STARTING A BUSINESS

San Lorenzo Library

January 19, 2017

Presented by:

FJ Cava, MBA

Thank you to Our Sponsor

Local SBA Ecosystem

Partnership and Hosting

We are the premier provider of Business Advisory Services to the small business

community.

Our mission is to create economic opportunity by

empowering entrepreneurs.

Free & Low Cost

Seminars

Our Services

Free One-on-One

Consulting

Seminar ExamplesAccess to Capital Successful Business Plans

Starting a Business Meet the Lenders

Social Media Government Contracts

Marketing Law for Entrepreneurs

Worker Owned Businesses Buying a Business

Starting a Restaurant Crowdfunding and Alternatives

Starting a Food Business How to Pitch Your Company

Finding Your Core Customer Exporting

Website Development Home Based Businesses

ACSBDC Consultants

Ron Barrett

Loan Specialist

Deb Doyle

Branding

FJ Cava

Generalist

David Bokash

Technology

Paula Mattisonsierra

RetailMari Lovalvo

Human Resources

Lee Lambert

DirectorTara Lynn Gray

Crowdfunding

Deagon Williams

Food & Restaurants

ACSBDC Consultants

David Mitroff

Social Media

Dorian Webb

Operations

Ed Duarte

ConstructionBob Komoto

Export/Import

Maria Mejia

Finance

Carolyn Johnson

OperationsTom Yeh

Strategy

Tom Camerato

Financial Modeling

Mary Passarella

Accounting

How to register for services

www.acsbdc.org

Our Client Results!

Please complete the seminar evaluation form at the

end

Presentation Download

www.acsbdc.org/handouts

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FJ CAVA

MBA in Entrepreneurship

Work in SF Bay Area and Africa (offices in Oakland, CA

& Accra, Ghana)

Owner – Cava Consulting

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Essentials for Success

Passion

Focus

Discipline

Business Plan (which includes a

financial plan)

Strong Support Team

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Passion

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Focus

The most successful businesses solve peoples problems by providing benefits to the client.

They then deliver that good/service to the client better then their competition.

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Discipline

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Business Plan

Marketing/ Sales

Management

Finance

Operations

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Marketing

mar·ket·ing

ˈmärkədiNG/

noun

the action or business of promoting and selling products or services, including market research and advertising.

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Marketing

Features v. Benefits

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Marketing

Target MarketDemographics Psychographics

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Marketing

Tools:

• Interviews

• Surveys

• Focus Group

• SWOT

• Mind Mapping

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Marketing

Advertising

Target

MarketChannel Message Sale

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Sales

sale

sāl

noun

1. the exchange of a commodity for

money; the action of selling something.

"we withdrew it from sale"

synonyms: selling, vending;

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Sales - Relationship Selling

1. Know your product or service

2. Make the initial contact with your prospect

3. Find out your clients’ priorities

4. Propose a solution

5. Focus on why they should buy

6. Help your prospect see the bottom line

7. Ask for the sale

8. Deliver

9. Follow Up

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Management

man·age·ment

ˈmanijmənt/Submit

noun

1.

the process of dealing with or controlling people.

"the management of elk herds"

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Management

www.manager-tools.com

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Operations

Operations is designing and

controlling the process of

production and delivery of your

company’s goods or services.

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Finance

fi·nance

ˈfīnans,fəˈnans

noun

1. the management of large amounts of money,

especially by governments or large companies.

synonyms: financial affairs, money matters, fiscal

matters, economics, money management,

commerce, business, investment, ”he knows about

finance"

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Finance

• Profit Loss Statement

• Statement of Cash Flow

• Balance Sheet

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Finance

Profit Loss Statement

1. Income/Revenue/Sales

2. COGS

3. Gross Profit

4. Operating Expenses

5. Operating Profit

6. Taxes/Owner’s Draw

7. Net Profit

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Finance

Statement of Cashflow

1. Beginning Cash

2. Cash In

3. Cash Out

4. Ending Cash

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Finance

Balance Sheet

1. Assets

2. Liabilities

3. Equity

A = L+E

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Finance

Tools:

• Xero

• Quickbooks

Pay your bills on time

– If you fall behind or are having trouble, contact your

creditor!

Lower high balances

Do not close zero balance accounts

Open credit lines only when needed– But, don’t open too many in a short period of time

Fix mistakes

Get a copy of your credit report

Fixing Your Credit

Free Credit Counseling

Operation Hope (www.operationhope.org)

Consumer Credit Counseling of San Francisco

(www.cccssf.org/)

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Support Team

• Business Consultant

• Accountant/Bookkeeper

• Lawyer

• Industry Experts

• Family/Friends

Forming a Legal Entity

In summary – It’s about Accountability

– Taxes, fees, profit distributions

A legal entity is an “artificial person” you create by filing

certain documents with the California Secretary of State

That artificial person can own or lease property, opens

bank accounts and enter into contracts just like a natural

person

Choice of Entity

External funding vs. internal

More flexibility vs. better established form

Build wealth vs. tax efficient cash flow

Choice of Entity

Four basic types of legal entities

– Sole Proprietor

– Corporations (“B”, “C” and “S” types)

– Limited Liability Companies

– Limited Partnerships

Licenses/Permits

Requirements vary greatly depending upon the type of business you are launching. Best to walk through your business concept with an advisor who can help you to navigate through the process efficiently.

Business License or “Tax Certificate” – generally required in any city/area where you are present (possibly multiple places).

Cost varies by city/jurisdiction.

Fictitious name – File with the County if you do business in a name other than your own, and publish in an “approved” publication. If you incorporate and do business in the corporate name, not required. If needed, file this before the business license. https://www.acgov.org/auditor/clerk/filefbn2.htm

Filing/publishing service: https://www.dbastore.com/hometemplate.cfm

$40 to file, publishing cost varies. Do this before the Business License.

Licenses/Permits

Seller’s Permit – Needed if you sell “tangible personal property” subject to sales tax. No cost to obtain, but you will need to make quarterly filings going forward.

https://www.boe.ca.gov/info/reg.htm

Employees – Many requirements if you hire employees. http://www.edd.ca.gov/payroll_taxes/am_i_required_to_register_as_an_employer.htm

Food/restaurant businesses – Many county health department requirements plus possible state and federal requirements if manufacturing products for stores.

http://www.acgov.org/aceh/

Licenses/Permits

Many other possible requirements depending on the

business (sample list – not comprehensive):

Transportation businesses – State PUC

Professional services – possible state licensing

requirements

Serving alcohol – California Dept. Alcohol Beverage

Control

Construction activity – city zoning/permitting

Many, many other possible requirements

Licenses/Permits

State of California Permit Assistance Site

http://www.calgold.ca.gov/

Put in location and type of business and you can see a list

of possible licenses and permits required (many won’t

apply)

Highly recommended: Work with a business advisor

(SBDC, SCORE, other) and local economic development

staff to go through the requirements for your business.

Stay in Compliance

Business Licenses

– City and county

– State: Business Transportation and Housing (916) 323-5400

Fictitious Business Name

Federal Self-Employment Tax

Local Fees

State Taxes

Seller’s Permit

Employer Identification Number

Worker’s Compensation Insurance

State/Federal Withholding

RESOURCES

Do you have what it takes?https://eweb1.sba.gov/cams/training/business_primer/assessment.htm

Alameda County Resource

http://www.acgov.org/cda/ecd/business-resources/

California Resourceswww.business.ca.gov

Online Courseshttps://www.sba.gov/tools/sba-learning-center

www.sba.gov

Alameda County SBDC

Next steps:

Make an appointment with the SBDC or East Bay

SCORE (depending upon your needs)

– Find your focus

– Gain feedback before you commit funds

– Ensure you have budgeted wisely

Thank You

Alameda County

Small Business Development Center

2101 Webster St., Offices of Main Street Launch

Oakland, CA 94612

510-208-0410

www.acsbdc.org/handouts