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					Starting Your Practice & Applying for a Small Business Loan Presented by Citibank, Michael A. Schwartz, Business Banking
Officer, 619-291-7368 10/21/04

I.

Getting Started

A. Obtain a Fictitious name statement (apply for one at the county building on Harbor) 1. Allows you to get your own tax I.D.

2. Gives you the ability to take checks as yourself and as the Business B. 1. Develop a Business Plan Where are you going to practice? (Location)

2. How are you going to practice? (Business operations/daily activities) Recommends: a. Sole Proprietorship, first year, depends on the amount of money you have: check with your Tax Advisor b. Incorporate when you begin to make $60,000/yr or more; costs $2000 to do so. S-Corp: basically partnering with yourself: has tax benefits C-Corp: separate, but many owners 3. What sort of advertising will you do? (Sales Plan)

II. A. B.

Open an Account Keep your finances separate and accounted for Build a cash reserve (3-6 months is recommended for personal

expenses); live below your means C. You will need two forms of ID, a phone/utility bill in the name of the customer D. Find out about all account options: overdraft?, who is your point of contact at the bank(customer service level), what programs are available for emerging businesses

III. A. B.

Apply for Credit Process is “streamlined” for $10,000 loans (called “FICO”) Banks look for cashflow –ability to repay the loan

C. Bank will want to know specifically why you are applying for the loan D. There is no difference between your credit score and the “business” 1. Build your own credit by paying taxes and bills on time

never be late; send something, even if not full payment 2. a. Suggest: have two major credit cards and a retail credit card: Purchase small items and pay back over time (at least 6 mos.)

b. Take out a secured loan, and use the money to pay it off over time

IV.

Finding Help

A. SCORE – general buiness help including how to develop a business plan www.score-sandiego.org <http://www.scoresandiego.org/> ; retired business men and women who serve as

business counselors on this in Jan. 2005) B. C.

(a PCOM graduate will present

Get a good CPA/tax preparer – do I incorporate, etc? Get a good payroll/HR service, ex. Paychex

D. Get a computer program for your book keeping, like “QuickBooks” SBA (the Small Business Association) - will guarantee a portion of your loan