Achieve Your Business Dreams - Session 1

www.jacksonville.score.org
Achieve Your Business Dream

Jacksonville.score.org
AYBD’s Private Facebook Group
SCOREJAX - Achieve Your Business Dream Community
• This Facebook group is designed to allow people who attend the
Achieve Your Business Dream workshops to network with each other
and communicate with the SCORE presenters with questions and
suggestions.
• Since this is a private group, you will need permission to be allowed to
join the group. To obtain permission, follow these instructions.
1. Sign in to your existing Facebook account. If you don’t have an account, you
will need to establish one.
2. Go to the search box at the top of the Facebook page.
3. Type “SCOREJAX - Achieve Your Business Dream Community” and hit enter.
4. A box will appear asking if you would like to be approved to enter the group. Fill
in what is requested.
5. It should take 24 hours or less to be approved. You will be notified when you
are approved.
6. Once approved you should be able to post, reply, etc like any Facebook site.

What is SCORE?
A nonprofit organization with the largest network of free
business experts in the United States.
• SCORE is dedicated to helping
small businesses get started, grow
and achieve their goals through
education and mentorship.
o Entrepreneurial skills
o Business formation
o Growth strategies.
• 11,000+ SCORE volunteers across
the U.S. (250 chapters).
• Hundreds of mentors/counselors
available throughout the (7)
Central / North Florida District
chapters. SCORE | Central / North Florida District

SCORE’s Mission & Vision
Our Mission:
Foster vibrant small
business
communities through
mentoring and
education.
Our Vision:
Every person has the
support necessary to
thrive as a small
business owner.
We are here to support you!

How SCORE Helps Entrepreneurs
• Mentoring: Face-to-face, phone & e-mail
mentoring – for as long as we’re needed!
• Workshops: Educational sessions on a
wide range of topics from starting a business
to online marketing, new product development,
sources of financing, crowdfunding, direct
sales techniques and much more.
• Online Resources: Wide collection of
articles, templates, assessments, blogs and
over 340 business webinars.
SCORE helps entrepreneurs three ways:

Cost for SCORE Mentoring Services:
$0.00
FREE!

Sign Up With a Mentor
Costs only
$99
Sign up for a mentor
Register for a workshop
Find Templates & Webinars

Upcoming Workshops
Date Start Topic
May 3 7:00 pm Website Planning 101
May 4 5:30 pm Pinterest 101:The Basics That Make Money
May 4 6:00 pm Digital Ads_ The Ultimate Tool to Grow Your Business
May 5 7:00 pm Use Quality Assurance to Get Satisfied Customers
May 10 6:00 pm Achieve Your Business Dream – part 1 of 4 (live at JAX Chamber)
May 10 7:00 pm The Seven Don’t of E-mail Design
May 11 10:00 am Get Your Business on Google Search and Maps
May 11 6:00 pm Starting Your New Business
May 12 7:00 pm How Data Analytics Can Help Your Business
May 14 12:30 pm Marketing Your Business
May 18 5:30 pm How to Get Started Using Pinterest ina Weekend
May 19 10:00 am Moving Your Prospects Through the Sales Funnel
May 23 Noon Delivering Excellent Customer Service on Social Media

Browse the Library - Online Resources
SCORE Templates, Tools & Webinars
• Over 1800 FREE templates & tools -
Articles, assessments, outlines, and
other resources
• LIVE webinars - One-hour
presentations by mentors and partners
• 100 English & Spanish online
workshops - Business training
modules
• SCORE blogs & newsletter - latest
business information, tips and
resources

Section One
Introductions –
Who are we?

Getting to Know Each Other
Here are your presenters for this evening.
Craig Linsky
• Areas of Expertise
o Marketing Research
o Business Strategy & Planning
o Product Analysis & Development
o Business Financial & Credit Analysis
o Customer Analytics
• Industry Experience
o Retail and Business Banking
o Institutional Investment Sales
o Marketing and Data Analytics
o Small Business Lending
Ashlee McNair
o Workshop facilitator
o Certified DEI (Diversity, Equity and
Inclusion) Trainer
o Life Coach
o Financial Literacy
o Financial Services
o Entrepreneurial Coach
o Human Resources

Getting to Know Each Other
Here are your presenters for this evening.
Melody Patraglia
o Business Plans / Startup Assistance
o Customer Relations
o Operations
o Product Development & Manufacturing
o Strategy & Planning
o Manufacturing
o Retail Trade
o Wholesale Trade

Expectations for this Course
Over the next four weeks you will learn …
Week 1 – Business Foundations
• Should You be an Entrepreneur?
• Your Business Vision & Self Assessment
• Business Plan Overview
• Developing a Support Network
• Creating a Legal Entity
• Mission, Vision & Value Statements
Week 2 – Product & Marketing
• The Four P’s of Marketing
• Generating Product Concepts
• Selecting a Pricing Method
• Product Distribution Channels
• Product Promotion & Social Media
Week 3 – Accounting & Finances
• Accounting Basics
• Understanding Financial Statements
• Determining Financing Needs
• Industry, Competitor & Market Analysis
• Selecting a Name for Your Business
Week 4 – Funding & Business Plans
• Sources of Funding
• Writing Your Business Plan
• Financial Projections

Section 2
Are You
Entrepreneurial Material?

How do Entrepreneurs Think?
Entrepreneurs think differently than non-entrepreneurs.
• Seek Independence They want to be in control of their personal situation.
Independence is one of the most frequently stated reason for starting a
business.
• Internal Control Oriented They perceive that their likelihood of success is
controlled by their own actions, not by fate, luck or other people.
• Embrace Change Entrepreneurs enjoy major life changes and the
opportunities they bring.
• Competitive They desire to excel compared to others.
• Financially Motivated They desire financial well-being, but business profit is
often used as a measure of success more than for what it can buy.
• Ambition/Achievement Motivated They value the ability to reach personal
goals, regardless of comparisons to others.
• Calculated Risk Taker They mentally balance the workload and assumed
risk against the expected financial gain.
• Societal Contributor Many entrepreneurs want their actions to benefit
society as well as themselves.

Success Traits of Entrepreneurs
Multiple studies have identified the following character
traits in successful entrepreneurs.
• Willing to take action This may be the most important trait for entrepreneurs.
All other traits are not important if you are afraid to take real action. Actions are
what lead entrepreneurs to success.
• Persistence/Tenacity Persistence is a refusal to give up, “If at first you don’t
succeed, try, try again”.
• Self-confidence Few become successful entrepreneurs if they don’t have
self-confidence in themselves.
• Passion Passion will see you through the difficult tasks to the part of your
business that ignites your spirit and heart.
• Positive Attitude Entrepreneurs are optimists at heart. This trait can be self-
reinforcing and carries over to those who can assist you.
• Entrepreneurial creativity You must be a creative person if you want to be
unique and have the power to continuously improve your business.
“Life is 10% what happens to you and 90% how you react to it.” - Charles R. Swindoll

Business Success Factors
These business factors were cited by entrepreneurs as
contributing to their success.
• Planning Think ahead, analyze every business decision and constantly
compile data. Set goals, outlining how to achieve them.
• Discipline and Organization Your time is valuable – how will you spend it?
Track your time and duties. Invest your energy where it benefits your business
the most. Follow the 80-20 rule.
• Great Sales and Negotiation Skills You may need to negotiate with suppliers
and/or customers. Learn how to request the true value of your products and
services and always look for win-win deals. Learn to listen to customers.
• Money Management Control expenses and plan you cash flow well into the
future. When you are out of cash, you are out of business.
• Innovation Things don’t always have to be the way they are. Always look for a
new concept, envision it and execute it effectively. Always ask “why?”.
• Adaptability Business rarely goes according to plan. Things change and an
entrepreneur must be able to alter an idea or plan to fit the circumstances.
• Willing to seek help A different viewpoint or specific expertise can solve a
problem or provide an answer to a question. Don’t be afraid to ask for help.

How Entrepreneurs Find Success
What factors were cited by entrepreneurs as contributing
to their success?
1. 58% say they successfully started a business because of their past
experiences.
2. 40% say they use past failures to fuel new successes.
3. 39% say they’ve learned from previous successes.
4. 25% had 15+ years of experience in their industry.
5. 25% cited having an adequate source of funding available.
6. 22% of entrepreneurs attribute luck or good fortune to their success.
7. 22% consider their professional network an essential to their success.
8. 20% of entrepreneurs see a college education as important.
Note that the top four success factors are all related to having
experience in the field they are entering.
What experience do you have?

Habits of Successful Entrepreneurs
Wealthy and poor people have very different habits.
• The following table was derived from the book “The Daily Success
Habits of Wealthy Individuals” by Thomas C. Corley.
• How many of these habits do you have?
• How many do you not have that you will adopt?

Personal Gap Evaluation
You need to assess your personal strengths and
weaknesses on factors most important to your business.
• Column 1 – List the personal traits or business factors that apply to your business.
• Column 2 – Rate the importance of each of these to your potential business.
• Column 3 – Rate your capability on each factor. (Note: It is reverse scored.)
• Column 4 – Multiply each importance score times the assessment score.
• Column 5 – A score of 9 indicates a weakness on an important factor. What steps will
you take to correct them?
Success Factor Importance Personal
Assessment
Score Personal
Action Plan
Planning 2 1 2
Discipline and Organization 2 3 6
Sales Skills 3 3 9 Take a sales course.
Negotiation Skills 1 2 2
Money Management 2 2 4
Innovation 3 1 3
Adaptability 3 1 3
Willing to seek help 3 3 9 Join two organizations.
Importance
1 = Not very important
2 = Average
3 = Very important
Assessment
1 = Strength
2 = Average
3 = Weakness

Do You Really Want to do This?
Entrepreneurship can be like "The Apprentice," "Survivor,"
and "Fear Factor" (with a little “Simpsons”) rolled into one.
• Are you willing to take risk? It may require your life savings, your home
equity and borrowing from your family. (Can you say “bankruptcy”?)
• Are you willing to skip weekends and vacations? Customers don't care
about your work-life balance. They want your product and they want it now. If
you can't offer consistent service every day, you won’t make it.
• Are you willing to be ruthless? Ruthless, does not mean unethical or
criminal. It means doing what's best for your business, even if it means
making tough decisions that you, your friends and family may not like.
• Are you willing to lose sleep? The hours required when you own a
business is nothing like working a regular job. So, set the alarm clock early.
• Are you willing to be wrong? You may well find that your business model is
wrong. Will you be willing to admit it and rethink your business plan?
"I learned that courage was not the absence of fear, but the triumph over it. The brave
man is not he who does not feel afraid, but he who conquers that fear.“ – Nelson Mandella

Section 3
Where to Start:
A Business Plan

What is a Business Plan?
A Business Plan is …
• a document describing the nature of your business, the products and
services to be offered, the sales and marketing strategy to be used and
how it will operate.
• the financial projections that estimate revenue, cost, profit/loss and cash
flow resulting from your business activities as well as the capital required
to get started.
It is your roadmap
to success!

Why You Need a Business Plan
Even if you aren’t using it to raise start-up capital, there are
many reasons to have a written plan.
• It forces you to review everything at once: your value proposition,
marketing assumptions, operations plan, financial plan, staffing plan, etc.
Does it all make sense when you put it together?
• The plan lays out targets in all major areas: sales, expense items, hiring
positions and financing goals. Once laid out, the targets become
performance goals.
• It gives you a good diagnostic tool. When actual results fall short of the
plan, it is an indication that something is wrong –either with the business
or the assumptions in your plan.

The SCORE Business Plan Template
1. Go to the SCORE Jacksonville website https://jacksonville.score.org/
2. On the blue banner, go to, then click on “Browse the Library”.
3. Scroll down to and click on the “Business Planning & Financial Statements
Template Gallery”
4. Under “Business Plan Templates”, click on one of two options:
• Business Plan for a Start-up Business
• Business Plan for an Established Business
5. Click on “Download
Template” and save the file
to your PC.
6. The template outlines the
steps you need to
complete a business plan
and provides a series of
questions to consider.

Sections of the SCORE Business Plan
The template has the following sections:
1. Executive Summary
2. General Company Description
3. Products and Services
4. Marketing Plan
5. Operational Plan
6. Management and Organization
7. Personal Financial Statement
8. Startup Expenses and Capitalization
9. Financial Plan
10. Appendices
11. Refining the Plan
• Not every business will need every section.
• Over the next four weeks, we will provide you with the skills and
knowledge to complete your own business plan.

Section 4
Developing a
Support System

No Man/Woman is an Island
As an entrepreneur, you will need to perform many
tasks you have never done and be able to address many
questions you don’t know the answers to.
• If you try to figure it all out on your own or just figure you will learn
from your mistakes, your business won’t last long.
• You will need to turn to various support groups, mentors, fellow
business owners and other organizations to get answers quickly.
“If you're trying to create a
company, it's like baking a
cake. You have to have all
the ingredients in the right
proportion.” -- Elon Musk
“Great things in business
are never done by one
person. They're done by a
team of people.”
– Steve Jobs

Business Networking
Business networking develops mutually beneficial
relationships with other business people and potential
clients and/or customers.
– There are many reason why you should actively network.
• To help your business grow and expose your business to others.
• To stay current on industry and target market trends.
• To get advice from other entrepreneurs.
• To be part of the community or an industry.
• To start relationships.
• To find suppliers and solutions to your problems.
• To increase your visibility.
• To generate referrals.
• To find inspiration.

Networking’s Impact on Success
Research has shown a strong link between entrepreneurial
success and social networks. One study showed …
• 80% of SB owners belong to at least one business or industry group.
• Two-thirds of these networks involve face-to-face meetings.
• These networking meetings typically involve …
– Soliciting feedback from other owners
– Sharing of recent achievements (typically to solidify self esteem)
Benefit Derived
Extremely
Valuable
Emotional support 61%
Peer feedback on business problems 54%
Fresh perspectives on new business ideas 53%
Connect socially with other owners 51%
Advice on making business more profitable 36%
Number of
Associations Joined
Percent of SB
Owners
None 20%
One 21%
Two 19%
Three 18%
Four 11%
Five or more 11%
80%

Building a Dream Team
As a start-up or small business, it is unlikely you will
have all the expertise you need on your staff.
• Mentors – SCORE, WBN, UNF, etc.
• Accountant
• Business Insurance Agent
• Attorney
• Banker
• Human Resources
• Other Trusted Advisors

jacksonville.score.org
Sign up for a mentor
Register for a workshop
Find templates

JAX Chamber of Commerce
The JAX Chamber is a not-for-profit organization in
Northeast Florida, helping members to make
connections, grow their businesses and prosper.
– Connect Members make local and national connections at
hundreds of events designed to build business relationships and
keep you informed.
– Grow Through educational programs and services, the Chamber
works to grow new and existing businesses.
– Prosper The JAX Chamber promotes economic development by
attracting and retaining companies, creating jobs and fostering a
skilled workforce.
Explore their website at: myjaxchamber.com/

Small Business Administration
The U.S. Small Business Administration (SBA) aids,
counsels, and assists Americans as they start,
operate, and expand their businesses.
– Increases federal procurement/contracting opportunities.
– Facilitates access to capital with multiple loan programs.
– Provide counseling and training.
– Provide disaster assistance.
Explore their website at: www.sba.gov/fl/north

Small Business Resource Network
The SBRN is a not-for-profit organization helping members
make connections, grow their businesses and prosper.
– The SBRN website answers basic small business questions and
streamlines the process of finding qualified small business support
professionals.
– These participating, qualified professionals are experts in banking, law,
accounting, insurance, commercial real estate, human resources,
marketing, buying and selling a business, computers/technology, and a
wide variety of other management issues relevant to small businesses.
– The professionals in the SBRN are screened for their licensing,
professional experience and customer satisfaction.
Explore their website at: SBRN.org/
An alternative source for legal help is the
Jacksonville Bar Association at: JAXBAR.org/

Florida SBDC
The Florida SBDC (Small Business Development Center)
The SBDC has access to robust databases, business research resources,
and knowledgeable experts who can help you successfully navigate the
obstacles that come with the stages of the business life cycle.
Explore their website at: http://floridasbdc.org/

Procurement Technical Assistance Center
The Florida PTAC assists entrepreneurs who want to sell
to federal, state or local government agencies.
– One-on-One Consulting: Works with government contractors new to the
procurement process to identify and prioritize action steps.
– Marketing and Business Development: Consultants help you develop
marketing collateral, networking and relationship strategy.
– Research Support: Help clients develop research strategies using public
and PTAC-specific research tools.
– Professional Development: Offers a training calendar
designed to help owners better understand key aspects
of government contracting.
Explore their website at: FPTAC.org/

• Build a network – find people, be found by people.
• Connect to more people than you know.
• Find people by name, company, job title and get
introduced, direct contact.
• Find information about competitors, suppliers and
customers
• Hire employees
• Join groups or people with similar interests
• Get publicity
• Create a company business page
Explore their website at: www.linkedin.com
Linkedin is a business social network of over 740M people
+ 55 Million Registered Companies…

Where to Find Lists of Groups
Here are a few of the places to find group lists.
Business section of newspaper – calendar of events
Newspaper & website lists of civic groups
Small Business Development Center for list of groups
https://www.sba.gov/tools/local-assistance/sbdc
Organizations for female entrepreneurs –
• NationalAssoc. of Women’s Business Owners www.nawbo.org/
• Forum for Women Entrepreneurs www.fwe.ca/about/
Websites of trade organizations
www.directoryofassociations.com/
www.planningshop.com/associations/
Chamber of Commerce directory www.uschamber.com/
For a Jacksonville listing of networks, consider
www.meetup.com

Section 5
What Are Your
Expectations?

What is Your Business Vision?
1. What do you want your business to be when you start?
_________________________________________________
2. What industry will you be in? (NAIC code)?
3. Define what success will look like to you five years
from now. Be specific! Include …
• Annual Sales/Revenue:
• Number of Locations:
• Number of Employees:
• Geographic Reach:
• Number of Hours Worked by You per Week:
• Will you continue to grow the business or maintain a stable business?
“If I had six hours to chop down a tree, I’d spend the first four hours sharpening the axe.”
– Abraham Lincoln

What is Your Earnings Vision?
Your potential “earnings” may consist of two parts.
1. The amount due to the owner(s) for their occupation.
- If you own a bakery and are acting as a baker, how much would you have
to pay someone to replace your baking activities?
- You should know how much the business “owes” you as an employee.
- When your bakery gets big enough to afford to hire someone to replace
you as a baker, then you are no longer entitled to the baker’s salary.
2. The amount due to the owner(s) as the “entrepreneur’s reward”.
- This is your reward for running the business and should at least be
equivalent to the average earned by other owners in your industry.
- Include any bonus, distribution or dividend paid out in cash to the owners.
 Net profit of the business (sales X net profit margin)
 Salary /wages paid to the owner by the business.
 Dividends/distribution paid to owners/stockholders.
- This should be over and above the salary as a baker (in #1 above).

Calculating Owners’ Profit
How to find the information.
• Research what you would have to pay someone to replace your non-
managerial tasks.
- According to the Occupational Outlook Handbook, the median earnings for a
baker in 2019 was $27,700.
- This is the amount due for the owner’s occupation.
- Another source is www.salary.com
• Research what the net profit margin for a business in your industry
would typically earn.
- This average profit generated by businesses down to six digits NAIC codes is
available from the RMA Annual Statement Studies at the third-floor reference
desk at the downtown branch of the JPL.
- For example, the average net profit margin for retail bakeries (NAIC code 311811)
is 4.3% of revenue (up to $1MM in revenues)
- Being optimists, assume the owner is capable of generating a profit margin 20%
higher than the industry average, or 5.2%.
- Realize that salaries paid to the owners are expenses that lower the net profit.

Accessing RMA Books
How to Access RMA Books
• Normally you can access these books at the Small Business
Resource Center on the 3rd floor, but it is currently closed.
• To get access to the RMA books, follow these steps:
1. Go to the Business Reference Desk on the third floor of the Main branch
[303 N. Laura St.].
2. Ask for the RMA Annual Statement Studies books {Call Number
338.0973 RMA 2018-2019] from the SB Resource Center.
3. They will retrieve the books or direct you to them.
4. Using the NAIC number(s) for the industry you plan to enter, find the right
pages in the RMA.
5. While you can copy down key information, I suggest you photocopy (or
use your phone’s camera) the pages for your NAIC.

RMA Statement for Bakeries
INCOME DATA 0-1MM This column is for bakeries up to
$1 million in sales
Net Sales 100.0 Net sales are set to 100%
Gross Profit 62.7 Variable costs = 100 – 62.7% = 37.3%
Operating Expenses 59.0 Fixed costs = 59% of total sales.
Operating Profit 3.6 100% – 37.3% - 59.0% = 3.6% (rnd.)
All Other Expenses
(net)
-0.7 Miscellaneous, not material
Profit Before Taxes 4.3 For each dollar of sales, NIBT = 4.3
cents.
How to read the table for NAIC code = 311811.
• Total Assets, Total Liabilities & Net Worth and Profit Before Taxes are
all set to 100%.
- All other categories are expressed as a percentage of the 100% total.
- These are often called “common-size statements”.

What is Your Profit Rewards Vision?
• What do you want your business to be in five years?
I want to own a bakery with three locations in Jacksonville, with each location
having its own baker/manager.
• What profit should I expect five years from now?
Year 1 Year 5
Occupation (Baker) Income $27,700 $0
Net Profit Margin 4.3% 5.2%
Average sales per location $300,000 $450,000*
Number of Locations 1 3
Net Owner’s Profit $12,900 $70,200
Total Expected Income $40,600 $70,200
* SOURCE: What Is the Average Revenue for a Bakery? by Devra Gartenstein; Updated March 01,
2019.
https://smallbusiness.chron.com/average-revenue-bakery-81113.html

Is Your Vision Realistic?
The Plan: Own a chain of three ”sit down” restaurants,
making net income of $100,000 per location by year five.
GOAL: $100,000 GOAL: $100,000 GOAL: $100,000
: Restaurants “with $15 to $24.99 checks
boast the highest profit margin at 3.5%”.
: “Average sales for sit down restaurants
(“if all things work well), average $3,100 per night”.
Need 3x’s “the Average” to
hit your goal???
$100,000 Net $ profit
÷ 0.035 Net Profit margin (%)
= $2,857,000 Sales required annually
$3,100 x 6 nights = $18,600/week
x 52 weeks
$967,200 Sales

Homework Assignment #1
• Give a brief description of the business you are planning.
• Provide the NAIC code for the industry you will be entering.
• What do you want your business to be five years from now?
• What are your profit expectations for five years from now?
Year 1 Year 5
Occupation Income $ ??? $ ???
Net Profit Margin ??? % ??? %
Average sales per location $ ??? $ ???
Number of Locations ? ?
Net Owner’s Profit $ ??? $ ???
Total Expected Income $ ??? $ ???
Submit homework to craig.linsky@scorevolunteer.org for
feedback.

www.jacksonville.score.org
Break – 5 Minutes

Section 6
Creating a Legal
Business Entity

Types of Legal Structures
A business must choose a legal designation under
which it will operate. Each has its advantages and
disadvantages.
• Sole Proprietorship
• Partnership
• Limited Liability Co (LLC)
• “S” Corporation
• “C” Corporation
• Benefit Corporation

Sole Proprietorship
Naming
If your last name is in the business name,
you do not need to file it with the state.
Joe Dewy Cleaners
If your last name is not in the business
name, you need to register the “fictitious
name” with the state and advertise it at least
once in a local newspaper.
Joe Dewy d/b/a XYZ Cleaners
Advantages
– Simple and easy to start.
– Low cost to register and maintain.
– Owner is sole manager.
– Profits not shared with others.
Filing
If your last name is not in the business
name, you need to file a “fictitious business
name” with the state of Florida.
http://form.sunbiz.org/fic_form.html
There is a $50 filing fee.
The filing is good for five years.
Disadvantages
– Owner needs many skills.
– Start up money difficult to raise.
– Unlimited financial and negligence liability
for owner.
– Business dissolves when owner dies.
– Any business debt incurred in the owner’s
name is still valid even if the business ends.

General Partnership
Naming
If your last names are in the business name,
you do not need to file it with the state.
Dewy, Cheatum & Howe Cleaners
If your last names are not in the business
name, you need to register the “fictitious
name” with the state and advertise it at least
once in a local newspaper.
Joe Dewy, Al Cheatum & Liz Howe d/b/a DCH Cleaners
Advantages
– Low cost to register and maintain.
– Partners share management.
– Skills can complement one another.
– Partners may bring in capital, expertise and
customers.
Filing
If your last names are not in the business
name, you need to file a “fictitious business
name” with the state of Florida.
http://form.sunbiz.org/fic_form.html
There is a $50 filing fee.
The filing is good for five years.
Disadvantages
– Need to find ‘right’ partner.
– Need extensive partnership agreement.
– How to settle partner disagreements.
– Unlimited financial and negligence liability
for owners.
– Any debt incurred in the owners’ names is
still valid even if the business ends.

Limited Liability Company (LLC)
Naming
Last names are not needed in the business
name, but the LLC or L.L.C. designation
must be at the end. (Or LLP for medical
practices.)
Dewy Cheatum & Howe Cleaners, LLC
DCH Cleaners L.L.C.
Advantages
– Limits business financial and negligence
liability for owners.
– Income can be distributed among partners
in any way they agree to.
– Can elect to be file federal income tax as a
“S” or “C” corporation. (File form 8832.)
– Fewer rules, restrictions for owners
compared to “S” Corp.
Filing
LLCs must file an Annual Report each year.
The first report is due in the year following
formation even if there is no activity.
http://form.sunbiz.org/cor_llc.html
The initial filing fee is $125.
The annual report filing fee $138.75.
Disadvantages
– Filing fees significantly higher than for sole
proprietorship or partnership.
– Must file annually, keep current with Florida.
– LLC owners are self-employed, not
employees.
– LLC owners owe self-employment tax
(Social Security and Medicare taxes) based
on business net income.

“S” Corporation
Naming
The name of the corporation must include a
corporate suffix such as Corporation,
Corp., Incorporated, Inc., Company, or Co.
Dewy Cheatum & Howe Corp.
A Professional Association must contain the
word “chartered” or “P.A.”.
Advantages
– Limited liability for shareholders (owners).
– Income passed to owners’ tax returns
based on percent share ownership.
– Owners are not self-employed.
– Social Security and Medicare taxes apply to
salary/wages owners receive, but not to
distributions they receive.
Filing
“S” Corps must file an Annual Report each
year. The first report is due in the year of
formation, even if there is no activity.
http://form.sunbiz.org/cor_form.html
The annual report filing fee $150 each year.
Disadvantages
– Limited to 100 U.S. shareholders.
– Shareholders must be individuals only.
– Only have one class of common shares
(but can be voting and non-voting).
– Must file separate tax return (form 1120-S).
– Must file IRS form 2553 each year to
maintain “S” corporation tax status.
– Owners can be personally liable if they do
not fulfill “fiduciary duty”.

“C” Corporation
Naming
Advantages
– Few limits on number and types of
shareholders.
– Can have multiple classes of stock.
– Costs of fringe benefits for employees are
deductible as business expenses.
– Social Security and Medicare taxes apply to
salary/wages owners receive, but not to
distributions (dividends) they receive.
Filing
“C” Corps must file an Annual Report each
formation, even if there is no activity.
http://form.sunbiz.org/cor_form.html
Disadvantages
– Not a “pass-through” entity.
– Profits distributed to shareholders (as
dividends) are subject to double taxation.
– Must file separate tax return (form 1120).
– Cannot take home office tax deduction.
– Owners can be personally liable if they do
not fulfill “fiduciary duty”.

Benefit (“B”) Corporation
Naming
Advantages
– The B corporation’s stated purpose is to
pursue a “general public benefit,” defined as
“a material, positive effect on society.”
– Appealing if you want to include a social
mission as a core goal of your company.
– Elect taxation as a “S” or “C” corp.
– A Certified B Corp may have a marketing
advantage, allowing higher profit margins.
Filing
“B” Corps must file an Annual Report each
formation even if there is no activity.
http://form.sunbiz.org/pdf/Inhs75.pdf
Disadvantages
– Legally required to prioritize a positive social
impact.
– Accountable to shareholders. employees,
the community and the environment.
– Annual report must be made public.
– Annual report must include reporting on
social and environmental performance.

”B” Corporation Certification
“B” Corp certification is a private certification issued to
for-profit companies by B Lab.
– B Lab is a global non-profit organization.
– To be granted and to preserve certification, companies must …
• Receive a minimum score on an online assessment for "social and
environmental performance",
• Satisfy the requirement that the company integrate B Lab
commitments to stakeholders into company governing documents.
• pay an annual fee ranging from $500 to $50,000.
– However, like the “Good Housekeeping Seal of Approval”, a
“B” Corp certification has no legal or tax status.
– “B” Corporations must register as Benefit Corps within two years
of getting “B” certification if they aren’t already.
.
To learn more, visit their website at: www.bcorporation.net

Business Structure Comparison Chart
Sole Prop or
Partnership
LLC “S” Corp. “C” Corp. Benefit Corp.
Start Up Easiest Moderate Moderate Hard Hardest
Filing Cost $50/ 5 yrs. $125 initial.
$138.75 / yr.
$70 initial.
$150 / yr.
$70 initial.
$150 / yr.
$70 initial.
$150 / yr.
Control Owner(s) has
control.
Determined in
Operating
Agreement
Shareholders
have
proportional
control via
B.O.D.
Shareholders
have
proportional
control via
B.O.D.
Shareholders
and other
stakeholders.
Liability
Exposure
Owner(s)
responsible for
business debts,
judgements.
Owners have
limited liability
(2+ owners)
Shareholders
not liable for
business debts,
judgements.
Shareholders not
liable for
business debts,
judgements.
Shareholders not
liable for
business debts,
judgements.
Federal
Taxation
Taxed as
personal
income.
Profit passed
to owners per
Oper. Agree.
Profit passed
proportionally to
shareholders.**
Profit taxed at
corporate level.
Depends on IRS
filing status.
IRS Filing
Status
Individual. May choose
any status.
Elect to be taxed
as S or C corp.
Taxed as C corp. Elect to be taxed
as S or C corp..
Termination Ends at owner’s
death.
Specified in
Operating
Agreement
Share ownership
can transfer.
Share ownership
can transfer.
Share ownership
can transfer.
** Unless electing to file as a “C”
Corp.

IRS Business Taxation
File as a Sole Proprietorship or Partnership
– IRS taxes unincorporated business and owner income at the same rates.
– Business income is passed to the owner, then taxed as personal income
(37% top rate).
– Business owners must pay both employer and employee portions of self-
employment taxes (12.6% for SS, 2.9% for Medicare).
– They are eligible for the 20% pass through deduction**
• 20% of up to $170,050 of qualified business income for single filer (for 2022)
• 20% of up to $340,100 of qualified business income for married/joint filers (for
2022).
LLCs do not have an IRS filing status and must select
another status for tax filing purposes.
– Owners may select any tax filing status.
• By default, one person LLCs are given sole proprietor filing status.
• By default, multiple person LLCs are given partnership filing status.
• Owners have the option to file as “S” or “C” Corp.
– Business owners must pay both employer and employee portions of self-
employment taxes (12.6% for SS, 2.9% for Medicare).
** The 20% pass-through deduction has many qualifiers. Check with a tax account or attorney.

IRS Business Taxation
File as an “S” Corporation
– An “S” corporation shareholder can receive profits in two forms:
• A salary -- subject to self-employment tax.
• A distribution – not subject to self-employment tax.
– Shareholders active in running the business must receive a salary
commensurate with their peers in the same occupation.
– Active shareholders must pay 50% of the self-employment tax and the
business pays the other 50%, based on their salaries.
– “S” corps are eligible for the 20% pass through deduction**
• Remember that the salaries paid are expenses to the “S” corp.
• This reduces the income subject to the 20% deduction.
File as a “C” Corporation
– “C” corps are the only “non-pass through” business tax entity.
– Active shareholders are not eligible for the 20% deduction, but the top “C”
corporation tax rate is now only 21% (versus 34% last year).
– Dividends subject to double taxation. They are paid from after-tax profit,
then personal income tax is paid on the dividends (at 0%,15% or 20%).
– The same rates are paid to Social Security and Medicare, 50% by the
owner/employees based on salary and 50% by the “C” corp.

Business Status – Florida vs. IRS
Sole
Proprietor
General
Partnership
“S” Corp. “C” Corp.
Sole Proprietor Always X X X
General
Partnership
X Always X X
LLC
By Default
(if one owner)
By Default
(if 2+ owners)
Optional Optional
“S”, “C” or
Benefit
Corporation
X X Optional By Default
IRS Tax Filing Status
Florida
Legal
Entity
The legal entity of your business is not always the same
as the IRS tax filing status.
– The IRS does not recognize LLCs as a tax filing status.
– In some cases, you have the option to choose an IRS filing status
different from the legal status.

Section 7
Mission, Vision
and Value Statements

Mission, Value and Vision Statements
These three statements are used to define what your
business is, will become and its beliefs system.
- The mission statement (about today) should …
• Describe what the business is, what it does and what its priorities are.
• Explain what makes the business different from its competitors.
• Tell owners and employees why the business exists and where it is going.
• Let customers and the public know what the organization stands for.
- The vision statement (about the future) should …
• Describe concisely what the business should be in the (successful) long term.
• Describe what will the world will look like if your company is successful.
- The values statement (about beliefs) should …
• Describe what the business believes in and how it will act towards all the
parties with which it interacts.
• Describe what your business will strive to always do (or never do).

The Mission Statement
The mission statement can cover any of the following
topics.
• What is the organization's core purpose and focus that normally remains
unchanged over time?
• What is your cause – what do you want to accomplish?
• What are the primary products or services offered?
• What differentiates it from competitors?
• What is the desired public image you want to project?
• Who are the primary stakeholders?
• What is the target customer segment?
"When you discover your mission, you will feel its demand. It will fill you with enthusiasm
and a burning desire to get to work on it." - W. Clement Stone

Mission Statements Examples
“Foster vibrant small business communities through mentoring
and education” – SCORE
“Google's mission is to organize the world's information and make
it universally accessible and useful.” – Google
"Our mission is to feed America’s hungry through a nationwide
network of member food banks and engage our country in the
fight to end hunger.” – Feeding America
"To give unlimited opportunity to women.“ – Mary Kay Cosmetics
"To make people happy.” – Walt Disney
“To inspire and nurture the human spirit— one person, one cup,
and one neighborhood at a time.” – Starbuck’s Coffee
“"To accelerate the world’s transition to sustainable energy.“– Telsa

Vision Statement Examples
The vision statement should …
• Describe what the business should be in the (successful) long term.
• What problem are we seeking to solve?
• Where are we headed?
• Describe what will the world will look like if your company is successful.
“To establish Starbucks as the premier purveyor of the finest coffee in the world while
maintaining our uncompromising principles while we grow.” -- Starbucks
“A world where everyone has a decent place to live.” -- Habitat for Humanity
“To be the safest, most progressive North American railroad, relentless in the pursuit of
customer and employee excellence.” – CSX
“Our vision is to create a better every-day life for many people.” – IKEA
Every guest who chooses Culver's leaves happy – no matter
what it takes.” – Culvers
“Every person has the support necessary to thrive as a
small business owner.” – SCORE

Value Statement Examples
Value statements should …
• List the core principles that guide and direct the organization and its culture.
• Describe what the business believes in and how it will act towards all the parties
with which it interacts.
• Create a moral compass that guides decision-making and actions of the
business.
““We do the right thing. Period.” – Uber
“Treat your customers like human beings…” – L.L Bean
“We must be good citizens…” – Johnson & Johnson
“Openness, honesty, integrity, courage, respect, diversity and
balance…” – Disney
“I will never leave a fallen comrade to fall into the hands of the
enemy.“ – U.S. Army Rangers
“No fine print…” – Affirm
“We strive to minimize our negative impact on the environment.“
-- Ben and Jerry’s Ice-Cream

Starbucks’ Mission and Values
Mission Statement: “To inspire and nurture the human spirit— one
person, one cup, and one neighborhood at a time.”
Here are the principles (i.e. values) of how we live that every day:
Our Coffee -- It has always been, and will always be, about quality. We’re passionate about
ethically sourcing the finest coffee beans and improving the lives of people who grow them.
Our Partners -- We’re called partners, because it’s not just a job, it’s our passion. Together, we
embrace diversity to create a place where each of us can be ourselves. We always treat each
other with respect and dignity. And we hold each other to that standard.
Our Customers -- When we are fully engaged, we connect with, laugh with, and uplift the lives of
our customers— even if just for a few moments. It’s really about human connection.
Our Stores -- When our customers feel this sense of belonging, our stores become a haven, a
break from the worries outside, a place where you can meet with friends. It’s about enjoyment at
the speed of life—sometimes slow and savored, sometimes faster. Always full of humanity.
Our Neighborhood -- Every store is part of a community, and we take our responsibility to be
good neighbors seriously. We can be a force for positive action.
Our Shareholders -- We know that as we deliver in each of these areas, we enjoy the kind of
success that rewards our shareholders.

Homework Assignment #2
1. What is the Mission Statement for your business?
• Describe what the business is, what it does and what its priorities are.
• Let customers and the public know what the organization stands for.
• Explain what makes the business different from its competitors.
• Tell owners and employees why the business exists.
2. What is the Vision Statement for your business?
• Describe what your business (or the world) should be if successful long term.
• Be inspirational and aspirational to customers, owners and employees.
3. What is the Value Statement for your business?
• Describe what the business believes in and how it will act towards all the
parties with which it interacts.
• What will your business always do or never do?
• Create a moral compass that guides you and your employees in decision-
making and actions.
Submit assignment #2 to craig.linsky@scorevolunteer.org.

Jacksonville.score.org www.jacksonville.score.org
What’s Next?
In week two, you will learn …
Week 1 – Business Foundations
• Should You be an Entrepreneur?
• Your Business Vision & Self Assessment
• Business Plan Overview
• Developing a Support Network
• Creating a Legal Entity
• Mission, Vision & Value Statements
Week 2 – Product & Marketing
• The Four P’s of Marketing
• Generating Product Concepts
• Selecting a Pricing Method
• Product Distribution Channels
• Product Promotion & Social Media
Week 3 – Accounting & Finances
• Accounting Basics
• Understanding Financial Statements
• Determining Financing Needs
• Industry, Competitor & Market Analysis
• Selecting a Name for Your Business
Week 4 – Funding & Business Plans
• Sources of Funding
• Writing Your Business Plan
• Financial Projections

Remember to complete your homework assignments!
Send to … craig.linsky@scorevolunteer.org

This presentation was developed by Craig Linsky for the Jacksonville, Florida chapter of
SCORE. Any commercial or other use of this presentation by anyone other than SCORE
members requires permission from Craig Linsky or the Chairman of the Jacksonville
Chapter of SCORE.
If you have suggestions on additional details or other material that should be included,
ways to improve this presentation or have any follow up questions, please contact us at
craig.linsky@scorevolunteer.org.
The material in this presentation is a partial description only, offered for educational
purposes, and is not intended as legal advice or tax advice. You should consult with a
qualified, licensed Florida attorney for legal advice customized to your particular
situation, and a tax preparer or accountant for taxation advice.

Funded in part through a cooperative
agreement with the U.S. Small Business
Administration.
All opinions, conclusions, and/or
recommendations expressed herein are
those of the author(s) and do not
necessarily reflect the
views of the SBA.

Achieve Your Business Dreams - Session 1

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