What you will get from this presentation. The basic questions that you need to ask and answer before you start a business Discussion on each of these questions to help you answer them Simple steps to developing your idea Simple strategies to grow your business And…Why you can do this!

1. YES I CAN –START AND GROW MY
OWN BUSINESS
SUCCESS PLANNING FOR STARTING AND
GROWING YOUR BUSINESS
FACILITATED BY
MARC E. PARHAM

2. A FEW
SMALL BUSINESS FACTS
REASONS TO KEEP DOING WHAT YOU ARE DOING!

3. SMALL BUSINESS FACTS
•SMALL BUSINESSES EMPLOY 49.1% OF
PRIVATE SECTOR WORKERS
•59.1% OF ENTREPRENEURS WERE THE FIRST
IN THEIR FAMILY TO START A BUSINESS
•70% OF ENTREPRENEURS USED THEIR OWN
SAVINGS AS THEIR MAIN SOURCE OF FUNDING

4. SMALL BUSINESS FACTS
• IN THE NEXT 5 YEARS, 37% OF SMALL BUSINESSES
WILL HAVE MORE THAN 5 EMPLOYEES
• 13% OF U.S. ADULTS ARE EITHER STARTING A SMALL
BUSINESS, OR ARE A NEW SMALL BUSINESS
OWNER
• 69% OF ENTREPRENEURSHIP IS CONDUCTED
AT HOME

5. SMALL BUSINESS FACTS
•IN MOST STATES, SOMEWHERE
BETWEEN 50% AND 60% OF SMALL
BUSINESSES DO NOT HAVE WEBSITES
•73% OF SMALL BUSINESSES ARE
NOW USING SOCIAL MEDIA
•OWNERS SERVE AS THE MAIN MARKETERS
FOR 88% OF SMALL BUSINESSES

6. SMALL BUSINESS FACTS
• IMMIGRANT ENTREPRENEURS LAUNCH BUSINESSES AT MORE
THAN TWICE THE RATE OF NATIVE-BORN RESIDENTS
• AFRICAN-AMERICAN-OWNED BUSINESSES HAVE OUTPACED THE
REST OF THE COUNTRY’S BUSINESSES IN TERMS OF GROWTH.
• BETWEEN 1997 AND 2007, THE NUMBER OF COMPANIES OWNED
BY WOMEN GREW AT TWICE THE RATE OF THOSE OWNED BY
MEN.
• NINE PERCENT OF ALL U.S. COMPANIES ARE VETERAN-OWNED
BUSINESSES.

7. WHAT YOU WILL GET FROM THIS
PRESENTATION
•THE BASIC QUESTIONS THAT YOU NEED TO ASK AND
ANSWER BEFORE YOU START A BUSINESS
•DISCUSSION ON EACH OF THESE QUESTIONS TO
HELP YOU ANSWER THEM
•SIMPLE STEPS TO DEVELOPING YOUR IDEA
•SIMPLE STRATEGIES TO GROW YOUR BUSINESS
•AND…WHY YOU CAN DO THIS!

8. THE RIGHT MINDSET
• ENTREPRENEURSHIP REVISITED
• YOU ALREADY ARE AN ENTREPRENEUR
• YOU ARE NOT IN THIS ALONE
• YOU MUST HAVE DEDICATION AND
PASSION
• YOU MUST DEVELOP AND FOLLOW A PLAN
• AND…YES YOU CAN DO THIS

9. DEVELOPING YOUR
IDEA AND STARTING A
BUSINESS

10. QUESTIONS TO ASK
1. WHY SHOULD I START HOME BASED BUSINESS?
2. AM I READY TO START A BUSINESS?
3. DO I NEED A BUSINESS PLAN?
4. WHAT ARE THE FIRST STEPS TO STARTING A
BUSINESS?
5. WHAT DO I SELL?
6. WHO WILL BE MY CUSTOMERS?
7. HOW MUCH SHOULD I CHARGE?
8. HOW MUCH WILL IT COST ME TO START MY
BUSINESS?
9. HOW DO I DEVELOP MY BUSINESS IDEA?

11. 1. WHY SHOULD I START HOME BASED
BUSINESS?
•THE REAL QUESTION IS WHY SHOULD I NOT
START MY OWN BUSINESS?
•WHAT IF, A BUSINESS COULD USE YOUR
SERVICE OR SKILL WITH ABOUT HAVING TO
PAY ALL THE ADDITIONAL COST?
•WHAT IF, MULTIPLE BUSINESSES USED YOUR
SKILL OR SERVICE WITHOUT HAVING TO PAY
ALL ADDITIONAL COST?

13. 2. AM I READY TO START A BUSINESS?
• DO YOU HAVE A SKILL THAT PEOPLE WILL PAY TO
USE?
• DO YOU HAVE A HOBBY THAT PEOPLE WILL PAY
YOU TO DO FOR THEM?
• DO YOU HAVE A NEW IDEA THAT TO MAKE LIFE
EASIER FOR PEOPLE?
• THE FACT IS, IF THEY’RE NOT DOING IT
THEMSELVES, THEY’RE PAYING SOMEONE TO DO
IT, WHY NOT YOU?
• MOST PEOPLE FEEL THAT A STARTUP BUSINESS
HAS TO REPLACE THEIR INCOME. THIS IS NOT
TRUE.

15. 3. DO I NEED A BUSINESS PLAN?
•YOUR BUSINESS PLAN DESCRIBES
THESE IMPORTANT THINGS
• WHAT TYPE OF BUSINESS YOU ARE STARTING
• WHY YOU DECIDED TO START IT,
• WHAT YOU ARE GOING TO SELL,
• WHO YOU ARE GOING TO SELL IT TO,
• HOW MUCH ARE GOING TO CHARGE FOR WHICH ARE
SELLING
• HOW WE’RE GOING TO FINANCE YOUR BUSINESS
• HOW YOU’RE GOING TO OPERATE YOUR BUSINESS SO
THAT IT REMAINS SUCCESSFUL

17. THE SIMPLE STRATEGIC PLAN
•ASSESSMENT -WHO AM I AND WHERE AM I AT
•YOUR OBJECTIVES – YOUR GOALS, WHERE DO
YOU WANT TO GO
•THE PLAN – HOW YOU ARE GOING TO GET
THERE
•ACTION – TAKING DELIBERATE ACTIONS TO
GET THERE

18. 4. WHAT ARE THE FIRST THINGS I SHOULD
DO BEFORE IT START MY OWN BUSINESS?
• THE FIRST THREE STEPS BEFORE STARTING A BUSINESS
ARE;
1. RESEARCH!
2. RESEARCH!
3. RESEARCH!

19. 5. WHAT DO I SELL?
• THE REAL QUESTION IS, WHAT PRODUCT
OR SERVICE CAN YOU DO THAT PEOPLE
ARE ALREADY PAYING FOR?
• IF THEY ARE ALREADY PAYING FOR IT
WHY CAN’T THEY PAY YOU FOR THE
SAME PRODUCT OR SERVICE?
• IF YOU’RE GOOD AT WHAT TO DO,
• YOU TAKE PRIDE IN YOUR WORK,
• YOU GET YOUR WORK DONE WHEN YOU SAY YOU WILL
AND YOU CHARGE A FAIR PRICE,
• WHY SHOULD THEY NOT WANT TO PAY YOU FOR YOUR
PRODUCT OR SERVICE

21. 6. HOW MUCH SHOULD I CHARGE?
• THE FIRST AND MOST IMPORTANT FACTOR
IS HOW MUCH ARE PEOPLE ALREADY
PAYING FOR THE SAME PRODUCT OR
SERVICE.
• YOU SHOULD HAVE GOTTEN THIS
INFORMATION IN YOUR RESEARCH
PROCESS.
• THE NEXT IMPORTANT FACTOR IS HOW
MUCH CAN YOU AFFORD TO DO IT FOR
AND STILL MAKE IT WORTH YOUR WHILE.
• JUST BECAUSE PEOPLE PAY YOU TO DO
SOMETHING DOESN’T MEAN THAT YOU’RE
ACTUALLY MAKING MONEY.

22. 6. HOW MUCH SHOULD I CHARGE?
1.HOW MUCH MONEY DO YOU WANT TO
MAKE?
2.HOW MUCH TIME DO YOU PLAN TO SPEND
IN YOUR BUSINESS?
3.HOW MUCH ARE PEOPLE ALREADY
PAYING FOR YOUR PRODUCT OR
SERVICE?

23. 6. HOW MUCH SHOULD I CHARGE?
• THE FOLLOWING IS A VERY BASIC CALCULATION TO GET AN IDEA OF
HOW TO FIGURE OUT WHAT TO CHARGE
• YOU WOULD LIKE TO MAKE $10,000 DOLLARS THIS YEAR
• YOU PLAN ON SPENDING 10 HOURS A WEEK
• 10 HOURS PER WEEK X 52 WEEKS = 520 HOURS
• DIVIDE $10,000 HOURS X 520 HOURS =
• $19.23 OR ABOUT $20 PER HOUR
• THIS IS A GOOD ESTIMATE OF WHAT YOU NEED TO CHARGE FOR
YOUR SERVICE OR PRODUCT

24. 7. HOW MUCH WILL IT COST TO START
MY BUSINESS?
•THERE ARE A NUMBER OF
STANDARD COST TO LEGALLY
SET UP A BUSINESS.
•THESE COSTS ALONG WITH THE
MONEY THAT YOU WOULD NEED
TO SPEND TO BUY THE OTHER
ITEMS THAT WILL BE NEEDED
ARE CONSIDERED YOUR
STARTUP COSTS.

25. BASIC COST
• INCORPORATION WITH THE STATE - $125
• EMPLOYER IDENTIFICATION NUMBER (EIN) - $0
• BASIC WEBSITE $500-$1500
• BUSINESS CARDS $50 - $100
• BANK ACCOUNT SETUP - $100
• BUSINESS PLAN DEVELOPMENT $0 - $700
• BUSINESS PHONE $50 PER MONTH
• COMPUTER, PRINTER $400 - $1000

26. STARTUP COST
• TO DETERMINE YOUR STARTUP COSTS, YOU MUST
IDENTIFY ALL THE EXPENSES YOUR BUSINESS WILL
INCUR DURING ITS STARTUP PHASE.
• SOME OF THESE EXPENSES WILL BE ONE-TIME COSTS,
SUCH AS THE FEE FOR INCORPORATING YOUR
BUSINESS AND THE PRICE OF A SIGN FOR YOUR
BUILDING.
• SOME EXPENSES WILL BE ONGOING, SUCH AS THE
COST OF UTILITIES, INVENTORY, INSURANCE, ETC.

27. STARTUP
BUDGET
• ENTER THE EST. COST
• USE OTHER PLANS
• RESEARCH
• RESEARCH
• RESEARCH
Startup Budget
June 8, 2010
Cash Needed
to Start
Monthly Costs
Salary of owner-manager $6,000
All other salaries and wages 7,000
Rent 1,000
Advertising 2,000
Delivery expense 400
Supplies 500
Telephone 500
Other utilities 500
Insurance 600
Taxes, including social security 1,000
Interest 500
Maintenance 300
Legal and other professional fees 3,000
Miscellaneous 500
Subtotal $23,800
One-Time Costs
Fixtures and Equipment $10,000
Decorating and remodeling 1,000
Installation charges 500
Starting inventory 5,000
Deposits with public utilities 1,000
Legal and other professional fees 500
Licenses and permits 500
Advertising and promotion for opening 500
Cash 750
Other 200
Subtotal $19,950
Totals $43,750

28. SIMPLE STRATEGIES
TO GROW YOUR
BUSINESS

29. TIME
• HOW ARE YOU USING YOUR TIME?
• ARE YOU SPREADING YOURSELF TO THIN?
• ARE YOU DOING THE THINGS THAT YOU KNOW YOU SHOULD?
•CREATE A TIME MANAGEMENT PLAN
AND STICK TO IT FOR TWO WEEKS

30. THE PLAN
•REVIEW OR DEVELOP A BASIC PLAN
•IT DOESN’T HAVE TO BE BIG
•IT DOESN’T HAVE TO BE LONG
•IT JUST HAS TO BE….
•DEVELOP A NEW PLAN

31. MARKETING
• REALLY FIGURE OUT WHO YOUR REAL CUSTOMERS WILL BE
• WHY ARE THEY BUYING FROM WHO THEY ARE BUYING FROM
RIGHT NOW?
• HOW DO YOU GET THEM TO BUY FROM YOU
• HAVE YOU EVERY ASKED YOUR EXISTING CUSTOMER TO REFER
YOU TO THEIR FRIENDS
• DEVELOP YOUR UNIQUE SELLING POSITION STATEMENT?

32. TEAM
• WHO ARE YOUR GO TO PEOPLE?
• DO THEY UNDERSTAND YOUR PLAN? DO YOU HAVE A PLAN?
• HAVE YOU ASKED THEM HOW THEY WANT TO HELP YOU?
•HAVE A TEAM MEETING AND GO OVER YOUR PLAN

33. MONEY
• ARE YOU GROWING WITH NO PLAN?
• ARE YOU LOOKING FOR CUSTOMERS THAT CAN AFFORD
TO DO BUSINESS WITH YOU?
• DO YOU HAVE A CASH GAP PLAN?
• DO YOU HAVE A USP AND GUARANTEE.
•DEVELOP A CASH FLOW PLAN

34. PERSONAL DEVELOPMENT
• WHAT ARE YOU DOING TO DEVELOP YOU.
• BUSINESS DEVELOPMENT
• PERSONAL DEVELOPMENT
• LIFE DEVELOPMENT
• FAMILY DEVELOPMENT
•GET OUT AND DO SOMETHING?

35. SUMMARY
•YES YOU CAN START AND GROW YOUR
BUSINESS
•RESEARCH, RESEARCH, RESEARCH
•ASK FOR HELP
•TAKE TRAINING WORKSHOPS
•RESEARCH, RESEARCH, RESEARCH
•START TODAY!

37. THE BASIC QUESTIONS
• WHO
• WHO ARE YOU AND THE NAME OF YOUR BUSINESS
• WHAT
• WHAT TYPE OF BUSINESS AND WHAT ARE YOU SELLING?
• WHEN
• WHEN ARE YOU SELLING IT?
• WHERE
• WHERE ARE YOU GOING TO SELL IT?
•WHY
•AND WHY ARE YOU IN BUSINESS?