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From Boots To Business - Introduction to business ownership
- 1. Introduction to Business Ownership
- 2. Objective Provide an overview of the entrepreneurial process, what it means to be an entrepreneur, the opportunities and challenges and military skills and attributes that transfer over to entrepreneurship.
- 3. About BOOTS TO BUSINESS B2B is an introduction to entrepreneurship course presented by the SBA and its partners. This course should: • Give you an overview of what it takes to start a small business • Introduce you to SBA and its partner resources that can assist you with starting or growing your business • Introduce you to B2B follow-on courses
- 4. Agenda • What is Entrepreneurship? • Connecting Service, to Business Ownership • Understanding Paths to Business Ownership
- 5. What Makes an Entrepreneur?
- 6. • To organize, manage and assume the risks of a business… • A way of thinking… • An approach to work and life… Entrepreneurship is about identifying and enacting “alternative paths to the future” - Richard Branson,VirginAtlantic Group What is Entrepreneurship?
- 7. Let’s Talk • Is there a prototype of the entrepreneur? • Are entrepreneurs different from managers? • Is there a better time to pursue entrepreneurship? • What makes for a successful entrepreneur? • Can people be taught to be entrepreneurs?
- 8. Veterans & Business Ownership James Kimsey, USA Phil Knight, USA Michael Ilitch, USMC Bob Parsons, USMC S.Truett Cathy, USA Fred Smith, USMC George Steinbrenner, USAF David Liniger, USAF
- 9. Veterans & Business Ownership EntrepreneurVeteran • Mission-Focus • Critical Thinking • Problem Solving • Team Management • Flexible • Resilience • Persistence • Ethics • Reliability
- 10. Veterans & Business Ownership Veterans represent 7.3% of the U.S. population, and own 2.5 million U.S. small businesses* • Employ over 5 million Americans • Pay wages in excess of $210 billion • Generate $1.1 trillion in receipt • Produce $1.7 trillion in U.S. GDP * 2014 Census
- 12. Paths to Business Ownership Generally, new business ownership takes one of the following forms: • New Business Creation • Purchase an Existing Business • Employee-to-Ownership • Family Business (Succession) • Franchising
- 13. NEW BUSINESS CREATION • Your own idea • Higher risk - higher reward • Greatest control • Lifestyle implications: • Married to the business • Funding often difficult • Business processes and infrastructure must be created • 500 Companies Paths to Business Ownership FLY-BY COFFEE USAF Veterans
- 14. • Do your research! • Inherit the good and the bad Brand, staff, customers, and reputation • Established processes and relationships • Negotiate the purchase method of assets to reduce risk • Get professional help to assess the deal! Paths to Business Ownership PURCHASE AN EXISTING BUSINESS PAVLIC’S FLOWERS & GIFTS USAF Veterans
- 15. Paths to Business Ownership FAMILY BUSINESS • Family history intersects business history • Change can be difficult to implement • Relationships can be strained • The “burden” is more than the business • Roles and responsibilities should be agreed upon in writing IRON DOG USA Military Spouse & Family
- 16. Paths to Business Ownership EMPLOYEE-TO-OWNERSHIP • Lower personal risk • Great way to learn the industry • Rewards of business ownership delayed • Less control = Limited autonomy • Terms are negotiable Myrtel’s Gifts & Awards USN Service-Disabled Veteran
- 17. Paths: Franchising “An authorization granted by a company to a business, allowing them to carry out specified commercial activities or acting as an agent for the company's products or services.” Fresh Coat Painters of Pensacola, USMC veterans
- 18. Paths: Franchising Hundreds of options across a wide variety of industries and at varying costs!
- 19. Click to edit Master title stylePaths: Franchising • Proven idea with established processes and suppliers • Recognized brand • Training available • Group advertising power • Economies of scale • Accounting/management support • Lower risk than a brand new business idea Advantages
- 20. Click to edit Master title stylePaths: Franchising • Franchise fee upfront - Veterans may get a discount! • Royalties due for the length of ownership • Business/selling restrictions • Lower level of control • Supplies only from franchisor • May not have territorial exclusivity / protection • Lower risk = lower profits • Rogue franchisees Disadvantage s
- 21. • Use what you have learned in the military Traits and skills are the same ones that will make you a successful business owner • Ride the wave of Veteran Entrepreneurship in this country • Each form of ownership is not better or worse, just different, depending on what you want • Do Your Research! Key Takeaways
- 22. Join the B2B Community On your laptop, tablet or Smart Phone: • Go to Boots To Business Facebook at https://www.facebook.com/FromBootsToBusin ess/ • Sign-up for B2B follow-on training opportunities
Editor's Notes
- Instructor Notes: Provide background on yourself to establish a connection and credibility. Describe some of your experiences that make you qualified to teach this content. This is where you establish rapport and credibility so consider your posture, speaking rate, etc. Mention that you have saved plenty of time for Q&A at the end of each module, so unless its something that needs immediate clarification request that they hold questions and comments until the end.
- Instructor Notes:
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- Instructor Notes: Get them engaged. You want them active and not daydreaming. Ask them to name a few of their favorite entrepreneurs. They need not be famous and you can ask them to explain why someone is their favorite. Then, ask them to suggest characteristics or traits of entrepreneurs. Chances are they named some characteristics from the next slide. If they mention any of the same characteristics that make good service members, stop after a few and note that these are often the same characteristics ( that make both good service members and entrepreneurs).
- Instructor Notes: These are some more common ways to think about entrepreneurship outside of the text book definitions on the previous slides. The last definition is one from Richard Branson and highlights an interesting way to think about entrepreneurship.
- Instructor Notes: These are questions to continue to engage them. Some of them you may have touched on in prior slides so you can pick a couple to discuss. The most important one to touch on is the last one. The answer is “yes” or why would we be here. We want them to understand that we can teach them the steps and skills involved in launching a venture, but we can’t teach the passion or the drive you need to take action. You can also take this time to ask some of the service members their ideas. You will get into this some more in Module 2 but if they don’t have an idea some good places to get started are asking yourself, What do you know? What are you good at? What is your passion? Integrate comments/Reference participant’s personal examples from slide 6
- Instructor Notes: Read the quote and ask what all these companies have in common. They will likely suggest things that are true (e.g., large companies, recognized brands, industry leaders, etc). Let them go on for a bit and then reveal that each one was founded by a vet. Tell them that VOBs have a 5-year mortality rate that far exceeds non VOBs. Begin to talk about the fact that many of the skills that make successful service members are the same ones that make successful entrepreneurs.
- Instructor Notes: These are transferrable skills that a military member brings to a civilian career. Questions – “Are there any other characteristics or skills that you can think of?”
- Instructor Notes: This slide provides support for what you just told them. Let this sink in and reinforce that their service is an advantage. You want to see them start to believe they can do this too. It is not so much that you are giving them the information here, but that you are presenting it in a way that lightbulbs start going on and they start to buy into the fact that this is a realistic outcome for them. You can also bring in some examples of veteran business owners in your local area that they may know of. Localization Option: Possibly add local/state information
- Do a quick poll and ask how many are considering franchising, new ventures, buying a company, or entering a family biz. On the next slides you should try to relate personal stories whenever you can to make the points more real. Keep them relatively short and interesting though.
- Instructor Notes: Go through the list and mention a couple that stood out among the group as options they are pursuing. There is no right or wrong way, just options. Each option comes with pros and cons. Not-for-Profit/Social Venture- dispel myth that there is a grant in existence for every type of businesses Discuss work/buy for equity concept under the “Purchasing an Existing Business”bullet
- Instructor Notes: ABOUT THE PHOTO: Two US Air Force personnel own and operate this 2-sided fixed trailer near Tyndall AFB, Panama City, FL This is likely the most common one and the one everyone thinks about. Relate a story about a new venture you started, worked with, advised, or are familiar with. Talk about pros and cons. Its not ‘better or worse’ than any other, it just presents a unique set of challenges and opportunities. It is worth talking about cooperatives as well as a form of new venture creation. Talk about how Co-ops are owned and controlled by their employees or members. An example on the membership side you can use is a credit union.
- Instructor Notes: ABOUT THE PHOTO: Two US Air Force retirees bought a well-established florist near Eglin AFB, Ft Walton Beach, FL The main point here is to help them understand the importance of valuation and due diligence. Relating a story of a transaction you were part of or are familiar with is helpful here. If you are comfortable getting into the nuances of stack sales vs. asset sales as an example of the last bullet that is helpful as well. Mention the opportunity to buy into an existing business as a partial owner
- Instructor Notes: ABOUT THE PHOTO: An Army spouse took over management of her family’s heavy equipment and clearing operation in Mississppi You should cover some of the implications that come with operating a family business and emphasize that just because it is a family business doesn’t mean that each individual should not have a very defined role. If there is a service member who has operated in a family business, give them an opportunity to share a story or two about their experiences with the class. Make mention that each family business has its own identity and each family member may have a unique personality/identity/management style
- Instructor Notes: ABOUT THE PHOTO: A service disabled Senior Master Chief worked in and then bought a small awards business from the owner near NS Mayport in Jacksonville Sometimes employees may work for a business with the intention of eventually buying out the business. This form of transition to business ownership can be a good way for veterans to learn and understand the business and industry before having total control of the business. Often times, a business owner will be open to this type of transition plan if they are looking to retire and do not have someone planned to take-over the business. Although this offers less autonomy starting out, it is a good way to slowly transition into having 100% control of the business. Relate a personal story if you have one, if not give an example that you have that illustrates the point.
- Instructor Notes: Again, not a better or worse path to ownership, just different. Mention that not all franchises are created equal and due diligence and challenging assumptions is important. There is a range of what each one requires in terms of liquidity, up front investment, etc.
- Instructor Notes: Discuss the franchising process and how it works. Pros vs. Cons Highlight personal story if possible It is important to fully understand key details surrounding owning a franchise, including the structure and requirements. All potential franchisees are required to receive a Uniform Franchise Disclosure Document A legal adocument presented to prospective buyers of franchises in the pre-sale disclosure process Covers 23 key items allowing an individual to make an informed decision before investing Best Practices to highlight: Connect with current franchisees before moving forward. Prior to executing a franchise agreement, have lawyer review agreement. Every agreement is different. Mention % of sales, advertising costs, supply chain costs Leverage local resources (SBA, SCORE,VBOC, etc.) to drive sound decision making Ask participants: “How might franchises target vets? “How might franchises positively or negatively exploit veteran status?”
- Instructor Notes: Discuss the franchising process and how it works. Pros vs. Cons Highlight personal story if possible It is important to fully understand key details surrounding owning a franchise, including the structure and requirements. All potential franchisees are required to receive a Uniform Franchise Disclosure Document A legal adocument presented to prospective buyers of franchises in the pre-sale disclosure process Covers 23 key items allowing an individual to make an informed decision before investing Best Practices to highlight: Connect with current franchisees before moving forward. Prior to executing a franchise agreement, have lawyer review agreement. Every agreement is different. Mention % of sales, advertising costs, supply chain costs Leverage local resources (SBA, SCORE,VBOC, etc.) to drive sound decision making Ask participants: “How might franchises target vets? “How might franchises positively or negatively exploit veteran status?”
- Instructor Notes: You can use this slide to recap the module. You should really drill home the point that this is a path that veterans have gone down successfully for many years. Although it is difficult and there is risk involved, between the skills and attributes you have gained in the military paired with this training, you will have a strong foundation to build from.
- Instructor Notes: Slide that shows attendees that did not create a profile before class how to quickly create one. Creating a profile allows attendees: To download or access PDF versions of the slide presentations (in student resources section of page at https://sbavets.com//, only available to those who have a profile and are logged in). Faster access to B2B follow-on courses provided by IVMF Syracuse and Mississippi State Universities.