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Owning Your Own Business

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Options for owning your own business

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Owning Your Own Business

  1. 1. Owning Your Own Business www.on-target.com (800) 720-0131 For more information about our company, please visit our website @ Or call us at
  2. 2. Owning Your own business <ul><li>Exploring Yours Options </li></ul>There are 3 popular ways to own your own business <ul><li>1st Option: Start your own business </li></ul><ul><li>2nd Option: Buy an existing business </li></ul><ul><li>3rd Option: Buy a Franchise </li></ul>
  3. 3. 1 st Option <ul><li>Start Your Own Business </li></ul><ul><li>Should I or shouldn’t I? </li></ul><ul><li>Financial Issues </li></ul><ul><li>Do your homework </li></ul><ul><li>Talk to professionals </li></ul><ul><li>Setting up your own business </li></ul>
  4. 4. Start your own business <ul><li>Should I or shouldn’t I? </li></ul><ul><li>What Skills Do I Need? </li></ul><ul><li>Business experience </li></ul><ul><li>Management skills </li></ul><ul><li>Sales skills </li></ul><ul><li>People skills </li></ul>
  5. 5. <ul><li>Ability to work independently </li></ul><ul><li>Work well under stress </li></ul><ul><li>Discipline </li></ul><ul><li>Tenacity </li></ul><ul><li>Optimism </li></ul><ul><li>Ability to work with people </li></ul>Start your own business <ul><li>Should I or shouldn’t I? </li></ul><ul><li>What personal traits do I need? </li></ul>
  6. 6. <ul><li>Loss of money </li></ul><ul><li>Loss of your home </li></ul><ul><li>Unreliable income </li></ul><ul><li>Business could fail </li></ul><ul><li>Loss of your current job </li></ul><ul><li>Personal liability </li></ul>Start your own business <ul><li>Should I or shouldn’t I? </li></ul><ul><li>What are the Risks? </li></ul>
  7. 7. <ul><li>Financial Independence </li></ul><ul><li>Freedom to come and go as you please </li></ul><ul><li>Implementing your own ideas </li></ul><ul><li>Can’t be fired or laid off </li></ul><ul><li>Personal satisfaction </li></ul><ul><li>You can sell the business or cash out </li></ul><ul><li>Being your own boss </li></ul>Start your own business <ul><li>Should I or shouldn’t I? </li></ul><ul><li>What are the Rewards? </li></ul>
  8. 8. <ul><li>Security </li></ul><ul><li>Benefits </li></ul><ul><li>Regular hours </li></ul><ul><li>Less stress </li></ul><ul><li>Regular paycheck </li></ul><ul><li>Less responsibility </li></ul>Start your own business <ul><li>Should I or shouldn’t I? </li></ul><ul><li>Am I Better Off Working a Job? </li></ul>
  9. 9. <ul><li>Cash </li></ul><ul><li>Insurance cash value </li></ul><ul><li>Home equity </li></ul><ul><li>Savings </li></ul><ul><li>401 (k) </li></ul><ul><li>Saleable personal property </li></ul><ul><li>Friends and Family </li></ul>Start your own business <ul><li>Financial Issues? </li></ul><ul><li>Determine How Much Capital You Have Available </li></ul>
  10. 10. <ul><ul><li>Lease deposits </li></ul></ul><ul><ul><li>Insurance </li></ul></ul><ul><ul><li>Furniture & fixtures </li></ul></ul><ul><ul><li>Inventory </li></ul></ul><ul><ul><li>Office equipment </li></ul></ul><ul><ul><li>Supplies </li></ul></ul><ul><ul><li>Website </li></ul></ul><ul><ul><li>Licenses & permits </li></ul></ul><ul><ul><li>Working capital </li></ul></ul><ul><ul><li>Computers </li></ul></ul>Start your own business <ul><li>Financial Issues? </li></ul><ul><li>What Capital Do I need? </li></ul>
  11. 11. <ul><li>Identify several similar companies </li></ul><ul><li>Observe space elements </li></ul><ul><li>See how they advertise </li></ul><ul><li>Talk to sales staff and managers </li></ul><ul><li>Observe their sales methods </li></ul><ul><li>systems & procedures </li></ul><ul><li>Visit their websites </li></ul><ul><li>Go in as customer </li></ul>Start your own business <ul><li>Do Your Homework </li></ul><ul><li>Visit Similar Businesses </li></ul>
  12. 12. <ul><li>Do local and national searches of specific companies </li></ul><ul><li>Google searches on the category of business </li></ul><ul><li>Obtain information from sites’ business opportunities or franchises </li></ul><ul><li>Obtain “Owning a Business” materials by web-search </li></ul><ul><li>Find out if they have “Brick and Click” strategies </li></ul><ul><li>Visit SBA Internet site - WWW.SBA.GOV </li></ul><ul><li>Obtain information on financing availabilities for starting a business. </li></ul>Start your own business <ul><li>Do Your Homework </li></ul><ul><li>Search The Internet </li></ul>
  13. 13. <ul><li>Find out if it’s what you thought it would be </li></ul><ul><li>Learn the ideal layout </li></ul><ul><li>Learn how the business works </li></ul><ul><li>Learn the marketing and advertising </li></ul><ul><li>Learn the product technology </li></ul><ul><li>Learn the identity of vendors and suppliers </li></ul>Start your own business <ul><li>Do Your Homework </li></ul><ul><li>Work for Someone in the same business </li></ul>
  14. 14. <ul><li>Identify how your business would be </li></ul><ul><li>similar and how you would differentiate </li></ul><ul><li>Work there part-time while you </li></ul><ul><li>continue to retain your present job </li></ul><ul><li>After working there, you may decide </li></ul><ul><li>you don’t like it </li></ul><ul><li>Understand the start-up cost </li></ul>Start your own business <ul><li>Do Your Homework </li></ul><ul><li>Work for Someone in the same business </li></ul>
  15. 15. <ul><li>Do this prior to making the decision to own your own business </li></ul><ul><li>Read everything possible on business ownership </li></ul><ul><li>You need as much education on business as possible </li></ul><ul><li>Running a business incorporates </li></ul><ul><li>concept development, finance, </li></ul><ul><li>management, marketing, sales, </li></ul><ul><li>negotiating, legal; all important to success </li></ul>Start your own business <ul><li>Do Your Homework </li></ul><ul><li>Attend business classes </li></ul>
  16. 16. <ul><li>Break even analysis </li></ul><ul><li>Create the roadmap </li></ul><ul><li>Identify your capital needs to start up </li></ul><ul><li>Lay out your plans </li></ul><ul><li>Bankers or investors will want to see it </li></ul><ul><li>Why you need it </li></ul><ul><li>Create a three (3) year cash flow analysis </li></ul><ul><li>What is a business plan? </li></ul>Start your own business <ul><li>Do Your Homework </li></ul><ul><li>Create a Business plan </li></ul>
  17. 17. Start your own business <ul><li>Do Your Homework </li></ul><ul><li>Do a Three (3) Year Cash Flow Analysis </li></ul><ul><li>Estimate operating costs </li></ul><ul><li>Determine return on investment </li></ul><ul><li>Determine amount of loss to “break even” </li></ul><ul><li>Estimate Labor Cost </li></ul><ul><li>Estimate monthly profit or losses </li></ul><ul><li>Estimate cost of goods </li></ul><ul><li>Estimate Sales </li></ul>
  18. 18. <ul><li>Legal issues </li></ul><ul><li>Review leases and contracts </li></ul><ul><li>Trademark protection </li></ul><ul><li>Licenses and permits </li></ul><ul><li>Form a corporation </li></ul>Start your own business <ul><li>Talk To Professionals </li></ul><ul><li>Lawyer </li></ul>
  19. 19. <ul><li>Set up accounting system </li></ul><ul><li>Review monthly sales tax </li></ul><ul><li>Monthly financial statements </li></ul><ul><li>Annual financial statements </li></ul><ul><li>Advise on payroll services </li></ul>Start your own business <ul><li>Talk To Professionals </li></ul><ul><li>Accountant </li></ul><ul><li>Advise on payroll services </li></ul><ul><li>Payroll taxes </li></ul><ul><li>Tax returns </li></ul><ul><li>Financial advice </li></ul>
  20. 20. <ul><li>Set up bank accounts </li></ul><ul><li>Obtain line of credit </li></ul><ul><li>Set up credit card process </li></ul><ul><li>Financial advice </li></ul>Start your own business <ul><li>Talk To Professionals </li></ul><ul><li>Banker </li></ul>
  21. 21. <ul><li>Expertise in the business </li></ul><ul><li>Assist in negotiations </li></ul><ul><li>Recommend supplies, vendors </li></ul><ul><li>Assist in start-up </li></ul><ul><li>Assist in overall analysis </li></ul>Start your own business <ul><li>Talk To Professionals </li></ul><ul><li>Consultant </li></ul>
  22. 22. <ul><li>Someone who owns a business, any business </li></ul><ul><li>Someone who owns a business in that field </li></ul><ul><li>An entrepreneur </li></ul><ul><li>Someone who owns and operates </li></ul><ul><li>a franchise </li></ul><ul><li>A business broker </li></ul>Start your own business <ul><li>Talk To Professionals </li></ul><ul><li>Someone in Business </li></ul>
  23. 23. <ul><li>Start-up </li></ul><ul><li>Working capital </li></ul>Start your own business Talk To Professionals <ul><li>Equity investor </li></ul><ul><li>Cash, plus borrow the rest </li></ul><ul><li>Borrow all needed capital </li></ul><ul><li>None, use only your own cash </li></ul>Determine How Much Capital Will Be Needed Determine How Much Capital You’ll Need to Borrow
  24. 24. <ul><li>Vehicle Loans </li></ul><ul><li>SBA www.SBA.gov </li></ul><ul><li>Family </li></ul><ul><li>Equipment Financing </li></ul><ul><li>Real Estate </li></ul><ul><li>Private Lender </li></ul><ul><li>Friends </li></ul><ul><li>Bank Loan </li></ul>Start your own business <ul><li>Talk To Professionals </li></ul><ul><li>Exploring Financing Sources </li></ul>
  25. 25. <ul><li>Co-investor </li></ul><ul><li>Compliments your skills </li></ul><ul><li>More motivated than employee </li></ul><ul><li>Assumes part of risk </li></ul><ul><li>Shares workload and hours </li></ul><ul><li>Splits responsibilities </li></ul>Advantages Start your own business <ul><li>Talk To Professionals </li></ul><ul><li>Determine IF You Want or Need An Investor or Partner </li></ul>
  26. 26. <ul><li>Someone you have to answer to </li></ul><ul><li>Financial and personal goals often differ </li></ul>Disadvantages <ul><li>One often works harder </li></ul><ul><li>Partners often disagree </li></ul>Start your own business <ul><li>Talk To Professionals </li></ul><ul><li>Determine IF You Want or Need An Investor or Partner </li></ul>
  27. 27. Play Golf At their Country Club ! Start your own business Talk To Professionals
  28. 28. Check www.uspto.gov to determine that name is not already federally registered <ul><li>Select a name that you like that is descriptive but not limiting </li></ul>Start your own business <ul><li>Setting Up Your Own Business </li></ul><ul><li>Name Protection </li></ul>
  29. 29. <ul><li>Check with your state to determine that name is not already registered in your state. </li></ul><ul><li>Retain a patent trademark or Intellectual Property lawyer </li></ul>Start your own business <ul><li>Setting Up Your Own Business </li></ul><ul><li>Name Protection </li></ul>New Company Name Signature
  30. 30. Obtain an Employer Identification Number (EIN) <ul><li>You will need this to obtain vendors </li></ul><ul><li>You will need this if you have employees </li></ul><ul><li>You will need this for just about anything! </li></ul>Start your own business <ul><li>Setting Up Your Own Business </li></ul><ul><li>Tax ID Number </li></ul>
  31. 31. <ul><li>State </li></ul><ul><li>Federal </li></ul><ul><li>Local </li></ul><ul><li>Municipal </li></ul><ul><li>Professional </li></ul><ul><li>Special </li></ul>Start your own business <ul><li>Setting Up Your Own Business </li></ul><ul><li>Permits and Licenses </li></ul>
  32. 32. <ul><li>Public liability </li></ul><ul><li>Vehicle </li></ul><ul><li>Inventory </li></ul><ul><li>Health and Medical </li></ul><ul><li>Errors and Omissions </li></ul><ul><li>Building and Contents </li></ul><ul><li>Comprehensive fire and theft </li></ul><ul><li>Worker’s Compensation </li></ul><ul><li>Insurance </li></ul>Start your own business Setting Up Your Own Business
  33. 33. <ul><li>Location, location, location </li></ul><ul><li>Demographics </li></ul><ul><li>Lease or buy </li></ul><ul><li>Home-based </li></ul><ul><li>Zoning </li></ul><ul><li>Parking and accessibility </li></ul>Start your own business <ul><li>Setting Up Your Own Business </li></ul><ul><li>Location </li></ul>
  34. 34. <ul><li>Do detailed layout </li></ul><ul><li>Analyze applicability </li></ul><ul><li>Analyze interim traffic patterns </li></ul><ul><li>Solicit bids </li></ul><ul><li>Access available utilities </li></ul><ul><li>Draw schematic </li></ul><ul><li>Acquire necessary permits </li></ul>Start your own business <ul><li>Setting Up Your Own Business </li></ul><ul><li>Leasehold Improvements </li></ul>
  35. 35. <ul><li>Select an accountant </li></ul><ul><li>Set up accounting system </li></ul><ul><li>Receive and review monthly statements </li></ul><ul><li>Keep all records up-to-date </li></ul><ul><li>Meet with accountant regularly </li></ul><ul><li>Store all records </li></ul>Start your own business <ul><li>Setting Up Your Own Business </li></ul><ul><li>Accounting </li></ul>
  36. 36. <ul><li>Select a lawyer </li></ul><ul><li>Define legal issues </li></ul><ul><li>Utilize lawyers in negotiations </li></ul><ul><li>Discuss your proposed business </li></ul><ul><li>Don’t sign anything without your lawyer </li></ul>Start your own business <ul><li>Setting Up Your Own Business </li></ul><ul><li>Legal </li></ul>
  37. 37. <ul><li>Identify needs </li></ul><ul><li>Install expandable equipment </li></ul><ul><li>Shop around, systems, price </li></ul><ul><li>Internet sales consultants </li></ul><ul><li>Setting Up Your Own Business </li></ul><ul><li>Computers / Phones / Faxes </li></ul>Start your own business
  38. 38. <ul><li>Network and connect all </li></ul><ul><li>communications equipment </li></ul><ul><li>Internet capability </li></ul><ul><li>Analyze applicability </li></ul><ul><li>Develop website </li></ul><ul><li>E-commerce </li></ul><ul><li>Internet service provider </li></ul><ul><li>On-line marketing </li></ul><ul><li>Setting Up Your Own Business </li></ul><ul><li>Computers / Phones / Faxes </li></ul>Start your own business
  39. 39. <ul><li>Negotiate rates </li></ul><ul><li>Arrange for online credit </li></ul><ul><li>card processing </li></ul><ul><li>Establish credit card </li></ul><ul><li>company relationships </li></ul><ul><li>Setting Up Your Own Business </li></ul><ul><li>Credit Card Processing </li></ul>Start your own business
  40. 40. <ul><li>Establish goals </li></ul><ul><li>Develop budget </li></ul><ul><li>Establish products, </li></ul><ul><li>services and pricing </li></ul><ul><li>Develop collateral materials </li></ul><ul><li>Setting Up Your Own Business </li></ul><ul><li>Advertising and Marketing </li></ul>Start your own business
  41. 41. <ul><li>You are the trainer </li></ul><ul><li>Train, train, train </li></ul><ul><li>Set and maintain high </li></ul><ul><li>performance standards </li></ul><ul><li>Minimal staffing </li></ul>Start your own business <ul><li>Setting Up Your Own Business </li></ul><ul><li>Hire and Train Staff </li></ul>
  42. 42. 2 nd Option <ul><li>Buying an Existing Business </li></ul><ul><li>Getting the details </li></ul><ul><li>Hands on experience </li></ul>
  43. 43. Buying an existing business Get the details <ul><li>Get audited financials for </li></ul><ul><li>last three (3) years </li></ul><ul><li>Review bank records </li></ul><ul><li>Reconcile invoices with </li></ul><ul><li>sales </li></ul><ul><li>Do search for litigation </li></ul>
  44. 44. <ul><li>Non-compete Agreement.. </li></ul><ul><li>Talk to employees… </li></ul><ul><li>Review lease…… </li></ul><ul><li>Verify what you are getting.... </li></ul><ul><li>Get seller to finance…. </li></ul>Buying an existing business Get the details
  45. 45. <ul><li>Is the price worth it? </li></ul><ul><li>Is the business name </li></ul>Buying an existing business Get the details <ul><li>Do a three (3) year cash </li></ul>www.ispto.gov Yes or No: flow with debt services protected?
  46. 46. <ul><li>Talk to customers </li></ul><ul><li>Training by seller </li></ul><ul><li>Work there first </li></ul><ul><li>Can you do it? </li></ul><ul><li>Would you be better </li></ul><ul><li>off starting your own? </li></ul>Buying an existing business Hands on experience
  47. 47. 3 rd Option <ul><li>Buy a Franchise </li></ul><ul><li>What are the first steps after buying a franchise? </li></ul><ul><li>Top 10 Reasons for buying a Franchise </li></ul><ul><li>Frequently Asked Questions </li></ul><ul><li>Franchise Financing Sources </li></ul><ul><li>Advantages from A to Z </li></ul>Reason # 1 Step 1 Step 2 Step 3
  48. 48. Buy a Franchise Business <ul><li>Top reasons for buying a franchise </li></ul><ul><li>Training Programs </li></ul><ul><li>Ongoing Operational Support </li></ul><ul><li>Marketing Assistance </li></ul><ul><li>Strong Brand </li></ul><ul><li>Track Record of Success </li></ul>Success Success Success Success Reason # 1
  49. 49. Buy a Franchise Business <ul><li>Top reasons for buying a franchise </li></ul><ul><li>Real Estate Assistance </li></ul><ul><li>Construction Assistance </li></ul><ul><li>Purchasing Power </li></ul><ul><li>Risk Avoidance </li></ul>Reason # 1
  50. 50. Buy a Franchise Business <ul><li>How long will it take my new franchise to </li></ul><ul><li>reach break even? </li></ul><ul><li>How much of my total investment (including capital reserves) do I need to have in cash? </li></ul><ul><li>What are the ranges in financial performance of the existing franchisees? </li></ul><ul><li>How much is needed in operating capital reserves to cover loses after opening the franchise until the break even point? </li></ul>Frequently Asked Questions
  51. 51. Buy a Franchise Business <ul><li>How financially strong is the franchise company </li></ul><ul><li>What standard and alternative financing options exist for me? </li></ul><ul><li>How much total investment will this franchise require? </li></ul><ul><li>How much money can I make in this franchise? </li></ul>Frequently Asked Questions
  52. 52. a. Proven system of operation b. Brand identity c. Training d. Assistance in obtaining location e. Advertising – national and local f. Own boss g. Turnkey business Advantages Buy a Franchise From A-Z
  53. 53. h. Collective buying power i. Operating manual j. Planning and forecasting assistance k. Better prices on equipment m. Resale ability n. Financial and accounting systems From A-Z Advantages Buy a Franchise l. Better prices on inventory
  54. 54. p. New ideas q. New products r. Sources of products s. Complete business system t. Financing u. Lower risk From A-Z Advantages Buy a Franchise o. Ongoing support and consulting
  55. 55. w. Sales and marketing techniques x. Start the business with less capital y. No previous experience necessary z. We don’t succeed unless you do From A-Z Advantages Buy a Franchise v. Assistance in site selection
  56. 56. Franchise Financing Sources Buy a Franchise Franchise Funding Specialists Veteran Programs Investors 401k Cash is King Next Franchisee exit... Funding
  57. 57. <ul><li>What are the first steps after </li></ul><ul><li>buying a franchise? </li></ul>Buy a Franchise <ul><li>Secure the location </li></ul><ul><li>Sell, Sell, Sell! </li></ul><ul><li>Training </li></ul><ul><li>Marketing </li></ul>Step 1 Step 2 Step 3 To Do:
  58. 58. FINALLY … Do I Have What It Takes? <ul><li>Am I comfortable with the risk? </li></ul><ul><li>Do I have sufficient capital? </li></ul><ul><li>Can I sell? </li></ul><ul><li>Do I need a partner? </li></ul><ul><li>Do I have the ability to manage? </li></ul><ul><li>Is my family behind me? </li></ul><ul><li>Do I have the necessary skills? </li></ul><ul><li>Can I work well independently? </li></ul>
  59. 60. Thank you for your time www.on-target.com (800) 720-0131 For more information about our company, please visit our website @ Or call us at

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