Entrepreneurship
en·tre·pre·neur
A person who organizes and manages any enterprise, esp.
a business, usually with considerable initiative and risk.
Presented by Bill Nicholson
January 10, 2007
Overview
Introduction
Description of the Business
Customer Profile
Want to be Self-Employed?
The Three Types of Employment
Final Thoughts
Q&A
Introduction
Who is This Guy?
UC Graduate - BSES
A+, ACE, MCP
Adjunct Instructor, CSTCC
Self-employed for 16 years
Real Jobs: General Motors,
Cincinnati Milacron,etc.
Description of the Business
Anything that is computer-related
– Software Development
– Networking
– Repair & Upgrades
– New Hardware
– Training
– Consulting
– Hand-Holding
Description of the Business
Multi-modal analysis of non-linear
operational constructs and
application of digital techniques to
enhance, support, streamline, and
de-obfuscate subjective processes,
with emphasis on remuneration
enhancement.
Description of the Business
“Apply computer technology
to make people happy
so they will give me money.”
Description of the Business
C++
Design / Consulting
VB
ASP .Net
SQL Server
Access
HTML
Windows 2003 Server / Linux
Description of the Business
Ongoing relationships with customers
Support a manageable number of
customers
Always be on the lookout for potential
new customers
Be available 24-7
Build relationships
Customer Profile
Eclectic
College: www.chatfield.com
Defense Contractor:
www.kecoindustries.com
Contractor: www.drackett-harth.com
Logistics: www.standrewsltd.com
Process
Control
Customer Profile
A Typical Customer is not High Tech
They are profit-oriented
They expect results
They trust me to suggest and
implement new technology
How do I Charge?
Hourly Rate
– T&M (Time and Materials)
– Establish the rate before starting
– Plumbers charge for travel time. Should we?
How do I Charge?
Project Rate
– Provide a quote or a proposal
– A proposal is an analog device
How do I Charge?
Value-Based Rate
– Mr. Customer: What is this software
worth to you?
How do I Charge?
Speculation
– Write the code for free and hopefully reap
the benefits down the road.
– Working “on spec” is risky.
– The cost of your labor is not tax-deductible
Want to be Self-Employed?
Work your own hours
Pick your own projects
Keep everything you earn
Make all the decisions
Avoid the office politics
Still want to be…?
No company softball team
No Christmas Party
No retirement plan
No benefits / health insurance
No paid vacation
No steady paycheck
No promotions
Collections
How to get Started
Consider a part-time „real job‟.
Contact the placement agencies
– Emphasize your willingness to work
part-time
How to get Started
Don‟t be picky
– Repair
– Programming
– Consulting
– Networking
– Design
– Hand-holding
Short Term
Time management is critical
Can you deal with not knowing what
you‟ll be doing next week?
Next month?
Customer Relations
Court your customers
Customer Relations
Don‟t commit to anything
– “Probably”
– “I think we can do that”
– “We‟ll try to get that accomplished”
Customer Relations
Email
Christmas gifts
No charge for telephone calls
Customer Relations
Identify the decision makers
– Owner
– Secretary
– Sales Manager
Customer Relations
Recognizable technology can get you
in the door.
Microsoft sells (sorry!)
Types of Employment
Direct Employee
– Paid by the company you work for
– Usually an open-ended relationship
Types of Employment
Contract Employee
– You are paid by a third-party, usually a
placement service.
– Usually a closed-end or short-term
agreement.
– You are employed by and at the mercy
of the placement service.
– Usually a full-time commitment.
– Be wary of tax ramifications
Types of Employment
Self-Employed
– You bill the customer
– You collect the fee
– You pay the Self Employment Tax
– You file a Schedule C
– You deduct your expenses
Types of Employment
Beware of Tax Implications
Someone will pay the extra 7.65%
Beware of Tax Implications
You know you’re not self-employed if…
– Your employer provides you a desk, a place to
work, a computer, and other tools.
OR
– Your employer determines your working hours
OR
– You receive a W-2 form at tax time
Legal Requirements
You are considered self-employed and subject to self-employment
tax laws if you:
carry on your own trade or business
have a profit motivation for your business activity
operate your business in a regular manner
are a sole proprietor
are an independent contractor
work full or part-time in the business endeavor
have a net profit of $400.00 or more
have a net profit of $100.00 or more as an employee of a church
electing exemption from Social Security Withholdings
http://www.villarose.com/html/advantax/slfempl.htm
Final Thoughts
No one has ever asked me for my GPA
Don‟t let emotions interfere with business
Be prepared to retrain yourself constantly
Final Thoughts
This is a people business
Edsger Dijkstra is often quoted as saying, "Computer science
is no more about computers than astronomy is about
telescopes."
Learn About People