1. SEED Corporation Business Start-Up Fundamentals Entrepreneurial Workshop I

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

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

4. SEED Corporation WHAT BANKS LOOK FOR Cash Flow Credit Collateral Contribution (or capacity) Character (industry / references) Condition

5. SEED Corporation 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. SEED Corporation Business Assistance Areas Business Assistance Areas  Marketing  Advertising  Sales  Tax Knowledge  Insurance

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

8. SEED Corporation  Selecting a Business Name  Business Identification Numbers  Licenses and Permits  Taxes  Accounting System OTHER CONSIDERATIONS

9. SEED Corporation 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 - 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

11. SEED Corporation 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. SEED Corporation BUSINESS PLAN FORMAT  Neatness Counts!  Use Simple Language  Keep Your Points Concise  Make Use of Tables and/or Graphs

13. SEED Corporation Effective Formatting includes:  Headings  Paragraphs  Bold/Italics/Underline  Bullets BUSINESS PLAN FORMAT (con’t.)

14. SEED Corporation BUSINESS PLAN OUTLINE A. Mission Statement/Statement of Purpose B. Table of Contents / Cover Page C. Business Description D. Marketing Plan E. Financial Plan

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

16. SEED Corporation BUSINESS DESCRIPTION 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

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

18. SEED Corporation MARKET PLAN  Describe Your Customers  Industry Trends and Characteristics  List and Description of Your Competition  Description of Your Niche and Competitive Plan  Market Segmentation YOUR CUSTOMERS ARE THE MARKET!

19. SEED Corporation Product – goods or services Pricing – mark-up and break even analysis Promotion – advertising Place – channels of distribution MARKETING MIX

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

21. SEED Corporation Balance Sheet Projected Income Statement – 2 years Sources and Uses of Funds Projected Cash Flow by Month – 1 st year FINANCIAL PLAN

22. SEED Corporation FINANCIAL PLAN (con’t.) Historical Financial Statements of Business – 3 yrs. Personal Financial Statement IRS tax returns (personal & business) – 3 yrs.

23. SEED Corporation 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. SEED Corporation Loan Application (cont.)  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. SEED Corporation 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