Presented by Janice R. Thomas, CPPB Are You In It to Win It? June 14, 2018 Presented by Janice R. Thomas, CPPB Senior Division Director, Office of Business Diversity & Community Relations

RCEP Standards National Organization of Minority Engineers has met the standards and requirements of the Registered Continuing Education Program. Credit earned on completion of this program will be reported to RCEP at RCEP.net. A certificate of completion will be issued to each participant. As such, it does not include content that may be deemed or construed to be an approval or endorsement by the RCEP.”

1 2 3 Main Objectives Understanding Why You Are In Business? Are You Maintaining Business Credentials? Are You Maximizing Your Business Success?

Understanding Why You Are In Business Why Did You Start Your Business? Money To Be Your Own Boss To Give Back/Help Others Sharing Your Knowledge How Did You Start Your Business? Inherited Savings Investors Vision

Understanding Why You Are In Business Do Your Research Know the Law Understand Supply & Demand Balance Your Books Accounts Payable vs. Accounts Receivable Understand Your Company's Capacity

Types of Business Organizations Sole Proprietorship Pros & Cons Cannot Sell Equity to Raise Capital Unlimited Liability and Responsible for all Debts and Obligations Ownership Cannot be Shared with High Quality Employees Some Benefits Are Not Deductible from Business Income Simple to Setup and Inexpensive Can Commingle Company and Personal Assets Earned Income Can Offset Losses Complete Authority to Make Decisions Easy to Dissolve

Types of Business Organizations Partnership Pros & Cons Each Partner is Liable for all Debts and Obligations Profits are Shared Disagreement with Partners can Occur Each Partner can Legally Commit the Business to a Contract Employee Benefits May Not be Deducted From Tax Returns Limited Ability to Raise Capital Easy to Establish Can Share Ownership with High Quality Employees Each Partner Can Individually Pay Taxes on Their Share of the Distributions Requirements for State and Federal Filings are Less Than a Corporation

Types of Business Organizations Limited Liability Company (LLC) Pros & Cons State Law Might Require the LLC to Dissolve After 30 Years State Law Might Require the LLC to Dissolve a Member Dies or Quits More Regulatory and Filing Requirement Than a Sole Proprietorship or Partnership Limited Liability for Partners No Double Taxation No Limit on Number of Shareholders Unlike A Partnership, Any Member Can Be Involved in the Operations Less Filing and Administrative Requirements Than a Corporation

Types of Business Organizations Corporation Pros & Cons Filing and Administrative Requirements are Higher Than Other Business Types Higher Overall Tax Rates Dividends Are Not Tax Deductible for the Corporation Income is Taxed Twice Increased Compliance Costs From Regulatory Requirements of Federal, State and Municipal Agencies S-Corps are Limited to One Type of Stock Liability Protection to Owners Personal Assets Not at Risk to Creditors Owners Do Not have to Pay Taxes on Retain Earnings Capable of Raising Capital and Offering Different Stock Levels Are Not Required to Dissolve After a Certain Period of Time Are Not Required to Dissolve After an Owner Quits or Dies

Maintaining Business Credentials What business credentials do you need? Business Owners Should Research All Requirements Prior to Starting a Business Business Requirements may differ depending on: Type of Business Type of Business Organization Local, National and Municipality Laws

Maintaining Business Credentials What business credentials do you need? Certifications Protective Clothing Insurance/Bonding Degrees and Licenses Knowledge and Experience Capital and Equipment Qualified Staff

Maintaining Business Credentials Requirements for Disadvantage Business Enterprise (DBE) Certification Ownership An independent business that is at least 51 percent owned by a socially or economically disadvantaged individual(s) Personal Net Worth (PNW) Majority owner personal net worth must not exceed $1.32 million Size A for-profit business that meets the Small Business Administration’s (SBA) size standard and does not exceed $23.98 million in gross annual receipts over a three year average Control The majority owner must control the management and daily operations

Maintaining Business Credentials cont’d. Business Credentials are important because: Affects your credibility as a business owner Integrity Further develops knowledge on subject/business Subject expert Failure to keep up with credentials can lead to the loss of the business Credentials ultimately dictate how your business operates

Maintaining Business Credentials cont’d. The “Kitchen Counter” It is important to have good people to bounce ideas from They will help you remember where you want to go with the business, how you are getting there and what you need to get there

Maximizing Business Success Relationship Building Marketing Finance Re-Inventing

Maximizing Business Success cont’d. Relationship Building Build a relationship with the following people: Banker Financial Advisor Insurance Broker Investors Government Agencies Prime Contractors Manager and Gatekeepers Legal Council

Maximizing Business Success cont’d. Marketing Plan A comprehensive document or blueprint that outlines a business advertising and marketing effort during the year. Can differ depending on the audience Know the what, the when, the where and the how Know how to present yourself Business meeting attire vs. work meeting attire

Maximizing Business Success cont’d. Types of Marketing Strategies Paid Advertising Includes TV, Print Media and Pay Per Click Internet Advertising Cause Marketing Links the services and products to a social cause or issue Relationship Marketing Customer building and improving customer loyalty Undercover Marketing Marketing a product while the customer is unaware of the marketing strategy Word of Mouth Relies on the impression you leave on your customers Internet Marketing Includes Facebook, Twitter, Instagram, LinkedIn, Tumblr, YouTube Transactional Marketing Sales Diversity Marketing Covers aspect like cultural, beliefs, attitudes, views and other needs

Maximizing Business Success cont’d. Financial Plan Forecast Be proactive not reactive Audit Have regular meetings with your bookkeeper and financial advisor Schedule Payments Have a plan if your customers do not pay on time Schedule Retained Earnings Determine how much money will be put back into the business Identify a Strategic Plan Consult with Legal Council Understand what you are signing before you sign

Maximizing Business Success cont’d. Re-Inventing Customers ask two questions What is it going to cost me? What is it going to save me?

Maximizing Business Success cont’d. Hard Work + Dedication = Success Success is when your future has been planned, prepared and paid for

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This concludes the educational content of this activity Thank you for your time! QUESTIONS? This concludes the educational content of this activity National Association of Minority Engineers www.nomeonline.org 312-960-1239

References Types of Business Organizations – Pro and Cons – EquityNet Blog https://www.equitynet.com/blog/business-organization-types/ 8 Types of Marketing Strategies and Definition – Yodiz Project Management Blog https://www.yodiz.com/blog/8-types-of-marketing-strategies- and-definition/ Marketing Plan - Wikipedia https://en.wikipedia.org/wiki/Marketing_plan

Purpose and Learning Objectives Purpose of Activity This workshop will explore the question of what it means to be in business, your leadership position and understanding what is important for sustainability of a business. The topic will include why it is important to maintain your business credentials and how it could impact your business if not maintained. We will also discuss different strategies that could help maximize the success of your business. Learning Objective At the end of this presentation you will have learned: The importance of being steadfast and diligent in order to develop by delivering competent work and a commitment to growth To recognize the significance of not being afraid to think outside the box to create strategy that will help the company grow To maintain credentials that will help give substance and value to the company

This concludes the educational content of this activity Thank you for your time! QUESTIONS? This concludes the educational content of this activity National Association of Minority Engineers www.nomeonline.org 312-960-1239