1. Starting & Operating A New Small Business
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David Ambrosini

2. Bus 188
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David Ambrosini

3. 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

4. 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

5. 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

6. 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

7. 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
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David Ambrosini

8. 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

9. 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
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David Ambrosini

10. 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

11. Education & Small Business Ownership
Adults
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David Ambrosini

12. Education and Small Business Ownership
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David Ambrosini

13. Hours/Week New Business Owners Work
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David Ambrosini

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

15. 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

16. 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

17. 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

18. 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

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

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

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

22. Target Audience Team Members - expected contributions Management
Regulators
Community
Stockholders
Investors/Partners
Suppliers
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David Ambrosini

23. 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

24. 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
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David Ambrosini

25. Outline of a Business Plan (version 1)
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David Ambrosini

26. Business Plan Outline (version 2)
Vacation…
Travel...
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David Ambrosini

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

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

29. 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

30. 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