Presentation on theme: "RISBDC Rhode Island Small Business Development Center The Business Plan Presented by Sixcia Devine Regional Director"— Presentation transcript:
RISBDC Rhode Island Small Business Development Center The Business Plan Presented by Sixcia Devine Regional Director
Session Objective TO PROVIDE YOU, THE ENTREPRENEUR, WITH INFORMATION ABOUT STARTING YOUR OWN BUSINESS AND GIVING RESOURCES THAT WILL ASSIST YOU IN THE DEVELOPMENT OF YOUR BUSINESS!
What is the RI SBDC? A Private/Public Partnership United States Small Business Administration Rhode Island Economic Development Corporation Johnson and Wales University
Regional Office Locations Providence Metro Taco Center, Larry Friedman International Center for Entrepreneurship Sixcia Devine, Regional Director Central & Southern RI Central RI Chamber of Commerce Ardena Lee-Fleming, Regional Director Newport/EastBay Newport County Chamber of Commerce Stacey Carter, Regional Director Northern Rhode Island Northern RI Chamber of Commerce Douglas Jobling, Regional Director Pawtucket & Central Falls 268 Main Street, Pawtucket Adriana Dawson, Regional Director
Small Business Facts Small Business is the backbone of the American Economy Two of every three new jobs result from the the small business sector nationwide 39% of the US GNP is created by small business Over 20 million small businesses in the US RI businesses report 16.9% increase in sales compared to unassisted companies
The RI Small Business Development Center at Johnson & Wales University is a public / private partnership providing management and technical assistance to small business owners and aspiring entrepreneurs. Partnerships include: CWE RICMI SBA Secretary of States Office SCORE RI EDC Every Company Counts Banks Chambers of Commerce Community Based Organizations The Partnership Structure; an Inclusive Approach RISBDC connects you with the best fit resource for your business
Why are we here? Why start a business? What are the steps to writing the plan? Why do businesses fail?
Visioning Your Future What does your business look like? What is the time frame? Create a collage. Keep a mental picture in your head. Good Read: The E-Myth Revisited by Michael Gerber
Where To Start Consider advantages, disadvantages, risks and impact. Advantages: Be your own boss; Independence; Personal Satisfaction; Sense of achievement; Contribute to others. Disadvantages: Financial risks; Long hours; Impact on social life/family; Responsibilities and commitments.
Characteristics Consider these aspects of your personality. –Independence –Self-Discipline –Creativity –Drive & Desire –Risk Taking –Confidence Also, consider your strengths and weaknesses in these areas. –Sales; Marketing; Financial Planning; Accounting; Administration; and Management.
The Business Plan Overview
Part I - The Organization Description of Business / Executive Summary (Limit to one page.) –This portion of the Business Plan SHOULD BE WRITTEN LAST, even though it goes first in the plan. Management and Personnel (Who will be working for you?) Advisors / Board of Directors (Lawyer, accountant, insurance agent, consultants, resource partners, etc.)
Forms of Business Sole Proprietorship: easy to organize; owner has complete control and receives all income; owner has unlimited liability; benefits are not business deductions. Partnership: easy to organize, but needs agreement; partners receive all income and have unlimited liability; partners may disagree; life of business may be limited. Corporation: shareholders have limited liability; can raise funds thru sale of stock; Life of business is unlimited; incorporating takes time and money; may result in higher taxes overall. Limited Liability Company (LLC): provides the limited liability features of a corporation and tax efficiencies and operational flexibility of a partnership; formation is more complex and formal than that of a general partnership.
Location Method of Record-keeping Insurance
Security Products and Services Procurement and Operations Equipment and Inventory Exit Strategy
Part Two – Marketing Marketing (go to free forms) Trends Target Market Competition (Everyone has competition )
Promotion and Branding Location Method of Distribution E-commerce
Sales and Marketing Strategy Product Design and Packaging Timing of Market Entry (When do you plan to open and why?) Pricing Sales Forecast –Pro-forma (month to month) –3 years projections
Legal Requirements Registration –IRS (Form SS-4), Department of Labor & Training, RI Division of Taxation, Town Clerk, Secretary of State Licenses / Permits Workers Comp / Other Insurance Collection Agencies & Legal Action Determine Business Status Taxes Leases
Financial Management Software / Manual –QuickBooks / Quicken; Peachtree; Excel Spreadsheets Accountant / Bookkeeper / Payroll Service Cash / Checks / Credit Cards Bank Accounts Insurance Bank Loan
6 Cs of Credit Banks are in the business to make (not lose) money! To maximize the possibility of getting paid back, banks look at: 1.Capacity - Your ability to repay the loan, cash flow. 2.Capital - How much money the owner has personally invested in the business. 3.Collateral - Security guarantees. 4.Conditions - Intended purpose of the loan. 5.Character - Impression you make on the lender or investor. 6.Credit - Your history (paid bills on time, bankruptcies).
Credit Reports & Resources Order your free credit reports from: Credit Bureaus: TransUnionEquifaxExperian (800) (800) (888) PO Box 1000PO Box PO Box 9595 Chester, PA 19022Atlanta, GA Allen, TX Credit Resources The Fair Credit Reporting Act Credit Central Identity Theft Information
RI SBDC 23 Challenges Lack of staff training Lack of product knowledge Loss in sales Competition Failure to anticipate market trends Insufficient working capital / cash flow Poor budgeting Ignoring financial position of company Extending too much credit Over-borrowing or using too much credit Poor control over receivables
Free Tutorials and Articles Starting/Marketing: The Power of A Good Business Plan: Ten Painless Steps to Start and Finish Your Business Plan Getting Started: From Idea to IPO: For more planning information visit:
RI Small Business Development Center Johnson & Wales University Headquarters 270 Weybosset Street, Richmond Bldg Providence, RI (401)