STEP 1.

BELIEVE

CREATE A REALISTIC OPERATING BUDGET

Step-by-Step Guide to Creating a Basic Budget for a New Startup

Creating a budget for a new startup involves careful planning and realistic assessment of costs. Here’s a step-by-step guide to help you develop a basic budget:

1. Determine Your Startup Costs

Research and Development (R&D): Costs related to product development, market research, and testing.
Business Registration and Licensing: Fees for registering your business and obtaining necessary licenses.
Legal and Consulting Fees: Costs for legal advice, accounting services, and business consultancy.
Office Space and Utilities: Rent, utilities, and office supplies for your workspace.
Equipment and Supplies: Purchase of machinery, technology, furniture, and other necessary supplies.
Inventory: Initial stock of products if you’re selling physical goods.
Marketing and Advertising: Costs for branding, website development, promotional materials, and initial marketing campaigns.
Insurance: Business insurance to protect against potential risks.
Miscellaneous Expenses: Any other costs that don't fit into the above categories.

2. Estimate Monthly Operating Expenses

Rent and Utilities: Monthly payments for office space, electricity, water, internet, etc.
Salaries and Wages: Payroll expenses for employees, including benefits and payroll taxes.
Marketing and Sales: Ongoing marketing campaigns, advertising, and sales team expenses.
Supplies and Equipment Maintenance: Regular purchase of office supplies and maintenance of equipment.
Software and Subscriptions: Costs for necessary software, subscriptions, and online services.
Insurance: Monthly insurance premiums.
Loan Payments: If you have taken any loans, include monthly repayment amounts.
Miscellaneous Expenses: Unexpected or variable costs.

3. Forecast Revenue

Sales Projections: Estimate your monthly sales based on market research, competitor analysis, and initial marketing efforts.
Other Income: Include any other sources of income, such as grants, investments, or interest.

4. Create a Profit and Loss Statement

Revenue: List all sources of income.
Costs of Goods Sold (COGS): Direct costs related to producing your product or service.
Gross Profit: Revenue minus COGS.
Operating Expenses: Sum of all monthly operating expenses.
Net Profit: Gross profit minus operating expenses.

5. Plan for Cash Flow

Cash Inflows: Expected revenue and other income.
Cash Outflows: All operating expenses and any other cash expenditures.
Net Cash Flow: Cash inflows minus cash outflows. Ensure you have positive cash flow to sustain operations.

6. Prepare for Contingencies

Emergency Fund: Set aside a portion of your budget for unexpected expenses or downturns in revenue.
Buffer for Overestimates: Add a buffer (e.g., 10-20%) to your cost estimates to account for any unanticipated costs.

7. Monitor and Adjust

Regular Review: Monitor your budget regularly (monthly or quarterly) to ensure you are on track.
Adjustments: Make necessary adjustments based on actual performance, unexpected changes, and new opportunities.

Example of a Basic Startup Budget

Initial Startup Costs

Business Registration and Licensing: $500
Legal and Consulting Fees: $1,500
Office Space and Utilities: $3,000
Equipment and Supplies: $5,000
Inventory: $2,000
Marketing and Advertising: $2,500
Insurance: $1,000
Miscellaneous: $500
Total Initial Costs: $16,000

Monthly Operating Expenses

Rent and Utilities: $1,500
Salaries and Wages: $10,000
Marketing and Sales: $1,000
Supplies and Equipment Maintenance: $500
Software and Subscriptions: $200
Insurance: $200
Loan Payments: $500
Miscellaneous: $300
Total Monthly Expenses: $14,200

By following this guide, you can create a realistic and manageable budget for your startup, setting a solid financial foundation for your business's success.

OUR TIPS FOR SUCCESS
BEFORE YOU GET STARTED!

THESE ARE GAME CHANGING TIPS FOR SUCCESS

Here are our best tips for achieving anything you want in life.

Focus on commitment, not motivation.

Just how committed are you to your goal? How important is it for you, and what are you willing to sacrifice in order to achieve it? If you find yourself fully committed, motivation will follow.

Seek knowledge, not results.

If you focus on the excitement of discovery, improving, exploring and experimenting, your motivation will always be fueled. If you focus only on results, your motivation will be up and down until eventually you just give up on your aspirations. They'll wither away like dandelions. So the key is to focus on the journey, not the destination. Keep thinking about what you are learning along the way and what you can improve.

Make the journey fun.

Make it an awesome game! The minute you make it serious, there's a big chance it will start carrying a heavy emotional weight and you will lose perspective and become stuck again.

Get rid of stagnating thoughts.

Thoughts influence feelings and feelings determine how you view your work. You have a lot of thoughts in your head, and you always have a choice of which ones to focus on: the ones that will make you emotionally stuck (fears, doubts) or the ones that will move you forward (excitement, experimenting, trying new things, stepping out of your comfort zone).

Use your imagination.

Next step after getting rid of negative thoughts is to use your imagination. When things go well, you are full of positive energy, and when you are experiencing difficulties, you need to be even more energetic. So rename your situation. If you keep repeating I hate my work, guess which feelings those words will evoke? Use clear vision as a matter of imagination! SEE YOURSELF LIVING IN YOUR VISION! NEVER STOP THINKING ABOUT IT! Learn even from the worst challenges and when frustrations arrive: Know you are getting close to success! Now, We have a great exercise for you: Just for three days, think and say positive things only. See what happens. (thank us later in a review! Lol...)

Stop being nice to yourself.

Motivation means action and action brings results. Sometimes your actions fail to bring the results you want. So you prefer to be nice to yourself and not put yourself in a difficult situation. You wait for the perfect timing, for an opportunity, while you drive yourself into stagnation and sometimes even into depression. Get out there, challenge yourself, do something that you want to do even if you are afraid.

Be confident!

Nobody is born confident. Confidence comes from knowledge, which converts into work. Then the more you know about your industry and profession, The better you will become at it. Which is what will motorize and fuel your confidence.

Share your vision, Not your aspirations,

Keep your aspirations to yourself... What you are aspiring to set out to do is for you only. Share your vision, It's how you bring it into reality....

Where would you like to form your business?

These links will direct you to the official state websites where you can find more information about forming an LLC and other business services. (PLEASE CHOOSE A BUSINESS PROFESSIONAL FROM OUR SOCIETY)

Apply for an EIN - IRS

Obtaining an Employer Identification Number (EIN) is crucial for U.S. businesses for several reasons:

Legal Requirement: An EIN is necessary for filing federal and state taxes, hiring employees, and complying with IRS regulations.
Business Identity: It serves as a unique identifier for your business, similar to a Social Security number for individuals, distinguishing it from other entities.
Banking and Credit: Banks require an EIN to open business accounts, apply for loans, and establish business credit.
Regulatory Compliance: It is needed to obtain necessary business licenses and permits.
Employee Management: An EIN is essential for processing payroll and reporting employment taxes.

In summary, an EIN is vital for legal, financial, and operational purposes, ensuring your business operates smoothly and in compliance with federal regulations.

Tax Look by State

Alabama
- 6.5% corporate income tax, 4% state sales tax, $0.40-$1.25 business privilege tax per $1,000 net worth.
- Secretary of State: (334) 242-4191
- Department of Revenue: (334) 242-1170
Alaska
- 0-9.4% corporate income tax, 0-7.85% individual income tax, $100-$1,100 annual business license fee.
- Department of Commerce: (907) 269-8160
- Department of Revenue: (907) 269-6620
Arizona
- 4.9% corporate income tax, 5.1%-8% individual income tax, 0.95%-3.25% transaction privilege tax.
- Secretary of State: (602) 542-4285
- Department of Revenue: (602) 255-3381
Arkansas
- 6.5% corporate income tax, 7% state sales tax, $50-$1,000 annual franchise tax.
- Secretary of State: (501) 682-1010
- Department of Finance and Administration: (501) 682-2242
California
- 8.84% corporate income tax, 9.3%-13.3% individual income tax, 7.25%-10.25% sales tax.
- Secretary of State: (916) 653-6224
- Franchise Tax Board: (800) 852-5711
Colorado
- 5% corporate income tax, 5% state sales tax, $50-$2,000 annual business income tax.
- Secretary of State: (303) 894-2200
- Department of Revenue: (303) 866-4622
Connecticut
- 7.75% corporate income tax, 6.99% individual income tax, 6.35% sales tax.
- Secretary of State: (860) 509-6200
- Department of Revenue Services: (860) 297-5962
Delaware
- 8.7% corporate income tax, $90-$1,000 annual franchise tax.
- Secretary of State: (302) 739-4111
- Division of Revenue: (302) 577-8200
Florida
- 0% corporate income tax, 6% state sales tax.
- Department of State: (850) 245-6000
- Department of Revenue: (850) 488-6800
Georgia
- 6% corporate income tax, 4% state sales tax.
- Secretary of State: (404) 656-2817
- Department of Revenue: (877) 423-6711
Hawaii
- 6.4% corporate income tax, 4.166% general excise tax.
- Department of Commerce and Consumer Affairs: (808) 586-2727
- Department of Taxation: (808) 587-4242
Idaho
- 6.925% corporate income tax, 6% state sales tax.
- Secretary of State: (208) 334-2300
- State Tax Commission: (208) 334-7660
Illinois
- 9.5% corporate income tax, 8.85% combined state and local sales tax.
- Secretary of State: (217) 782-2256
- Department of Revenue: (800) 732-8866
Indiana
- 6.25% corporate income tax, 7% state sales tax.
- Secretary of State: (317) 232-6576
- Department of Revenue: (317) 232-2240
Iowa
- 8.98% corporate income tax, 6% state sales tax.
- Secretary of State: (515) 281-5204
- Department of Revenue: (515) 281-3114
Kansas
- 7.5% corporate income tax, 6.5% state sales tax.
- Secretary of State: (785) 296-4564
- Department of Revenue: (785) 368-8222
Kentucky
- 5% corporate income tax, 6% state sales tax.
- Secretary of State: (502) 564-3490
- Department of Revenue: (502) 564-4581
Louisiana
- 7.5% corporate income tax, 4.85% state sales tax.
- Secretary of State: (225) 925-4704
- Department of Revenue: (855) 307-3893
Maine
- 8.93% corporate income tax, 5.5% state sales tax.
- Secretary of State: (207) 626-8400
- Revenue Services: (207) 626-8475
Maryland
- 8.25% corporate income tax, 6% state sales tax.
- State Department of Assessments and Taxation: (410) 767-1184
- Comptroller of Maryland: (410) 260-7980
Massachusetts
- 8% corporate income tax, 6.25% state sales tax.
- Secretary of State: (617) 727-2836
- Department of Revenue: (617) 887-6367
Michigan
- 6% corporate income tax, 6% state sales tax.
- Department of Licensing and Regulatory Affairs: (517) 241-6470
- Department of Treasury: (517) 636-4660
Minnesota
- 9.8% corporate income tax, 6.875% state sales tax.
- Secretary of State: (651) 296-2803
- Department of Revenue: (651) 556-3000
Mississippi
- 5% corporate income tax, 7% state sales tax.
- Secretary of State: (601) 359-1333
- Department of Revenue: (601) 923-7230
Missouri
- 4.225% corporate income tax, 8.85% combined state and local sales tax.
- Secretary of State: (573) 751-4153
- Department of Revenue: (573) 751-3505
Montana
- 6.75% corporate income tax, 0% state sales tax.
- Secretary of State: (406) 444-2034
- Department of Revenue: (406) 444-6900
Nebraska
- 7.81% corporate income tax, 5.85% state sales tax.
- Secretary of State: (402) 471-2555
- Department of Revenue: (402) 471-5729
Nevada
- 0% corporate income tax, 6.5% modified business tax.
- Secretary of State: (775) 684-5708
- Department of Taxation: (866) 962-3707
New Hampshire
- 7.7% corporate income tax, 0% state sales tax.
- Secretary of State: (603) 271-3242
- Department of Revenue Administration: (603) 230-5000
New Jersey
- 11.5% corporate income tax, 6.625% state sales tax.
- Department of State: (609) 292-6500
- Division of Taxation: (609) 292-2300
New Mexico
- 5.9% corporate income tax, 5.125% state sales tax.
- Secretary of State: (505) 827-3600
- Taxation and Revenue Department: (505) 827-0700
New York
- 6.5% corporate income tax, 4% state sales tax.
- Department of State: (518) 474-4550
- Department of Taxation and Finance: (518) 457-5181
North Carolina
- 4.75% corporate income tax, 6.75% combined state and local sales tax.
- Secretary of State: (919) 814-5400
- Department of Revenue: (877) 252-3052
North Dakota
- 4.86% corporate income tax, 5% state sales tax.
- Secretary of State: (701) 328-2900
- Office of State Tax Commissioner: (701) 328-7088
Ohio
- 0.26%-2.59% commercial activity tax.
- Secretary of State: (614) 466-2655
- Department of Taxation: (800) 829-1040
Oklahoma
- 6% corporate income tax, 8.375% combined state and local sales tax.
- Secretary of State: (405) 522-4564
- Tax Commission: (405) 521-3108
Oregon
- 7.6%-9.9% corporate income tax, 0% state sales tax.
- Secretary of State: (503) 986-2200
- Department of Revenue: (503) 378-4988
Pennsylvania
- 9.99% corporate income tax, 6% state sales tax.
- Department of State: (717) 787-5280
- Department of Revenue: (717) 787-1064
Rhode Island
- 7% corporate income tax, 7% state sales tax.
- Secretary of State: (401) 222-3042
- Division of Taxation: (401) 574-8700
South Carolina
- 5% corporate income tax, 6% state sales tax.
- Secretary of State: (803) 734-2170
- Department of Revenue: (803) 898-5000
South Dakota
- 0% corporate income tax, 4.5% state sales tax.
- Secretary of State: (605) 773-4845
- Department of Revenue: (800) 829-9188
Tennessee
- 6.5% corporate income tax, 7% state sales tax.
- Secretary of State: (615) 741-2819
- Department of Revenue: (615) 253-0600
Texas
- 8.25% franchise tax, 6.25% state sales tax.
- Secretary of State: (512) 463-5659
- Comptroller of Public Accounts: (800) 982-8525
Utah
- 5% corporate income tax, 5.95% state sales tax.
- Lieutenant Governor's Office: (801) 538-1041
- State Tax Commission: (801) 297-2200
Vermont
- 8.75% corporate income tax, 6% state sales tax.
- Secretary of State: (802) 828-2386
- Department of Taxes: (802) 828-2551
Virginia
- 6% corporate income tax, 4.3% state sales tax.
- State Corporation Commission: (804) 371-9733
- Tax Department: (804) 367-8031
Washington
- 0.29%-1.9% business and occupation tax.
- Secretary of State: (360) 902-4151
- Department of Revenue: (360) 705-6705
West Virginia
- 6.5% corporate income tax, 6% state sales tax.
- Secretary of State: (304) 558-8000
- State Tax Department: (304) 926-1800
Wisconsin
- 7.9% corporate income tax, 5% state sales tax.
- Department of Financial Institutions: (608) 261-7578
- Department of Revenue: (608) 266-2772
Wyoming
- 0% corporate income tax, 4% state sales tax.
- Secretary of State: (307) 777-7311
- Department of Revenue: (307) 777-7961

Filing Requirements and Options

Annual Reports: Most states require annual or biennial reports detailing business activities.
Business Licenses: Obtain necessary licenses and permits before commencing operations.
Tax Returns: File state corporate income tax returns (e.g., IRS Form 1120).
Sales Tax Permits: Register for sales tax permits if applicable.
Employer Identification Number (EIN): Obtain an EIN from the IRS for federal tax purposes.
Online Filing: Many states offer online filing options.
Paper Filing: Some states allow paper filing.
Tax Professional Assistance: Consider hiring a tax professional for complex filings.

Filing Deadlines

Annual Reports: Typically due between January and May.
Tax Returns: Due dates vary (e.g., March 15 for corporations, April 15 for pass-through entities).
Sales Tax Returns: Monthly, quarterly, or annually, depending on sales volume.
Business License Renewals: Vary by state and license type.

For specific requirements, consult your state's business registration and tax authority websites:

Please verify information with state tax authorities or consult a tax professional from our society for personalized guidance.

GET A
DUNS NUMBER

Description of Dun & Bradstreet

Dun & Bradstreet (D&B) is a global business analytics firm that provides commercial data, analytics, and insights for businesses. Established in 1841, D&B helps companies improve their business performance by leveraging its extensive database, which includes information on over 330 million business records worldwide.

Importance of a DUNS Number

Business Identification: The DUNS number uniquely identifies your business globally, distinguishing it from other entities.
Creditworthiness: It is used by lenders and suppliers to assess your company's creditworthiness and financial stability.
Government Contracts: A DUNS number is often required for businesses seeking to bid on federal contracts and grants.
Global Trade: It facilitates business transactions and partnerships internationally by providing a recognized business identifier.
Corporate Transparency: Enhances the credibility and transparency of your business in the eyes of potential partners, investors, and clients.

In summary, obtaining a DUNS number is essential for establishing your business identity, improving creditworthiness, and accessing new business opportunities both domestically and internationally.

FUNDING ASSISTANCE

Not what you need to know, But what you must do!

When you are approved for funding here's is how you allocate the funds:

1. Product Development

Allocate funds to refine, enhance, or develop your product or service. This includes prototyping, software development, or improving product features based on customer feedback.

2. Marketing and Customer Acquisition

Invest in marketing campaigns, such as digital ads, social media marketing, SEO, or influencer partnerships, to increase brand awareness and attract customers.

3. Hiring and Talent Acquisition

Recruit skilled employees or contractors for critical roles to scale your operations, including marketing, engineering, sales, or customer support.

4. Technology and Infrastructure

Upgrade or acquire technology tools, systems, and infrastructure needed to streamline operations, such as CRM systems, cloud platforms, or inventory management software.

5. Operating Costs

Cover essential operational expenses like office space, utilities, equipment, or other fixed costs to maintain smooth business operations.

6. Market Research and Validation

Conduct surveys, focus groups, or market analysis to better understand your target audience, refine your business model, and ensure product-market fit.

7. Scaling Production

Scale manufacturing or production capacity to meet growing demand, ensuring your startup can deliver on larger orders or expand into new markets.

8. Debt Repayment or Financial Stabilization

Use a portion of the funds to pay off high-interest debts or improve your financial position, ensuring stability during the growth phase.

9. Business Expansion

Fund initiatives to enter new markets, open new locations, or broaden your service offerings to reach a wider audience.

10. Building a Reserve Fund

Create a financial buffer for unforeseen circumstances or slow periods to ensure your startup can weather economic challenges or operational disruptions.

Final Tip: Track and Measure Impact

Establish clear goals for each allocation and monitor the ROI to ensure the funds are used efficiently and contribute to your startup's long-term success.

WORKING CAPITAL

29% OF STARTUPS FAIL, RESEARCH BY US BANK INDICATES THAT 82% OF THE FAILURES TIE INTO CASH FLOW MANAGEMENT AND "WORKING CAPITAL."