Business start up 1

Business Start-up

Jose Cintron, MBA-CPCBusiness/Accounting Professor

josecintronmba@gmail.com(954) 374-8298

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Why Start a Business?

To Capitalize on an Invention or IdeaTo Pursue a PassionTo Be Their Own BossTo Get Rich $$$

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Are you ready for this?

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Why people don’t try?

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Are you ready to take the risk?

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You build it and the will come, Right?...Wrong!

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What are the chances???

Statistics show that 8 out of 10 new businesses fail within the first three years.

?????????????????????? 80% of new businesses fail within their first three years.

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How you get the Financial Freedom?

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Why Business Fail ?

1. Wrong reasons2. Poor Management3. Insufficient Capital4. Location, Location, Location 5. Lack of Planning6. No Clue/No help/Guidance7. Wrong/No marketing

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Why Business Fail ? Sales

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Customer Service/Satisfaction

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What is your Target?

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The egg or the chicken?

Business is not the dream but the vehicle to get where you want to go.

“I Have A Dream” NO- “I Have A Plan”

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Funding Sources $$$

Savings-401kRefinanceFriends and FamilyFinancial Institutions Angel Investors

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What vehicle do I need to reach my destiny?

Going to Orlando, FL Going to Las Vegas, NV

Around the neighborhood

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Where are you going?

If you don’t know where you going any road will take you there!

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What is the Trend ?

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We will not go back to doing business the way we used to in the past!

Businesses

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We will not go back to doing business the way we used to in the past!

Government

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We will not go back to doing business the way we used to in the past!

City

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Where is the Money ?

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What is your product?

Farm $1.00 Supermarket $3.00

Restaurant $6.00

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What is your service?

ConsultingCoaching Classes Training

Selling Installingwarranty Servicing

You do it for multiples

business owners

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What kind of business?

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Lets Analyze….

Products/merchandise Services Market and NicheContribution Margin

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Did you answered, Yes?

Do you have a great product?Do you have an awesome Price/value?Do you have clientele or email list?

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Products-Volume

1 X $10,000 10,000 X $1

What is your “Business Model”

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Services

High End ClienteleLow End Clientele

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Target Market and Niche

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How to increase sales

Incrementar Clientes

Incrementar el monto de compra

Incrementar repetición o número de veces.

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BEP and Contribution Margin

Fixed Cost- $10,000(Rent, insurance, manager, interest…)Variable cost- $800/ea (Hourly, commission, inventory…)Sales are $1,000 per unit

$1,000-$800=$200 Contribution Margin

$10,000/$200=50 units to BEP Fixed Cost/Contribution Margin.

$10,000+5.000=$15,000/200=75 units to make a $5,000 profits.

$50,000X10%=5,000/12=416 interest per month.

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Life’s too short for the wrong job.

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You must be competent

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You must be creative!

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Why Customers Buy?

Customer does not buy for the characteristic but for the benefits.

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What’s for me?

WhiteningBad BreathCavitiesPlaqueWeak EnamelTender GumsGingivitis

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Clientele reaching your Business

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What is your business name?

Pedro’s Restaurant----------Mexican Restaurant

Pedro’s Haircut--------------Haircut 4 Less

Miami Taxes-----------------Taxes R us

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Email and URL

PedroDelgadilloBetancur1959@mexicanrestaurant.com NO pedro@mexicanrestaurant.com YES

http://sylviescreation.com NO or http://jewelrybysylvie.com

http://Pedrosshop.com NO or http://autorepair.com

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Conclusion

Entrepreneur Working for someone else!