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How to start a Business in Aurora Flipbook PDF
How to start a Business in Aurora
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How to Start a Business in Aurora, Illinois
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Introduction This guide was designed to aid local entrepreneurs in starting a business in Aurora, Illinois. It provides an outline of the steps a small business must take, from getting started to launching. This guide also provides local and online resources that can help entrepreneurs with each step in the process of starting a business in Aurora.
Table of Contents Why Choose Aurora?
2 3
Business Planning
4 5
Finding a Business Location
Utilities
13 14
Business Connections
Aurora Economic Incentives
11 12
Staffing and Hiring
Business Property Build Out
8-9 10
Register Your Business
Trademarks, Patents, and Copyrights
6 7
Funding
Getting Started
Responsibilities as an Employer
15 16
Community Resources
Please find a digital copy of this guide at www.investaurora.org
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Why Choose Aurora? Aurora Quick Facts Second Largest City in Illinois Population over 200,000 Labor force of 102,000+ 40 Miles West of Chicago 5 Interstate 88 Interchanges Two Metra Stops Regional Airport 14 Business Parks 80+ Mile Fiber Optic Network 4 Higher Education Institutions 19 National Register Historic Places 3 National Register Historic Districts Median Age of 31.7 Years On the Beautiful Fox River
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Getting Started Is Entrepreneurship for You? Consider whether you have the following characteristics and skills commonly associated with successful entrepreneurs: · Comfortable with taking risks · Able to negotiate · Independent · Creative · Persuasive · Supported by others
Understand Your Market To run a successful business, you need to learn about your customers, your competitors and your industry. Market research is the process of analyzing data to help you understand which products and services are in demand, and how to be competitive. Market research can also provide valuable insight to help you: · Reduce business risks · Identify sales opportunities · Spot current and upcoming problems in your industry
Determine Your Legal Entity Sole Proprietorship · A one-person business that is not registered with the state · Reports business income and losses on personal tax return · Personally liable for business debts and claims General Partnership · A business owned by two or more people · Each owner reports their shares of the business income on their personal tax returns · Each partner is personally liable for business debts and claims Limited Liability Company (LLC) · Can consist of one or more persons (or members) · Members are protected from personal liability for business decisions or actions of the LLC · Members distribute profits as they see fit “C” Corporation · An independent legal entity owned by shareholders · Corporation itself is held legally liable for the actions and debts the business incurs · Corporations are taxed twice
ONLINE RESOURCE: www.sba.gov/starting-business/how-start-business
LOCAL RESOURCES: Women’s Business Development Center
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Small Business Administration
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Business Planning Feasibility Study The Essence: · Your business idea consists of many hypotheses that need to be tested · Identify risks and mitigation strategies · There is no perfect answer, it’s your best assessment 5 Types of Feasibility · Technical (Product) - Does the product work? · Market Feasibility - Will enough people buy my product/service? · Operational Feasibility - Can the business model be executed? · Management Feasibility - Can I do this or find the people who can help me? · Financial Feasibility - Can all this be done at a profit?
Business Plan A business plan is an essential roadmap for business success. This living document generally projects 3-5 years ahead and outlines the route a company intends to take to grow revenues. Business plans usually include the following information: 1.0 1.1 1.2 1.3 2.0 2.1 2.2 2.3 3.0 4.0 4.1 4.2 4.3 4.4 4.5 5.0 6.0
Executive Summary Objectives Mission Keys to Success Company Summary Location and Facilities Company Ownership Start-Up Summary Products and Services Market Analysis Market Segmentation Target Market Strategy Industry Analysis Customer Analysis Competitive Analysis Strategic Plan Tactical Plan
ONLINE RESOURCE: www.sba.gov/starting-business/write-your-business-plan
7.0 Technology Plan 8.0 SWOT Analysis 8.1 Strengths 8.2 Weaknesses 8.3 Opportunities 8.4 Threats 9.0 Competitive Advantage 10.0 Marketing Strategy 11.0 Sales Strategy 12.0 Pricing Strategy 13.0 Sales Forecast 14.0 Leadership Team 15.0 Personnel Plan 16.0 Financial Plan 16.1 Start-up Funding 16.2 Projected Cash Flow
LOCAL RESOURCES: Women’s Business Development Center
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Small Business Administration
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Trademarks, Patents, & Copyrights If you have got a great idea, logo, business name, or even an invention, you need to protect it. Be sure to obtain a trademark, patent, or copyright in order to safeguard your intellectual properties.
What is a trademark?
A trademark (servicemark or tradename) is a word, name, symbol, device or combination thereof, adopted and used by a manufacturer, service provider or merchant to identify goods and services in order to distinguish themselves from others. Where can I obtain a trademark? Visit: www.uspto.gov/trademark
What is a patent?
A patent gives legal recognition to the inventor, creator or discoverer of a new product or procedure. Where can I obtain a patent? Visit: www.uspto.gov/patent
What is a copyright?
A copyright is a form of protection provided to an author of original works including literary, dramatic, musical, artistic, sound recordings and certain other intellectual works. Where can I obtain a copyright? Visit: www.copyright.gov
ONLINE RESOURCE: www.sba.gov/tools/sba-learning-center/training/patents-trademarks-copyrights
LOCAL RESOURCES: Women’s Business Development Center
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Small Business Administration
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Finding a Business Location Choosing a business location is perhaps the most important decision a small business owner or startup will make, so it requires precise planning and research. It involves looking at demographics, assessing your supply chain, scoping the competition, staying on budget, understanding state laws and taxes, and much more. Aurora Sales Tax Rates
Determine your needs Brand Image
· Is the location consistent with the image you want to maintain?
Competition
· Are the businesses around you complementary or competing?
Local Labor Market
· Does the area have potential employees? What will their commute be like?
Plan for Future Growth
· If you anticipate further growth, look for a building that has extra space.
Proximity to Suppliers
· They need to be able to find you easily.
Safety
· Consider the crime rate. Will employees feel safe alone in the building or walking to their vehicles?
Zoning Regulations
· These determine whether you can conduct your type of business in certain properties or locations. You can find out how property is zoned by contacting the City of Aurora Planning Division.
Evaluate Your Finances
Aurora is located in four counties. The sales tax rates change depending on what county your business is located within Aurora. Illinois Sales Tax is 6.25%. Aurora’s sales tax is 1.25%. Total sales tax rates by county are the following. · Kane County | 8.25% · DuPage County | 7.5% · Will County | 8.25% · Kendall County | 8.5% For businesses serving food & beverages an additional 1.75% is added in each county.
Hidden Costs
· Very few spaces are business ready. Include costs like renovation, decorating, IT system upgrades, etc.
Taxes
· What are the income and sales tax rates for your state? What about property taxes?
Government Economic Incentives
· Your business location can determine whether you qualify for government economic business programs, such as state-specific small business loans and other financial incentives.
Searching for Properties to Buy or Rent One of Invest Aurora’s core responsibilities is assisting entrepreneurs and business owners with finding available property within the City of Aurora. Reaching out to the Invest Aurora staff is a great first step in finding the right location to start your business. ONLINE RESOURCE: www.sba.gov/starting-business/choose-your-business-location-equipment
LOCAL RESOURCES: Invest Aurora | Women’s Business Development Center
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Business Property Build-Out City of Aurora’s Development Services Team The mission of the City of Aurora’s Development Services Team (DST) is to streamline the development process and create a convenient one-stop shop for all customers’ development transactions. Who does the Development Services Team serve?
Any property owner or developer that is planning to construct a new building, add an addition to an existing building or rehabilitate a building must go through the development process with the DST. Who is part of the Development Services Team?
Aurora's Development Services Team is comprised of representatives from Planning & Zoning, Engineering/Public Works, Building & Permits, and Invest Aurora. How does the DST process work?
Development Services Team meetings are held at the Planning and Zoning offices located at 1 S. Broadway, 2nd Floor. To setup a meeting, call the City of Aurora’s Planning and Zoning Division at 630.256.3080.
LOCAL RESOURCES: Invest Aurora | City of Aurora Planning and Zoning Division
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Funding John C. Dunham Revolving Loan Fund by Invest Aurora This program is aimed at assisting property owners with rehabilitation projects that are not commercially bankable in the downtown Aurora area. Loan amounts are reviewed and approved by an independent Loan Review Committee. To apply or for additional information visit: www.investaurora.org/revolving-loan-fund
Direct Lending Program by Women’s Business Development Center Loans are available for new and existing small businesses targeted towards businesses operating in low to moderate income communities. Businesses, including start-ups, may be eligible regardless of time in business, or size of business. Loan amounts vary from $1,000 to $75,000. To apply or for additional information visit: www.wbdc.org/established-programs/access-to-capital/
Loan Programs by Small Business Administration The SBA does not lend the money directly to entrepreneurs to start or grow a business, but sets the guidelines for loans that are made by its partners (lenders, community development organizations and microlending institutions). SBA guarantees that these loans will be repaid, which eliminates some of the risk to the lending partners. General Small Business Loans 7(a) This loan program provides loans to fund start-up costs, equipment, inventory, and working capital to small businesses that don’t have access to capital from traditional sources. Both start-ups and businesses looking to expand are eligible for the program. To apply or for additional information visit: www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs/general-small-business-loans-7a
Video Resource: www.youtube.com/watch?v=TPNnRVgLSBs Disaster Loans
SBA provides low-interest disaster loans to businesses of all sizes, private non-profit organizations, homeowners, and renters. SBA disaster loans can be used to repair or replace the following items damaged or destroyed in a declared disaster: real estate, personal property, machinery and equipment, and inventory and business assets. To apply or for additional information visit: www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs/disaster-loans
LOCAL RESOURCES: Acción | Invest Aurora
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Women’s Business Development Center
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Small Business Administration
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Certificated Development Company/504 Loan Program This program provides loans for major fixed assets such as equipment or real estate. This includes purchasing land, building a new facility or improvements to your existing facility. To apply or for additional information visit: www.sba.gov/loans-grants/see-what-sba-offers/sba-loan-programs/real-estate-equipment-loans-cdc-504/cdc-504-loan-amountsinterest-rates-fees
Small Business Loan Program by Acción Acción offers loans from $500 to $100,000 that can be used for purposes that will help start or grow your business. By offering microloans Accion allows small businesses to build credit. Additional loan benefits from Acción are fixed rates, flexible terms up to 72 months, no penalty for pre-payment, and access to education and networking events. To apply or for more information visit: www.accionchicago.org/loans Acción Edge by Acción Acción Edge is a business loan tailored to fit the unique needs of retail and seasonal businesses offering up to $15,000 for working capital needs (inventory, payroll, marketing). Daily payments are based solely on credit card sales, making the Edge product a great fit for retail businesses who accept credit cards as a majority form of payment. To apply or for more information visit: www.accionchicago.org/edge/
LOCAL RESOURCES: Invest Aurora | Women’s Business Development Center
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Small Business Administration
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Aurora Economic Incentives Local Economic Incentives are programs that are designed to assist business owners in finding the funding they need to start or expand their business. The following is a list of programs offered by the City of Aurora.
Finish Line Downtown Grant Program
The Finish Line Downtown Grant Program is a streamlined grant program geared towards assisting property owners with rehabilitation projects in downtown Aurora. The grant amounts are for 20% to 50% of the rehabilitation costs but can not succeed $100,000. Restricted to the downtown Aurora.
Tax Increment Financing Districts
Tax Increment Financing is a program aimed at improving the city’s infrastructure and filling vacant properties. TIF funds can assist property owners in rehabilitating their property thus making them more economically vital. The allocation of TIF funds is restricted to TIF districts.
Community Development Block Grant
This is a forgivable loan program intended to assist entrepreneurs and small businesses attain access to capital for projects that create jobs. A loan is given to eligible small businesses however the loan amount issued will be forgiven at a rate of 33% per year, spread over a period of 3 years.
River Edge Redevelopment Zone
The River Edge Redevelopment Zone program was created by the State of Illinois to stimulate the safe and cost-effective development of environmentally challenged properties adjacent to or surrounding rivers using tax incentives and grants. Benefits include: Sales Tax Exemption Property Tax Abatement Building Materials Sale Tax Exemption Investment Tax Credits Dividend Income Reduction Environmental Remediation Tax Credits Historic Preservation Tax Credits
HubZone
This program helps small Aurora businesses gain preferential access to federal contracting opportunities. The federal government has a goal of awarding 3% of all dollars for federal prime contracts to Hub Zone certified small businesses. To become a HubZone certified business visit: www.sba.gov/contracting/government-contracting-programs/hubzone-program
Stolp Island Historic District
A nationally designated district that allows property owners to qualify for the historic preservation tax credit program providing that the building is income producing and adheres to the Secretary of the Interior’s Standards for Rehabilitation. The federal tax credit can be worth up to 20% of the cost of rehabilitation.
ONLINE RESOURCE: www. investaurora.org
LOCAL RESOURCES: Invest Aurora
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Register Your Business Registering a Business Name Who must register?
Sole proprietorships and general partnerships must register an Assumed Name when the business name is different from the owner’s legal name. Where can you register?
Local County Clerks Office Kane County 719 S. Batavia Ave - PO Box 70 Geneva, IL 60134 Phone: 630-232-5999 Website: www.kanecountyclerk.org/Records/Business/business.aspx
DuPage County 421 North County Farm Road Wheaton, IL 60187 Phone: 630-407-5500 Website: www.dupageco.org/CountyClerk/1806/
Kendell County 111 West Fox Street Yorkville, IL 60560 Phone: 630-553-4108 Website: www.co.kendall.il.us/county-clerk/assumed-name/
Will County 302 North Chicago St Joliet, IL 60432 Phone: 815-740-4616 Website: www.thewillcountyclerk.com/?s=Assumed+Name
Obtaining an Employer Identification Number (EIN) Who needs an EIN? An EIN is needed by any business that retains employees. However, non-employers are also required to obtain one if they operate as a corporation or partnership. Review the following guide provided by the IRS to see if you need a EIN: www.irs.gov/businesses/small-businesses-self-employed/do-you-need-an-ein
How to Apply for an EIN Applying for an EIN is a free service offered by the Internal Revenue Service and can be done online, mail, or by fax. The following link provides step-by-step instruction for applying for an EIN: www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online
Obtaining Certificate of Registration and Taxpayer ID Who needs to register? You must register with the Illinois Department of Revenue if you conduct business in Illinois, or with Illinois customers. How do I register? You can registrar online, by mail, by phone or in person. The following link provides instructions on each method of submission : www.tax.illinois.gov/Businesses/register.htm
LOCAL RESOURCES: Women’s Business Development Center
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Small Business Administration
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Utilities When your business opens it’s doors be sure that all utilities are up and running. The following is a list of the essential utilities needed and contact information.
Water City of Aurora Water Billing Department 44 E. Downer Place Aurora, IL 60505 630.256.3600
Wastewater Treatment Fox Metro Wastewater District 682 State Rte 31 Oswego, IL 60543 630.301.6881
Electricity ComEd 1900-2034 Aucutt Rd, Montgomery, IL 60538 1.800.334.7661
Gas Nicor 1844 Ferry Rd, Naperville, IL 60563 888.642.6748
www.aurora-il.org/waterbilling/
www.comed.com
Internet OnLight Aurora 43 W. Galena Blvd, Auora, IL 60506 630.256.4620 www.onlightaurora.com
www.foxmetro.dst.il.us/
www.nicorgas.com/
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Staffing and Hiring 8 Step Process in Hiring Your First Employee Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Step 7 Step 8
Obtain an Employer Identification Number (EIN) Set up Records for Withholding Taxes Employee Eligibility Verification Register with Your State's New Hire Reporting Program Obtain Workers' Compensation Insurance Post Required Notices File Your Taxes Get Organized and Keep Yourself Informed
For detailed instruction visit: www.sba.gov/starting-business/hire-retain-employees/ hire-your-first-employee
Employee Resources Kane County Workforce Development KCWD can help you find and hire candidates by offering free job postings, free recruitment events, and provide business owners with a pool of motivated and skilled candidates. Kane County Workforce Development also offers training programs. To find out more about how KCWD can help visit: www.countyofkane.org/WDD/Pages/Default.aspx Waubonsee Community College The WCC offers two programs that can assist Aurora’s businesses with hiring and training employees. For more information visit: www.waubonsee.edu/learning/personalProfessional/workforce
Business Solutions and Training If you have a group of employees to train or a particular business challenge to solve, reach out to WCC business training experts. The WCC offers affordable, value-driven training that can be fully customized to your needs. Professional Development You may encourage your employees to enroll in Workforce Development's professional development short courses. These noncredit short courses, which cover a wide variety of topics, start throughout the year and are designed to develop relevant skills in just a few days or weeks.
ONLINE RESOURCE: www.sba.gov/starting-business/hire-retain-employees
LOCAL RESOURCES: Women’s Business Development Center
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Small Business Administration
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Responsibilities as an Employer Unemployment Insurance Who must obtain Unemployment Insurance? Typically a business is required to make unemployment insurance contributions to the Illinois Department of Employment Security (IDES) if they have: 1) employed one or more workers in each of 20 or more calendar weeks; or 2) paid at least $1,500 in total wages during the calendar quarter. Where do I obtain Unemployment Insurance? Unemployment insurance is filed at https://taxnet.ides.state.il.us/login/default.aspx Worker’s Compensation Under the Workers' Compensation and Workers' Occupational Diseases Acts, an employer is required to provide insurance for accidental deaths, injuries and occupational diseases of employees arising in the course of employment. Temporary workers who normally do not receive company benefits are still provided workers' compensation. Where can I obtain Workers’ Competition Insurance? Insurance generally is purchased through private companies. Companies can apply to the Workers' Compensation Commission to become self-insured. To learn more, contact: Illinois Workers' Compensation Commission 100 West Randolph, 8-200 Chicago, Illinois 60601 Toll Free: 1.866.352.3033 Anti–Discrimination Laws The Equal Employment Opportunity Commission (EEOC) is responsible for the enforcement of all anti-discrimination laws. These laws include: Title VII of the Civil Rights Act of 1964, Equal Pay Act, Age Discrimination in Employment Act, Rehabilitation Act of 1973, Title I of the Americans with Disabilities Act, and the Civil Rights Act of 1991. Business owners should acquaint themselves with these laws because they affect the company's hiring practices. To order information on these laws, visit: www.eeoc.gov/laws/types/index.cfm
LOCAL RESOURCES: Women’s Business Development Center
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Small Business Administration
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Business Connections Once your business is up and running it’s time to attract customers. Follow the marketing strategy developed in your business plan. It is also important to connect with other Aurora businesses and community members. The following Aurora organizations offer programs and services that can help you promote your business. Making connections: Aurora Regional Chamber of Commerce 630.256.3180 www.aurorachamber.com
Quad County African American Chamber of Commerce 630.859.9776 www.quadcountyaachamber.org
Aurora Regional Hispanic Chamber of Commerce 630.264.2422
Valley Industrial Association 630.892.4228 www.valleyindustrialassociation.org
www.ahcc-il.com
Fox Valley Chamber of Commerce 331.454.7400 www.foxvalleychamber.com
Business Training Opportunities ScaleUp Aurora ScaleUp Aurora offeres an intensive 12-week program that supports high-potential entrepreneurs in growing their businesses, increasing sales, creating jobs, and fostering economic growth. This program is FREE and includes: · Entrepreneurial education curriculum · Financial advising and loan assistance · One-on-one mentoring and counseling · Strategic growth planning · Networking opportunities and business relationships · Post-program alumni support and accountability To be considered for acceptance into ScaleUp, you must be in business for at least two years, have at least two employees and revenues between $150,000 and $500,000.
For more information to visit: www.wbdc.org/established-programs/scaleup-aurora
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Community Resources Aurora Regional Chamber of Commerce 43 W. Galena Blvd. Aurora, IL 60506 630.256.3180
Quad County African American Chamber of Commerce 43 W. Galena Blvd. Aurora, IL 60506 630.859.9776
Aurora Regional Hispanic Chamber of Commerce 54 W. Downer PL #103 Aurora, IL 60506 630.264.2422
Small Business Administration (SBA) 500 W. Madison Room 1250 Chicago, IL 60661 312.353.4528
www.aurorachamber.com
www.quadcountyaachamber.org
www.sba.gov/offices/district/il/chicago
www.ahcc-il.com
City of Aurora Planning & Zoning Division 1 S. Broadway Aurora, IL 60506 630.256.3080
ScaleUp Aurora 43 W. Galena Blvd. Aurora, IL 60506 630.896.3101
www.wbdc.org/established-programs/scaleup-aurora/
www.aurora-il.org/planningandzoning
Fox Valley Chamber of Commerce 600 N Commons Dr. Aurora, IL 60504 331.454.7400 www.foxvalleychamber.com
Fox Valley SCORE 1444 N. Farnsworth Aurora, IL 60506 630.692.1162
Valley Industrial Association 2000 S Batavia Ave. #110 Geneva, IL 60134 630.892.4228 www.valleyindustrialassociation.org
Waubonsee Community College Workforce Development 18 S. River St. Aurora, IL 60506 - 4128 (630) 906-4152 www.waubonsee.edu/learning/personalProfessional/workforce/
www.foxvalley.score.org
Invest Aurora 43 West Galena Blvd. Aurora, IL 60506 630.256.3160 www.investaurora.org
Women’s Business Development Center Aurora Office 43 West Galena Blvd. Aurora IL., 60506 630.896.3115 www.wbdc.org/entrepreneurial-programs/womens-business-center-aurora/
Kane County, Illinois Workforce Development Division 719 Batavia Ave. Geneva, IL 60134 630.232.3400
www.countyofkane.org/WDD/Pages/Default.aspx