Starting Your Own Business - Lindell Associateslindellassociates.net/.../Well...Consider-Before-You-Start-a-Business.pdf · Starting Your Own Business. . One who organizes, manages,

www.lindellassociates.net

How to Turn Your Dreams Into

Reality

P. Griffith “Griff” Lindell

Starting Your Own

Business



One who organizes, manages, and

assumes the risks of a business

enterprise.

• Question for me…

– What’s really important to think about for

perspective entrepreneurs?

Entrepreneur:


Failure Rate

• The U.S. Small Business

Administration says that more than

half of small businesses fail in their

first year.


A Good Businessperson

Has...• Discipline

• Experience

• Patience

• People skills – make good choices in response

• Aptitude with numbers

• Ability to predict:– Costs

– Impacts on time, the market, the customer


AB

C

D

E

5 Shapes: Select the one that is

different from the others


Do You Know the “Shape” of:

Legal Structure?

Marketplace?

Customers?

Competition?

Distribution?

Relationships?

Your business?


Three Foundational Questions

• Why do you want to move from

being employed to Self-employed?

• Are you suited to be an

entrepreneur?

• What should you do next?


Your Business Idea

• Need in the marketplace?

• Solution?

• You passionate?

• Real value to the customer?


Important Questions To Be

Answered

• Is your idea feasible?

• Do you have the experience and

background to make your idea flourish?

• Are there many companies in this line of

business?

• Is there demand for your product or

service?


Counting the Costs

• Time costs

• Life-style cost

• Are you willing to invest your

weekends, holidays, evenings,

birthdays, anniversaries, etc.?


Counting the Costs

• Is the market large enough to

support your business idea?

• Have you penciled the numbers?

• Have you done a B/E?

– Fixed costs

– Variable costs


Counting the Costs

$

Output in Numbers


Counting the Costs

• Is the market large enough to

support you business idea?

• Have you penciled the numbers?

• Have you done a B/E?

– Fixed costs

– Variable costs

• Have you written a business plan?


The Plan Parts

• Executive Summary

Financial Analysis

The Company

Products and Services

Market Analysis

Competition

Business Strategy and Implementation

Operations

Organization

Supporting Documentation


Planning Process

PlanPrepare for the future

Recordmeasure the results

Evaluateexplain variances from the plan

Analyzecompare results to the plan Results

something happens

Actimplement the plan

1

6

5

4

3

2Success

failure


Planning Process





something happens


1

6

5

4

3

2Success

failure


IN PRODUCING

A RESULT !

YOU ALWAYS SUCCEED


Planning Process





something happens


1

6

5

4

3

2


Planning Process


Evaluate

Analyze

RecordResults

Actexplain variances from the plan

measure the results

compare results to the plan

something happens

implement the plan

1

6

5

4

3

2


Planning Process


Evaluate

Analyze

RecordResults


measure the results


something happens

implement the plan

1

6

5

4

3

2


Planning Process


Evaluate

Analyze

RecordResults


measure the results


something happens

implement the plan

1

6

5

4

3

2


The 10 Questions

1. Have you counted the costs?


Not yet Got it done!I have penciled it out. 1 2 3 4 5 6 7 8 9 10

I have money set aside. 1 2 3 4 5 6 7 8 9 10

I have access to money. 1 2 3 4 5 6 7 8 9 10

I have set-up a cash flow forecast. 1 2 3 4 5 6 7 8 9 10

I know my start-up costs. 1 2 3 4 5 6 7 8 9 10

I have calculated my break-even point. 1 2 3 4 5 6 7 8 9 10

36 – 40 = You are on your way!

32 – 35 = You are almost there – just a little more work to do.

28 – 32 = You have made a start: know what’s next and attack it.

27 or less = Are you sure you want to be in business?


FinishedActivity Start Date Completed Date

□ I have penciled it out. _____________ _______________

What I have learned:

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________

____________________________________________________________


The 10 Questions


2. Are you ready, willing and able for a

change in your lifestyle?

3. Is your support team on board?

• Risk/reward conversation

• Family impact addresses

4. Do you enjoy the business of business?

• Language of business?


Cash Flow


Cash Flow defined…

1. Cash Flow is the flow of cash INTO and

OUT OF a business over a selected time

period

2. Cash Flow is:

Positive when cash receipts exceed cash

payments – YOU CAN PAY YOUR BILLS!

Negative when cash payments exceed cash

receipts – YOU HAVE TO BORROW TO PAY BILL



CASH FLOW

($2,861)

($549)

$3,769

$5,089

($573)

($7,727)

($8,508)

($8,614)

($17,920)

($16,669)($20,000)

($15,000)

($10,000)

($5,000)

$0

$5,000

$10,000

Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


CASH FLOW

($2,861)

($549)

$3,769

$5,089

$14,427

$7,273 $6,492

$6,386

($2,920)

($1,669)($4,000)

($2,000)

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

$15,000 investment from Founders


Local, State & Federal

Business Regulations

• Fictitious Name Act (Filing In Oregon)

www.filinginoregon.com

• Licenses

• Insurance

• IRS - Employer Identification Number

(866) 816-2065

• Federal Self-Employment Tax – if appropriate

• Business Tax Information


The 10 Questions


2. Are you ready, willing and able fora change in your lifestyle?

3. Is your support team on board?

4. Do you enjoy the business ofbusiness?

5. Are you comfortable making toughdecisions on the fly?


The 10 Questions

6. What's your track record of making

stuff happen?

7. How well do you communicate?


Communicating About

Your Business

• Who are you targeting?

• What are they looking for?

• What are you offering?

• Why it is so very special?

• How it is unlike others?


Sample Positioning Statement

FOR: Portland-area businesses

NEEDING: who are looking for a quality, sophisticated Holiday entertainment experience

WHAT: the Fireside Carolers of Vivace Voices, offer professionally trained voices

WHY US: singing {in eight part harmony} both traditional and unique jazz versions of Holiday music

WHY NOT THEM: unlike the 19th century-type Carolers, we offer a truly American entertainment experience and, in the spirit of the Season, we give back a portion of our revenue to the community.


…The Fireside Carolers

In the Spirit of Giving

Let your holidays sparkle with the sophisticated, jazzy American sound

of…


The 10 Questions

6. What's your track record of makingstuff happen?

7. How well do you communicate?

8. Is this new business somethingabout which you are passionate?

9. Are you a person that gives othersenergy – a self-starter?

10. Do you have a “partner”?


Ready for Business?

‘There are no shortcuts to any

place worth going.” Beverly Sills


$14.95


$14.95

4.95

4.95

4.95

$29.80

$20.00

Documents

Starting Your Own Business - Lindell Associateslindellassociates.net/.../Well...Consider-Before-You-Start-a-Business.pdf · Starting Your Own Business. . One who organizes, manages,