Alameda County SBDC Fremont Public Library October 9, 2018

Transcription

1 BUSINESS PLANNING FOR STARTING A BUSINESS Alameda County SBDC Fremont Public Library October 9, 2018

2 Thank you to Our Sponsors

3 Local SBA Ecosystem

4 ACSBDC Mission We are the premier provider of Business Advisory Services to the small business community.

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

6 ACSBDC 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 ACSBDC services

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

11 Presentation Download

12 Paula Groves o Past Director, Alameda County SBDC affiliated since 2008 o Over 25 years working with small businesses o Helped entrepreneurs raise over $100 million o Previous lender with Main Street Launch o Author Write Your Best Business Plan Ever o Harvard Business School, Stanford University

13 Agenda o 20 Questions to answer before starting a business o What does Business Planning to start a business involve? o Marketing o Preparing to Accessing Capital o Legal Issues o Permits and Licensing o Resources & Support

14 20 Questions to Answer Before Starting a Business 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?

15 20 Questions to Answer Before Starting a Business 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?

16 20 Questions to Answer Before Starting a Business 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?

17 It All starts with a Plan

18 BUSINESS PLANNING TO START A BUSINESS

19 What does Business Planning involve? o Customer Research o Marketing/ Sales Strategies o Management & Operations o Finance o The Summary

20 Business Planning: Customer Research Who is your main customer? What are their needs? odemographic (Gender, Income, Location) opsychographics(single, Camping fanatic, baker)

21 Business Planning: Customer Research o Does your product/service properly targeted to your potential customer? o Why will they purchase from you? o How much will they spend? o Is your market big enough?

22 Business Planning: Customer Research Primary Research: oswot o Focus groups ozoomerang & Survey Monkey o Telephone surveys o Customer interviews o The Competition & your Industry

23 Business Planning: Customer Research Facts used to: o Modify the product o Define the message o Identify the consumer o Quantify the market o Define price points

24 Business Planning: Competition The Competition o These include other companies who offer similar products to your customers o You will be competing for market share (a piece of the pie)

25 Business Planning: Competition How do you define your competition? odirect oindirect o Online vs. Offline onew or well entrenched owho can you identify in your area? owhy and how do you win?

26 Business Planning: Marketing Strategies mar ket ing ˈmärkədiNG/ noun The action or business of selling your products or services. Building longterm relationships with your target audience.

27 Business Planning: Marketing Strategies Marketing Strategies The strategies and promotional tools to be used to convert your potential customer.

28 Business Planning: Marketing Strategies Marketing Strategies This includes an evaluation of the 4 Ps: oproduct/service oprice oplacement opromotion

29 Business Planning: Marketing Strategies Marketing Techniques Offline Techniques Online Techniques Flyers Drive traffic to website Brochures Online ads Signage Facebook Launch party Yelp Client meetings Youtube videos Referrals Website Videos Seminars Run a contest Tradeshows and conferences newsletters TV, Radio & print advertisement Blogs Public relations White papers Affiliate marketing

30 Business Planning: Marketing Strategies Offline Techniques One-on-one conversations Coupons Discounts Putting goods on sale Free samples Sales Techniques Online Techniques Online chat discussions Ecoupons Groupons Discounts Putting goods on sale Free samples

31 Business Planning: Marketing Strategies Offline Techniques By Phone In store At company location At customer location Customer Support Techniques Online Techniques Online chat discussions

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

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

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

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

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

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

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

39 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"

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

41 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

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

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

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

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

46 Business Planning: Summary/Business Narrative Business Narrative What your goals for the business? o Goals accomplished to date oshort term goals olong term goals

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

48 ACCESSING CAPITAL

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

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

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

52 Debt Getting Prepared Check your personal and business credit to find out if you have anything to clear up or explain: o o o 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 o Start-ups - need a personal financial statement, business plan (10-15 pages is sufficient) and financial projections o o Seasoned companies usually need personal financial statement, 2-3 years of tax returns and financial projections What collateral do you have? Recent valuation

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

54 LEGAL & TAX ISSUES

55 Legal Issues: Forming a Legal Entity o In summary It s about Accountability Taxes, fees, profit distributions o External funding vs. internal o Protection of personal assets vs business assets o Set-up costs

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

57 Legal Issues: Choice of Entity o 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 i.e. if things go wrong, others can force you to sell your personal and business assets to pay

58 Legal Issues: Choice of Entity C Corp Delaware C Corp is preferred by venture investors, or outside investor that will provide funding to grow your company S Corp or LLC pass through entities generally preferred by small businesses that can keep things simple. Helps protect personal assets and minimize taxation. But larger fees Sole proprietorship preferred where there is little or no liability, no investors, minimal assets to protect. Least expensive way to get started

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

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

61 LICENSES/PERMITS

62 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.

63 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.

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

65 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.

66 Licenses/Permits: Stay in Compliance o o o o o o o o o 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

67 RESOURCES & SUPPORT

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

69 Do you have what it takes?

70 City of Fremont Resource

71 Alameda County Resource

72 California Resources

73 Online Courses

74

75 Alameda County SBDC

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

77 Thank You Alameda County Small Business Development Center