Entrepreneurship

1. Entrepreneurship en·tre·pre·neur A person who organizes and manages any enterprise, esp. a business, usually with considerable initiative and risk. Presented by Bill Nicholson January 10, 2007

2. Overview • Introduction • Description of the Business • Customer Profile • Want to be Self-Employed? • The Three Types of Employment • Final Thoughts • Q&A

3. Who is This Guy? Introduction • UC Graduate - BSES • A+, ACE, MCP • Adjunct Instructor, CSTCC • Self-employed for 16 years • Real Jobs: General Motors, Cincinnati Milacron,etc.

4. Description of the Business • Anything that is computer-related • Software Development • Networking • Repair & Upgrades • New Hardware • Training • Consulting • Hand-Holding

5. Description of the Business Multi-modal analysis of non-linear operational constructs and application of digital techniques to enhance, support, streamline, and de-obfuscate subjective processes, with emphasis on remuneration enhancement.

6. Description of the Business “Apply computer technology to make people happy so they will give me money.”

7. Description of the Business • C++ • Design / Consulting • VB • ASP .Net • SQL Server • Access • HTML • Windows 2003 Server / Linux

8. Description of the Business • Ongoing relationships with customers • Support a manageable number of customers • Always be on the lookout for potential new customers • Be available 24-7 • Build relationships

9. Customer Profile • Eclectic • College: www.chatfield.com • Defense Contractor: www.kecoindustries.com • Contractor: www.drackett-harth.com • Logistics: www.standrewsltd.com

11. Process Control

12. A Typical Customer is not High Tech Customer Profile • They are profit-oriented • They expect results • They trust me to suggest and implement new technology

13. How do I Charge? • Hourly Rate • T&M (Time and Materials) • Establish the rate before starting • Plumbers charge for travel time. Should we?

14. How do I Charge? • Project Rate • Provide a quote or a proposal • A proposal is an analog device

15. How do I Charge? • Value-Based Rate • Mr. Customer: What is this software worth to you?

16. How do I Charge? • Speculation • Write the code for free and hopefully reap the benefits down the road. • Working “on spec” is risky. • The cost of your labor is not tax-deductible

17. Want to be Self-Employed? • Work your own hours • Pick your own projects • Keep everything you earn • Make all the decisions • Avoid the office politics

18. Still want to be…? • No company softball team • No Christmas Party • No retirement plan • No benefits / health insurance • No paid vacation • No steady paycheck • No promotions • Collections

19. How to get Started • Consider a part-time ‘real job’. • Contact the placement agencies • Emphasize your willingness to work part-time

20. How to get Started • Don’t be picky • Repair • Programming • Consulting • Networking • Design • Hand-holding

21. Short Term • Time management is critical • Can you deal with not knowing what you’ll be doing next week? • Next month?

22. Customer Relations • Court your customers

23. Customer Relations • Don’t commit to anything • “Probably” • “I think we can do that” • “We’ll try to get that accomplished”

24. Customer Relations • Email • Christmas gifts • No charge for telephone calls

25. Customer Relations • Identify the decision makers • Owner • Secretary • Sales Manager

26. Customer Relations • Recognizable technology can get you in the door. • Microsoft sells (sorry!)

27. Types of Employment • Direct Employee • Paid by the company you work for • Usually an open-ended relationship

28. Types of Employment • Contract Employee • You are paid by a third-party, usually a placement service. • Usually a closed-end or short-term agreement. • You are employed by and at the mercy of the placement service. • Usually a full-time commitment. • Be wary of tax ramifications

29. Types of Employment • Self-Employed • You bill the customer • You collect the fee • You pay the Self Employment Tax • You file a Schedule C • You deduct your expenses

30. Beware of Tax Implications Types of Employment • Someone will pay the extra 7.65%

31. Beware of Tax Implications • You know you’re not self-employed if… • Your employer provides you a desk, a place to work, a computer, and other tools. OR • Your employer determines your working hours OR • You receive a W-2 form at tax time

32. Legal Requirements You are considered self-employed and subject to self-employment tax laws if you: • carry on your own trade or business • have a profit motivation for your business activity • operate your business in a regular manner • are a sole proprietor • are an independent contractor • work full or part-time in the business endeavor • have a net profit of $400.00 or more • have a net profit of $100.00 or more as an employee of a church electing exemption from Social Security Withholdings http://www.villarose.com/html/advantax/slfempl.htm

33. Final Thoughts • No one has ever asked me for my GPA • Don’t let emotions interfere with business • Be prepared to retrain yourself constantly

34. Final Thoughts This is a people business Edsger Dijkstra is often quoted as saying, "Computer science is no more about computers than astronomy is about telescopes."

35. Learn About People