Our States Association of Small Business Development Centers

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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

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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/
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   Veteran’s Boot Camp!

				
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