Your first, and most important step is to create a written, personal Business Plan. It should include: What you are selling; Methods of manufacturing; Types of selling (Retail, Wholesale, Internet sales, etc.); Who is your Targeted Market, and what is your Price Point; Place of business; Who will be involved in your business; etc.

If you are looking for outside financing or working with a business consultant, your Business Plan will be requested

Define your business type: Sole Proprietor; Partnership, Limited Partnership, Corporation, etc. If it is a Partnership or Corporation, I suggest you have a lawyer set it up.

• As a Sole Proprietor, you are completely responsible for all income, expenses, and liability.
• In a Partnership, each partner is responsible for the debts of the partnership, even if the other partner has incurred the debt.
• In a Limited Partnership, one partner is the talent and the other partner is the financial investor. The investor, who has no active roll in the business, is the "Limited" partner and is not responsible for debts incurred by the business. You, the talent, do have an active roll, are the "General" partner, and are personally liable for partnership's debts.
• With a Corporation, you are setting up a completely new entity. It provides limited liability for all stockholders (you and others) and can provide unique tax situations. Talk to a lawyer.

Create a business name. It can be just your own name ("Joan Doe"), your name plus added words ("Jewelry by Joan Doe"), or a created name, such as; "Beautiful Beaded Jewelry". If you have created a business name, other than only your own name, you have created a Fictitious Business. When you create a Fictitious Business, you must file a "Doing Business As (DBA)" form and publish the necessary information in local publications. In Los Angeles there is a network of DBA Newspapers, who allow you to file on their web sites and they will handle everything else, including publishing your information in their network of newspapers.

Define your fixed business location: Home based (will customers be visiting your home, or not) – check local Zoning laws, Store Front, or Office Space.

Have an accountant, or bookkeeper, set up you accounting books. Define who will be maintaining your books.

Obtain a state resale certificate (and number), and understand your responsibilities. This allows you to purchase all components of your final product without having to pay sales tax. It also requires you to collect taxes on all of your sales, maintain sales records, and send the collected taxes to your state's tax agency. In California, the agency is called the "State Board of Equalization." You can visit their local office or go to their web site, to obtain your Resale Certificate and number.

Obtain a local Business License, if it is required. Some jurisdictions do not require one if you are a small, home based business grossing under a specified amount.

Set up a separate Business Checking Account, and perhaps, a separate Business Charge Card. Get to know your banker. He can be of help in starting your business, and after your business is in operation. Create a "line of credit."

Arrange to accept credit cards from your customers. You can do this through your bank, or through an independent credit card processor, such ad Retriever.

You will need different types of Business Insurance..

• Business liability insurance: This covers you if: anyone is injured by your product; is injured in your place of business (this can include a show venue – some venues require proof of insurance); is accidentally injured by you or an employee; if, as a part of your business, you (or your employee) injure someone or damage the property of another; etc.
• Business Auto insurance: Your personal Automobile insurance will not cover you if you have an accident when you are using your vehicle while conducting business. Conducting business can include: making deliveries; picking up supplies; sales calls; transporting your business materials and jewelry to a sales venue; etc.
• Workers Compensation Insurance: If you have an employee (an employee is anyone following your direction, whether they are paid or not) it is mandated by most states that you carry a "Workers Comp" policy. This policy provides medical, rehabilitation, income protection for all listed employees, and can cover you, too. Your employees are not covered by your liability insurance, so this also protects you from some liability if an employee is hurt on the job.
• Your lawyer might suggest other types of insurance.

• Information and help in starting and running your small business.
• Low interest loans.etc.

SCORE: (Service Corps of Retired Executives) is a nonprofit association dedicated to entrepreneur education and the formation, growth and success of small business nationwide. SCORE is a resource partner with the Small Business Administration (SBA). SCORE Association volunteers serve as "Counselors to America's Small Business." Working and retired executives and business owners donate their time and expertise as volunteer business counselors and provide confidential counseling and mentoring free of charge.

Women's business organizations: If you are a woman, these organizations can help you with: loans, networking with other women in business, starting and running your business, etc.

Minority business organizations: If you are a part of a minority, these organizations can help you with: loans, networking with other minority business people, starting and running your business, etc.

In the next week, or more, I will cover experiences with different pricing methods, useful books & magazines; consignments; frustration & burnout with under pricing; etc. Plus, I will answer the questions in part 1 of this series, and e-mails I have received.