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Business Basics1052010

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  • Free Credit report go to www.annualcreditreport.com
  • Before we can be of service to our customers, we need to know WHO our customers are.
  • ADVOCATE:These are our best customers – the ones who return to our business time again, because they LIKE doing business with us. We have proven to them that we are their advocate – we are there to help, especially when things go wrong. In return, this customer will come more often than others, he will spend more money than others, he will tell his friends and family why they, too, should do business with us – AND, he will forgive us when something goes wrong – Because we are his Advocate, he is our advocate.APATHETIC:This customer may have only visited our business once. During this visit, nothing went wrong. He received the goods or services that he paid for. But, there was no human connection – this was a transaction, not a relationship. So, when he goes home he does NOT recommend us to his friends and family, he would switch to our competitor in a minute for a $5 coupon and when something goes wrong, he will demand restitution – we have not done anything to show him that our number one concern is for his satisfaction – we have not demonstrated that we want to be his advocate – therefore, he will not be ours.ASSASSIN:This is the customer who feels that he has been treated poorly and will not rest until he has told everyone he knows that they should not patronize our business. He feels unappreciated and wants the world to know it.These are also the faces of your INTERNAL CUSTOMER – these are YOUR faces.
  • To serve you must become an Advocate. It is the only way to sincerely demonstrate to your customer that you care and you want their repeat business.How many of you own a Lexus? 74% of Lexus owners buy a second Lexus. When surveyed to find out why they buy the second one, the overwhelming response was that something went wrong with the first Lexus, and they liked the way Lexus handled the problem. Lexus demonstrated the proper care and concern for their customers, going the extra mile to ensure the customers were no inconvenienced while the car was being repaired.Customers do NOT expect us to be perfect. They expect us to be responsive to their needs.
  • Quick resolutions to problems is the BEST way to guarantee that customers will continue to do business with us.
  • This quote defines PERSONAL EMPOWERMENT. Realize that you, and you alone, have the ability to change your situation, simply by changing your attitude about your situation.For the rest of your life, others will tell you what to do – your spouse, your boss, your children, boyfriend, girlfriend, parents. But, NO ONE can tell you how to FEEL about what you do – only you can decide that.
  • Review Top 10 Secrets to Being HappyIt is not a selfish thing to take time for yourself. You spent at least a few minutes every day doing something that brings you personal joy and fulfillment. Only by serving yourself first, will you have the desire, the energy and the ability to serve others. When you fly on an airplane and the flight attendant gives the speech about the oxygen mask dropping down, if you are flying with a child who gets the oxygen first? YOU DO…..if you do not first take care of yourself, you will not be there to take care of the child.
  • WAYS OF TALKING: Tone of voice is body language. “Thank you for shopping with us. Have a nice day.” The meaning is lost when these words are spoken in an insincere tone.POSTURE: Don’t slouch. Stand tall. It makes you look confident – it makes you look smart.APPEARANCE; Comb your hair, brush your teeth, don’t wear to work the clothes you slept in – iron that shirt! And, don’t forget about the appearance of your building… The physical appearance of your building is an extension of body language. Be sure your space is clean and orderly. EYE MOVEMENT: “Young lady, don’t you roll your eyes at me!”Facial Expressions: SMILE – sometimes it requires practiceBody Contact: A good handshake is one of your greatest customer service tools. Be aware of another’s personal space. Tell Luray Caverns story.Laughing: Always WITH our customers, not AT them (External and Internal)
  • None of us is as smart as all of us.
  • Transcript

    • 1. How to Build a Successful Business
      October 5, 2010
    • 2. Agenda
      • Business Plan
      Financing Your Business
      Customer Service in Business
      Promotion and Branding through Social Media
      Resources for Businesses in Virginia
    • 3. Why do I need a business plan?
    • 4. Business Plan
      Two ways to see if a business idea will work:
      Write a business plan and see if the idea makes sense…
      2. Open up a business and hope you made the correct decision…
      “Guess which one has the greatest chance of success?”
    • 5. Business Plan Your Roadmap to Success
      A good business plan helps set you on the road to financial success. By mapping out your goals and strategies, you’ll get a clearer picture of what your business really needs.
      Business Profile:
      This introduction to your business plan provides important information about your company’s business structure, key principals, professional advisors, and financial history.
      Business Plan:
      • Market Analysis
      • 6. Business Assessment
      • 7. Objectives, Strategies and Plans
    • What goes into a Business Plan?
      • Executive Summary
      • 8. Business Description
      • 9. Operations and Management
      • 10. Product/Service
      • 11. Marketing Plan
      • 12. Financial Statements and Projections
      • 13. Appendix
    • 7
      Business Plan Financial Section
      Financial Plan
      Your financial plan will include details on the following:
      • Balance Sheet
      • 14. Income Statement
      • 15. Cash flow forecast
      • 16. Personal Financial Statement
      It is important for your plan to be realistic and reviewed regularly – make changes whenever necessary.
    • 17. Balance Sheet
    • 18. Income Statement
    • 19. Cash Flow Forecast
    • 20. Business Success Rates
      “Writing a business plan increases
      your chances of success by 25%.”
    • 21. Assistance?
      Brett Vandyke, Assistant
      Joyce G. Kinder, Director
      (276)964-7345
      Email: joyce.kinder@sw.edu
      Located on the campus of SWCC, Tazewell Hall Room 349
    • 22. Business License & Registration
      Determine legal entity
      Check name availability with SCC (trademarks also)
      Register with the SCC your corporation, LLC or/and fictitious name (www.scc.virginia.gov)
      Check to see if a URL is available (www.internic.net)
      Get your FEIN with the IRS (www.irs.gov)
      Register with VA Dept of Tax (www.tax.virginia.gov)
      Register with VEC (www.vec.virginia.gov)
      Check with Dept of Professional & Occupational Regulation to see if you need any special permits. (www.dpor.virginia.gov)
      Obtain Business License from local Commissioner of Revenue
      Local fictitious name registration with courthouse
    • 23. Legal Entity
      One of the most important decisions you need to make before starting your business is determining what legal form your business will take.
      Effects personal liability
      Effects taxes – personal & business
      Effect the way the IRS treats you
      Marketing reasons
    • 24. Ownership Structures – Determine What is Right for Your Business
      Deciding on a business structure that is right for you is an important decision for your business. The form of ownership you select will depend on what your future business plans are.
      Sole Proprietors:
      • Simple & easy to start
      • 25. If no employees no additional payroll reporting or unemployment taxes
      • 26. Owner reports profits & losses on owners 1040
      • 27. Unlimited personal liability
      • 28. Fully responsible for the debts and obligations of their business
    • 16
      Ownership Structures – Determine What is Right for Your Business
      Deciding on a business structure that is right for you is an important decision for your business. The form of ownership you select will depend on what your future business plans are.
      Partnerships:
      • An agreement between two or more persons often protected by a partnership agreement
      • 29. Profits are shared according to their agreement
      • 30. Disadvantages
      • 31. Each partner is personally liable for entire business
      • 32. No real advantage over an LLC
      • 33. More complicated to start-up and usually requiring legal assistance
    • Ownership Structures – Determine What is Right for Your Business
      Corporations: (stock and non stock)
      • Two types: C – Corporation or S-Corporation
      • 34. C” Corporation
      • 35. Designed for larger businesses or businesses that intend on fast growth and want to reinvest earnings
      • 36. Stockholders not personally liable for company debts
      • 37. More expensive to setup than others
      • 38. Double taxation can occur
      • 39. “S” Corporation
      • 40. Is a tax election, not legal entity
      • 41. Profits & Losses passed through to owners
      • 42. Double taxation avoided
      • 43. Other restrictions
    • Ownership Structures – Determine What is Right for Your Business
      Limited Liability Company (LLC)
      • Advantages
      • 44. Owners not responsible for debts of the business
      • 45. Easier and less expensive to setup than corporation
      • 46. Is a legal entity, not a tax entity
      • 47. Single person LLC is taxed as Sole Proprietor
      • 48. Multiple person LLC is taxed as Partnership
      • 49. Or can elect to be taxed as corporation
      • 50. Good for holding real estate
      • 51. Disadvantages
      • 52. Owner must pay self employment tax on 100% of earnings from business
    • Legal Entity
      Accountants & Attorneys
      Consider talking to your accountant and attorney before deciding which is best for your company.
      Other considerations:
      Operating Agreement
      Partnership Agreement
      Buy/Sell Agreement
    • 53. Starting a New Business
      • Establish a business checking account
      • 54. Set up credit card processing (if desired)
      • 55. Fund the business (owner capital or loans)
      • 56. Decide on accounting method (cash or accrual)
      • 57. Establish books for the business (computerized preferred)
      • 58. Obtain liability insurance, renters insurance, workers compensation, etc.
      • 59. Hire employees and set up payroll records
      • 60. Start business (have a grand opening)
    • Why a Business Fails
      • The business is undercapitalized – a business with too much debt and a cash flow that doesn’t support it
      • 61. Business expansions that are poorly planned and not appropriately financed
      • 62. Poor Management
      • 63. The Business offers products and services that nobody wants or cannot afford
      • 64. Inability to adapt to a changing environment
      • 65. Failing to control costs
      • 66. Poor execution creating dissatisfied customers
      Creating an effective business plan will assist you in avoiding the pitfalls of running a business. Seeking professional help is another important way to avoid or plan for business challenges.
    • 67. Do it Right From the Start
    • 68. Financing Your Business
    • 69. How do you finance your business?
      There are two main ways to finance your business
    • Financing your Business
      Equity Financing
      Can be obtained through savings or investors. Investors typically receive an ownership interest in your company in return for their investment
      • Start up equity financing is typically sourced through yourself and people you know:
      • 71. Personal savings
      • 72. Friends or relatives
      • 73. Government
      • 74. “Angel” or informal investors
      Why invest your Money in the Business?
      • Least costly source of funds
      • 75. You are more likely to get a loan with adequate equity in your business
      • 76. A business that has adequate equity is more likely to succeed
    • Financing your Business
      Sources of Debt Financing
      • Line of Credit – used to cover short term expenses like supplies, payroll and rent.
      • 77. Credit Cards – to cover and track small expenses or everyday business expenses.
      • 78. Suppliers’ Credit – sometimes a very cheap source of financing, do not overlook the value of this source.
      • 79. Business Term Loan – used to purchase long term assets required to operate your business.
      • 80. Leasing – used to obtain assets to run your business, may provide more flexible options than traditional loans.
      • 81. Government Programs – there are many government programs to support Small Business. Investigate all options.
    • Sources of Financing
      • Credit Cards
      • 82. Most expensive
      • 83. Credit lines may be cut unexpectedly
      • 84. Most risk
      • 85. Personal Savings
      • 86. Lowest expense
      • 87. Lowest risk
      • 88. Do not use all of your savings for start up costs
      • 89. Bank financing
      • 90. Low cost
      • 91. Shorter term
      • 92. Higher equity requirements
      • 93. Small Business Administration guaranteed loans
      • 94. Low cost
      • 95. Longer terms
      • 96. Reduced equity requirements
      • 97. Lower risk to partner Banks
      • 98. Multiple plans to address real estate, equipment, and working capital needs
      • 99. Non-profit community lenders
    • 100. People Incorporated
      Small Business Loans
      • Loans up to $200,000
      • 101. Interest rate 3% above prime
      • 102. Collateral required
      Ninth District Funds
      • Tourism Related Business Loans
      • 103. Interest Rate=Prime
      • 104. Must have real estate for collateral
    • CUSTOMER SERVICE
      IN BUSINESS
    • 105.
      • 68% of people who leave a business say they do because of poor customer service
      • 106. It costs 5 to 6 times more to attract new customers than to keep existing ones
      • 107. Companies can boost profits from 25 to 125 percent by retaining 5 percent more existing customers
      • 108. Happy customers tell 4-5 others – Dissatisfied customers tell 9-12 or worse they post their complaint on YOUTUBE
    • Customer Service is the New Marketing
    • 109.
    • 110. Know your customer
    • 111. 3 Faces of Customers(External and Internal)
      1. *Advocate ---
      2. *Apathetic --------------
      3. *Assassin -----
      *Satisfaction
      Chris Denove and James D. Power IV
    • 112. Become an Advocate
      One that supports or promotes the interests of another
    • 113. 7 out of 10 complaining customers WILL do business with you again IF you resolve the complaint in their favor._______________________
      If you resolve it on the spot, 95% will do business with you again.
    • 114. ATTITUDE
      The greatest discovery of my generation
      is that a human being can alter his life by
      altering his attitude.
      William James (1842-1910)
    • 115. Be Happy!
    • 116. Can You Hear Me Now?
    • 117. The Variations of Body Language
    • 118. How to deal with Challenging Customers
      Stay calm yourself
      Let the customer vent
      Deal with the emotion first
      Avoid emotional trigger words
      Gently confront abusive customers
      Delay action or consult a second opinion
    • 119. Avoid Emotional Triggers
      Triggers
      Calmers
      Here’s what we can do
      Can
      Thank you for telling us
      I’ll find out
      I understand why…
      That’s not our policy
      Can’t
      I’m sorry you feel that way
      I don’t know
      You should have…
    • 120.
    • 121. TEAMWORK
      Not finance.
      Not strategy.
      Not technology.
      It is TEAMWORK that remains the ultimate competitive advantage, both because it is so powerful and so rare.
      Patrick Lencioni
      The Five Dysfunctions of a Team
    • 122.
    • 123. Times Have Changed
    • 124. How we get our news
      ▪ The first pictures of the crash were posted online via Twitpic on the microblogging site Twitter by a user who had witnessed the accident.
      ▪ The pictures traveled around the world in only a couple of minutes.
    • 125. What brand name comes to mind when I say ‘hamburger’?
    • 126. What brand name comes to mind when I say ‘soft drink’?
    • 127. What brand name comes to mind when people think of your product or service?
      Your Name/Company?
      Or Your Competitor’s?
    • 128. Time to Re-think Your Marketing Strategy!
      Old/Outbound Marketing
      New/Inbound Marketing
      An Interaction
      An Interruption
    • 135. So what’s Social Media
    • 136.
    • 137.
    • 138.
    • 139.
    • 140. 225 million streams/day
      It would take 412.3 years to watch every YouTube video
      2 BillionYouTube videos viewed per day
    • 141. Your Audience - the World
    • 142.
    • 143.
    • 144. 500 million active users
      Average 130 friends each
      Second most trafficked website next only to Google!
      50 million status updates per day
      100 million access through mobile devices
    • 145. More than 1.5 million local businesses have active Pages on Facebook.
    • 146.
    • 147. 65 million users
      Approximately 1 joins every second
      ½ Users are outside US
    • 148.
      • “A professional network of trusted contacts”.
      • 149. Execs in all of the Fortune 500
      • 150. 60% of incomes over $90,000
      • 151. ¼ are senior executives
      • 152. Segments:
      • 153. Executives: 28%
      • 154. Networkers/Consultants: 30%
      • 155. Late Adopters: 22%
      • 156. Exploring Options: 20%
      • 157. People with incomes over $150,000 of $200K + were seven times more likely to have 150 plus connections than lower income users.
    • 158. 145 million users
      300,000 new users each day
      64 million tweets/day
      140 character message max
      The average number of tweets per hour is around 2.7 million.
      1382% Growth rate from in 2009
      2 billion average tweets per month
    • 159.
    • 160. 4. It takes too much time
      1. It’s a waste of time
      2. Why do I need this nonsense?
      ACCOUNTING
      5 Top Excuses For Not Joining Social Media
      3. My customers aren't using social media
      5. Don’t want to give people opportunity to talk negative about me
      Twitter & Facebook makes networking easy, painless, and powerful. 
      Lines between personal and business networks are blurring.
      Have you checked to see?
      You have the ability to stay on top of the people you want to hear from.
      People are already talking about you. It's better to know what they are saying then to not know.
    • 161. Who’s Got the Time?
    • 162. Who’s Got the Time?
      • None of these tools take much time to set up
    • Who’s Got the Time?
      • None of these tools take much time to set up
      • 163. But they do require regular check-ins and updates
    • Who’s Got the Time?
      • None of these tools take much time to set up
      • 164. But they do require regular check-ins and updates
      • 165. You can’t just “set it and forget it.”
    • How People Share Content on the Web
    • 166. Quick Start
      Dedicate 15 minutes each day
      Start posting
      and sharing
      news, interests
      and information
      Post your
      professional self
      on LinkedIn,
      connect to
      Facebook,
      develop a Twitter following
      Learn about each
      tool.
      See how users
      Interact in
      communities
      Build up
      your network
      (aim for 10).
    • 167. Why Social Media for my Business?
      Buy attention (with advertising)
      Beg for attention from the media (with PR)
      Bug people one at a time to get attention (with direct sales).
      Or you can EARN attention by creating something interesting and valuable and then publishing it online for free: a YouTube video, photo’s, a Twitter stream, a Facebook page, a presentation on SlideShare.
    • 168. Radar Types/Track Branding
      Google Alerts
      Search.twitter
      Tweetbeep.com
    • 169. Google Alerts
    • 170. Other Business Resources
      Sandy Ratliff, Business Services Manager
      Virginia Department of Business Assistance
      276-676-3768
      sandy.ratliff@vdba.virginia.gov
      www.vdba.virginia.gov
      www.vastartup.org
    • 171. Virginia’sBusiness One Stop
      Are you starting a business?
      Virginia’s Business One Stop system can help you determine your business formation requirements and can pre-fill your business registration forms.
      Winner of the 2009 Governor's Technology Awards
      • Visit http://www.virginia.gov/bos/index.html to access the Business One Stop System.
      • 172. Create a Business One Stop account.
      • 173. Answer a few brief questions about your business.
      • 174. Receive a list of action items and pre-filled business registration forms.
      Questions? Contact the Virginia Business Information Center
      1-866-248-8814 (804) 371-0438 vbic@vdba.virginia.gov
    • 175. Business Information Services
      To help businesses get started and to grow.
      Formation Assistance
      • Virginia Business Information Center (VBIC) 1-866-248-8814
      • 176. Bridges the 26 state agencies, over 100 programs and over 300 forms that may touch a Virginia business
      • 177. Virginia Central Business Portal (www.business.virginia.gov)
      • 178. Covers registration, taxation, licensing
      • 179. Interactive Business Plan CD
      • 180. 5 Step process to a business plan
      • 181. Entrepreneur Express Events
      • 182. 150 Events – 7,500 Trained
    • Ask VBIC = 866-248-8814
    • 183. Growing Your $ales - State
      • Governor’s Executive Order 33
      • 184. $5 billion market
      • 185. Access to buyers from 171 state agencies
      • 186. Additional $5 billion from local governments
      • 187. 575 localities using eVA system.
      • 188. Small Business Goal – 40%
      • 189. Over 41,490 registered suppliers
      • 190. Over 13,065 participating buyers
      Ask VBIC = 866-248-8814
    • 191. Examples of Purchasing:
      Instant Ice Tea
      01/01/2009 – 12/31/2009 = $23,455.71 - 46 PO’s
      Novelty – Specialty Advertising Products
      01/01/2009 – 12/31/2009 = $152,905.34 - 152 PO’s
      Grounds Maintenance: Mowing, Edging, Plant (Not Tree) Trimming, etc.
      01/01/2009 – 12/31/2009 = $14,566,567.94 - 1150 PO’s
      Tires and Tubes, Passenger Vehicles
      01/01/2009 – 12/31/2009 = $72,103.64 - 7 PO’s
      Concessions, Catering, Vending: Mobile and Stationary
      01/01/2009 – 12/31/2009 = $6,187,712.31- 11,757 PO’s
      Building Maintenance
      01/01/2009 – 12/31/2009 = $90,611,650.85 - 9285 PO’s
      Earth Moving Equipment Rental
      01/01/2009 – 12/31/2009 = $8,573,333.24 -621 PO’s
      Cleaning Services, Steam & Pressure
      01/01/2009 – 12/31/2009 = $3,358,694.55- 303 PO’s
    • 192. One–on-One Counseling Sessions
      Need Based:
      Accessing New Markets/Sales Growth
      Tailored Sales Development Solutions
      Financing Resources
      Social Media for Your Business
      To schedule an appointment, contact:
      Sandy Ratliff, Business Services Manager
      276-676-3768
      Email: sandy.ratliff@vdba.virginia.gov
    • 193. Entrepreneur Workshops
      • Launched October 2006
      • 194. Partnership with Service Providers and localities
      • 195. Provide information on available resources to start and grow a business
      • 196. Statewide Program
      • 197. Free – ½ Day Session
      • 198. Over 8,000 reached
      • 199. www.vastartup.org
    • Social Media WorkshopsYou-Link-Twit-Face
      Upcoming Events:
      • September 23 - Bristol
      • 200. October 14 – Scott County
      • 201. November 1 – Floyd County
      • 202. November 16 - Bristol
      Register : www.vastartup.org
    • 203. Virginia JobsInvestment Program
      • Workforce recruiting and training
      • 204. Create minimum 25 net new jobs within 12 months and capital investment of at least $1,000,000
      • 205. Minimum entry-level wage of $10.00/hr required. Only full-time jobs are eligible.
      • 206. Small business workforce recruiting and training
      • 207. 250 employees or less, hiring at least 5 new full time employees within 12 months of operation and capital investment of at least $100,000
      • 208. Minimum entry-level wage of $10.00/hr required. Only full-time jobs are eligible.
      • 209. Retraining
      • 210. Small businesses that are retooling and installing new technologies
      • 211. Company must retrain minimum 10 full-time employees.
    • OTHER AVAILABLE RESOURCES
      Turn to SCORE Counselors for Small Business Advice
      Visit the SCORE Small Business Web Site:
      www.score.org
      How-to Advice & Info
      Ask SCORE for business advice online
      Find SCORE to locate any chapter in the country
      2,000 pages of content for small business owners
      How-to articles offer practical business tips
    • 212. OTHER AVAILABLE RESOURCES
      • Virginia Department of Labor – Apprenticeship Program
      • 213. Combination of on-the-job training and classroom instruction.
      • 214. Advantage of skilled workforce and reduced turnover.
      • 215. http://www.doli.virginia.gov
      • 216. Virginia Department of Agriculture & Consumer Affairs
      • 217. Virginia’s Finest Trademark = Marketing program that promotes foods and foods products grown in Virginia.
      • 218. Facilitates expansion of agricultural businesses.
      http://www.vdacs.virginia.gov
    • 219. OTHER AVAILABLE RESOURCES
      Virginia Business Incubator
      • 9 Available in Southwest Virginia
      • 220. 30 Within Commonwealth
      • 221. Business Incubator Benefits
      • 222. Facility designed to assist businesses to become established and sustainable
      • 223. Benefits
      • 224. Shared premises and business services
      • 225. Business advice and mentoring assistance
      • 226. More details - http://www.vbia.org/
    • Business Incubator
      Commercial Kitchen
      Light Manufacturing Space
      Shared Amenities
    • 227. OTHER AVAILABLE RESOURCES
      Virginia Economic Bridge, Inc.
      • Non-profit organization to promote the economic vitality of SWVA and the Commonwealth.
      • 228. Virginia’s Business Pipeline – Online searchable database of more than 24,000 Virginia based companies, business to business marketing & RFP resource
      www.VirginiaBusiness.org
      • Virginia’s Linked Workforce Showcase – Designed to create business partnerships yielding contracts between SWVA and Northern Virginia by connecting companies in specific industry sectors.
      www.LinkedWorkforceShowcase.org
    • 229. Marketing Resources
      SCORE = www.score.org
      Virginia Tourism Corporation = www.vatc.org
      Virginia Economic Bridge, Inc. = www.virginiabusiness.org
      Virginia Department of Agriculture – Virginia’s Finest Trademark = www.vdacs.virginia.gov
    • 230. “ If you don’t believe in your dreams who will?”
    • 231. Cindy Green
      Business Trainer
      276-274-2181
      cgreen@peopleinc.net
      Whatcanpeopledo.org
      Website
      http://twitter.com/CindyDGreen
      http://linkedin.com/in/cindygreen2010
      http:www.facebook.com/CindyGreen2010

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