1 Intro to Entrepreneurship

Of all the businesses in the U.S., 98% are considered “small”? Of all the businesses in the U.S., 98% are considered “small”?

Small businesses contribute 39% to the Gross National Product? Small businesses contribute 39% to the Gross National Product?

Small businesses provide 66% of the initial job opportunities and Small businesses provide 66% of the initial job opportunities and therefore absorb the major cost on-the job training!therefore absorb the major cost on-the job training!

Three out of every five small businesses fail within the first five Three out of every five small businesses fail within the first five years of operation? The reason: Lack of management skills.years of operation? The reason: Lack of management skills.

Break it DownBreak it Down…(Simple Like!)…(Simple Like!)

Part 1: How you plan to set the business up

Part 2: How you plan to run the business

Part 3: How you plan to manage the money

Why Write a Business Why Write a Business Plan?Plan?

1.So that you HAVE A PLAN!

1.So that you can get financing

What is Financing?What is Financing?

The money you need to start your business:

From the bankFrom a private investorFrom a grantEtc..

* Independent

* Self-Confident

* Determination & Perseverance

* Goal-Oriented

* Set High Standards for themselves

* Creative

* Able to Act Quickly

Your Own Boss!

Choose a business that interests YOU!

Can be Creative!

Can make a lot of Money!

RiskyRisky

Uncertain/ Irregular incomeUncertain/ Irregular income

Work Long HoursWork Long Hours

Can be a lot of pressure/ responsibilityCan be a lot of pressure/ responsibility

* Independent* Independent

* Self-Confident* Self-Confident

* Determination & Perseverance* Determination & Perseverance

* Goal-Oriented* Goal-Oriented

* Set High Standards for themselves* Set High Standards for themselves

* Creative* Creative

* Able to Act Quickly* Able to Act Quickly

RANK 1-5RANK 1-5

1 = low or poor 5= high or great1 = low or poor 5= high or great

^What are your ^What are your Hobbies & InterestsHobbies & Interests??

^What ^What Past ExperiencesPast Experiences do you have? do you have?

^What ^What Job AttributesJob Attributes do you have? do you have?

ChronologicalChronological

TargetedTargeted

ComboCombo

1. Find a Good, Solid Structure2. Font Choice3. Size Choice4. Formatting Options: Bold, Italics, etc..5. Have Other People Proofread6. Use Power Words7. Fill The Whole Page8. Find Resume Building Activities

Margins:Margins:Contact Info:Contact Info:

Quality Headings:Quality Headings:Phrases -- Not SentencesPhrases -- Not Sentences

G.P.A. RuleG.P.A. RuleList Most Recent 1st:List Most Recent 1st:NO Spelling Errors:NO Spelling Errors:Develop a Structure:Develop a Structure:

Never Abbrev.:Never Abbrev.:One Page Long!:One Page Long!:

Use your WHOLE Paper:Use your WHOLE Paper:Quality Objective at the Top:Quality Objective at the Top:

““References: Available upon Request” at bottom:References: Available upon Request” at bottom:

I. SUMMARY MEMORANDUMI. SUMMARY MEMORANDUMOne-page description of the project

II. INTRODUCTIONII. INTRODUCTIONType of business proposed- a brief description of the major product/service involved, sources of information (interviews and research sources), a brief description of advisors and their involvement

III. ANALYSIS OF THE BUSINESS SITUATIONIII. ANALYSIS OF THE BUSINESS SITUATION

A. Self-analysisA. Self-analysis

B. Trading area analysisB. Trading area analysis

C. Market segment analysisC. Market segment analysis

D. Analysis of potential location (s)D. Analysis of potential location (s)

IV. PLANNED OPERATION OF THE BUSINESSIV. PLANNED OPERATION OF THE BUSINESS

A. Proposed organizationA. Proposed organization

B. Proposed product/serviceB. Proposed product/service

C. Proposed marketing strategiesC. Proposed marketing strategies

V. PLANNED FINANCINGV. PLANNED FINANCING

A. Projected income and expensesA. Projected income and expenses1. Projected income statements by month for the first year’s operation 2. Projected cash flow for the first year3. Projected cash flow by month for the first year’s operation4. Projected balance sheet, end of first year5. Projected three-year plan6. Planned growth of the proposed business

B. Proposed plan to meet capital needsB. Proposed plan to meet capital needs1. Personal and internal sources2. Earnings, short-term and long-term borrowing, long-term equity3. External sources4. Short-term and long-term borrowing, long-term equity 5. Repayment plans6. Plan to repay borrowed funds

VI. CONCLUSIONVI. CONCLUSIONSpecific request for financing, summary of key points supporting the financial request

VII. BIBLIOGRAPHYVII. BIBLIOGRAPHY

Outline 3-5 main points that you can useOutline 3-5 main points that you can use

to sell yourself as an entrepreneur!to sell yourself as an entrepreneur!

A.A. ________________________________________

1.1. ______________________________________

2.2. ______________________________________

Outline 3-5 main points that you can use to sell Lakeville as a viable business community!

A. ____________________

1. ___________________

2. ___________________