1. Business Start-Up Fundamentals Entrepreneurial Workshop I

2. AGENDA The Planning Process Assessing personal and business needs
The importance of a business plan
Understanding business plan components

3. The Reality of Obtaining Financing
What banks look for when assessing a loan request
How to complete a loan application

4. What Banks Look For What Banks Look For
Cash Flow
Credit
Collateral
Contribution (or capital)
Character (industry / references)
Condition

5. Lifestyle Assessment 1. Do you have children? 2. Do you have savings?
3. Is your spouse employed?
4. What do you do with your free time?
5. Are you accustomed to working long hours?
6. Are you a morning or night person?

6. Business Assistance Areas
Marketing
Advertising
Sales
Tax Knowledge
Insurance

7. Business Assistance Areas (con’t.)
Business Finances
Presentation Skills
Communication Skills
Legal Aspects
Banking Services

8. Selecting a Business Name
Other Considerations
Selecting a Business Name
Business Identification Numbers
Licenses and Permits
Taxes
Accounting System

9. Structural Forms of Business
Sole Proprietorship
Partnership
S Corporation
C Corporation
LLC – Limited Liability Co

10. Useful Web Sites Internal Revenue Service - www.irs.gov
MA Department of Revenue -
Inc.com - Where to start and grow your business.
Entreworld - A World of Resources for Entrepreneurs
Official Website of the State of MA -
Official Website of the State of RI -
All Business - Champions of Small Business
MA Assoc. of Community Development Corporations -
U.S. Small Business Administration (SBA) -
Analyze You Business -
e Podunk -
Money Smart for Small Business -

11. Why Write a Business Plan?
A plan gives you a path to follow
Planning forces you to examine all aspects of your business
Planning is ESSENTIAL to raising capital
Your plan is a management tool
Your plan is a communications tool

12. Business Plan Format Neatness Counts! Use Simple Language
Keep Your Points Concise
Make Use of Tables and/or Graphs

13. Business Plan Format (con’t.)
Effective Formatting includes:
Headings
Paragraphs
Bold/Italics/Underline
Bullets

14. Business Plan Outline Mission Statement/Statement of Purpose
Table of Contents / Cover Page
Business Description
Marketing Plan
Financial Plan

15. Statement of Purpose This is the doorway to your plan.
Keep it short, but illustrate the main points.
Main Points:
State purpose/structure of your business
State purpose/amount of financing sought
State any key operational expectations

16. Business Description Type/Industry Status (e.g. start-up, existing)
Form (e.g. proprietorship, corporation)
Location/Hours of operation
Market description
Description of competition
Management/Personnel

17. Marketing vs. Sales Generates MARKETING SALES
interest
and leads.
SALES
Generates orders and accounts receivable and/or cash receipts.

18. Your Customer are the Market!
MARKETING PLAN
Your Customer are the Market!
Describe Your Customers
Industry Trends and Characteristics
List and Description of Your Competition
Description of Your Niche and Competitive Plan
Market Segmentation

19. Product – good or service
Marketing Mix
Product – good or service
Pricing – mark-up and break-even analysis
Promotion – advertising
Place – channels of distribution

20. Management and Personnel
How many employees needed?
What kind of skills required?
Experienced or trainable?
Management/People skills?

21. Financial Plan Balance Sheet Projected Income Statement – 2 years
Sources and Uses of Funds
Projected Cash Flow by Month –
1st year

22. Financial Plan (con’t.)
Historical Financial Statements of Business – 3 Years
Personal Financial Statement
IRS tax returns(personal & business) – 3 Years

23. Reminders for Completing Loan
Application
The more the person reviewing your request can know about you AND your business, the better.
Neatness and conciseness count
Be honest.

24. Loan Application (con’t.)
Emphasize your strengths and state your weaknesses.
Let the loan officer know that YOU recognize areas for improvement.
If you have questions, CALL!
Don’t submit an incomplete application.

25. Services Offered by SEED
Business Assistance
Business Support Center
Loan Programs:
Micro Loan/Mini Micro Loan
Revolving Loan Fund (RLF)
SBA 7A Packaging
SBA 504