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preparation or health care. If the business sells or leases merchandise, it needs a Seller’s Permit from the state. Most of these things are not hard to get, but until they are in place, the business is not able to operate legally. Business Model and Plan. A business can operate without a business model or plan, but it shouldn’t. A business model describes the concept of the business and the method by which the business will make money. It includes its purpose, goals and plans for achieving those goals. The business plan provides important details and business strategies, such as revenue targets, time lines and the specific action steps the business will take to reach its goals. It tells how the business will attract and retain customers and beat the competition. It provides data indicating when the company expects to be profitable and how it will increase its profits over time. For example, as a start up, Zappo’s business model — the concept of selling shoes online — was very unusual. No one had done that before. Its business plan provided the details of how they would go about making the business model a reality, including how they would get customers, fill, and ship orders. A business plan is an essential roadmap for guiding the operation and growth of the business . If you apply for a business loan or investment capital, it’s the first thing a lender or investor will ask for. Reflect on Learning: Can you interpret these business-related acronyms: LLC, IP, USPTO, EIN, TIN, and dba? In your own words, can you explain the difference between a business model and a business plan? V. Where Can You Go for Help? Small business owners know it’s essential to build a network of contacts and an arsenal of resources. There are many organizations that provide help and counsel for small business owners, as well as professional groups specific to the particular type of business. SCORE. Previously known as the Service Corps of Retired Executives, SCORE is now called "Counselors to America’s Small Business." This organization has provided education and mentorship to small business owners for over fifty years. No matter what the business type, service, product or problem, there’s a retired business executive at SCORE who’s seen it before and can help. These executives have already blazed many trails, so take advantage of their knowledge and experience if you’re thinking of starting a business. Small Business Administration. The SBA is an independent agency of the federal government that provides counsel, assistance, and protection for the interests of small businesses. The SBA can help a business obtain capital by facilitating a loan with a bank or help a business entrepreneur find venture capital. The SBA also publishes all sorts of useful resources and online tools, including forms, articles, and podcasts to help a get a small business up and running, grow and increase profits. Chamber of Commerce. The U.S. Chamber of Commerce is a powerful association of businesses that advocates (lobbies) for pro-business U.S. government policies and laws . It’s the world’s largest business federation representing 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations. They provide a networking system for building business relationships and plenty of tips and tools for managing a small business. PRODUCT PREVIEW
Chapter 12 | Small Biz Whiz 226
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