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VETERAN’S BOOT CAMP Veterans Assistance and Services Program (VASP) South-West Texas Border Small Business Development Center Network UTSA-SBDC Contracting Resource Center The VASP Program’s position within The UTSA Institute of Economic Development (IED): • The Veteran's Assistance • The VASP and SWTX Border Program is just one facet of the SBDC Network are a part of the many services offered through UTSA Institute for Economic the SBDC Contracting Resource Development. Other Programs: Center. To find out more about: − Center for Community and − Bidmatch Business Research − Supplier/Vendor Network − Center for Economic − Employer Services/Human Development Resources − San Antonio Minority Business Enterprise Center − SBDC National Information • The SBDC Contracting Resource Clearinghouse Center is one of nine programs of − SBDC San Antonio the South West Texas Border − SBDC International Trade Center SBDC Network. − Southwest Trade Adjustment Assistance Center − Rural Business Program Introduction of VASP Services: • The Veterans Assistance and VASP services include: Services Program (VASP) is here to • Self-Assessment support the men and women of the U.S. Armed Services, National • On-line counseling Guard and Reserves in their • Distance learning pursuit of the "American Dream" of entrepreneurship. • Web-based assessments • VASP is sponsored by the South- • Government contracting West Texas Border SBDC Network assistance and funded by a grant from the • Business planning and start-up U.S. Small Business Administration assistance to provide a wide range of • Assistance with preparation to resources and referrals. We obtain bank loans and financing provide a one-stop point of contact for veterans and military personnel who are nascent entrepreneurs or owners of small business concerns. VASP Website: http://vasp.txsbdc.org/ Are you Ready To Start a Business? Popular Misconceptions • All that’s really needed to start a business is a good idea. • You have more personal freedom; you can take more vacations and make your own schedule • There are lots of grants for me to start a small business (FREE $$$) More Popular Misconceptions I don’t need my own money to start a business. I can get rich quick. Failure Rate Over 80% of new businesses Two main reasons cited: fail within the first five years; approximately half of them •Inadequate planning •No business plan, don’t make it through the financial plan or marketing plan first year.* •Poor location Keys to Small Business Success • Have a passion for your business or enjoy what you do • Being able to effectively market your business • Be different and better than the rest • Have ideas and answers others don’t • Self-Confidence • Timing • Willingness to invest savings • Competitiveness • Business & financial plan !!! Evaluating Your Business Idea What you are selling? Benefit to your customers? How is your product or service different? Why will people buy from you? What is your mgmt/tech exp. with product/service? Potential Customers Which category best represents your primary group of potential customers? • General public • Government • Businesses • Specific Industry Demographics Select the criteria below that best represents the demographics of your customer. If selling to businesses, which category or categories best represent your primary customers? •Construction •Services •Wholesale Trade •Retail Trade •Other Demographics If selling to the general public, profile your customer by: Customer Age Race/Ethnicity Household Income Geographic Location Education Level Your Products/Services Which category best describes the sales area for your product/service? • Sold locally • Area of town • Sold Nationally and Internationally Business Promotion How do you plan to promote your business to potential customers? • Fitting the target market • Promotional activities • Other Refer to pg. 4 in EYBI The Competition Describe your five most important competitors: 1. 2. 3. 4. 5. Refer to pg. 5 in EYBI SWOT Analysis • Strengths (Internal) – Sustainable Competitive Advantages – Adequate financial resources • Weaknesses – poor service/delivery – poor reliability • Opportunities – Capitalize on competitor’s weaknesses • Threats – Regulatory & future competitors Estimate your start-up costs Description Items already Items still Total purchased needed before start-up Land & Bldg. License & Permits Inventory & Equipment Working Capital Total Annual Revenue What do you expect your annual Revenue(Sales) to be in the first year? • How many times in a 12-month period will the average customer return to purchase something? • How much will the average customer spend on each visit to your business? Business Financing • Sources of money to start your business − Personal Savings − Bank Loans − SBA Guaranteed Loans − Investor(s) − Credit Cards − Family and Friends − Retirement Account − Partners − Micro Lenders – Accion, CDLF, STBF. etc. − Grants • www.sba.gov/expanding/grants • www.cfda.gov • www.tsl.state.tx.us/trail/grantsearch.html Business Organization Types Legal Structures Characteristics Formation Requirements 21 The Legal Structure of Your Business Questions You Should Ask • How easy is it to set up and operate? • What are the tax advantages and disadvantages? • What are your potential legal liabilities? • What happens to the business if you should die? • How easy will it be to liquidate the business? Sole Proprietorship A sole proprietorship is a business owned and operated by one person for profit. Sole Proprietorship Characteristics • Easiest form of business to set up and operate • Profits are taxed only once • Unlimited liabilities • Business ends with death of owner • Easy to liquidate Do You Have Employees? Sole proprietors WITH employees must complete IRS form SS4 to get your FEIN (Federal Employer Identification Number) 1-866-816-2065 Partnership A partnership is any two or more individuals who contribute money, labor, and skill to a business and who share in its profits, losses, and management. Partnership Characteristics • Easy to set up and operate • Profits are taxed only once • Unlimited legal liability • Partnership terminates upon death or withdrawal of partner, • Easy to liquidate Formation of Partnership Easy To Set Up and Operate • No formal process required • Obtain Employer Identification Number • Obtain all necessary federal, state, and local licenses and permits • Register Assumed Name Certificate • Partnership Agreement − (optional, but highly recommended) Assumed Name (DBA) Sole Proprietors and Partnerships only: • Register assumed name (DBA) at county clerks office at the county court house • Fill out form, have notarized, file, get certified copy • It is recommended that you have several names in mind when you apply Corporation A corporation is formed under state and federal law. Legally, it is treated as a taxable entity, distinct from the individual shareholders who own it. Corporation Types • C Corporations − Taxed as separate entity − Potential for double taxation • S Corporation − Allows for pass-through taxation on gains or losses − Limits • Maximum of 100 shareholder • All US Citizens • All agree on Sub S status Corporations Characteristics • The most complex form of business to set up and operate. • Profits may be subject to double taxation • Limited legal liability • Business continues after death of owner(s) • Difficult and expensive to liquidate Formation of a Corporation Most Complex Form of Business to Set Up and Operate • File Articles of Incorporation with the Secretary of State • Pay filing and license fees • Prepare and adopt bylaws Formation of a Corporation • Obtain corporate minute book, corporate seal, stock certificates and other desired supplies • Follow corporate formalities − Hold scheduled shareholder meetings − Maintain Minute Book up-to-date Limited Liability Company “A business structure that is a hybrid of a partnership and a corporation. Its owners are shielded from personal liability and all profits and losses pass directly to the owners without taxation of the entity itself.” Limited Liability Company Characteristics • Moderately easy to set up and operate − (Some formalities required) • Passed through taxation • Limited legal liability • Business may or may not terminate upon death or withdrawal of member, depending upon operating agreement • Moderately easy to liquidate Formation of LLC Some Formalities Required • Acquire all necessary local, state, and federal licenses and permits • File articles of organization with the Secretary of State • Pay filing fees ($300) • Prepare and adopt operating agreement • File all necessary reports with the Secretary of State Taxes and Responsibilities City and County • Property Taxes • Permits State • Sales & Use Tax • Permits • Unemployment Insurance Tax • Workers Compensation Insurance • Franchise Tax Federal • Payroll taxes • Income taxes • FICA Local Resources & Requirements Economic Development Dept. 100 W. Houston 19th Floor San Antonio, TX 78205 • Business Licenses • Building Inspections • Bexar County Tax Office • Health Department • Information Center • Zoning • Certificate of Occupancy State Resources & Requirements • Texas Workforce Commission − Personnel Policies & Handbook − Drug Free Workplace − Employee New Hire Reporting • State Comptroller − State Sales Tax • Secretary of State − Licenses and Permits Federal Resources & Requirements • Internal Revenue Service − Circular E – Publication 15 − Employee vs. Independent Contractor − Office in the Home • OSHA • Equal Employment Opportunity Commission • Employee vs. Independent Contractor The Risk: Regardless of what anyone else says, how much do YOU want it? Can you afford to work for yourself? Your Financial Snapshot • Income versus Expenses • Net (positive or negative) Cash Flow • Net Worth (=Assets – Liabilities) • What personal assets can I use as additional collateral? Developing a Business Plan • Executive Summary • Introduction • Product & Service Definition • Manufacturing/Operations • Market Analysis • Sales Strategy • Management Plan • Financial Analysis • Supporting Documents Business Professional Team •SBDC Business Advisor •Attorney •Banker •Insurance Agent •CPA, Accountant or Bookkeeper Action Steps • Evaluate your business idea • Prepare a Business Plan − Attend SBDC Bus. Plan workshop • Work with SBDC advisor − Review business plan − Review financial plan − Assist with loan forms/documents • Register with appropriate agencies New Start-Up Checklist: Double Click each heading C RC - C O NTRA C TO R C HE C KLIST_Page_1.jpg C RC - C O NTRA C TO R C HE C KLIST_Page_2.jpg C RC - C O NTRA C TO R C HE C KLIST_Page_3.jpg http://vasp.txsbdc.org/ For Assistance call: AARON C. SAMS SENIOR BUSINESS DEVELOPMENT COUNSELOR PHONE: 210-458-2948 EMAIL: AARON.SAMS@UTSA.EDU Visit our website: http://vasp.txsbdc.org/ Thank you for viewing our Veteran’s Boot Camp!
"Our States Association of Small Business Development Centers"