RISBDC

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RISBDC Rhode Island Small Business Development
Center
The Business Plan Presented by Sixcia
Devine Regional Director 401-263-5123 sdevine_at_jwu.
edu www.risbdc.org
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Session Objective

• TO PROVIDE YOU, THE ENTREPRENEUR, WITH
  INFORMATION ABOUT STARTING YOUR OWN BUSINESS AND
  GIVING RESOURCES THAT WILL ASSIST YOU IN THE
  DEVELOPMENT OF YOUR BUSINESS!

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What is the RI SBDC?

• A Private/Public Partnership
• United States Small Business Administration
• Rhode Island Economic Development Corporation
• Johnson and Wales University

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Regional Office Locations

• Providence Metro
• Taco Center, Larry Friedman International Center
  for Entrepreneurship
• Sixcia Devine, Regional Director
• Central Southern RI
• Central RI Chamber of Commerce
• Ardena Lee-Fleming, Regional Director
• Newport/EastBay
• Newport County Chamber of Commerce
• Stacey Carter, Regional Director
• Northern Rhode Island
• Northern RI Chamber of Commerce
• Douglas Jobling, Regional Director
• Pawtucket Central Falls
• 268 Main Street, Pawtucket

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Small Business Facts

• Over 20 million small businesses in the US
• RI businesses report 16.9 increase in sales
  compared to unassisted companies

• Small Business is the backbone of the American
  Economy
• Two of every three new jobs result from the the
  small business sector nationwide
• 39 of the US GNP is created by small business

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The Partnership Structure an Inclusive Approach

• The RI Small Business Development Center at
  Johnson Wales University is a public / private
  partnership providing management and technical
  assistance to small business owners and aspiring
  entrepreneurs.

• Partnerships include
• CWE
• RICMI
• SBA
• Secretary of States Office
• SCORE
• RI EDC
• Every Company Counts
• Banks
• Chambers of Commerce
• Community Based Organizations

RISBDC connects you with the best fit resource
for your business
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• Why are we here?
• Why start a business?
• What are the steps to writing the plan?
• Why do businesses fail?

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Visioning Your Future

• What does your business look like?
• What is the time frame?
• Create a collage.
• Keep a mental picture in your head.
• Good Read
• The E-Myth Revisited by Michael Gerber

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Where To Start

• Consider advantages, disadvantages, risks and
  impact.
• Advantages Be your own boss Independence
  Personal Satisfaction Sense of achievement
  Contribute to others.
• Disadvantages Financial risks Long hours
  Impact on social life/family Responsibilities
  and commitments.

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Characteristics

• Consider these aspects of your personality.
• Independence
• Self-Discipline
• Creativity
• Drive Desire
• Risk Taking
• Confidence
• Also, consider your strengths and weaknesses in
  these areas.
• Sales Marketing Financial Planning Accounting
  Administration and Management.

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• The Business Plan
• Overview

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Part I - The Organization

• Description of Business / Executive Summary
• (Limit to one page.)
• This portion of the Business Plan SHOULD BE
  WRITTEN LAST, even though it goes first in the
  plan.
• Management and Personnel
• (Who will be working for you?)
• Advisors / Board of Directors
• (Lawyer, accountant, insurance agent,
  consultants, resource partners, etc.)

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Forms of Business

• Sole Proprietorship easy to organize owner has
  complete control and receives all income owner
  has unlimited liability benefits are not
  business deductions.
• Partnership easy to organize, but needs
  agreement partners receive all income and have
  unlimited liability partners may disagree life
  of business may be limited.
• Corporation shareholders have limited liability
  can raise funds thru sale of stock Life of
  business is unlimited incorporating takes time
  and money may result in higher taxes overall.
• Limited Liability Company (LLC) provides the
  limited liability features of a corporation and
  tax efficiencies and operational flexibility of a
  partnership formation is more complex and formal
  than that of a general partnership.

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• Location
• Method of Record-keeping
• Insurance

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• Security
• Products and Services
• Procurement and Operations
• Equipment and Inventory
• Exit Strategy

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Part Two Marketing

• Marketing
• http//www.bizminer.com/free.asp1
• http//www.entrepreneur.com
• (go to free forms)
• Trends
• Target Market
• Competition
• (Everyone has competition?)

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• Promotion and Branding
• Location
• Method of Distribution
• E-commerce

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• Sales and Marketing Strategy
• Product Design and Packaging
• Timing of Market Entry
• (When do you plan to open and why?)
• Pricing
• Sales Forecast
• Pro-forma (month to month)
• 3 years projections

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Legal Requirements

• Registration
• IRS (Form SS-4), Department of Labor Training,
  RI Division of Taxation, Town Clerk, Secretary of
  State
• Licenses / Permits
• Workers Comp / Other Insurance
• Collection Agencies Legal Action
• Determine Business Status
• Taxes
• Leases

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Financial Management

• Software / Manual
• QuickBooks / Quicken Peachtree Excel
  Spreadsheets
• Accountant / Bookkeeper / Payroll Service
• Cash / Checks / Credit Cards
• Bank Accounts
• Insurance
• Bank Loan

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6 Cs of Credit

• Banks are in the business to make (not lose)
  money!
• To maximize the possibility of getting paid
  back, banks look at
• Capacity - Your ability to repay the loan, cash
  flow.
• Capital - How much money the owner has personally
  invested in the business.
• Collateral - Security guarantees.
• Conditions - Intended purpose of the loan.
• Character - Impression you make on the lender or
  investor.
• Credit - Your history (paid bills on time,
  bankruptcies).

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Credit Reports Resources

• Order your free credit reports from
  www.annualcreditreport.com
• Credit Bureaus
• TransUnion Equifax Experian
• [phone] [phone] [phone]
• PO Box 1000 PO Box 740241 PO Box 9595
• Chester, PA 19022 Atlanta, GA 30374-0241 Allen,
  TX 75013
• www.transunion.com www.equifax.com www.experian.
  com
• Credit Resources
• The Fair Credit Reporting Act
• www.ftc.gov/os/statutes/fcra.htm
• Credit Central
• www.truecredit.com/central
• Identity Theft Information

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Challenges

• Lack of staff training
• Lack of product knowledge
• Loss in sales
• Competition
• Failure to anticipate market trends
• Insufficient working capital / cash flow
• Poor budgeting
• Ignoring financial position of company
• Extending too much credit
• Over-borrowing or using too much credit
• Poor control over receivables

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RI SBDC
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Free Tutorials and Articles
Starting/Marketing http//www.mainesbdc.org/trai
n_login.cfm The Power of A Good Business Plan
http//www.allbusiness.com/2976170-1.html Ten
Painless Steps to Start and Finish Your Business
Plan http//www.bizplanit.com/free/articles/ten_pa
inless_steps.html Getting Started
http//www.myownbusiness.org/course.html From
Idea to IPO http//www.startupventuretoolbox.com
/ For more planning information
visit http//www.sba.gov/tools/resourcelibrary/pu
blications/serv_pub_mplan.html
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RI Small Business Development CenterJohnson
Wales UniversityHeadquarters

• 270 Weybosset Street, Richmond Bldg
• Providence, RI 02903
• (401)-598-2702