Focusing on small, independent businesses, this primer answers questions relating to starting and operating a new firm and how local development organizations can help in the process. The general pattern of the company forming process (displacement, disposition to act, credibility, and availability of resources) is discussed. Success factors for retailing, wholesaling, manufacturing, and service firms are outlined. Aspects of estimating relevant market areas for various types of firms are presented, supported with a table showing national averages of population per store for 41 categories of retail businesses. Advantages/disadvantages of sole proprietorship, partnerships, and corporations are detailed. Purposes and methods for establishing a local industrial organization to assist potential and existing small businesses are examined. Sources of continuing education and special programs for small businesses in Alabama are listed. A financial worksheet and extensive checklist which permit potential entrepreneurs to analyze themselves, finances, partners, customers, buildings, merchandise, inventories, legal considerations, advertising, pricing, and employees are appended. (NEC)