Presentation on theme: "Rhode Island Small Business Development Center The Business Plan"— Presentation transcript:
1 401-263-5123 firstname.lastname@example.org www.risbdc.org Rhode Island Small Business Development CenterThe Business PlanPresented bySixcia DevineRegional Director
2 Session ObjectiveTO PROVIDE YOU, THE ENTREPRENEUR, WITH INFORMATION ABOUT STARTING YOUR OWN BUSINESS AND GIVING RESOURCES THAT WILL ASSIST YOU IN THE DEVELOPMENT OF YOUR BUSINESS!
3 What is the RI SBDC? A Private/Public Partnership United States Small Business AdministrationRhode Island Economic Development CorporationJohnson and Wales University
4 Regional Office Locations Providence MetroTaco Center, Larry Friedman International Center for EntrepreneurshipSixcia Devine, Regional DirectorCentral & Southern RICentral RI Chamber of CommerceArdena Lee-Fleming, Regional DirectorNewport/EastBayNewport County Chamber of CommerceStacey Carter, Regional DirectorNorthern Rhode IslandNorthern RI Chamber of CommerceDouglas Jobling, Regional DirectorPawtucket & Central Falls268 Main Street, PawtucketAdriana Dawson, Regional Director
5 Small Business Facts Over 20 million small businesses in the US RI businesses report 16.9% increase in sales compared to unassisted companiesSmall Business is the backbone of the American EconomyTwo of every three new jobs result from the the small business sector nationwide39% of the US GNP is created by small business
6 RISBDC connects you with the best fit resource for your business The Partnership Structure;an Inclusive ApproachThe 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:CWERICMISBASecretary of States OfficeSCORERI EDCEvery Company CountsBanksChambers of CommerceCommunity Based OrganizationsRISBDC connects you with the best fit resource for your business
7 Why are we here?Why start a business?What are the steps to writing the plan?Why do businesses fail?
8 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
9 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.
10 Characteristics Consider these aspects of your personality. IndependenceSelf-DisciplineCreativityDrive & DesireRisk TakingConfidenceAlso, consider your strengths and weaknesses in these areas.Sales; Marketing; Financial Planning; Accounting; Administration; and Management.
12 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.)
13 Forms of BusinessSole 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.
15 Equipment and Inventory SecurityProducts and ServicesProcurement and OperationsEquipment and InventoryExit Strategy
16 Part Two – Marketing Marketing Trends Target Market Competition (go to free forms)TrendsTarget MarketCompetition(Everyone has competition)
17 Promotion and Branding LocationMethod of DistributionE-commerce
18 Sales and Marketing Strategy Product Design and Packaging Timing of Market Entry(When do you plan to open and why?)PricingSales ForecastPro-forma (month to month)3 years projections
19 Legal Requirements Registration Licenses / Permits IRS (Form SS-4), Department of Labor & Training, RI Division of Taxation, Town Clerk, Secretary of StateLicenses / PermitsWorker’s Comp / Other InsuranceCollection Agencies & Legal ActionDetermine Business StatusTaxesLeases
21 6 C’s of Credit Capacity - Your ability to repay the loan, cash flow. Banks are in the business to make (not lose) money!To maximize the possibility of getting paid back, banks look at:Capacity - Your ability to repay the loan, cash flow.Capital - How much money the owner has personally invested in the business.Collateral - Security guarantees.Conditions - Intended purpose of the loan.Character - Impression you make on the lender or investor.Credit - Your history (paid bills on time, bankruptcies).
22 Credit Reports & Resources Order your free credit reports from:Credit Bureaus:TransUnion Equifax Experian(800) (800) (888)PO Box PO Box PO Box 9595Chester, PA Atlanta, GA Allen, TX 75013Credit ResourcesThe Fair Credit Reporting ActCredit CentralIdentity Theft Information
23 Challenges Lack of staff training Lack of product knowledge Loss in salesCompetitionFailure to anticipate market trendsInsufficient working capital / cash flowPoor budgetingIgnoring financial position of companyExtending too much creditOver-borrowing or using too much creditPoor control over receivablesRI SBDC2323
24 Free Tutorials and Articles Starting/Marketing:The Power of A Good Business Plan:Ten Painless Steps to Start and Finish Your Business PlanGetting Started:From Idea to IPO:For more planning information visit:
25 270 Weybosset Street, Richmond Bldg RI Small Business Development Center Johnson & Wales University Headquarters270 Weybosset Street, Richmond BldgProvidence, RI(401)