Capacity Capacity Building Seminar Building Seminar Presented at The Presented at The University of University of Mkar, Benue Mkar, Benue State State
How to Start and Finance a Business
Sep 06, 2014
Inspiring, informing and motivating you to launch a successful business.
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Capacity Building Capacity Building Seminar Presented Seminar Presented at The University of at The University of Mkar, Benue State Mkar, Benue State
Title: How To Title: How To Start and Start and
Finance a Small Finance a Small BusinessBusiness
Presented By Presented By Chinedum AzuhChinedum Azuh
Getting StartedGetting StartedIs business ownership right for you?Is business ownership right for you?An “entrepreneur” is a person who starts An “entrepreneur” is a person who starts
his or her own businesshis or her own businessSelf-assessment questions:Self-assessment questions:
– Are you a self-starter?Are you a self-starter?– How well do you plan and organize?How well do you plan and organize?– Can you work long hours?Can you work long hours?– How will the business affect your family?How will the business affect your family?
What Type of Business What Type of Business
Do You Want?Do You Want?A startup: A startup:
– Follow your own dreamFollow your own dreamBuying an existing business:Buying an existing business:
– You will have current customers and a You will have current customers and a known track record of performanceknown track record of performance
Franchising: Franchising: – Brand recognition reduces marketing Brand recognition reduces marketing
costscosts
Questions to Ask When Questions to Ask When Starting Up A New BusinessStarting Up A New Business
Does the idea suit your personality and interests?Does the idea suit your personality and interests?Will you use your own name to brand the Will you use your own name to brand the
business?business?Will it be financially viable?Will it be financially viable?
– Do you have startup money to invest?Do you have startup money to invest?– What will your monthly expenses be?What will your monthly expenses be?– Is there a current need in the marketplace?Is there a current need in the marketplace?– Who are you competing with?Who are you competing with?
The Business PlanThe Business Plan
A “business plan” is a roadmap that A “business plan” is a roadmap that describes where you’re going and how describes where you’re going and how you’re going to get thereyou’re going to get there
A guide to achieving your goalsA guide to achieving your goalsA tool to spark investors’ interestA tool to spark investors’ interestA document that helps employees A document that helps employees
understand the company’s missionunderstand the company’s mission
Key Elements Key Elements of the Business Planof the Business Plan
Description of your products and servicesDescription of your products and servicesMarket and industry analysis that demonstrates Market and industry analysis that demonstrates
the need for your businessthe need for your businessList of competitors, including their strengths List of competitors, including their strengths
and weaknessesand weaknessesMarketing strategy (sales approach)Marketing strategy (sales approach)Management team and operations planManagement team and operations planFinancial analysis: the investment neededFinancial analysis: the investment needed
Test Your Business Test Your Business Idea Before You InvestIdea Before You Invest
The greatest mistake you can make is to The greatest mistake you can make is to launch a new idea without testing it. Many launch a new idea without testing it. Many millions of Naira every year on products millions of Naira every year on products they did not test before introducing them to they did not test before introducing them to the market. Though entrepreneurial life is the market. Though entrepreneurial life is full of risky adventures but what we shall full of risky adventures but what we shall be discussing is how to take calculated risks.be discussing is how to take calculated risks.
Steps To Testing Steps To Testing Your Business IdeaYour Business Idea
Be Your Own Devil’s Advocate Be Your Own Devil’s Advocate Seek Out People in The Same BusinessSeek Out People in The Same BusinessConfirm The DemandConfirm The DemandCheck With Family & FamilyCheck With Family & FamilyCreate a Selling PromotionCreate a Selling PromotionUse The Seminar ApproachUse The Seminar Approach
Marketing Plan Marketing Plan A “marketing plan” serves as a blueprint for you A “marketing plan” serves as a blueprint for you
to follow to get your products and services to follow to get your products and services known and recognized. It has:known and recognized. It has:– Competitor and issue analysis: challenges and Competitor and issue analysis: challenges and
opportunities facing the businessopportunities facing the business– Objectives: What do you want to achieve?Objectives: What do you want to achieve?– Action program: A “to-do” listAction program: A “to-do” list– Budget: Detail expensesBudget: Detail expenses– Strategy: The Four “P’s”Strategy: The Four “P’s”
Name Your Name Your BusinessBusiness
What is in a business name? The right What is in a business name? The right business will distinguish you from a sea of business will distinguish you from a sea of multitude of competitors, give your multitude of competitors, give your customers a reason to patronize you, and customers a reason to patronize you, and help in the branding of your company. help in the branding of your company.
Register Your BusinessRegister Your BusinessStarting a small business requires the usual Starting a small business requires the usual
paperwork and registration. paperwork and registration.
Corporate Affairs Commission (CAC) is Corporate Affairs Commission (CAC) is responsible for this. But for a startup you responsible for this. But for a startup you might not really need to incorporate. A might not really need to incorporate. A business name registration will do. Getting business name registration will do. Getting a business name registration will enable you a business name registration will enable you to create a corporate account.to create a corporate account.
The Four P’s of The Four P’s of MarketingMarketing
Product: Describes features and benefitsProduct: Describes features and benefitsPrice: Lists prices and pricing strategyPrice: Lists prices and pricing strategyPromotion: Tools or tactics to achieve Promotion: Tools or tactics to achieve
marketing objectivesmarketing objectivesPlacement: Sales philosophies and methodsPlacement: Sales philosophies and methods
LicensingLicensingLicenses or permits are required to operate Licenses or permits are required to operate
certain types of businessescertain types of businessesOne or more licenses may be required from the One or more licenses may be required from the
city, State, county, and/or Federal Governmentcity, State, county, and/or Federal Government– You may need multiple licenses if you work in You may need multiple licenses if you work in
more than one jurisdictionmore than one jurisdictionFailure to obtain the proper licenses can result in Failure to obtain the proper licenses can result in
fines or the loss of your businessfines or the loss of your businessThe application process varies according to The application process varies according to
jurisdiction; research the requirements in your jurisdiction; research the requirements in your areaarea
Copyrights, Trademarks, Copyrights, Trademarks, and Patentsand Patents
Copyrights, trademarks, and patents all Copyrights, trademarks, and patents all deal with intellectual property and how to deal with intellectual property and how to protect itprotect it
““Intellectual property” is a product based Intellectual property” is a product based on an idea and it has some type of on an idea and it has some type of commercial valuecommercial value
Intellectual property includes a wide range Intellectual property includes a wide range of products, such as books, musical of products, such as books, musical compositions, and works of art.compositions, and works of art.
CopyrightsCopyrightsCopyrights protect individual creative Copyrights protect individual creative
expression. The Federal Copyright Act of 1976 expression. The Federal Copyright Act of 1976 specifies how to register a copyright; there are no specifies how to register a copyright; there are no State copyright lawsState copyright laws
If a work is in the “public domain,” anyone can If a work is in the “public domain,” anyone can use it without permission from the author or the use it without permission from the author or the author’s heirsauthor’s heirs
The U.S. Copyright Office explains how to The U.S. Copyright Office explains how to register literary works, visual art works, register literary works, visual art works, performance works, sound recording, serials and performance works, sound recording, serials and periodicals, and mask worksperiodicals, and mask works
TrademarksTrademarksA “trademark” is a brand name--a A “trademark” is a brand name--a
distinctive sign, logo, slogan, symbol, or distinctive sign, logo, slogan, symbol, or other emblem used by businesses to other emblem used by businesses to distinguish their products from othersdistinguish their products from others
TrademarksTrademarks do not expire and can apply do not expire and can apply indefinitelyindefinitely
Although trademarks can be registered, it Although trademarks can be registered, it is not required; just using a mark is not required; just using a mark establishes a common law right to itestablishes a common law right to it
PatentsPatents
A “patent” gives an inventor exclusive A “patent” gives an inventor exclusive use of his or her inventionuse of his or her invention
Patents are issued by the United States Patents are issued by the United States Patent and Trade Office (USPTO)Patent and Trade Office (USPTO)
Most inventors use a patent lawyer to Most inventors use a patent lawyer to help with the application processhelp with the application process
AccountingAccounting
Sound accounting and bookkeeping Sound accounting and bookkeeping practices are essential to any businesspractices are essential to any business
Many businesses rely on an accountant Many businesses rely on an accountant to handle financial recordkeepingto handle financial recordkeeping
Computer programs such as Quicken, Computer programs such as Quicken, Peachtree, or Quickbooks can simplify Peachtree, or Quickbooks can simplify some bookkeeping taskssome bookkeeping tasks
Human ResourcesHuman ResourcesThe Human Resources function deals with The Human Resources function deals with
hiring and managing employeeshiring and managing employeesBe specific when interviewing candidatesBe specific when interviewing candidates
– Avoid inappropriate and illegal questions Avoid inappropriate and illegal questions during the interviewduring the interview
Provide competitive compensation and Provide competitive compensation and benefitsbenefits
Maintain detailed employee recordsMaintain detailed employee records
Creating an Online Creating an Online PresencePresence
A Website can attract customers and boost A Website can attract customers and boost earningsearnings
Sales through the Internet can take place Sales through the Internet can take place internationally, 24 hours a dayinternationally, 24 hours a day
A professional Website designer can A professional Website designer can develop your site at a relatively low costdevelop your site at a relatively low cost
Promote your site through major search Promote your site through major search engines or a link exchange programengines or a link exchange program
Creating an Online Creating an Online PresencePresence
Put Your Business on Social Media: Facebook, Linedin, Put Your Business on Social Media: Facebook, Linedin, Tweeter etc.Tweeter etc.
Write Articles and Publish on Article Directories Like Ezine, Write Articles and Publish on Article Directories Like Ezine, Hubpages and Many MoreHubpages and Many More
Create a PowerPoint Presentation of Your Business and Post Create a PowerPoint Presentation of Your Business and Post it on a Site Like Slideshare.netit on a Site Like Slideshare.net
Create an E-book and Publish it Amazon Kindle, Smashword Create an E-book and Publish it Amazon Kindle, Smashword etc.etc.
Participate in Online Forums and Blogs Related to Your Participate in Online Forums and Blogs Related to Your Business.Business.
How To Raise Money To How To Raise Money To Start Your BusinessStart Your Business
There are several sources of money that you can tap to start and build your own business. I have compiled a list of creative ideas I have heard and used.
1.1. Joint Venture Joint Venture
2.2. Dip Into Your Savings Dip Into Your Savings
3.3. Sell Some Assets Sell Some Assets
4. 4. Get Love Money Get Love Money
5. 5. Obtain Supplier FinancingObtain Supplier Financing
How To Raise Money To Start How To Raise Money To Start Your BusinessYour Business
6. 6. Online Crowd FundingOnline Crowd Funding
www.kickstarter.com, www.indiegogo.com or www.RocketHub.com and www.vfinance.com.
7. 7. Sell Other People’s Stuff for Commission Sell Other People’s Stuff for Commission
8. 8. Sell Information Products Created from Your Sell Information Products Created from Your ExpertiseExpertise
9. 9. Take an Extra JobTake an Extra Job
10. 10. Get a Business Advisory CoachGet a Business Advisory Coach
Thank You Thank You for for
Listening !Listening !
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