Alameda County SBDC Berkeley Public Library May 15, 2018

Transcription

1 STARTING A BUSINESS Alameda County SBDC Berkeley Public Library May 15, 2018

2 Thank you to Our Sponsor

3 Local SBA Ecosystem

4 Partnership and Hosting We are the premier provider of Business Advisory Services to the small business community. Our mission is to create economic opportunity by empowering entrepreneurs.

5 Our Services Free One-on-One Consulting Free & Low Cost Seminars

6 Seminar Examples Access to Capital Starting a Business Social Media Marketing Worker Owned Businesses Starting a Restaurant Starting a Food Business Finding Your Core Customer Website Development Successful Business Plans Meet the Lenders Government Contracts Law for Entrepreneurs Buying a Business Crowdfunding and Alternatives How to Pitch Your Company Exporting Home Based Businesses

7 ACSBDC Consultants Cynthia Mackey Social Media Deagon Williams Food & Restaurants David Bokash Business Technology Ron Barrett Loans Paula Mattisonsierra Retail & Marketing Mari Lovalvo Human Resources David Mitroff Social Media Lee Lambert Director

8 ACSBDC Consultants Tom Yeh Strategy Paul Bozzo Equity Funding Dorian Webb Operations Mary Passarella Accounting Lisa Cain Marketing Ed Duarte Construction Bob Komoto Export/Import Tom Camerato Financial Modeling

9 How to register for services

10 Our Client Results ALAMEDA COUNTY: 2013 through 2017 (5 Years)

11 Presentation Download

12 Lee Lambert Director, Alameda County SBDC affiliated since 2008 Founder/CEO, Simple Buyout Plans and Hollywood Partners Founder, Cambridge/Samsung Partners (venture fund) Samsung Electronics, Van Kasper & Co., Deloitte, Ernst & Young Harvard Business School, UC Berkeley

13 Agenda Attributes of Successful Entrepreneurs Business Concept Business Planning Marketing plan 101 Preparing to Accessing Capital Legal Issues Permits and Licensing Resources & Support

14 ATTRIBUTES FOR SUCCESS

15 Attributes for Success Passion Focus Discipline Business Plan (which includes a financial plan) Strong Support Team 15

16 Passion 16

17 Focus The most successful businesses solve peoples problems by providing benefits to the client. They then deliver that good/service to the client better than their competition. 17

18 Discipline 18

19 BUSINESS CONCEPT

20 Business Concept: 20 Questions Before Starting a Biz 1. Am I prepared to spend the time, money and resources needed to get my business started? 2. What kind of business do I want? 3. What products/services will my business provide? 4. Why am I starting a business? 5. What is my target market? 6. Who is my competition? 7. What is unique about my business idea and the products/services I will provide?

21 Business Concept: 20 Questions Before Starting a Biz 8. How soon will it take before my products/services are available? 9. How much money do I need to get my business set up? 10. How long do I have to finance the company until I start making a profit? 11. Will I need to get a loan or raise equity funding? 12. How will I price my product compared to my competition? 13. How will I market my business?

22 Business Concept: 20 Questions Before Starting a Biz 14. How will I set up the legal structure of my business? 15. How will I manage my business? 16. Where will I house my business? 17. How many employees will I need to start up? 18. What types of suppliers do I need to contact? 19. What kind of insurance do I need? 20. What do I need to do to ensure I am paying my taxes correctly?

23 BUSINESS PLANNING

24 Business Planning Market Research Marketing/ Sales Management & Operations Finance The Summary 24

25 Business Planning: Market Research This section will be your STEP ONE Is your product/service properly targeted to your potential customer? Does your product/service have a sufficient sized target audience (customer)? Who is your customer? What are their wants/needs? Why will they purchase from you? Who is your competition? Why and how do you win?

26 Business Planning: Market Research Facts used to: Modify the product Define the message Identify the consumer Quantify the market Define price points

27 Business Planning: Market Research Primary Research: SWOT Focus groups Zoomerang & Survey Monkey Telephone surveys Customer interviews The Competition & your Industry

28 Business Planning: Market Research How do you define your competition: Direct Indirect Online vs. Offline New or well entrenched Who can you identify in your area?

29 Business Planning: Marketing mar ket ing ˈmärkədiNG/ noun the action or business of selling your products or services. Building long-term relationships with your target audience. 29

30 Marketing: The Sections of the Marketing Plan Marketing Objectives Marketing Segment Demographic Psychographics The Marketplace The Competition Marketing Strategies 30

31 Marketing: The Sections of the Marketing Plan Marketing Objectives: What do you want to achieve after investing time & money into marketing? 31

32 Marketing: The Sections of the Marketing Plan Marketing Segment: The portion of the population, you plan to sell to. This group has two elements which will help you to determine, if this is the right audience for you: Demographic Psychographics 32

33 Marketing: The Sections of the Marketing Plan The Marketplace The industry and also the geographic where you plan to offer you product and/or services 33

34 Marketing: The Sections of the Marketing Plan The Competition These include other companies who you will be competing for market share (a piece of the pie) 34

35 Marketing: The Sections of the Marketing Plan Marketing Strategies The strategies and promotional tools to be used to convert your potential customer. 35

36 Marketing: The Sections of the Marketing Plan Marketing Strategies This includes an evaluation of the 4 Ps: - Product/Service - Price - Placement - Promotion 36

37 Business Planning: Management man age ment ˈmanijmənt/Submit noun 1. the process of dealing with or controlling people. "The management of elk herds" 37

38 Management & Operations: The parts of the O&M The Management Plan Ownership Why are you uniquely qualified to operate this business Advisor(s)? Operations What are the logistics of running your operations on a day to day basis? Required human resources 38

39 Business Planning: Operations Operations is designing and controlling the process of production and delivery of your company s goods or services. 39

40 Build your team and personnel structure Consider your support structure Decide who you need on your team Examine the use of independent contractors Understand employment laws & consider personnel policies Consider your management style

41 Take Care of Facilities Find and secure a location Rent space Setup home office Office in your vehicle Incubators; virtual office

42 Get Systems in Place Choose a phone system Choose software Choose hardware Get online Develop a technology plan & budget

43 Establish Processes Design procedures for handling administrative tasks General office management, bookkeeping/accounting, order fulfillment Operations manual & templates for forms (invoices, statements, proposals) Setup address book/groups

44 Business Planning: Finance fi nance ˈfīnans,fəˈnans noun 1. the management of large amounts of money, especially by governments or large companies. synonyms: financial affairs, money matters, fiscal matters, economics, money management, commerce, business, investment, he knows about finance" 44

45 Finance: The sections in the financial plan Profit Loss Statement Statement of Cash Flow Balance Sheet 45

46 Business Planning: Finance Profit Loss Statement 1. Income/Revenue/Sales 2. - COGS. 3. = Gross Profit 4. - Operating Expenses. 5. = Operating Profit 6. - Taxes/Owner s Draw. 7. = Net Profit 46

47 Business Planning: Finance Statement of Cashflow 1. Beginning Cash 2. Cash In 3. Cash Out 4. Ending Cash 47

48 Business Planning: Finance Balance Sheet 1. Assets 2. Liabilities 3. Equity A = L+E 48

49 Summary: The sections to be included THIS SECTION IS TYPICALLY CREATED LAST Executive Summary Business Narrative Current status of your industry Introduction to Products/Service 49

50 Business Planning: Summary/Executive Summary Executive Summary Is a synopsis of the entire business plan. Answering all the fundamentals WHO WHAT WHY WHERE WHEN & HOW MUCH 50

51 Business Planning: Summary/Business Narrative Business Narrative What your goals for the business? Goals accomplished to date Short term goals Long term goals 51

52 Business Planning: Summary/Status Status What does your current business landscape look like? Describe your product and/or service 52

53 MARKETING PLAN 101

54 Marketing Plan 101 Why is Marketing important? To create revenue To maintain existing customer base. To find new customers Build the brand 54

55 Marketing Plan 101 Target Market Important Definition: Target Audience /Customer A unique groups of customers for your product and/or service, who want and can afford your product and/or service. 55

56 Marketing Plan 101 Target Market Demographics Psychographics The numbers used to describe your target The lifestyle associated with your target 56

57 Marketing Plan 101 Features v. Benefits 57

58 Marketing Plan 101 Features are Facts Benefits provide Value Benefits answer the question: What s in it for me? Source: Entreprenuer.com Laura Clampitt Douglas 58

59 Marketing Plan 101 Sooooo Are we meeting our Clients needs/wants? 59

60 Marketing Plan 101 MARKETING Product Price Placement Promotion 60

61 Marketing Plan 101 Marketing Strategies Emerging Trends Specific to this Target Group Industry share Marketing Vehicle to be used to convert your potential customer base The Promotional Mix. 61

62 Marketing Plan 101/The promotional mix Written & created by P. Mattisonsierra

63 Marketing : Positioning Advil ($.05) vs. Ibuprofen ($.013) Water : Voss ($.90) vs Nestle Pure Life ($.20) Tide ($11.99) vs Arm & Hammer ($7.99) 63

64 Marketing Plan 101: Sales - Relationship Selling 1. Know your product or service 2. Make the initial contact with your prospect 3. Find out your clients priorities 4. Propose a solution 5. Focus on why they should buy 6. Help your prospect see the bottom line 7. Ask for the sale 8. Deliver 9. Follow Up 64

65 ACCESSING CAPITAL

66 How are You Set Up? Basics: Bank Account Are you separating business and personal? Payroll Service or Manual payments Accounting Program IRS, EDD (UI/ETT/SDI), FTB, City/County License - Are you reserving funds for the payments? Are you free of liens and claims? If not, are you on a payment plan?

67 Build Your Credit Make sure your credit and public records are clean as possible check and correct any errors Helpful sites: nav.com, nerdwallet.com, creditkarma.com, creditsesame.com If you need help to build credit: ccssf.org operationhope.org/oakland

68 Keep Good Records Set up a good record keeping system and maintain it - Use Quickbooks, Xero, even an excel sheet Don t hide your income (if you want a loan) Keep receipts and contracts handy

69 Debt Getting Prepared Check your personal and business credit to find out if you have anything to clear up or explain: Nav.com free business and personal credit reports Creditkarma.com, creditsesame.com, many others personal credit report Your FICO and business scores will help determine your strategy Start-ups - need a personal financial statement (pfs), business plan (10-15 pages is sufficient) and financial projections Seasoned companies usually need personal financial statement, 2-3 years of tax returns and financial projections What collateral do you have? Recent valuation

70 Accessing Capital : Fixing Your Credit Pay your bills on time If you fall behind or are having trouble, contact your creditor! Lower high balances Do not close zero balance accounts Open credit lines only when needed But, don t open too many in a short period of time Fix mistakes Get a copy of your credit report

71 LEGAL ISSUES

72 Legal Issues: Forming a Legal Entity In summary It s about Accountability Taxes, fees, profit distributions A corporation is an artificial person you create by filing certain documents with the California Secretary of State That artificial person can own or lease property, opens bank accounts and enter into contracts just like a natural person

73 Legal Issues: Choice of Entity External funding vs. internal More flexibility vs. better established form Build wealth vs. tax efficient cash flow

74 Legal Issues: Choice of Entity Four basic types of legal entities Sole Proprietor Corporations ( B, C and S types) Limited Liability Companies Limited Partnerships

75 Legal Issues: Choice of Entity Sole Proprietor - Happens by default - You are also the company - No others are owners of the company - Entities can change over time as your business grows - No liability protection

76 Legal Issues: Choice of Entity C Corp Delaware C Corp is preferred by venture investors S Corp or LLC pass through entities generally preferred by small businesses that can keep things simple Sole proprietorship preferred where there is little or no liability, no investors, minimal assets to protect

77 Business Insurance Property buy based on replacement value Named peril All-risks policy Liability damage to property to someone Look at similar businesses/consult a professional Professional Liability/Errors and Omissions Employment Practices Liability Insurance e.g., wrongful termination, sexual harassment, race, gender Workers Compensation Optional Medical/Dental/Vision

78 Employees HR Manual Job Descriptions Payroll Service/HR Service Benefits Minimum wage/sick leave requirements

79 LICENSES/PERMITS

80 Licenses/Permits Requirements vary greatly depending upon the type of business you are launching. Best to walk through your business concept with an advisor who can help you to navigate through the process efficiently. Business License or Tax Certificate generally required in any city/area where you are present (possibly multiple places). Cost varies by city/jurisdiction. Fictitious name File with the County if you do business in a name other than your own, and publish in an approved publication. If you incorporate and do business in the corporate name, not required. If needed, file this before the business license. Filing/publishing service: $40 to file, publishing cost varies. Do this before the Business License.

81 Licenses/Permits Seller s Permit Needed if you sell tangible personal property subject to sales tax. No cost to obtain, but you will need to make quarterly filings going forward. Employees Many requirements if you hire employees. as_an_employer.htm Food/restaurant businesses Many county health department requirements plus possible state and federal requirements if manufacturing products for stores.

82 Licenses/Permits Many other possible requirements depending on the business (sample list not comprehensive): Transportation businesses State PUC Professional services possible state licensing requirements Serving alcohol California Dept. Alcohol Beverage Control Construction activity city zoning/permitting Many, many other possible requirements

83 Licenses/Permits State of California Permit Assistance Site Put in location and type of business and you can see a list of possible licenses and permits required (many won t apply) Highly recommended: Work with a business advisor (SBDC, SCORE, other) and local economic development staff to go through the requirements for your business.

84 Licenses/Permits: Stay in Compliance Business Licenses City and county State: Business Transportation and Housing (916) Fictitious Business Name Federal Self-Employment Tax Local Fees State Taxes Seller s Permit Employer Identification Number Worker s Compensation Insurance State/Federal Withholding

85 RESOURCES & SUPPORT

86 Support Team Business Consultant Accountant/Bookkeeper Lawyer Industry Experts Family/Friends 86

87 Do you have what it takes?

88 City Berkeley Resource

89 City Oakland Resource

90 Alameda County Resource

91 California Resources

92 Online Courses

93

94 Alameda County SBDC

95 Next steps: Make an appointment with the SBDC or East Bay SCORE (depending upon your needs) Find your focus Gain feedback before you commit funds Ensure you have budgeted wisely Or, participate in an entrepreneur training program - Uptima, Centro, ICA, many others

96 Thank You Alameda County Small Business Development Center 2101 Webster St. Offices of Main Street Launch Oakland, CA