The document outlines 10 steps for starting a small business: 1) Networking and research, 2) Generating a business idea, 3) Conducting market research, 4) Calculating startup costs, 5) Creating a business plan, 6) Choosing a business location, 7) Naming the business, 8) Obtaining financing, 9) Developing a marketing strategy, and 10) Opening the business. It emphasizes the importance of planning, market research, and having a viable business idea to achieve success. Key factors that contribute to business failure are also discussed such as inadequate experience, competition, poor marketing, and lack of funding.

1. Essentials of Starting a Small Business 1 presented by Talalalthefery T Althefery

2. Goal of Attending Workshop What is your goal from this workshop? What would you like to walk away with? 2 T Althefery

4. Provide some insights into the planning process.

5. Illustrate the steps towards starting a small business.

6. Serve as a simple guide to the would be entrepreneur.3 T Althefery

8. “An independently owned & operated business, whose owners exercises close control over operations & decisions. Typically, it employs fewer than 50 employees and has revenues of less than 100 million SR.”4 T Althefery

9. Getting Started Is business ownership right for you? An “entrepreneur” one who starts own business Self-assessment questions: Are you a self-starter? How well do you plan and organize? Can you work long hours? How will the business affect your family? 5 T Althefery

10. What Type of Business Do You Want? A startup: Follow your own dream Buying an existing business: You will have current customers and a known track record of performance Franchising: Brand recognition reduces marketing costs 6 T Althefery

11. Questions?? New Business Does the idea suit your personality and interests? Will you use your own name to brand the business? Will it be financially viable? Do you have startup money to invest? What will your monthly expenses be? Is there a current need in the marketplace? Who are you competing with? 7 T Althefery

12. The Importance of Small Businesses Help Boost the Local Economy Alleviate Social Problems, namely Unemployment Provide Jobs Employee Training 8 T Althefery

13. Reasons to Start a Small Business 9 T Althefery

14. Do You Have the Passion? When it comes to your business idea, do you have PASSION for it? Do you have enough PASSION to not let anyone change your mind or discourage you about your idea? 10 T Althefery

15. What are the Potential Benefits? 11 T Althefery

16. What are the Potential Benefits? Reach your full potential Reap impressive profits Contribute to society Contribute to the economy Do what you enjoy & have fun at it Be Your Own Boss 12 T Althefery

17. What are the Potential Drawbacks? 13 T Althefery

19. Risk of losing your entire investment

20. Long hours

21. Hard work

22. Lower quality of life (until business gets established)

23. High levels of stress

24. Complete responsibility14 T Althefery

25. Step 1: Networking, Social Skills, & Information 15 T Althefery

26. STEP 2: Your Business Idea 16 T Althefery

27. Generating a Business Idea You want to start a new business, but are not sure of a business idea, it helps to consider the following: What do you like to do? What are you good at doing? What would you like to learn to do? What do you want or need to get out of the business? 17 T Althefery

28. Options For the new entrepreneur, there are some options: Buying a franchise Buying an existing business Finding a partner Finding more than one partner 18 T Althefery

29. Buying a Franchise 19 T Althefery

30. Franchise Benefits Benefits: Already Established Management Training & Support Brand-Name Appeal Standardized Quality of Goods & Services Advertising Programs Greater Chance Of Success 20 T Althefery

31. Franchise Drawbacks Drawbacks: Franchise fee & profit sharing Strict rules to follow standardized operations Restrictions on purchasing supplies Limited product line Feeling of having a “boss” 21 T Althefery

32. Buying an Existing Business 22 T Althefery

34. A successful existing business may continue to be successful

35. May already have the best location

36. Employees and suppliers are established

37. Equipment is already installed

38. Save time, costs, & energy required to launch a brand-new business

39. Seller might need to sell fast Low Price23 T Althefery

41. Previous owner created “ill-will” with customers, supplier, and/or even employees

42. Employees that come with business may not be suitable for your business

43. The location may have become unsatisfactory

44. Equipment not inefficient

45. Business maybe overpriced

46. Never been profitable24 T Althefery

47. Finding a Partner (s) 25 T Althefery

48. Benefits of Business w/ a Partner (s) Benefits: Easy to establish once good partners are found Many, different skills Larger capital Attract more investors 26 T Althefery

49. Drawbacks of Business w/ a Partner (s) Drawbacks: Not easy to find good quality partners Conflict between the partners Different personalities Profits are divided between the partners 27 T Althefery

50. Choosing a Business Structure Different legal structures protect you in different ways and offer varying tax advantages: Sole Proprietorships General Partnerships and Joint Ventures Corporations Limited Liability Company (LLCs) 28 T Althefery

51. STEP 3: Market Research 29 T Althefery

52. Market Research Before starting a business, it is highly recommended to conduct a market research to determine the following: 30 T Althefery

54. How Much: How much of it is needed?

55. Competition: What is the level of competition?

56. Price: What is the price to charge?

57. Target Market: Who is your Target Market?31 T Althefery

58. Conducting Market Research Obtaining this information maybe be done by using any of the following methods: Your own personal insight or background Primary Research Secondary Research 32 T Althefery

59. STEP 4: Calculate Startup Costs 33 T Althefery

60. Start Up Cost Before you take off, you need to know how much money it will cost to get started 34 T Althefery

62. Not your immediate competitors

63. Sources of supplies

64. They're usually looking for business

65. Business consultants

66. Can offer excellent advice

67. Franchise organizations

68. A franchiser will give plenty of data 35 T Althefery

69. STEP 5: Business Plan 36 T Althefery

70. Business Plan (BP) Simply put, a BP is nothing more than putting your plans and the steps you intend to follow in building your business in WRITING! 37 T Althefery

71. Working the Business Plan "No matter how small or large your business, you've got to aggressively plan the work- and then work the plan!" 38 T Althefery

72. Importance of a Business Plan Serves as a guide for you to follow 39 T Althefery

73. Importance of a Business Plan Will help you evaluate your business & develop sound business strategies 40 T Althefery

74. Importance of a Business Plan Investors and/or lenders will want to read the plan before supplying you with funds 41 T Althefery

75. Importance of a Business Plan Informs sales personnel, suppliers, and others about your operation and goals 42 T Althefery

76. Business Plan As an owner of a potential new business, you have to: Formulate a plan Answer all questions Write everything down 43 T Althefery

78. Answer All Questions What, Why, When, Where, Who? 45 T Althefery

79. Write Everything Down Ideas Options Plans 46 T Althefery

80. Business Plan Quote “A good plan serves as an entrepreneurial compass that keeps a business on course as it travels into an uncertain future” 47 T Althefery

81. STEP 6: Choosing a Location 48 T Althefery

82. Choosing a Location When considering an office or storefront, there are a few important things to look for: 49 T Althefery

83. Consider Rental Costs How much is it? Will it fit my budget? Is it affordable? If not, do I have other options? 50 T Althefery

84. Parking Do I have enough parking for my customers? Is it hard to find? Is it accessible? Is it convenient? 51 T Althefery

85. Accessibility Is my business easy to find? Is it on a busy street? Is it on a main street? What is it near? 52 T Althefery

86. Strength of Surrounding Business Community How strong is your business community? Will your business benefit from being there? Does it have many customers? 53 T Althefery

87. Size of the Location Is the size suitable for your business? Will there be room for expansion? 54 T Althefery

88. STEP 7: Naming Your Company 55 T Althefery

90. Your personal name

91. Location

92. Product or service

93. Let’s customers know what your company’s about56 T Althefery

95. STEP 8: Financing 58 T Althefery

96. What is Financing? Financing is one of the most important aspects of starting a new business. Your ability to provide and raise adequate capital will determine the fate of the business venture. 59 T Althefery

98. Start-up capital

99. Working capital60 T Althefery

100. Start-Up Capital Start-up capital is the money you need to get the business ready before the grand opening The type of start-up capital and the amount that you need depends on the type of business you are starting. 61 T Althefery

101. Working Capital Working capital is the money you need for the day-to-day operation of your business You must have adequate working capital in reserve at all times to keep the business going 62 T Althefery

103. Character: Credit history is very important!

104. Capacity: What is your track record of debt repayment?

105. Capital: How long will personal resources support both you and the business?

106. Conditions: Current economic conditions

107. Collateral: Assets the company pledges as a source of repayment for the loan63 T Althefery

108. STEP 9: Marketing 64 T Althefery

110. It also involves all of the activities associated with winning and retaining loyal customers65 T Althefery

112. Product

113. Price

114. Promotion

115. Place66 T Althefery

116. Marketing #1: Product Any item or service that satisfies the need of a customer What is it that you’re offering? 67 T Althefery

117. Marketing #2: Price The monetary value of a product or service in the marketplace Price affects both sales volume and profits It is an important factor in the relationship with customers Price communicates important information about the business’s overall image to customers 68 T Althefery

118. Final Price The factors to consider when determining the final price for goods and services include the following: Product/Service Costs Supply and Demand Sales Volume Competitor’s Prices Economic Conditions Seasonal Fluctuations Desired Image 69 T Althefery

120. It involves:70 T Althefery

121. Advertising Advertising is any sales presentation that is paid for by an identified sponsor 71 T Althefery

122. Advertising Constructed on a strong, positive, and well-researched product or service 72 T Althefery

124. Right on Target!73 T Althefery

126. Attract attention

127. Communicate the business’s unique selling proposition (USP)

128. Emphasize a key benefit of the product or business to the customer74 T Althefery

130. It should motivate customers to take action immediately!75 T Althefery

131. Personal Selling Involves the art of persuasive sales on a one-to-one basis 76 T Althefery

133. It should create a feeling of personal attention77 T Althefery

134. Personal Selling Must have a great deal of information, knowledge, and passion about your product in order to sell effectively 78 T Althefery

135. Publicity Publicity: Any commercial news covered by the media that boosts sales The business doest not pay for it Positive More objective than advertising Other people’s point of view and opinion 79 T Althefery

137. This has grown in importance as customers expect greater service and more convenience from businesses

138. Fast

139. Reliable

140. Available80 T Althefery

141. Channels of Distribution For consumer goods, there are four common channels of distribution: Manufacturer to Consumer Manufacturer to Retailer to Consumer Manufacturer to Wholesale to Retailer to Consumer 81 T Althefery

142. Manufacturer to Consumer Businesses that sell their goods or services directly to consumers Business that offer “services” are in this category 82 T Althefery

143. Manufacturer to Retailer to Consumer This way involves the retailer as a “middle-man” Retailer purchases products from manufacturer and sells them directly to customers 83 T Althefery

144. Manufacturer to Wholesale to Retailer to Consumer This is the most common channel of distribution Wholesalers purchase products in very large amounts and in turn sells them to retailers They have large warehouses to store supplies for retailers to purchase only what they need 84 T Althefery

145. STEP 10: Time to Open Business 85 T Althefery

146. Key to Success Always read and gain information Follow the steps Keeping in mind, there still will be many obstacles to face and overcome. 86 T Althefery

147. Successful Businesses Executives with different backgrounds Highly educated management Consultations before and after starting a business Use of professional mentors Use of budgets and controls for committing funds Establishment early on of definite, realistic objectives 87 T Althefery

148. Unsuccessful Businesses Failure was most often caused by: Inadequate training, experience, and management ability Strong competition Poor marketing techniques Shortage of start-up or working capital 88 T Althefery

150. STEP 2: Business Idea

151. STEP 3: Market Research

152. STEP 4: Calculate Startup Costs

153. STEP 5: Business Plan

154. STEP 6: Choosing a Location

155. STEP 7: Naming your Business

156. STEP 8: Financing

157. STEP 9: Marketing

158. STEP 10: Open Business89 T Althefery

159. THANK YOU FOR YOUR ATTENTION TalalAlthefery 90 T Althefery