Corporate Partners

The Veteran Fast Launch Initiative is sponsored by the Walmart Foundation

Use Your Military Skills to Start a BusinessSCORE’s Veteran Fast Launch Initiative helps you turn your business idea into reality.

Free Mentoring from over 13,000 business experts

Assistance with business plans, cash flow strategy and marketing

Online workshops, templates and tools

Free and discounted services & software

www.vetsfastlaunch.org

Turn your military experience into business success!

For more information, contact:

Start with a SCORE ScholarshipReceive a scholarship to attend a SCORE startup or growth workshop.

Get Started!

1-800-634-0245

SCOREwww.score.org

Veteran FastLaunch InitiativeCPAs Helping Veterans Start and Grow Small Businesses

1

Table of Contents

Introduction ................................................................................................ 2

Getting Started ........................................................................................... 4

Program Resources Overview ..................................................................... 6

Small Business Startup Checklist ................................................................ 8

SBA Loan Snapshot ..................................................................................16

Looking Forward .......................................................................................19

2

IntroductionFirst lady Michelle Obama

and Dr. Jill Biden recently

launched the Joining Forces

Initiative, a program aimed to

improve support for our

service members and their

families. The program

highlights issues of special

importance to the military

families they have met across

the country, including the

areas of employment,

education and wellness.

3

In support of this program, SCORE, in partnership with CPAs and other major corporations, has created the new “Veteran Fast Launch Initiative.” The Initiative is a combined package of services, scholarships and free software, combined with SCORE’s mentoring program that provides tools and training to veterans and their families who want to use their special skills and knowledge to start and grow their own small business.

Starting your own small business is a very realistic and attainable goal. However, starting a business of any kind can seem like an overwhelming endeavor. Some of the basic things to consider in launching and running a small business — such as building a business plan, knowing your financial requirements, identifying your necessary equipment and technological needs and how to price items and services — can pose a unique challenge for someone who wants to open and operate their own small business. The good news is that you do not have to do it alone. A certified public accountant (CPA) can be an essential partner. A CPA can help you establish effective business operations and a plan for profitability. While this guide will provide simple tools to starting and growing your own small business, a CPA is an invaluable resource to ensure that your business is successful.

“The American, by nature, is optimistic. He is experimental, an inventor and a builder who builds

best when called upon to build greatly.”

— John F. Kennedy

4

Getting StartedCongratulations on signing up for this

program and choosing a CPA. You

have already accomplished an

important step in your business success.

You have served us; now it is time

that we serve you. Your CPA partner

is honored to assist you and provide

you with up to five hours of free

financial advice on starting and

growing your small business. Before

the clock begins ticking, read through

this guide so that the time with your

CPA is used efficiently.

5

“America was not built on fear. America was built on courage, on imagination, and unbeatable

determination to do the job at hand.”

— Harry S. Truman

1 Review all the resources available through this program on page 7 and at vetsfastlaunch.org/sponsor-offerings. Consider taking advantage of all services available to you.

2 Use the small business startup checklist on page 8 to evaluate the areas where you will need assistance from your CPA. Visit the Small Business Administration (SBA) at sba.gov for additional information and guidance. Outline your ideas and develop a list of questions or areas where you may need additional assistance from your CPA.

3 Analyze the SBA loan snapshot provided on page 17. Evaluate which loan type would best meet your needs. Be prepared by speaking with your CPA before consulting with your bank. Refer to the tips provided on page 18 describing what you need to apply and how to successfully land a loan.

4 Contact your CPA to schedule a time to meet and discuss your organized ideas and questions.

5 Build rapport with your CPA by discussing expectations and needs up front.

6 Review your business ideas, startup checklist, loan comments and other questions with your CPA.

7 Consider the unique value your CPA can provide in enhancing your continued business success.

6

Program Resources Overview

In making this initiative a success, SCORE has

been supported by a partnership with the

Walmart Foundation to support military and

veteran employment and entrepreneurial

opportunities. In addition to their sponsorship,

there are several technology and business

partners who have generously agreed to offer

valuable tools, services and resources to give

you a head start in starting and growing your

small business. Take advantage of all the great

resources available to help you succeed.

7

Five year, $10 million commitment

Five free hours of financial advice from CPAs

Free add program – print and online yellow pages

Free AVG Internet Security Business Edition 3-user

Free access to the Entrepreneurial Mindset Workshop

$99 discount

60-day free trial

Free trial to thousands of templates

HP Virtual Rooms free 60-day trial

Free voucher for technology skills training and certification

Five free legal documents

Free Veterans Group Edition licenses

Free credit card reader

“Government can and must provide opportunity, not smother it; foster productivity, not stifle it.”

— Ronald Reagan

8

Small BusinessStartup Checklist

Review this checklist before meeting

with your CPA. It provides a

pathway to assist you in establishing

your small business. To most

effectively utilize your time with

your CPA, outline your ideas and

develop a list of questions. The SBA

and SCORE libraries will prove to be

valuable assets in this planning

process; therefore, the list includes

many links to quickly guide you in

the right direction.

9

Determine your readiness to start your own small business

and set your goals. Utilize the SBA’s self-assessment tool, which prompts you with questions and assists you in evaluating skills, characteristics and experience. Determine your business goals so you can turn your ideas into success and productivity. archive.sba.gov/assessmenttool/index.html

Decide whether to start a small business by yourself, with a

partner or to buy an existing business. Evaluate which route works best for you after comparing time, costs, and establishment of a client base for each alternative. Talk to your CPA about the options you are considering. sba.gov/content/choosing-business

Define your business and how you will compete in the

marketplace. Determine the types of clients and industries you will serve and the services you plan to offer. Identify your target market and understand current economic conditions. Conduct market research to understand which products and services your customers want and how to differentiate your business from competitors. sba.gov/content/conducting-market-research

sba.gov/content/understand-your-market-and-economic-conditions

“Excellence demands competition. Without a race there can be no champion, no records

broken, no excellence.”

— Ronald Reagan

“Determine that the thing can and shall be done and then we shall find the way.”

— Abraham Lincoln

10

Select your business location and identify necessary equipment

and required technology. Find the right location for your small business and understand your options regarding equipment. Stay current on technology to be more efficient and effective. Ask your CPA for their insight on how to use technology to help small businesses meet regulations, establish internal controls and obtain information necessary for critical business decisions. Utilize the free and discounted software and other technological tools (page 7) offered through this initiative. sba.gov/category/navigation-structure/starting-managing-business/ starting-business/establishing-business/choosing-location-equipment

Determine your staffing needs. If you plan to hire employees to work in your small business, ensure that you are in compliance with employment laws. Use the SBA’s hiring guide to find more detailed employee information such as independent contractors vs. employees, employee benefits, employee handbooks, etc. There also are programs that encourage employers to hire veterans. Read through the SBA information and consider the incentives of veterans hiring veterans. Ask your CPA if you have additional questions or if you need assistance completing all necessary forms. sba.gov/content/10-steps-hiring-your-first-employee

sba.gov/category/navigation-structure/starting-managing-business/ starting-business/establishing-business/hiring sba.gov/content/veterans-0

Outline your financial requirements. • Projectyourpersonalfinancialneeds. As a small business owner, your business finances and personal finances often are closely related. Your domestic financial obligations and pressures should be considered when determining your financial requirements. Ask for your CPA’s assistance in making the most of today and preparing for tomorrow.

“In preparing for battle I have always found that plans are useless, but planning is indispensable.”

— Dwight D. Eisenhower

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•Determinestartupcosts. Project startup costs and operating capital and, if necessary, make initial financing arrangements. Consult your CPA for guidance on how to determine and reasonably estimate your startup costs. Your CPA can also assist in preparing the necessary, required paperwork for financing. sba.gov/content/borrowing-money

•Identifyspecialfundingavailabletoveterans. Use the SBA’s loans and grants tool to find the right financing for your small business and to guide you to programs for which you may be eligible. Also refer to the SBA loan snapshot provided on page 17 and note the special funding options exclusively available to veterans. sba.gov/loans-and-grants

•Projectrevenuesandexpensesandunderstandhowto

reasonably price your services. Revenues and expenditures must be realistically projected. Ask your CPA to review your projections to reduce the risk of overlooking important items. Also consider talking to other business owners in your industry. sba.gov/content/small-business-expenses-and-tax-deductions

12

Understand how to read financial statements. Understanding financial statements is essential to your success. Use the information provided by the SBA regarding the primary financial statements, and then ask your CPA if you have additional questions or need assistance in preparation. Your CPA can simplify complex information and help you understand what you need to know. sba.gov/content/financial-statements

Determine your business structure and related tax implications. Determine what type of business structure makes sense. This decision will have a direct impact on your operating efficiency, personal liability, taxes, and the reporting of your business income. Ask your CPA to help you choose the optimal structure for you and your small business. sba.gov/category/navigation-structure/starting-managing-business/ starting-business/establishing-business/incorporating-registering-you-0 irs.gov/businesses/small/article/0,,id=99336,00.html

Determine if your business will be eligible as a small business

defined by the government. You will need to validate your status as a small business to ensure you meet tax and loan obligations and incentives. Your CPA can assist you in making this determination. sba.gov/category/navigation-structure/starting-managing-business/ managing-business/running-business/size-standards

“Taxes are the dues that we pay for the privileges of membership in an organized society.”

— Franklin D. Roosevelt

13

Make certain that you comply with business laws and

regulations and consider your options regarding insurance. Be aware of the business laws and regulations that will affect your small business and make sure that you are in compliance. Consider engaging an attorney to confirm your compliance with all city, state and federal business requirements and ask your CPA for legal references and recommendations. Use the SBA’s permit me tool to get a beginning list of federal, state and local permits, licenses and registrations that you will need to operate your small business. Also, be sure to understand your options regarding insurance and what you need to adequately protect you and your small business. sba.gov/category/navigation-structure/starting-managing- business/starting-business/business-law-regulations

sba.gov/licenses-and-permits

“The citizens of the United States are both law-respecting and law-abiding people, not easily

swerved from the path of patriotism and honor.”

— William McKinley

14

SeekoutotherprofessionalresourcesinadditiontoyourCPA.

•Considernetworkingwithfellowbusinessowners.

•UtilizeSCORE’smentoringprogram.Thesevolunteermentorsoffer small business entrepreneurs confidential counseling services at no charge. SCORE also offers workshops, events, resources, templates and tools to assist entrepreneurs. SCORE is excited about this initiative and stands ready to answer the call of helping veterans transition into life as entrepreneurs. score.org

•TheVeterans’BusinessOutreachCenter(VBOC)isaninaugural educational partner for this new initiative. Take advantage of all administration small business programs for veterans, service-disabled veterans, reserve component members and their dependents. Through their support, all 16 VBOCs will offer these programs and services to veterans. sba.gov/about-offices-content/1/2985

•UsetheWomen’sBusinessCentersdesignedforwomenwhostill face obstacles in the business world with assistance in starting and growing their small businesses. awbc.biz

•TurntotheSmallBusinessDevelopmentCentersforamyriadof useful resources to assist current and prospective small business owners. asbdc-us.org

•ConnectwithyourstateandlocalorganizationsthroughSBA District Offices and get involved. sba.gov/about-offices-list/2

“America just works better when more people have a chance to live their dreams.”

— William J. Clinton

15

Make other necessary administrative decisions. Name your business. Develop an organization chart. Plan your accounting system. Determine your billing, collection and credit policies and fee structures. Open a separate bank account. Obtain a tax ID number. Your CPA can offer additional guidance and assistance and can provide you with required administrative forms.

Prepareawrittenbusinessplanthatwillwork. Once you have completed the previous steps, you are ready to develop a formal business plan. Define your set of business goals, the reasons why they are believed attainable, and the many components that will contribute to you accomplishing those goals. The formal business plan is a detailed presentation that should outline all aspects of your small business. There is not a fixed content, rather the ideas and format of the business plan should be determined by your goals and audience. A solid business plan is often required to receive financing. Your CPA can assist you in translating a great idea into a clear, well-designed and powerful business plan. sba.gov/content/templates-writing-business-plan score.org/resources/business-plan-startup-business

“Efforts and courage are not enough without purpose and direction.”

— John F. Kennedy

16

SBA Loan SnapshotThe SBA offers numerous loan programs to

assist small businesses. It is important to

note, however, that the SBA is a guarantor

of commercial loans provided by banks and

does not offer the actual funds to assist small

businesses. Startups and young businesses

without a sustained history of financial

performance may find an SBA-guaranteed

loan especially attractive. These loans are

useful for businesses without sufficient

collateral and provide access to capital

where traditional commercial loans may

not be available. Review the SBA loan

snapshot to evaluate which loans may best

meet your needs.

17

OLoans specifically designated for veterans * Express Loan (application response will be given within 36 hours)

LoanPrograms

Basic 7(a)Loan

Program

CertifiedDevelopment

Company(CDC)

504 LoanProgram

MicroloanProgram

Military Reservist Economic Injury

Disaster LoanO

PatriotExpressO*

SBAExpress*

Small Loan Advantage

Community Advantage

Provides expedited loan procedures to businesses that are 51% or more owned/controlled by veterans or members of the military community. Eligible com-munity members include vets, service-disabled vets, Reserve and National Guard members, active service members eligible for Transition Assistance Programs, spouses of the above, spouses of any active service member, and widowed spouses of a service member who died during service or of a veteran who died from a service connected disability. Borrowers must meet standard SBA 7(a) loan eligibility.

Provides funds to eligible borrowers in an accelerated turnaround time.

Provides capital for small businesses and entrepreneurs in underserved communities.

Pilot initiative to provide capital for small businesses and entrepreneurs in underserved communities.

Provides growing businesses with long-term,fixed-rate financing to acquire major fixed assetsfor expansion or modernization. The businessmust be operated for profit and fall within thesize standards set by the SBA.

Provides very small, short-term loans to startup, newly established or growing small businesses.SBA makes funds available to nonprofit community based lenders which, in turn, make loans to eligible borrowers. In addition, the microlender will providebusiness counseling assistance to borrowers.

Provides funds to eligible small businesses to meet ordinary and necessary operating expenses that could have been met, but are unable to meet, because an essential employee was “called-up” to active duty in their role as a military reservist. The potential borrower can begin application prior to activation and can apply for up to one year after demobilization of the owner or essential employee.

Startup costs; equipment, business-occupied real estate purchases & inventory; working capital; managing your business; expansion; preparation for the possibility of deployment; setup to sell goods & services to the government; recovery from declared disasters

Purchase of land, buildings, equipment, machinery,furniture, fixtures, supplies,materials, & an existingbusiness; long & short termworking capital; financingagainst existing inventory;refinancing of existingbusiness indebtedness

Purchase of land (includingexisting buildings), improvements(including grading, street improvements, utilities, parking lots, & landscaping), & long term machinery & equipment; construction of new facilities or modernizing, renovating &converting existing facilities

Working capital; purchase of inventory, supplies, furniture, fixtures, machinery, & equipment

Working capital needed to pay necessary obligations as they mature until operations return to normal after the essential employee is released fromactive military duty

2.25-4.75(maximum) over prime

Negotiable

Negotiable

Negotiable

3

8-13

4

7

7

Negotiable

Negotiable

20

6

30

500,000

350,000

350,000

250,000

5.5M

50,000

2M

LoanTypes

Description& Eligibility

RequiredUse of Loan

InterestRate (%)

Maximum Loan Term

(Years)

MaximumAmount

($)

SBA LOAN SNAPSHOT

“The privilege of creating and issuing money is not only the supreme prerogative of Government, but it is the Government’s greatest creative opportunity.”

— Abraham Lincoln

18

What you need to apply: Minimum of three years of business (if applicable) and personal tax

returns for each owner with an ownership stake of 20% or more Current business (if applicable) and personal financial statements

with notes Resumes on borrowers and key managers A well-constructed business plan that includes a clear outline

of capital requirements Cash budget, assumptions and projections Collateral to the extent that is available

Landing the loan: 1 Review applicable SBA loans and loan documentation with your CPA and visit sba.gov if you have additional questions about the loan application process

2 Determine financial institutions that will provide SBA loans

3 Make an appointment with a commercial loan officer

4 Sell the bank on the viability of your proposal

Rehearse before the meeting. Educate your banker on the product or service for which you need funding. Be proactive and provide as much information as possible. Give comfort to your banker in the fact that your project has been thoroughly researched. Show confidence in your numbers and projections. Demonstrate your willingness for help. Tell your banker that you have reached out to seek outside financial advice and have invested in a CPA to show that you are not afraid to ask for advice and want to use every tool to succeed.

5 The bank will approve the underwriting and ensure that all SBA requirements are met

6 The information will be sent to the SBA for review

7 The SBA will approve and disburse funds as soon as possible

19

It is important to understand the many

advantages in establishing a

relationship with your CPA beyond

these few free hours of financial advice.

For many small business pioneers,

getting started can be the most difficult

challenge. Part of the rich value

provided by your CPA is their ability to

turn the overwhelming into the

digestible and actionable. After

business introduction, a CPA continues

to serve as a most trusted business

advisor and is there to guide you into a

successful future by advising on all

facets of your small business.

Looking Forward

20

A CPA is substantiated by stringent educational and professional requirements. CPAs complete more than 150 hours of intense training and a rigorous, four-section examination. They must adhere to strict state licensing guidelines that distinguish them from other accountants. Members of the American Institute of Certified Public Accountants (AICPA) also must abide by a code of professional ethics as well as undergo peer reviews that assure their work meets the highest professional standards.

A CPA’s broad business knowledge and financial expertise make them a valuable, trusted adviser for financial and tax planning, business valuation, accounting services and setting and meeting your business-growth goals. A CPA is one asset you cannot afford to do without as you plan, run and grow your small business. Although not all CPAs can offer all of the services mentioned above, each CPA or CPA firm offers a different mix of services.

Your choice to partner with a CPA on this journey is an invaluable decision and will prove to be very beneficial to you and your small business.

“I not only use all the brains that I have, but all that I can borrow.”

— Woodrow Wilson

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VeteranFast Launch Initiative

12176-830

DevelopedcollaborativelybetweenPCPSandSCORE.

ThePrivateCompaniesPracticeSection(PCPS) is a membership section of the AICPA comprised

of public accounting firms that provides a rich array of valuable targeted tools, resources and

publications for firms of all sizes in the area of practice management. PCPS advocates for the

success of small- and medium-sized CPA firms with standard setters and offers a venue where they

can harness business opportunities and overcome challenges.

SCORE is a not-for-profit association dedicated to educating entrepreneurs and helping small

businesses start, grow and succeed nationwide. SCORE is a resource partner with the U.S. Small

Business Administration (SBA), and has been mentoring small business owners for more than

40 years. SCORE has a valuable network of more than 13,000 volunteers who offer small

business entrepreneurs confidential business counseling services at no charge.

T: 800.272.3476 | E:PCPS@aicpa.org | W:aicpa.org/PCPS

Copyright © 2012 American Institute of CPAs