So you REALLY want to start your OWN business

1

• So you REALLY want to start your OWN business

2
So you REALLY want to start a Business

• AGENDA
• Do You Have What it Takes
• Why, Why, Why
• - Job To Business
• - Hobby To Business
• Lets Get Brutal
• 7 Myths Starting a Small Business
• Critical Steps to Jump Start your Business
  Planning
• Create a Business Plan
• What Will It Take
• - Are you Ready
• - Start-Up Costs
• Know Your Market
• What is SCORE
• - What Do We Offer
• - How Do You Get It
• - Why Should You Do It
• Next Steps 2011 Chapter 224

3
 DO YOU HAVE WHAT IT TAKES TO START AND RUN
YOUR BUSINESS Circle the answer that best
describes you. You must answer ALL questions for
the test to be accurate. SCORING YES 3
MAYBE 2 NO 1   Im persistent. I stick to
it. YES MAYBE NO   When Im interested in
something, I need less sleep. YES MAYBE
NO   When theres something I want, I keep the
end results clearly in mind. YES MAYBE
NO   I examine mistakes and learn from
them. YES MAYBE NO   I keep my New Years
resolutions. YES MAYBE NO   I have a
strong personal need to succeed. YES MAYBE
NO   I have new and different ideas. YES MAYBE
NO   I can adapt easily. YES MAYBE
NO  
4
I am curious. YES MAYBE NO   I have good
instincts about things. YES MAYBE NO If
something cant be done, I find a way. YES MAYBE
NO   I see problems as challenges. YES MAYB
E NO   I take chances. YES MAYBE
NO Ill gamble on a good idea, even if it isnt
a sure thing. YES MAYBE NO   To learn
something new, I dig into subjects I have no
background in. YES MAYBE NO   I can
recover from emotional setbacks. YES MAYBE
NO   I feel sure of myself. YES MAYBE
NO   I am a positive person. YES MAYBE
NO    
5
  I experiment with new ways to do
things. YES MAYBE NO   Im willing to
undergo sacrifices to gain possible long-term
rewards. YES MAYBE NO   I usually do
things my own way. YES MAYBE NO   I tend to
rebel against authority. YES MAYBE NO   I
often enjoy being alone. YES MAYBE NO   I
like to be in control. YES MAYBE NO   I
have a reputation for being stubborn. YES MAYBE
NO     SCORING YES 3 MAYBE 2 NO 1 YOUR
TOTAL SCORE ____________    
6
Why.Why.Why

• I want to get rich
• Im bored with my job
• Ill get to do what I love
• I can be my own boss
• I have an amazing idea
• Everyone tells me I should
• I will get more free time
• Ill show em
• I can do it
• How Important Is This To You

7
From a Job/Hobby to a Business

• Your Job
• Support of others
• Regular Paycheck
• Product Experience
• Defined Responsibilities

• Your Hobby
• Product Knowledge
• Done In Spare Time
• No Revenue
• Its Not Work
• Love Doing It

8
Youre gonna miss..

• Credibility
• Clout
• Contacts
• Coffee n clips
• Tech support
• Vacation time n health insurance
• The Game Shows

9
Lets get Brutal
10
Top 7 Myths About Starting A Small Business

• Myth 1 If I start a small business, Ill be able
  to write off all my expenses.
• Myth 2 I dont have to register my business if
  its really small.
• Myth 3 If Im not selling much, it doesnt count
  as a real business.
• Myth 4 I dont have to charge and remit taxes if
  Im selling online.

11
Top 7 Myths About Starting A Small Business

• Myth 5 There are all kinds of special tax breaks
  for people who start home-based businesses.
• Myth 6 There are all kinds of government grants
  for people who want to start small businesses.
• Myth 7 Starting a small business will let me
  live the lifestyle of my dreams.

12
Six Critical Steps to Jump Start Your Business
Planning

• Clearly Define Your Business Idea
• Examine Your Motives
• Be Willing to Commit to Hours Needed Have
  Discipline Cope With Learning Frustrations
  Common to Owning a Business
• Conduct Competitive Analysis in your Market
  products, services, prices
• Be Aware of Outside Influences
• Seek Help Other Businesses, Professionals,
  Vendors, Agencies

13
Create A Business Plan

• Executive Summary
• Business Description
• The Market Competition
• Product or Service Offered
• Marketing/Selling
• Management Personnel
• Financial Data
• Cash Flow Analysis
• Balance Sheets
• P L Statements
• Break Even Chart
• Investment
• Appendices

14
Are You Ready . . . . .

• I have a product
• That is needed
• That people will pay for
• Again and Again

15
Guy Kawasaki Method

• Find ONE customer/client
• Make an offer they cant refuse
• Modify elements from feedback
• Find ONE more customer
• Repeat for ten years

16

• Its all about cash Do You Have It?
• How much comes in
• How much goes out

17
The Revenue Stream

• 30 90 days from sale
• Expenses 90-120 days to sale
• You need money to get money
• Usually over estimated revenue and under
  estimated expenses

18
The Expenses Stream ..

• Set Up
• Pay Vendors
• Pay Selling Expenses
• Usually Underestimated

19
Youre gonna miss..

• Credibility
• Clout
• Contacts
• Coffee n clips
• Tech support
• Vacation time n health insurance
• The Game Shows

20
What Will It Take?ARE YOU READY TO GO INTO
BUSINESS

• Questions before Going into Business
• Do you have a unique product or service?
• Do you have the right kind of business experience?

21
Can you prepare a credible 3-year business plan?

• Can you take responsibility?
• Can you organize yourself and others?
• Are you ready to put in long working hours?
• Can you stick to it during rough times?
• Do you have family support?
• Do you have enough resources and credit?
• Is your health up to it?
• Do you know your market?
• Have you done your research?
• Can you create the demand?

22
Can you qualify for a Loan?

• What kind of business do you plan to start?
• Do you have the right kind of business
  experience?
• Is it a new or going business? How long in
  business?
• How large a loan will you need? How will you
  spend it?
• Do you have savings/collateral equal to 1/3 of
  the loan?
• Is your credit good? Bankruptcies? Debts?
• Have you made a Business Plan completed with
  financial projections? If not, can you do it?
• Do you have a realistic idea of expected income
  vs. your personal and business expenses?
• Can you repay a loan from realistic projected
  earnings?

23
Possible Funding Sources Debt Funds

• Cash Value Life
• Your Home Equity
• Loans From Family or Friends
• Banks, Credit Unions, SLs, Finance Companies,
  The Money Store
• Your Credit Card (Expensive unless you shop
  around)
• Customer Prepayments
• Credit From Suppliers
• Equipment Leases

24
Possible Funding Sources Debt Funds

• SBA Loans Guaranteed or Direct
• Veterans Administration G.I. Loans
• Dept of Commerce Export
• Dept of Energy
• Fed Housing Admin

25
Possible Funding Sources Equity Funds

• Your Savings, Bonds, Stocks
• Family/Friends Ownership Participation
• Small Business Investment Co
• Risk/Venture Capital
• May Also be Debt Funds
• Limited Partnerships
• Sale of Stock to Public or Friends

26
What Will It Cost To Start My Business?

• Legal Structures
• One Time Set-Up Costs
• Initial Capital Improvements
• On-Going Monthly Expenses
• Taxes and Administration

27
Know Your Market

• Business Wont Succeed Just Because You Want It
  To Succeed
• Research Your Market
• Know Important Market Data

28
Know Yourself

• Compare Your Skills Expertise
• Know What Particular Capabilities Made Other
  Companies Profitable
• Can You Duplicate/Surpass
• Unique Skills or Edge Do You Have
• Level of Capitalization Can You Provide
• Technical Skills
• Energy Passion

29
What Is SCORE?
30
We Are Counselors to Americas Small Business

• Affiliated with the SBA
• A Group of Volunteer Counselors Coming From Many
  Different Business, Government, and Non-Profit
  Backgrounds
• Located in WPB 500 Australian Avenue South,
  Suite 115
• Part of a National Organization With Headquarters
  in Washington, D.C. Area
• 365 Chapters Nationally
• Almost 14,000 Volunteers

31
What Can We Do For You?

• Free One-On-One Counseling, Face to Face
• Counseling By Phone or Email
• Planning For Start-Ups or Existing Businesses
• Assistance In Preparing Business Plans
• Financial Projections
• Business Organizational Structure Options
• Small Business Loan Assistance
• Business Issues Marketing, Sales, HR
• Hands-On Guidance During S/U and Afterwards

32
How Do You Get This Assistance?

• Use Our Website www.wpbscore.org
• Request Counseling
• Finalize Meeting Appointment
• Multiple Counselors Assigned As Needed
• Continue Counseling As Long As You Need/Want it

33
Why You Should Do It

• SCORE Improves Your Chances Of Start-up Business
  Success
• SCORE Helps Plan Your Business Growth For
• Continuing Success

34
Why You Should Do It

• SCORE Helps You To Control And Manage Your
  Business As It Grows
• SCORE Helps You To Build The Value Of Your
  Business

35
Just Do It .

• Palm Beach, FL Chapter 224
• Phone [phone]
• Website www.wpbscore.org