The document provides an overview of starting a small business. It discusses that businesses fall into categories of services, products, or a combination. Ideas come from identifying needs, wants, and desires. The document then outlines developing a business plan, including writing a description and mission statement, setting goals and objectives, creating a marketing plan, planning employees and management, and developing financial plans for startup costs, cash flow, operating budgets, and break even analysis. The goal is to research, plan, and succeed with a small business.

1. Business- The beginning

2. Goals for Today
 Understand business
 Understand where ideas for business come
from
 Learn the basics of starting a business
 Write a draft business plan, on your own

3. Types of Business
Businesses fall into 3 categories
Services (Most business start here…)
Product ( Most businesses want to be here)
Highly profitable business end up here:
Combination Services and Product

4. Ideas for Business
Business starts with an idea. Ideas for
business come from thinking about:
Needs
Wants
Desires
These are the Foundation of a Business.
Ideas come from lots of different
places…….

5. Service ideas
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Tutoring
Day Care
Washing Windows/Cars/Specialty Cleaning
Cleaning Homes
Delivery Service
Waste removal
Landscaping
Website design
Telemarketing
Transcriptionist

6. Product Ideas
• Bakery
• Agriculture
• Distribution
– Food
– Charcoal
– Teaching supplies
• Restaurant
• Souvenirs

7. Combination Service/Product
Ideas
• Tutoring that sells math calculators to
children
• Bakery that also specializes in catering
• Washing (Car, Windows, etc.) that also
sells cleaning solution.
• House Cleaning that sells mops, brushes,
rags, buckets.

8. Ideas
• Look around…
• Imagine…
• See the potential…

9. Starting a small business

10. What is SMALL
• Micro
• Small

11. Why is small business important?
• In U.S. – more than 22 million small
business.
• Nearly 50% of all U.S. payrolls.
• Lifeblood of most economies in the
capitalist countries.

12. Start with an Idea
• Research
• Develop Business Plan
– Mission
– Goals and Objectives
– Marketing Plan
– Employees and Management
– Financial Plan

13. Idea – House Cleaning
• RESEARCH???
– What are we looking for?

14. Research
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Economic
Demographic
Competitive
Market

15. Write a Business Plan
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Formal Business Description
Mission Statement
Goals and Objectives
Marketing Plan
Employees & Managing
Financial Plan

16. Description vs Mission Statement
• Business Description
– A house cleaning service.
• Mission Statement
– Provide immaculate cleaning services for
double income couples who don’t have time
to maintain their homes.

17. Objectives vs Goals
• Objectives
– Improve homes appearance and cleanliness
– Relieve burden of household cleaning duties
• Goals
– Clean 10 homes first month
– 3 home cleaning jobs per day after 6 months
• Goals must be measurable-

18. Marketing Plan
• Who are your customers
• How will you make your product /service
known to them
• Competition – who are they and how are
you better
– Differentiation by price, quality, service…
• Distribution Channels
• Trends

19. Employees and Management
• What makes a good employee
• Avoiding Problems
• Employ Fair Values
– Fair wage
– Fair treatment
– Equal Opportunity
– Safety

20. Financial Plan
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Start up Costs (Capital Requirement)
Cash Flow Analysis
Operating Budget
Break Even Analysis
• TAXES

21. Capital Requirements
What happens if you start a business and
you have a loss for the first few months?
- You need to “fund” this loss
- Through Savings
- Through Investors
- Payback?
- Through Debt
- Payback?

22. Cash Flow Analysis
CASH FLOW ANALYSIS
Units Sold Gross
Month 1
Revenue
Product A
Units Sold Gross
Month 2 Revenue
Units Sold Gross
Month 3 Revenue
Units Sold Gross
Month 4
Revenue
Cost per Unit =
Gross Revenue
CASH FLOW ANALYSIS
Example for Home Cleaning
Home
Month 1
1 home
Revenue per =
Gross
Home
Gross
Homes
Gross
Homes
Gross
Revenue Month 2 Revenue Month 3 Revenue Month 4
Revenue
10 400,000
20 800,000
30 1,200,000
40 1,600,000
500 Sq Meters
Gross Revenue
12,000
24,000
36,000
48,000

23. Operating Budget
OPERATING BUDGET
Expense
Month 1
Month 2
Month 3
Month 4
Month 5
Month 6
Cost of Product Sold
Cleaning Supplies
Labor
Loan Repayment
Other Expenses
Other Expenses
Other Expenses
TOTAL EXPENSES
House Cleaning Example
OPERATING BUDGET
Expense
Month 1
Month 2 Month 3 Month 4 Month 5 Month 6
Cleaning Supplies
100000 50000 50000 50000 50000
Labor
200000
Fuel Costs
50000 50000 50000 50000 50000
Advertising
20000 20000 20000 20000 20000
Mobile Phone
30000
6000
6000
6000
6000
Taxes
50000 50000 50000 50000 50000
Business License
100000
Other Expenses
50000 50000 50000 50000 50000
TOTAL EXPENSES
400000 226000 226000 226000 426000
50000
200000
50000
20000
6000
50000
50000
426000
TOTALS
400000
600000
350000
140000
66000
350000
100000
350000
2356000

24. BREAK EVEN ANALYSIS
:
FROM YOUR BUDGET REPORT ENTER
FIXED COSTS =
_______ Shilling
VARIABLE COSTS =
_______ Shilling
A) Total Cost PER Home =
___ Shilling per home
B) Price charged per home =
___ Shilling per home
TARGET PROFIT (6 MONTHS) =
_______ Shilling (goal)
(B – A = PROFIT)
Projected net loss without any profit goal for 6 months = (______)
In this scenario - either needs to lower costs or raise prices to break
even.

25. Summary
• Research
• Plan!
– Mission
– Goals and Objectives
– Marketing Plan
– Financial Plan
• Success!