yes i can - develop my idea and start a business

YES I CAN –START AND GROW MY OWN BUSINESS

SUCCESS PLANNING FOR STARTING AND GROWING YOUR BUSINESS

FACILITATED BY

MARC E. PARHAM

A FEWSMALL BUSINESS FACTS

REASONS TO KEEP DOING WHAT YOU ARE DOING!

SMALL BUSINESS FACTS• SMALL BUSINESSES EMPLOY 49.1% OF PRIVATE

SECTOR WORKERS

• 59.1% OF ENTREPRENEURS WERE THE FIRST IN THEIR FAMILY TO START A BUSINESS

• 70% OF ENTREPRENEURS USED THEIR OWN SAVINGS AS THEIR MAIN SOURCE OF FUNDING

SMALL BUSINESS FACTS• IN THE NEXT 5 YEARS, 37% OF SMALL BUSINESSES

WILL HAVE MORE THAN 5 EMPLOYEES

• 13% OF U.S. ADULTS ARE EITHER STARTING A SMALL BUSINESS, OR ARE A NEW SMALL

BUSINESS OWNER 

• 69% OF ENTREPRENEURSHIP IS CONDUCTED AT HOME 

SMALL BUSINESS FACTS• IN MOST STATES, SOMEWHERE BETWEEN 50%

AND 60% OF SMALL BUSINESSES DO NOT HAVE WEBSITES 

• 73% OF SMALL BUSINESSES ARE NOW USING SOCIAL MEDIA 

• OWNERS SERVE AS THE MAIN MARKETERS FOR 88% OF SMALL BUSINESSES

SMALL BUSINESS FACTS• IMMIGRANT ENTREPRENEURS LAUNCH BUSINESSES AT MORE

THAN TWICE THE RATE OF NATIVE-BORN RESIDENTS

• AFRICAN-AMERICAN-OWNED BUSINESSES HAVE OUTPACED THE REST OF THE COUNTRY’S BUSINESSES IN TERMS OF

GROWTH.

• BETWEEN 1997 AND 2007, THE NUMBER OF COMPANIES OWNED BY WOMEN GREW AT TWICE THE RATE OF THOSE

OWNED BY MEN.

• NINE PERCENT OF ALL U.S. COMPANIES ARE VETERAN-OWNED BUSINESSES.

WHAT YOU WILL GET FROM THIS PRESENTATION• THE BASIC QUESTIONS THAT YOU NEED TO ASK AND

ANSWER BEFORE YOU START A BUSINESS

• DISCUSSION ON EACH OF THESE QUESTIONS TO HELP YOU ANSWER THEM

• SIMPLE STEPS TO DEVELOPING YOUR IDEA

• SIMPLE STRATEGIES TO GROW YOUR BUSINESS

• AND…WHY YOU CAN DO THIS!

THE RIGHT MINDSET• ENTREPRENEURSHIP REVISITED

• YOU ALREADY ARE AN ENTREPRENEUR

• YOU ARE NOT IN THIS ALONE

• YOU MUST HAVE DEDICATION AND PASSION

• YOU MUST DEVELOP AND FOLLOW A PLAN

• AND…YES YOU CAN DO THIS

DEVELOPING YOUR IDEA AND

STARTING A BUSINESS

QUESTIONS TO ASK1. WHY SHOULD I START HOME BASED BUSINESS?

2. AM I READY TO START A BUSINESS?

3. DO I NEED A BUSINESS PLAN?

4. WHAT ARE THE FIRST STEPS TO STARTING A BUSINESS?

5. WHAT DO I SELL?

6. WHO WILL BE MY CUSTOMERS?

7. HOW MUCH SHOULD I CHARGE?

8. HOW MUCH WILL IT COST ME TO START MY BUSINESS?

9. HOW DO I DEVELOP MY BUSINESS IDEA?

1. WHY SHOULD I START HOME BASED BUSINESS? • THE REAL QUESTION IS WHY SHOULD I NOT

START MY OWN BUSINESS?

• WHAT IF, A BUSINESS COULD USE YOUR SERVICE OR SKILL WITH ABOUT HAVING TO PAY ALL THE ADDITIONAL COST?

• WHAT IF, MULTIPLE BUSINESSES USED YOUR SKILL OR SERVICE WITHOUT HAVING TO PAY ALL ADDITIONAL COST?

ENTREPRENEURSHIP FAMILY

TREE

2. AM I READY TO START A BUSINESS?

• DO YOU HAVE A SKILL THAT PEOPLE WILL PAY TO USE?

• DO YOU HAVE A HOBBY THAT PEOPLE WILL PAY YOU TO DO FOR THEM?

• DO YOU HAVE A NEW IDEA THAT TO MAKE LIFE EASIER FOR PEOPLE?

• THE FACT IS, IF THEY’RE NOT DOING IT THEMSELVES, THEY’RE PAYING SOMEONE TO DO IT, WHY NOT YOU?

• MOST PEOPLE FEEL THAT A STARTUP BUSINESS HAS TO REPLACE THEIR INCOME. THIS IS NOT TRUE.

SELF ASSESSMENT

3. DO I NEED A BUSINESS PLAN?

•YOUR BUSINESS PLAN DESCRIBES THESE IMPORTANT THINGS

• WHAT TYPE OF BUSINESS YOU ARE STARTING

• WHY YOU DECIDED TO START IT,

• WHAT YOU ARE GOING TO SELL,

• WHO YOU ARE GOING TO SELL IT TO,

• HOW MUCH ARE GOING TO CHARGE FOR WHICH ARE SELLING

• HOW WE’RE GOING TO FINANCE YOUR BUSINESS

• HOW YOU’RE GOING TO OPERATE YOUR BUSINESS SO THAT IT REMAINS SUCCESSFUL

REVIEW SAMPLE

BUSINESS PLANS

THE SIMPLE STRATEGIC PLAN•ASSESSMENT -WHO AM I AND WHERE AM I AT

•YOUR OBJECTIVES – YOUR GOALS, WHERE DO YOU WANT TO GO

•THE PLAN – HOW YOU ARE GOING TO GET THERE

•ACTION – TAKING DELIBERATE ACTIONS TO GET THERE

4. WHAT ARE THE FIRST THINGS I SHOULD DO BEFORE IT START MY OWN BUSINESS?• THE FIRST THREE STEPS BEFORE STARTING A BUSINESS ARE;

1. RESEARCH!

2. RESEARCH!

3. RESEARCH!

5. WHAT DO I SELL?• THE REAL QUESTION IS, WHAT PRODUCT

OR SERVICE CAN YOU DO THAT PEOPLE ARE ALREADY PAYING FOR?

• IF THEY ARE ALREADY PAYING FOR IT WHY CAN’T THEY PAY YOU FOR THE SAME PRODUCT OR SERVICE?

• IF YOU’RE GOOD AT WHAT TO DO, • YOU TAKE PRIDE IN YOUR WORK,

• YOU GET YOUR WORK DONE WHEN YOU SAY YOU WILL AND YOU CHARGE A FAIR PRICE,

• WHY SHOULD THEY NOT WANT TO PAY YOU FOR YOUR PRODUCT OR SERVICE

RESEARCH BUSINESS IDEA

6. HOW MUCH SHOULD I CHARGE?

• THE FIRST AND MOST IMPORTANT FACTOR IS HOW MUCH ARE PEOPLE ALREADY PAYING FOR THE SAME PRODUCT OR SERVICE.

• YOU SHOULD HAVE GOTTEN THIS INFORMATION IN YOUR RESEARCH PROCESS.

• THE NEXT IMPORTANT FACTOR IS HOW MUCH CAN YOU AFFORD TO DO IT FOR AND STILL MAKE IT WORTH YOUR WHILE.

• JUST BECAUSE PEOPLE PAY YOU TO DO SOMETHING DOESN’T MEAN THAT YOU’RE ACTUALLY MAKING MONEY.

6. HOW MUCH SHOULD I CHARGE?1.HOW MUCH MONEY DO YOU WANT TO

MAKE?

2.HOW MUCH TIME DO YOU PLAN TO SPEND IN YOUR BUSINESS?

3.HOW MUCH ARE PEOPLE ALREADY PAYING FOR YOUR PRODUCT OR SERVICE?

6. HOW MUCH SHOULD I CHARGE?• THE FOLLOWING IS A VERY BASIC CALCULATION TO GET AN IDEA OF

HOW TO FIGURE OUT WHAT TO CHARGE

• YOU WOULD LIKE TO MAKE $10,000 DOLLARS THIS YEAR

• YOU PLAN ON SPENDING 10 HOURS A WEEK• 10 HOURS PER WEEK X 52 WEEKS = 520 HOURS

• DIVIDE $10,000 HOURS X 520 HOURS =

• $19.23 OR ABOUT $20 PER HOUR

• THIS IS A GOOD ESTIMATE OF WHAT YOU NEED TO CHARGE FOR YOUR SERVICE OR PRODUCT

7. HOW MUCH WILL IT COST TO START MY BUSINESS?

•THERE ARE A NUMBER OF STANDARD COST TO LEGALLY SET UP A BUSINESS.

•THESE COSTS ALONG WITH THE MONEY THAT YOU WOULD NEED TO SPEND TO BUY THE OTHER ITEMS THAT WILL BE NEEDED ARE CONSIDERED YOUR STARTUP COSTS.

BASIC COST• INCORPORATION WITH THE STATE - $125

• EMPLOYER IDENTIFICATION NUMBER (EIN) - $0

• BASIC WEBSITE $500-$1500

• BUSINESS CARDS $50 - $100

• BANK ACCOUNT SETUP - $100

• BUSINESS PLAN DEVELOPMENT $0 - $700

• BUSINESS PHONE $50 PER MONTH

• COMPUTER, PRINTER $400 - $1000

STARTUP COST• TO DETERMINE YOUR STARTUP COSTS, YOU MUST

IDENTIFY ALL THE EXPENSES YOUR BUSINESS WILL INCUR DURING ITS STARTUP PHASE.

• SOME OF THESE EXPENSES WILL BE ONE-TIME COSTS, SUCH AS THE FEE FOR INCORPORATING YOUR BUSINESS AND THE PRICE OF A SIGN FOR YOUR BUILDING.

• SOME EXPENSES WILL BE ONGOING, SUCH AS THE COST OF UTILITIES, INVENTORY, INSURANCE, ETC.

STARTUPBUDGET

• ENTER THE EST. COST• USE OTHER PLANS• RESEARCH• RESEARCH• RESEARCH

Startup BudgetJune 8, 2010

Cash Neededto Start

Monthly CostsSalary of owner-manager $6,000All other salaries and wages 7,000Rent 1,000Advertising 2,000Delivery expense 400Supplies 500Telephone 500Other utilities 500Insurance 600Taxes, including social security 1,000Interest 500Maintenance 300Legal and other professional fees 3,000Miscellaneous 500 Subtotal $23,800

One-Time CostsFixtures and Equipment $10,000Decorating and remodeling 1,000Installation charges 500Starting inventory 5,000Deposits with public utilities 1,000Legal and other professional fees 500Licenses and permits 500Advertising and promotion for opening 500Cash 750Other 200 Subtotal $19,950

Totals $43,750

SIMPLE STRATEGIES TO

GROW YOUR BUSINESS

TIME• HOW ARE YOU USING YOUR TIME?

• ARE YOU SPREADING YOURSELF TO THIN?

• ARE YOU DOING THE THINGS THAT YOU KNOW YOU SHOULD?

•CREATE A TIME MANAGEMENT PLAN AND STICK TO IT FOR TWO WEEKS

THE PLAN•REVIEW OR DEVELOP A BASIC PLAN

•IT DOESN’T HAVE TO BE BIG

•IT DOESN’T HAVE TO BE LONG

•IT JUST HAS TO BE….

• DEVELOP A NEW PLAN

MARKETING• REALLY FIGURE OUT WHO YOUR REAL CUSTOMERS WILL BE

• WHY ARE THEY BUYING FROM WHO THEY ARE BUYING FROM RIGHT NOW?

• HOW DO YOU GET THEM TO BUY FROM YOU

• HAVE YOU EVERY ASKED YOUR EXISTING CUSTOMER TO REFER YOU TO THEIR FRIENDS

• DEVELOP YOUR UNIQUE SELLING POSITION STATEMENT?

TEAM• WHO ARE YOUR GO TO PEOPLE?• DO THEY UNDERSTAND YOUR PLAN? DO YOU HAVE A

PLAN?• HAVE YOU ASKED THEM HOW THEY WANT TO HELP YOU?

•HAVE A TEAM MEETING AND GO OVER YOUR PLAN

MONEY• ARE YOU GROWING WITH NO PLAN?

• ARE YOU LOOKING FOR CUSTOMERS THAT CAN AFFORD TO DO BUSINESS WITH YOU?

• DO YOU HAVE A CASH GAP PLAN?

• DO YOU HAVE A USP AND GUARANTEE.

•DEVELOP A CASH FLOW PLAN

PERSONAL DEVELOPMENT• WHAT ARE YOU DOING TO DEVELOP YOU.• BUSINESS DEVELOPMENT• PERSONAL DEVELOPMENT• LIFE DEVELOPMENT• FAMILY DEVELOPMENT

• GET OUT AND DO SOMETHING?

SUMMARY•YES YOU CAN START AND GROW YOUR

BUSINESS

•RESEARCH, RESEARCH, RESEARCH

•ASK FOR HELP

•TAKE TRAINING WORKSHOPS

•RESEARCH, RESEARCH, RESEARCH

•START TODAY!

LETS TALK ABOUT YOUR BUSINESS

IDEA!

THE BASIC QUESTIONS• WHO

• WHO ARE YOU AND THE NAME OF YOUR BUSINESS

• WHAT

• WHAT TYPE OF BUSINESS AND WHAT ARE YOU SELLING?

• WHEN

• WHEN ARE YOU SELLING IT?

• WHERE

• WHERE ARE YOU GOING TO SELL IT?

•WHY•AND WHY ARE YOU IN BUSINESS?

THANKS FOR STAYING UNTIL

THE END!