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How to Really Start Your Business






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    How to Really Start Your Business How to Really Start Your Business Presentation Transcript

    • Welcome to Business Seminars How to Really Start Your Own Business
    • What is SCORE?
      • A Non-Profit Organization
        • SBA Sponsored
      • Experienced Volunteers
        • All facets of business
      • Personal Counseling & Mentoring
        • Face-to Face
      • On Line Cyber Counseling
        • www.score.org
      Counselors to America’s Small Business
    • Today’s Agenda
      • A Small Dose of Reality Therapy
      • Developing the Idea…
      • Structuring Your Business
      • Understanding Money & Cash Flow
      • The Business Plan
      • Starting Out on the Right Foot
      • Q&A - Counselors Roundtable
    • Reality Therapy The taste is terrible… but it works!
    • Reality Therapy
      • Advancing technology
      • Corporate subcontracting
      • Accessible marketing information
      • E-commerce, Internet
      • This can be a Deception
      Perhaps you think… “ It’s easy to start a new business”
    • Reality Therapy
      • Intense competition
      • Fickle customers
      • Difficulty raising capital
      • Difficulty finding good people
      • These can be Land Mines…
      Have you noticed how fast business conditions change?
    • Reality Therapy
      • Difficulty raising capital
      • Difficulty finding good people
      • Finding the right marketplace
      The Land Mines!
    • Reality Therapy
      • Family
      • Location
      • Income – now or later
      • Talents
      Your Personal Goals … the most important issues
    • The Idea How to look at your idea … objectively
    • The Idea
      • Personal goals
      • Prior work experience
      • Knowledge base
      • Solving a problem
      • The right attitude
      Where does it come from?
    • Evaluate the Idea
      • Has the Idea passed the Time Test ?
      • Are you ready to commit 5 years?
      • Is this Idea really for you?
      • What is the reward potential?
      • Are you plugged into the right networks ?
    • Test the Idea
      • Gather your facts
        • Get more than you need
      • Talk to prospective customers
        • Express your Idea…listen carefully!
      • Assess the Competition
        • Strengths & Weaknesses
        • Pricing & Distribution
      Startup market research
    • Protect the Idea
      • Theft?
        • Much less danger than you think!
      • Protect what is proprietary
        • Patents & Agreements
      • Understand reality…
        • Copyright & Trademarks
    • A New Technique
      • The Elevator Talk :
      • It’s a well-practiced answer to the question  Tell me, what’s your business? 
      • Brevity and content are what count
        • Your mother would understand in the time it takes to ride an elevator up to the second floor.
      Experts say, “Be ready to sell your business whenever the opportunity arises.”
    • Workshop How to create your “Elevator Talk”
    • Put the Idea in Words
      • State your business concept
        • What is it you do for Customers?
      • How does the Customer benefit?
          • What’s in it for the Customer?
      • Who is in your Target Market?
          • How can Prospects be identified ? Separate from others?
      • How do you want customers to perceive your business?
      Write your Idea’s components… (each in 25 words or less)
    • Your Elevator Talk
      • Now…
      • Boil down all 4 answers to just…
      • 25 to 30 words
    • Select your Business Structure Examine 4 Alternatives
    • Business Structure 4 choices…
      • Sole Proprietorship
      • Partnership
      • Incorporation
      • Limited Liability
    • Business Structure
      • Most used – 70% of 20 million businesses
      • Easy and inexpensive
      • You own the liability
      Sole Proprietorship
    • Business Structure
      • Group gains Tax benefits
      • Easy, inexpensive & flexible
      • You still own the liability
    • Business Structure
      • Separates personal from business
      • Credibility
      • Flexibility
        • Capitalization
        • Health & Insurance benefits
      • S-Corporation
        • Tax benefits
    • Business Structure
      • A Hybrid – Corporate & Partnership
      • Professional services
      • Income and Tax benefits
      Limited Liability Company
    • Managing your Money Cash Flow is the most important process you have to master
    • Cash Flow
      • Cash Flow helps you know how much cash you’ll need before the business supports itself.
      • Cash Flow is not the same as Profit & Loss.
      Cash Flow is the movement of money into and out of the business over a specified period of time.
    • Stretch Your Cash
      • Watch overhead costs
      • Always negotiate on price
      • Give credit very carefully
      • Collect very aggressively
      Spend & Collect with care…
    • Workshop Understanding Cash Flow
    • Cash Flow Criteria
      • Cash Sales - Begin at $5,000 monthly and increase by $3,000 in month 3 and $2,000 thereafter.
      • Collections - Are $1,000 each in months 2 and 3 and increase by $1,000 monthly thereafter.
      CASH IN…
    • Cash Flow Terminology
      • The amount of cash you have on hand at the start of the month. Starting cash is the same number as the previous month’s ending balance.
      • Cash In:
      • Sources of cash – sales, paid receivables, interest and others.
      Starting Cash:
    • Cash Flow Terminology
      • Fixed expenses – regular and not easily eliminated (rent, etc).
      • Variable expenses – Can change from month to month (advertising, supplies, promotion, services.
      Cash Out:
    • Cash Flow Terminology
      • Ending Balance:
        • How much cash is left at the end of the month. (Cash In less Cash Out)
      • Cash Flow:
        • The amount of cash that has flowed through the business. It is a measure of change for that month.
    • Cash Flow Criteria
      • Rent is $3,000 a month.
      • Two employees are hired at salaries of $24,000 a year each, paid on a monthly basis.
      • Supplies cost $2,000 the first month and increase $1,000 a month until month 3, then stay the same.
      CASH OUT…
    • Determining Cash Flow
    • Determining Cash Flow
    • Determining Cash Flow Start Up Cash Required
    • Determining Cash Flow Start Up Cash Invested
    • The Business Plan
      • Just what is a business plan?
      • Do I really need it?
      • Do I really have to write it?
    • The Business Plan
      • Discussing future plans
      • Demonstrating achievability
      • Satisfying reader’s needs
      A selling document that sells by:
    • The Business Plan
      • Bank Financing
      • Investment Funds
      • Strategic Alliances
      • Mergers & Acquisitions
      • Customer & Distributor Relations
      Using the Plan – Outside the Company
    • The Business Plan
      • A “Sanity Check”
      • Force a thinking process
      • Set specific, achievable goals
      • Oblige management commitment
      Using the Plan – Inside the Company
    • The Business Plan
      • Company
      • People
      • Market
      • Accomplishments
      • Production
      The data you’ll need: Information about…
    • The Business Plan
      • Summary Plan – 10 to 15 pages
        • Startup, bank funding, investment
      • Full Plan – 20 to 40 pages
        • Major financing
      • Operational Plan
        • Used internally to guide the company and its management.
      How big a Business Plan?
    • Business Plan Contents
      • Summary
      • The Company
      • Markets & Competition
      • Product/Service Description
      • Marketing
      • Manufacturing
      • Financial Information
      • Timetables & Benchmarks
    • Starting Out has a Dual Focus: All these business issues plus Your own state of mind
    • Put your right foot first…
      • Make a TOTAL Commitment
      • Sell yourself
      • Be single-minded in seeking customers
      Prepare yourself mentally to…
    • Setup your first appointment for a 1-on-1 Counseling Meeting: Go to www.scoreworks.org , Press the “Counseling” button Ask for dates and subjects for upcoming… SCORE Business Seminars Go to www.scoreworks.org , Press the “Seminars” button