establish your business.  Put it on its feet, and then hire other
    people to do the work for you.  And those businesses that require an
    operations manager, or some one to run a phase of the business
    you're too busy to handle, hire the person needed or the business
    will surely suffer.

    To protect the investment of your business, you need business
    insurance.   If you've never had any experience with business
    insurance, simply look under the heading of "business insurance" in
    your phone directory.  Ask for bids from several different companies
    or agents...  Primarily, you should have a policy that gives you
    general liability, fire, workmen's compensation, business
    interruption, and vehicle coverage.  You may also want coverage
    against possible losses related to burglary, robbery, Life &
    Accident, Key Man, and Fidelity Bonds.

    As the sole proprietor of a business, you won't be paid as an
    employee, so there will be no income tax deducted from whatever you
    withdraw from the company's earnings. What you'll have to do is
    again check with the IRS Office for a Tax Guide For Small Businesses
    Handbook, and probably end up filing an estimated tax return on a
    quarterly basis.

    The minute you open your doors for business, you'll have to spend
    some time engaged in the work of book-keeping.  Exactly how, and
    using what forms, you keep books, should be on the recommendations
    of a good tax counselor...  The same holds true for your overall
    business and/or payroll accounting system.  Look for an experienced
    CPA that knows the accounting problems to your particular kind of
    business, and solicit his advise/counseling.

    If your business is going to involve the possible purchase or lease
    of operating equipment, again seek the help of your tax counselor
    for the most advantageous method of obtaining the needed equipment.

    Basically, arranging for your suppliers to give you materials on
    credit will depend upon your honesty and personal financial
    statement.  The best way is usually a personal visit to the person
    with the power to approve or disapprove of credit at the company
    where you want to set up a credit account.  Show him your financial
    statement, and explain your prospects for success.  Then assure him
    that you've always honored all of your obligations, and that if ever
    there's a question or problem, you'd like for him to call you at
    home.   And of course, give him your home phone number.

    We won't go into the exigencies of advertising your products,
    services or business here, but there is something along these lines
    you should always keep in mind.  The best kind of advertising your
    business can receive is that that you don't really pay for -
    publicity.  When something unusual happens to you, your business, or
    your employees - that's news, so be sure you tell the news media in
    your area about it.

    In closing, let me say that the most important ingredient of your
    eventual success will be the soundness of the planning you did
    before you started your business.  Any number of bad things can
    really throw your business into a tailspin, but if you've done your
    homework well - really set up a detailed business plan before
    starting - your losses or setbacks will be minimal.  Success takes
    planning, and within this report, you've got a basic checklist...
    The rest is up to you...  Good luck, and may your life overflow with
    success in all that you undertake from this moment forward.