Entrepreneurial 101 free download

Empowering Business Spirit

Welcome to the
Empowering Business Spirit Seminar


Empowering Business
Spirit Seminar
Presenter:
To Be Announced


Entrepreneurial Spirit Seminar
Schedule


EDC, EBS, SBDC, and partners (who we are and what we
do)

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Entrepreneurial Spirit (statistics and reality)
Feasibility Study Process (Will I have customers?)
10 Minute Break
Business Plan (overview)

Legal Issues/Business Structure (pros & cons)
Financing (you and the bank)
Questions & Answers (Evaluation)


MainStreet

EDC

EBS

C of C

SBA
EBS, Partners,
and Entrepreneur

LCC

NMHU

NMEDD

SBDC

Others


Overview
Overview of

of our
our Common
Common Goals
Goals


Goal: To Grow Businesses and Create Jobs



Designed: To maximize business success by coupling
financial programs, managerial and technical
assistance



What drives the EBS Project: Seeing Small business
succeed by Planning (a well developed business plan)
and Seeking Professional Advisors, while avoiding the
problems of staffing and understanding that years of
education do not necessarily correlate with success


Empowering Business Spirit

•20 Major EBS Partners
• Referral system resources
• One on One Business Counseling
• Seminars
• Resources (software, stats & advice)

CLIENT FLOW CHART
Client
EDS Presentation
Business Plan Workshop
Resource Referrals

EDC

20 EBS

SBDC

SBA

Completed Business Plan

Others


Entrepreneurial Spirit Seminar


Every 30 seconds of every day,
someone somewhere in the United
States starts a new business.
Every 30 seconds someone stakes
their money, their labor, their good
name on the unshakable belief that

they can make or provide
something bigger, better, faster, or
cheaper than the other person.


Entrepreneurial Spirit Seminar


In America today, smaller businesses,
Companies with fewer than 20
employees, create 98% of all new jobs.


Entrepreneurial Spirit Seminar


There are more than 21,000,000 small
business in the U.S. 16,000,000 have the
owner as the sole employee. 5,000,000
have between 1 and 500 employees.



It is estimated that between 800,000 and
1,000,000 business are begun every year.


Entrepreneurial Spirit Seminar


Small businesses…
– employ 53% of the private workforce.
– provide 47% of all sales receipts.
– provide 55% of innovations.
– account for 35% of federal contract dollars.
– account for 28% of jobs in high technology sectors.
– account for 51% of private sector output.


Entrepreneurial Spirit Seminar


US Patent Office currently reviews more
than 10,000 patent applications
monthly.



Over 500,000 new firms have emerged
in the US every year since the mid
eighties, around 1,500 daily.


Entrepreneurial Spirit Seminar
During the 1950’s only 100,000 new business
were incorporated annually.
 During the 1970’s the number was over
200,000 new businesses yearly.
 During the 1990’s the number is up to 600,000.
 During 2000’s number continues strong

 Add the increasing competition from US and
foreign corporations.



Business Dissolution Rates (%)
after
after 22 yrs.
yrs.
after
after 44 yrs.
yrs.
after
after 66 yrs.
yrs.
after
after 88 yrs.
yrs.

80

all
all firms
firms franchises
franchises 1-4
1-4 jobs
jobs 55 or
or more
more employees
employees

23.7
25.4
8.3
66
23.7
25.4
8.3
52.7
59.2
19.6
13.1
52.7
59.2
19.6
13.1
62.2
61.6
23.5
21.1
62.2
61.6
23.5
21.1
70.9
72.5
46.5
30
70.9
72.5
46.5

30

70
60
50

after 2 yrs.
after 4 yrs.
after 6 yrs.
after 8 yrs.

40
30
20
10
0

all firms

franchises

1-4 jobs

5 or more

Source: Dun and Bradstreet Corp. and U.S. Department of Labor


How many small businesses opened?
Incorporate

Incorporate
New
New Firms
Firms

647,675
647,675
769,124
769,124

768,180
768,180
819,477
819,477

790,569
790,569
842,357
842,357

Source: Dun and Bradstreet Corp. and U.S. Department of Labor


How many small businesses closed?
Bankruptcies
Bankruptcies
Failures
Failures
Terminations
Terminations

63,912
63,912
60,746
60,746
837,511
837,511

50,516
50,516
71,194
71,194
863,699
863,699

53,214
53,214
71,811
(
71,811 (125,025)
849,839
849,839

Source: Dun and Bradstreet Corp. and U.S. Department of Labor


Entrepreneurial Spirit
ORGANIZED
+ CREATOR
+ IMPROVER

+ MANAGER

(Plan, Staff, organize, and decision-making)

[Administer,

maintain, control, short-term view, ask how and when, initiate, accept the status quo, do things right.]

+ LEADER

(control, motivate, charismatic)

[Innovate, develop, inspire,

long-term view, ask what and why, originate, challenge the status quo, do the right things.]

--------------------= ENTREPRENEUR ! ! !


Entrepreneurial Spirit Seminar
Owning your business can be a wonderful
opportunity:
 To be your own boss.
 To take charge of your financial future.
 To work 7 days a week, 24 hours a day,
with no pay check at the end.


Entrepreneurial Spirit Seminar
Expect to work an average number of

about 64 hours per week

84% of Entrepreneurs polled love the
type of work that they do every week!


Myths of Business Ownership
1. I can start living off the business
immediately.
2. I’ll be my own boss.
3. I’ll get rich overnight.
4. I have nothing to lose (OPM).
5. Will give me independence.


More Myths….
Will allow me time off any time I
want.
 Will let me control the business.
 Will make a lot of money.
 Will be easy to do.
 Will be easy to get funding for my
great idea.



Feasibility Study
It is a Planning Process That Helps you:
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Determine if your business idea is a true
opportunity or an unrealistic idea that will take
your time, money and energy?
Determine if your idea is “do-able”.
Assess personal and financial resources
necessary for success.
Become familiar with Business Plan concept.
concept


Feasibility Study
DOES YOUR BUSINESS IDEA HAVE
THE THREE-WAY FIT?
Market Fit
 Financial Fit
 Personal Fit



The Feasibility Process
IDEA

Definition
Objectives

The Feasibility Process
IDEA

MARKET ANALYSIS

INDUSTRY
MARKET
COMPETITION
(price,
differentiation, and
focus)