Transcript Slide 1

Entrepreneurship
Presentation
Presented during April 2010 Chapter Meeting
Taken from presentation created by Gail McDonald and
Francine Ross Roden, Queens Alumnae Chapter
Topics Covered
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Interesting Facts
What is an Entrepreneur?
How to Start a Business
Resources
Interesting Facts
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There are approximately 25 million small businesses in the
country. More than 10.5 million Americans are selfemployed.
There were more businesses created than children born per
month in the year 2005.
The largest share of new business starters is represented by
people over 45 years old: about 65%. However,
Entrepreneurs in age group 20-34, are catching up fast since
4 years.
Over 50% of small businesses fail in the first year, and 95%
fail within the first five years.
In the 1980s, only 1 or 2 percent of graduating MBAs
wanted to start out as entrepreneurs; today 10 to 20 percent
want to be their own bosses.
Small businesses currently employ more than half of the
country's workforce and account for more than half of the
private sector economic output.
Small businesses provide approximately 75 percent of the
new jobs added to the economy
What is an Entrepreneur?
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Webster’s defines it as:
– “A person who organizes and directs a business undertaking,
assuming the risk for the sake of the profit.”
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This is an adequate definition, however it is not complete
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They are also
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Opportunity Seeker
Future Oriented
Committed to Being the Best
Market-Driven & Customer Oriented
Appreciative of their Employees
Realistic
Tolerant
Resilient
Focused and Decisive
Motivated
Enthusiastic
Determined
Persistent
Innovative
Well Organized
Good Communicators
Decisions makers
Problem solvers
The Truth is…
• The DESIRE to become an entrepreneur
comes naturally to a lot of people.
• The HARD part is turning that desire
into a business enterprise that works.
• It’s not EASY, but it can be done!
Things to Consider
• What do I do well enough that people would
pay for?
• What do I like to do often enough that I’ll
happily do it for 10 hours a day, 5 or 6 days a
week, for years on end?
• What product or service does the community
lack?
• Should I do it alone, or work with a partner
(s)?
• What legal structure will my business have?
• Where will my business be based?
• Do I have the equipment, or will I have to
buy it?
• How will I pay for the start-up costs?
How to Start a Business
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Self – Evaluation
Choosing the Right Business
Getting Educated
Legal Structures of Businesses
Location! Location! Location!
Start Up Capital
Business Plan – Write it Out!
Record Keeping
Pricing & Business Strategy
1. Self - Evaluation
• Ask yourself the following basic
questions:
– Am I completely committed to achieving
my goals?
– Do I have the ambition and persistence to
achieve and grow?
– Am I a hard worker?
– Do I know my strengths and weaknesses?
– Am I patient, organized, reliable,
trustworthy, and able to get along well
with others?
2. Choose the Right Business
• Have an idea of what type of business you
would like to start.
• Find an industry that’s appealing to you.
• Your business should fill a need in the
community.
• You must be able and willing to do this
business.
• You should have experience, education,
and or technical training in the type of
business you would like to start.
3. Get Educated
• Obtain the technical training,
education, and/or licensing that
you’ll need.
– Retailer ~ Resale License
– Home Business ~ City business License
or Home Occupation Permit
– Make or Sell Food ~ Health Permit
4. Decide on a Legal Structure
• When organizing a new business,
you’ll need to choose the right legal
structure.
• The 3 most common choices are:
– Sole Proprietorship ~ 1 owner with all
the risk.
– Partnership ~ 2 or more owners with all
the risk.
– Corporation ~ 2 or more owners with
no risk.
5. Find a Location
• Does the immediate surrounding area
need your product or service?
• How accessible is the potential location to
public transportation?
• Does parking and security meet the needs
of your customers?
• Does the site project the image you want?
• Can you pay the rent or mortgage and
still make a profit?
6. Acquire Start-Up Capital
• Where am I going to get the money
to start my business?
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Yourself and/or your Partners
Relatives and Friends
Line of Credit
Commercial Loan
Private Investors
7. Write a Business Plan
• A written business plan will be the
most important work you do in
preparing to open your new business.
• A Business Plan will help you to:
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Direct Your Start Up and Growth
Obtain Loans or Attract Investors
Focus the direction of your company
Guide basic decisions and running of the
business
Business Plan Format
• Lenders and Investors expect your
business plan to follow a format.
• General Headings are:
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Title Page
Executive Summary
Table of Contents
The Business
Marketing
Financial Analysis
Operations
Supporting Documents
8. Develop Record Keeping System
• Entrepreneurs must keep accurate
financial records in order for their
new business to succeed.
• Glance at how your business is doing
from time to time.
• Good Record Keeping includes:
– Opening a Business Checking & Savings
Account
– Using a general ledger to keep track of
expenses.
– Payroll Records
– Accounts Receivable and Accounts
Payable
9. Pricing Strategy
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How much is the customer willing to
pay?
Setting the right price is an Art, and part
Science.
Steps to follow in order to ensure the
price is right include:
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How much did it cost you to make the
product or offer the service?
Learn what your competitors charge
Identify any added value
Breakeven Point: The point where what
you take in equals what you’ve spent.
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Revenue = Expenses
This is the point where you start making
money.
10. Don’t be afraid to Ask for Help
• Hire an Attorney: new business owners
need someone to give them legal advice,
read contracts, article of incorporations,
etc.
• Find a Good Accountant: someone to
review your financial records and
prepare company taxes, etc.
• Other Professional Services: you may
need assistance making brochures,
designing a logo, servicing computers,
printing marketing materials, etc.
Other Basic Tasks
• Order Business Cards and Stationery
• Develop a Marketing Plan
• Buy necessary Business Insurance
• File Tax ID # with the IRS
• Obtain a Trademark for your
Company Name and Logo
• Reserve Web Site Domain Name.
Internet Resources
• Federal Government: (http://www.business.gov)
• U.S. Small Business Association:
(http://www.sba.gov)
• U.S. Patent and Trademark Office:
(www.uspto.org)
• Small Business Association’s Business Plan:
(http://www.sbaonline.sba.gov/starting/business
plan.html)
• Business Filings Inc. (www.businessfilings .com).
Free guide to incorporating.
• National Association of Small Business Investment
Companies (www.nasbic.com). Funding
information.
• SBA SCORE program: http://www.scorenyc.org.
Counseling for small businesses.
• Center for Women’s Business Research:
(http:///www.nfwbo.org)
• Entrepreneur Magazine:
(http://www.entrepreneur.com)
Bibliography & Suggested Reading
• Bibliography
– Norman, Jan. What No One Ever Tells You
About Starting Your Own Business, 2nd Ed.
Dearborn Trade Publishing, 2004.
– Harper, Stephen C. Starting Your Own
Business, 2nd Ed. McGraw-Hill, 2003.
– http://www.articlesphere.com/Article/Lifest
yle-Entrepreneur-Statistics/67279
– http://www.work-at-homeindex.net/lifestyle-entrepreneurs.html
• Suggested Reading
– Black Enterprise’s Guide to Starting a New
Business.
– S.B.A. Small Business Resource Guide.
– Choosing to be a Servant Leader by Jack Kahl.