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Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

Mar 26, 2015

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Logan Rollins
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Page 1: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

Business Start-Up Business Start-Up FundamentalsFundamentals

Entrepreneurial Workshop I Entrepreneurial Workshop I

Page 2: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

AGENDAThe Planning Process

Assessing personal and business needs

The importance of a business plan

Understanding business plan components

Page 3: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• What banks look for when assessing a loan request

• How to complete a loan application

The Reality of Obtaining Financing

Page 4: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

Cash Flow

Credit

Collateral

Contribution (or capacity)

Character (industry / references)

Condition

What Banks Look For

What Banks Look For

Page 5: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

1. Do you have children?

2. Do you have savings?

3. Is your spouse employed?

4. What do you do with your free time?

5. Are you accustomed to working long hours?

6. Are you a morning or night person?

Lifestyle Assessment

Page 6: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• Marketing

• Advertising

• Sales

• Tax Knowledge

• Insurance

Business Assistance Areas

Page 7: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• Business Finances

• Presentation Skills

• Communication Skills

• Legal Aspects

• Banking Services

Business Assistance Areas (con’t.)

Page 8: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• Selecting a Business Name

• Business Identification Numbers• Licenses and Permits• Taxes• Accounting System

Other Considerations

Page 9: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• Sole Proprietorship • Partnership• S Corporation • C Corporation• LLC – Limited Liability Co

Structural Forms of Business

Page 10: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

Internal Revenue Service -

www.irs.gov

MA Department of Revenue -

www.dor.state.ma.us

Inc.com - Where to start and grow your business.

www.inc.com

Entreworld - A World of Resources for Entrepreneurs

www.eventuring.org

Official Website of the State of MA -

www.mass.gov

Official Website of the State of RI -

www.ri.gov

All Business - Champions of Small Business

www.allbusiness.com

MA Assoc. of Community Development Corporations -

www.macdc.org

U.S. Small Business Administration (SBA) -

www.sba.gov

e Podunk -

www.epodunk.com

Useful Web Sites

Page 11: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• A plan gives you a path to follow• Planning forces you to examine all

aspects of your business• Planning is ESSENTIAL to raising capital• Your plan is a management tool• Your plan is a communications tool

Why Write a Business Plan?

Page 12: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• Neatness Counts!

• Use Simple Language

• Keep Your Points Concise

• Make Use of Tables and/or Graphs

Business Plan Format

Page 13: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

Effective Formatting includes:

• Headings

• Paragraphs

• Bold/Italics/Underline

• Bullets

Business Plan Format (con’t.)

Page 14: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

A. Mission Statement/Statement of Purpose

B. Table of Contents / Cover Page

C. Business Description

D. Marketing Plan

E. Financial Plan

Business Plan Outline

Page 15: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

This is the doorway to your plan. Keep it short, but illustrate the main points.

Main Points:

State purpose/structure of your business State purpose/amount of financing sought State any key operational expectations

Statement of Purpose

Page 16: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

a) Type/Industryb) Status (e.g. start-up, existing)c) Form (e.g. proprietorship, corporation)d) Location/Hours of operatione) Market descriptionf) Description of competitiong) Management/Personnel

Business Description

Page 17: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

MARKETING

Generates

interest

and leads.

SALES

Generates orders and accounts receivable and/or cash receipts.

Marketing vs. Sales

Page 18: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

Describe Your Customers Industry Trends and Characteristics List and Description of Your Competition Description of Your Niche and

Competitive Plan Market Segmentation

MARKETING PLANYour Customer are the Market!

Page 19: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• Product – good or service

• Pricing – mark-up and break-even analysis

• Promotion – advertising

• Place – channels of distribution

Marketing Mix

Page 20: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• How many employees needed?

• What kind of skills required?

• Experienced or trainable?

• Management/People skills?

Management and Personnel

Page 21: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• Balance Sheet• Projected Income Statement – 2 years• Sources and Uses of Funds• Projected Cash Flow by Month – 1st year

Financial Plan

Page 22: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• Historical Financial Statements of Business – 3 Years

• Personal Financial Statement

• IRS tax returns(personal & business) – 3 Years

Financial Plan (con’t.)

Page 23: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• The more the person reviewing your request can know about you AND your business, the better.

• Neatness and conciseness count

• Be honest.

Reminders for Completing Loan Application

Page 24: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

• Emphasize your strengths and state your weaknesses.

Let the loan officer know that YOU recognize areas for improvement.

• If you have questions, CALL!

Don’t submit an incomplete application.

Loan Application (con’t.)

Page 25: Business Start-Up Fundamentals Entrepreneurial Workshop I Business Start-Up Fundamentals Entrepreneurial Workshop I.

Business Assistance

Business Support Center

Loan Programs: Micro Loan/Mini Micro Loan Revolving Loan Fund (RLF) SBA 7A Packaging SBA 504

Services Offered by SEED