RISBDC Rhode Island Small Business Development Center
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Transcript of RISBDC Rhode Island Small Business Development Center
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RISBDCRhode Island Small Business
Development Center
The Business PlanPresented bySixcia Devine
Regional Director401-263-5123 [email protected] www.risbdc.org
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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!
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What is the RI SBDC?
• A Private/Public Partnership
• United States Small Business Administration
• Rhode Island Economic Development Corporation
• Johnson and Wales University
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Regional Office Locations
• Providence MetroTaco Center, Larry Friedman International
Center for EntrepreneurshipSixcia Devine, Regional Director
• Central & Southern RICentral RI Chamber of CommerceArdena Lee-Fleming, Regional Director
• Newport/EastBayNewport County Chamber of CommerceStacey Carter, Regional Director
• Northern Rhode IslandNorthern RI Chamber of CommerceDouglas Jobling, Regional Director
• Pawtucket & Central Falls268 Main Street, PawtucketAdriana Dawson, Regional Director
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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
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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
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• Why are we here?
• Why start a business?
• What are the steps to writing the plan?
• Why do businesses fail?
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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
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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.
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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.
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The Business Plan
Overview
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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.)
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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.
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• Location
• Method of Record-keeping
• Insurance
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• Security
• Products and Services
Procurement and Operations
• Equipment and Inventory
Exit Strategy
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Part Two – Marketing
• Marketing• http://www.bizminer.com/free.asp#1
http://www.entrepreneur.com (go to free forms)
• Trends
• Target Market
• Competition (Everyone has competition)
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• Promotion and Branding
• Location
• Method of Distribution
• E-commerce
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• 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
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Legal Requirements
• Registration– IRS (Form SS-4), Department of Labor & Training, RI Division of
Taxation, Town Clerk, Secretary of State
• Licenses / Permits
• Worker’s Comp / Other Insurance
• Collection Agencies & Legal Action
• Determine Business Status
• Taxes
• Leases
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Financial Management
• Software / Manual– QuickBooks / Quicken; Peachtree; Excel Spreadsheets
• Accountant / Bookkeeper / Payroll Service• Cash / Checks / Credit Cards• Bank Accounts• Insurance• Bank Loan
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6 C’s 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).
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Credit Reports & ResourcesOrder your free credit reports from: www.annualcreditreport.com
Credit Bureaus:
TransUnion Equifax Experian(800) 888-4213 (800) 525-6285 (888) 397-3742PO Box 1000 PO Box 740241 PO Box 9595Chester, PA 19022 Atlanta, GA 30374-0241 Allen, TX 75013www.transunion.com www.equifax.com www.experian.com
Credit ResourcesThe Fair Credit Reporting Actwww.ftc.gov/os/statutes/fcra.htmCredit Centralwww.truecredit.com/centralIdentity Theft Informationwww.consumer.gov/idtheft/index.html
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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
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Free Tutorials and ArticlesStarting/Marketing: http://www.mainesbdc.org/train_login.cfm
The Power of A Good Business Plan: http://www.allbusiness.com/2976170-1.html
Ten Painless Steps to Start and Finish Your Business Planhttp://www.bizplanit.com/free/articles/ten_painless_steps.html
Getting Started: http://www.myownbusiness.org/course.html
From Idea to IPO: http://www.startupventuretoolbox.com/
For more planning information visit:http://www.sba.gov/tools/resourcelibrary/publications/serv_pub_mplan.html
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RI Small Business Development CenterJohnson & Wales University
Headquarters
270 Weybosset Street, Richmond BldgProvidence, RI 02903
(401)-598-2702