Getting Started. Digital Safari Institute GreenBizz Project Getting Started … Being in business is...

Getting StartedGetting Started

Digital Safari InstituteGreenBizz Project

Getting Started Getting Started ……

Being in business is a state of mind!Being in business is a state of mind! Keep your goal(s) in sightKeep your goal(s) in sight Make decisions based on your goals,Make decisions based on your goals,

not on: not on:– Expediency (“this is the easiest way”)Expediency (“this is the easiest way”)– Ignorance (“this is the only way I know”)Ignorance (“this is the only way I know”)– Inertia (“the other ways take too much effort”)Inertia (“the other ways take too much effort”)– Tradition (“it’s always been done this way”) Tradition (“it’s always been done this way”)

Digital Safari Institute

Good Advice Good Advice ……

Know your business in depthKnow your business in depth Develop a solid business planDevelop a solid business plan Manage financial resourcesManage financial resources Understand financial statementsUnderstand financial statements Learn to manage people effectivelyLearn to manage people effectively Stay focused, stay in balance! Stay focused, stay in balance! Be creative!Be creative!

GreenBizz Project


Personal FinancesPersonal Finances

Know your monthly needsKnow your monthly needsEstimate your ability to investEstimate your ability to invest– Cash and creditCash and credit– EquityEquity– Check your credit ratingCheck your credit rating

Define your maximum loss limitDefine your maximum loss limitDon’t underestimate your needsDon’t underestimate your needsDon’t under-capitalize your businessDon’t under-capitalize your business

GreenBizz Project


Required Return on InvestmentRequired Return on Investment

Living wageLiving wageReturn on investmentReturn on investmentReturn on riskReturn on risk

GreenBizz Project


Protect Your Protect Your Intellectual Property (IP)!Intellectual Property (IP)!

PatentsPatents– Device/process patentsDevice/process patents– Design patentsDesign patents

Trademarks / Service marksTrademarks / Service marks– Names, phrases, logos, imagesNames, phrases, logos, images– TM vs. RTM vs. R

CopyrightsCopyrights– Protects creative worksProtects creative works– Gives high level of control over use, etc.Gives high level of control over use, etc.

YOU have to protect your IPYOU have to protect your IP(“Intellectual Property”)(“Intellectual Property”)

GreenBizz Project


Hobby BusinessHobby Business

No commitment / No risk No commitment / No risk Limited potential earningsLimited potential earningsLimited ability to purchase wholesaleLimited ability to purchase wholesaleLimited ability to write off expensesLimited ability to write off expenses– 3-year limit on losses3-year limit on losses

Limited ability to do business:Limited ability to do business:– Sign leases, borrow moneySign leases, borrow money– Compete for contractsCompete for contracts

GreenBizz Project


Real BusinessReal Business

Goal: To create an entity separate Goal: To create an entity separate from your personal from your personal

finances finances Goal: To provide a full-time incomeGoal: To provide a full-time income

… and more! … and more! Goal: To create equity that can be Goal: To create equity that can be

sold in the futuresold in the future

GreenBizz Project


Business: IRS DefinitionBusiness: IRS Definition

You carry on the activity in a business-like manner, You carry on the activity in a business-like manner, The time and effort you put into the activity indicate you intend to make The time and effort you put into the activity indicate you intend to make

it profitable, it profitable, You depend on income from the activity for your livelihood, You depend on income from the activity for your livelihood, Your losses are due to circumstances beyond your control (or are Your losses are due to circumstances beyond your control (or are

normal in the start-up phase of your type of business), normal in the start-up phase of your type of business), You change your methods of operation in an attempt to improve You change your methods of operation in an attempt to improve

profitability, profitability, You, or your advisors, have the knowledge needed to carry on the You, or your advisors, have the knowledge needed to carry on the

activity as a successful business, activity as a successful business, You were successful in making a profit in similar activities in the past, You were successful in making a profit in similar activities in the past, The activity makes a profit in some years and the amount of profit it The activity makes a profit in some years and the amount of profit it

makes, and makes, and You can expect to make a future profit from the appreciation of the You can expect to make a future profit from the appreciation of the

assets used in the activity.assets used in the activity.

GreenBizz Project


Lifestyle BusinessLifestyle Business

Lifestyle and income Lifestyle and income are equally important are equally important

Set earnings/effort goalsSet earnings/effort goalsCan be a very comfortable livingCan be a very comfortable livingFormalized as a legal businessFormalized as a legal businessTax and business benefitsTax and business benefitsGoal: Long-term income streamGoal: Long-term income stream

GreenBizz Project


Growth BusinessGrowth Business

High potential rewardHigh potential rewardHigh risk, high stress! High risk, high stress! Requires focus, skill and dedicationRequires focus, skill and dedicationNeed outside funding to growNeed outside funding to growGoal: Sale, Merger or IPOGoal: Sale, Merger or IPO

GreenBizz Project


Product-Oriented BusinessProduct-Oriented Business

Sell while you sleep!Sell while you sleep!Huge potential marketHuge potential marketMay require upfront investmentMay require upfront investmentMay require keeping an inventoryMay require keeping an inventoryProducts have a lifecycleProducts have a lifecycleMay be left with unsold goodsMay be left with unsold goods

GreenBizz Project


Service-Oriented BusinessService-Oriented Business

No up-front investment in inventoryNo up-front investment in inventory No old stock, no returns, no inventory taxesNo old stock, no returns, no inventory taxes No vendor issuesNo vendor issues Work your own hours (!?)Work your own hours (!?) No work = no pay!No work = no pay! Highly competitiveHighly competitive At the mercy of client loyaltyAt the mercy of client loyalty

GreenBizz Project


Ten Deadly MistakesTen Deadly Mistakes

1.1. Poor managementPoor management

2.2. Lack of experienceLack of experience

3.3. Poor financial controlPoor financial control

4.4. Weak marketingWeak marketing

5.5. No strategic planNo strategic plan

GreenBizz Project


Ten Deadly MistakesTen Deadly Mistakes

6.6. Uncontrolled growthUncontrolled growth

7.7. Poor locationPoor location

8.8. Improper inventory controlImproper inventory control

9.9. Incorrect pricingIncorrect pricing

10.10. Inability to “be an entrepreneur” Inability to “be an entrepreneur”

11.11. Under-capitalized (lack of money!)Under-capitalized (lack of money!)

GreenBizz Project


Getting Started Getting Started ……

Opportunity AssessmentOpportunity Assessment– Market Research: Do your homework!Market Research: Do your homework!– Business Model: Build one that works!Business Model: Build one that works!

Business Plan: Document your planBusiness Plan: Document your planBusiness Formation: Make it legalBusiness Formation: Make it legalStart-up Funding: Commit enoughStart-up Funding: Commit enoughLaunch!Launch!

GreenBizz Project

Go For It!Go For It!

Digital Safari InstituteSmall Business Management

Your First AssignmentsYour First Assignments

Task 1: Elevator SpeechTask 1: Elevator Speech– Company nameCompany name– Your product(s) / service(s)Your product(s) / service(s)– Your target clients Your target clients – Your value propositionYour value proposition– Your goalYour goal

Task 2: Opportunity AssessmentTask 2: Opportunity Assessment– See page 57See page 57

Getting Started. Digital Safari Institute GreenBizz Project Getting Started … Being in business is...

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