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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.

Business Basics1052010 Business Basics1052010 Presentation Transcript

  • How to Build a Successful Business
    October 5, 2010
  • Agenda
    • Business Plan
    Financing Your Business
    Customer Service in Business
    Promotion and Branding through Social Media
    Resources for Businesses in Virginia
  • Why do I need a business plan?
  • 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?”
  • 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
    • Business Assessment
    • Objectives, Strategies and Plans
  • What goes into a Business Plan?
    • Executive Summary
    • Business Description
    • Operations and Management
    • Product/Service
    • Marketing Plan
    • Financial Statements and Projections
    • Appendix
  • 7
    Business Plan Financial Section
    Financial Plan
    Your financial plan will include details on the following:
    • Balance Sheet
    • Income Statement
    • Cash flow forecast
    • Personal Financial Statement
    It is important for your plan to be realistic and reviewed regularly – make changes whenever necessary.
  • Balance Sheet
  • Income Statement
  • Cash Flow Forecast
  • Business Success Rates
    “Writing a business plan increases
    your chances of success by 25%.”
  • 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
  • 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
  • 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
  • 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
    • If no employees no additional payroll reporting or unemployment taxes
    • Owner reports profits & losses on owners 1040
    • Unlimited personal liability
    • 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
    • Profits are shared according to their agreement
    • Disadvantages
    • Each partner is personally liable for entire business
    • No real advantage over an LLC
    • 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
    • C” Corporation
    • Designed for larger businesses or businesses that intend on fast growth and want to reinvest earnings
    • Stockholders not personally liable for company debts
    • More expensive to setup than others
    • Double taxation can occur
    • “S” Corporation
    • Is a tax election, not legal entity
    • Profits & Losses passed through to owners
    • Double taxation avoided
    • Other restrictions
  • Ownership Structures – Determine What is Right for Your Business
    Limited Liability Company (LLC)
    • Advantages
    • Owners not responsible for debts of the business
    • Easier and less expensive to setup than corporation
    • Is a legal entity, not a tax entity
    • Single person LLC is taxed as Sole Proprietor
    • Multiple person LLC is taxed as Partnership
    • Or can elect to be taxed as corporation
    • Good for holding real estate
    • Disadvantages
    • 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
  • Starting a New Business
    • Establish a business checking account
    • Set up credit card processing (if desired)
    • Fund the business (owner capital or loans)
    • Decide on accounting method (cash or accrual)
    • Establish books for the business (computerized preferred)
    • Obtain liability insurance, renters insurance, workers compensation, etc.
    • Hire employees and set up payroll records
    • 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
    • Business expansions that are poorly planned and not appropriately financed
    • Poor Management
    • The Business offers products and services that nobody wants or cannot afford
    • Inability to adapt to a changing environment
    • Failing to control costs
    • 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.
  • Do it Right From the Start
  • Financing Your Business
  • How do you finance your business?
    There are two main ways to finance your business
    • Equity
    • Debt
  • 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:
    • Personal savings
    • Friends or relatives
    • Government
    • “Angel” or informal investors
    Why invest your Money in the Business?
    • Least costly source of funds
    • You are more likely to get a loan with adequate equity in your business
    • 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.
    • Credit Cards – to cover and track small expenses or everyday business expenses.
    • Suppliers’ Credit – sometimes a very cheap source of financing, do not overlook the value of this source.
    • Business Term Loan – used to purchase long term assets required to operate your business.
    • Leasing – used to obtain assets to run your business, may provide more flexible options than traditional loans.
    • Government Programs – there are many government programs to support Small Business. Investigate all options.
  • Sources of Financing
    • Credit Cards
    • Most expensive
    • Credit lines may be cut unexpectedly
    • Most risk
    • Personal Savings
    • Lowest expense
    • Lowest risk
    • Do not use all of your savings for start up costs
    • Bank financing
    • Low cost
    • Shorter term
    • Higher equity requirements
    • Small Business Administration guaranteed loans
    • Low cost
    • Longer terms
    • Reduced equity requirements
    • Lower risk to partner Banks
    • Multiple plans to address real estate, equipment, and working capital needs
    • Non-profit community lenders
  • People Incorporated
    Small Business Loans
    • Loans up to $200,000
    • Interest rate 3% above prime
    • Collateral required
    Ninth District Funds
    • Tourism Related Business Loans
    • Interest Rate=Prime
    • Must have real estate for collateral
  • CUSTOMER SERVICE
    IN BUSINESS
    • 68% of people who leave a business say they do because of poor customer service
    • It costs 5 to 6 times more to attract new customers than to keep existing ones
    • Companies can boost profits from 25 to 125 percent by retaining 5 percent more existing customers
    • 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
  • Know your customer
  • 3 Faces of Customers(External and Internal)
    1. *Advocate ---
    2. *Apathetic --------------
    3. *Assassin -----
    *Satisfaction
    Chris Denove and James D. Power IV
  • Become an Advocate
    One that supports or promotes the interests of another
  • 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.
  • ATTITUDE
    The greatest discovery of my generation
    is that a human being can alter his life by
    altering his attitude.
    William James (1842-1910)
  • Be Happy!
  • Can You Hear Me Now?
  • The Variations of Body Language
  • 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
  • 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…
  • 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
  • Times Have Changed
  • 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.
  • What brand name comes to mind when I say ‘hamburger’?
  • What brand name comes to mind when I say ‘soft drink’?
  • What brand name comes to mind when people think of your product or service?
    Your Name/Company?
    Or Your Competitor’s?
  • Time to Re-think Your Marketing Strategy!
    Old/Outbound Marketing
    • TV Radio Ads
    • Print Ads
    • Direct Mail
    • Telemarketing
    New/Inbound Marketing
    • Social Media
    • SEO
    • Blogging
    • Online Videos
    An Interaction
    An Interruption
  • So what’s Social Media
  • 225 million streams/day
    It would take 412.3 years to watch every YouTube video
    2 BillionYouTube videos viewed per day
  • Your Audience - the World
  • 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
  • More than 1.5 million local businesses have active Pages on Facebook.
  • 65 million users
    Approximately 1 joins every second
    ½ Users are outside US
    • “A professional network of trusted contacts”.
    • Execs in all of the Fortune 500
    • 60% of incomes over $90,000
    • ¼ are senior executives
    • Segments:
    • Executives: 28%
    • Networkers/Consultants: 30%
    • Late Adopters: 22%
    • Exploring Options: 20%
    • People with incomes over $150,000 of $200K + were seven times more likely to have 150 plus connections than lower income users.
  • 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
  • 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.
  • Who’s Got the Time?
  • 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
    • But they do require regular check-ins and updates
  • Who’s Got the Time?
    • None of these tools take much time to set up
    • But they do require regular check-ins and updates
    • You can’t just “set it and forget it.”
  • How People Share Content on the Web
  • 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).
  • 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.
  • Radar Types/Track Branding
    Google Alerts
    Search.twitter
    Tweetbeep.com
  • Google Alerts
  • 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
  • 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.
    • Create a Business One Stop account.
    • Answer a few brief questions about your business.
    • 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
  • Business Information Services
    To help businesses get started and to grow.
    Formation Assistance
    • Virginia Business Information Center (VBIC) 1-866-248-8814
    • Bridges the 26 state agencies, over 100 programs and over 300 forms that may touch a Virginia business
    • Virginia Central Business Portal (www.business.virginia.gov)
    • Covers registration, taxation, licensing
    • Interactive Business Plan CD
    • 5 Step process to a business plan
    • Entrepreneur Express Events
    • 150 Events – 7,500 Trained
  • Ask VBIC = 866-248-8814
  • Growing Your $ales - State
    • Governor’s Executive Order 33
    • $5 billion market
    • Access to buyers from 171 state agencies
    • Additional $5 billion from local governments
    • 575 localities using eVA system.
    • Small Business Goal – 40%
    • Over 41,490 registered suppliers
    • Over 13,065 participating buyers
    Ask VBIC = 866-248-8814
  • 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
  • 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
  • Entrepreneur Workshops
    • Launched October 2006
    • Partnership with Service Providers and localities
    • Provide information on available resources to start and grow a business
    • Statewide Program
    • Free – ½ Day Session
    • Over 8,000 reached
    • www.vastartup.org
  • Social Media WorkshopsYou-Link-Twit-Face
    Upcoming Events:
    • September 23 - Bristol
    • October 14 – Scott County
    • November 1 – Floyd County
    • November 16 - Bristol
    Register : www.vastartup.org
  • Virginia JobsInvestment Program
    • Workforce recruiting and training
    • Create minimum 25 net new jobs within 12 months and capital investment of at least $1,000,000
    • Minimum entry-level wage of $10.00/hr required. Only full-time jobs are eligible.
    • Small business workforce recruiting and training
    • 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
    • Minimum entry-level wage of $10.00/hr required. Only full-time jobs are eligible.
    • Retraining
    • Small businesses that are retooling and installing new technologies
    • 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
  • OTHER AVAILABLE RESOURCES
    • Virginia Department of Labor – Apprenticeship Program
    • Combination of on-the-job training and classroom instruction.
    • Advantage of skilled workforce and reduced turnover.
    • http://www.doli.virginia.gov
    • Virginia Department of Agriculture & Consumer Affairs
    • Virginia’s Finest Trademark = Marketing program that promotes foods and foods products grown in Virginia.
    • Facilitates expansion of agricultural businesses.
    http://www.vdacs.virginia.gov
  • OTHER AVAILABLE RESOURCES
    Virginia Business Incubator
    • 9 Available in Southwest Virginia
    • 30 Within Commonwealth
    • Business Incubator Benefits
    • Facility designed to assist businesses to become established and sustainable
    • Benefits
    • Shared premises and business services
    • Business advice and mentoring assistance
    • More details - http://www.vbia.org/
  • Business Incubator
    Commercial Kitchen
    Light Manufacturing Space
    Shared Amenities
  • OTHER AVAILABLE RESOURCES
    Virginia Economic Bridge, Inc.
    • Non-profit organization to promote the economic vitality of SWVA and the Commonwealth.
    • 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
  • 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
  • “ If you don’t believe in your dreams who will?”
  • 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