What is a Small Business? We must get a little bit "legal" with you here because it is important that you be able to determine if you qualify as a small business for purposes of loans, etc. Bear with us... The following is extracted from "THE SBA ACT" - when in doubt go to the whole thing.  The "Administrator" is mentioned a few times - for clarification, that is referring to the SBA Administrator. "Sec. 3(a) (1) For the purposes of this Act, a small-business concern, including but not limited to enterprises that are engaged in the business of production of food and fiber, ranching and raising of livestock, aquaculture, and all other farming and agricultural related industries, shall be deemed to be one which is independently owned and operated and which is not dominant in its field of operation: Provided, That notwithstanding any other provision of law, an agricultural enterprise shall be deemed to be a small business concern if it (including its affiliates) has annual receipts not in excess of $500,000.  ESTABLISHMENT OF SIZE STANDARDS.--     (A) IN GENERAL.-- In addition to the criteria specified in paragraph (1), the     Administrator may specify detailed definitions or standards by which a business     concern may be determined to be a small business concern for the purposes of this     Act or any other Act.     (B) ADDITIONAL CRITERIA.-- The standards described in paragraph (1) may utilize     number of employees, dollar volume of business, net worth, net income, a     combination thereof, or other appropriate factors.     (C) REQUIREMENTS.--Unless specifically authorized by statute, no Federal     department or agency may prescribe a size standard for categorizing a business     concern as a small business concern, unless such proposed size standard--         (i) is proposed after an opportunity for public notice and comment;         (ii) provides for determining--         (I) the size of a manufacturing concern as measured by the         manufacturing concern's average employment based upon         employment during each of the manufacturing concern's pay periods         for the preceding 12 months;         (II) the size of a business concern providing services on the basis of         the annual average gross receipts of the business concern over a         period of not less than 3 years;         (III) the size of other business concerns on the basis of data over a         period of not less than 3 years; or   FIRST STEPS - HOW TO START A SMALL BUSINESS Starting and managing a business takes motivation, desire and talent. It also takes research and planning. Like a chess game, success in small business starts with decisive and correct opening moves. And although initial mistakes are not fatal, it takes skill, discipline and hard work to regain the advantage. To increase your chance for success, take the time up front to explore and evaluate your business and personal goals. Then use this information to build a comprehensive and well-thought-out business plan that will help you reach these goals. The process of developing a business plan will help you think through some important issues that you may not have considered yet. Your plan will become a valuable tool as you set out to raise money for your business. It should also provide milestones to gauge your success. 1.    Getting Started         Before starting out, list your reasons for wanting to go into business. Some of the         most common reasons for starting a business are:         You want to be your own boss.         You want financial independence.         You want creative freedom.         You want to fully use your skills and knowledge. 2.    Next you need to determine what business is "right for you." Ask yourself these         questions:         What do I like to do with my time?         What technical skills have I learned or developed?         What do others say I am good at?         Will I have the support of my family?         How much time do I have to run a successful business?         Do I have any hobbies or interests that are marketable? 3.    Then you should identify the niche your business will fill. Conduct the necessary         research to answer these questions:         What business am I interested in starting?         What services or products will I sell?         Is my idea practical, and will it fill a need?         What is my competition?         What is my business's advantage over existing firms?         Can I deliver a better quality service?         Can I create a demand for my business? 4.    The final step before developing your plan is the pre-business checklist. You         should answer these questions:         What skills and experience do I bring to the business?         What will be my legal structure?         How will my company's business records be maintained?         What insurance coverage will be needed?         What equipment or supplies will I need?         How will I compensate myself?         What are my resources?         What financing will I need?         Where will my business be located?         What will I name my business? Your answers will help you create a focused, well-researched business plan. that should serve as a blueprint. It should detail how the business will be operated, managed and capitalized. One of the most important cornerstones of starting a business is the business plan. Once you have completed your business plan, review it with a friend or business associate. When you feel comfortable with the content and structure, make an appointment to review and discuss it with your banker. The business plan is a flexible document that should change as your business grows.