Main Street Manager - Vacant
209 East Lincoln Highway
Coatesville, PA 19320
Phone: 610-380-7045
Fax: 610-380-7048
Office Hours: Monday - Friday 9:00 - 5:00

Please direct any questions about this resource guide or regarding small business assistance resources available in Coatesville to:

City of Coatesville Economic and Community Development Department One City Hall Place
Coatesville, PA 19320
Telephone: (610) 384-0300
Fax: (610) 384-3612
E-mail: ecdv@coatesville.org
Staff Contacts:

Ruthann Russell, Administrative Assistant (610) 384-0300 ext 3175


Portions of the following section were derived from U. S. Small Business Administration documents.

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There is no way to eliminate all the risks associated with starting a small business. However, you can improve your chances of success with good planning and preparation. A good starting place is to evaluate your strengths and weaknesses as the owner and manager of a small business. Carefully consider each of the following questions:


Are you a self-starter?
It will be up to you -- not someone else telling you -- to develop projects, organize your time, and follow through on details.

ow well do you get along with different personalities?
Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants or consultants. Can you deal with a demanding client, an unreliable vendor or indifferent staff person in the best interest of your business and still maintain workable relationships with all concerned?

How good are you at making decisions?
Small business owners are required to make decisions constantly, often quickly, under pressure and independently. Can you say no diplomatically to others when decisions reached are not in their best interest?

Do you have the physical and emotional stamina to run a business?
Business ownership can be challenging, fun and exciting when the business is running well. Can you accept long working days, six or seven days a week when your business requires it?

How well do you handle time management?
The usual forty hour week, eight hour day, Monday through Friday schedule does not apply to today's successful businesses. Example, retailing in many cases require Saturday/Sunday work when customers are off work. Can you and your family manage this factor?

How well do you plan and organize?
Research indicates that most (80%) of business failures could have been avoided through better planning. Good organization of finances, inventory, production, schedules can help alleviate pitfalls that are encountered in business startups and established businesses.

What is your 'RC Factor'?
"Change" in our society is an accepted way of life, there is no real progress without some kind of change. Business ownership requires a minimum "Resistance-to-change" attitude, in most cases it, (change), and may be the key to survival of a business. How do you accept change when having to make a decision you do not totally agree with?

Is your drive strong enough to maintain your motivation?
Running a business can be stressful at times. Some business owners feel frustrated by having to carry all the commitments and responsibilities of a business without any outside help. Desire and the motivation to make a business succeed can help overcome slowdowns as well as periods of prolonged frustration and stress. Do you have a positive attitude for success at all times?

How do you handle competition?
You must maintain a competitive edge over your competitors at all costs knowing who they are, where they are, how long they have been there, and who their customers are. Can you cope and handle "Competitive Heat"?

How will the business affect my family?
The first years of a business start-up can be difficult on family life. The strain of an unsupportive family may be hard to balance against the demands of starting/running a business. There also may be some financial considerations that must be accepted until the business turns profitable, which could take months or years. You and the family may have to accept a lower style of living and/or place some family assets at risk in the start-up/expansions of a business venture. Are you and your family in agreement of the facts that must be faced with the prospect of starting a business?

ON THE UPSIDE
It's true, there are a lot of reasons not to start your own business. But for the right person, the advantages of business ownership are as follows:

You get to be your own boss.
Hard work and long hours directly benefit you, rather than increasing profits for someone else.
Earning and growth potential are far less limited.
A new venture is exciting.
Running a business will provide endless variety and challenge and won't settle into a dull routine.


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Developing a business plan is widely considered to be the most important thing you do before going into business. For a startup, the business plan is an assessment tool. As you work your way through all the points of the business plan, you will have to continually reaffirm the viability of your business idea. As you grow, it will help you keep track of details you can no longer keep in your head.

It is the blueprint or road map for your business. A thoroughly researched and well-thought-out business plan will clarify your goals, focus your energy, give direction to your work and help you gauge your progress.

It is a tool for raising capital. A good business plan is essential if you plan to seek money. To get a loan or attract investors, you will need to present a cohesive picture of your business, the management team, why it will succeed and how you intend to repay the bank or investors.

The Format
There is no magic formula. In fact, a written plan isn't even an absolute requirement unless you plan to apply for a loan. However, it's important to understand the concepts of business planning; writing an outline may help you avoid overlooking important points. The following questions should be helpful in the development of your Business Plan.

3.1. NAME OF FIRM

3.2. STATE THE BUSINESS' LEGAL NAME
Owner or Owner-To-Be
State owner(s) name(s) and address(es), as well as the form and percent of ownership.

3.3. INFORMATION ON THE BUSINESS

3.3.1. Type of Business and Product or Service
State the general and specific nature of the business (i.e., general - energy; specific - oil, solar, wind; general - food; specific - restaurant, catering, farming, ice cream parlor, and bakery).
State the type of business (manufacturing, service, construction, wholesale, retail, other).
State the company's goals and objectives.
Describe your products and/or services. State who buys the product/service and who the final users are (briefly here, because you will be discussing your customers very thoroughly under Market Analysis).
Describe how the product/services are sold to customers (walk-in stores, sales representatives, mail order catalogs, telephone orders, etc).
Comment on the quality of product/service.
Estimate average price of product/service.

3.3.2 History
If new, say so. If existing, discuss age of business, prior owners, how accused and length of time operated by you, image or reputation, number of employees, last year's sales volume and profit and any significant events that have affected the company's development.

3.3.3 Location
Give addresses and description of areas and building.
State whether rented, leased or owned. If rented or leased, state from whom and under what condition.
Is the location a good one that is convenient to customers?
State business hours.
State size (square footage).

3.3.4. Personnel
For the present and future, state-number of employees, type of labor (skilled, unskilled, etc.), sources of labor, timing of hiring (or layoffs).
Comment on the quality of the staff.

3.3.5. Economic/Accounting
Describe how this business makes money.
State how prices are or will be determined and by whom.

3.3.6. Inventory, Supplies. Suppliers and Equipment
Describe what inventory, raw materials and/or supplies this business uses (initial and continuing).
List your suppliers - name, address, type and percent of supplies furnished and length of time you have been buying from each, reliability and frequency of purchase.
How easy or difficult is it to get necessary supplies? If it is difficult, how will you deal with potential or actual shortages?
Are the prices of your supplies steady or fluctuating? If fluctuating, how do you deal with changing costs?
List the equipment used by the business and comment on its condition. If the equipment has been appraised, include values and state who did the appraisal.

3.3.7. Legal
State form of business (sole proprietorship, partnership, corporation) and status (already formed or in process of formation).
State licensing requirements (type and licensing source) and status (not yet applied, applied and pending, obtained).
State zoning requirements and status (verified, rezoning).
State insurance requirements (type, source) and status.
Have building codes been complied with?
State any health code requirements.
Describe any other laws and regulations that affect the business.
Trademarks, patents, licenses, and copyrights should be checked for legality.

3.3.8. Future Plans
What are your plans for the future (maintain, expand, diversify, sell, etc).

3.4. MARKET ANALYSIS

3.4.1. Consumer (Market)
What is your market, or, who are your customers, (wholesalers, retailers, consumers, government, etc.)?
Why does this market NEED your product/services? (All markets are created on the basis of NEED). One product/service often satisfies several needs.
How long will this market need your product/service? Is your product/service a fad or continuing need; being phased out or created by new technology?
List the characteristics of your average customer: Age, location (market area), average income/sales, sex, lifestyle (family or single), working and other important information. The more you understand about your market, the better you can sell to it.
What do customers like and dislike about your product/service or business?
Estimate the size of the market (in terms of number of customers).
Estimate how much the total market will spend on this or similar products/services in the next year.

3.4.2. Environment
Discuss any environment factors (economic, legal, social or technological which affect your market or product/services. Environmental factors are those which have significant affects on your operation, but over which you have no control (i.e., county growth, rising energy prices, etc).

3.4.3. Competition
Discuss your competition: number of competitors (direct or indirect), type of company (i.e. product or service), location, age, reputation, size (sales or customers), market share, and marketing strategy.

3.4.4. Competitive Advantages and Disadvantages
Discuss how your product/service meets market needs and how you compare with the competition in terms of product/service features, location distribution, price and other.
Compare your estimates of the market's demand and the competition's supply.

3.4.5. Projections
Give your projections in terms of either the number of customers, items sold, or contracts obtained, etc.

3.5. MARKET STRATEGY

3.5.1. Sales Strategy
Present your marketing strategy. In other words, tell how you will get the edge on your competition and get customers. This is your ACTION PLAN to get business.
Your product/service will sell because one or more of the following is attractive: advertising, pricing (high, medium, or low), distribution system (limited, widespread, etc.), service, and promotion.

3.5.2. Promotion Strategy
Describe how you plan to promote your product/service. State how you will promote: advertising, direct mail, personal contacts, sponsoring events or other (word-of-mouth, trade associations, etc.)
If you plan to advertise, state what media you will use: radio, television, newspaper, magazine, telephone book yellow pages, and/or other (billboard, etc.).
Study why you consider the media you have chosen to be the most effective.
State the content of your promotion or advertising: what your product/service is, why it is attractive, business location, business hours, business phone number, and other. When you are designing your advertising, remember you are selling to satisfy someone's need. Refer back to your Market Analysis on need.

3.6. MANAGEMENT

Why have you chosen this type of business? For key management personnel, Include the following: resumes, personal financial statements, tax returns for the last three years, and personal family budget.

Describe prior experience that qualifies management to run this type of business. State why you feel you can run this business. State how much time management will devote to running this business. Discuss local contacts that may assist you in your business.

3.7. FINANCIAL

3.7.1. Sources and Uses
Describe the project to be financed.
State where the money to pay for the project will come from (sources) and show in detail how it will be used (uses). The most common uses are equipment, leasehold improvements, inventory, and working capital.

3.7.2. Statements
If business is an existing one, include business tax returns and financial statements for the last three years. Financial statements should include:

Balance Sheet
Income Statement
Accounts Receivable and Aging
Accounts Payable and Aging
Debt Schedule
Reconciliation of Net Worth

For both existing and new businesses, project the following financial statements for the next three years (monthly for 1st year, annually for 2nd and 3rd years):

Operation (or Income) Statement with
Explanation (sales, expenses, profit)
Cash Flow with Explanation

Note: For help in developing your business plan consult with the staff of the Kutztown Small Business Development Center located in the Main Street Coatesville Office at 610-380-7045.


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More than 80 percent of new entrepreneurs start their business without any commercial loans or debt financing. Although the U. S. Small Business Administration (SBA) does make some loans to start a business, they represent less than 20 percent of SBA's entire loan portfolio. Banks are also hesitant to make small (under $50,000) commercial loans. Lenders and investors prefer to finance a business with a track record and a plan for growth based on experience in the industry.

So if you're just starting out and need $25,000 to set up shop and fill your first orders, what sources are available?

Savings
Personal bank credit including credit cards and personal lines of credit
Friends
Family members
Investors
Investors
Home equity loans
Credit unions

Conventional lenders will require significant documentation, personal financial information, and evidence of collateral prior to considering a business loan.

The Kutztown University Small Business Development Center is able to assist certain businesses with business financing such as:

Loan Guaranty Program for Existing Businesses
Listing of most active regional Small Business Administration (SBA) lenders is available in from the Economic and Community Development Department.
Financing and Loan Packaging Referral Assistance for New and Existing Businesses

Kutztown University Small Business Development Center
209 East Lincoln Highway
Coatesville, PA 19320
Coatesville Office (610) 380-7045
Chester County Economic Development Office (610) 458-5700


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This section is a step-by-step guide to obtaining business permits in the City of Coatesville. Standard federal, State, County, and City regulatory requirements are included in this guide. City offices are open between 9:00 a.m. and 5:00 p.m., Monday through Friday. All businesses will not necessarily need all of the permits listed in this section. In many cases the permit applications can be applied for on parallel tracks.

5.1. CITY ZONING AND USE PERMITS
The City of Coatesville Zoning Ordinance governs where businesses may operate in the City. There are several distinct commercial and industrial districts, each with unique restrictions on the type of businesses that may operate within them. In addition, the City regulates home occupations. It is critical that potential new businesses check with the City of Coatesville Codes Department, One City Hall Place, Coatesville, PA 19320, Phone (610) 384-0300, about the zoning application process which they must follow. Some businesses will only require Planning approval (an over the counter procedure), while others will be required to go through environmental review and obtain a use permit (up to a 90 day process involving a public hearing). The codes office will also have available any zoning fee information with regard to your business.

5.2. STATE LICENSES
Many commercial operations, such as automotive dealers, building contractors, dry cleaners, barbers, etc., require a state license. For information, contact the Pennsylvania Department of State; Pennsylvania Department of Labor & Industry; Pennsylvania Department of Environmental Protection. The actual business you operate will determine which state department(s) you will need to contact. There is a penalty if licenses are not applied for in advance.

Businesses selling alcohol are required to obtain a permit from the Pennsylvania Liquor Control Board (PLCB) at www.lcb.state.pa.us or at the Eastern Regional Information Center – 610-940-1200.

Most professionals are also licensed by various state agencies. You are probably already aware of this requirement if you are a doctor, lawyer, accountant, real estate or insurance broker, teacher, etc. Contact the appropriate state agency if in doubt.

5.3. FEDERAL IDENTIFICATION NUMBER
All employers and most businesses are required to have a federal identification number. An application form can be obtained by calling the U. S. Internal Revenue Service, Phone (800) 829-1040. When your application has been processed, you will receive your Employer Identification Number, your Federal Tax Deposit slips and information about withholding taxes. This processing period takes approximately four weeks.

5.4. STATE SALES AND USE TAX PERMIT
Retail Businesses:

Under Pennsylvania Law you must register your business with the Pennsylvania Department of Revenue. If you a corporation or want to become incorporated you must also register with the Pennsylvania Department of State.

Manufacturer and Wholesale Businesses:

Under Pennsylvania Law there are a number of businesses that must obtain a license. Go the Pennsylvania PowerPort for more information.

5.5. STATE INSPECTIONS
The Pennsylvania Department of Labor and Industry is charged with inspecting certain requirements for businesses in Pennsylvania. Go to their web site for a complete listing of necessary inspections and licenses.

5.6. FICTITIOUS NAME STATEMENT
If you business name is a fictitious name you must register it with the Pennsylvania department of State. Forms can be found here.

5.7. CITY BUSINESS LICENSE
Apply at the City of Coatesville Finance Department, One City Hall Place, Coatesville, PA 19320. Phone (610) 384-0300 for a business license application. You must complete your application, demonstrate proof of a state license and/or Seller's permit, and pay the business license fee. Currently most retail, manufacturing, and service firms pay a fee. The fee for firms is calculated on the basis of gross receipts and depends on the type of business. The Finance Department will tell you when the fee must be paid and the cost, if any.

5.8. COUNTY ENVIRONMENTAL HEALTH PERMIT
Certain businesses which handle food (sale, preparation) must be approved by the Chester County Department of Health, 601 Westtown Road, Suite 290, West Chester, PA 19380 Phone (610)344-6225 or 1-(800)-692-1100. This approval is designed to ensure compliance with County sanitation codes. For more information on rules and regulations concerning food handling go to the Health Department’s web site.

5.9. CITY BUILDING PERMITS
Permits are required for building, plumbing, gas ventilating, signage, electrical repairs, construction, and alterations. Permits must be obtained before work begins. Fees depend on the type and scope of work. Apply at the City of Coatesville Codes Department, One City Hall Place, Coatesville, PA 19320, Phone (610) 384-0300. You can check out the codes department on-line and can get applications by going to http://www.coatesville.org and looking under the Codes department heading for applications.

5.10. CITY HAZARDOUS MATERIALS PERMITS
If your business involves the production and/or storage of hazardous materials, contact the City of Coatesville Codes Department One City Hall Place, Coatesville, PA 19320, Phone (610) 384-0300 to determine the appropriate City permits needed.

5.11. STATE WORKPLACE SAFETY PLAN
You can find all of Pennsylvania’s rules and regulations concerning work places at http://www.dli.state.pa.us/


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The following section describes the process for obtaining utility service within the City of Coatesville.

6.1. WATER
Pennsylvania America Water Company, Coatesville, PA 19320
Phone 1- (800) 565-7292.
Upon opening a new business, call several days in advance. They will need your phone number and address.
http://www.pawc.com/

6.2. GAS & ELECTRICITY
Philadelphia Electric Company (PECO) 1-(800) 494-4000. Call several days in advance. They will need your address.
http://www.peco.com/

6.3. TELEPHONE SERVICE
Call Verizon at 1-(800) 479-1919. Information about new business service is also outlined in the front of the Coatesville phone book.
http://www.verizon.com/

6.4. REFUSE COLLECTION
New businesses may request a specific level of refuse service (e.g. can, dumpster) necessary for their business operation by contacting Charles Blosenski at (610) 942-2480.
http://www.charlesblosenski.com


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This section provides information about assistance resources currently available to prospective or existing businesses. Additional information is available at http://www.coatesville.org

7.1. SEMINARS
A listing of planned business seminars in the region is available from:

Main Street Manager
209 East Lincoln Highway
Coatesville, PA 19320
(610) 380-7045
http://www.coatesville.org

7.2. BUSINESS PLANNING
Business Publications.

The Main Street Office has a limited number of business publications available for borrowing. Stop by the Main Street Office for the current selections and to determine availability.

Franchising Opportunities

A number of web sites are devoted to franchising opportunities. Listed below are a few you may want to explore. The City of Coatesville does not promote any particular franchise but encourages any investor to look carefully into each opportunity before investing.

http://www.franchiseopportunities.com/

http://www.franchise-zone.com/

http://www.franchisedirect.com/

http://www.businessnation.com/franchises/pages

http://www.entrepreneur.com/

U. S. Small Business Administration (SBA) Publications
P. O. Box 30
Denver, CO 80201-0030
(202) 653-6654
http://www.sba.gov

Business Consulting Assistance

Kutztown University Small Business Development Center
209 East Lincoln Highway
Coatesville, PA 19320
(610) 380-7045
http://www.kutztownsbdc.org

City of Coatesville Economic and Community Development Department
One City Hall Place
Coatesville, PA 19320
(610) 384-0300
http://www.coatesville.org

Main Street Office
City of Coatesville
209 East Lincoln Highway
Coatesville, PA 19320
610-380-7045
http://www.coatesville.org

College Business Courses
The following Colleges and Universities are located within a short driving distance from the City of Coatesville. In addition to the institutions listed below there are numerous colleges and universities located throughout southeastern Pennsylvania.

Business-Related Computer Courses and Employee Training
CareerLink
250 Harmony Street
Coatesville, PA 19320
610-384-9393
http://www.pacareerlink.state.pa.us/homeframe.asp

Assistance with compliance with Americans with Disabilities Act (ADA)
Chester County Disability Services
749 Springdale Drive
Exton, PA 19341
1-(800) 559-2237
http://www.ccdisability.org/links.htm

7.3. BUSINESS ORGANIZATIONS

Western Chester County Chamber of Commerce
50 South First Avenue
Coatesville, PA 19320
(610) 384-9550
http://www.westernchestercounty.com/

Chester County Chamber of Commerce for Business and Industry
1600 Paoli Pike
Malvern, Pa 19355
(610) 725-9100
http://www.cccbi.org/AboutChester.asp

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This document was published during November of 2004 by the City of Coatesville Economic and Community Development Department and is updated periodically. While an attempt has been made to identify many of the federal, state and local requirements that apply to the operation of business, we cannot guarantee that this compilation is complete or accurate. This publication does not relieve individuals of the duty to ascertain what laws apply to their activities or the manner in which they must comply with those laws.

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