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Information For New & Existing Business
Contacts
Business Ownership Considerations
Business Planning
Financing Your Business
Permit and License Requirements
Utilities
Assistance Resources
Contacts
Please direct any questions about this resource guide
or regarding small business assistance resources available
in Vallejo to the Economic Development Division.
Business Ownership Considerations
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, follow through on details.
How 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), 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.
Portions of this section were derived from U. S. Small Business
Administration documents. Global Business Services (Vallejo, CA) provided
information used in this section.
Business Planning
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.
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.
Name of Firm
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.
Information on the Business
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, 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 is 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.
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.
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).
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.
Economic/Accounting
Describe how this business makes money.
State how prices are or will be determined and by whom.
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.
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.
Future Plans
What are your plans for the future (maintain, expand, diversify, sell, etc).
Market Analysis
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.
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).
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, marketing strategy.
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.
Projections
Give your projections in terms of either the number of customers, items sold,
or contracts obtained, etc.
Market Strategy
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.
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.
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 who may assist you in your business.
Financial
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.
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
Financing Your Business
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 Northern California 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 Solano County 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 Solano and Napa County Small Business Administration (SBA) lenders is available in Economic Development
Division.
Financing
and Loan Packaging Referral Assistance for New and Existing Businesses
- Solano County Small Business Development Center
424 Executive Drive North, Suite C
Suisun, CA 94585
(707) 864-3382
Permit and License Requirements
This section is a step-by-step guide to obtaining business permits in the City of Vallejo.
Standard federal, State, County, and City regulatory requirements
are included in this guide. City offices are open between 8:30 a.m. and
5:15 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.
City Zoning and Use Permits
The Vallejo 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 Vallejo Planning Division, 555 Santa Clara Street, Second Floor, Vallejo, CA 94590, Phone
(707) 648-4326, about the zoning application process which they must follow. Some businesses will only require
Planning Division 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).
State Licenses
Many commercial operations, such as automotive dealers, building contractors, dry cleaners,
barbers, etc., require a state license. For information, contact the California Department of Consumer Affairs,
400 R Street, Suite 1040, Sacramento, CA 95814, Phone (916) 445-1254. There is a penalty if licenses are not applied
for in advance.
Businesses selling alcohol are required to obtain a permit from the California Department
of Alcohol and Beverage Control, 7677 Oakport Street, Suite 1020, Oakland, CA 94621, Phone (510) 639-0628. In most
cases, businesses selling alcohol will also be required to obtain a use permit from the City of Vallejo (see Section
A above).
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, etc. Contact
the appropriate state agency if in doubt.
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.
State Sales and Use Tax Permit
Retail Businesses:
Under the California Sales and Use Tax Law, a retail businessperson must obtain a valid
Seller's Permit in order to sell at retail value. With the permit, the merchant has the right to buy tangible personal
property for resale without paying sales or use tax to the vendor. To register as a seller, the proprietor, partner
or officer of a business must obtain a Seller's Permit number from the California Board of Equalization, 333 Sunset
Ave., Suite 330, Suisun, CA 94585 Phone (707) 428-2041, and must remit taxes to the Board collected from the consumer
at the time of sale. Normally the Board will require that the businessperson deposit a security payment or a sales
tax bond (usually obtained from your insurance broker) at the time of registration. The amount of security and
the tax return basis-monthly, quarterly, or annually, will depend on the credit standing and estimated gross sales
of the company.
Manufacturer and Wholesale Businesses:
A manufacturer or wholesaler who sells tangible property that will, in turn, be resold
to the retail consumer, must obtain a Resale Certificate (available from the California Board of Equalization,
333 Sunset Ave. Suite 330, Suisun, CA 94585 Phone (707) 428-2041), that includes a description of the purchaser's
business, property purchased for resale, purchaser's Seller's Permit number, and signature.
A use tax is levied in lieu of a sales tax on taxable merchandise purchased out of state,
or purchased tax free from an in-state retailer when it is used or stored by the business instead of being resold.
Additional information and copies of sales and use tax regulations that pertain to particular types of business
may be obtained from any office of the State Board of Equalization.
State Employer Registration Forms
Employers are required to register with the California Employment Development Department
within 15 days after becoming subject to the California personal income tax withholding provisions, the Unemployment
Insurance Code, or both. Registration forms are available at the California Employment Development Department,
421 Tennessee Street, Vallejo, CA 94590, Phone (707) 648-4020.
County Fictitious Name Statement
Every business that goes by a name other than its owner(s), or other than its name upon
incorporation, must file a fictitious name statement with the Clerk of Solano County. The purpose of the filing
is to allow the consumer to know with whom he/she is doing business. The minimum registration fee is $24.00. The
statement must be published once a week for four successive weeks in a newspaper of general circulation in the
area of business. For an application form and further information, contact the Solano County Tax Collector/County
Clerk, 675 Texas Street, Fairfield, CA 94533, Phone (707)784-7510.
City Business License
Apply at the City of Vallejo Code Enforcement/Business License Division, 555 Santa Clara
Street, Firt Floor, Vallejo, CA 94590, Phone (707) 648-4310 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 of $40.00 initially. The fee for firms is calculated
on the basis of gross receipts and depends on the type of business.
The business license must be approved by other City departments. The Planning, Building,
and Fire Prevention Divisions are the primary sign-off divisions. Staff in the Code Enforcement/Business License
Division can answer questions regarding the sign-offs (and associated inspection fees) necessary for different
types of businesses.
County Environmental Health
Permit
Certain businesses which handle food (sale, preparation) must be approved by the Solano
County Department of Environmental Management, 601 Texas Street, Fairfield, CA 94533, Phone (707) 421-6770. This
approval is designed to ensure compliance with County sanitation codes. Inspections are provided by the Environmental
Health Department within four weeks of the business license application. The inspection fee varies with the size
of the business.
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 public counter of the City of Vallejo Building Division, 555 Santa Clara Street, Second Floor,
Vallejo, CA 94590, Phone (707) 648-4375.
City Hazardous Materials Permits
If your business involves the production and/or storage of hazardous materials, contact
the City of Vallejo Fire Prevention Division, 703 Curtola Parkway, Vallejo, CA 94590, Phone (707) 648-4565 to determine
the appropriate City permits needed.
State Workplace Safety Plan
Recent state legislation (SB 198) requires businesses to prepare an Injury and Illness
Prevention Program. Information about this requirement can be obtained from the California Occupational Safety
and Health Administration (CAL OSHA) Consulting Service Division, 445 Fremont St., Suite 1200, San Francisco, CA
94105, Phone (415) 972-8500.
Utilities
The following section describes the process for obtaining utility service within the City of Vallejo.
Water
City of Vallejo Water Division, 555 Santa Clara Street, First Floor, Vallejo, CA 94590,
Phone (707) 648- 4345. Upon opening a new business, a deposit is required. The amount of the deposit is based on
the amount of consumption, and is approximately the average bill for two months. The deposit is determined by charging
you the same deposit for the usage of a similar type business.
Gas & Electricity
Pacific Gas & Electric Co (PG&E) (800) 743-5000. All new businesses are required
to pay a deposit, which is two times the highest average monthly bill for the site. After making payment on the
account for 12 consecutive months on a current basis, the deposit will be refunded.
Telephone Service
Pacific Bell, Phone (800) 794-4177. Information about new business service is also outlined
in the front of the Pacific Bell Vallejo/Benicia phone book.
Refuse Collection
New businesses may request a specific level of refuse service (e.g. can, dumpster) necessary
for their business operation by contacting Vallejo Garbage Service, 2021 Broadway, Vallejo, CA 94589, Phone (707)
552-3110. There is no deposit required and service is immediate.
Assistance Resources
This section provides information about assistance resources currently available to prospective or existing businesses.
Additional information is available at www.vallejobiz.com.
Seminars
A listing of planned business seminars in Vallejo is available from:
- Solano County Small Business Development Center
- 424 Executive Court North, Suite C
- Suisun, CA 94585
- (707) 864-3382
Business Planning
Business Publications. Franchising Opportunities, and Business Software
- JFK Library - Reference Division
- 505 Santa Clara Street
- Vallejo, CA 94590
- (707) 553-5568
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- U. S. Small Business Administration (SBA) Publications
- P. O. Box 30
- Denver, CO 80201-0030
(202) 653-6654
Business Consulting Assistance
- Solano County Small Business Development Center
- 424 Executive Court North, Suite C
- Suisun, CA 94585
(707) 864-3382
Assistance for Prospective Women owned Businesses
- Women's Initiative for Self-Employment (WISE)
- 450 Mission Street, Suite 402
- San Francisco, CA 94105
(415) 247-9473
Site Location Assistance, Permit Process Assistance, Demographic and Economic Information
About Vallejo
- City of Vallejo Economic Development Division
555 Santa Clara Street, Third Floor
Vallejo, CA 94590
(707) 648-4444
College Business Courses
- Solano Community College - Admissions and Records
- 4000 Suisun Valley Road
- Suisun, CA 94585
(707) 864-7171
Business-related Computer Courses and Employee Training
- Solano County Private Industry Council (PIC)
- 320 Campus Lane
- Suisun, CA 94585
(707) 864-3370
Assistance with compliance with Americans with Disabilities Act (ADA)
Legal and technical information available from:
American Foundation for the Blind (AFB) (202) 223-0101
Business Organizations
Vallejo
Chamber of Commerce (707) 644-5551
Hispanic
Chamber of Commerce of Solano/Napa (Carlos Solorzano) (707) 644-4218
Solano County
Black Chamber of Commerce (Kenneth Jackson) (707) 643-4873
Vallejo
Filipino Chamber of Commerce (Hermie Sunga) (707) 644-3000
Downtown
Association of Vallejo (707) 644-6201
Vallejo
Convention and Visitors Bureau (707) 642-3653
Central
Core Restoration Corporation (707) 557-6762
Initially printed December 1992 by City of Vallejo Economic Development Division. While
we have attempted to identify many of the various 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
people of the duty to ascertain what laws apply to their activities or the manner in which they must comply with
those laws.
Partially Updated September, 1999
Back...
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Economic Development Division
555 Santa Clara Street
Vallejo, California 94590
Telephone: (707) 648-4444
Fax: (707) 648-4499
email: econdev@ci.vallejo.ca.us
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