1. Business Start-Up Fundamentals Entrepreneurial Workshop I 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. What banks look for when assessing a loan request How to complete a loan application The Reality of Obtaining Financing

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

5. 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? Lifestyle Assessment

6. Marketing Advertising Sales Tax Knowledge Insurance Business Assistance Areas

7. Business Finances Presentation Skills Communication Skills Legal Aspects Banking Services Business Assistance Areas (cont.)

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

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

10. Internal Revenue Service - www.irs.gov MA Department of Revenue - www.dor.state.ma.us Inc.com - Where to start and grow your business. www.inc.com Entreworld - A World of Resources for Entrepreneurs www.eventuring.org Official Website of the State of MA - www.mass.gov Official Website of the State of RI - www.ri.gov All Business - Champions of Small Business www.allbusiness.com MA Assoc. of Community Development Corporations - www.macdc.org U.S. Small Business Administration (SBA) - www.sba.gov e Podunk - www.epodunk.com Useful Web Sites

11. 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 Why Write a Business Plan?

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

13. Effective Formatting includes: Headings Paragraphs Bold/Italics/Underline Bullets Business Plan Format (cont.)

14. A. Mission Statement/Statement of Purpose B. Table of Contents / Cover Page C. Business Description D. Marketing Plan E. Financial Plan Business Plan Outline

15. 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 Statement of Purpose

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

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

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

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

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

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

22. Historical Financial Statements of Business – 3 Years Personal Financial Statement IRS tax returns(personal & business) – 3 Years Financial Plan (cont.)

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

24. Emphasize your strengths and state your weaknesses. Let the loan officer know that YOU recognize areas for improvement. If you have questions, CALL! Dont submit an incomplete application. Loan Application (cont.)

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