Starting Your Own Business How to Turn Your Dreams Into Reality - - PowerPoint PPT Presentation

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How to Turn Your Dreams Into Reality

• P. Griffith “Griff” Lindell

Starting Your Own Business

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One who organizes, manages, and assumes the risks of a business enterprise.

• Question for me…

– What’s really important to think about for perspective entrepreneurs?

Entrepreneur:

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Failure Rate

• The U.S. Small Business

Administration says that more than half of small businesses fail in their first year.

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A Good Businessperson Has...

• Discipline
• Experience
• Patience
• People skills – make good choices in response
• Aptitude with numbers
• Ability to predict:

– Costs – Impacts on time, the market, the customer

www.lindellassociates.net A B C D E 5 Shapes: Select the one that is different from the others

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Do You Know the “Shape” of:

Legal Structure? Marketplace? Customers? Competition? Distribution? Relationships? Your business?

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Three Foundational Questions

• Why do you want to move from

being employed to Self-employed?

• Are you suited to be an

entrepreneur?

• What should you do next?

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Your Business Idea

• Need in the marketplace?
• Solution?
• You passionate?
• Real value to the customer?

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Important Questions To Be Answered

• Is your idea feasible?
• Do you have the experience and

background to make your idea flourish?

• Are there many companies in this line of

business?

• Is there demand for your product or

service?

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Counting the Costs

• Time costs
• Life-style cost
• Are you willing to invest your

weekends, holidays, evenings, birthdays, anniversaries, etc.?

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Counting the Costs

• Is the market large enough to

support your business idea?

• Have you penciled the numbers?
• Have you done a B/E?

–Fixed costs –Variable costs

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Counting the Costs

$

Output in Numbers

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Counting the Costs

• Is the market large enough to

support you business idea?

• Have you penciled the numbers?
• Have you done a B/E?

– Fixed costs – Variable costs

• Have you written a business plan?

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The Plan Parts

• Executive Summary
• Financial Analysis
• The Company
• Products and Services
• Market Analysis
• Competition
• Business Strategy and Implementation
• Operations
• Organization
• Supporting Documentation

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Planning Process

Plan

Prepare for the future

Record

measure the results

Evaluate

explain variances from the plan

Analyze

compare results to the plan

Results

something happens

Act

implement the plan

1 6 5 4 3 2

Success

failure

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Planning Process

Plan

Prepare for the future

Record

measure the results

Evaluate

explain variances from the plan

Analyze

compare results to the plan

Results

something happens

Act

implement the plan

1 6 5 4 3 2

Success

failure

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IN IN PRO RODU DUCING CING A RESU A RESULT ! T ! YO YOU AL U ALWAYS YS SUC SUCCE CEED ED

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Planning Process

Plan

Prepare for the future

Record

measure the results

Evaluate

explain variances from the plan

Analyze

compare results to the plan

Results

something happens

Act

implement the plan

1 6 5 4 3 2

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Planning Process

Plan

Prepare for the future

Evaluate Analyze Record Results Act

explain variances from the plan measure the results compare results to the plan something happens implement the plan

1 6 5 4 3 2

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Planning Process

Plan

Prepare for the future

Evaluate Analyze Record Results Act

explain variances from the plan measure the results compare results to the plan something happens implement the plan

1 6 5 4 3 2

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Planning Process

Plan

Prepare for the future

Evaluate Analyze Record Results Act

explain variances from the plan measure the results compare results to the plan something happens implement the plan

1 6 5 4 3 2

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The 10 Questions

1. Have you counted the costs?

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Not yet Got it done!

I have penciled it out. 1 2 3 4 5 6 7 8 9 10 I have money set aside. 1 2 3 4 5 6 7 8 9 10 I have access to money. 1 2 3 4 5 6 7 8 9 10 I have set-up a cash flow forecast. 1 2 3 4 5 6 7 8 9 10 I know my start-up costs. 1 2 3 4 5 6 7 8 9 10 I have calculated my break-even point. 1 2 3 4 5 6 7 8 9 10

36 – 40 = You are on your way! 32 – 35 = You are almost there – just a little more work to do. 28 – 32 = You have made a start: know what’s next and attack it. 27 or less = Are you sure you want to be in business?

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FinishedActivity Start Date Completed Date

□

I have penciled it out. _____________ _______________ What I have learned: ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________

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The 10 Questions

1. Have you counted the costs? 2. Are you ready, willing and able for a change in your lifestyle? 3. Is your support team on board?

• Risk/reward conversation
• Family impact addresses

4. Do you enjoy the business of business?

• Language of business?

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Cash Flow

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Cash Flow defined…

• 1. Cash Flow is the flow of cash INTO and

OUT OF a business over a selected time period

• 2. Cash Flow is:

 Positive when cash receipts exceed cash payments – YOU CAN PAY YOUR BILLS!  Negative when cash payments exceed cash receipts – YOU HAVE TO BORROW TO PAY BILL

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CASH FLOW ($2,861) ($549) $3,769 $5,089 ($573) ($7,727) ($8,508) ($8,614) ($17,920) ($16,669) ($20,000) ($15,000) ($10,000) ($5,000) $0 $5,000 $10,000 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mar Apr May Jun Jul Aug Sep Oct Nov Dec

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CASH FLOW ($2,861) ($549) $3,769 $5,089 $14,427 $7,273 $6,492 $6,386 ($2,920) ($1,669) ($4,000) ($2,000) $0 $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 Mar Apr May Jun Jul Aug Sep Oct Nov Dec Mar Apr May Jun Jul Aug Sep Oct Nov Dec

$15,000 investment from Founders

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Local, State & Federal Business Regulations

• Fictitious Name Act (Filing In Oregon)

 www.filinginoregon.com

• Licenses
• Insurance
• IRS - Employer Identification Number

(866) 816-2065

• Federal Self-Employment Tax – if appropriate
• Business Tax Information

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The 10 Questions

1. Have you counted the costs? 2. Are you ready, willing and able for a change in your lifestyle? 3. Is your support team on board? 4. Do you enjoy the business

• f

business? 5. Are you comfortable making tough decisions on the fly?

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The 10 Questions

6. What's your track record of making stuff happen? 7. How well do you communicate?

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Communicating About Your Business

• Who are you targeting?
• What are they looking for?
• What are you offering?
• Why it is so very special?
• How it is unlike others?

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Sample Positioning Statement FOR: Portland-area businesses NEEDING: who are looking for a quality, sophisticated Holiday entertainment experience WHAT: the Fireside Carolers of Vivace Voices,

• ffer professionally trained voices

WHY US: singing {in eight part harmony} both traditional and unique jazz versions of Holiday music WHY NOT THEM: unlike the 19th century-type Carolers, we offer a truly American entertainment experience and, in the spirit of the Season, we give back a portion of our revenue to the community.

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…The Fireside Carolers In the Spirit of Giving Let your holidays sparkle with the sophisticated, jazzy American sound

• f…

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The 10 Questions

6. What's your track record of making stuff happen? 7. How well do you communicate? 8. Is this new business something about which you are passionate? 9. Are you a person that gives others energy – a self-starter?

• 10. Do you have a “partner”?

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Ready for Business?

‘There are no shortcuts to any place worth going.” Beverly Sills

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