Entrepreneurship

							   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."
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