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BUSINESS BOOTCAMP

BUSINESS BOOTCAMP. 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 embarking on a new business. Describe the steps involved in starting a business successfully. Overview.

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BUSINESS BOOTCAMP

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  1. BUSINESS BOOTCAMP March 3, 2014

  2. ORGANIZING TO MAKE A PROFIT

  3. 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.

  4. 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

  5. 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.

  6. Definitions • Entrepreneur- A personwho has a vision and a plan ready to take the risksassociatedwith setting up a business. • SWOT- Strengths, Weaknesses, Opportunities, and Threats. Tool for analyzing aspects of a business.

  7. What is a Small Business? • A business whichemploys 10 or less people. • All businesses typicallyfallinto one of the following 4 categories: • Retailing • Wholesaling • Manufacturing • Service Providers

  8. Self Assessment Questions to askyourself………… • Have I evaluatedmyown aptitude for small business ownership and understand the responsibilities? • What’sinvolved? • What roleswill I play if I own a business? • Have I set my goals? • What do I want out of the business? • Do I have whatittakes? • Estimate the impact on youreveryday life. • Do I need to invest more in myself?

  9. SummarizeYourIdea • Always be on the lookout for ideas. Clearlydefineyour business idea. • Identify a niche. • Learneverythingyoucan about the business youwant to start and the marketplacethatyouwill be operating in. • Conduct a competitiveanalysis in yourmarket. • Seek help fromothersmall businesses, professionals, governmentagencies, etc.

  10. Characteristics of a Successful Small Business A successful business is one that is based on: • A product or service thatcustomerswant. • A product or service youcansellat a pricethatcustomerscanafford and whichwillgiveyou a profit. • The knowledge or skillthatyou have or canget. • The resources or money thatyoucanobtain or able to invest.

  11. Characteristics of Successful Entrepreneurs • Willingness to Sacrifice • StrongInterpersonalSkills • Strong Leadership Skills • StrongOrganizationalSkills • Intelligence (AnticipateProblems) • Management Abilities • Business Experience • Optimism

  12. The better you prepare yourself and understand the challenges ahead of you, the more likely it is that your business will succeed!

  13. STEPS TO STARTING ASUCCESSFULSMALL BUSINESS

  14. Prepare a Business Plan • Contents of the Business Plan include the following: • ExecutiveSummary • The Business Concept • Industry & Competition • Management and Personnel • Financials

  15. Focus on Funding • What is yourfinancial plan? • What willyouneed for start-up costs? • What willyouneed for ongoingworking capital? • Equipment and otherfixedassets? • Inventoryand supplies • SustainedGrowth • Managing Cash and Securing Capital are the TwoBiggest Challenges. • Business CreditCard • Bank Account • Business Credit Line

  16. Focus on FundingCont. • Managing Cash and Securing Capital are the TwoBiggest Challenges. • Business CreditCard • 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

  17. TakeYourCompany’s Pulse • Whichnumbersshouldyoukeep an eye on to monitor yourbusiness’sfinancialhealth? • Weekly Updates • Current cash position (how much cash wasreceived, when and fromwhom?) • Cash disbursements (e.g. payroll, materials, supplies, inventory, etc.) • New sales • AccountsReceivable • Accounts Payable (Obtain W-9s on all vendors) • OrderBacklog • Number of Employees (needmetrics-sales per employee)

  18. TakeYourCompany’s Pulse • Whichnumbersshouldyoukeep an eye on to monitor yourbusiness’sfinancialhealth? • Monthly Updates • Inventory (withaccounting or physical tests of accuracy) • Age yourreceivables • Calculateyour collection period (30 days, 40 days) • Identify slow-payingcustomers • Pursuedelinquentaccounts. • Identifyfast-payingaccounts and try to increasetheirnumber. • Accounts payable obligations (withaging breakdown)

  19. TakeYourCompany’s Pulse • Manage and control your sales and inventory. • Project your cashflow. • Review and preparemonthlyfinancialstatements

  20. Record Keeping See Record RetentionHandout: • Permanent • Contracts • Corporate stock records • Financial Statements • Minutes (Life of Business) • Journal & General Ledger (Life of Business Plus 7) • Temporary • 7 Years

  21. NEVER GIVE UP! Thank you! 936-205-5811 carla@carlammorgancpa.com

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