Kauffman Foundation (specializes in promoting innovation in America)
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Transcript of Kauffman Foundation (specializes in promoting innovation in America)
Kauffman Foundation(specializes in promoting innovation in America)
Robert Litman, Director of Research for the Kauffman Foundation…..
“Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less,” “That is about 40 million jobs…”
Despite the Odds There are successful start-ups,
turnarounds and expansions taking place
The unemployed and downsized are being creative
Experts agree, the job market will be slow to come back
Who Can Tell Me? The top 3 reasons why businesses fail?
1. ___________________________
2. ___________________________
3. ___________________________
Changing Times The story of a 23 year old business
owner in 1976
No Capital No Plan No Experience
Fast Forward to 2010
Would this business owner be successful in today’s economic environment?
1. What does it take…
To successfully start a business in today’s economy?
2. Is it a viable option?For clients with limited
resources?
3. What can you do? To evaluate if a client is a
good candidate for business ownership?
To provide the client with resources so they can become
a successful entrepreneur?
Today’s Business Market
Faster More competitive Greater expertise needed Engagement – same & different Financing & cash flow
Drivers New businesses up 63% in MN Women own 35% of businesses Lack of traditional employment Companies are not responsive to
“balanced life” demands Ethics/leadership crisis
1. What does it take? Constant learning attitude
Willingness to take the time, analyze, plan and do it right
Ability to fund the business
Constant Learning Attitude
Take classes, learn and gain experience the industry
Due diligence & market research
Seek coaching and advice from experts and mentors
Improving the Odds
A clear, concise, well-thought-out Business Plan!!!!!
3 years of conservative cash flow projections
Realistic timelines for start-up
Examples and Stories Lisa – FAIM Client
Jerome – Displaced worker GATE II client
Erica – Great Streets Client
Funding Plans(some overlap, total will not = 100%)
90% funded from personal savings 18% funded from bank loans 15% from credit cards 15% family & friends 8% home equity loans 1-2% SBA loans
Every Business Requires Funding Criteria for funding has
tightened Standard lending requirements
– owner investment, collateral, and qualifying credit score
2. Is it a feasible, viable and desirable
option? Are market conditions
favorable for this type of business?
Can this business cash flow? Can the business adequately
compensate the owner?
3a. What can you do? Criteria for evaluating if a client
would be a good candidate for business ownership:
12 Key Questions Handout
3b. What can you do?Provide resources……. Business Planning Center SCORE Association MN Small Business Development Centers (MSBDC) Women’s Business Network WomenVenture
Making Your Job EasierServing Clients Better
St. Paul Pioneer Press 4-9-10 “Good-paying jobs don’t come from bailouts. They come from start-ups.”
Thomas FriedmanColumnist, New York Times
The Payoff Business start-ups will create jobs. Our economy needs to create a lot of new
jobs – the sooner the better. Starting a business is complicated, done
correctly, there is more to it than meets the eye – people need help and resources.
Today I’ve given you some information and tools to help you and your clients get through the maze a little quicker and more efficiently.
Let’s Recap Why do we need to help people start
and grow businesses? What can we do to help? What are the top 3 reasons
businesses fail? What are 3 major keys to success? What was the most important thing
you learned in our time together today?
Questions & Discussion Thank you for your participation
today.
After the question and answer segment, I’ll be available to talk with you individually if you like.
Go out and be a mentor to a small business owner!
Contact Information
Carol Jean Peterson Business Consultant WomenVenture [email protected] 651 251-0717