thank like an entrepreneur

Think Like an Entrepreneur”

ByDr. Deborah Ferber

Think Like an Entrepreneur”

ByDr. Deborah Ferber

Is business ownership right for you?An “entrepreneur” A person who takes calculated risks……Self-assessment questions:Are you a self-starter?How well do you plan and organize?Can you work long hours?How will the business affect your family?

Is business ownership right for you?An “entrepreneur” A person who takes calculated risks……Self-assessment questions:Are you a self-starter?How well do you plan and organize?Can you work long hours?How will the business affect your family?

A startup:Follow your own dreamBuying an existing business:You will have current customers and a known track record of performanceFranchising: Brand recognition reduces marketing costs

A startup:Follow your own dreamBuying an existing business:You will have current customers and a known track record of performanceFranchising: Brand recognition reduces marketing costs

Does the idea suit your personality and interests?Will you use your own name to brand the business?Will it be financially viable?Do you have startup money to invest?What will your monthly expenses be?Is there a current need in the marketplace?Who are you competing with?

Does the idea suit your personality and interests?Will you use your own name to brand the business?Will it be financially viable?Do you have startup money to invest?What will your monthly expenses be?Is there a current need in the marketplace?Who are you competing with?

Different legal structures protect you in different ways and offer varying tax advantages:Sole ProprietorshipsGeneral Partnerships and Joint VenturesCorporations Limited Liability Company (LLCs)

Different legal structures protect you in different ways and offer varying tax advantages:Sole ProprietorshipsGeneral Partnerships and Joint VenturesCorporations Limited Liability Company (LLCs)

A “sole proprietorship” is the establishment of a business by an individual; there is no legal entity that owns ands operates the businessThe owner is personally responsible for all debts ands contractsProfits are disclosed on the owner’s personal income tax return and he or she can deduct business losses

A “sole proprietorship” is the establishment of a business by an individual; there is no legal entity that owns ands operates the businessThe owner is personally responsible for all debts ands contractsProfits are disclosed on the owner’s personal income tax return and he or she can deduct business losses

A “corporation” is created by filing articles of incorporation with the appropriate agency in the StateThe corporation is separate and distinct from the owners of the corporationOwners of an interest in the corporation are called shareholders or stockholdersThey are protected from liability from the corporation’s debts and obligations

A “corporation” is created by filing articles of incorporation with the appropriate agency in the StateThe corporation is separate and distinct from the owners of the corporationOwners of an interest in the corporation are called shareholders or stockholdersThey are protected from liability from the corporation’s debts and obligations

A “limited liability company” (LLC) combines liability protection with the tax status of a general partnershipOwners of an interest in the LLC are called membersMembers have no personal liability for the debts and obligations of the LLCMembers disclose profits and deduct losses on their individual tax returns

A “limited liability company” (LLC) combines liability protection with the tax status of a general partnershipOwners of an interest in the LLC are called membersMembers have no personal liability for the debts and obligations of the LLCMembers disclose profits and deduct losses on their individual tax returns

Business Plan 101

A “business plan” is a roadmap that describes where you’re going and how you’re going to get thereA guide to achieving your goalsA tool to spark investor interestA document that helps employees understand the company mission

Business Plan 101

A “business plan” is a roadmap that describes where you’re going and how you’re going to get thereA guide to achieving your goalsA tool to spark investor interestA document that helps employees understand the company mission

Thinking About Tax Obligations as an Entrepreneur

Federal taxes are paid at intervals with IRS coupons, usually through the Electronic Federal Tax Payment System (EFTPS)States tax structures vary; most require some form of tax on small businessesLocal authorities may tax business property or all businesses operating in the area Research the laws that apply to you; accountants or tax lawyers may be needed

Taxes and More Taxes

Federal income tax withholdingBusinesses must withhold Federal income tax from employees’ wages based on W-4 informationFederal unemployment taxPays unemployment compensation to workers who lose their jobsSocial Security and MedicareRequired under the Federal Insurance Contributions Act (FICA), also called self-employment tax

Taxes and More Taxes

Federal income tax withholdingBusinesses must withhold Federal income tax from employees’ wages based on W-4 informationFederal unemployment taxPays unemployment compensation to workers who lose their jobsSocial Security and MedicareRequired under the Federal Insurance Contributions Act (FICA), also called self-employment tax

“Don’t Forget Insurance”

Business property insuranceLiability and excess liability coverageWorker’s CompensationHealth insuranceLife insuranceAn insurance agent should be included in the business startup process

“Don’t Forget Insurance”

Business property insuranceLiability and excess liability coverageWorker’s CompensationHealth insuranceLife insuranceAn insurance agent should be included in the business startup process

Licenses and PermitsLicenses or permits are required to operate certain types of businessesOne or more licenses may be required from the city, State, county, and/or Federal GovernmentYou may need multiple licenses if you work in more than one jurisdictionFailure to obtain the proper licenses can result in fines or the loss of your businessThe application process varies according to jurisdiction; research the requirements in your area

Licenses and PermitsLicenses or permits are required to operate certain types of businessesOne or more licenses may be required from the city, State, county, and/or Federal GovernmentYou may need multiple licenses if you work in more than one jurisdictionFailure to obtain the proper licenses can result in fines or the loss of your businessThe application process varies according to jurisdiction; research the requirements in your area

Bonding

Bonding” guarantees that a business will perform its assigned tasks. A bond is issued by a bonding company after the business is thoroughly investigatedSurety bonds: The surety company agrees to compensate the customer if the business fails to pay a debt or meet an obligationFidelity bonds: Protect against the actions of employees (such as embezzlement)You must have an agent or broker to g

Bonding

Bonding” guarantees that a business will perform its assigned tasks. A bond is issued by a bonding company after the business is thoroughly investigatedSurety bonds: The surety company agrees to compensate the customer if the business fails to pay a debt or meet an obligationFidelity bonds: Protect against the actions of employees (such as embezzlement)You must have an agent or broker to g

“Copyrights, Trademarks and Patents”

Copyrights, trademarks, and patents all deal with intellectual property and how to protect it“Intellectual property” is a product based on an idea and it has some type of commercial valueIntellectual property includes a wide range of products, such as books, musical compositions, and works of art.

“Copyrights, Trademarks and Patents”

Copyrights, trademarks, and patents all deal with intellectual property and how to protect it“Intellectual property” is a product based on an idea and it has some type of commercial valueIntellectual property includes a wide range of products, such as books, musical compositions, and works of art.

“The Five C’s For Credit”

How banks determine whether to loan you money:Character: Credit history is very important!Capacity: What is your track record of debt repayment?Capital: How long will personal resources support both you and the business?Conditions: Current economic conditionsCollateral: Assets the company pledges as a source of repayment for the loan

“The Five C’s For Credit”

How banks determine whether to loan you money:Character: Credit history is very important!Capacity: What is your track record of debt repayment?Capital: How long will personal resources support both you and the business?Conditions: Current economic conditionsCollateral: Assets the company pledges as a source of repayment for the loan

Secured and Unsecured Lines of Credit If you have trouble getting financing, a “secured line of credit” can be used to purchase equipmentProperty or equipment is used as collateral, which guarantees repaymentAn “unsecured line of credit” does not require collateralThis is given as a personal loan to the company’s officers, based on the individuals’ credit histories

Secured and Unsecured Lines of Credit If you have trouble getting financing, a “secured line of credit” can be used to purchase equipmentProperty or equipment is used as collateral, which guarantees repaymentAn “unsecured line of credit” does not require collateralThis is given as a personal loan to the company’s officers, based on the individuals’ credit histories

Accounting Methods

Sound accounting and bookkeeping practices are essential to any businessMany businesses rely on an accountant to handle financial recordkeepingComputer programs such as Quicken, Peachtree, or Quickbooks can simplify some bookkeeping tasks

Accounting Methods

Sound accounting and bookkeeping practices are essential to any businessMany businesses rely on an accountant to handle financial recordkeepingComputer programs such as Quicken, Peachtree, or Quickbooks can simplify some bookkeeping tasks

Cash and Accrual Methods of Accounting

The “cash basis” method of accounting requires only that you record financial transactions when money is paid or receivedNot adequate for businesses that give credit to

their customers or maintain a large inventory The “accrual basis” method reports income

when earned and expenses when incurred, not when money actually changes hands

Patents

Human Resource Management

The Human Resources function deals with hiring and managing employees

Be specific when interviewing candidatesAvoid inappropriate and illegal questions

during the interview Provide competitive compensation and benefits Maintain detailed employee records Consider an Employee Stock Ownership Plan

(ESOP)

“Gorilla Marketing Plans”

A “marketing plan” serves as a blueprint for you to follow to get your products and services known and recognized. It has:Competitor and issue analysis: challenges and opportunities facing the businessObjectives: What do you want to achieve?Action program: A “to-do” listBudget: Detail expensesStrategy: The Four “P’s”

“Gorilla Marketing Plans”

A “marketing plan” serves as a blueprint for you to follow to get your products and services known and recognized. It has:Competitor and issue analysis: challenges and opportunities facing the businessObjectives: What do you want to achieve?Action program: A “to-do” listBudget: Detail expensesStrategy: The Four “P’s”

The Four P’s of Marketing

Product: Describes features and benefitsPrice: Lists prices and pricing strategyPromotion: Tools or tactics to achieve marketing objectivesPlacement: Sales philosophies and methods

The Four P’s of Marketing

Product: Describes features and benefitsPrice: Lists prices and pricing strategyPromotion: Tools or tactics to achieve marketing objectivesPlacement: Sales philosophies and methods

Guerilla Tips to help you win the war

Public Relations and Publicity1. The oldest guerrilla trick is old fashion PR so keep at it. Pick up the phone and give local journalists what they need most; great news content – its all about spinning your activity to make it a human interest story. The Guerrilla marketing tactics below are your means to this end.Treat Your Premises like A Billboard2. Give a Graffiti artist some free drawing space by letting him use his artistry on your shutters or paint a mural on the side of your Building e.g Homeless Charity Simon Community building.


Public Relations and Publicity1. The oldest guerrilla trick is old fashion PR so keep at it. Pick up the phone and give local journalists what they need most; great news content – its all about spinning your activity to make it a human interest story. The Guerrilla marketing tactics below are your means to this end.Treat Your Premises like A Billboard2. Give a Graffiti artist some free drawing space by letting him use his artistry on your shutters or paint a mural on the side of your Building e.g Homeless Charity Simon Community building.


1. Do a Fake Protest A fake protest is a great way to get attention for your business because it not only makes people aware of you, it also shows them that you have the confidence in your products that other companies don’t. Make sure you and your employees are loud and proud and you will definitely get the attention of anyone within earshot of you.

2. String Some Coupons on Trees Hanging coupons outside of businesses is a newer marketing technique, but it is something that is sure to get the attention of anyone who walks in front of your doors. People respond when they see something out of the ordinary, and they definitely respond when they see a chance to save money.


1. Do a Fake Protest A fake protest is a great way to get attention for your business because it not only makes people aware of you, it also shows them that you have the confidence in your products that other companies don’t. Make sure you and your employees are loud and proud and you will definitely get the attention of anyone within earshot of you.

2. String Some Coupons on Trees Hanging coupons outside of businesses is a newer marketing technique, but it is something that is sure to get the attention of anyone who walks in front of your doors. People respond when they see something out of the ordinary, and they definitely respond when they see a chance to save money.


3. Start a Friendly Fight With the creation of social networks, businesses are realizing that they have to use these mediums in every way that they can to help spread the word about their companies. A friendly fight is when you and another company battle it out through the use of social networking and other mediums by having the public vote on who has the better products. This won’t harm your business; however, it would help people to cast their vote judiciously

4. Graffiti Marketing You may think of graffiti as a nuisance, but the fact is that you can use green graffiti to get the word out about your company in your area. It’s actually considered an environmentally friendly form of marketing because you aren’t using up paper and the graffiti can be washed or cleaned off of the streets and sidewalks


3. Start a Friendly Fight With the creation of social networks, businesses are realizing that they have to use these mediums in every way that they can to help spread the word about their companies. A friendly fight is when you and another company battle it out through the use of social networking and other mediums by having the public vote on who has the better products. This won’t harm your business; however, it would help people to cast their vote judiciously

4. Graffiti Marketing You may think of graffiti as a nuisance, but the fact is that you can use green graffiti to get the word out about your company in your area. It’s actually considered an environmentally friendly form of marketing because you aren’t using up paper and the graffiti can be washed or cleaned off of the streets and sidewalks


Poster art – Think outside the box:


Poster art – Think outside the box:

Entrepreneurial Advice from Billionaires Entrepreneurial Advice from Billionaires