Starting the business of your Starting the business of your DreamsDreams

Read further to learn the basics of beginning a business.Read further to learn the basics of beginning a business.

Starting your businessStarting your business

Business PlanBusiness Plan Find financingFind financing Decide to buy a franchise, existing business or open a Decide to buy a franchise, existing business or open a

new onenew one Choose a name andChoose a name and locationlocation Get all licenses andGet all licenses and PermitsPermits Hire employees Hire employees

This is the most important step in beginning your This is the most important step in beginning your business. A thorough plan can make the business. A thorough plan can make the difference between success and failure. difference between success and failure.

Financial ManagementFinancial Management

Explain your source and amount of initial equity Explain your source and amount of initial equity capitalcapital Are you going to borrow moneyAre you going to borrow money Are you going to use your savingsAre you going to use your savings Are you having a silent partnerAre you having a silent partner Where is your money coming fromWhere is your money coming from

Develop a monthly operating budgetDevelop a monthly operating budget What bills are you going to haveWhat bills are you going to have Do you have fixed or changing expensesDo you have fixed or changing expenses How much do you save each month for yearly expensesHow much do you save each month for yearly expenses

Develop an expected return on investmentDevelop an expected return on investment How do you plan to make your money backHow do you plan to make your money back What particular item will bring the most return on What particular item will bring the most return on

you investmentyou investment

Discuss Break Even PointDiscuss Break Even Point How much of each product must you produce to How much of each product must you produce to

break even each monthbreak even each month How did you figure this amountHow did you figure this amount

Who will maintain your recordsWho will maintain your recordsDo you hire an accountantDo you hire an accountant

Are you keeping your own recordsAre you keeping your own records

Do you know what type of Business Do you know what type of Business you want to own?you want to own?

Look at the following slides and think about Look at the following slides and think about your liability and obligation for each.your liability and obligation for each. Do you want to be completely responsible for the Do you want to be completely responsible for the

success or failure?success or failure? Do you want to make all the money? Pay all the Do you want to make all the money? Pay all the

debts?debts? Do you want backing from other people to help Do you want backing from other people to help

your dream come true?your dream come true?

Types of BusinessesTypes of Businesses

Proprietorship - Individually ownedProprietorship - Individually owned

Full responsibility falls on the ownerFull responsibility falls on the owner Examples are hair salons, general stores, Examples are hair salons, general stores,

corner markets, body shops.corner markets, body shops.

Partnership – Two or more ownersPartnership – Two or more owners

Each partner has unlimited liability for all Each partner has unlimited liability for all debts and business decisionsdebts and business decisions

Examples are law firms, father and son Examples are law firms, father and son businesses, Doctor officesbusinesses, Doctor offices

Types of BusinessesTypes of Businesses

Corporation – Organization of people legally Corporation – Organization of people legally bound by a charter, members are not bound by a charter, members are not responsible for debts of companyresponsible for debts of company

Privately or government ownedPrivately or government owned Shareholder own companyShareholder own company

Types of BusinessesTypes of Businesses

OperationsOperations How will the business be managedHow will the business be managed

Are you going to be a hands on managerAre you going to be a hands on manager Will you hire a bossWill you hire a boss

Procedures for hiring personnelProcedures for hiring personnel Do you have an application for future employeesDo you have an application for future employees Are you hiring friends or relativesAre you hiring friends or relatives Do you know what you are looking for in Do you know what you are looking for in

employeesemployees

What are insurance, lease or other issuesWhat are insurance, lease or other issues Do you need special insurancesDo you need special insurances Is there any lease restrictions or agreementsIs there any lease restrictions or agreements What other issues could come upWhat other issues could come up

What equipment is neededWhat equipment is needed Are you buying the equipmentAre you buying the equipment Will you lease equipmentWill you lease equipment What will you need to start your productionWhat will you need to start your production

How will production occurHow will production occur What is your production scheduleWhat is your production schedule Do you know the ins and outs of your productDo you know the ins and outs of your product

How will product be deliveredHow will product be delivered Are you having delivery personnelAre you having delivery personnel Will you be using UPS or FedExWill you be using UPS or FedEx

MarketingMarketing

Discuss products offeredDiscuss products offered

Find your target consumerFind your target consumer

Identify your marketIdentify your market

Explain your product, advertising & marketingExplain your product, advertising & marketing

Thoughts on marketingThoughts on marketing

Do all kids know what toys they want or do Do all kids know what toys they want or do they want what they see on tv?they want what they see on tv?

How did the world live without a microwave How did the world live without a microwave for hundreds of years and now we cannot?for hundreds of years and now we cannot?

Is Disney World really the happiest place on Is Disney World really the happiest place on Earth?Earth?

Does subway subs really make you loose Does subway subs really make you loose weight?weight?

Now that you are thinkingNow that you are thinking

Do athletes really perform better because they Do athletes really perform better because they drink Gatorade?drink Gatorade?

Are you really Loving It when you eat at Are you really Loving It when you eat at McDonalds?McDonalds?

Are there campaigns that stick in your head? Are there campaigns that stick in your head? Have you bought something strictly because of Have you bought something strictly because of the marketing?the marketing?

Important TermsImportant Terms Non disturbance clause Non disturbance clause Exclusivity ProvisionExclusivity Provision Anchor tenantAnchor tenant Assign LeaseAssign Lease SubletSublet Percentage LeasePercentage Lease Triple Net LeaseTriple Net Lease Right of First RefusalRight of First Refusal

www.business4wv.comwww.business4wv.com

All your information for a business in All your information for a business in West VirginiaWest Virginia

The world needs new businessesThe world needs new businesses

How will you stack up when it comes to your How will you stack up when it comes to your competition?competition?