Transcript Slide 1

Delta Sigma Theta Sorority, Inc.
*****Sample Workshop*****
Entrepreneurship
&
How to Start a Business
Presented by
Expert’s Name
Chapter and or Company Affilliation
Created by Gail McDonald and Francine Ross Roden
Queens Alumnae Chapter
Agenda
I.
II.
II.
Definition of an Entrepreneur
Key Entrepreneurial Qualities
How to Start a Business
1.
2.
3.
4.
5.
Self – Evaluation
Choosing the Right Business
Getting Educated
Legal Structures of Businesses
Location! Location! Location!
Agenda (cont’d)
6. Start Up Capital
7. Business Plan – Write it Out!
8. Record Keeping
9. Pricing & Business Strategy
III.
IV.
V.
Basic Tasks
Resources
Thank You!
Ice Breaker Time!
It’s time to get to know you!
What is an
Entrepreneur?
Webster’s Dictionary
Definition
“A person who organizes
and directs a business
undertaking, assuming the
risk for the sake of the
profit.”
This is an adequate definition,
however it is not complete…
Key Entrepreneurial
Qualities
1.
2.
3.
4.
5.
6.
7.
8.
9.
Opportunity Seeker
Future Oriented
Committed to Being the Best
Market-Driven & Customer
Oriented
Value their Employees
Be Realistic
Be Tolerant of the Tedium
Be Resilient
Be Focused and Decisive
Key Entrepreneurial
Qualities
1.
2.
3.
4.
5.
6.
7.
8.
9.
Motivated
Enthusiastic
Determined
Persistent
Innovative
Well Organized
A Good Communicator
Able to Make Decisions
Able to Solve Problems
The Harvard Business
Review says…
“The strongest motivation for
entrepreneurs is the desire to
do something better or more
efficiently.”
Other common motivators include:
– A drive for Achievement
– A desire for Power or Wealth
– A desire to fulfill a dream
The Truth is…
The DESIRE to become an
entrepreneur comes
naturally to a lot of people.
THE HARD PART… turning
that desire into a business
enterprise that works.
IT’S NOT EASY, BUT IT CAN
BE DONE!
How to Start a Business
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?
1. Self - Evaluation
Ask YOURSELF the following basic questions:
1. Am I completely committed to
achieving my goals?
2. Do I have the ambition and
persistence to achieve and grow?
3. Am I a hard worker?
4. Do I know my strengths and
weaknesses?
5. Am I patient, organized, reliable,
trustworthy, and able to get along
well with others?
If most of your answers
to those questions
where YES, you’re
emotionally ready to
start your business.
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.
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.
Sole Proprietorship
1. You are the Sole Owner.
2. Absolute authority over all
business decisions.
3. Easiest to start, less
government regulation,
subject to lower taxes.
(Business income is taxed
as the personal income of
the owner.)
4. Unlimited Personal Liability
(Legal and Financial).
Partnership
1. Business of 2 or more owners
or partners.
2. Partners combine talents,
ideas, and capital to form one
business.
3. Usually only an oral agreement
is made between two or more
persons.
4. Recommended written
partnership agreement.
5. General or Limited Partners.
6. Legal and financial liability
extends to partners.
Corporation
1. Most complex and costly.
2. Considered a legal entity.
3. Stockholders make
decisions for the
corporation through a Board
of Directors.
4. Stockholders have limited
liability.
5. Subject to double taxation;
corporate and stockholders.
Limited Liability Company
• A hybrid or has some
characteristics of a
partnership and corporation.
• Provides limited liability for
owners, not unlimited
personal liability.
• Protects individual owners
from legal and financial
liability if the business fails
or looses a lawsuit.
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?
–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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–
–
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Title Page
Executive Summary
Table of Contents
The Business
Marketing
Financial Analysis
Operations
Supporting Documents
8. Establish a Record Keeping System
1. Entrepreneurs must keep
accurate financial records in
order for their new business to
succeed.
2. Glance at how your business is
doing from time to time.
3. Good Record Keeping includes:
1. Opening Business Checking &
Savings Account
2. Keeping track of a General Ledger
3. Payroll Records
4. Accounts Receivable and
Accounts Payable
9. Pricing Strategy
How much is the customer willing to
pay?
1. Setting the right price is an Art, and part
Science.
2. Steps to follow in order to ensure the
price is right include:
• 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.
Revenue = Expenses
This is the point where you start making
money.
10. Get Help to Make your Business
Better
1.
2.
3.
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.
Believe & You Will
Succeed!
Having your own business can
be exciting, challenging, fun,
and profitable.
If you really want to start a
business, and you believe you
can make it work, go ahead
and go for it.
Believe & You Will Succeed!
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.
Internet Resources
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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/businesspl
an.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)
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.