Real diaper replanning 10.14.10

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RDIA 2010 Annual Meeting Presentation by SCORE Las Vegas - Replanning Your Business.

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Real diaper replanning 10.14.10

  1. 1. After Start Up… Replanning Your BusinessOctober, 2010Prepared for Real Diaper Business Seminars
  2. 2. Welcome… Bob Cushman SCORE Business CounselorSCORE Southern Nevada Chapter 243 1
  3. 3. The Perks of the Small Business Owner:
  4. 4. The Perks of the Real Diaper Owner:
  5. 5. About SCORE ® National Association formed in 1964; now with over 12,000 volunteers in 360 + chapters providing 500,000 counseling hours annually SBA Resource Partner Non-profit – all counselors donate their time – so all consultations are free and confidentialSCORE Southern Nevada Chapter 243 4
  6. 6. About SCORE ® Largest business Consulting organization in the World Average Chapter provides free face-to-face counseling, free e-mail business counseling, and offers regular seminars Find the office nearest you at score.org or use the site to find one of 1,100 online mentorsSCORE Southern Nevada Chapter 243 5
  7. 7. FIRST - do you need to re-organize Your Legal Business Structure?SCORE Southern Nevada Chapter 243 6
  8. 8. What are the Choices?  Proprietorship  Partnership  Corporation  Limited Liability CompanySCORE Southern Nevada Chapter 243 7
  9. 9. Proprietorship • Advantages •Easy to organize •Less reporting •One level of tax • Disadvantages •Unlimited personal liability •Termination on death of owner •Difficult to raise capitalSCORE Southern Nevada Chapter 243 8
  10. 10. Partnership•Advantages •Pooling of resources & talents •State registration normally not required•Disadvantages •Unlimited personal liability •Partner conflict •Death of a partner causes dissolutionSCORE Southern Nevada Chapter 243 9
  11. 11. Limited Liability Partnership•Advantages •Pooling of resources & talents •Limited personal liability•Disadvantages •Partner conflict •Death of a partner causes dissolutionSCORE Southern Nevada Chapter 243 10
  12. 12. C-Corporation (Federal Registration) •Advantages •Limited liability of shareholders •Survives shareholders •Transfer of ownership •Disadvantages •More complex •More reporting •Possible double taxation SCORE Southern Nevada Chapter 243 11
  13. 13. S-Corporation (Federal Registration)Advantages •Same as C-Corporation except one level of taxDisadvantages •No double taxation but no retention of profits •Generally only people can be owners •Limited to one class of stock SCORE Southern Nevada Chapter 243 12
  14. 14. Limited Liability Company •Advantages •Flexible ownership and capital structure •Limited personal liability •Tax choices complex •Losses may offset other income (new) •Disadvantages •No retention of profits •Complex Operating Agreement SCORE Southern Nevada Chapter 243 13
  15. 15. But they don’t stay the same…PAUL D. GARNETT AND ALICIA GARNETT, Petitioners v.COMMISSIONER OF INTERNAL REVENUEFiled June 30, 2009.The Garnett’s owned interests in L.L.P.s, L.L.C.s, andtenancies in common. The parties request a ruling asto whether their interests are subject to the rule ofsec. 469(h)(2), I.R.C., which treats losses from an“interest in a limited partnership as a limitedpartner” as presumptively passive.Held: Because they did not hold their interests inthe L.L.P.s or L.L.C.s as “limited partners”, theseinterests are not subject to the rule of sec.469(h)(2), I.R.C. SCORE Southern Nevada Chapter 243 14
  16. 16. BUT THEY DON’T STAY THE SAME… The Small Business Jobs and Credit Act provides an opportunity to avoid taxes. Individuals who acquire stock in small businesses after October 1 pay NO capital gains if they hold the stock for more than five years. However, it only applies to C corporations and stock has to be acquired by January 1, 2011 — so act fast.SCORE Southern Nevada Chapter 243 15
  17. 17. Practical Differences  Proprietorship $14,000 13.3%  Partnership $82,500 23.6%  Corporation $28,600 17.5%  S-Corp $51,200 26.9% Limited Liability CompanySCORE Southern Nevada Chapter 243 16
  18. 18. Outline of other considerations: 1. Government 2. Facility 3. Personnel 4. Legal 5. Accounting 6. Banking 7. Risk Management 8. Computer and Telephone 9. Public Relations 10. SuppliersSCORE Southern Nevada Chapter 243 17
  19. 19. Government Legal Structure of Business  Government Relations  New Hire advantages  Independent ContractorsSCORE Southern Nevada Chapter 243 18
  20. 20. Facility (physical location)  Stay at Location with rent reduction?  Move to get lower rent?  Lease Restrictions  Build-out Allowances  Signage  Lease OptionsSCORE Southern Nevada Chapter 243 19
  21. 21. Facility (Internet Presence)  Stay at One Website with upgrades?  Move to Multiple Websites?  Traffic studies (Alexa, etc.)  SEO studies  Content Restrictions  CompetitorsSCORE Southern Nevada Chapter 243 20
  22. 22. Personnel  Contracts and Agreements  Leased Personnel  Upgrading Job Descriptions  Policy & Procedure Manuals  Personnel Training Performance of the process Marketing and SalesSCORE Southern Nevada Chapter 243 21
  23. 23. Legal and Lawyers  Business Structure  Contracts, Guarantees and Agreements  Intellectual Property  Tax Law  LeasesSCORE Southern Nevada Chapter 243 22
  24. 24. Accounting and CPA’s CASH versus ACCRUAL  Amortization & Depreciation  Business Structure  Tax changes  Accounting system  Bookkeeping  Tax strategy/Return preparationSCORE Southern Nevada Chapter 243 23
  25. 25. Banking and Loan Officers  Establish relationship with a Second Bank – Payroll and Payroll Tax Account  SBA approved program lender – Preferred lender  Credit Card processing  Lines of CreditSCORE Southern Nevada Chapter 243 24
  26. 26. Risk Management and Insurance Premises - property and liability Directors & Officers Product Liability Errors and Omissions Contents - self and others Automotive Employee BondingSCORE Southern Nevada Chapter 243 25
  27. 27. Computers and Telephones  Domain and Website  Website Maintenance  Backup  Social Networking  Phone Landlines  Cell Phones and Smart Phones  Answering SystemsSCORE Southern Nevada Chapter 243 26
  28. 28. Public and Press Relations  Disposable Diaper problems  Landfill problems  Diaper Rash problems  Social Networking  Local Press  Units of larger papersSCORE Southern Nevada Chapter 243 27
  29. 29. Suppliers NEW SUPPLIERS Credit terms/Discounts Assured prices Time line Business planSCORE Southern Nevada Chapter 243 28
  30. 30. A Resource to MOVE FORWARD… A NEW BUSINESS PLANSCORE Southern Nevada Chapter 243 29
  31. 31. The Business Plan:Your Roadmap to Change • Do I really need it? • Do I really have to write it?
  32. 32. The Business Plan is a:  Document that sells and explains  Discussion of future plans  Demonstration ofachievability  Benchmark for measuring progressSCORE Southern Nevada Chapter 243 31
  33. 33. Using The Plan: External Bankfinancing Non-bank financing  Investors  Landlords  SuppliersSCORE Southern Nevada Chapter 243 32
  34. 34. Using The Plan: Internal  A “Sanity” check  Forces critical thinking  Allows goals to be set  Commits participants  Basis for course correctionSCORE Southern Nevada Chapter 243 33
  35. 35. Required Plan Information  Company Basics  Personnel Resume’s  Marketing Plans  Product/Service Description  Production/Logistics  Forecast in Units/DollarsSCORE Southern Nevada Chapter 243 34
  36. 36. Plan Length Narrative: Five to fifteen pages of text Financials:  Longer than the textSCORE Southern Nevada Chapter 243 35
  37. 37. Sample Table of Contents Executive Summary (Write this last) Company History Market Competition Marketing Processing Financials AppendicesSCORE Southern Nevada Chapter 243 36
  38. 38. Valuable Plan Contents Market Overall Demographics – population trends Internet Demographics – usage trends County and Zip Code Demographics Competition How are parents deciding now? Where are they buying now? Include Competitor Information SCORE Southern Nevada Chapter 243 37
  39. 39. Marketing Plan• Sales Projections (by month for years 1-2)• Advertising and its cycles• Promotion Programs and seasonalitySCORE Southern Nevada Chapter 243 38
  40. 40. A BUSINESS PLAN TOOL:ULTIMATE BUSINESS PLANNER ® SCORE evaluated many and choose this because of ease of use and for the sample plans that are included. Because SCORE is a non-profit, we can sell it for less. Because SCORE is a non-profit, we aren’t required to charge sales tax. SCORE Southern Nevada Chapter 243 39
  41. 41. Resources Chamber(s) of Commerce County and Municipal Offices Trade Associations Data bases -D&B, List Brokers Bureau of Census, Bureau of Labor Statistics Non-competitors (Mentors, Colleagues, Coaches) Public Library SCORE Southern Nevada Chapter 243 40
  42. 42. SOME USEFUL WEBSITES SCORE National www.score.org SBA www.sba.gov US Government www.firstgov.gov Business Plan www.scorelv.org Legal advice www.businesslaw.com IRS www.irs.gov Intuit www.quicken.com SCORE Southern Nevada Chapter 243 41
  43. 43. Next Steps•Focus on your current needs•Develop your Business Plan•Use FREE SCORE CounselingSCORE Southern Nevada Chapter 243 42
  44. 44. GOOD LUCK!SCORE Southern Nevada Chapter 243 43

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