SMALL BUSINESS GUIDE.

• Author: Cole, Kelleigh

A HOW-TO APPROACH

Small business owners often turn to outsourcing to replace specialized departments and keep business running smoothly. Outsourcing services can allow even companies with small staffs to stay competitive. To assist business owners in finding such services, Utah Business magazine has compiled the following guide. It offers advice to small business owners and lists major state and local agencies offering consulting and specialized services in Utah.

Obtaining A Business License

Every new business must first register with the Utah State Department of Commerce and then obtain a commercial business license from the local municipality before it can operate. In Utah, fees and standards for obtaining a business license vary greatly in each municipality. These are usually based on things such as hours of operation and number of employees. In some cities, businesses must also obtain permits for vehicles vending machines, and tobacco and alcohol distribution. Often while obtaining a business license, other city departments are involved to insure that zoning and building inspection requirements are met. The process can take up to a month so be sure to apply as soon as possible. For more information on commercial business licenses, contact your local chamber of commerce.

Obtaining Financing

There are several sources from which businesses can obtain financing in Utah. Credit unions and savings banks may offer financing, however commercial banks are a better bet for getting a business loan,

Most of Utah's bigger financial institutions are commercial banks, such as First Security and Zions Bank and have many restrictions for making loans. They work on a thin profit margin and may require collateral.

Before approaching a bank for a loan, try to get a general understanding of its lending requirements, such as debt-to-income ratios and financial history requirements. Most banks generally want to see adequate cash flow to cover the loan. They are also interested in companies with a proven track record.

For businesses that don't qualify for bank loans there are some alternate sources far business capital. Venture capitalists will invest in a business if they think it has growth potential. Venture capitalists provide financing and take an equity -- or ownership -- interest in the business. If the company makes money, so does the venture capitalist. They may also take a very active part in running the business.

Financial angels invest money in exchange for ownership in the business. Usually they are wealthy individuals who are willing to invest in your business for a percentage of the company.

Going public is another source of capital. This means selling company stock to the public. However, it can be expensive and there are drawbacks. For one thing, it can take up to six months or longer to complete the process. It can also cost thousands or hundreds of thousands of dollars. It is also risky to go public as the market may change by the time your company has completed the process.

Brokerage firms, life insurance companies and leasing companies also offer financing as investments for their companies.

No matter where your business turns for financing, be prepared to explain the needs of the company and all pertinent financial information.

Finding Office Space

There are many things to consider when choosing office space. First, thoroughly evaluate your company's needs and space requirements. Carefully assess employee work patterns and interactions. Do employees work in individual cubicles? Do they have combined workstations? Are they often meeting in a conference room or at a large table? Do they need to go from office to office for information or supplies?

Make a wish list of office amenities. Evaluate which are essential and which are perks. Find a tenant representative, more commonly known as a broker. A good broker will help identify properties that best meet your criteria and will negotiate the lease. The broker should identify every available option and set up tours of those facilities with building representatives.

After the client has found several suitable properties, a...