Chapter 8 Start-Up Concerns

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Chapter 8 Start-Up Concerns

  1. 1. Chapter 8 Start-Up Concerns & Financial Projections - Researching and Preparing Numbers <ul><li>Learning Objectives </li></ul><ul><li>Learn how to keep score with numbers. </li></ul><ul><li>Determine start-up costs. </li></ul><ul><li>Discover ways to boot-strap your business </li></ul><ul><li>Focus on pricing as part of overall strategy. </li></ul><ul><li>Determine seasonality scenarios. </li></ul><ul><li>Develop sales projections and what-if scenarios. </li></ul><ul><li>Develop projected income statements </li></ul><ul><li>Learn the importance of cash flow. </li></ul><ul><li>Understand that assets – liabilities = net worth. </li></ul><ul><li>Determine profitability through break-even analysis. </li></ul><ul><li>Learn how to use industry financial ratios and benchmarks . </li></ul>
  2. 2. Questions to Ask About the Financial State of Your Business <ul><li>What will your start-up costs run? </li></ul><ul><li>Which months will be strong in your particular business? </li></ul><ul><li>Which will be weak? </li></ul><ul><li>Can you project cash flow? </li></ul><ul><li>How fast will your business grow? </li></ul>
  3. 3. Five areas you need to consider as you plunge into the numbers of financial management: <ul><li>Start-up Costs </li></ul><ul><li>Pricing </li></ul><ul><li>Seasonality scenarios </li></ul><ul><li>Sales projections </li></ul><ul><li>What-if scenarios with income and costs, cash flow, and financial ratios </li></ul>
  4. 4. Suggestions for Making Your Dollars Work Efficiently <ul><li>Find out who you have to pay right now. </li></ul><ul><li>Find out who can wait a while. </li></ul><ul><li>Keep asking what you’re getting for your money. </li></ul><ul><li>Make “conserve cash” your mantra. </li></ul>
  5. 5. How to Save Money <ul><li>Ask your customers for cash deposits when they place orders. </li></ul><ul><li>Use trade, credit, or Dating-A vendor’s extension of the payment term into the near future. </li></ul><ul><li>Lease your equipment. </li></ul><ul><li>Run a lean operation; do not waste anything. </li></ul><ul><li>Work out of your home as long as you can. </li></ul><ul><li>Get your landlord to make on-site improvements. </li></ul><ul><li>Try to resell whatever waste or byproducts you have in your business. </li></ul>
  6. 6. How to Save Money - Continued <ul><li>Make mark downs quickly on dead goods. </li></ul><ul><li>Use as little commercial space as you can. </li></ul><ul><li>If customers do not visit your business facility, it does not have to be highly visible or attractive. </li></ul><ul><li>When you have to borrow money, shop around. </li></ul><ul><li>Make sure your liquid cash is earning interest </li></ul><ul><li>Add employees carefully. </li></ul>
  7. 7. Income Statements and Cash Flow <ul><li>An income statement tells you when you’re going to make a profit on paper. </li></ul><ul><li>A cash-flow projection tells: (1) Whether or not you can pay bills; and (2) When you’ll need cash infusions to keep going </li></ul><ul><li>Both of these projections are essential to the survival of your business. </li></ul>
  8. 8. Balance Sheet <ul><li>A picture of what your business owns and owes. Three categories make up a balance sheet: </li></ul><ul><li>Assets (anything of monetary value your business owns) – Liabilities (money owed to creditors) = Net Worth (owner’s equity) </li></ul>
  9. 9. Break-Even Analysis <ul><li>If you know your estimated costs (variable and fixed) and gross sales, you can use a break-even formula that will tell when you will start making money. </li></ul><ul><li>A break-even analysis is useful at start-up time, when you have completed your income and expense projections, and when you are considering launching a new product or service. </li></ul>
  10. 10. Financial Ratios <ul><li>Calculating a few simple ratios will help you analyze how your venture compares with other businesses in your selected industry. </li></ul><ul><li>Lenders use ratios as measuring devices to determine the risks associated with lending. </li></ul><ul><li>To the entrepreneur, ratios are control tools for maintaining financial efficiency. </li></ul>
  11. 11. The Three Components of Total Cost Used in Determining Pricing Total Cost Selling cost Overhead cost Cost of goods sold
  12. 12. Break - Even Chart for Pricing (a) 100 300 500 700 900 Loss Profit Break-Even Point Sales (Price = $12) Total Cost 10 30 50 70 90 Total Variable Costs Total Fixed Costs Production in Units Costs and Revenue ($)
  13. 13. Break - Even Chart for Pricing (b) 100 300 500 700 900 Sales (Price = $18) Total Cost 10 30 50 70 90 Break-Even Points Production in Units Costs and Revenue ($) Sales (Price = $12) Sales (Price = $7)
  14. 14. Formulas for Markup Calculations Cost + Markup = Selling price Cost = Selling price - Markup Markup = Selling price - Cost x 100 = Markup expressed as a percentage of selling price x 100 = Markup expressed as a percentage of cost Markup Selling price Markup Cost To convert markup as a percentage of selling price into a percentage of cost, or vice versa, the two formulas below are useful: Markup as percentage of selling price 100% - Markup as percentage of selling price Markup as percentage of cost 100% + Markup as percentage of cost x 100 = Markup as percentage of cost x 100 = Markup as percentage of selling price
  15. 15. Types of Pricing Strategies <ul><li>Penetration pricing strategy </li></ul><ul><li>Skimming pricing strategy </li></ul><ul><li>Follow-the-leader pricing strategy </li></ul><ul><li>Variable pricing strategy </li></ul><ul><li>Flexible pricing strategy </li></ul><ul><li>Price lining strategy </li></ul><ul><li>What the traffic will bear </li></ul>
  16. 16. Benefits of Credit to Buyers and Sellers Benefits of Credit to Buyers 1. The ability to satisfy immediate needs and pay for them later 2. Better records of purchases on credit billing statements 3. Better service and greater convenience when exchanging purchased items 4. Establishment of a credit history Benefits of Credit to Sellers 1. Closer association with customers because of implied trust 2. Easier selling through telephone- and mail-order systems 3. Smoother sales peaks and valleys, since purchasing power is always available 4. Easy access to a tool with which to stay competitive
  17. 17. Types of Credit <ul><li>Consumer Credit </li></ul><ul><li>Open charge accounts </li></ul><ul><li>Installment accounts </li></ul><ul><li>Revolving charge accounts </li></ul><ul><li>Credit Cards </li></ul><ul><li>Bank credit cards </li></ul><ul><li>Entertainment credit cards </li></ul><ul><li>Retailer credit cards </li></ul><ul><li>Trade Credit </li></ul>
  18. 18. Commonly Used Trade Credit Terms Credit Term Explanation 3/10, net 60 Three percent discount if payment is made within the first 10 days, net (full amount) due by sixtieth day from invoice date E.O.M. Billing at the end of the month, covering all credit purchases during that month C.O.D. Amount due is to be collected upon delivery of the goods 2/10, net 30, R.O.G. Two percent discount if payment is made within 10 days; net due by thirtieth day however, both discount period and 30 days start from the date of receipt of the goods 2/10, net 30, E.O.M. Two percent discount if payment is made within 10 days; net due by the 30th day however, both periods start from the end of the month in which the sale was made
  19. 19. Earnings before taxes Corporate taxes Operating Activities Sales revenue Cost of producing or acquiring product or service (cost of goods sold) Gross profit Marketing and selling expenses and general and administrative expenses (operating expenses) Financing Activities Operating income Interest expense on debt (financing costs) The Income Statement: An Overview Earnings before interest and taxes (operating income) Earnings before taxes Net income available to owners = = = = Taxes
  20. 20. The Balance Sheet: An Overview Assets Debt (Liabilities) and Equity (Net Worth) + Total Assets Current Assets Cash Accounts receivable Inventories Prepaid expenses Fixed Assets Machinery and equipment Buildings Land + Other Assets Investments Patents Debt Capital Current Debt Accounts payable Other payables Accrued expenses Short-term notes Long-Term Debt Long-term notes Mortgages + Owner’s Equity Capital Owner’s net worth or Partnership equity or Common stock equity Total Debt and Equity = =
  21. 21. The Fit of the Income Statement and the Balance Sheet Reports the profits from January 1, 2006 through December 31, 2006 Income Statement for 2006 Balance Sheet December 31, 2005 Reports the financial position as of December 31, 2005 Balance Sheet December 31, 2006 Reports the financial position as of December 31, 2006 Time
  22. 22. A Firm’s Cash Flows After-tax cash flows from operations Investments in net operating working capital Investments in fixed assets and other assets Firm’s cash flow =
  23. 23. The Purpose of Pro Forma Financial Statements <ul><li>1. How profitable can the firm be expected to be, given the projected sales levels and the expected sales expense relationships? </li></ul><ul><li>2. What will determine the amount and type of financing (debt or equity) to be used? </li></ul><ul><li>3. Will the firm have adequate cash flows? If so, how will they be used; if not, where will the additional cash come from? </li></ul>The purpose of pro forma financial statements is to answer three questions:
  24. 24. Sales-Assets-Financing Relationships Increases in sales Increases in asset requirements Increases in financing requirements
  25. 25. Practical Forecasting <ul><li>1. Don’t stretch to reach your numbers; be factual and conservative. </li></ul><ul><li>2. Remember: Only the most astonishing changes in a business or a market can justify a sudden, rocket-like performance. </li></ul><ul><li>3. Build projections quantitatively from clear assumptions. </li></ul><ul><li>4. Document the reasoning behind each projection in a written list of assumptions. </li></ul><ul><li>5. Use industry-specific data to guide your projections of sales and expenses. </li></ul><ul><li>6. Remember: Projections are immediately suspect if sales or profit margins are significantly higher or lower than the industry average. </li></ul><ul><li>7. Check pro forma statements against actual results at least once a month. </li></ul>
  26. 26. Chapter 9 Shaking the Money Tree – Locating Hard Cash <ul><li>Learning Objectives </li></ul><ul><li>Discover your risk tolerance. </li></ul><ul><li>Determine your credit situation. </li></ul><ul><li>Explore credit card usage and risks for your business. </li></ul><ul><li>Understand inherent risks in borrowing from friends and family. </li></ul><ul><li>Scour the lending arena for money to fund your new business. </li></ul><ul><li>Introduce strategies for approaching bankers. </li></ul><ul><li>Become familiar with state and local lending programs as well as those operated by the Small Business Administration and Small Business Development Centers. </li></ul><ul><li>Explore vendor financing. </li></ul><ul><li>Locate angels. </li></ul><ul><li>Explore the venture capital market. </li></ul>
  27. 27. Key Factors of Your Credit Score <ul><li>Paying all your bills on time. (35%) </li></ul><ul><li>Amount of money you owe and the amount of available credit. (30%) </li></ul><ul><li>Length of credit history (15%) </li></ul><ul><li>Mix of credit (10%) </li></ul><ul><li>New credit applications (10%) </li></ul>
  28. 28. To Receive a Copy of Your Credit Report and Scores, Contact: <ul><li>Equifax </li></ul><ul><li>http://www.equifax.com </li></ul><ul><li>Experian </li></ul><ul><li>http://www.experian.com </li></ul><ul><li>Trans Union Corporation http://www.transunion.com </li></ul>
  29. 29. Additional Thoughts to Consider as You Explore the Bottom Line For Starting and Building Your Business: <ul><li>Income stream: What can you count on from your Business? </li></ul><ul><li>Profit from sale of business: What is the potential profit if the business is sold? </li></ul><ul><li>Profit life cycle: How long will it take for your business to move from start-up to a profit position? </li></ul><ul><li>The rule: Your business should provide you with two sources of financial return: an income stream and growing equity. </li></ul>
  30. 30. Shaking the Most Fruitful Branches of the Money Tree <ul><li>Self </li></ul><ul><li>SBA </li></ul><ul><li>Banks </li></ul><ul><li>Family </li></ul><ul><li>Federal Govt. programs </li></ul><ul><li>Friends </li></ul><ul><li>“ Fools” </li></ul><ul><li>Vendor financing </li></ul><ul><li>Venture capital </li></ul><ul><li>Microlenders </li></ul><ul><li>Angels </li></ul><ul><li>IPO’s </li></ul><ul><li>State and local Govt. programs </li></ul>
  31. 31. A Few Things You Can Do to Alleviate Some of the Difficulties When Borrowing From Friends, Family, and “Fools” <ul><li>Put everything in writing. </li></ul><ul><li>Make it a business loan, not a personal loan. </li></ul><ul><li>A provision in the loan should be included for repayment in case of emergencies. </li></ul><ul><li>Discuss thoroughly with your lenders the company’s goals. </li></ul><ul><li>Discuss your fears for potential problems and encourage your lenders to discuss their issues as well. </li></ul>
  32. 32. The Five C’s of Credit: <ul><ul><li>Capacity </li></ul></ul><ul><ul><li>Collateral </li></ul></ul><ul><ul><li>Conditions </li></ul></ul><ul><ul><li>Character </li></ul></ul><ul><ul><li>Capital </li></ul></ul>
  33. 33. SBA Program Snapshots <ul><li>Program: Basic 7(a) Loan Guaranty Function: Serves as the SBA’s primary business loan program. </li></ul><ul><li>Program: Certified Development Company (CDC), a 504 Loan Program Function: Provides long-term, fixed-rate financing to small businesses to acquire real estate or machinery or equipment. </li></ul><ul><li>Program: Microloan, a 7(m) Loan Program Function: Provides short-term loans of up to $35,000 to small businesses. </li></ul><ul><li>Program: Loan Prequalification Function: Allows business applicants to have their loan applications for $250,000 or less analyzed. </li></ul>
  34. 34. Prepare to Meet Your Lenders <ul><li>List potential lenders and investors. </li></ul><ul><li>List reasons why lenders should want to invest in your business. </li></ul><ul><li>Think about the legal form of your business. </li></ul><ul><li>Test your tactics by talking to a few friends. </li></ul><ul><li>Time to go out and meet with lenders and shake another branch of the money tree . </li></ul>
  35. 35. Financial Information Required for a Bank Loan <ul><li>Three years of the firm’s historical statements, if available, including balance sheets, income statements, and statements of cash flow </li></ul><ul><li>The firm’s pro forma financial statements, in which the timing and amounts of the debt repayment are included as part of the forecasts </li></ul><ul><li>Personal financial statements, showing the borrower’s personal net worth and estimated annual income </li></ul>
  36. 36. Other Sources of Financing <ul><li>Community-based financial institutions </li></ul><ul><li>Large corporations </li></ul><ul><li>Venture capital firms </li></ul><ul><li>Stock sales </li></ul>
  37. 37. Chapter 10 Legal Issues Staying Out of Court <ul><li>Learning Objectives </li></ul><ul><li>Understand the importance and necessity of professional legal advice. </li></ul><ul><li>Decide which legal form is best for your business. </li></ul><ul><li>Explore the good, the bad, and the ugly of partnerships. </li></ul><ul><li>Review the advantages of forming a limited liability company. </li></ul><ul><li>Recognize the importance of documenting, organizing and saving everything. </li></ul><ul><li>Understand legal escape routes. </li></ul><ul><li>Protect your business with a buy-sell agreement. </li></ul><ul><li>Review patent protection. </li></ul><ul><li>Understand copyright laws. </li></ul><ul><li>Take action to protect your trademark or service mark. </li></ul><ul><li>Review rules for advertising within safe, legal limits. </li></ul><ul><li>Explore family business issues. </li></ul>
  38. 38. A Good Small Business Attorney Can Help <ul><li>Create the right business structure for a partnership or a corporation. </li></ul><ul><li>Review advertising and marketing materials to ensure no state or federal laws are violated. </li></ul><ul><li>Organize your human resources department to keep you outside the courtroom. </li></ul><ul><li>Research and protect you in regards to product liability . </li></ul><ul><li>Review all contracts and agreements before you sign. </li></ul><ul><li>Protect you through proper use and development of trademarks, copyrights , and patents . </li></ul><ul><li>Handle collection and possible bankruptcy problems. </li></ul><ul><li>Help you plan your exit strategy . </li></ul><ul><li>Write partnership agreements and buy-sell agreements . </li></ul>
  39. 39. Alternative Legal Forms of Business <ul><li>A sole proprietorship. </li></ul><ul><li>A partnership. </li></ul><ul><li>A limited liability company (LLC) </li></ul><ul><li>Subchapter S corporation </li></ul>
  40. 40. Which Form of Business is Best For You? <ul><li>International exposure </li></ul><ul><li>Tax implications </li></ul><ul><li>Liability issues </li></ul><ul><li>Litigiousness of customers, employees, and businesses in your state </li></ul><ul><li>Plans for business growth </li></ul><ul><li>Family structure and involvement in the business </li></ul><ul><li>Relationship with potential partners </li></ul><ul><li>Capital requirements </li></ul><ul><li>Exit strategy </li></ul>
  41. 41. Forms of Business Organization <ul><li>Proprietorships </li></ul><ul><li>Partnerships </li></ul><ul><ul><li>General </li></ul></ul><ul><ul><li>Limited </li></ul></ul><ul><li>Corporations </li></ul><ul><ul><li>C corporations </li></ul></ul><ul><ul><li>S (or Subchapter S) corporations </li></ul></ul><ul><li>Limited Liability Companies (LLCs) </li></ul>
  42. 42. Proprietorships <ul><li>Proprietorship: </li></ul><ul><li>business venture owned by an individual who is personally liable for the venture’s liabilities </li></ul><ul><li>Unlimited liability: </li></ul><ul><li>personal obligation to pay a venture’s liabilities not covered by the venture’s assets </li></ul>
  43. 43. Partnerships <ul><li>Partnership: </li></ul><ul><li>business venture owned by two or more individuals who are jointly and personally liable for the venture’s liabilities </li></ul><ul><li>Joint Liability: </li></ul><ul><li>legal action treats all partners equally as a group </li></ul>
  44. 44. Partnerships (continued) <ul><li>Joint and Several Liability: </li></ul><ul><li>allows subsets of partners to be the object of legal action related to the partnership </li></ul><ul><li>Limited Partnership: </li></ul><ul><li>limits limited partner liabilities in a partnership to the amount of their equity capital contribution to the partnership </li></ul>
  45. 45. Questions for Partner Discussion <ul><li>Management and control </li></ul><ul><li>Dispute resolution </li></ul><ul><li>Financial contributions </li></ul><ul><li>Time contributions </li></ul><ul><li>Demise of the partnership </li></ul><ul><li>New partners </li></ul><ul><li>Participation of family members as employees and their input into the business </li></ul><ul><li>Ethics </li></ul>
  46. 46. Corporations <ul><li>Corporation: </li></ul><ul><li>a legal entity that separates personal assets of the owners (shareholders) from the firm’s assets </li></ul><ul><li>Limited Liability: </li></ul><ul><li>creditors can seize the corporation’s assets but have no recourse against the shareholders’ personal assets </li></ul><ul><li>Corporate Charter: </li></ul><ul><li>legal document that establishes the corporation </li></ul><ul><li>S Corporation: </li></ul><ul><li>provides limited liability for shareholders plus corporate income is taxed like personal income to the shareholders </li></ul>
  47. 47. Consider the Following Reasons for Incorporation: <ul><li>You limit your liability </li></ul><ul><li>To change your tax picture </li></ul><ul><li>To Upgrade your image </li></ul><ul><li>To have the opportunity to channel some heavy expenses </li></ul><ul><li>To guarantee continuity </li></ul><ul><li>To offer internal incentives </li></ul>
  48. 48. Limited Liability Companies (LLCs) <ul><li>Limited Liability Company (LLC): </li></ul><ul><li>a business organization owned by “members” (shareholders) with limited liability </li></ul><ul><li>Major Incentive for Organizing as an LLC </li></ul><ul><ul><li>earnings can be taxed at the personal income tax rates of the members </li></ul></ul>
  49. 49. Subchapter S Corporation <ul><li>Definition: Legal entity that may </li></ul><ul><li>provide positive tax treatment for </li></ul><ul><li>small business. </li></ul>
  50. 50. Bases for Comparing Various Business Organizational Forms <ul><li>Number of Owners & Ease of Startup </li></ul><ul><li>Investor Liability </li></ul><ul><li>Equity Capital Sources </li></ul><ul><li>Firm Life & Liquidity of Ownership </li></ul><ul><li>Taxation </li></ul>
  51. 51. Number of Owners & Ease of Startup <ul><li>Proprietorship </li></ul><ul><ul><li>one; low time & legal costs </li></ul></ul><ul><li>Partnership (general) </li></ul><ul><ul><li>two or more; moderate time & legal costs </li></ul></ul><ul><li>Limited Partnership </li></ul><ul><ul><li>one or more general & one or more limited partners; moderate time & legal costs </li></ul></ul>
  52. 52. Number of Owners & Ease of Startup (continued) <ul><li>Corporation (C) </li></ul><ul><ul><li>one or more, with no limit; high time & legal costs </li></ul></ul><ul><li>S (Subchapter S) Corporation </li></ul><ul><ul><li>less than 75 owners; high time & legal costs </li></ul></ul><ul><li>Limited Liability Company (LLC) </li></ul><ul><ul><li>one or more, with no limit; high time & legal costs </li></ul></ul>
  53. 53. Investor Liability <ul><li>Proprietorship </li></ul><ul><ul><li>unlimited </li></ul></ul><ul><li>Partnership (general) </li></ul><ul><ul><li>unlimited (joint & several liability) </li></ul></ul><ul><li>Limited Partnership </li></ul><ul><ul><li>limited partners’ liability limited to their investments </li></ul></ul>
  54. 54. Investor Liability (continued) <ul><li>Corporation (C) </li></ul><ul><ul><li>limited to shareholders’ investments </li></ul></ul><ul><li>S (Subchapter S) Corporation </li></ul><ul><ul><li>limited to shareholders’ investments </li></ul></ul><ul><li>Limited Liability Company (LLC) </li></ul><ul><ul><li>limited to owners’ investments </li></ul></ul>
  55. 55. Equity Capital Sources <ul><li>Proprietorship </li></ul><ul><ul><li>owner </li></ul></ul><ul><li>Partnership (general) </li></ul><ul><ul><li>partners, families, & friends </li></ul></ul><ul><li>Limited Partnership </li></ul><ul><ul><li>general and limited partners </li></ul></ul>
  56. 56. Equity Capital Sources (continued) <ul><li>Corporation (C) </li></ul><ul><ul><li>venture investors & common shareholders </li></ul></ul><ul><li>S (Subchapter S) Corporation </li></ul><ul><ul><li>venture investors & Subchapter S investors </li></ul></ul><ul><li>Limited Liability Company (LLC) </li></ul><ul><ul><li>venture investors & equity offerings to owners </li></ul></ul>
  57. 57. Firm Life & Liquidity of Ownership <ul><li>Partnership </li></ul><ul><ul><li>life determined by owner; often difficult to transfer ownership </li></ul></ul><ul><li>Partnership (general) </li></ul><ul><ul><li>life determined by partners; often difficult to transfer ownership </li></ul></ul><ul><li>Limited Partnership </li></ul><ul><ul><li>life determined by general partner; often difficult to transfer ownership </li></ul></ul>
  58. 58. Firm Life & Liquidity of Ownership (continued) <ul><li>Corporation (C) </li></ul><ul><ul><li>unlimited life; usually easy to transfer ownership </li></ul></ul><ul><li>S (Subchapter S) Corporation </li></ul><ul><ul><li>unlimited life; often difficult to transfer ownership </li></ul></ul><ul><li>Limited Liability Company (LLC) </li></ul><ul><ul><li>life set by owners; often difficult to transfer ownership </li></ul></ul>
  59. 59. Taxation <ul><li>Proprietorship </li></ul><ul><ul><li>personal tax rate </li></ul></ul><ul><li>Partnership (general) </li></ul><ul><ul><li>personal tax rates </li></ul></ul><ul><li>Limited Partnership </li></ul><ul><ul><li>personal tax rates </li></ul></ul>
  60. 60. Taxation (continued) <ul><li>Corporation (C) </li></ul><ul><ul><li>corporate taxation; dividends subject to personal tax rates </li></ul></ul><ul><li>S (Subchapter S) Corporation </li></ul><ul><ul><li>income flows to shareholders; taxed at personal tax rates </li></ul></ul><ul><li>Limited Liability Company (LLC) </li></ul><ul><ul><li>income flows to owners; taxed at personal tax rates </li></ul></ul>
  61. 61. Taxes and the Form of Organization <ul><li>Sole Proprietorship: Business income reported on owners’ individual federal income tax returns </li></ul><ul><li>Partnership: Income allocated to partners, who individually report it on their personal tax returns </li></ul><ul><li>C Corporation: Income is reported by the business, which pays any taxes owed on its profits </li></ul>
  62. 62. Intellectual Property Your Most valuable Asset
  63. 63. Patents
  64. 64. Ten Things You Should Know to Protect Your Inventions <ul><li>What is patent? </li></ul><ul><li>What is the text for getting a patent? </li></ul><ul><li>What is a patentability search? </li></ul><ul><li>What is a patent notice? </li></ul><ul><li>When must I apply for a patent? </li></ul><ul><li>What is a worldwide patent? </li></ul><ul><li>Does a patent guarantee my right to sell my product? </li></ul><ul><li>What is an infringement study? </li></ul><ul><li>Are patents worth the costs? </li></ul><ul><li>Where can I get more information on patents? </li></ul>
  65. 65. Copyrights
  66. 66. Ten Things You Should Know to Protect Your Artwork, Ads, Writings, and Software <ul><li>What is a copyright? </li></ul><ul><li>What protection does a copyright give? </li></ul><ul><li>Are Websites Copyrightable? </li></ul><ul><li>How long does a copyright last? </li></ul><ul><li>If I use only 10 percent, can I use copyrighted works? </li></ul><ul><li>Must copyrights be registered? </li></ul><ul><li>Do I need a copyright notice? </li></ul><ul><li>Do I own copyrights I pay others to create? </li></ul><ul><li>Do foreign countries protect copyrights? </li></ul><ul><li>Where can I get more information on copyrights? </li></ul>
  67. 67. Trademarks
  68. 68. Ten Things You Should Know to Protect Your Product and Business Names <ul><li>What is a trademark? </li></ul><ul><li>How should a mark be used? </li></ul><ul><li>What is a trade name? </li></ul><ul><li>Does my incorporation or fictitious business name statement give me the right to use my name? </li></ul><ul><li>Must trademarks be registered? </li></ul><ul><li>What is a trademark search? </li></ul><ul><li>Is my product’s shape or packaging protectable? </li></ul><ul><li>Can I register my trade dress? </li></ul><ul><li>What about protection in foreign countries? </li></ul><ul><li>Where may I get information on protecting product and business names? </li></ul>

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