Kauffman Foundation(specializes in promoting innovation in America)

Robert Litman, Director of Research for the Kauffman Foundation…..

“Between 1980 and 2005, virtually all net new jobs created in the U.S. were created by firms that were 5 years old or less,” “That is about 40 million jobs…”

Despite the Odds There are successful start-ups,

turnarounds and expansions taking place

The unemployed and downsized are being creative

Experts agree, the job market will be slow to come back

Who Can Tell Me? The top 3 reasons why businesses

fail?

1. ___________________________

2. ___________________________

3. ___________________________

Changing Times The story of a 23 year old business

owner in 1976

No Capital No Plan No Experience

Fast Forward to 2010

Would this business owner be successful in today’s economic environment?

1. What does it take…

To successfully start a business in today’s economy?

2. Is it a viable option?

For clients with limited resources?

3. What can you do? To evaluate if a client is a

good candidate for business ownership?

To provide the client with resources so they can become

a successful entrepreneur?

Today’s Business Market

Faster More competitive Greater expertise needed Engagement – same &

different Financing & cash flow

Drivers New businesses up 63% in MN Women own 35% of businesses Lack of traditional employment Companies are not responsive to

“balanced life” demands Ethics/leadership crisis

1. What does it take? Constant learning attitude

Willingness to take the time, analyze, plan and do it right

Ability to fund the business

Constant Learning Attitude

Take classes, learn and gain experience the industry

Due diligence & market research

Seek coaching and advice from experts and mentors

Improving the Odds

A clear, concise, well-thought-out Business Plan!!!!!

3 years of conservative cash flow projections

Realistic timelines for start-up

Examples and Stories Lisa – FAIM Client

Jerome – Displaced worker GATE II client

Erica – Great Streets Client

Funding Plans(some overlap, total will not = 100%)

90% funded from personal savings

18% funded from bank loans 15% from credit cards 15% family & friends 8% home equity loans 1-2% SBA loans

Every Business Requires Funding

Criteria for funding has tightened

Standard lending requirements – owner investment, collateral,

and qualifying credit score

2. Is it a feasible, viable and desirable

option? Are market conditions

favorable for this type of business?

Can this business cash flow?

Can the business adequately compensate the owner?

3a. What can you do?

Criteria for evaluating if a client would be a good candidate for business ownership:

12 Key Questions Handout

3b. What can you do?Provide resources……. Business Planning Center SCORE Association MN Small Business Development Centers (MSBDC) Women’s Business Network WomenVenture

Making Your Job EasierServing Clients Better

St. Paul Pioneer Press 4-9-10 “Good-paying jobs don’t come from bailouts. They come from start-ups.”

Thomas FriedmanColumnist, New York Times

The Payoff Business start-ups will create jobs. Our economy needs to create a lot of new

jobs – the sooner the better. Starting a business is complicated, done

correctly, there is more to it than meets the eye – people need help and resources.

Today I’ve given you some information and tools to help you and your clients get through the maze a little quicker and more efficiently.

Let’s Recap Why do we need to help people start

and grow businesses? What can we do to help? What are the top 3 reasons

businesses fail? What are 3 major keys to success? What was the most important thing

you learned in our time together today?

Questions & Discussion Thank you for your participation

today.

After the question and answer segment, I’ll be available to talk with you individually if you like.

Go out and be a mentor to a small business owner!

Contact Information

Carol Jean Peterson Business Consultant WomenVenture cjpeterson@womenventure.org 651 251-0717