A. Generally speaking, grants given to business start-ups are very rare. An exception may be for a high technology business or for businesses producing products that can be used by certain agencies or departments involved in our nation's defense. Also, non-profit businesses are sometimes eligible for grants. Grant information can be found at your local library in the business section.

Q. What kind of registration and licenses are generally required to start my business?

A. Obviously, there are specific requirements in each state, county, and locally, but it is possible to list the basic licenses and registrations a new business will need:

Local—A business license from your city, town, or county, depending on your location, will usually be necessary. In addition, you'll have to meet zoning laws, building codes, and similar regulations. Contact the North Carolina Secretary of State's office

State—In most states, if your business isn't a corporation and your full name isn't in the name of the business, you'll have to register under what's called a Fictitious Name Registration. You should also file for a Sales and Use tax number. In some lines of business (like liquor stores, barber shops, real estate offices) specific licenses are needed.

Federal—You'll need an Employer's Identification Number (EIN), and it's a good idea to request the "Going Into Business" tax kit from the Internal Revenue Service (IRS).

The North Carolina Secretary of State's Business License Information Office will help with your specific licensing questions.

Q. How do I get a business loan?

A. The kind of financing most entrepreneurs seek through commercial lenders is debt financing, and most banks provide debt financing for existing and start-up businesses. Banks vary substantially in their lending practices. While one bank may decline your loan application, another may be willing to take a higher risk or be interested in lending to small businesses. It is advisable to understand a bank's lending guidelines before applying for a loan. The general guidelines that would enable a lending officer to at least make an informed decision regarding your loan proposal are as follows:

1. Consideration of the business idea, usually explained in a business plan
2. Collateral
3. Down payment (also known as ‘equity’ in an ongoing business)
4. Credit history and personal financial net worth
5. Management ability
6. Ability to repay the debt
7. Conditions of the economy and/or market area

Q. If I'm thinking of starting a business, what should I do first?

Before you quit your job or print business cards, it is wise to take stock of personal considerations. Ask yourself: Do I have what it takes to be an entrepreneur? Am I a risk-taker? Do I have a grasp of basic financial and marketing principles? Am I resourceful and organized? Can I support myself and/or my family financially during the early stages of the venture when cash may be short? Will my family and friends be supportive during the start-up process? Am I knowledgeable and experienced enough in my chosen field? If the answer to any of these questions is ‘no,’ you may want to focus on some form of self-improvement before proceeding. If most of your answers are ‘yes,’ then it is time to become a realist! Get as much information as you can on the feasibility of your idea and on the real experience of starting and managing any business. You can do this by: accessing business publications and data from the library; taking seminars and workshops; speaking to trade or professional groups which represent your chosen industry; consulting with people who are already in the same or similar line of business; and seeking advice from professional counselors like the SBTDC.

Q. My business has been established for some time. How can the SBTDC help me?

The SBDC provides an array of services to established businesses including counseling in business planning; marketing and promotion; financial analysis; and accounting. In addition, the SBTDC offers:

• a procurement assistance program for companies that want to bid on federal, state, or local government contracts
• an export financing program for firms that want to enter into or expand in the global marketplace
• educational services designed to sharpen the skills of management teams, boards of directors, and or employees
• a boating industry service to provide business development support to marine industry firms
• technology development and commercialization personnel to help businesses commercialize innovative new technologies

Q. How long will it take to write a business plan?

A well thought-out business plan generally takes anywhere from six months to a year to complete, but it can be less depending on how committed you are to the business and how much time you are willing to spend on writing your plan. The SBTDC counselor will not write a business plan for you but will assist in assessment of the plan. They may offer recommendations in order to make it a viable business plan to gain financing thru a lending institution. It can also be used as a guide for your business to make sure you stay on track with your goals and objectives. The writing of the plan is an educational process in which you learn about your business and how you expect it to operate. It should reflect your goals, objectives, priorities, and management style.

Q. Does the SBTDC provide financing?

The SBTDC does not provide financing. Our assistance is technical and educational in nature. We work with banks and other lending agencies and organizations to assist in putting together financial projections, but the actual financing comes from outside sources. Generally, you start with the bank where you normally do business and have established accounts. You may have to apply at several lending institutions or look for alternative sources such as outside investors.

Q. Do I have to register the name of my business and if so, where?

If you decide that your company will be a sole proprietorship or partnership—and you wish to use a name other than your own name—you must either perform a name search at your county’s Register of Deeds office or at the North Carolina Secretary of State's Corporations Division website. Either location will also help with your specific licensing questions. You must also register the company name at the Register of Deeds office.

Q. What form of business do you recommend for a new business?

A. Each form—sole proprietorship, partnership, corporation, or limited liability corporation—has its advantages and disadvantages. The one you should pick depends on your circumstances, including:

• Your financial condition
• The line of business you’re entering
• The number of employees
• The risk involved
• Your tax situation

The North Carolina Secretary of State's Corporations Division website offers guidelines and provides forms which will be useful.

Q. What kind of insurance is needed for a small business?

A. There are four types of insurance that are generally considered essential for small businesses. These are fire, liability, auto, and worker's compensation. Fire insurance will compensate you for the loss of and damage to your business property by fire. Liability insurance will help protect you against lawsuits for physical damages done to someone on your property and for liabilities arising from the use of the products or services your company sells. In some cases, both fire and liability insurance may be required rather than optional, so check with your insurance agent to be sure. Some type of auto insurance, either private or business, is required by law for any vehicle used for business purpose. Before buying any insurance, consider the risks that should be covered, compare costs from the different companies, and get professional advice from an insurance agent.