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Www.scoreknox.org (865) 692-0716. www.scoreknox.org (865) 692-0716 So You Want To Be an Entrepreneur Are You REALLY Ready?

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Presentation on theme: "Www.scoreknox.org (865) 692-0716. www.scoreknox.org (865) 692-0716 So You Want To Be an Entrepreneur Are You REALLY Ready?"— Presentation transcript:

1 (865)

2 (865) So You Want To Be an Entrepreneur Are You REALLY Ready?

3 (865) So you want to be an Entrepreneur Developed by To provide you a brief overview to help you determine if you want to start your own business

4 (865) ABOUT THIS WORKSHOP Today, we will challenge your thinking about being an entrepreneur. youneed BEFORE There are critical questions you need to answer, BEFORE you go into business. Today, our focus is on four key areas, not on the technical aspects of business. SCORE has lots of additional workshops and handouts on those topics that you may wish to investigate.

5 (865) Four Critical Questions Do you have an entrepreneurial personality? Do you have adequate resources to start a business? Do you have a viable business idea? Is your partner/family committed?

6 (865) self-assessment Complete a thorough self-assessment financial resources Identify your financial resources business objectives Define your business objectives the market Research the market for your idea Business Plan Develop a Business Plan Five Steps before opening your doors... So you want to be an Entrepreneur

7 (865) Questions to Ask Yourself What initial steps have you taken Will you work full time or part time Who are your partners What are your assets What kind of help do you need Assessing yourself and your idea

8 (865) Questions to Ask Yourself What is your experience in business What is your market? Who is your customer Who is your competition Can you give a 10 second elevator talk Assessing yourself and your idea

9 (865) Self-Assessment is Difficult! SCORE 10 for Absolutely and a 7 for Probably Are you a self-starter? ___ Do you enjoy competition? ___ Do you have will power and self-discipline? ___ Do you enjoy making decisions?___ Are you a good planner? ___ Do you manage your finances well?___ Are you willing to work hour days?___ Are you physically and emotionally strong? ___ Is your family supportive of your proposal? ___ Do you easily interact with other people?___ The Entrepreneurial Personality

10 (865) DID YOU SCORE A 90 OR MORE? If so, your decision to Begin Business is off to is off to THE RIGHT START! But, there are more questions! So you want to be an Entrepreneur

11 (865) Do the Princeton Check List Handout See Feb 2009 WSJ article So, You Want to Be an Entrepreneur SBA Readiness Assessment Tool https://eweb1.sba.gov/cams/training/business_primer/assessment.htm Here Homework! More to do and read...

12 (865) Assuming you are comfortable with your answers in the self-assessment... The next task IDENTIFY YOUR FINANCIAL RESOURCES What about Money?

13 (865) CASH TRULY IS KING! 70% of 1 st year business failures caused by poor cash flow. Majority of small businesses are under capitalized Lack of cash leads to disaster

14 (865) $ Cash needs before launch $ So you want to be an Entrepreneur

15 (865) Launch Fund Have a Cash Cushion at Start Up –Six months family living expenses –Six months business expenses This is minimum***12 months better So you want to be an Entrepreneur

16 (865) Fill in the Blanks How much cash and savings do you have? $ What is the value of your real estate? $ Do you have life insurance? If so, what is its cash value? $ What is the value of your vehicles? $ How much money do you owe: On accounts? $ On credit cards? $ On real estate loans? $ On taxes? $ To family members? $ Do you have any other liabilities? Amount? $ So you want to be an Entrepreneur

17 (865) What are Start Up Costs? Equipment, supplies and inventory Rent, utilities, licenses, deposits Insurance premiums and security costs Promotional costs and office supplies Professional fees (accountants & lawyers) Payroll & payroll taxes for the start-up period Your own compensation (living expenses) So you want to be an Entrepreneur

18 (865) So you want to be an Entrepreneur

19 (865) Define your Business Objectives (a new concept, an invention, a better product or more efficient service, that satisfies customer needs or wants) organizedrealistic business venture an organized and realistic approach to a new business venture. Answer the following questions: Create a Business Plan

20 (865) What need or want will your business satisfy? What services or products will you sell? Are you considering a franchising operation? What will make your product or service unique in the marketplace? Is your proposed product or service capable of being priced at least equal to or above the competition? How will you sell your product or service? Define Your Business

21 (865) What will be the legal structure.. Proprietorship, Partnership, Corporation or LLC? How will your business records be maintained? What insurance coverage will you need? How will you hire, train and motivate employees? How will you compensate yourself? What will you name your business and where will it be located? What are the applicable Federal, state and local laws and licensing requirements? Structure, Staff, and Resources

22 (865) Business Forms Sole Proprietorship Partnership Limited Liability Company (LLC) C Corporation (Conventional) S Corporation (Sub-chapter S)

23 (865) LLC or Sole Proprietor are common Simple & easy to start Low start-up expenses Owner is sole manager Profits are not shared Income taxed on owners individual return Unlimited personal risk Not difficult or expensive to form Limited liability protection for owners Fewer rules and restrictions than corporations Profits taxed only once at owners level LLC Sole Proprietor

24 (865) Evaluate the MARKET CRITICAL A CRITICAL step in finalizing your decision to begin business is... EVALUATING THE MARKET research Perform sufficient research to be able to answer the following questions: Is there really a demand for your idea ?

25 (865) ? Can you make a living ? Will your business be VIABLE ?? –Big enough idea –Profitable –Survey SurveyMonkey.comSurveyMonkey.com Market Research Leads to Answers Evaluating the Market

26 (865) Research Questions Who are your customers, how many are there and where are they located? Who are your competitors and what are their strengths and weaknesses? How will you advertise and/or promote your business? Will you source your product? How will you deliver your product or service? Can you price your product/service to make an adequate profit?

27 (865) Research Help Knox County Public Library Catherine Moirai Business Reference Manager Greater SCORE Web Site Article Before You Start a Business

28 (865) Library References Small Business Sourcebook profiles providing Start-up information Associations Licensinginformation Reference works Trade periodicals Reference USA Find your competitors Find your prospective customers Other Business Books How to Start a Business. How to Make a Business Plan Misc Information Demographic Data, Business Name Research More Help

29 (865) Develop a BUSINESS PLAN Contrary to popular belief, a Business Plan is not only a primary tool with which to seek financing... YOUR PLAN It is YOUR PLAN for the SUCCESSFUL BEGINNING SUCCESSFUL BEGINNING and CONTINUED MANAGING OF YOUR BUSINESS!

30 (865) Business Plan Essential Elements 1. Company Description 2. Market Analysis 3. Price Analysis 4. Marketing Plan 5. Sourcing & distribution 6. Business Team 7. Funding & Financials

31 (865) ADVISORS CPA Lawyer (business law) Insurance provider Mentors So you want to be an Entrepreneur

32 (865) You are in this together Lack of family commitment is usually fatal Your family is a source of support, advice, and ideas Family Commitment and Support A Final Essential Element

33 (865) With most of the ESSENTIALS self-assessment NOComplete a thorough self-assessment financial resources YESIdentify your financial resources business objectives YESDefine your business objectives the market YESResearch the market for your idea Business Plan YESDevelop a Business Plan SCORE can help you The Next Step is Yours

34 (865) SCOREs Online Resources The Next Step is Yours Specific workshops on starting, structuring, marketing, growing a business, and managing cash flow, finances, and partners, with featured webinars you can take anytime. A special startup seminar with Steve Forbes! A 2-minute readiness assessment workshop from e-myth Access to SCORE counselors via social media

35 (865) Who is SCORE History –SCORE Is Part Of The Small Business Administration –Established By Act Of Congress in 1964 –Over 389 Chapters Throughout The United States –Over 10,500 Volunteers Nationwide SCORE Knoxville Chapter –Provides Service To 18 Counties –3,000 Counseling Sessions Per Year (#25 out of 389) –www.scoreknox.org Has 16,000 Unique Visitors Per Monthwww.scoreknox.org Purpose –To Help Entrepreneurs Start A Business –To Help Small Business Improve Operations Counselors to Americas Small Business

36 (865) Free Services for Americas Small Business Greater Knoxville SCORE provides: Personal counseling for start ups Educational Workshops Personal counseling for existing businesses Mentoring for owners and managers Profit improvement program planning Company guidance for strategic planning

37 (865) Available from SCORE A GUIDE FOR STARTING A BUSINESS IN TENNESSEE A detailed discussion of whats needed to get started Entrepreneurship Pitfalls Startup Business Plan example 50+ pages, written by Knoxville SCORE, includes additional materials and financial spreadsheet examples Order on web at

38 (865) KNOW YOURSELF: DO YOU HAVE WHAT IT TAKES TO BECOME AN ENTREPRENEUR? …...Page 4 Entrepreneurship – An Alternate Career Choice …………..………………………………….…….....Page 4 Let the Countdown Begin: A Six-Month Plan for Transitioning from Employee to Entrepreneur….Page 6 Entrepreneur Self Assessment Tests ………………………………………..………………………….Page 7 Princeton Entrepreneurial Evaluation Checklist ……………………………..…………………………Page 8 So, You Want To Be An Entrepreneur ……………………………………..……………….…………..Page SEEK PROFESSIONAL HELP BEFORE YOU SCREW UP YOUR NEW BUSINESS! …………..…Page 17 Business Owners Should Take A Lesson From The Pros …………..……….……..………………..Page 17 What Are You Worth? ………………………………………………………………………………….…Page 20 The Seven Pitfalls of Business Failure and How To Avoid Them..………………..……………..….Page 21 Assessing Your Business Idea ………………………………………..…………………………………Page 24 The 10 Second Elevator Pitch ……………………………………………………………….……..……Page IVE GOT WHAT IT TAKES? NOW ITS TIME TO DO A BUSINESS PLAN …………………..…….Page 27 Business Plan for A Startup Business ………………………..………….……………..………………Page 27 What Pitfalls Should I Avoid For A Business Plan? …………………………………………….……..Page DO I NEED TO SEE A LAWYER TO FORM MY COMPANY?..………………………………….……..Page 45 Selecting The Legal Structure For Your Business …………………………...………….……………..Page 45 Tab le 1 – Comparison of Legal Structures for a Business ……………………………………………Page HELPFUL INFORMATION TOIMPROVE YOUR CHANCES FOR A SUCCESSFUL LAUNCH…..… Page 50 A GUIDE FOR STARTING A BUSINESS IN TENNESSEE TABLE OF CONTENTS

39 (865) Free Services for Americas Small Business For FREE mentoring Register at or

40 (865) INFORMATION SOURCES for this presentation Statistics Data –The Kaufmann Foundation of Entrepreneurship Funding Data –SBA Website Data –Gartner Inc. So you want to be an Entrepreneur


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