Small Business Development Center at LCCC

Business Start-Up Basics ILisa Hutson

Business Advisor Susan Patton

Business Advisor

440-366-4370www.lorainccc.edu/sbdc

Ana BadilloBusiness Advisor

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What to Expect…

Welcome and Introductions Course Objectives Steps in Starting Your Own

Business Business Plan Networking Your Next Steps Class Evaluation

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SBDC of Ohio

Business Consulting and Training Free, Professional, In-Depth and Confidential

Assistance for All Stages Pre-Venture, Start-Up, Existing Small

Businesses

Network of 42 Centers throughout Ohio Includes International Trade, Manufacturing &

Technology (STMA, Magnet), Government Contracts (PTAC), GoldmanSachs

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SBDC Assistance Available

One-on-One Counseling

Business Plan Guidance

Marketing Assistance

Financial Projections and Budgets

Human Resources

General Business Questions

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Lorain County Growth Partnership Resources

Lorain County Community College GLIDE Blackstone LaunchPad Fab Lab Credit Courses

Team Lorain County

Lorain Chamber of Commerce

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Are you…Are you an Entrepreneur?en·tre·pre·neuräntrəprəˈnoEor,-ˈnərNoun-a person who organizes and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Synonyms:businessman/businesswoman, enterpriser, speculator, tycoon, magnate, mogul

Are you an Inventor?

in·ven·torinˈventər

Noun-a person who invented a

particular process or device or who invents

things as an occupation.

Synonyms:originator, creator,

innovator

or

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Look at Yourself

Are you good at something?Do you have an idea?Can you make something? Is it different?Is it better?Can you SELL/PROMOTE?

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Look at Yourself

Entrepreneurial QuizDo you have what it takes?

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20 Questions Before Starting

How much money do I need to get started?

What products/services will my business provide?

Am I prepared to spend the time and money needed to get my business started?

What differentiates my business idea and the products/services I will provide from others in the market?

Who is my ideal customer?

What types of suppliers do I need?

Where will my business be located?

How many employees will I need?

What kind of business do I want?

Why am I starting a business?

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20 Questions Before Starting

How will I set up the legal structure of my business?

Will I need to get a loan?

How will I price my product compared to my competition?

How will I advertise my business?

Who is my competition?

What kind of insurance do I need?

What taxes do I need to pay?

How will I manage my business?

How long do I have until I start making a profit?

How soon will it take before my products/services are available?

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Business Success

What You Must Have to Succeed

Management SkillsAn Operating StrategyPlan of ActionMoney

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Methods to Start

Starting from Scratch Your Ideas Your Plan

Buying a Franchise Business Plan Marketing

Buying an Existing Business Known Brand Systems in Place

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What is the Purpose of Your Business Plan?

Looking for Financing?

Using as a Project Plan?

Self Guidance?13

A Business Plan

Precisely defines goalsServes as firm’s resumeHelps you allocate resources properly, handle unforeseen complications and make good business decisionsRequired for a loan application

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Basic Business Plan Components

Cover Page

Executive Summary

Your Company The products/services that you sell Your audience/ideal client Future of your business and industry

Company Description Key employees of your business, such as CEO, President & Vice

President Mission statement Details about the products or services your business will provide Qualities that will make your business a success

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Business Plan Components cont.

Market Research Target Customer Competitive Analysis Legal/Regulatory requirement impacting your business and

industry

Product/Service Line Detailed description of Product or Service How does it benefit customers and meet their needs Advantages over competition Current development stage (idea/prototype)

Sales and Marketing How will company reach customers & sell product/service (Detailed

description) How will company communicate with customers How will company advertise How will company grow 16

Business Plan Components cont.

Finances 1-3 years (current or projected) Balance Sheet Profit/Loss Statement (Income Statement) Cash Flow Analysis Total Project Cost/Financing Request Start-Up Costs

Others to consider: Pricing, Etc.

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Where to Find Samples?

SBA.gov

SCORE.org

SBDC.org

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SBA.gov

Learning Center

SBA Tools

SBA Videos

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SCORE.org

Workshops (online)

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SBDC at LCCC

LEARN MORE

LEARN MORE

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09The SBA AdministratorMARIA CONTRERAS-SWEET

Maria Contreras-Sweet is a member of the President’scabinet and a champion ofdiversity, access to capital andequal opportunity for all Americans.

READ MORE

View More Tools•Get

Training•Get Local Assistance•Qualify for Contracts•Create a Business PlanFollow

Services

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How to get started Market Research

Gather Primary Data and Information Customer Industry Product/Service

Research Your Business Idea

Demand/Need for Your Product

Competition

Define Target Market

Pricing Strategies Legal and Regulatory Requirements

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Market Research Resources

www.naic.com – know your competitors and industry market

Cleveland Public Library (Cleveland Patent and Trademark Resource Center)

GOOGLE US census data (demographics for

target customers)Library

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Business Plan Template

Introduction - Company Description Describe your novel solution that addresses

a large market pain or problem (Limit to 2-3 sentences)

What is your product/service? What is your competitive advantage? What is your “niche”? Communicate traction (i.e. what you have

accomplished or how you will accomplish)

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Market Need/Opportunity

What area of “pain” or unmet need does your product/service/technology address? Is it something customers absolutely need to have? What is your value proposition that customers cannot live without it?

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Offering

Discuss your product/service Explain what makes this opportunity

unique from others in the market

Describe where you fit in the value chain

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Competitive Advantage:

What is your strategy for product/service differentiation? Strategic Partners Production Cost

What is your competitive advantage? What is your “niche”? Why customers will choose you over the

competition?

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Go-to-Market Strategies

Explain how you will make money, and who pays you?

How will you scale your business model (marketing, social media, etc.)

How does your price compares to your competitors?

Who can be your strategic partners?

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Who are your Customers?

Who is Your Market? People you will actively solicit, target, and

pursue to sell your products or services

What do you need to know about them? Demographics Geographic Behaviors

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Management Team

Describe the backgrounds of the founder(s), current management team, and board of directors/advisors members. If you haven't assembled a board of directors/advisors, or employees yet, describe your idea of a "dream team" and specifically how or what you envision them contributing.

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Financials

What are your financials from a balance sheet, income statement, and cash flow standpoint? Start-up business should have projections

for first 3 years with monthly breakdown Existing business should have 3 years of

financial historyWhat is your realistic plan regarding milestones, execution, and cash management

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Starting a Business in Ohio

www.sos.state.oh.us/sos/businesses.aspx

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Business Types

Sole ProprietorshipGeneral PartnershipLimited Liability Company (LLC)CorporationNonprofit

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Sole ProprietorshipSingle ownerNo legal distinction between the business and the ownerEase of creation and functionAll business profits are taxes as personal income

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General Partnership

Two or more owners Pooling of owner assets (both monetary and skill sets)Unlimited personal liability for all debts

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Limited Liability Company (LLC)

Combines elements of partnership and corporate structuresMay be formed in OH for a profit or nonprofitMore flexible than a corporationWell-suited for companies with only one ownerAssets of the owners are protected

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CorporationFor-Profit for anyone, singly or jointly with others, and without regard to residenceMust file Original Articles of Incorporation before doing business in OHName of the corporation must include: “Company,” “Co.,” “Corporation,” “Corp.”, “Incorporated,” “Inc.”

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Non-Profit OrganizationsFormed for charitable, educational, religious, scientific, community development or other socially beneficial purposesSpecial ConsiderationsApply for Tax Exemption at www.irs.gov

Contact Department of TaxationContact Ohio Attorney GeneralIf the intent is to engage in solicitation activities

Apply for a Nonprofit Postal Permit

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Networking

Chambers of CommerceProfessional AssociationsTrade ShowsBusiness SeminarsSocial Media Networking GroupsFEBE3 –Wednesdays at 10:00am

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What’s Next?Entrepreneurial Workshops at SBDC Business Start-Up II (learn the basics on how to

project start-up cost, potential sales, profits, etc.)

Business Start-UP III (learn the basic of a Balance Sheet, Profit & Loss Statement, basic chart of accounts, etc.)

How to Request Individual Business Counseling www.lorainccc.edu/sbdc 440-366-4370

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