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Home My WebLink AboutAgenda Report - June 16, 1993 (72)CITY COUNCIL MEL_. 'G June 16, 1993 PRESENTATION OF SMALL BUSINESS BOOKLET CC -400 A presentation was made to the Mayor by Gillian Murphy, San Joaquin College, Small Business Development Center, of a booklet entitled, "Resource Guide to Starting & Operating a Small Business In Lodi". How CAN WE AssIsr You? rJ One -on -One Consulting O Business Planning 0 Start-up Requirements O Expansion Assistance • Marketing Plans LJ Finance Information • Classes 0 Seminars O Resource Library O Sample Business Plans O Reference Materials O SBA Publications lnformation, consulting and technical assistance are provided at no charge to the client. There are nominal charges for classes and seminars. SAN JOAQUIN DELTA COLLEGE Small Business Development Center Business Assistance fon: •:* Small Business Owners + Start-up Businesses + Business Expansion San Joaquin Delta College Small Business Development Center 814 N. Hunter Street Stockton, CA 95202 FAX (209) 474-5605 (209) 474-5089 SBDC s o v a SAN JOAQUIN DEUR COLLEGE S % AI.L BBu INF`s DEVELOPMENT CENTER I1oe San Joaquin Delta College Small I3usiness 1 X.ve•lopment Center (S DC) is dedicated toserving the needs ds of the small business community. The S111X' helps new and existing businesses with financial, marketing, production, organization, and technical problems. The SBDC staff, consultants and volunteers provide up-to-date consulting, u-aining. and research assistance in all aspects of business management and business start-up. Business Start-up and Expansion The SBDC can help you with all aspects of busi- ness start-up and expansion, from preparing a business plan to assessing a location. The staff can assist you in determining the feasability of your plans and help with the nuts -and -bolts tasks such aty gutting permits and licenses. Trouble Shooting Small businesses that are experiencing difficulties can meet with SBDC staff for ideas and solutions. Consultants may be able to provide services that can help an ailing business. Consultants }-r(% c ne-cin-clue consulting is available to help with specialized needs o; your business. Knowledgeable professionals inn improve your business success. Procurement Workshops 'flu SBDC sponsors workshops to help small business owners understand and participate in government contracting and procurement procedures. Women Entrepreneurs is a program which is dedicated to increasing the economic independence of low-income women. The program includes training, classes, individual consulting and other support services. Women with limited financial resources are encouraged to participate. Classes Each semester, the SBDC offers classes at several locations. These classes include: Small Business Startup, Essential Topics for Small Business, and The New Entrepreneur. The courses cover a wide range of topics of interest to small business owners and those planning a business. Seminars Seminars are offered on specific topics of interest and importance to small business owners and managers. Library Books and publications on specialized areas of interest to small but. inesses are available at the SBDC library. Call or vi: *more information. Guides to Starting and Operating a Small Business are currently available for the cities of Stockton, Tracy, Manteca and Lodi. These helpful booklets contain the basic information necessary for small business owners. Everything from local permit and license requirements to tips on recordkeeping is included. Mystery Shopper Program A great benefit to small business, the Mystery Shop- per Program will send secret shoppers to your business. These consultants will then provide a detailed evaluation of your services, products, and other aspects of your business with recommend- ations for improvement. The California Stnall Development Center Program is a partnership cit: • San Joaquin Delta College • Sute of California • Chancellor's officerf the Cat' rorntsCommunity Colleges • U.S. Small Business Administration TheSanJoaquin Delis Collcge'rrullllu,msss1)ev I pmant Center is partially funded by the U.S Small Business Ad• ministration under Cooperative Agreement S112M.001S7. 01. The support given by the U.S Small Nosiness Admims- tratxhi thnngh such funding does n,'t eonstrtute an es• pressed or implied endorsement of any c•f the —sponsors' or participants' opinions, pndu ts, eN leiviccs For more inf ormalwn contact: San Joaquin Delta College Small Business Development Center 814 N. Hunter Street Styx kkm, CA 95202 FAX (209) 474-5605 (209)474-5089 New service! One-on-one free consulting to assist in Government Contracting. You can get: • Assistance in marketing • Computer bid match services • Assistance in bid preparation • Assistance in bid negotiations with the government • Assistance in contract administration • All at no charge! TheSan Joaquin Delta College Small Business DevelopmentCenter (SBDC)is nowa Contract ProcurementSub-Center. This means that you can get help on government contracts from a knowledgeable consultant. Simply call the SBDC at 474-5089 for further information or to make an appointment. GOVERNMENT CONTRACTS Summer 1993 Introduction to Govenunent Contracting Topics to be cover& include: Procurement Technical Assistance Program Sealed bid process Pricing Proposal process Pre -award swveys ► a. _ Recent legislation Wednesday, April 21, 9.:O0-1200 noon or Wednesday, May 19, 9..00-1240 noon Intenuediate Government Contracting Topics to be covered include: Small business contracting Blanket Purchase Agreements TBPA) Basic negotiation procedures Advanced negotiation procedures Cast and price analysis Submitting cosi or pricing data Wednesday, June 16, 9:00-1240 noon Sponsored hr.San loaqus Delta Collette Small Pustnese Devrlopment Center. the EconemK Development Assmai u+n &estness Rertmron At Evanston Pngrerr. end SCORE (Servke of Retrad Esecuu nest All uork:htgts will be hctd at 914 N. Hunter. A 920 registration fee corers each unrkshopand materials. To resister, rrlril this form along with the 520 fee per aonl-shop (check payable to SCORE) to the Economic Development Cen ter, 914 N. Finn ter. Stock ton .CA 95202. Registration is litnitnl r.315 participants per arrk hop. Name Add rens City Phone 1 will attend a workshop(s) on: O April 21 3 May 19 Zip June 16 CLASSES Summer 1993 Small Business Startup (BUS 94A) This class is designed espocialliy for those persons wanting to own their own business. Course topics include, but are not limited to: perannal traits for success, the feasibility study, product or service, accounting systems, business financing, organizational and legal structure, and basic management principles. June 22 -July 8, Tues & Thurs 6:30-9:30 p.m. Cunningham 101, Delta College Cost: S10 Code: 11657 Essential Topics for Small Business (BUS 94B) This class is designed for persons who own their own business or plan to become business owners. The class topics include but are not limited to: !notion, layout, inventory, control, crime prevention, and frandrising. July 10 -July 24, Saturday 9:00 a.m.-3:00 p.m. Cunningham 101, Delta College Cost: $10 Code: 24787 These classes arefin--credit cent res. To register, complete the Delta College npplication fur admissiou,availnhleat the Admissions Office in Locke 128 or from the Sym)11 Business Development Center, 814 N. Hueter. For more irrfornrntitnt call 474-5089 or 474-5625. SEMINARS Summer 1993 SMALL BUSINESS BASICS Starting Your Own Business: Home -Based Business June 26, Saturday; 9110 am. -4 00 p.m.; Holt 123 Instructor. Stephen Halley S37 Cede: 29883 Marketing Your Small Business July 10, Saturday; 900 a.m.-k00 p.m. Holt 123 Instructor: Stephen Havey $35 Cafe: 32977 MANAGEMENT Team Building & Motivation June 10, Thursday; 600-900 p.m. Holt 123 Instructor. Diane Feneck S21 Code. 29144 Assertiveness: A Positive Way of Working & Living June 21, Monday; 12:30 p.m. -6:30 p.m. Shima 111 Instructor. Danni Burton 535 Code: 32899 How to Be a Better Supervisor June 24, Thursday; 9.:00 a.m.•3:00 p.m. Holt 123 Instructor. Hden Scully S33 Cnde: 24805 Interview & Select the Right Person July 27, Tuesday; 000.900 p.m. Holt 123 Instructor. Diane Feneck $21 Code: V205 COMPUTERS Beginning Word Perfect for the Apple Mac June 1Z Saturday; 9 a.m.•3:30 p.m. Cunningham 226 Instructor: Florence Quilantang 533 Code: 73734 Beginning Word Perfect for IBM Compatible Computers June 19. Saturday; 9 a.m.•3:30 p.m. Shima 218 Instructor. Florence Quilantang S13 Code: 75747 MISCELLANEOUS BUSINESS SKILLS True Colors June 5, Saturday; 900 a.m.-3:(X) p.m. Shima 143 Instructor: Diane Feneck S.15 Code: 32938 (see other side for more cork) ps and registration info) • MISCELLANEOUS BUSINESS SKILLS (cool.) Effective Business Writing July 24, Saturday; 9130 a.m.-4:00 pm. Shima 142 htstructor: Kerry Davis S39 Code: 23114 How to Produce Effective NewslettersiBrodiures July 21 & 28, Wednesday; 6:30-9.30 pm. Shima 122 Instructor Laurie Litman S35 Code: 33029 Creating an Employee Handbook Jim 26, Saturday; 9) a.m.-3:30 pm. Holt 140 Instructor. Jeri Johnson S33 Code: 32990 AH seminars are held at Delta College. To register, fill out this form and mail it with a checkor moneyorder to: San Joaquin Delta College Registration Office, 128 Locke 5151 Pacific Ave Stockton, CA 95207-6370 Social Security 8 Name Street Zip Phone (day) _ Phone (evenings) StIninar Code ti Clieck/money order unclosed 5 j RESOURCE GUIDE TO STARTING & OrtKATING A SMALL BUSINESS IN LODI Prepared by thc San Joaquin Delta College Small Business Development Center ),A144,4e,44,±f4K-A414r, - • The San Joaquin Delta College Small Business Development Center is grateful for the support of the City of Lodi in the production of this publication. The San Joaquin Delta College Small Business Development Center is a participant in the California Small Business Development Center program in partnership with and funded by: • San Joaquin Delta College • State of California • Chancellor's Office of the California Community Colleges • U.S. Small Business Administration Preyed on recycled paper Table of Contents Introduction ..2 Common Pitfalls 3 Checklist 4 Business Plan ..5 You Are Not Alone (organizations that help) 6 Professionals 10 Legal Structure 11 Fictitious Business Name 12 Licenses, Permits and Other Regulations 13 Additional Resources 16 Employers 17 Taxes 18 Recordkeeping 20 Financing 21 Public Library 22 Small Business Development Center Library 23 A!TE NNx A. Miscellaneous Statistical Data 24 B. Income Characteristics 25 C. Taxable Sales & Permits 26 D. Taxable Sales Dollars (per capita) '7 E. Taxable Sales Dollers (% of county) '7 F. Business Tax Certificates Issued 28 1 Introduction Having your own small business can be the fulfillment of lifetime dreams. It can also be confusing, intimidating and frustrating. There are many things to think about — regulations, financing, taxes, permits, and more. We hope that this booklet will provide you with information and confidence to help you move through the maze. Starting a business means taking a risk. Not all small business ventures succeed, but there are things you can do to minimize your risk. Again, this booklet can help you. There are two major areas that will make a critical difference to your success. One is planning. You need to carefully plan your start-up, costs and timelines, know what you have to do and where you are going with your business. The other is knowing how to get help. You don't need to be an expert on every aspect of small business operation, but you do need to know how to find answers from people who are experts. This booklet is designed as a resource to help you accomplish those two tasks — good planning and where to go for additional assistance. We don't have all the answers here since each business has different needs and requirements. There is, however, enough information to get you to the organizations, agencies, books, and other resources that can answer your questions and give you guidance. Good luck in your exciting endeavor! 2 eel The Ten Most Common Pitfalls to Succeeding in a Small Business 1. Insufficient assessment of professional and personal skills 2. No business plan 3. Inadequate financing 4. Incomplete records 5. No marketing strategy 6. Inappropriate location 7. Not implementing good management 8. Hiring the wrong people 9. Poor customer service 10. Unwilling to ask for help Checklist ❑ Develop a Business Plan (page 5). ❑ Consult with necessary professionals (page 10). ❑ Decide on a legal structure (page 11). ❑ Obtain necessary insurance coverage (page 10). ❑ File a Fictitious Business Name Statement, if applicable, with a local newspaper and the County Clerk. Also, file an affidavit of publication within 30 days of the newspaper ad with the County Clerk (page 12). p Obtain a business license from the Finance Department (page 13). ❑ Obtain other necessary permits or licenses from the city, state and federal governments (page 14). ❑ Check the zoning laws and land use ordinances that might apply (page 14). ❑ Apply for a Federal Identification Number (page 19). ❑ Apply for a State Employer Tax Identification Number (page 18). Note flirt these are not all of the requirements necessary to start your business. For more information regarding your requirements contact one of the agencies listed on pages 6-9. 4 Business Plan A Business Plan is your guide to your business. It assists you in analyzing the feasibility of a new business, the expansion of an existing t esiness, etc. It defines your customers and competitors and points out your strengths and weaknesses. It details your plans for the future. Your Business Plan should be concise, factual, and easy to read. The finished productshould have a separate paragraph or list for each aspect of your Business Plan with a heading that identifies the subject you are discussing. SAMPLE BUSINESS PLAN OUTLINE 1. Summary A. Business Description 1. Name 2. Location and plan description 3. Product/service 4. Market and competition 5. Management experience/expertise B. Business goals C. Summary of financial needs and application df funds D. Earnings projections 11. Market Analysis A. Description of total market B. Industry trends C. Target market D. Competition 111. Products or Service A. Description of product line or service B. Proprietary position C. Comparison with competitors' products or services IV. Marketing Strategy A. Overall strategy B. Pricing policy C. Method of selling, distributing, and servicing products or services V. Management Plan A. Form of business organization B. Board of Directors/Advisors composition C. Officers, organization chart and responsibilitt s D. Resumes of key personnel E. Staffing plan/number of employees F. Facilities plan/planned capital improvements C. Operating plan/schedule of upcoming work for two years VI. Financial Data A. Financial statements (previous 3-5 years) B. Five-year financial projections 1. Income statement (profit/loss statement) 2. Balance sheets 3. Cash flow 4. Capital expenditures C. Explanation of protections D. Key business ratios E. Explanation of use and effect of new funds !loans, etc.) 5 You Don't Have To Do It Alone (Organizations which provide assistance) The San Joaquin Delta College Small Business Development Center (SBDC) is dedicated to serving the needs of the small business community. The SBDC helps new and existing businesses with financial, marketing, production, organization, and technical problems. The SBDC staff, consultants and volunteers provide up-to-date consulting, training, and research assistance in all aspects of business management and business start-up. Business Management • One-on-one technical and business consulting • Business planning • Start-up requirements • Expansion assistance Training • Classes on starting and operating a small business • Seminars on business management, financing, employee issues, marketing, customer service, etc. Resources • Reference Library (see i. iee 23) • SBA publications • Referrals Infos rnnt ion, consulting, and technical assistance are provided at no charge to the client. There are nominal charges for classes and seminars. SAN JOAQUIN DELTA COLLEGE SMALL BUSINESS DEVELOPMENT CENTER 814 N. Hunter Stockton, CA 95202 (209) 974-5059 FAX (209) 474-5605 6 The Lodi District Chamber of Commerce serves businesses in Lodi in a variety of ways. The Chamber offers seminars and networking opportunities. They work on local issues of interest to business and will act as ombudsmen with concerns and problems that arise. The Chamber emphasizes Grand Openings with publicity through its monthly Lodi Business newspaper. The Chamber also offers free counseling to small business owners each week in cooperation with SBA/SCORE. LODI DISTRICT CHAMBER OF COMMERCE 1330 S. Ham Lane/P.O. Box 386 Lodi, CA 95241 (209) 367-7840 The Economic Development Association (EDA) focuses on the needs of development prospects, local businesses, and assists companies to locate in San Joaquin County using up-to-date information to support community economic development. Through cooperation with other agencies, the EDA offers the following services: • Building and site availability • Economic development database information • Regional economic development studies • Topographic mapping • Geotechnic reports • Water and soil analysis • Labor market information ECONOMIC DEVELOPMENT ASSOCIATION 814 N. Hunter St. Stockton, CA 95202 (209) 468-3615 7 r SCORE, the Service Corps of Retired Executives, isa nonprofit association which provides free business counseling by men and women who have had successful business careers as company executives or owners of their own businesses. These volunteers are willing to share their knowledge and experience at no charge to people wanting to start their own business. SCORE 401 N. San Joaquin St., Room 215 Stockton, CA 95202 (209) 946-6293 NEDA San Joaquin Valley, Inc. is the private, non-profit business consulting firm operating the Minority Business Development Center (MBDC). NEDA offers a wide range of services to ethnic minority owned businesses including financial development, construction and procurement assistance, marketingdevelopment, and management assistance. In essence, NEDA can assist with almost every aspect of business and the fees are very affordable. NEDA SAN JOAQUIN VALLEY, INC. 305 N. El Dorado, Suite 305 Stockton, CA 93202 (209) 467-4774 Women Entrepreneurs is a program of San Joaquin Delta College Small Business Development Center. The primary goal is to assist economically disadvantaged women by increasing their financial independence. Women Entrepreneurs provides in-depth training in each step of starting and operating a business. The program also assists women with personal development, self confidence, communication, assertiveness, and presentation. The program provides teaching and coaching in a personal and supportive climate. WOMEN ENTREPRENEURS 814 N. Hunter Street Stockton, CA 95202 (209) 474-5089 8 The Stockton/San Joaquin Black Chamber of Commerce was established to: strengthen the communications between the general market place and the Black community; assist business people in providing services to the Black consumers; assist in the economic development of the Stockton/San Joaquin community; express the concerns regarding legislation and issues affecting the economic growth and development of the Stockton/San Joaquin community; and to assist in providing meaningful employment in the community. BLACK CHAMBER OF COMMERCE 11 S. San Joaquin St., Suite 310 Stockton, CA 95202 (209) 466-7222 The Mexican -American Chamber of Commerce works to establish a positive image for the Hispanic business community and promote awareness of Hispanic resources; strengthen the coalition of Hispanic business owners and develop an Hispanic business network; stimulate new Hispanic business enterprises; increase capital and marketing resources; gatherbusinesstradeand educational data for dissemination to Hispanic communities -at -large; and serve as an advocate of the Hispanic business community in such areas as trade development, legislation, civic and consumer affairs affecting the state's economy and business vitality. MEXICAN -AMERICAN CHAMBER OF COMMERCE 343 E. Main St., Suite 700 Stockton, CA 95202 (209) 943-6117 The Filipino -American Chamber of Commerce isa non-profit corporation established to foster the socio-economic growth of Filipinos and Filipino enterpreneurs in San Joaquin County. Through its supportive programs and activities, the Chamber endeavors to create a cohesive business community that promotes vitality and resources forthegreatercommunity. FILIPINO -AMERICAN CHAMBER OF COMMERCE 311 E. Main, Suite 201 Stockton, CA 95202 (209)546-7807 9 Professionals There are a number of outside professionals with whom a business person will want to establish a relationship. Accountant An accountant should be consulted to set up a good bookkeeping system for your business. Inadequate recordkeeping is a principal contributor to the failure of small businesses. Make sure that you understand the bookkeeping system you are using. Attorney An attorney's services are not only essential in the planning stages of your business, but throughout the life of the business. The attorney can assist you in choosing your legal structure, drawing up agreements and contracts and providing information on your legal rights and obligations. A Lawyer Referral Service, sponsored by the San Joaquin County Bar Association, is available at 301 E. Weber Ave, Stockton, 948-4620. Banker The capital requirements of a small business make it essential that a good working relationship be established with a local banker. Bankers are a good source of financial information and for obtaining financing. It is recommended that you establish a relationship with your banker prior to applying for a loan. Insurance Agent/Broker An insurance agent or broker can advise you about the type and amount of coverage that is necessary for your business. The agent may be able to tailor a package that meets your specific needs at reasonable rates. You may need: • Liability Insurance • Basic Fire insurance • Extended Coverage • Vandalism and Malicious Mischief Coverage • Theft Coverage • Automobile Insurance • Product Liability Coverage • Business Interruption Insurance • Worker's Compensation 10 1 Legal Structure Most small businesses start out as either a sole proprietorship or a partnership but many eventually explore the transition to a corporation or S corporation. Contact an attorney and/or accountant to learn the advantages and legal requirements of each to decide which form is best for you. Sole Proprietorship This is the simplest and (east regulated form of organization with minimal legal start-up cost. One person owns and operates the business and is responsible for procuring financing. The sole proprietor has total control, receives all profits, and business income is taxed as personal income. The major disadvantages include unlimited personal liability for the owner for all claims, taxes and debts against the business, and potential dissolution of the business upon the owner's death. Partnership A partnership is relatively easy to form and can provide additional financial and managerial resources. Each partner is an "agent" for the partnership and can individually hire employees, borrow money and operate the business. Profits are taxed as personal income and the partners (who act as co-owners) are still personally liable for debts and taxes. Personal assets can be attached and liquidated if the partnership itself cannot satisfy creditors' claims. A special arrangement, called a "limited partnership," allows partners to avoid personal asset liability. The IRS has special income lax rules for limited partnerships and they must be registered with the offices of the County Clerk (p. 12) and the Secretary of State (p. 16). Limited partnerships also must pay a franchise fee. When entering into any partnership, a written agreement is essential. Corporation The most complex of business organizations, the corporation acts as a legal entity which exists separately from its owners. While limiting the owners from personal liability, this creates a "double taxation" on earnings (corporate tax and personal tax). Corporate structure may be advantageous because it allows capital to be raised more easily through the sale of stocks or bonds and can continue to function as a business even without key individuals. It also enables employees to participate in various types of insurance and profit-sharing plans. It costs 59(X0 to incorporate and an annual "Statement of Domestic Incorporation" must be filed with the Secretary of State. The corporation must also prepay its annual minimum franchise tax of S800 to the Secretary of State (p. 16). A special type of corporation, an S corporation, allows owner` to overcome the double tax and shareholders to offset business losses with personal income. S corporations are subject to an annual surcharge. 11 1 Fictitious Business Name Statement File a Fictitious Business Name Statement with the County Clerk only if the business name you have chosen is different from your own legal name. For example, if your legal name is Joe Smith, and you have chosen a name that includes your last name ("Joe Smith's Auto Repair" or "Smith's Auto Repair") then you do not need to file. In general, if a business name does not have the last name of all owners, differs from the incorporation documents or implies greater ownership, a fictitious name is involved. Adding words such as "and company," "son/daughter," and "associates" implies greater ownership and is treated as an assumed name. (You should first look up your proposed business name to make sure that no other business is using that name.) Your Fictitious Business Name Statement must be published in a newspaper of general circulation in the county where the principal place of business is located once a week for fou r successive weeks and an affidavit of publication filed with the county clerk within 30 days after publication. County Clerk County Courthouse, 222 E. Weber Ave., Room 155 Stockton, CA 95202 (209) 468-2362 Lodi News Sentinel 125 N. Church/PO Box 1360 Lodi, CA 95240 (209) 948-5634 548.00 (52.75 over 2 names) Manteca Bulletin 531 E. Yosemite/PO Box 912 Manteca, CA 95336 (209) 239-3531 560.00 Tracy Press 145 W. 10th St. Tracy, CA 95376 (209) 835-3030 555.10 (one name) Lockeford/Clements News 19618 N. Tully Rd./ PO Box 76 Lockeford, CA 95237 (2)9) 727.5776 525.(x1 Linden Herald P.O. Box 929 Linden, CA 95236 (209) 887-3112 524.95 (55.00 each additional name) Ripon Record 130 W. Main St. Ripon, CA 95366 (209) 599-2194 548.00 Escalon Times 1537 2nd St./PO Box 98 F_ccalon, CA 95320 (209) 838-7043 558 (53 each additional name) Stockton Record 530 E. Market St. Stockton, CA 95202 (209) 943-0253 583.78 "Pt ices suh)cct if, change without »oticc (ver tiled 71/92). 12 4 14 Licenses, Permits, and other Regulations One of the most confusing aspects of starting a business is the maze of government regulations. While this process may be intimidating, it is important to do it correctly, since noncompliance can result in costly penalties. It is your responsibility to adhere to any and all regulations applicable to your business. 0 you are not sure about something...ASK! BUSINESS LICENSE In order to operate a business within the City of Lodi, whether it be from a store, office, factory, your vehicle or your home, you must have a valid business license. The type of license dependson the nature of your business and is renewed on an annual basis. Cost of the license varies depending on the number of employees of the business. The Finance Department will guide you thmugh the process. To apply. Finance Dept., License Division City Hall 221 W. Pine Street Lodi, CA 95240 (209) 333-6717 Home Occupation Permit — A limited range of business activities is permitted from a residence. 0 you are opening a business out of your home, you may be required to apply for this permit in addition to the business license. The Finance Department will direct you to the Community Development Department to obtain a Home Occupation Permit Application to be submitted to the Finance Department with your business license application. At this time there is no fee for this permit. Police Clearance — Some businesses require police clearance and permit. The License Division will tell you if this is necessary. (Fees vary.) Police Department 230 W. Elm Lodi, CA 95240 (209) 333-6727 13 Contact the Community Development Department regarding zoning or other land use questions. Planning & Zoning Division City Hall 221 W. Pine Street Lodi, CA 95240 (209) 333-6711 Call the Building Division if you need any plan check, building inspections, or questions regarding handicapped access. It is a good idea to talk to a building inspector to determine whether a permit is needed. Building Division City Hall 221 W. Pine Street Lodi, CA 95240 (209) 333-6714 Liquor License — You will need a license to sell liquor in your business. You must fill out a pre -application and, if accepted, pay the following: Beer/Wine for full restaurant $300.00; $205.00 annual renewal fee Beer/Wine for grocery store Off Sale Liquor (fee varies) Bar (fee varies) $134.00 $16,000.00 $18,000.00 Alcoholic Beverage Control Department 31 E. Channel St. Stockton, CA 95202 (209) 948-7739 Food Permit — If you are producing, handling, or distributing food products to the public, you may need this permit. Fees vary depending on the type of business. If you are caught operating without a permit, the fee is doubled. The Environmental Health Division offers food handling training ($80). When starting a restaurant or food facility or making changes (such as remodeling) it is necessary to get a I'lan Check ($220). San Joaquin County Environmental Health Division 445 N. San Joaquin St. Stockton, CA 95202 (209) 468-3420 14 4 Some types of professional businesses must be licensed, for example doctors, nurses, veterinarians, contractors, auto repair.Call for information. Department of Consumer Affairs 1020 N. St. Sacramento, CA (916) 445-1254 Automotive Repair Bureau 2857 Transworld Dr., Ste. 2 Stockton, CA 95206 1-800-952-5210 Contractor's License 9835 Goethe Road Sacramento, CA 95827 1-800-321-2752 Contractor's License (Modesto Branch) 3320 Tully Rd., Suite B-8 Modesto, CA 95350 (209) 576.6235 CERTIFICATION — It may be to your advantage to be certified if you are a minority, woman, or disabled veteran owned business ora small businessowner and want to apply for government contracts. (For Ical assistance, call the Minority Business Development Center, 4674774, or the Small Business Development Center, 474-5089.) Minority or Woman Owned Business: Caltrans Office of Civil Rights (916) 654-4576 Small Business or Disabled Veteran Owned Business: Office of Small and Minority Business (916) 322-5060 • 15 1 Additional Resources EMPLOYMENT DEVELOPMENT DEPARTMENT(EDD) is a major source of job -ready, experienced employees. They have the largest single data base of employers and workers in San Joaquin County and access to more than 500,000 job applicants state-wide. The Labor Market Information Division of EDD can provide current data on a very wide range of local labor market topics including local wage and salary surveys, statistics for affirmative action programs, and historical economic data. They can also help businesses acquire all their mandated posters. EMPLOYMENT DEVELOPMENT DEPARTMENT 631 Oak Street Lodi, CA 95241 (209):533-6960 SECRETARY OF STATE If you are filing as a limited partnership, register with: Secretary of State Limited Partnerships Division 923 12th Street, 3rd Floor, Sacramento, CA 95814 (916) 324-6769 If you are filing as a corporation or S corporation, register with: Secretary of State Corporate Filing Division 17.301 Street, Sacramento, CA 95814 (916) 445-0620 SMALL BUSINESS INNOVATION RESEARCH PROGRAM (SBIR) This program enables qualified small businesses to compete for research project funding from the Federal Government. To obtain a copy of the Pre - Solicitation A nnouncemnt, contact: SBA Office of Innovation, Research and Technology 1441 L Street N.W. Washington, DC (202)653-6158 CALIFORNIA STATE TELEPHONE DIRECTORY This publication, produced by the Department of General Services, provides information including: phone numbers for each state agency, procurement and contact persons in each department, state accounting offices, state loan programs, state regulations and state -regulated programs, state legislators and more. To order, call (916) 973-3740 (cost: S9.00). 16 For Employers GENERAL INFORMATION Information regarding wage claims, minimum wage, hours and working conditions: Dept of Labor Standards 31 E. Channel St., Rm. 317 Stockton, CA 95202 (209) 948-7770 Information on workers' benefits for employees, work-related disabilities, illness or fatalities. Workers Compensation 31 E. Channel St. Stockton, CA 95202 (209) 463-6201 For regulations regarding computation and employee withholding: Social Security Administration 1313 W. Robinhood Dr. Stockton, CA 95207 1-800-772-1213 HEALTH AND SAFETY REGULATIONS You have a legal, as well as a moral obligation to provide a safe working environment for your employees. You must operate your business in compliance with California and Federal OSHA requirements. Contact the U.S. Dept of Labor for information on Federal OSHA and Cal -OSHA for information regarding state requirements. U.S. Department of Labor 2981 Fulton Ave. Sacramento, CA 95821 (916)978-4233 Cal -OSHA (Occupational Safety & Health) Consultation Service 2424 Arden Way, Suite 410 Sacramento, CA 95825 (916) 920-6131 17 Taxes Being an entrepreneur does not preclude you from paying taxes to the IRS or the State of California. Seller's Permit — If you sell a product you must pay sales tax. You do not have to pay a tax on services. There are regulations that govern certain type:,• of businesses that are not "clear cut." For example, tailors offer both a service and a product. At a certain point, they must charge tax on the labor. If you are in doubt as to whether or not your business falls under these types of regulations, call and inquire. Board of Equalization 31 E. Channel Street Stockton, CA 95202 (209) 938-7720 If you sell cigarettes, alcoholic beverages, energy, motor vehicle fuel, or hazardous substances you most pay an excise tax: Excise Tax Unit (916) 739-2582 For forms to file individual state income tax. Also, you must register here if you are a corporation: Franchise Tax Board 31 E. Channel Street Stockton, CA 95202 1-800-852-5711 For employer's guides, disability, insurance tax, state withholding tax, unemployment insurance tax: Stockton Tax Office 2529 W. March Lane, Suite 105 Stockton, CA 95207 (209) 956-1438 18 INTERNAL REVENUE SERVICE (IRS) The IRS has many free publications to assist business owners. Below is a partial listing. 115 Circular E: Employer's Tax Guide 8334 Tax Guide for Small Business 1505 Tax Withholding & Estimated Tax 1509 Tax Calendar 1533 Self -Employment Taxes 8534 Depreciation 1535 Business Expenses 1538 Accounting Periods and Methods 1583 Taxpayers Starting a Business 1587 Business Use of Your Home 1917 Business Use of a Car 8937 Business Reporting Other forms you may need: Schedule C Profit or Lou from Business Schedule SE Social Security Self -Employment Tax Form SS -4 To apply for an Employer ID Number. (An employer ID number is mandatory if you have employees.) Form W-4 Employees withholding allowance certificates. Form 730 Taxes on wagering, for example if you sell lottery tickets. Form 941 Employers quarterly federal tax return, also social security tax, federal unemployment tax, and FUTA. Form 940 -EZ Employers annual federal unemployment tax return. Form 720 Excise tax, quarterly federal excise tax retum. Form 1040 -ES Estimated Tax for Individuals Form 2290 Use of highways by certain trucks, tractors and buses. Form 4070-A Tips, withholding and reporting. Form 8109 Federal tax deposit coupon book. (You may pay taxes by de- positing your payments in an authorized financial institution.) Annual Income Tax Returns — Every business must file an annual income tax return. Which form depends on how your business is organized. Sole Proprietor: Schedule C Form 1040; Partnership: Form 1065; Corporations: Form 1120 S IRS 1550 W. Fremont 1150 Stockton. CA 95203 1-800-829-1040 (information and assistance) 1-800-829-3676 (forms) Teletax Recorded Information: 1-800-829-4032 STATE OF CALIFORNIA (contact Stockton Tax Office — see page 18) IDE 4525 IDE 44 Employer's Guide Personal Income Tax Withholding Guide 19 Recordkeeping Keeping accurate and up -to -dale records is crucial to a successful business. Records are the most important management "tool" you possess. There are many different systems for recordkeeping. The important point is that you understand whatever system you decide to use. It is very helpful to consult an accountant to help you find a system that is best for your needs. Be sure to open a business bank account and keep all your business transactions separate from your personal finances. Deposit all receipts promptly. Decide on who will sign the checks. Pay all expenses by check. Open a tax account to keep tax collections (sales, Social Security, income) and estimates separate from sales revenues. It is also important that you distinguish between income received from business transacted within and outside of the city. The city taxes receipts fur business within the city only. If you are unable to show which receipts are for business in Lodi, you will be taxed on total receipts, which could be considerably higher. The city can call for an audit at any • .ar. For information, contact the Finance Department, 333-6717. Hotlines (in English only) U.S. SBA Small Business Answer Desk (800) 827-5722 Office of Small and Minority Business Telebiz: (916) 322-5060 Small Business Help -Line: (916) 327 -HELP (4357) State Consumer Insurance Hotline: (800) 927-4357 U.S. Department of Commerce: (202) 482-20(X) Small Business Ombudsman of the US Environmental Protection Agency: (800) 368-5888 :U Financing Sufficient capital is essential for both start-up and expansion of a business. In fact, inadequate financing is one of the major causes of business failure. In order to avoid this pitfall, you must not only have enough money but also the knowledge to manage it well. Planning is essential. Constantly review and update your Business Plan. It should include short and long-term projections and strategies based on realistic figures covering at least the next three years. Also include budgets, investment and expenditures, operating leverages, loans, risks, equities, assessments, sales, profits and cash flow schedules and management. When starting a business, it is good to have at least a 12 -month financial cushion so you can handle all of your expenses with no revenue from the business. This willallow you to minimize your risks wh ile establish ing your business. A good business plan can help you get a loan. Borrowers should also provide profit/loss statements, tax returns and a current balance sheet. Be prepared to demonstrate the ability to repay and the capacity to manage funds effectively. Borrow prudently and do not overextend yourself. The Small Business Administration (SBA) offers a variety of loan programs to eligible small businesses. Most of the loans are made by private leaders and then guaranteed by the SBA. While it is not necessarily easier to be approved, the guarantee will allow you to obtain a loan with a longer maturity, better terms and interest rates, thereby reducing your payments and initial loan burden. However, you must generally have at least a one- third equity stake in the business. The average size loan is 5175,0CJ. Local banks generally provide loans starting at $25,()00. The California Department of Commerce has a loan guarantee program which it administers through business development corporations that provide guarantees up to 5350,(XX). In addition, there is a micro -loan program for loans under 525,000 which is targeted towards but not limited to women, handicapped, and ethnic minority businesses. California Capital Corporation, which services San Joaquin County, was established to make loans available to small businesses who would otherwise be excluded from bank financing. Contact California Capital, (916) 442-1729. 21 r z Lodi Public Library The Lodi Public Library is an excellent resource for your small business information needs. Come to the library with your questions. 1f they don't have the specific answers, they can point the way to people and places in the community that may help you. The library can also arrange to borrow books from other libraries if they are not available in Lodi. Library hours are Monday -Thursday from 10 am- 9 pm and Friday dr Saturday, 10 a.m-6 p.m. LODI PUBLIC LIBRARY 201 W. Locust Lodi, CA 95240 (209) 333-8507 Reference materials Reference materials are highly used information sources which cannot be checked out but most be used in the library. Some of these books offer a variety of factual information such as: Smell Business Sourcebook. Carol Schwarz, editor. 1991 Franchise Opportunities Handbook, U.S. Dept. of Commerce, 1991. The Rating Guide to Franchises, by Dennis Foster, 1983. The 50 Best Low -investment, High -profit Franchises, by Robert L. Perry, 1990. Books The library has books on most subjects relating to business formation and operation. There are books on how to write your Business Plan, working with employees, marketing, computers, bookkeeping and much more. And if the book or subject you want is not available, the library staff can help you locate the information. Look in section 658.022 for basic information on small business start-up. Specialized Business Information Ask at the Reference Desk for specialized information. You can also call 333- 8507 or 333-8508 with questions. Pamphlet Files Pamphlets contain some information about various aspects of business. Files are arranged alphabetically by subject. Ask the library staff about specific areas of information you need. They'll be glad to get you started. 22 ak Small Business Development Center Library The San Joaquin Delta College Small Business Development Center has an extensive library available to people starting or operating a small business. This is an easy way to find resources to help you. Small Business Administration Publications A variety of publications is available from the SBA in such areas as products/ideas/inventions; financial management; management and planning; marketing; crime prevention; personnel management. (You may read the publications at the Small Business Development Center or order them from SBA Publications, P.O. Box 30, Denver, CO 80201. The SBA charges for the publications.) Videos How to Really Start Your Own Business How to Succeed in a Hone Business Women in Business How to Find New Customers The Tough Sell Making Effective Saks Calls Business Guides to Starting... Child Care Service Senior Day Care Catering Service Restaurant Bookkeeping Service + 35 additional specific businesses Resource Books Starting and Operating a Business in California California Corporation Start-up Small Time Operator The Inventor's Notebook Thomas Register Encyclopedia of Associations Streetsrnart Marketing Other Resources in Management Advertising Marketing Legal Research Bookkeeping/ Accounting 23 r APPENDIX A. Miscellaneous Statistical Data Lodi is located 90 miles east of San Francisco and 34 miles south Of Sacramento with a total area of 11.3 square miles. The City was incorporated on December 6, 1906 under General Law with the State of California and operates under the Council/Manager form of government. MUNICIPAL SERVICES The City of Lodi has owned and operated the electrical distribution system, which serves customers within city limits, since 1910. The city water source is 100% ground water provided by 22 active wells. The city also owns and operates the wastewater treatment system. Refuse sery ice is provided through the Sanitary City Scavenger Company. To apply for utility service contact: City of Lodi Finance Department (eater, electricity, seem, refuse) 221 W. Pine Street Lodi, CA 95240 (209) 333-6719 PG&E (gas) 12 W. Pine Street Lodi, CA 95240 1-800-585-5598 Pacific Bell (telephone) No local office. Call 1-811-4900 for service (no charge). King Video Cable TV 1521 S. Stockton Street Lodi, CA 95240 (209)369-7451 INTRACITY TRANSPORTATION The city maintains over 159 miles of roads. Public transportation needs are administered by the city Dial -A -Ride program. Tickets must be purchased prior to calling for a ride from: City Hall Finance Dept, 221 W. Pine; Loel Center, 105S. Washington; Farmers& Merchants Bank, 121 W. Pine and 1020 W. Kettleman; the Senior Citizen Information & Referral Center, 600 W. Oak. There is a discount rate for senior/disabled citizens. Call 333-6806 fer rides. PUBLIC SAFETY The City of Lodi has a centralized Police Station located at 230 W. Elrn 5t., (209) 333-6727. The Main Fire Station is located at 210 W. Elm St. and the city maintains two substations. Call (209) 333-6735. 24 1 B. Income Characteristics HOUCOM LODI LD j STOCKTONi ESCAWN It MANTECA TRACY : LATh9Wi RIPON Total i Households 19,121 1 68.923 16N 33,466 11209 f 1,866 2474 1 50.4999 619 3.453 64 ; 351 223 II 19 j 46 5,0069,999 1,973 Ij 7,410 235 I 994 854 i 115 i 169 10.00612.499 864 1 3,786 39 1 568 322 1 83 ! 116 12.50614,999 003i 3646 60 504 352 1 90 1, 36 15,00617.499 937 i 3.580 >5 j 601 280 i 330 i 64 i 17,50619.999 924 1 3004 60 i 456 270 ! 49 1 92 20.00032.499 1,004 I 3,802 M 507 416 i 46 1 102 i 22.50624999 773 2.963 40 492 SID ` 57 1 139 25.00627.499 929 1 3.089 67 565 401 64 ! 305 I 27.50629.999 601 ; 2..73 48 306 340 j 59 i 81 30.00612,499 831 1 3,031 61 573 575 99 147 32.50434999 666 i 1,881 55 ' 638 3.50 57 132 35,00637,499 636 1 2.463 113 544 486 85 i 121 37.50639,999 741 i 1.770 24 481 370 94 91 40,00642.499 769 1 2.401 55 618 542 ( 126 1 121 42,50644999 127 1 1,735 19 395 ! 312 87 91 45.000-47,499 636 1 1,968 52 532 f 534 i 38 92 47300-49,999 438 ; 1.389 i 89 i 422 ', 329 32 71 50,00654.999 911 1 2.951 52 10C 729 i 134 147 55.00659.999 543 1 1.945 88 683 805 , 105 110 60,00671999 1,669 1 4466 103 j 1200 3.237 141 203 75,00699.999 853 i 2.9619 86 1 633 '; 829 95 139 100006124,999 237 1 1.123 1 21 183 250 14 30 125,006149.000 115 4 427 1 9 66 35 ' 0 27 1 { _ 130.00D or more 206 1 574 11 114 38 i 7 22 Media Income 930, 739 1 D6' .876 332.275 535.083 340,236 315,8.53 33%579 i 73 54 county 1.003 ( 87.7 1.053 1 145 . 1-314 1 1 1.16 median Sows*. 3990 Genu �r Y'�1 • V... .:1.yfT..ti 25 r • C. Taxable Sales & Permits SALES (thousands of SO Apparel Aces ('.ental klenhandhe Stores -- Dns S�«e. ._ -- - Food Stars ... Packaged Liquor Stores Eating tr Drinking Races Home Furnishings / Appliance 3'ulkling Materials/Farm Tod Auto/kakis & Supplies Service 88{0116--_`____ Atha Rrtall SIMS - - Total Retail Same All Other Outlets . TOTAL PERMITS: Appall Sorts General Menhantty Stores Drug Stores -- Fa.' Stores -- ----- Packaged liquor Sores Eating & Drinking Daces lkvre Furnishings/Appliance 1932 1983-1984.1985;1986 1987 1988;1989 1990;1991 5.953 : 6469 6.883 ' 7,289 7,737 ' 6,760 9.726 ' 30.20' 9,909 9539 22,013 27,600 ; 26,321 31,714, 33,630. 36,216 .15,077 ' 39335. 41,6722 40.069 • . . . 12-956 13,465 12.960 , 13.412 13,504, 1&166 14,446 149!7 11066 , 17,719 } 33.046 ; 16.166: 21961 ' 24.146 1 23,140 t 27,906. 33806: 37.717 3.i,.CS ; 40,197 6933 7326 1 7.174 5,960 , 5,669 4336 • 4132 • 6.123 4530. 3,956 21,675: 23111 25236 ' 27,911 32.166E ?2,.2.16 - 34.606 ; 36210: 40.361: 39.302 7668 9.712 11366 ; 11,467 , 15.966 17,191 14.170 1 10.330 10.903: 10.407 15,315 ; 20,640 , 25610 , 3060 ` 27,902 , 21,372: 26231 ; 31.655 ; 31526 ; 28,604 45,569 1 59,176 ; 67,044 ' 65491 ' 87,179: 66,634 61,632 ; 64590 91.417 82.910 222-'7 :;22.05S ; 24.156 24,528 2 19,720 1332 20,495 1 1 x.249 ; 24952 ; 27,963 14408 • 146{7. 17.09 ; 16,592. 17,822 ! 19,061 ' 3,676 2-`„561 •21630 • 21,488 191,383 , 2214171' 246,601i 272,992± 285,987' 273,04! 299410 318,91613383!7; 321,212 50,097 • 30.867 .62,180 , 63,153: 64,778 76.237 ; 145475; %352 ; 97.84 , 91.310 241,480 ! 272333. 70476t 1315.735, 510,739' 349,303. 404115; 415,762. 4128,733; 412.322 '5 10 39 114 42 -11•711•1-ing Matenals/Fenm Tout 29 Auto Dealers & Supplies - 17 Services Stations - ---- Other Retail Stoves total Ret,I 548,.6 26 120 477 All ._.._.._-__ O`her Outlets -_-^ 466 TOTAL ; 1198 29 30 11 14 14 9 10 10 r, 17 - 37 IO 8 6 118 117 121 38 39 36 32 34 ' 36 47 57 4 29 27 125 131 132 1110 503 : 501 11119 769 620 tt08 1272 , 1324 Soucy. Stare Boned of Equ.tratron. Stam d Gamma 26 • 32 14 12 36 7 128 38 34 33 17 150 521 673 .394 34 35 : 30 : 29 23 11 13 13 12 11 12 12 41 44 4l 40 7 5 7 7 133 • 136 142 136 • 10 • 41 39 . 35 • 34 35 40 37 52 • 58 , 62 56 • 15 17 : 16 17 165 162 161 165 • 5461 557 ' 369 . 549 10(8 ; 1074 - 1147 4 10.51 1354 ; 1631 1712 1602 D. Taxable Sales Dollars (per capita) Taxable Sales Taxable Sales YearPopulation Per Capita (in thousands) (in dollars) 1985 315,735 41,323 7.641 1986 350.735 43,293 8.101 1987 349.303 0.773 7,631 1988 404,833 48.042 8.427 1989 415,762 49.221 8.447 1990 428.753 50.328 8.319 1991 412.522 52.339 7,852 E. Taxable Sales Dollars (percent of county) 1985 1986 1987 1988 ; 1909 i 1990 1 1991 Apparel Stores General Merchandise Stores 12.3 ! 12.1 ! 12.4 I 13.6 11.2 ! 11.1 ! 10.2 9.2 Drug Stores 19.7 ; 1.9.4 I 19.5 i 18.9 Food Stores 12.3 ' 12.8 1, 146 1 15.9 . . l'adiageel Liquor Stores 32.7 . 19.1 ; 19.6 ;! 20.6 211.2 I 14.6 I 13.2 1 I F.ating St Drinking Places 13.6 : 14.6 ' 13.6 I 13.9 I 14.0 ! 14.2 1 14.0 i•1 -1- 1- f flame Furnishing & Appliances 14.0 . 17.6 ; 183 , 14.5 I 14.1 ! 14 9.9 114 I 12.1 I 12.0 T T 9.5 • 9.6 ! 11.1 20.6 ! 11.7 1 20.6 I -; • - 168 ; 18.5 13.2 1 1 Building Materials!Farrn Tools 19.3 1 20.8 I 15.0 I 10.2 I 142 I 10.4 I 11.7 1 _ 163 ; 18.5 : 15.4 I 14.9 1 15.0 j 142 17.2 Auto Dealers & Supplies 1 - i- • . . Service Stations 11.4 , 112 , 11.2 ! 10.1 I 10.8 ' 15.7 11.2 -. - - .1- - i -- • !.. Other Retail Stores . _ .. ... ._. ...... .__. __ N/A N/A N/A , N/A N/A ; N/A . 7.0 1 Total Retail Stores 13.6 ' . 143 , 13.2 I 132 1 13.0 121 12.9 i-- 1- - 4. I.__ All Other Outlets N/A i N/A i N/A I N/A NIA NIA , 7.8 . _ _ ... .. _ . .... _ Totals All Outlets N/A ! N/A I N/A I N/A N/A N/A I 11.3 Source: Slat Hoard se Equelizebon. Seale of CaMorme 27 r F. Business Tax Certificates Issued Type of Business Number of Percent Businesses LOCATED IN LODI. Construction 312 9.60% Manufacturing 137 4.21% Transportation and public utilities 67 2.06% Wholesale trade 157 4.83% Retail trade 739 22.73% Finance, insurance, and real estate 109 335% Services 1520 46.75% (khav 210 6.46% TOTAL 3251 100.00% LOCATED OUTSIDE LODI: Construction 439 53.93% Manufacturing 11 1.35% Transportation and public unittics 8 0.98% _ . - Wholesale trade -- - - 74 9.09% Retail trade b I 7.49% Finance, insurance, and real estate 4 0-49% Services 178 21.87% Other 39 4.79% TOTAL 814 100.00% GRAND TOTAL 4065 Source: S:ata Board of Equaktaeon. Stare of California 28 e -a: While we have attempted to identify many of the requirements that apply to starting a small business, we cannot guarantee that this compilation is complete. This publication does not relieve people of the duty to ascertain what law•sapply to their activities or the manner in which they must comply with those laws. All requirements and fees are subject to change. Prepared by InfoWright for the San Joaquin Delta Ccllege Small Business Development Center The San Joaquin Delta College Small Business Development Center is partially funded by the U.S. Small Business Administration under Cooperative Agreement SB -2M-00157-01. The support given by the 11, U.S. Small Business Administration through such funding does not constitute an expressed or implied endorsement of any of the co-sponsors or participants opinions, products, or services. December, 1992 ti 1 , • .1% 1111'41;10,4. 461/1T110, • .....01001.1.1.,11.110110: "110{ 41; San Joaquin Delta College Small Business Development Center 814 N. Hunter Stockton, CA 95202 (209) 474-5089