small business development center at...
TRANSCRIPT
Small Business Development Center at LCCC
Business Start-Up Basics I
Lisa Hutson
Business Advisor
Susan Patton Business Advisor
440-366-4370 www.lorainccc.edu/sbdc
Ana Badillo Business Advisor
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What to Expect…
Welcome and Introductions Course Objectives Steps in Starting Your Own Business Business Plan Networking Your Next Steps Class Evaluation
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SBDC of Ohio
Business Consulting and Training
Free, Professional, In-Depth and Confidential
Assistance for All Stages
Pre-Venture, Start-Up, Existing Small Businesses
Network of 42 Centers throughout Ohio
Includes International Trade, Manufacturing & Technology (STMA, Magnet), Government Contracts (PTAC), GoldmanSachs
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SBDC Assistance Available
One-on-One Counseling
Business Plan Guidance
Marketing Assistance
Financial Projections and Budgets
Human Resources
General Business Questions
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Lorain County Growth Partnership Resources
Lorain County Community College
GLIDE
Blackstone LaunchPad
Fab Lab
Credit Courses
Team Lorain County
Lorain Chamber of Commerce
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Are you…
Are you an Entrepreneur?
en·tre·pre·neur äntrəprəˈno͝or,-ˈnər
Noun
-a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.
Synonyms:
businessman/businesswoman, enterpriser, speculator, tycoon, magnate, mogul
Are you an Inventor?
in·ven·tor inˈventər
Noun
-a person who invented a particular process or device or who invents things as an
occupation.
Synonyms: originator, creator, innovator
or
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Look at Yourself
Are you good at something?
Do you have an idea?
Can you make something?
Is it different?
Is it better?
Can you SELL/PROMOTE?
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Look at Yourself
Entrepreneurial Quiz
Do you have what it takes?
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20 Questions Before Starting
How much money do I need to get started?
What products/services will my business provide?
Am I prepared to spend the time and money needed to get my business started?
What differentiates my business idea and the products/services I will provide from others in the market?
Who is my ideal customer?
What types of suppliers do I need?
Where will my business be located?
How many employees will I need?
What kind of business do I want?
Why am I starting a business?
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20 Questions Before Starting
How will I set up the legal structure of my business?
Will I need to get a loan?
How will I price my product compared to my competition?
How will I advertise my business?
Who is my competition?
What kind of insurance do I need?
What taxes do I need to pay?
How will I manage my business?
How long do I have until I start making a profit?
How soon will it take before my products/services are available?
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Business Success
What You Must Have to Succeed
Management Skills
An Operating Strategy
Plan of Action
Money
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Methods to Start
Starting from Scratch
Your Ideas
Your Plan
Buying a Franchise
Business Plan
Marketing
Buying an Existing Business
Known Brand
Systems in Place
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What is the Purpose of Your Business Plan?
Looking for Financing? Using as a Project Plan? Self Guidance?
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A Business Plan
Precisely defines goals
Serves as firm’s resume
Helps you allocate resources properly, handle unforeseen complications and make good business decisions
Required for a loan application
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Basic Business Plan Components
Cover Page
Executive Summary
Your Company The products/services that you sell Your audience/ideal client Future of your business and industry
Company Description Key employees of your business, such as CEO, President & Vice President Mission statement Details about the products or services your business will provide Qualities that will make your business a success
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Business Plan Components cont.
Market Research Target Customer Competitive Analysis Legal/Regulatory requirement impacting your business and industry
Product/Service Line Detailed description of Product or Service How does it benefit customers and meet their needs Advantages over competition Current development stage (idea/prototype)
Sales and Marketing How will company reach customers & sell product/service (Detailed description)
How will company communicate with customers How will company advertise How will company grow
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Business Plan Components cont.
Finances 1-3 years (current or projected)
Balance Sheet
Profit/Loss Statement (Income Statement)
Cash Flow Analysis
Total Project Cost/Financing Request
Start-Up Costs
Others to consider: Pricing, Etc.
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Where to Find Samples?
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SBA.gov
Learning Center
SBA Tools
SBA Videos
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SCORE.org
Workshops (online)
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SBDC at LCCC
Services
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How to get started Market Research
Gather Primary Data and Information
Customer
Industry
Product/Service
Research Your Business Idea
Demand/Need for Your Product
Competition
Define Target Market
Pricing Strategies
Legal and Regulatory Requirements
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Market Research Resources
www.naic.com – know your competitors and industry market
Cleveland Public Library (Cleveland Patent and Trademark Resource Center)
US census data (demographics for target customers)
Library
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Business Plan Template
Introduction - Company Description
Describe your novel solution that addresses a large market pain or problem (Limit to 2-3 sentences)
What is your product/service?
What is your competitive advantage?
What is your “niche”?
Communicate traction (i.e. what you have accomplished or how you will accomplish)
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Market Need/Opportunity
What area of “pain” or unmet need does your product/service/technology address?
Is it something customers absolutely need to have?
What is your value proposition that customers cannot live without it?
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Offering
Discuss your product/service
Explain what makes this opportunity unique from others in the market
Describe where you fit in the value chain
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Competitive Advantage:
What is your strategy for product/service differentiation?
Strategic Partners
Production
Cost
What is your competitive advantage?
What is your “niche”?
Why customers will choose you over the competition?
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Go-to-Market Strategies
Explain how you will make money, and who pays you?
How will you scale your business model (marketing, social media, etc.)
How does your price compares to your competitors?
Who can be your strategic partners?
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Who are your Customers?
Who is Your Market?
People you will actively solicit, target, and pursue to sell your products or services
What do you need to know about them?
Demographics
Geographic
Behaviors
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Management Team
Describe the backgrounds of the founder(s), current management team, and board of directors/advisors members.
If you haven't assembled a board of directors/advisors, or employees yet, describe your idea of a "dream team" and specifically how or what you envision them contributing.
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Financials
What are your financials from a balance sheet, income statement, and cash flow standpoint?
Start-up business should have projections for first 3 years with monthly breakdown
Existing business should have 3 years of financial history
What is your realistic plan regarding milestones, execution, and cash management
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Starting a Business in Ohio
www.sos.state.oh.us/sos/businesses.aspx
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Business Types
Sole Proprietorship
General Partnership
Limited Liability Company (LLC)
Corporation
Nonprofit
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Sole Proprietorship
Single owner
No legal distinction between the business and the owner
Ease of creation and function
All business profits are taxes as personal income
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General Partnership
Two or more owners
Pooling of owner assets (both monetary and skill sets)
Unlimited personal liability for all debts
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Limited Liability Company (LLC)
Combines elements of partnership and corporate structures
May be formed in OH for a profit or nonprofit
More flexible than a corporation
Well-suited for companies with only one owner
Assets of the owners are protected
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Corporation
For-Profit for anyone, singly or jointly with others, and without regard to residence
Must file Original Articles of Incorporation before doing business in OH
Name of the corporation must include: “Company,” “Co.,” “Corporation,” “Corp.”, “Incorporated,” “Inc.”
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Non-Profit Organizations
Formed for charitable, educational, religious, scientific, community development or other socially beneficial purposes
Special Considerations
Apply for Tax Exemption at www.irs.gov
Contact Department of Taxation
Contact Ohio Attorney General
If the intent is to engage in solicitation activities
Apply for a Nonprofit Postal Permit
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Networking
Chambers of Commerce
Professional Associations
Trade Shows
Business Seminars
Social Media
Networking Groups
FEBE3 –Wednesdays at 10:00am
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What’s Next?
Entrepreneurial Workshops at SBDC
Business Start-Up II (learn the basics on how to project start-up cost, potential sales, profits, etc.)
Business Start-UP III (learn the basic of a Balance Sheet, Profit & Loss Statement, basic chart of accounts, etc.)
How to Request Individual Business Counseling
www.lorainccc.edu/sbdc
440-366-4370
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