How to Start Your 1st Business

by Janice Riley

What We’ll Cover

• Knowing the Right Business Idea for You• Selecting the Right Corporate Structure• Strategic Plans and Why You Need One• Goal Setting and Why It's Important• Discover FREE sources for Startups

Knowing the Right Business Idea for You

• What Color Is My Parachute?• What is your DISC score/Meyers-Brigg

assessment/etc.?

• What is your passion?

Selecting the Right Corporate Structure

• Seek professional advice to consider pros and cons of each entity• Consult SBA/SCORE (free) or attorneys & accountants ($

$) for your own business needs• 3 Key Factors• Liability• Taxation• Record-keeping

The Different Entities

• Sole Proprietorship• One owner• Easy to form and report taxes (quarterly returns)• Complete managerial control• Personally liable for all financial obligations of biz• Dependent on self for funding/financing

Partnership

• Two or more owners• Tax burden passes thru to partners for individual taxes• Each partner is liable for obligations of business• Must file Partnership Tax Return Form 1065• Each partner can act on behalf of partnership. • More legal and accounting services needed

Entity Type: Corporations

• Avoidance of personal liability• Cost & time to form corporation• Legal & Accounting Services• Extensive record-keeping required• Ability to raise funds thru shares/stock• S-Corp allows income or losses to pass thru to individual

tax returns• Possible double taxation: once as Inc, once as Individual

Limited Liability Company

• Hybrid of Partnership & Corporation• Profits & Losses pass through to individuals• Shielded from personal liability• Tax treatment varies by state• Flexible management• Flexible distribution of profits & losses• No stock for fundraising• Fewer incentives for employees

Deciding Which Is Right?

• Legal liability – Can you afford the risk of the company’s liability?• Tax implication -- What are the opportunities to

minimize taxation?• Cost of formation & administration – Record-keeping

and paperwork• Flexibility – Consider the unique needs of the business

and owners• Future needs – Think 5-10 years out. Exit strategy?

Strategic Plans & Why You Need One

• Executive Summary, Elevator Pitch, Mission Statement• SWOT Analysis, Goals, Key Performance Indicators (KPIs)• Target Customers, Industry Analysis, Competitive

Analysis & Advantage• Marketing Plan, Team, Operations Plan• Financial Projections

Why a Strategic Plan?

• Banks, Investors, Management Team members will want to review it• Key questions that you need to answer to ensure

success• Identify your market, your product, your go-to-market

strategy• What do you need to do in order to make money?• How many sales per week/month?• At what price point?• What production level is necessary?

Goal Setting & Why It’s Important

• SMART goals (Specific, Measurable, Achievable, Realistic, Time-targeted)• Work towards your objectives• Provides focus for business• Specific & ambitious goals lead to higher level of

performance• Self-satisfaction of achievement• Energizing for those battle-worn days

Free Resources for Startups

• SCORE – nonprofit of online and in-person counseling for businesses• Nearly 400 chapters• Small Business Smart Start Tools• Working & retired executive who volunteer

• Small Business Development Centers• 1100 branch offices• Workshops• Resource libraries

More Startup Resources

• SBA• Free at-your-pace courses• Veteran resources• Women’s Business Center

• US Chamber Small Business Center• Startup Toolkit• Library• Government Contracts Guidance

• SuccessfulStartup101.com

That’s all, folks!

Questions?or

Comments?