SEED Corporation Business Start-Up Fundamentals Entrepreneurial Workshop I.
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Transcript of SEED Corporation Business Start-Up Fundamentals Entrepreneurial Workshop I.
SEED Corporation
Business Start-Up Fundamentals
Entrepreneurial Workshop I
SEED Corporation AGENDA
Assessing personal and business needs
The importance of a business plan
Understanding business plan components
The Planning Process
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What banks look for when assessing a loan request
How to complete a loan application
The Reality of Obtaining Financing
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WHAT BANKS LOOK FOR
Cash Flow
Credit
Collateral
Contribution (or capacity)
Character (industry / references)
Condition
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LIFESTYLE ASSESSMENT
1. Do you have children?
2. Do you have savings?
3. Is your spouse employed?
4. What do you do with your free time?
5. Are you accustomed to working long hours?
6. Are you a morning or night person?
SEED Corporation
Business Assistance AreasBusiness Assistance Areas
Marketing
Advertising
Sales
Tax Knowledge
Insurance
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Business Finances
Presentation Skills
Communication Skills
Legal Aspects
Banking Services
Business Assistance AreasBusiness Assistance Areas (con’t.)(con’t.)
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Selecting a Business Name Business Identification Numbers Licenses and Permits Taxes Accounting System
OTHER CONSIDERATIONS
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Structural Forms of Business
Sole Proprietorship Partnership S Corporation C Corporation LLC – Limited Liability Co
USEFUL WEB SITESInternal Revenue Service -
www.irs.gov
MA Department of Revenue -
www.dor.state.ma.us
Inc.com - Where to start and grow your business.
www.inc.com
Entreworld - A World of Resources for Entrepreneurs
www.eventuring.org
Official Website of the State of MA -
www.mass.gov
Official Website of the State of RI -
www.ri.gov
All Business - Champions of Small Business
www.allbusiness.com
MA Assoc. of Community Development Corporations -
www.macdc.org
U.S. Small Business Administration (SBA) -
www.sba.gov
e Podunk -
www.epodunk.com
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WHY WRITE A BUSINESS PLAN?
• A Plan Gives You a Path to Follow• Planning Forces you to Examine All
Aspects of Your Business• Planning is ESSENTIAL to Raising Capital• Your Plan is a Management Tool• Your Plan is a Communications Tool
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BUSINESS PLAN FORMAT
Neatness Counts!
Use Simple Language
Keep Your Points Concise
Make Use of Tables and/or Graphs
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Effective Formatting includes:
Headings
Paragraphs
Bold/Italics/Underline
Bullets
BUSINESS PLAN FORMAT (con’t.)
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BUSINESS PLAN OUTLINE
A. Mission Statement/Statement of Purpose
B. Table of Contents / Cover Page
C. Business Description
D. Marketing Plan
E. Financial Plan
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This is the doorway to your plan. Keep it short, but illustrate the main points.
STATEMENT OF PURPOSE
Main Points: State purpose/structure of your business State purpose/amount of financing sought State any key operational expectations
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BUSINESS DESCRIPTION
a) Type/Industry
b) Status (e.g. start-up, existing)
c) Form (e.g. proprietorship, corporation)
d) Location/Hours of operation
e) Market description
f) Description of competition
g) Management/Personnel
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MARKETING vs. SALES
MARKETING
Generates
interest
and leads.
SALES
Generates orders and accounts receivable and/or cash receipts.
SEED CorporationMARKET PLAN
Describe Your Customers Industry Trends and Characteristics List and Description of Your Competition Description of Your Niche and Competitive Plan Market Segmentation
YOUR CUSTOMERS ARE THE MARKET!
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• Product – goods or services
• Pricing – mark-up and break even analysis
• Promotion – advertising
• Place – channels of distribution
MARKETING MIX
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• How many employees needed?
• What kind of skills required?
• Experienced or trainable?
• Management/People skills?
Management & Personnel
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• Balance Sheet• Projected Income Statement – 2 years• Sources and Uses of Funds• Projected Cash Flow by Month – 1st year
FINANCIAL PLAN
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FINANCIAL PLAN (con’t.)
• Historical Financial Statements
of Business – 3 yrs.
• Personal Financial Statement
• IRS tax returns
(personal & business) – 3 yrs.
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Reminders for Completing Loan Application
The more the person reviewing your request can know about you AND your business, the better.
Neatness and conciseness count
Be honest.
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Loan Application (cont.)
Emphasize your strengths and state your weaknesses. Let the loan officer know that YOU recognize areas for improvement.
If you have questions, call! Don’t submit an incomplete
application.
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Services Offered by SEED
Business Assistance
Business Support Center
Loan Programs: Micro Loan/Mini Micro Loan Revolving Loan Fund (RLF) SBA 7A Packaging SBA 504