Starting Your Business
Page Title
Starting Your Business in the Bowling Green Area
Table of Contents
- The Business Climate in Bowling Green and Warren County
- Starting Your Business
- Identifying and Developing Your Idea
- Developing a Business Plan
- Financing Your Business
- Business Licenses And Authorizations
- Additional Resources
"All information herein is deemed the sole property of the Bowling Green Area Chamber of Commerce. Any duplication without the written consent of the Bowling Green Area Chamber of Commerce is strictly prohibited."
I. THE BUSINESS CLIMATE IN THE BOWLING GREEN AREA
Bowling Green and Warren County have been noted for an excellent business climate. Numerous companies have chosen to locate in the Bowling Green area. These new businesses and industries have a profound influence on the area's economic base. More than 9,500 people are employed in industrial jobs throughout the surrounding area. The populace from surrounding counties in southcentral Kentucky and northern Tennessee make Bowling Green a regional shopping center.
The leaders of Bowling Green and Warren County are interested in new businesses and the opportunities they create for our community. You will find each of them personable and willing to assist you in your efforts to establish a new business. The Bowling Green Area Chamber of Commerce is willing to work side by side with you in the development of your project.
Should you encounter any problems in building your new business, be confident that the Chamber of Commerce will make every effort to assist you. We have long recognized that the growth and success of the Bowling Green area has been through the creation of new businesses just like yours. You will find your efforts welcomed and appreciated, and every endeavor will be made to support you in any way possible.
II. STARTING YOUR BUSINESS
Each year thousands of new businesses join the already nationally known firms that exist in the Bowling Green-Warren County area. Why? Because the community has a lot to offer aspiring businesses. You can find assistance just about every step of the way to success, from developing your idea to making sure you abide by the necessary regulations. The area has facilities and real estate that can accommodate just about any venture.
There are many benefits to owning your own business. You get to be the boss and make your own decisions and express your own ideas. You also have the opportunity to be a contributor to the local economy, and an instrumental part of the community. As a result of all this work, you get to reap the profits. Yet, no one should enter a new business venture without realizing the risks at stake. More than half of all businesses fail within their first five years of operation. Survival is difficult in today's economy. Small businesses do not always have the necessary capital for the unsteady economy and uncertain market sources. If you are not kept well informed, all of your great ideas and hard work can be easily lost.
Managing one's own business can be a financially and personally rewarding experience for an individual determined enough to pass the test. A person with stamina, creativity and maturity and one who is willing to take risks and make sacrifices can find making a go of a struggling business a challenge with many rewards.
One of the first decisions you will need to make in starting your business is whether you should go it alone or consider franchise opportunities available in the industry in which you are interested. Franchises are now available for products and services ranging from hamburgers to maid services.
Buying a franchise enables a person to start a business with a considerable help and instruction from the franchiser. As a result, franchises generally have a better success rate than do independently owned businesses. The advantages include being able to use an established company's name, the right to sell its products and services, benefiting from the research and development of the franchise, and to receive the training and marketing assistance most franchises offer. Disadvantages include paying franchise fees, ongoing royalties, and possible higher markups on products the franchiser sells, and being limited in some ways on how you operate your business.
Should you decide that franchising is for you, you will still need to know many of the things discussed in this brochure. In addition, you should "do your homework" on choosing the right franchise to purchase. This includes researching the industry of which a particular franchise is a part of the franchise company itself. Visit the corporate staff, talk with other franchisees, check out the territory you are buying, negotiate points in the contract that confuse or disturb you and be realistic in your financial goals.
Before making a final commitment, potential business owners must ask themselves two questions.
Do I have what it takes to manage and own a small business? I have to realize that I will be my most valuable employee. Therefore, I have to be aware of my own weaknesses and strengths. Am I a self starter? Do I deal with people very well? Am I decisive? Can I be objective? Can I hang in there when the going gets tough?
What business should I choose? It would probably be best if I chose something in which I am interested or skilled. It would also be a good idea to consult with local professionals and businesses. Matching my knowledge with the local market will increase my chance of success.
III. IDENTIFYING AND DEVELOPING YOUR IDEA
It is very important that you clearly identify what product or service you wish to develop. If you obtain good, objective advice early in the process of conceptualizing your business, you will have a better chance of owning a business that is successful.
A. Developing a Strategic Team
In the complicated and serious process of starting a business, there are certain questions that must be answered. Then certain steps must be taken. Although some are very elementary, the most important are often complex and difficult and require the expertise and advice of specialists. When developing ideas for your business, it is important to locate and follow the advice of people who can form a helpful team, which is dedicated to your needs. Consider locating the following professionals for your core development team:
Attorney
An attorney can assist you in choosing the type of business structure that fits your needs, whether it is a partnership or corporation. He or she can also advise you in the following proper procedures in Bowling Green and Warren County, making sure papers are properly filed with the city, county, and state governments; interpreting contracts and leases; arbitrating disputes within the business and for the business against others; and in consulting when the owner is unsure of legal rights and obligations.
An attorney may be located through friends, other business owners, or by the referral services of the Bowling Green- Warren County Bar Association. The initial consultation implies no further obligation.
Accountant
A financial consultant can establish a bookkeeping system that is easy for you to use and for an accountant to work with at audit or tax time. The accountant can help develop ways for you to control cash and handle funds, and recommend business equipment and materials.
You can locate a qualified accountant through the CPA Professional Association, or your attorney may know an accountant who will be willing to work with small businesses. You should confer with several accountants and check their experience and references before deciding on one. Fees are often based on hourly rates and vary with the complexity and extent of the service. Fees should be negotiated in advance.
Insurance Agent
An insurance agent will evaluate your needs and offer packages to protect your specific type of business. The agent may be either an independent (dealing with several insurance companies) or a direct writer (employed by and writing policies for one company).
As a business operator you should talk with several agents, compare the coverages and costs of the services they offer, and select the program best suited to your company's needs - comprehensively and economically.
Agents require complete data on business operations. You must keep your agent informed of any changes that affect your insurance protection. Agents and brokers are listed in the Bowling Green- Warren County Yellow Pages or can be recommended by your attorney or financial consultant.
Commercial Lending Officer
A banker can provide loans, set up the business' checking and savings account, and offer financial guidance. In addition, banks offer computerized accounting services, investment and trust management services, pension and profit-sharing plans, and credit card memberships.
A banker might be selected where you have a personal bank account or, for convenience, near the proposed business location. You should choose a bank that offers a full range of services that will be needed as the company grows. It is important to establish a continuing relationship with your banker and to keep the bank informed concerning the progress of the business.
Management and Marketing Consultant
A management and marketing consultant can help you determine and handle the many facets of starting your business. Product determination, advertising, inventory, security, hiring, and pricing are some of the hidden details that may have been forgotten. The consultant has access to other sources of information and contacts with attorneys, accountants, and advertising agencies.
Consultants are listed in the Yellow Pages or can be found by talking to friends and others in the business. Consultants generally charge on an hourly, daily, or weekly basis, or on a monthly retainer.
B. Support Services
In Bowling Green and Warren County, there are a number of specific sources of assistance that exist to serve you as you go through the various stages of identifying and developing an idea for a new business. Among these are the following organizations:
Bowling Green Area Chamber of Commerce
The Chamber of Commerce was incorporated in 1935. As one of the few accredited Chambers in the country, the Bowling Green- Warren County Chamber of Commerce has and continues to demonstrate its effectiveness in serving the growth and development needs of the community. The Chamber, through its daily staff activities and its specific member services, is committed to the needs of the small business community. The Entrepreneurship Committee has established entrepreneur round tables and entrepreneur mentoring programs.
Bowling Green Area Chamber of Commerce
710 College Street
P.O. Box 51
Bowling Green, Kentucky 42102
Phone: (270) 781-3200
Website: www.bgchamber.com
Small Business Development Center (SBDC)
This organization, which is locally operated by Western Kentucky University, is a member of the statewide SBDC network which is dedicated to providing you with confidential counseling and technical assistance on a comprehensive range of topics. Priority attention is given to those projects that can, through the services of the SBDC, contribute to the stability and growth of the Bowling Green Area small business sector. Inquiries by mail, telephone or e-mail are welcomed and appointments may be arranged for detailed discussions.
Small Business Development Center
2355 Nashville Rd.
Bowling Green, Kentucky 42101
Phone: (270) 745-1905
Website: www.wku.edu/dept/support/acadaffairs/continuinged
Western Kentucky University
The University offers a variety of opportunities for persons committed to operating a successful small business. The Small Business Development Center offers workshops and seminars for individuals interested in starting a business and has an individual that will meet with potential business owners to discuss business opportunities, funding and writing a business plan. Through the Institute for Economic Development assistance is offered, utilizing students, to conduct feasibility studies, customer surveys, and a variety of research opportunities to assist small businesses. In addition, faculty members with expertise in a variety of fields are available for consultation.
Small Business Development Center
2355 Nashville Road
Bowling Green, Kentucky 42101
Phone: (270) 745-1905
Website: www.wku.edu/dept/support/acadaffiars/continuinged/
Carroll Knicely Institute for Economic Development
2355 Nashville Road
Bowling Green, KY 42101
Phone: (270) 745-1900
Website: www.wku.edu/dept/support/acadaffairs/continuinged/
Barren River Area Development District
This regional development district operates the Technology Assistance Program for the benefit of the district's ten counties. The purpose of the program is to promote the transfer of non-proprietary technical information as a useful industrial tool. This transfer is accomplished by an experienced engineer who provides analysis and recommendations to clients on a confidential basis regarding problems to be solved.
BRADD
177 Graham Ave.
Bowling Green, Kentucky 42101
Phone: (270) 781-2381
Website: www.bradd.org
Bowling Green Public Library
This municipally sponsored library facility effectively utilizes technology to provide you with a wide range of services. Featuring over 90,000 books, this facility also offers periodicals, newspapers, and specialized reference materials that are of value to you as a small business operator. The Bowling Green Public Library is fully integrated into a statewide network of libraries to retrieve specific works that you need but that may not be available locally.
Bowling Green Public Library
1225 State Street
Bowling Green, Kentucky 42101
Phone: (270) 781-4882
Website: bgpl.org
U.S. Small Business Administration (SBA)
The SBA is a federally funded agency established to protect and assist small businesses. Its mission is to stimulate and foster economic development of small businesses by providing numerous services in major program categories, including business development, financial assistance, contract assistance, and advocacy. Since the SBA sponsors the Small Business Development Centers and the SCORE program, persons seeking advice are advised to contact those two programs that are locally based. However, the district office of the SBA is willing to serve the needs of the Bowling Green Area community, particularly in other program areas.
Small Business Administration
600 Martin Luther King Place, room #188
Louisville, Kentucky 40202
Phone: (502) 582-5059
Website: www.sba.gov
IV. DEVELOPING A BUSINESS PLAN
A. Defining a Business Plan
Investors agree that a business plan is necessary to obtain funding for any business. A business plan precisely defines your business, identifies your goals and serves as your firm's resume. Its basic components include a current and proforma balance sheet, an income statement, and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your employees, suppliers and others about your operations and goals. A business plan needs to define your business in detail. It may seem silly to ask yourself, "What business am I really in?" Some business owners have failed, however, because they never answered that question. One shoe store owner realized that most of his income was received from repairing shoes while most of his expense was involved in the sale of new shoes. He finally decided he was in the repair business and discontinued the sale operations. His profits improved dramatically.
B. How to Prepare a Business Plan
The business plan is one of the most crucial steps in starting your own business. It is not only a structured document for your own benefit, but will also assist you in obtaining financing as well as support from your professional colleagues. The following guide will help you organize your thoughts and needs in developing your business plan.
1. Executive Summary
The first part of the business plan is the executive summary, which is a crucial part of the plan. Because investors and other interested parties see so many business plans, they generally will spend only five to ten minutes scanning a plan before deciding on whether to read it in its entirety - - or not to read it at all. The first part of the plan that they will read is the executive summary.
Description of Business
- Briefly describe the nature of your product or service, its unique features, and what you hope to accomplish over the next five to 10 years.
Strategic Direction
- Briefly describe the overall strategic (or long-range) direction of the company for the next three to five years.
Market
- Briefly describe the market segment that you are attempting to reach and the channels that you plan to use to reach that segment.
- Demonstrate the benefits of the product or service to those users.
Management
- Briefly describe the background and responsibilities of the founders and top managers of your company.
Financial Features
- State your expected sales and profits for the current year and for five years in the future.
- Estimate how much capital you will need, how you intend to use the proceeds, and how much equity (as a percentage) that you are prepared to give up in exchange for such an investment. What is the expected annual return for the investor?
Exit
- Explain how and when the investors will get their money out of the business - - for example, through buy-back, acquisition, or public offering.
2. Background and Purpose
History
- Describe the history of your product or service.
Current Conditions
- Describe your product or service. Provide a technically accurate description.
- If this is a technology product or service, outline tests that have been made and provide results.
The Concept
- Relate the key factors that dictate the success of your product of service (for example, price competitiveness, quality, marketing capabilities).
- Describe the unique features of your product or service.
- Describe the unique aspects of your strategy. How will you produce, distribute, and market your product of service?
3. Objectives
Develop a list of specific (and if possible, quantifiable) objectives for the next two years as well as for five years into the future in as many of the following areas as possible:
- Sales
- Profitability
- Market Share/Market Standing
- Product Quality
- Innovation
- Efficiency/Productivity
- Employee Morale
- Management Development
- Social Responsibility (impact on the community)
4. Market Analysis
This section should convince the reader that your product or service will have a substantial market in a growing industry and can achieve sales in the face of competition.
Overall Market
- Describe the overall market - - present and projected - - in terms of location, sales, profits, and growth rate trends.
Specific Market Segment
- Identify the specific target market or market segment - - present and projected - - and the leading competitors.
- List and characterize your five largest customers.
- Mention any promising prospective customers you have identified.
- Explain how you will continue to assess your target markets over the coming years in order to make the necessary changes in your plan.
Competitive Factors
- Report on each of the following factors and their expected impact on sales:
- Existing rivals
- Future competitors
- Buyers or purchasers
- Suppliers
- Substitute products or services
- Location of your store, office, or plantOther Market Influences
Relate the impact of each of the following components on projected sales: - Economic factors (inflation, recession)
- Seasonal fluctuations
- Government influences
- Social factors (age, income, demographics)
- Unexpected disturbances (war, energy crisis)
5. Development and Production
Production Process
- Outline the basic stages of the development and production process that your company will utilize in producing the product or service.
- Provide a rationale for producing, rather than subcontracting at the various stages of production.
Production Requirements
- Describe the following features of production along with the expected costs associated with buying, leasing, or simply expensing them on an annual basis:
- Raw materials
- Supplies
- Labor
- Plant facilities
- Equipment
- Transportation and shipping
Contingency Plans
- Present contingency plans for the production aspects of your business. Include such features as alternative sources of materials and provisions for additional workers and overtime.
6. Marketing
Market Strategy
- Provide a brief account of your product or service along with its major competitors in whatever segment it competes.
- Identify your target market.
- Provide the reasons why you have selected the particular segment in which you will compete.
- Characterize the image you want to portray.
- List how the services you will provide to your customers and the marketing strategy you will undertake are consistent with your image.
- Provide a detailed explanation of your pricing strategy under various scenarios.
- Report in detail the channels of distribution and the personnel you plan to use to reach your target market.
- Describe the forms of advertising to be used.
- List the features related to packaging and labeling that make your product unique.
Sales Forecasts
- Present (in chart form) your sales projections over the next five years with associated sales revenues. A graph of sales forecasts is also helpful to demonstrate trends.
7. Financial Plans
This section is basic to the evaluation of an investment opportunity by a bank or venture capitalists. It also serves as an operational plan for the financial manager of the company. It lays out exactly what you are requesting from investors and is number oriented.
Financial Statements
- Summarize the highlights of the following financial statements:
- Start-up costs
- Projected profit and loss statement
- Projected cash flow analysis
- Balance sheet
- Explain how much money you will need. For debt funding, what will you use as collateral? How will you repay the loan? How will the money be used?
- Describe your break-even estimates.
- Describe seasonal effects and their impact on financial performance, your receivables, your personal debts, and how you will monitor and control funds.
8. Organization and Management
The quality of management is perhaps the single most important factor considered by the investor. Most investors would prefer a mediocre product with a first-rate management team to a first-rate product with a mediocre management team. It is essential that you demonstrate that your business team is dedicated to your business and has the necessary skills to ensure that the plan will be carried out properly. You must demonstrate your people orientation which often dictates the success of a business.
Key Personnel
- Provide an organizational chart, which clearly delineates the responsibilities of the managers.
- Provide a summary of their career highlights, which demonstrates their ability to perform these responsibilities.
- Establish salaries and other forms of compensation.
- Describe the key executive positions that must be filled over the next two to three years.
- State the legal, accounting, banking, advertising and other organizations with whom you will work.
Other Personnel
- How many people do you plan to hire over the next five years?
- Describe their responsibilities.
- How will you train these individuals, and how will they be compensated?
- How will performance be assessed?
9. Ownership
- Describe the legal form of business - - sole proprietorship, partnership, corporation - - that you have selected and the rationale for the choice.
- Describe how much of an investment you and the other officers will be making in the business. Investors will want to see that the owners are committed to its long-term success.
- Describe the funding - - in the form of both debt and equity - - that will be necessary for your business over the next five years.
- How do you intend to acquire and use the money?
- If you choose a partnership, describe the conditions under which you will conduct your business. If a corporation, list the number of shares of stock and its price per share.
10. Critical Risks and Problems
It is important that you identify potential risks to the company. If a potential investor discovers any unstated negative factor, it can undermine the credibility of your plan. By identifying risks, you demonstrate some very good managerial skills and show the investor that you are prepared for potential problems in the future.
11. Summary and Conclusion
Briefly summarize the key features of the report, paying special attention to:
- Your overall strategic direction
- Why you expect the company to succeed
- Your expected sales and profits
- The unique features of the company
- Your capital requirements
- The percentage of ownership for you and your partners
12. Appendices to Your Business Plan
Appendices should include the following:
- A photograph of the product
- Sales forecasts in chart form
- Market survey data
- Sample advertisement
- Sample press release
- Production flow-charts
- Price lists
- Calculations of break-even points
- Table of start-up costs
- Projected profit-and-loss statements
- Projected cash flow analysis
- Fixed assets acquisition schedule
- Projected balance sheet
- Resumes of key personnel
- Character references
- Additional information
V. FINANCING YOUR NEW BUSINESS
How much money does it take to start a business? It may be necessary to consider the financing of business equipment, deposits and licenses, legal and accounting fees, furniture, insurance, packaging, etc.
Once you have taken care of your building and equipment needs, you also must have enough money on hand to cover operating expenses for at least a year. The expenses include your salary as the owner and money to repay your loans. One of the leading causes of business failure is insufficient start-up capital. Consequently, you should work closely with your accountant to estimate your cash flow needs.
Committing your own funds is often the first financing step. It is certainly the best indicator of how serious you are about your business. Risking your own money gives others the confidence to invest in your business.
Listed below are several common sources of financing. The majority of these are listed in the Bowling Green Area phone book. The addresses and phone numbers of government agencies are listed in the following sources of financing.
Personal Savings, Family and Friends
The easiest source of financing is using your own personal savings or loans from family or close friends. Be careful not to put a strain on personal relationships.
Life Insurance Policies
Usually individuals can borrow up to 95 percent of the cash value of their life insurance policy. Rates are usually lower than bank loan rates and the term of the loan is usually indefinite.
Mortgaging Real Estate
Mortgages on residential property may sometimes be used to finance your business. Commercial banks, mortgage companies and savings and loans institutions lend money to purchase or refinance real estate.
Commercial Bank Financing
Banks generally will lend up to 50 percent of the required starting capital if they can be convinced that your business has a good potential for success, that you are competent and reliable, and that you have a good plan for the repayment of the loan. Bank loans are not easy to get for start-up businesses. These are conservative loans, requiring above average credit ratings of the business person and collateral which is usually 100 to 200 percent of the loan amount. Interest rates may be fixed or variable, with the terms set at the discretion of the lender.
U.S. Small Business Administration (SBA)
The federally funded SBA primarily guarantees bank loans through the basic "7(A) Loan Program." The loan may be for any size, but SBA's guarantee cannot exceed $750,000 or 85% of the loan (whichever is less). The primary function of this program is to assist creditworthy borrowers in obtaining necessary long term financing which is not always available through conventional sources. Both the bank and SBA require the borrower to put up a "reasonable" amount of the project's cost. Both business and personal collateral may be taken as security. Use of proceeds includes purchasing inventory, machinery, equipment, real property, etc. The loan is usually limited to ten years for working capital financing, seven years for machinery and equipment, and up to a maximum of twenty-five years for acquisition of real estate. Applications for SBA loan guarantees are submitted to SBA by a bank, which first must approve the credit. Like the banks, SBA must first be convinced that a business can repay the loan from profits. Consequently, the SBA is interested in profitability ratios and business projections.
SBA has established a low documentation loan program called Lowdoc. The primary purpose of Lowdoc is designed for quick processing of loans of $150,000 or less. A one-page application is completed by the applicant. Then the application is given to a bank for review. That application is submitted to SBA along with a one-page application completed by the bank. Once SBA receives the application an answer can be given in two to three days.
Small Business Administration
600 Martin Luther King Place, Room 188
Louisville, Kentucky 40202
Phone: (502) 582-5973
Website: www.sba.gov
United States Department of Agriculture
The United States Department of Agriculture, guarantees term loans to non-farming businesses in rural areas. The USDA does not make direct loans, but will guarantee up to 90 percent of a bank loan to qualifying rural applicants. Unlike the SBA, the USDA sets no loan guarantee ceilings. It guarantees 30 year loans for real estate acquisition, 15 year loans for financing fixed assets, and 7 year loans for increasing working capital. Collateral requirements are set by the participating bank. The USDA will guarantee loans to business owners with good histories who can supply as little as 10 percent of their capital needs, but the agency requires a considerably greater equity investment in most cases. Guaranteed loan rates are negotiated between the borrower and the lender.
The USDA requires the same extensive loan documentation (business plan) as the SBA. But, because the USDA tries to increase rural prosperity by expanding business activity, it requires a detailed description of jobs to be created and the impact they would have on overall employment in the area. Each loan applicant is analyzed to determine the borrower's ability to repay the loan. Priorities are given to businesses in open country or in towns with populations below 25,000.
Director, Rural Business Service
United States Department of Agriculture
771 Corporate Drive, Suite 200
Lexington, Kentucky 40503-5477
Phone: (859) 224-7300
Website: www.redev.usda.gov
Internal Financing by Selling Ownership of the Business
This is a form of equity financing, or financing which necessitates dividing business ownership among investors who contribute capital but who may not actively participate in running the business. Sole proprietorships, general partnerships, limited partnerships, and employee stock ownership plans are all possible forms of internal financing.
External Financing by Selling Ownership of the Business
Corporations are businesses financed by a few or many investors who buy ownership (or stock). They differ legally from sole proprietorships and partnerships. Generally, corporate stockholders are not liable for claims against the corporation beyond the amount of their original investment.
One variation on the straight corporation is a S-Corporation, which is essentially a hybrid between a partnership and a corporation.
Kentucky Development Finance Authority (KDFA)
The KDFA program is designed to allow growth oriented businesses to obtain the long-term financing needed to encourage growth. Only fixed assets can be finance. The interest rate is based on the term of the loan. The rate/term tier is as follows:
| Term | Rate | |
| 3 Yrs | 1% | |
| 5 Yrs | 2% | |
| 7 Yrs | 3 1/2% | |
| 10 Yrs | 5% |
The KDFA program requires that new jobs be created. The loan amount is the lesser of 25% of the fixed asset cost of $10,000 per new job created with a minimum loan amount of $25,000 and a maximum loan amount of $500,000.
Kentucky Development Finance Authority
Old Capitol Annex
300 West Broadway
Frankfort, Kentucky 40601
Phone: (502) 564-4554
Website: www.edc.state.ky.us
Industrial Revenue Bonds (IRBs)
Municipalities are authorized to establish industrial revenue bonds to provide lower cost financing for private businesses locating within the state. Local boards may issue IRBs for companies engaged in manufacturing, processing, or assembling a product. Interest rates are negotiated between the company and the bond purchasers and reflect the market conditions for similar tax-exempt securities. Standard maturity for bond issues in the past has been about 20 years, with maximum allowable maturity of 40 years. Financing for minimum amounts of $500,000 is the rule of thumb for IRB lending.
Kentucky Development Finance Authority
500 Mero Street
24th Floor, Capital Plaza Tower
Frankfort, Kentucky 40601
(502) 564-4554
General Obligations Bonds
Municipalities and counties may issue general obligation bonds backed by the full faith and credit of the local government to finance industrial expansion or private businesses. Industrial facilities to be used for manufacturing, processing, or assembling are eligible as are port and railroad facilities. Companies seeking IRB financing must apply to the Bowling Green-Warren County government.
City Job Incentive Fund
The City Job Incentive Fund is a low cost source of funding made available by Bowling Green for new or expanding businesses which will employ a minimum of 20 new jobs.
Department of Finance
City of Bowling Green
P.O. Box 430
Bowling Green, Kentucky 42102
Phone: (270) 782-2484
Website: www.bgky.org
Barren River Area Development District (BRADD)
BRADD promotes social and economic development in Warren and surrounding counties. Various funding programs exist through the BRADD office which foster the industrial base of local communities.
Barren River Area Development District
177 Graham Avenue
Bowling Green, Kentucky 42101
Phone: (270) 781-2381
Website: www.bradd.org
VI. BUSINESS LICENSES AND AUTHORIZATIONS
A. Licensing and Permit-Granting Organizations
As a proprietor of a new business in Bowling Green or Warren County you must obtain various licenses and permits before opening for business. The following is a list of licensing and permit-granting organizations for Bowling Green and Warren County.
City Tax Office
The City Tax Office issues city occupational and business licenses. In order to open any business within the city limits of Bowling Green, a city occupational and business license is required. The minimum license fee is generally $30, but prices will vary according to the business in question.
City Tax Office
City Hall Annex
1017 College St.
Bowling Green, KY 42102
Phone: (270) 393-3649
Website: www.bgky.org
County Court Clerk
The County Court Clerk issues county occupational and business licenses. In order to establish any business within the city limits of Bowling Green, a city occupational and business license is required. Prices will vary according to the business in question.
County Court Clerk Warren County Courthouse
423 East 10th St.
Bowling Green, KY 42101
Phone: (270) 842-9416
Website: www.warrencounty.state.ky.us
Bowling Green Fire Department
The Bowling Green Fire Department must approve any building in which business activities are to take place. Before a business may obtain its license, an inspection of all commercial occupancies must be conducted to ensure compliance with the National Fire Code Ordinances.
Bowling Green Fire Department, Central Fire Station
701 East 7th St.
Bowling Green, KY 42101
Phone: (270) 393-3702
Website: www.bgky.org
Kentucky Secretary of State
The Kentucky Secretary of State will officially register the name of a business and file the Articles of Incorporation for any business that is to be incorporated. Limited partnerships must also file with the Secretary of the State.
Corporate Division, Capital Building
Room 152
Frankfort, KY 410601
Phone: (502) 564-2848
Website: www.sos.state.ky.us
Internal Revenue Service
The Internal Revenue Service supplies applications for federal identification numbers. All retail or wholesale and some service businesses are required to have a federal identification number. Application forms may also be obtained from a local accountant.
United States Internal Revenue Services
600 Dr. Martin Luther King Place
Louisville, KY 40202
Phone: 1-800-829-1040
Website: www.irs.gov
Kentucky Revenue Cabinet
The Kentucky Revenue Cabinet issues Kentucky tax registration applications (Form 10A100). All businesses making sales in the Commonwealth of Kentucky are required to have a state tax number. Officials will also provide other forms necessary to insure properpayment of the tax responsibilities.
Kentucky Revenue Cabinet
Taxpayer Registration Section
200 Fair Oaks Lane
Frankfort, KY 40620
Phone: (502) 654-4581
Website: www.state.ky.us/agencies/revenue/revhome.htm
Barren River Health Department
The Barren River Health Department issues permits for restaurants, septic tanks, and retail markets (involved in the sale of grocery items). This organization surveys each business to insure that all necessary regulations set forth by the Health Department are being upheld.
Barren River District Health Department
1109 State Street
Bowling Green, KY 42101-1157
Phone: (270) 781-8039
Website: www.barenriverhealth.org
Social Security Administration
The Social Security Administration must be contacted by all beginning businesses in order to establish payment of social security taxes. The Social Security Administration is involved in both regulation and enforcement.
Social Security Administration
2519 Nashville Rd.
Bowling Green, KY 42101
Phone: 1-800- 772-1213 or (270) 842-5691
Website: www.ssa.gov
City Building Inspector
The City Building Inspector must be contacted in order to obtain a building permit, sign review application, and a plan review fee worksheet must all be submitted to obtain a building permit.
City Building Inspector
Public Works Department
1021 College St.
Bowling Green, KY 42101
Phone: (270) 843-4146
City/County Planning Commission
The City/County Planning Commission conducts inspections regarding planning an zoning for the city of Bowling Green and Warren County. No form or fee is required. Commercial buildings, drainage, and parking lots must be in compliance with all regulations and requirements set forth in the zoning ordinances. Any improvements to an existing building must also be inspected.
Andy Gillies
City/County Planning Commission
1141 State St.
Bowling Green, KY 42101
Phone: (270) 842-1953
Website: www.warrenpc.org
Plumbing Inspector
The Plumbing Inspector conducts inspections when a new building is constructed or plumbing is added to an existing building. The inspection must take place before the building can be occupied. This permit is filed only after the plans, which are filed by the master plumber, are approved in Frankfort.
State Plumbing Inspector
1133 Adams Street
Bowling Green, KY 42101
Phone: (270) 781-2490
County Judge Executive
The County Judge Executive issues county building permits. For the issuance of a permit, a plot pan (with an engineer's stamp and a floor plan) must be submitted. Permits are priced at $1.50 per $1,000 of estimated cost of the building.
Office of County Judge Executive
429 East 10th Street
Bowling Green, KY 42101
Phone: (270) 843-4146
Website: www.warrencountygov.com
Kentucky Office of Employment & Training
The Kentucky Office of Employment & Training assists in establishing a state unemployment insurance account. By establishing such an account, insurance will be available in the event that a business is unable to meet payroll obligations.
Kentucky Office of Employment & Training
Unemployment Insurance Auditor
803 Chestnut Street
P.O. Box 90003
Bowling Green, KY 42101-9003
Phone: (270) 746-7440
Fax: (270)746-7825
Local Website: www.job.state.ky.us
State Website: www.desky.org
Kentucky Department for Environmental Protection
The Kentucky Department for Environmental Protection issues permits needed to build and operate incompliance with environmental regulations. These regulations involve air pollution sources, such as large parking areas, sewage systems discharging into Kentucky waters, withdrawal of water exceeding 10,000 gallons per day from public waters, building sites in a flood plain, and solid and hazardous wastes.
Kentucky Department for Environmental Protection
18 Reilly Road
Frankfort, KY 40601
Phone: (502) 564-2150
Website: www.kyenvironment.org
Kentucky Worker's Compensation Board
The Kentucky Worker's Compensation Board issues worker's compensation coverage. Such coverage is required by the state for any employer who has one or more employees. Information can also be obtained from a local insurance agent.
The Kentucky Workman's Compensation Board
127 Building
Highway 127 South
Frankfort, KY 40601
Phone: (502) 564-5550
Website: www.dwc.state.ky.us
B. Other Organizations
The following agencies are extremely helpful during the organization process but are not required before conducting business.
Information on required wages and records
Federal Wage and Hour Administration Federal Building
Bowling Green, KY 40601
Phone: (270) 781-1245
Information on safety and health protection and free on-site safety and health inspections
Kentucky Labor Cabinet
Occupational Safety and Health
127 Building (U.S. Highway 127 South)
Frankfort, KY 40601
Phone: (502) 564-6895
Website: www.state.ky.us/agencies/labor/laborhome
Information on free employment & training services
Access local and regional applicants, job banks, recruitment of specially qualified applicants, labor market information, job training programs, etc.
Kentucky Department for Employment Service
Home of the Bowling Green Area Career Center
803 Chestnut St.
P.O. Box 9637
Bowling Green, KY 42102-9637
Phone: (270) 843-5425
Website: www.job.state.ky.us
Kentucky Economic Development Clearing House
Provides business start-up assistance and information including liscensing.
Kentucky Economic Development Clearing House
2200 Capital Plaza Tower
Frankfort, KY 40601
Phone: (800) 626-2250
Website: www.thinkkentucky.com
VII. ADDITIONAL RESOURCES
You can find additional readings & resources related to starting and operating a small business at a number of local educational and retail establishments. These materials can help you better understand the processes involved in starting a business.
Bowling Green Public Library
1225 State Street
(270) 781-4882
WKU Helm-Cravens Library
1 Big Red Way
(270)745-3951
WKU Small Business Development Center
2355 Nashville Road
(270) 745-1905
Helpful Websites
www.sba.gov
www.bowlinggreen.ky.net
www.bgky.org
www.taxlinks.com
www.inc.com
www.usahomebusiness.com
www.aahbb.org
www.smartonline.com
www.onvia.com
www.ideacafe.com
www.soky.biz
www.irs.gov
www.bplans.com
www.bizoffice.com
www.thinkkentucky.com
www.homebusiness-book.com
www.office.com
www.digitalwork.com
www.allbusiness.com
www.garage.com