Collegepreneur Magazine

Start Up Biz Checklist

The ABCs of Getting Started
by Amy Goldsmith

As a student evaluating your options for life and work now and after graduation, you may be thinking about going into business for yourself. Even though you’ll be your own boss, establishing your own successful business is not as straightforward as it might appear, and it’s important to consider how to protect your business name, brand and unique inventions. An entrepreneur who considers the following checklist will be in good shape to capitalize on a new business idea.

Protecting Intellectual Property Rights
Intellectual property–the name, logo, designs and ideas of the entrepreneur–is often the single most important asset of a new business, especially in today’s competitive environment. Taking steps to apply for such protection as copyright registrations or artistic creations; trademark registrations of names, logos or slogans; design patents for protecting the ornamental design of a product; or utility patents to protect the actual workings or mechanism of a product or a business method, is an integral part of start-up planning.

If documentations for ownership or intellectual property rights are in place, they can be offered as serious collateral for fi nancial assessment and backing of a newly formed business entity.

Trademarks
After a company or trade name has been selected for a new business venture, and that name has been deemed “available” through the appropriate state offi ce, the entrepreneur will often assume that it is proper to go forward with doing business under this name. Incorporation takes place, stationery and cards are printed, advertising and signs are designed or commissioned, and goods may be advertised on the Internet. This presumption, that the path ahead has been opened for doing business, is one of the most common mistakes made by the fl edgling entrepreneur, and it can be very costly–even disastrous. The type of “clearance” offered by the Secretaries of State of the various states secures virtually no rights to the name, should the name conflict with a previously, properly established name. It’s important to take steps to assure that no major pitfalls arise from the establishment of a business name.

What should be done to make certain that the name which is proposed for a new business venture does not conflict with the established trademark, trade name or corporate name rights of another party?

The answer is clear.

First, choose a name which itself can be protected as a trademark. Select from imaginative, fanciful, and arbitrary choices as opposed to common, descriptive, or geographical names. Selecting a name such as “Superb Lighting” or “New York Dinnerware” will only lead to difficulties with respect to both prior rights of others and rights against subsequent users. Also, remember that many states have statutes which require the use of such additions as Inc., Corp. or Ltd. to a name, and restrict certain inapplicable
terms.

Next, a pre-corporation search should be conducted to determine the existence of similar trademarks on record in various states, or commercial names listed in telephone directories or on the Internet. The search should also include trademarks and trade names listed in various trade publications, advertised in newspapers or magazines, or which are registered in (or are the subject of pending applications in) the United States Patent and Trademark Offi ce. If the proposed name is likely to confl ict with the rights of others, it should be dropped and the entire procedure of choosing another name--searching it and obtaining a written opinion—must be undertaken again.

However, compared to the possibility of a legal claim by a third party and to the price of advancing funds for start-up operations under the wrong name, precaution and prevention of unintentional confl ict more than pays for itself.

Even start-up businesses need to think globally. If the product is to be manufactured or sold abroad, it would be wise to obtain searches for the name in those countries that are deemed most essential to the success of the new venture. If a conflict arises from the search, the name may have to be changed once again, but at least it would be done in time to prevent further financial outlays. 

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Do I Really Need A Business Plan?

Do I Really Need A Business Plan?
by Bill Hilton

Why waste time writing a formal business plan? Nobody knows your business idea better than you do, right? There are three big, big reasons why. At least one of them is going to apply to you and your business: You might need to borrow money. Not everyone has enough spare dollars to start a business from scratch. Most new businesses, even if they’re small, approach banks or other organizations for a business grant or loan. Before they hand over the cash, these people will want to see proof that you’ve thought hard about your business—and that means showing them a written plan.

Planning makes you think clearly. Writing it all down helps you look at the big picture. Are there any problems you haven’t thought of? Or any opportunities? Writing a plan is a great way of nailing both concerns. It also forces you to think about money. How much will you need? Do you have enough? Will this whole thing make a profit?

You need to measure your success. As you’ll see, a good business plan includes clear goals. After six months or a year in business, you can go back to your plan and ask, “Have I achieved what I hoped?” If
you have, big congratulations. If you haven’t, that’s your cue to think about how to improve.

THE ESSENTIAL INGREDIENTS
Business plans come in different shapes and sizes, depending on the kind of business you’re starting. A plan for a small business might be very short–maybe just three or four pages–but it’s not uncommon to see a business plan exceed 30 pages. You can find business plan templates on the web. Although they vary a little, most of them follow the same basic structure. For most small businesses you’ll only need to write six basic sections. Keep in mind that this is only a snapshot of the sections.

THE BUSINESS OVERVIEW
This is a summary of your business idea. It gives someone picking up your plan for the first time a flavor of your business. A good way to think of your exec summary is as a “party pitch.” You’re at a party and someone comes up to you. They’ve heard you’re starting a business and they want to know about it. What do you say? Well, you’ll likely try to keep it short and simple– it’s a party, after all, and you don’t want to be boring. You’ll try to explain what your business offers and how it’s going to make money in just a few sentences. You’ll probably also fi ll in a few details about any skills or experience you have in the area of business you’re interested in.

If writing this is diffi cult, or you fi nd it hard to summarize your business in a few sentences, maybe you need to think again about your idea. Is it more complicated than it needs to be? Or does it depend on a lot of circumstances outside of your control?

YOUR TEAM
This is a quick overview of all the people involved in the business, and the skills and talents they have. It might just be about one person – you. Write it up anyway, including details of your education and work background. This kind of information is important to lenders. They want to see they’re dealing with someone they can trust.

YOUR PRODUCT
What are you trying to sell and how are you selling it? Is it a physical product, or a service, or are you offering a mixture of the two? Are you making it yourself? Are you selling it directly to customers, or to other businesses? This is more basic information to help other people build a clear picture of your business.

THE MARKET
Who is going to buy your product–just the folks in your city or people all over the world? Try to identify your market as precisely as you can, by age, interests, income, background, job and education. Explain why these people will want your product. Next, explain how you’re going to reach your target market. This is called a route to market. Are you going to take out advertisements in magazines?

Start a website and rely on Google to deliver hits? Or ride around your neighbourhood on a bike, shouting through a bullhorn? Each method works, you just have to fi nd the one that works best for your market.

THE FUTURE
Finally, tell your readers where you want to take your business! You need to be ambitious but realistic. What can you achieve in six months, a year and three years? Write down your goals. This shows your readers where you’re headed and gives you something to aim for. A good way of setting goals is to look at other businesses like your own and see how fast they have grown. Can you match their success? Or beat it? You can also include a SWOT analysis in this section. Write a few sentences on your business’s Strengths and Weaknesses, and a few more on the Opportunities and Threats you think you might encounter.

When your plan is written, be certain it makes sense to someone other than you and your mom. Double check spelling, grammar and content, and most of all, make sure it looks professional. Once you’ve been in business a while, revisit the plan to see if you’re on track or if you need to make adjustments to ensure your success.