How to Start a Small Business

							                                       Thomas Cochrane Accredited by the Institute for Independent Business




Small Business Failure

   Reading the Warning Signs




                  TKC Solutions Inc
                tom@tkcsolutions.com
                www.tkcsolutions.com
                   503-635-7741
Introduction

    Tom Cochrane, TKC Solutions
        Advisory Services to Small Business
         Owners
    Institute for Independent Business
      Non Profit
      Worldwide network of over 3000 associates




                             Thomas Cochrane Accredited by the Institute for Independent Business
Small Business Failure

  Alarming yet incredibly consistent
   statistics from the US, the UK, Canada
  Failure rates in the 95% range in the first
   five years
  Why?




                         Thomas Cochrane Accredited by the Institute for Independent Business
Why do people start a small business?


     Independence
     They are tired of working for someone else.
     Challenge
     Small business ownership requires a great deal of responsibility.
      Some people thrive on that.
     Prestige
     Small business ownership offers community recognition. First as
      a successful business operator, and later as a contributor to the
      economic and social welfare of the entire community.
     No Restrictions
     There are no restrictions and few prerequisites for small business
      ownership.




                                        Thomas Cochrane Accredited by the Institute for Independent Business
Why do people start a small business?



   In small business a large percentage of new
    owners are over 50 years-old. Most have
    been “right-sized” and they have their
    severance pay or early retirement in hand and
    are looking for an opportunity that doesn't
    carry age discrimination with it.
   Race is not a factor in small business. Neither
    is gender. As a matter of fact, women are
    starting small businesses at 6 times the rate of
    men.



                              Thomas Cochrane Accredited by the Institute for Independent Business
Failure Points

    Start Up

    Owner Saturation




                        Thomas Cochrane Accredited by the Institute for Independent Business
Owner Saturation

    Hustle is no longer enough
      Fatigue
      Questioning the Dream




                          Thomas Cochrane Accredited by the Institute for Independent Business
Owner Saturation

    Marketing / Strategy
      Customers of all shapes, sizes and whoever
       bought first
      No idea of who they are, what makes them
       unique
      No focus on how to grow, where, with
       who(m)




                            Thomas Cochrane Accredited by the Institute for Independent Business
Owner Saturation

  Operational Chaos without the owner
  No clue on how to hire
  No clue on how to incent people




                       Thomas Cochrane Accredited by the Institute for Independent Business
Owner Saturation

    Financial and Operational Controls
        “Quickbooks Phenomenon”
    No instruments, no training for bad
     conditions




                           Thomas Cochrane Accredited by the Institute for Independent Business
Owner Saturation

    Undercapitalized- WHY?




                        Thomas Cochrane Accredited by the Institute for Independent Business
Owner Saturation

    Undercapitalized

  No idea on what their rationale is for
   growing- No plan, no market focus, „just
   another (store, dry cleaner, trucker,
   manufacturer…etc)‟
  Without that, they wouldn‟t loan
   themselves money, much less ask for it


                        Thomas Cochrane Accredited by the Institute for Independent Business
Start Ups

  Dreams , not plans
  All the same problems as owner
   saturation, just in embryonic form
  Corporate Background is almost
   completely counter productive for
   entrepreneurs




                        Thomas Cochrane Accredited by the Institute for Independent Business
What We Do

  Institute for Independent Business
   created the “Business Support Program”
  Outreach program for owners
  Network of Experienced (Old)
   Associates




                       Thomas Cochrane Accredited by the Institute for Independent Business
Business Support Program

    Owners Do not Fail due to
      Lack of Smarts
      Lack of Hard Work

  Help for what they don‟t know is hard to
   find
  Advisory Program as opposed to
   consulting


                           Thomas Cochrane Accredited by the Institute for Independent Business
Cases

    Metals Industry
        Declining Market
    Trucker Start Up
      Plan for distinctiveness
      Schedule and targets for new equipment

  Software Consultancy
  Landscaper



                            Thomas Cochrane Accredited by the Institute for Independent Business
Thanks For Your Attention

    Tom Cochrane
      TKC Solutions
      503-635-7741

      WWW.TKCSOLUTIONS.COM

      Tom@tkcsolutions.com



        Referrals are always appreciated….



                             Thomas Cochrane Accredited by the Institute for Independent Business