Small Business Seminar Hosted By: State Representatives Thomas Murt - - PowerPoint PPT Presentation

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Small Business Seminar Hosted By: State Representatives Thomas Murt - - PowerPoint PPT Presentation

Small Business Seminar Hosted By: State Representatives Thomas Murt - 152 nd Legislative District Todd Stephens - 151 st Legislative District Small Business First Division Loan Programs Small Business First (SBF) First Industries


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Small Business Seminar

Hosted By: State Representatives Thomas Murt - 152nd Legislative District Todd Stephens - 151st Legislative District

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Small Business First Division Loan Programs

  • Small Business First (SBF)
  • First Industries Agriculture SBF
  • First Industries Tourism SBF
  • Community Economic Development (CED)
  • Pollution Prevention Assistance Account (PPAA)
  • Export Finance Program (EFP)
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Small Business First (SBF)

Eligible Businesses:

  • Manufacturing Enterprise
  • Industrial Enterprise
  • Research & Development Enterprise
  • Hospitality Enterprise
  • Defense Conversion Enterprise
  • Recycling Enterprise
  • Construction Enterprise
  • Computer Related Services Enterprise
  • Child Day Care Enterprise
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First Industries Agriculture SBF

Eligible Businesses:

  • Production Agriculture
  • Agribusiness: i.e. food processor
  • Sale of farm commodities at wholesale
  • Sale of farm commodities by urban and retail supermarkets
  • Farmers’ Markets
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First Industries Tourism SBF

Eligible Businesses:

  • PA Destination Sites
  • Hospitality Establishments
  • Businesses that develop and market travel packages for PA
  • Tourism related activities promoting overnight visits to PA
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SBF & First Industries SBF

Uses & Terms:

  • Land & Building Costs

15 years

  • Machinery & Equipment

10 years

  • Working Capital

3 years

Loan Amounts & Rates:

  • 50% of total eligible project costs up to $200,000
  • 50% of total eligible project costs up to $100,000 for WC
  • Rate based on 10 year treasury rate plus 100 basis points. Rates are fixed throughout life
  • f loan.

Other:

Application must be packaged by an Area Loan Organization (ALO) No job creation/retention requirement for agricultural producers Small Business – 100 or fewer full-time employees

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SBF & First Industries SBF

Other Requirements:

  • Must be located in Pennsylvania
  • Creation or Retention of 1 full-time job for every $25,000
  • For-profit businesses only (except for child day care)
  • Personal / corporate guarantee(s)
  • Funds may not be used to refinance
  • Application packaged by an Area Loan Organization (ALO)
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Community Economic Development (CED)

Eligible Businesses:

  • For-profit business with 100 or less full-time employees
  • Mercantile, Commercial, Service, or Retail business
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Community Economic Development (CED)

Uses & Terms:

  • Land & Building Costs

15 years

  • Machinery & Equipment

10 years

  • Working Capital

3 years

Loan Amounts & Rates:

  • $100,000 or 50% of project costs, whichever is less
  • Fixed rate – 2%
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Community Economic Development (CED)

Other Requirements:

  • Must complete Letter of Intent and be invited to apply
  • Retain current number of full-time jobs
  • Require personal / corporate guarantee(s)
  • Funds may not be used to refinance
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Pollution Prevention Assistance Account (PPAA)

Eligible Businesses:

  • For-profit businesses located within the Commonwealth of

Pennsylvania and having 100 or fewer full-time employees worldwide at the time of submission of the application.

  • Program financing for eligible small business that adopts or

installs pollution prevention or energy efficient equipment or processes that reduce or reuse raw materials on-site, reduce the production of waste, or significantly reduces energy consumption and are directly related to business activity

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Pollution Prevention Assistance Account (PPAA)

Examples of Eligible Activities:

  • Energy Efficiency Projects
  • Closed Loop Cooling or Process Water Systems
  • Equipment and Process Changes that Reduce the Production of VOCs
  • Equipment that Reduces Chemical Use in Industrial and Treatment Processes
  • Equipment that Converts Waste Material to a Usable Form
  • Reusable Materials Handling Equipment
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Pollution Prevention Assistance Account (PPAA)

Uses & Terms:

  • Machinery & Equipment / Installation

Up to 10 years

Loan Amounts & Rates:

  • 75% of total eligible project costs up to $100,000
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Pollution Prevention Assistance Account (PPAA)

How to Apply:

  • Business must first apply for eligibility through DEP
  • Application is packaged by the respective ALO and submitted to the

Department by the ALO on behalf of the business

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Pollution Prevention Assistance Account (PPAA)

Other Requirements:

  • Retain current number of full-time jobs at time of submission
  • Require personal / corporate guarantee(s)
  • Funds may not be used to refinance
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Export Finance Program

  • Purpose:

– Provide working capital and accounts receivable lines of credit for Pennsylvania businesses to export its goods or services

  • Criteria:

– Operate as a going concern in PA – Have 250 or less full-time employees – Operating history of at least one year

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Export Finance Program

  • Amounts:
  • Lines of credit up to $350,000
  • Rates:
  • Based on 10 year treasury rate plus 100 basis points. Rates are fixed.
  • Term:
  • 12 months. Line of credit can be renewed. Payments are due within 24 hours of receiving

payment from importer.

  • Fees:
  • Commitment fee of ½%. Renewal fee of ½%.
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Contact Information

Small Business First Division Office of Innovation and Investment Jared Lucas, Director Phone – 717-346-8006 Email – jarlucas@pa.gov Website – www.newpa.com

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PA DEPARTMENT OF GENERAL SERVICES(DGS) BUREAU OF SMALL BUSINESS OPPORTUNITIES (BSBO)

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BSBO Mission

  • BSBO is committed to implementing programs that increase

contracting opportunities for self-certified small, and verified small diverse businesses. The newly created Small Business Procurement Initiative will provide the impetus for promoting the economic growth and success of small businesses. The new Small Diverse Business Program will streamline the process for minority, women, veteran and service disabled veteran owned small businesses to participate as prime contractors, subcontractors, suppliers and professional service providers. BSBO intends to reinforce emphasis on contract compliance to ensure commitments are realized, and allegations of abuse, false certification or discriminatory practices are investigated.

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Legislative and Executive Authority

  • Executive Order 2011-9

Small Business Procurement Initiative

  • Executive Order 2011-10

Veteran-Owned Small Business Procurement Initiative.

  • Act 185 of 2012

Contracting with veteran-owned small businesses.

  • Commonwealth Procurement Code

Defines “small business”

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Small Business Recruitment Pool Business Categories and Skills Available Contracting Opportunities

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Small Business Procurement Initiative (SBPI) On-line Self-Certification www.smallbusiness.pa.gov

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Small Business Procurement Initiative

Purpose:

To increase opportunities for small businesses to compete for award of Commonwealth contracts as prime contractors. This is a race and gender neutral program.

Scope:

Commonwealth agencies shall identify contracts for award to small businesses pursuant to direction provided by DGS, with independent agencies also encouraged to participate. DGS has excluded Emergency and Sole Source procurements from the SBPI.

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SMALL BUSINESS ELIGIBILITY REQUIREMENTS

  • The business may not employ more than 100 full-time equivalent employees.
  • The business must be a for profit, United States business
  • The business must not be dominant in its field of operation
  • The business must be independently owned
  • The business, by type, may not exceed the following three-year average gross sales:

Procurement Goods - $20 million Procurement Services - $20 million Construction - $20 million Building Design Services - $7 million Information Technology Goods and Services - $25 million

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SBPI Program Participation Action Steps

  • Commonwealth Vendor Registration

– PA Supplier Portal www.pasupplierportal.state.pa.us – Help Desk 877-435-7363 (User Name and Password)

  • Self-Certify via DGS, SBPI Website

– www.smallbusiness.pa.gov – Complete On-line Self-Certification Application – 5 Steps – Frequently Asked Questions, Guidelines

  • Successful Completion of SBPI On-Line Self-Certification

Application

– Commonwealth Issued Small Business Certificate – Small Business Database (Pool)

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Search Small Business Solicitations

How do I search for small business reserve solicitations? http://www.emarketplace.state.pa.us/

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Small Procurement Reserve

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Small Diverse Business (SDB) Program

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Small Diverse Business Program

Purpose:

To streamline the process for small diverse businesses to participate as prime contractors, sub-contractors, suppliers and professional service providers on Commonwealth contracts. Small diverse businesses are defined as a small minority, woman, veteran, and service-disabled veteran owned business enterprise.

Scope:

Commonwealth contracts that are issued on larger procurements for goods, services, IT and construction.

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Changes to the DB Program

  • Identified as Small Diverse Businesses

– Former Disadvantaged Business Program – Expanded to include Veteran and Service Disabled Veteran owned businesses

  • Reorganization

– On-Line, Self Certification Process for Small Business – SBPI Self Certification Prerequisite

  • Continue through step 8 for verification as an SDB

– Verification of approved third party certifications as MBE/WBE/VBE/SDVBEs – BSBO Pro-active Compliance

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Small Diverse Business Program

  • Verification as a Small Diverse Business
  • Approved Third Party Certification Entities:

‾ Unified Certification Program (UCP) ‾ United States Small Business Administration (SBA) 8(a) Program ‾ National Minority Supplier Development Council (NMSDC) ‾ Women's Business Enterprise National Council (WBENC) ‾ VetBiz Vendor Information Pages (VIP) at vetbiz.gov

  • Successful Verification Approval

– Commonwealth Issued Small and Small Diverse Business Certificate – Prime contractors locate SDBs in database

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ESSENTIALS

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Gayle Nuppnau, Procurement Liaison Oslwen C. Anderson, Jr. (Oz), Construction Liaison 717-346-3819 or gnuppnau@pa.gov 717-214-6226 or oanderson@pa.gov Cassandra Nevel, Certification/Verification Manager 717-783-3119, RA-smallbusiness@pa.gov

DESHAWN A. LEWIS, DIRECTOR Bureau of Small Business Opportunities Department of General Services 401 North Office Bldg, Room 611, Harrisburg, PA 17120 Phone: 717-783-3119 I Email delewis@pa.gov Fax: 717-787-7052

BSBO Contacts

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Visit us at www.sba.gov 37 Visit us at www.sba.gov 37

SBA:

A Resource for Small Business

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Visit us at www.sba.gov 38 Visit us at www.sba.gov 38

Agenda

  • Resource Partners
  • Why SBA?
  • Loan Programs
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No Cost Consulting & Low-Cost Training Resource Partners:

  • SCORE – Counselors to

America’s Small Business

  • SBDC - Small Business

Development Centers

  • WBC – Women’s Business

Centers

  • Online SBA Learning Center
  • Philadelphia District Office

Workshops

Workshops and Training:

  • Write a Business Plan
  • Financial Projections
  • Developing New Markets
  • Computer Security
  • How to build a web site
  • Human Resources
  • Product Development
  • Patent Search
  • And much more

Visit us at www.sba.gov 39

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Why SBA?

Benefits To Lender:

  • Lender acquires new

customers

  • Lender retains current

customers

  • Reduces their risk

Potential Benefits to Borrower:

  • Longer term means lower

monthly payment

  • No prepayment penalty
  • Non-standard repayment

terms available

  • Overcome obstacle(s)

determined by lender

Visit us at www.sba.gov 40

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Loan Guaranty

  • Lender qualifies applicant
  • Viable Business?
  • Cash Flow?
  • Reasonable expectation of Repayment?

SBA provides loan guaranties to lenders

Visit us at www.sba.gov 41

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Loan Programs

  • Micro Loan Program
  • Term Loans
  • SBA Express Loans

Visit us at www.sba.gov 42

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Microloan Program

  • Small Loans
  • Up to $50,000
  • Maturity
  • Short-term; not to exceed 6 years
  • Interest Rates
  • Negotiable with lender
  • Counseling provided

Visit us at www.sba.gov

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Term Loans

Maximum Loan Amount : $5 Million

  • Working Capital loans: 10 years
  • Machinery and Equipment: 10 years
  • Furniture and fixtures: 10 years
  • Real Estate: 25 years

Visit us at www.sba.gov 44

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Visit us at www.sba.gov 45 Visit us at www.sba.gov 45

SBA Express Program

  • Maximum Loan: $350,000
  • Lines of Credit up to 7 years
  • Fee waived for veteran-owned

businesses until Sept. 30, 2014.

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Thank you

  • Pat Kratz
  • Economic Development/Lender Relations Specialist
  • Contact me at (610) 382-3081
  • Patricia.Kratz@sba.gov
  • www.sba.gov/pa
  • Philadelphia District Office

1150 First Avenue, Suite 1001, King of Prussia, PA 19406

Visit us at www.sba.gov 46

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Com m erce Departm ent:

Vision, Mission, Innovation

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CONTEXT

  • The long term, but slow projected decrease in unemployment rate and slow but

real economic growth requires a reallocation of resources:

  • A shift of focus to individuals more likely to need intensive job placement services
  • Attentiveness to the economic impact of our services (via the ROI analysis) to ensure an

appropriate mix of individuals served

  • All stakeholders emphasize stronger industry relationships and partnerships:
  • Better outreach to the business community
  • Improved responsiveness and alignment with industry hiring practices
  • Organizational innovation will be required:
  • Bring capital, labor and educational resources together, personalizing governemnt to

the needs of companies and workers

  • Increase capacity to serve more customers representing special populations
  • Create efficient work flows to maximize efforts and reduce process time
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VISION STATEMENT

Maximize the effectiveness and optimize the value

  • f our training, employment and capital formation

services for the citizens and businesses of Montgomery County

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For the United States, economist William T. Dickens found that full-employment unemployment rate varied a lot over time but equaled about 5.5 percent of the civilian labor force during the 2000s.

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Unemployment Rate – County Comparison

January 2013 – December 2013

4.0% 5.0% 6.0% 7.0% 8.0% 9.0% 10.0% 11.0% 12.0% Philadelphia County Bucks County Chester County Delaware County Montgomery County

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Montgomery County Unemployment

January 2013 – December 2013

7.3% 6.7% 6.4% 6.5% 6.5% 6.5% 6.3% 6.6% 6.3% 6.3% 6.1% 5.5%

4.0% 6.0% 8.0% 10.0% 12.0% Montgomery County Abington Township Cheltenham Township Horsham Township Lower Merion Township Lower Providence Township Montgomery Township Norristown Borough Pottstown Borough Upper Dublin Township Upper Merion Township Upper Moreland Township

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200 400 600 800 1,000 1,200 1,400 1,600 1,800 Not Available Grade 9 Grade 10 Grade 11 Attained Special Education Certificate Of Attendance/ Completion No High School Diploma But Completed 12 Grades Attained GED Or Equivalency Diploma High School Diploma Attained Other Post-Secondary Or Certification One Year Of College,Full Time Technical Or Vocational School Two Years Of College, Full Time Technical Or Vocational School Three Years Of College, Full Time Technical Or Vocational School Associates Degree Bachelor's Degree Or Equivalent Education Beyond Bachelor's Degree, No Additional Degree Master's Degree Or Higher Doctorate

Highest Education Level

Montgom ery County Custom ers

January 1st, 20 13 – July 25th, 20 13

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Workforce Development Objectives: PY 2013 Targets

Custom ers PY 20 11 PY 20 13 Adult 95 260 Dislocated Worker 407 260 Youth 422 322 EARN 300 300 Total 1224 1142

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Setting Goals and Measuring Success

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Innovation

  • Provide one stop shopping for businesses seeking capital and labor in

Montgomery County

  • Create a new service delivery model to support deeper em ployer

engagem ent

  • Offer new loan and workforce developm ent program s that create

linkages between employment and capital investment

  • Leverage our partnerships with the Montgomery County Community College

(MCCC) and training providers to increase the capacity of service delivery in the County

  • Establish ourselves as a broker of workforce and econom ic developm ent

resources in a seamless system driven by customer choice, complete and reliable information, and competition

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Financing Programs

  • Development Corporation Loan Program
  • Revolving Loan Programs
  • EPA Brownfield Loans
  • Enterprise Zones
  • Federal Loan Programs (HUD, CDBG)
  • Tax Increment Financing (TIF)
  • Tax Free Bonds/ Financing
  • Real Estate Acquisition Assistance
  • Redevelopment Assistance Capital Program (RACP)
  • Pennsylvania Economic Development Authority (PEDA)
  • Small Business First (SBF)

Montgom ery County Businesses

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Com m erce Cabinet County Com m issioners

Workforce Requirem ents Capital Requirem ents

Loan Underwriting and Review Committees for Finance, Policy Recruitm ent

Com pany

Com m erce Departm ent

RDA MCDC IDA WIB

Governance Structure

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Results

  • New recruitment division established to deepen employer engagement
  • Expand On-the-Job (OJT) programs – on track to more than double placements
  • Produce a 17% higher placement rate and an increase in average wage $13,000/ per year

higher than placements after vocational training.

  • We are on track to increase by more than 50% the number of job openings

posted through the PA Career Link system.

  • A total of 4180 openings were posted in PY 2012, we have 3060 after the first six months
  • f PY 2013-2014
  • We have already served four times as many disadvantaged adult unemployed

citizens in this program year as the previous program year.

  • We project to reach 260 this year, up from 41 last year
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Countywide Employment

January 2013 – December 2013

400000 402000 404000 406000 408000 410000 412000 414000 416000 County Residents Employed

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New Hires in Montgomery County

January 2013 – December 2013

5000 10000 15000 20000 25000 January - March April - June July - September October - December New Hires in Montgomery County

NEW HIRES - Source: The Pennsylvania Departm ent of Labor & Industry. New Hire Reporting is a process by which employers report information on all employees hired on or after January 1, 1998 to locate non-custodial parents, establish child support orders, or enforce existing orders. Company and individual data are confidential and cannot be reported on. However, the data can be aggregated to show where and in what industries hiring is taking place as an indication of what sectors of the economy are experiencing growth or decline. Approximately sixty percent of all new hires are captured. New hire counts by industry are an indication of trend only. New hires are linked to job creation, however, an increase in new hires does not directly equate to an increase in the total employment count. The new hires count is simply an indication of hiring activity in an industry. Separations, in the form of layoffs, firings, or quits, are linked to job destruction and account for the other half of the employment change equation. The balance of hires and separations result in the employment change.

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CareerLink Assisted Placements

January 2013 – December 2013

50 100 150 200 250 300 Commerce Placements

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Connections to County Initiatives

  • Corrections/ Adult Probation/ Re-entry
  • Your Way Home
  • Human Services Cabinet
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  • Our task is to make sure every business in Montgomery County has

a viable workforce

  • Every job seeker who can work should have access to the tools

needed to achieve gainful employment and self sufficiency

  • Proper collaboration through divisions and synthesizing information

will drive organizational changes and a common understanding the new roles and responsibilities

  • We can achieve the ROI of 1.02, addressing the unique needs of 1142

individuals

  • We will celebrate success one job at a time

Conclusion: Guiding Principles

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Why Buy or Start a Business?

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Is Owning a Business the Right Decision?

What are your alternatives?

  • Find a job
  • Buy or Start a Business

– Risk – Personal Financial Investment – No guaranteed income

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Benefits of Owning a Business

  • Personal Control of Your Destiny
  • Independence
  • Focus Your Energy and Creativity
  • Personal Satisfaction
  • Create Wealth
  • Develop a Salable Asset
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Private Business “Rules”

  • It must be a business that you will enjoy

– Dealing with clients, staff, suppliers – Hours, location, product, service – Image – Your role – Franchise vs. Non-franchise

  • There is No perfect business
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Governmental Interest

  • Small Business in Pennsylvania

– 989,659 Small Businesses in Pennsylvania – Small Businesses Employed 2.4 Million Workers in 2010 and Accounted for 48.6%

  • f the Private Sector Labor Force

– Small Firms Make up 98.3% of the State’s Employers

Source: State Economic Profiles (U.S. Small Business Administration, Office of Advocacy)

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Shared Common Interest

  • You: Create Wealth for Yourself and

Jobs for Others

  • Government: a Growing Economy and

an Increased Tax Base This is a Win Win!

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SLIDE 71

Steven A. Rosen

  • Past President Pennsylvania Business Brokers

Association

  • Past Chairman FranNet – 100 Franchises
  • 20 years Mergers and Acquisitions experience
  • Part of Sunbelt, the world’s largest business

brokerage firm

  • Contact at 610-941-2177
  • 650 Sentry Parkway, Blue Bell, PA
  • Website http://www.sunbeltnetworkpa.com
  • sarosen@sunbeltnetwork.com
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Question & Answer Session