oasis –let’s startoasisatt.org/wp-content/uploads/2017/03/oasis_erg_letsstart... · event on...
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© 2017 All rights reserved. OASIS ERG
OASIS – Let’s StartIntroduction to youth Entrepreneurship & Leadership
OASIS is an Employee Resource Group at AT&T
March 22nd 2017
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Please Share This
Event On Your Social
Media! Don’t forget to use our handles and hashtags
#OasisProject
#DECAATTPROJECT
@ATT
@DECAInc
#ATTImpact
@ConnectToGood
@OASIS_ERG
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Disclaimer:This is a very high level overview and should not be considered as
comprehensive, legal, tax related or accounting advice. You should seek
professional advice for legal, tax, accounting and other aspects of a business.
Your local SBA office should be able to guide you further and locate local
resources.
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The Pursuit of Happyness
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Maya's Ideas provides environmentally sustainable, fashionable accessories and clothing - designed in her home studio outside of Atlanta and sold to customers all over the world.
16 year old CEO, designer and activist and founded
Maya's Ideas in 2008 at the age of 8
10-20% of the profits go to local and global charities.
Maya's advice for young girls is to step back, explore and imagine. She wrote a book – “You got this!”
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Why start a business?Because you can!
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10 reasons to start your own business
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Control your destiny!
Change the
World
CreateJobs
Get Experience
Financial $$$
Freedom
Follow Passion
Tax Benefits
Build a Network
Give BackRecognition
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Objectives
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• Business Idea
• Value Proposition
• Research
• Business Models
• Marketing, Pricing and Sales
• Funding and Finances
• Strategy
• Leadership
• Business Structure & Resources
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Your Strengths as an Entrepreneur
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• Innovation + Creativity
• Persistence + Resiliency
• Flexibility
• Passion
Top 4
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Business Idea
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Coming up with a Business Idea
What do you have to offer?
What do you love to do?
Are there opportunities out there?
What do you want out of it?
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Did you know how Taxis work?:
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Tap the app, Get a Ride!• One tap and a car comes directly to you• Your driver knows exactly where to go• Payment is completely cashless
• Request• Ride• Pay
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Value proposition
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Value Proposition
Problems your product solves
Describe Features & Benefits
Advantages for customer
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Better or Best solution
Needs met & for whom
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Research
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Market Opportunity
Know your
Customer
Know
yourCompetition
Know your
industry
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Business ModelsHow to get your products to the customer!
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Home-basedBusiness
Online Business
Top 3 Popular Business Models
Low costsLow ExpensesLow Investment
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Needs TrafficCustomer contactDifferent Laws
Saves RentLow ExpensesLow Investment
Work LifeUnprofessionalZoning Laws
Part timeNo office neededNo Investment
LonelyUncertaintyOther Laws
Freelancing
Pros
Cons
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Pricing PlanAre you going to make money?
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Common Costs Product Costs Other Costs
Know your COSTS
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Property –Rent/Lease Equipment Utilities Transport Loans + Interest
Cost of Goods Sold (COGS) Inventory Damages Markdowns
Salaries Discounts Promotions
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23
Cost + small profit
Advantages:• Easy to find prices
• Less Risky and Simple
Disadvantages:
• Ignores customers
• Ignores competitors
Cost
Pricing Models
Price by Customer
Advantages:• Flexible pricing
• Maximize profits
Disadvantages:• Unhappy customers
• Competitors will benefit
Study the competition
Advantages:• Easy to use
• No research, analysis
Disadvantages:• Prices may be wrong
• Products may be different
CompetitionCustomer
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Based on:
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Marketing PlanTell the customers about your products!
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•Where can customers buy them?Place
4 P’s of Marketing
•How you will reach the customers?Promote
•How much will it cost?Price
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•What are you selling?Product
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Competition &Budget
PromotionPlacePriceProductTarget Market
#1#2
#3
Marketing Plan
Where, Who, Why?
Customer Types
Income, Lifestyle, Education
What is it?What does it
do for the customer?
How will it look? How will you package it?
Warranty, and other information – MEET the NEEDs
High prices, Sell Less for profits
Low prices, Sell more for profits
Volume Discounts?
Seasonal Discounts?
What are the costs of living & spending habits in the target area
Where will you sell products?
Sell Direct? Or through someone? Who are they?
How does the product get to the locations?
Air, Land or sea? Costs?
How will you store the product?
How will you deliver to Customers?
AdvertiseBOGO salesFree samples
Publicity - Media, Bloggers, Famous persons to endorse
MONITOR your promotions – make sure you know which ones WORK
Know, Study and Learn from your
competition
What do they do well? And don’t
Repeated strategies? They work!
Budget $ to
Research Advertise Promote
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Salesnot marketing
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People do not buy what you sell. They buy what has value to them.
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Sales Strategies
Communicate Customer Relations
Improve SalesMedia, Social Media, Flyers, Word of mouth and so on
Sales Calls – Cold Calls
Track results/approach
Treat your customers and employees well
Track all customer interactions and LEARN from them
Give away free samples
Buy one Get one Free
Send email Coupons
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Funding and Finances
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Pieces of the Financial Pie
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Build a budget &
Breakeven Analysis
Funding Sources
AccountingFinancial
Statements
Payroll
Financial Ethics
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Sale of products and services
Interest from loans given to customers
Cash from loans, other sources
IncomePurchases
Rent, Utilities
Supplies
Employee Compensation
Legal, Insurance, Taxes
Debt Service (Interest)
Expenses
Budget And Breakeven Analysis
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What is the breakeven point?Income = Expenses
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Bootstrapping Crowdfunding Loans
Top 3 Financing Options
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Pros:
You have controlCons:
You take most of the RISK
Pros:
Easy to set upTest your ideaCheap financingCons:
Lot of rules + may not reach goal
Pros:
SBA loan (micro)Less RiskCons:
Up to $50,000Credit HistoryNot many lenders
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Cash Flow Income
Statement
Balance Sheet
Where the money comes from
Where the money is spent
Also called Profit & Loss (P&L)
Income VS Expenses
Profitable OR Not
What you OWN
vs
What you OWE
Top 3 Statements you need to know about
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Employee Compensation
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Pay your people
“Start up” benefits (free food, signing bonuses, car leases)
Subsidized healthcare
401K (matching), Pensions
Stock Options
Paid time for vacation, comm. service, training
Commuter benefits
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Strategy
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Strengths Weaknesses opportunities Threats
Strategy (SWOT analysis tool)
• Items that the businesswill NOT focus on
• Items which are NOT it’s strengths
•Business Strengths
• Items that no one else can do, or do well
•Possibilities out there
•Plan future growth
•Competition
•Market Changes
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Leadership
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Top Qualities of a Leader
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IntegrityHonestyRespectFairTrustMentor
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How to find help
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Lots of resources
SBA Learning Center
SBA Community
OnlineFree Guidance
SBA Local Offices
SBDCs
WBCs
In-person More Organizations
Chamber of Commerce
Local Govt. SBDAs
Industry Groups
LocalSomeone to guide you
SCORE
Family, Friends and Community
Join Networks
MentorsResources
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Business Plan
Planning = Success
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UpdateMini PlansWhatFocusSuccess
#1#2
#3
Basic Business Plan
What do you want?
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How will it look like?
Target Market
Not Target Market
Core Product/s
Real Goals
List Steps
Set Deadlines
Track & Measure
Strategy
Sales
Marketing Things Change
Plans should too!
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Business Structure
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OthersPartnershipSole
Proprietorship
Top 3 Popular Business Structures (resources)
Simple + most commonOwner BusinessSame IncomeYou keep profitsYou owe the
Debts LossesLiabilities
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Two or more OwnersMust contribute
MoneySkillsPropertyLabor
$ shared by % ownedMust have written
agreementDecide Together
Partnership + CorporationOwners (Members):
One or moreOther LLCs
Profits + LossesPass through
Provides Limited Liability to members
Limited Liability
Company
Corporations Non-Profits Co-operatives
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Registering Your Business (resources)
•State and Local Taxes
•Employer Identification NumberEIN
•Permits & LicensesPermits
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•“Doing Business As” NameDBA
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Proven Skills – Not just good grades!
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ProcurementLogistics & PlanningCustomer RelationsFinancing AccountingRisk ManagementMarketingPricing
Strategic ThinkerProblem SolverCommunicatorLeader MentorResource Manager
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What are your Strengths and Experience?
What problems can you solve for the business?
Why you?
What’s your Value Proposition
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http://oasisatt.org/oasis-lets-start-resources/
For more details visit the link below and click on your event
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