Community Affairs Specialist South Metro SCORE Chapter August 10, 2017 Kay Gregg Community Affairs Specialist

What It Is Collaboratively developed by the FDIC & SBA A business education tool Collaboratively developed by the FDIC & SBA 13 modules Covers a wide range of business topics

Why It Was Created To assist financial institutions and community organizations to deliver small business workshops To provide small business owners with a basic understanding of the financial aspects of running a business To help start-ups become more viable To encourage stronger bank-entrepreneur relationships To spur economic growth and job creation

Curriculum Components Instructor’s Guide Participant’s Guide/Workbook PowerPoint Slides Train the Trainer Curriculum Available in English & Spanish 13 Modules

Understanding the Value for Small Businesses Banking Services Gain a solid understanding of the banking products and services available to small business owners Understand the importance of building effective long-term relationships with a banker or lender Recognize the role of a personal credit score in the lending process Understanding the Value for Small Businesses

Credit Reporting Demystified Understanding the full scope of credit reporting and the impact of credit reports on the operation or growth of a small business Discover strategies for building or improving business credit Appreciate how personal credit scores impact the ability of a business to obtain credit Demystified

Appropriate Allocation of Resources Financial Management Basics of small business financial management including: Startup financing Financing for a growing business Financing working capital Financing fixed assets Appropriate Allocation of Resources

Planning for the Unexpected Insurance Recognize the importance of small business insurance Understand the full range of insurance products and services Required coverage Other coverage Planning for the Unexpected

Advantages and Disadvantages of Business Structures Organizational Types Know that the legal structure of a business determines how a company operates and is taxed Distinguish the general characteristics, advantages and disadvantages of organizational types: Sole proprietorship Partnerships Limited liability company C-corporation S-corporation Advantages and Disadvantages of Business Structures

Record Keeping Critical Managerial Tool Comprehend the necessity for good record keeping Learn about the practices and rules of record keeping for small businesses Discover record keeping software tools. Critical Managerial Tool

Be Prepared for Negative Outcomes Risk Management Understand the common risks associated with a small business Identify the external and internal factors which can cause risks for a small business Implement, monitor and evaluate a risk management plan for a small business Be Prepared for Negative Outcomes

Selling a Business & Succession Planning Learn how to change the ownership of a business through selling, closing or transferring the business to successors Know how to establish an exit strategy for retirement which includes a succession plan, transferring ownership of the business and paying taxes Exit Strategies

Understanding the Details Tax Planning Understand the range of state, local and federal tax reporting requirements of a small business and its owner Be able to research general tax reporting requirements Understand the importance of establishing a plan to pay taxes Understanding the Details

Steps on Effective Use of Time Time Management Understand the importance of time management Discover commonly used time management practices like Pareto analysis ABC method Eisenhower method POSEC method Pareto analysis – 20% of tasks or efforts produce 80% of results ABC method – Ranking by a, b, c in order of importance Eisenhower method – “What is important is seldom urgent and what is urgent is seldom important.” Urgent & import do first Important but not urgent put on a calendar for a later time Urgent but not important – delegate Not important and not urgent – may never get done POSEC method – Prioritize, Organize, Streamline, Economize, Contribute (give back) Steps on Effective Use of Time

Is Small Business Ownership a Good Fit for You? Discern between the myths and realities of small business ownership Start a self-assessment to determine their readiness to become a small business owner Gain insight about their readiness to start a business Strength Assessments

Planning for a Healthy Business Discover a 4-Step Business Planning process, via a case study, that will help them create a long-term healthy business Back-of-Napkin Plan Resource Plan Business Plan Action Plan When you are just getting started, it is normal that your ideas are vague and perhaps a bit disorganized. Some ideas might just be in your head and not written down at all. You might have lists on the back of envelopes, on table napkins, or on scraps of paper. A resource plan is a shopping list for space, equipment, and supplies. It also lists estimated costs for skill development, staff, and other expenses necessary to open and run a business for about six months. A business plan is a story that you share with potential lenders. A well-written plan is not just a document. It is a living idea that clarifies your ideas and motivates stakeholders to support your business. Most business plans project three years into the future. Action Plan – plan for the future, for change, mitigate risk & be strategic Startup Costs and Beyond

Managing Cash Flow Practical Problem-Solving Learn how critically important cash flow management is for a small business Act as advisors to Bob and The Wired Cup Understand the need for expert assistance and advice Bob & Wired cup is a case study of a coffee shop Practical Problem-Solving

Next Steps Sign up to become an Alliance Member: https://www.fdic.gov/consumers/consumer/moneysmart/business.html To download any Money Smart curriculum and collateral material: https://catalog.fdic.gov/ www.sba.gov/moneysmart

Resources Quarterly MSSB Town Hall Webinars MSSB Alliance Town Hall Meeting recordings MSSB Train-the-Trainer Curriculum List of Money Smart Alliance Members updated periodically Money Smart News Money Smart Success Stories

Contact Info: Kay Gregg Community Affairs Specialist, FDIC dgregg@fdic.gov 763-531-0440, ext. 4930 For more information on FDIC Community Affairs go to: www.fdic.gov/communityaffairs