Starting & Operating A New Small Business 12/29/2018 David Ambrosini

Bus 188 12/29/2018 David Ambrosini

Part 1 - Developing Your Business Concept Topic 1. Entrepreneurship.- facts & figures Topic 2. Business Plans Topic 3. Source Of Your Business Idea Or Opportunity Topic 4. Define Your Business 12/29/2018 David Ambrosini

Entrepreneurship Facts & Stuff Definition #1 - One who assumes the risks of business. Professor: “You’ve never been one until you’ve met a payroll.” Ambrosini: “You’ve never been one until you’ve missed a payroll.” 12/29/2018 David Ambrosini

Entrepreneurship Facts & Stuff Definition #2 - One who doesn’t realize their job is impossible. + 650,000 new businesses each year - 60,000 fail yearly - 30% left after five years 12/29/2018 David Ambrosini

Entrepreneurship Facts & Stuff Types of business most likely to FAIL: computer stores, laundries, dry cleaners, florists, used-car dealerships, gas stations, trucking firms, restaurants, infant’s clothing stores, bakeries, grocery/meat markets, night clubs/bars. 12/29/2018 David Ambrosini

Stuff 5-10% of all products > 5 year old Small Business = < 500 employees or < $10 million annual revenue 74% sole proprietors 43% of GNP 90% of new jobs in the last 20 years are services 12/29/2018 David Ambrosini

Stuff 60% of the workforce 21,500 businesses in Santa Cruz County 25 businesses in S.C.C. have more than 200 employees Local Small Businesses experience more than double the national failure rates 12/29/2018 David Ambrosini

Stuff 60% of California’s small businesses are in Southern California S.C.C. bankruptcy rate is 55% higher than the national average 42,000 commute out of S.C.C. daily in 35,000 cars 8000 cars commute in 12/29/2018 David Ambrosini

Stuff - Key Question S.C.C population is ____________? A) 1.5 million B) 750,000 C) 265,000 D) Over 3 million Answer is C) 265,000 people 12/29/2018 David Ambrosini

Education & Small Business Ownership Adults 12/29/2018 David Ambrosini

Education and Small Business Ownership 12/29/2018 David Ambrosini

Hours/Week New Business Owners Work 12/29/2018 David Ambrosini

Types & Forms of Business Producers Manufacturers Services Distributors Wholesaler Retailer Agent Broker 12/29/2018 David Ambrosini

Assessing a Business Plan Who is the Start-up Team? What confidence do you have in them and why? What is the Product? What is the unique selling proposition? How much start-up capital is needed? 12/29/2018 David Ambrosini

Assessing a Business Plan What is the proposed source of capital? What is the businesses purpose or mission? What is the opportunity? What is the competitive advantage? What are the risks? 12/29/2018 David Ambrosini

Assessing a Business Plan What is the Market potential? Who is the typical customer? How will the business be marketed? What is the business name/brand names? How many employees? What is the expected monthly/yearly profit? 12/29/2018 David Ambrosini

What is a Business Plan a word picture, a visualization of your business written document 1. situation analysis (where you are) 2. objectives (where you're going) 3. strategy (how to get there) 12/29/2018 David Ambrosini

A Business Plan is General Patton: "A good plan violently executed now … ...is better than a perfect plan later." 12/29/2018 David Ambrosini

Purpose of a Plan dry run - risk free practice, feasibility, survival probability vision onto paper - conceptualize, organize communication tool directions, guidelines, yardstick, contingencies 12/29/2018 David Ambrosini

Purpose of a Plan obtain resources find weaknesses 12/29/2018 David Ambrosini

Target Audience Team Members - expected contributions Management Regulators Community Stockholders Investors/Partners Suppliers 12/29/2018 David Ambrosini

What Separates the Successes From the Failures They are carefully planned. They are well capitalized They are niche players They are not pioneers 12/29/2018 David Ambrosini

What Separates the Successes From the Failures They learn from their errors They learn from their competitors They are managed according to a method They are customer centered 12/29/2018 David Ambrosini

Outline of a Business Plan (version 1) 12/29/2018 David Ambrosini

Business Plan Outline (version 2) Vacation… Travel... 12/29/2018 David Ambrosini

Business Plan Writng Tips First Impression Writing Style Contents Based on Target Reader Good Executive Summary Table of Contents/Page #’s Appendices Confidentiality & Qualifying 12/29/2018 David Ambrosini

Business Ideas & Opportunities Where do they come from? 1) Sources: · technology · law · social issues · marketing changes, etc. 12/29/2018 David Ambrosini

Business Ideas & Opportunities Where do they come from? 2) Product · new benefits · distinct advantages 3) Competition · advantages · ability to imitate · poor efforts/dissatisfied customers 12/29/2018 David Ambrosini

Business Ideas & Opportunities Where do they come from? 4) Personal Skills/Knowledge/Ability 5) Market Niche/Positioning 6) Acquired knowledge, Skill, Opportunity from workplace NEW IDEA/INNOVATION 12/29/2018 David Ambrosini