![Page 1: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/1.jpg)
BUSINESS BOOTCAMP
March 3, 2014
![Page 2: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/2.jpg)
ORGANIZING TO MAKE A PROFIT
![Page 3: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/3.jpg)
OBJECTIVES
By the end of the session, participants should be able to:• Appreciate the need for planning
before embarking on a new business.
• Describe the steps involved in starting a business successfully.
![Page 4: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/4.jpg)
Overview
• Introduction • What is a Small Business?• Characteristics of a Successful Small Business• Characteristics of Successful Entrepreneurs• Steps to Starting a Successful Small Business• Summary & Conclusions
![Page 5: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/5.jpg)
INTRODUCTION
• Small Businesses are said to be the driving force of the economy.
• Statistics state that over 80% of small entrepreneurs fail within the first 3 years due to the lack of proper planning, inexpérience, poor location, and lack of cashflow.
![Page 6: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/6.jpg)
Definitions
• Entrepreneur- A person who has a vision and a plan ready to take the risks associated with setting up a business.
• SWOT- Strengths, Weaknesses, Opportunities, and Threats. Tool for analyzing aspects of a business.
![Page 7: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/7.jpg)
What is a Small Business?
• A business which employs 10 or less people.• All businesses typically fall into one of the
following 4 categories:– Retailing– Wholesaling– Manufacturing– Service Providers
![Page 8: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/8.jpg)
Self Assessment
Questions to ask yourself…………– Have I evaluated my own aptitude for small
business ownership and understand the responsibilities?• What’s involved?• What roles will I play if I own a business?• Have I set my goals?
– What do I want out of the business?
• Do I have what it takes?– Estimate the impact on your everyday life.– Do I need to invest more in myself?
![Page 9: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/9.jpg)
Summarize Your Idea– Always be on the lookout for ideas. Clearly define
your business idea.– Identify a niche.– Learn everything you can about the business you
want to start and the marketplace that you will be operating in.
– Conduct a competitive analysis in your market.– Seek help from other small businesses,
professionals, government agencies, etc.
![Page 10: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/10.jpg)
Characteristics of a Successful Small Business
A successful business is one that is based on:– A product or service that customers want.– A product or service you can sell at a price that
customers can afford and which will give you a profit.
– The knowledge or skill that you have or can get.– The resources or money that you can obtain or
able to invest.
![Page 11: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/11.jpg)
Characteristics of Successful Entrepreneurs
• Willingness to Sacrifice• Strong Interpersonal Skills• Strong Leadership Skills• Strong Organizational Skills• Intelligence (Anticipate Problems)• Management Abilities• Business Experience• Optimism
![Page 12: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/12.jpg)
The better you prepare yourself and understand the challenges ahead of you, the
more likely it is that your business will succeed!
![Page 13: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/13.jpg)
STEPS TO STARTING ASUCCESSFUL
SMALL BUSINESS
![Page 14: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/14.jpg)
Prepare a Business Plan
• Contents of the Business Plan include the following:– Executive Summary– The Business Concept– Industry & Competition– Management and Personnel– Financials
![Page 15: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/15.jpg)
Focus on Funding
• What is your financial plan?– What will you need for start-up costs?– What will you need for ongoing working capital?– Equipment and other fixed assets?– Inventory and supplies– Sustained Growth
• Managing Cash and Securing Capital are the Two Biggest Challenges.– Business Credit Card– Bank Account– Business Credit Line
![Page 16: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/16.jpg)
Focus on Funding Cont.
• Managing Cash and Securing Capital are the Two Biggest Challenges.– Business Credit Card– Bank Account– Business Credit Line– Bank Loans, Venture Capital, or SBA Loans– Plug into a local network, including the following:
» U.S. Small Business Administration» Nearest Small Business Development Center» Chamber of Commerce
![Page 17: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/17.jpg)
Take Your Company’s Pulse
• Which numbers should you keep an eye on to monitor your business’s financial health? – Weekly Updates
» Current cash position (how much cash was received, when and from whom?)
» Cash disbursements (e.g. payroll, materials, supplies, inventory, etc.)
» New sales» Accounts Receivable» Accounts Payable (Obtain W-9s on all vendors)» Order Backlog » Number of Employees (need metrics-sales per employee)
![Page 18: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/18.jpg)
Take Your Company’s Pulse
• Which numbers should you keep an eye on to monitor your business’s financial health? – Monthly Updates
» Inventory (with accounting or physical tests of accuracy)» Age your receivables
• Calculate your collection period (30 days, 40 days)• Identify slow-paying customers• Pursue delinquent accounts.• Identify fast-paying accounts and try to increase their
number.» Accounts payable obligations (with aging breakdown)
![Page 19: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/19.jpg)
Take Your Company’s Pulse
• Manage and control your sales and inventory.• Project your cashflow.• Review and prepare monthly financial statements
![Page 20: March 3, 2014. ORGANIZING TO MAKE A PROFIT OBJECTIVES By the end of the session, participants should be able to: Appreciate the need for planning before](https://reader036.vdocuments.net/reader036/viewer/2022062421/56649da55503460f94a90c35/html5/thumbnails/20.jpg)
Record Keeping
See Record Retention Handout:• Permanent
– Contracts– Corporate stock records– Financial Statements– Minutes (Life of Business)– Journal & General Ledger (Life of Business Plus 7)
• Temporary– 7 Years