Pcb business preso copy

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Basic business advice for those converting part time gigs into "real" business ventures. Slides are a little wordier than usual; the Podcamp Philly Version will be a little more streamlined.

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  • Pcb business preso copy

    1. 1. Business 101 for NerdsAn Ounce of Prevention is worth a pound of cure
    2. 2. You’re Passionate
    3. 3. You’ve Got Ideas
    4. 4. I can start my own Business!
    5. 5. Awesome!Let’s Get Started!
    6. 6. We’re covering• Getting Started• When does “it” become a business?• Business Models (Corp, LLC, etc.)• Scalability and Outsourcing• Avoiding Common Problems (taxes & liability)
    7. 7. Most People...• Just start working• Hand-shake deals• No written agreements• No plans to scale• Outsourcing?• Cash flow?
    8. 8. Preparing for the Best and the Worst
    9. 9. SBA Business Facts• 7 out of 10 businesses survive 2 years• 51% last 5 years• Small businesses employ about 1/ 2 the private sector employees• 40% high tech workers• 52% are home-based and 2% are franchises
    10. 10. Reasons for Success• Great Leadership/management• Attract and Attain Quality People• Disciplined Approach• Strategic use of Tech• Use of Trusted relationships (network)• Teamwork and Quality
    11. 11. Reasons for Failure• Lack of Experience • Mixing Personal and Business funds• Insufficient Capital • Poor Credit• Location issues • Competition• Poor Management • Low sales• Lack of a Plan• Unexpected growth
    12. 12. The Plan is a Map for your Business
    13. 13. Start with:• Try Writing a business plan- Easy Templates at SBA.gov• Add: List of Pros/cons• Add: People I can rely on for help• Add: Assets I’m willing to Invest• Benchmarks for Success
    14. 14. Elements of a Plan• Executive Summary: What are you going to do and why?• Market Analysis: • What else is happening here? • Blue Ocean? Played Out? • How do you have an advantage? • First Rule- Be Awesome
    15. 15. Elements Continued• Description: What your company is going to do; how it solves a problem, why it’s needed• Organization and Management: Who is responsible for what? How are they contributing and generating income?• Marketing and Sales: How are you going to find customers and how are you going to measure their value? (ROI)• Product: What are you doing to generate Money?
    16. 16. • How much money/tools/resources do you need to get started?• What do you need in reserve if those tools break/ fail/need replacement?• What kind of cash flow do you need? Be prepared for customers not paying on time, or not paying at all. How much of a “hit” can you take and still stay in business?
    17. 17. The Business of Dorian Gray?
    18. 18. Is it a BUSINESS or a Hobby?• Is this business or pleasure, or both?• Would you like to make money from this work?• Is this a side job or full time one?• What are you doing for income outside of new/social media?
    19. 19. Business• It’s about doing what you love, AND it’s about the money• You can do it and Stand Out• You are patient and willing to do WHATEVER it takes to succeed• You know what Success means to you• (Write it down, define it)
    20. 20. Keep That day job!
    21. 21. Hobby• You do it because You get something out of the process• Not cost-effective (handknitting)• Even if material cost low, time input makes it low-profit/margin• It’s enjoyable because there’s no pressure, pressure would ruin the joy
    22. 22. Who Wants to feel like this?
    23. 23. Or This?
    24. 24. Can You “Date” the job?• Is it possible to work with someone else first and learn the business?• Spoilage, theft, supply chain, cash flow, overhead, etc. All need to be factored in along with the romance of being your own boss
    25. 25. Can you form a “Guild?”
    26. 26. Steady Income Stream• It doesn’t have to be Niagara, but it should be regular and predictable• Consider when/what you need to outsource and what that’s gonna cost
    27. 27. Ten Things Everyone Forgets• State Business License• City Business License• Insurance - business, health, worker’s comp, etc.• Payment and Work Schedule: what’s due when• Taxes- Fill out the forms• Taxes- Deposits to avoid Surprises
    28. 28. 10 Things Cont.• Keep track of expenses, deductables (mileage, parking, business meals, phone, internet fees, hotels, etc.)• Separate Personal and Professional money• Business Correspondence- keep it organized, and easily retrieved• Contracts: Get it in Writing• You will get sick and/or need vacation. Plan accordingly.
    29. 29. How Locked In are You? Fully?Combination lock? Cheap plastic luggage lock?
    30. 30. First Steps:• Need to be a good accountant; separate business from personal.• Separate business account (EIN?)• Track business expenses
    31. 31. “Formal” Business• With an LLC or Inc., you separate personal from business• “Limits of Liability”- business does not bankrupt You• You are the caretaker of the “strawman”- Fiduciary responsibility
    32. 32. LLC, Incorporate, or...• Is this you alone, or will you have partners?• Will you have employees, or independent contractors?• What is your liability/growth potential?
    33. 33. Example: consulting• Project work income; freelance assignments• If income exceeds approx $10K per year, or you anticipate it will exceed 10K, you should consider treating it like a business.
    34. 34. Consulting• Time needed to generate business; marketing yourself to ensure steady and reliable income stream (Atty model)• Ability to scale and outsource- you can’t do it all, but when can you afford help?
    35. 35. If you incorporate:• The Company Corporation- fast, efficient and cheap. (works for LLC as well- please let them know I sent you)• Consider incorp in Delaware (favorable laws and tax rules)
    36. 36. What Does Your OrgChart Look Like?
    37. 37. The Tax Man
    38. 38. The Tax Man• Keep it all separate means also filing taxes for business, paying quarterly deposits, etc.• It also means shielding your assets if things go belly up.• The Tax Man is cranky if you don’t follow the rules.
    39. 39. An Ounce of Prevention...• Most small businesses fail because they were undercapitalized (keep the day job)• Be clear up front when mixing friends/family and $$$• Put it in writing (freedom of Contract)
    40. 40. Summary• Write a Plan• Use Freelance Calculators; know your “Burn rate”• Understand Money• READ
    41. 41. Recommended• The Knack: How Street Smart Entrepreneurs learn how to handle whatever comes up - Norm Burlingham, Bo Brodsky• Lost & Found - Geneen Roth• SBA Podcasts; Available Free Courses (The tech one is REALLY basic)
    42. 42. Resources• Freelance Calculator www.freelanceswitch.com/rates/• Fun Project Quote Calculator http:// devgrow.com/freelance-project-quote-estimator/• Freelance Writing http://allfreelancewriting.com/ freelance-writing-rate-calculator/• Wage Calculator http://us.thesalarycalculator.co.uk/ hourly.php
    43. 43. Questions? Whitney Hoffman ldpodcast@gmail.comtwitter:@ldpodcast, @whitneyhoffman skype: Whitney.Hoffman
    44. 44. • “The problem with the Internet startup craze isn’t that too many people are starting companies; it’s that too many people aren’t sticking with it. That’s somewhat understandable, because there are many moments that are filled with despair and agony, when you have to fire people and cancel things and deal with very difficult situations. That’s when you find out who you are and what your values are.• “So when these people sell out, even though they get fabulously rich, they’re gypping themselves out of one of the potentially most rewarding experiences of their unfolding lives. Without it, they may never know their values or how to keep their newfound wealth in perspective.” [Fortune, Jan. 24, 2000]

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