The document discusses key considerations for aspiring entrepreneurs, including self-assessment questions to determine readiness for business ownership. It outlines different business structures, tax obligations, insurance requirements, and the need for licenses and permits, alongside the importance of a business plan and effective marketing strategies. Additionally, it provides insights into securing financing and managing human resources effectively.

1. Think Like an
Entrepreneur”
By
Dr. Deborah Ferber

2. Is business ownership right for you?
An “entrepreneur” A person who takes
calculated risks……
Self-assessment questions:
Are you a self-starter?
How well do you plan and organize?
Can you work long hours?
How will the business affect your family?

3. A startup:
Follow your own dream
Buying an existing business:
You will have current customers and
a known track record of performance
Franchising:
Brand recognition reduces marketing
costs

4. Does the idea suit your personality and interests?
Will you use your own name to brand the business?
Will it be financially viable?
Do you have startup money to invest?
What will your monthly expenses be?
Is there a current need in the marketplace?
Who are you competing with?

5. Different legal structures protect you in
different ways and offer varying tax
advantages:
Sole Proprietorships
General Partnerships and Joint Ventures
Corporations
Limited Liability Company (LLCs)

6. A “sole proprietorship” is the establishment of a
business by an individual; there is no legal entity
that owns ands operates the business
The owner is personally responsible for all debts
ands contracts
Profits are disclosed on the owner’s personal
income tax return and he or she can deduct
business losses

7. A “corporation” is created by filing articles of
incorporation with the appropriate agency in
the State
The corporation is separate and distinct from
the owners of the corporation
Owners of an interest in the corporation are
called shareholders or stockholders
They are protected from liability from the
corporation’s debts and obligations

8. A “limited liability company” (LLC) combines
liability protection with the tax status of a general
partnership
Owners of an interest in the LLC are called
members
Members have no personal liability for the debts
and obligations of the LLC
Members disclose profits and deduct losses on
their individual tax returns

9. Business Plan 101
A “business plan” is a roadmap that describes where
you’re going and how you’re going to get there
A guide to achieving your goals
A tool to spark investor interest
A document that helps employees understand the
company mission

10. Thinking About Tax Obligations as an Entrepreneur
Federal taxes are paid at intervals with IRS coupons,
usually through the Electronic Federal Tax Payment
System (EFTPS)
States tax structures vary; most require some form of
tax on small businesses
Local authorities may tax business property or all
businesses operating in the area
Research the laws that apply to you; accountants or tax
lawyers may be needed

11. Taxes and More Taxes
Federal income tax withholding
Businesses must withhold Federal income tax
from employees’ wages based on W-4
information
Federal unemployment tax
Pays unemployment compensation to workers
who lose their jobs
Social Security and Medicare
Required under the Federal Insurance
Contributions Act (FICA), also called self-
employment tax

12. “Don’t Forget Insurance”
Business property insurance
Liability and excess liability coverage
Worker’s Compensation
Health insurance
Life insurance
An insurance agent should be included in the business
startup process

13. Licenses and Permits
Licenses or permits are required to operate certain types of
businesses
One or more licenses may be required from the city, State,
county, and/or Federal Government
You may need multiple licenses if you work in more than one
jurisdiction
Failure to obtain the proper licenses can result in fines or the
loss of your business
The application process varies according to jurisdiction;
research the requirements in your area

14. Bonding
Bonding” guarantees that a business will perform its
assigned tasks. A bond is issued by a bonding
company after the business is thoroughly investigated
Surety bonds: The surety company agrees to
compensate the customer if the business fails to pay a
debt or meet an obligation
Fidelity bonds: Protect against the actions of
employees (such as embezzlement)
You must have an agent or broker to g

15. “Copyrights, Trademarks and Patents”
Copyrights, trademarks, and patents all deal with
intellectual property and how to protect it
“Intellectual property” is a product based on an
idea and it has some type of commercial value
Intellectual property includes a wide range of
products, such as books, musical compositions, and
works of art.

16. “The Five C’s For Credit”
How banks determine whether to loan you money:
Character: Credit history is very important!
Capacity: What is your track record of debt repayment?
Capital: How long will personal resources support both
you and the business?
Conditions: Current economic conditions
Collateral: Assets the company pledges as a source of
repayment for the loan

17. Secured and Unsecured Lines of Credit
If you have trouble getting financing, a “secured
line of credit” can be used to purchase equipment
Property or equipment is used as collateral, which
guarantees repayment
An “unsecured line of credit” does not require
collateral
This is given as a personal loan to the company’s
officers, based on the individuals’ credit histories

18. Accounting Methods
Sound accounting and bookkeeping practices are
essential to any business
Many businesses rely on an accountant to handle
financial recordkeeping
Computer programs such as Quicken, Peachtree,
or Quickbooks can simplify some bookkeeping
tasks

19. Cash and Accrual Methods of
Accounting
 The “cash basis” method of accounting requires
only that you record financial transactions when
money is paid or received
Not adequate for businesses that give credit to
their customers or maintain a large inventory
 The “accrual basis” method reports income
when earned and expenses when incurred, not
when money actually changes hands
Patents

20. Human Resource Management
 The Human Resources function deals with hiring
and managing employees
 Be specific when interviewing candidates
Avoid inappropriate and illegal questions
during the interview
 Provide competitive compensation and benefits
 Maintain detailed employee records
 Consider an Employee Stock Ownership Plan
(ESOP)

21. “Gorilla Marketing Plans”
A “marketing plan” serves as a blueprint for you to
follow to get your products and services known and
recognized. It has:
Competitor and issue analysis: challenges and
opportunities facing the business
Objectives: What do you want to achieve?
Action program: A “to-do” list
Budget: Detail expenses
Strategy: The Four “P’s”

22. The Four P’s of Marketing
Product: Describes features and benefits
Price: Lists prices and pricing strategy
Promotion: Tools or tactics to achieve
marketing objectives
Placement: Sales philosophies and
methods

23. Guerilla Tips to help you win the war
Public Relations and Publicity
1. The oldest guerrilla trick is old fashion PR so keep at it. Pick up
the phone and give local journalists what they need most; great
news content – its all about spinning your activity to make it a
human interest story. The Guerrilla marketing tactics below are
your means to this end.
Treat Your Premises like A Billboard
2. Give a Graffiti artist some free drawing space by letting him use
his artistry on your shutters or paint a mural on the side of your
Building e.g Homeless Charity Simon Community building.

24. Guerilla Tips to help you win the war
1. Do a Fake Protest A fake protest is a great way to get attention
for your business because it not only makes people aware of you,
it also shows them that you have the confidence in your products
that other companies don’t. Make sure you and your employees
are loud and proud and you will definitely get the attention of
anyone within earshot of you.
2. String Some Coupons on Trees Hanging coupons outside of
businesses is a newer marketing technique, but it is something that
is sure to get the attention of anyone who walks in front of your
doors. People respond when they see something out of the
ordinary, and they definitely respond when they see a chance to
save money.

25. Guerilla Tips to help you win the war
3. Start a Friendly Fight With the creation of social networks,
businesses are realizing that they have to use these mediums in
every way that they can to help spread the word about their
companies. A friendly fight is when you and another company
battle it out through the use of social networking and other
mediums by having the public vote on who has the better
products. This won’t harm your business; however, it would help
people to cast their vote judiciously
4. Graffiti Marketing You may think of graffiti as a nuisance, but
the fact is that you can use green graffiti to get the word out
about your company in your area. It’s actually considered an
environmentally friendly form of marketing because you aren’t
using up paper and the graffiti can be washed or cleaned off of
the streets and sidewalks

26. Guerilla Tips to help you win the war
Poster art – Think outside the box:

27. Entrepreneurial Advice from
Billionaires