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Starting a Small Business in DallasJuly 19th, 2007
IntroductionThe document you are now viewing is a pathfinder, which describes resources available in the Dallas / Fort Worth area of interest to anyone starting, funding or growing a small business. If you notice omissions or have ideas or suggestions, please drop us an email. 1) What does it take to start a small business? 1) What does it take to start a small business?Every year, thousands of men and women create new jobs and prosperity by starting their own businesses. Do you have the drive, focus and capacity for hard work needed to follow in their footsteps? The US Small Business Association (SBA) offers an overview of the personal qualities it takes to succeed, plus a free online questionnaire to help you decide if you have the right temperament. At the beginning of your journey toward small business ownership, it is often very helpful to take a formal course that can prepare you for what lies ahead. Here are some affordable sources of training and/or technical assistance in our area:
top2) What business shall you start? Where should it be located?A key to your success is finding the right niche and understanding what is involved in running that kind of business. You will need to do market research to see who your competition is and where your customers are. You will need to write a business plan that explains how you intend to proceed with your business, what costs you expect to incur and how you hope to turn a profit. The Library has books and other tools that can help you. Also, the Small Business Administration’s Small Business Planner is an essential resource. The Secretary of State also provides links to a number of small business start-up resources. books To find library books, we suggest using the subject headings listed below. Once you click on the link below, choose the first entry (e.g. Marketing research. [about] [60 titles]) then sort by Date (Descending). This will let you view catalog records for the newest books in our collection first.
useful websites: If you are researching a location at which to do business, these tools can help you to identify what kinds of people live in the area, including their level of education, age, ethnic background and household income. The DFW Census Demographics site lets you generate such reports by selecting a street address, a radius (from 1/2 to 25 miles) and the types of demographic variables–social, economic or household characteristics, etc. By using Reference USA’s advanced features in combination with the North American Industrial Classification System codes, you can determine how many businesses already exist within a defined area, such as a zip code. The Traffic Counts site will let you know the volume of automobiles passing by a given location during varying hours of the day.
The following websites offer insight and advice on topics like marketing, business plan writing and the like.
Databases at the Library: These databases, together with many printed directories available on the 5th floor of the Central Library, can help to research your competition or to track trends in a given industry or market sector.
3) Incorporation, registration, permits, licenses and other legal matters.You will want to decide how to structure your business — whether it will be a sole proprietorship, a partnership or a corporation. You will also need to register your business name with the County Clerk. And, most businesses require permits and/or licenses. The following resources may be helpful in understanding more fully these requirements. Electronic publications:
Books:
Useful websites: These sites will help you to access the ordinances, laws, regulations and licensing requirements that may govern your type of small business.
4) Finding the money.Federal grants are mainly directed at advancing the goals of the agency which provides them. For example, agencies fund small businesses that have a demonstrated capacity to assist with technical research or to commercialize technology developed for government purposes. Only a few grants are available to individuals, and such as do exist are normally targeted to experts, such as academic researchers. See our government grants page for further details or search the Catalog of Federal Domestic Assistance (CFDA). Published by the US General Services Administration, it publicizes all grants available from the Federal government. Private foundations grant money mainly to nonprofits, or, in a very few cases, may target money to stimulate business development in low-income areas or among certain narrow sectors of the population. However, such programs are few and rare. The Grants Information Service, located on the 6th floor of the Central Library, has many national directories and databases useful for foundation research. It also periodically publishes its own, comprehensive Directory of Dallas County Foundations. Experts report that about 85% of all small business start-ups use informal sources of capital to launch their enterprise. Such sources include second mortgages, credit cards, and loans from friends and family. Banks are often reluctant to extend credit to a business that has no track record or credit history. Moreover, small loans of this type are often unprofitable because its costs the bank more money to analyze the business and service the loan than it makes in return. Some credit unions, small-town banks or banks where you have a longstanding, personal relationship may be an exception to this general rule. Enacted to help address funding gaps, the 1977 Community Reinvestment Act provides incentives for financial institutions to work with nonprofits in order to provide funding for economic development in communities that have been traditionally underserved. Community Development Financial Institutions (CDFI’s) — also known as microcredit lenders — make small amounts of capital available to small business persons who cannot otherwise borrow money. In Dallas, contact Accion or The Plan Fund. The Dallas Small Business Development Center (SBA) also works with private lenders to provide Community Express Loans, targeted to low and moderate income areas. If you are locating in an Enterprise Zone, other assistance may be available to you through a program administered by the State of Texas in partnership with commercial lenders. In addition, there are a number of Community Development Corporations (CDC’s), some of which may offer counseling or other assistance to persons wishing to start a small business in their area. If your business idea requires a lot of investment, has the potential to turn a large profit and your management team has well-established credentials, consider the highly competitive venture capital market. A number of venture capital groups are listed in our Community Information Database. An online quiz, offered by American Express, tests your knowledge about getting money for your small business. It only takes a few minutes, and it is very instructive. 5) Where to turn for information, assistance and advice.There are many organizations that offer free or low-cost business counseling, training and technical assistance. The Bill J. Priest Institute for Economic Development, operating under the aegis of the Dallas County Community College District, is home to many different programs, including a business incubator, which provides office space and support to qualifying start-ups. If you are currently receiving unemployment benefits, you may qualify for free training courses from certain government funded agencies.
If you have suggestions or questions, call the Business & Technology reference desk at 214-670-1608 or send us an email. The J. Erik Jonnson Central Library is located at 1515 Young St. in downtown Dallas. Our hours are Mon.-Thur. 9am-9pm, Fri.-Sat. 9am-5pm and Sun. 1-5pm. | ||||||||||||||
