The document provides information for those interested in becoming an entrepreneur, outlining the pros and cons of being an entrepreneur such as the ability to be your own boss but also having no regular paycheck. It discusses options for generating business such as becoming a franchisee, purchasing an existing business, or starting your own business and offers suggestions for financing a new business venture. The document aims to help those considering entrepreneurship by sharing insights and strategies for becoming a successful business owner.

1. Becoming an Entrepreneur
Tim McLellan
Partner, B2BCFO®
March 1, 2012
www.b2bcfo.com

2. My Background
• 25 years in “Corporate America”
• Last corporate job was closing down a
$300 million 1,100 employee business
unit.
• Thought – “There must be a better way!”
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3. How Do I Make Money?
• Serve as Part Time CFO for several businesses.
• Work with companies that have outgrown their in
house bookkeeping / accounting capabilities.
• Help businesses increase profitability, monitor
performance, bank loans, fund future growth
plans
• Responsible for finding clients, negotiating and
setting fees.
• Part of a nationwide network of 200 partners, 8
in Atlanta.
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4. Being your own boss - Pros
• You can make all the decisions
• Flexible schedule
• Clear Goals and Objectives
• Work Harder = Increase Income
• If it doesn’t work, fix it.
• Tax deductable expenses
• Is it really more risky?
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5. Being your own boss - Cons
• Start up costs
• No regular paycheck
• No paid vacation or holidays
• Health insurance may be a challenge
• It’s lonely at the top
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6. Franchise or Not?
• Any business can be a franchise
– Restaurant
– Financial Services
– Home Repair
– Auto Repair
– Business Consulting
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7. Franchise or Not?
• Franchise
– Initial fee plus ongoing monthly payments
– Buying a system – process, training,
advertising, market research
– Territory restrictions
– Business restrictions
– Due Diligence – call current franchisees
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8. Franchise or Not?
• No Franchise
– Initial cash outlay is lower
– No operating procedures
– No territory restrictions
– No business restrictions
– You will make mistakes that cost you time and
money
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9. Buy Existing Business
• You purchase customer list, business methods, patents /
trademarks, employees, business assets
• Why is business being sold?
– Retirement, etc – new buyer will pay a premium
– Fire Sale – new buyer will get a “deal”, but may not be able to
turn business around.
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10. Financing your Business
• Personal Savings
• Retirement Accounts – borrow from 401(k), invest 401(k)
• Home Equity (?)
• Friends and family
• Angel Investors
• Venture Capital
• After Start Up:
– Accounts Receivable Factoring, Credit Card Advances
– Bank Loan secured by assets of business.
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11. Results!
Revenue by Year
2006 2007 2008 2009 2010 2011 2012P
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12. Selling / Networking
• Chambers of Commerce
• Rotary, Kiwanis, etc
• Church
• Other parents
• Linked In
• Facebook, Twitter, etc
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13. $15 Resource
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