Docstoc

Start up Seminar

Document Sample
Start up Seminar Powered By Docstoc
					Empowering Business Spirit



         Welcome to the
Empowering Business Spirit Seminar
Empowering Business
  Spirit Seminar


     Presenter:

    To Be Announced
Entrepreneurial Spirit Seminar

                        Schedule
     EDC, EBS, SBDC, and partners (who we are
      and what we do)
     Entrepreneurial Spirit (statistics and reality)
     Feasibility Study Process (Will I have customers?)
     10 Minute Break
     Business Plan (overview)
     Legal Issues/Business Structure (pros & cons)
     Financing (you and the bank)
     Questions & Answers (Evaluation)
                  EDC            EBS
MainStreet




 SBA                            C of C
              EBS, Partners,
             and Entrepreneur


 LCC                            NMEDD




NMHU             SBDC           Others
       Overview of our Common Goals

   Goal: To Grow Businesses and Create Jobs

   Designed: To maximize business success by
    coupling financial programs, managerial and
    technical assistance

   What drives the EBS Project: Seeing Small
    business succeed by Planning (a well developed
    business plan) and Seeking Professional
    Advisors, while avoiding the problems of staffing
    and understanding that years of education do not
    necessarily correlate with success
  Empowering Business Spirit


•20 Major EBS Partners
• Referral system resources
• One on One Business Counseling
• Seminars
• Resources (software, stats & advice)
      CLIENT FLOW CHART

               Client

          EDS Presentation


       Business Plan Workshop


         Resource Referrals



EDC   20 EBS   SBDC       SBA    Others


       Completed Business Plan
Entrepreneurial Spirit Seminar

     Every 30 seconds of every day, someone
      somewhere in the United States starts a
      new business. Every 30 seconds someone
      stakes their money, their labor, their good
      name on the unshakable belief that they
      can make or provide something bigger,
      better, faster, or cheaper than the other
      person.
Entrepreneurial Spirit Seminar

     In America today, smaller businesses,
      Companies with fewer than 20
      employees, create 98% of all new jobs.
Entrepreneurial Spirit Seminar

     There are more than 21,000,000 small
      business in the U.S. 16,000,000 have
      the owner as the sole employee.
      5,000,000 have between 1 and 500
      employees.

     It is estimated that between 800,000
      and 1,000,000 business are begun
      every year.
    Entrepreneurial Spirit Seminar

   Small businesses…
    – employ 53% of the private workforce.
    – provide 47% of all sales receipts.
    – provide 55% of innovations.
    – account for 35% of federal contract dollars.
    – account for 28% of jobs in high technology sectors.
    – account for 51% of private sector output.
Entrepreneurial Spirit Seminar

     US Patent Office currently reviews more
      than 10,000 patent applications
      monthly.

     Over 500,000 new firms have emerged
      in the US every year since the mid
      eighties, around 1,500 daily.
    Entrepreneurial Spirit Seminar

 During the 1950’s only 100,000 new business
  were incorporated annually.
 During the 1970’s the number was over
  200,000 new businesses yearly.
 During the 1990’s the number is up to
  600,000.
 During 2000’s number continues strong
 Add the increasing competition from US and
  foreign corporations.
Business Dissolution Rates (%)
                      all firms franchises 1-4 jobs         5 or more employees
after 2 yrs.             23.7      25.4     8.3               6
after 4 yrs.             52.7      59.2     19.6              13.1
after 6 yrs.             62.2      61.6     23.5              21.1
after 8 yrs.             70.9      72.5     46.5              30
           80
           70
           60
           50                                                                        after 2 yrs.
           40                                                                        after 4 yrs.
                                                                                     after 6 yrs.
           30
                                                                                     after 8 yrs.
           20
           10
               0
                   all firms   franchises      1-4 jobs     5 or more
                     Source: Dun and Bradstreet Corp. and U.S. Department of Labor
How many small businesses opened?

 Incorporate      647,675      768,180     790,569
 New Firms        769,124      819,477     842,357




    900,000
    800,000
    700,000
    600,000
    500,000                                                                Incorporate
    400,000                                                                New Firms
    300,000
    200,000
    100,000
           0
           Source: Dun and Bradstreet Corp. and U.S. Department of Labor
   How many small businesses closed?

   Bankruptcies             63,912       50,516       53,214
   Failures                 60,746       71,194       71,811 (125,025)
   Terminations             837,511      863,699      849,839


900,000
800,000
700,000
600,000
                                                                         Bankruptcies
500,000
                                                                         Failures
400,000
                                                                         Terminations
300,000
200,000
100,000
     0
    Source: Dun and Bradstreet Corp. and U.S. Department of Labor
Entrepreneurial Spirit

     ORGANIZED
   + CREATOR
   + IMPROVER
   + MANAGER                                (Plan, Staff, organize, and decision-making)
            [Administer, maintain, control, short-term view, ask how and when, initiate, accept the
   status quo, do things right.]


   + LEADER                            (control, motivate, charismatic)
            [Innovate, develop, inspire, long-term view, ask what and why, originate, challenge the
   status quo, do the right things.]


   ---------------------
   = ENTREPRENEUR ! ! !
Entrepreneurial Spirit Seminar

  Owning your business can be a wonderful
    opportunity:
   To be your own boss.
   To take charge of your financial future.
   To work 7 days a week, 24 hours a day,
    with no pay check at the end.
Entrepreneurial Spirit Seminar

   Expect to work an average number of
   about 64 hours per week



     84% of Entrepreneurs polled love the
     type of work that they do every week!
Myths of Business Ownership


  1. I can start living off the business
    immediately.
  2. I’ll be my own boss.
  3. I’ll get rich overnight.
  4. I have nothing to lose (OPM).
  5. Will give me independence.
More Myths….

  Will allow me time off any time I
   want.
  Will let me control the business.
  Will make a lot of money.
  Will be easy to do.
  Will be easy to get funding for my
   great idea.
Feasibility Study

  It is a Planning Process That Helps you:

     Determine if your business idea is a true
      opportunity or an unrealistic idea that will take
      your time, money and energy?
     Determine if your idea is “do-able”.
     Assess personal and financial resources
      necessary for success.
     Become familiar with Business Plan concept.
Feasibility Study

  DOES YOUR BUSINESS IDEA HAVE
   THE THREE-WAY FIT?

   Market Fit
   Financial Fit
   Personal Fit
             The Feasibility Process


IDEA

Definition
Objectives
                    The Feasibility Process


IDEA   MARKET
       ANALYSIS
        INDUSTRY
        MARKET
        COMPETITION
        (price, differentiation,
        and focus)
            The Feasibility Process


IDEA   MARKET      REQUIREMENTS
       ANALYSIS
                   EXPERIENCE
                   TIME
                   LEGAL
                   FINANCING
            The Feasibility Process

IDEA   MARKET ANALYSIS   REQUIREMENTS   DECISION
             The Feasibility Process


IDEA   MARKET      REQUIREMENTS   DECISION   GO
       ANALYSIS
                                             NO


                                             RE-
                                             EVALUATE
           The Feasibility Process


IDEA MARKET     REQUIREMENTS   DECISION   GO   BUSINESS
     ANALYSIS                                   PLAN
Defining Your Objectives

    Define your short and long term goals
       Personal Goals
     –   Why are you starting this business?
     –   What do you want to accomplish?


         Business Goals
     –   More detailed, SMART targets of performance
           Specific
           Measurable
           Assignable
           Realistic
           Timely
Why are you going into business?
                                    Source: Maslow, 1943; French and Raven, 1959


     Independence
     Personal Fulfillment
     Lifestyle Change
                             Self Actualization
     Respect
                               Esteem needs
     Money
     Power                   Affection needs
      – Socialized Power
      – Personalized Power
             Reward
                                   Safety
             Coercive
             legitimate
             Expert          Physiological
             Referent
               Goals

   The World has a funny habit of making
    room for those who know where they
    are going.

   Write them down

   Follow through
Defining Your Business Idea
 1. What specific products/services will you
   sell?

 2. Who will be your main customers?

 3. What is the real or perceived need for
   your product or service?

 4. Do you know your market? (demographics)
Defining Your Business Idea

  5. How is that need being met currently?
       (Competitive Analysis)


  6. In what way will your business better
    meet that need? (differentiation)

  7. What additional products/services
    could be offered as your business
    grows?
What is a Business Plan?


     It is a document that convincingly
      demonstrates that your business can sell
      enough of its product or service to make a
      satisfactory profit and be attractive to
      potential backers.
What is a Business Plan?

   It is a selling document. It sells your business
    and its executives to potential backers, from
    bankers to investors to partners to
    employees.
   A short written document that serves as a
    guide to your future, provides direction and
    focus, and helps you model your business and
    avoid problems.
Why Bother ?

   A Business Plan, should attract YOU to the
    business.
   A Business Plan, should attract others into
    the business.
   A Business Plan gives you confidence.
   A Business Plan improves your chances of
    success.
   A Business Plan Provides a road map for
    your business.
What About The Real World?

     Obtaining bank financing.
     Seeking investment funds.
     Arranging strategic alliances.
     Obtaining large contracts.
     Attracting key employees.
     Completing mergers and acquisitions.
     Motivating your management team.
     Press the flesh
The Business Plan--
       What Does It Do?
   Helps conceptualize business and set
    reasonable and achievable goals.
   Attracts lenders and investors.
   Provides an organized view of your business.
   Details research from the feasibility study,
    management, sales, marketing, finances,
    etc...
The Business Plan

     “If you aim at nothing, you will hit it
     everytime”
                          -Theodore Roosevelt
Key Elements of any Business Plan


   1. Executive Summary/Introduction
   2. Description of Products/Services
   3. Manufacturing & Operations Plan
   4. Marketing Strategy and Competitor Analysis
   5. Sales Plan
   6. Management Plan
   7. Financial Analysis
Attachments to the Business Plan

   Tax Returns (Business & Personal)
   Resumes
   Written Estimates
   Personal Financial Statements
   Contracts / Agreements
   Org. Charts / Job Descriptions
   Appraisals / Blue Prints / Floor Plans
   Other Relevant Information
Basics of the Business Plan
  1. There is no single right format.

  2. Be creative.

  3. Be as concise and focused as possible.

  4. The plan should reflect the company’s personality.

  5. Include negatives as well as positives.

  6. Write it over a period of weeks.
Guidelines for Preparing a
Business Plan

   Remember: No one can create your plan for you.
   Lenders are interested in the strategies for
    reaching financial projections.
   Show how you plan to set your business apart
    from competitors.
   Identify your market, offer evidence that
    customers for your product or service exist.
   Develop realistic financial forecasts (be sure
    to explain how they were derived)
Ways to Organize your Business

   Sole Proprietorship
   General Partnership
   Limited Partnership
   Regular Corporation
   S Corporation
   Limited Liability Company
When to see an Attorney
    Business Start-up
      – Incorporation
      – Partnerships
    Leases / Real Estate / Contracts
    Debt Collection
    Patents, Inventions, Copyrights, Trademarks
    Unemployment Hearings
    Bankruptcy and Reorganization
    Buying/Selling/Merging a Business
    Compliance with Environmental Laws
    Compliance with Employment Discrimination Laws
    Licensing
    Formal Written Opinions
    Legal Checkup
Places To Go Before Starting Your
Business
     City Community Development Office
      (Register/License Business, $35 annually)
     Planning and Zoning (Zoning approvals)
     Secretary of the State (Incorporate)
     NM State Comptroller (Tax Permit)
     Internal Revenue Service (EIN #)
     City Offices
     Fire Department
     See Handout for More details
The 5 C’s of Credit

   Character
   Capacity
   Conditions
   Collateral
   Capital
$ources of Capital, From Most
Common to Least Common
     Personal Savings, Insurance, Retirement (0%)
     Family or Friends (2-7%)
     Suppliers
     Personal Loans
     Banks (10-16%)
     Private Investors (18-25%)
     Public Sources
     Venture Capital (20-40+%)
Secondary Sources of Financing

   Small Business Administration
   Farmers Home Administration
   Federal, State, and Local Programs
How to Lower the Risk?

     Get experience in management and in your
      business.
     Plan ahead (save).
     Have support from your family!
     Be ready to persevere.
     Use only facts in decision-making.
     Follow your strengths and interests.
     Never be too proud to quit.
Survival Strategies
  Focus completely on satisfying the
   customer.
  Study the success of others.
  Gather and analyze management
   information regularly.
  The Kaizen strategy (continuous
     improvement involving everyone - TQM).
    Embrace change with a positive
     attitude.
                     Source: Dan Taylor, Pres. Data Star Communications
Final Comments

   Plan Your Work…

   ...And Work Your Plan ! !

   THANK YOU ALL ! !

				
DOCUMENT INFO