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Service Corps Of Retired Executives“Counselors to America’s Small Business”
Since 1964
WelcomeBudding Entrepreneurs
Thinking of Could I… Should I…Own a Business?
Be YourOwn Boss…Own A Business
WWW.SCORE.ORGCall 1-800/634-0245www.score513.orgwww.score513.orgCall 215 885 3027Call 215 885 3027
Agenda
• Introductions
• What/Who Is SCORE
• Live Your Dream
• Business Basics
• Points to Ponder
WWW.SCORE.ORGCall 1-800/634-0245www.score513.orgwww.score513.orgCall 215 885 3027Call 215 885 3027
National Organization US Small Business Administration 13,000 experienced volunteer professionals in 600 areas on
expertise in 400 chapters Eastern PA District - 500 volunteers in 16 chapters with 40 locations Annually extend more than 1.3 million hours of business advice,
mentoring and workshop sessions 31,000 new jobs (1 in every 7 clients) 68,500 new businesses Annual Business counseling, seminars & workshops
600,000 clients helped150,000 engaged in E-mail counseling 6,600 workshops & seminars held (190,000 in attendance)
9 million business owners helped - since 1964
SCORE
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2010 Small Business Economic Impact
SCORE clients started a total of 58,637* new businesses in 2010
SCORE clients created 71,449 jobs at a cost of $98 per job
SCORE clients returned $548 to the federal treasury in taxes for every federal dollar appropriated to SCORE
SCORE clients saved 11,045 jobs
91% of SCORE’s “In Business” clients (those already in business in 2009) remained in business in 2010
* 2 or more employees
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Who we are
Montgomery County Chapter
Jenkintown * Telford
Lansdale * Valley Forge
King of Prussia * Blue Bell
Counselors to
Americas Small Business
Since 1964
SCORE Business counselors are volunteers who have achieved business success and want to help you succeed in your business.
Dedicated volunteers Offer Confidential advice for your business Experienced business owners and executives
Experts who’ve seen both economic highs & lows
Pros with expertise in hundreds of disciplines
SCORE
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Our Mission…“is to offer our clients the
Professional Guidance and Mentorshipneeded to
Start, Enhance and MaximizeTheir Business Success
from the Idea to the IPO”
SCORE Membershipwww.score513.orgwww.score513.orgCall 215 885 3027Call 215 885 3027
Live Your Dream | Grow Your Business
WWW.SCORE.ORGCall 1-800/634-0245
Montgomery County Chapter
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SCORE
FREE and CONFIDENTIALCompanies in operation and Start-ups
Scheduled business counseling sessions at convenient locations:
Chapter Office: Jenkintown, PA Satellite Locations: Montgomery County Community College, Blue Bell PennSuburban (NorthPenn) Chamber of Commerce, Lansdale
Upper Merion Township Library, King of PrussiaSBA District Offices, Valley ForgeIndian Valley Chamber of Commerce, Telford
WWW.SCORE.ORGCall 1-800/634-0245www.score513.orgwww.score513.orgCall 215 885 3027Call 215 885 3027
SCORE
Face-to-face, telephone, e-mail and “on-location” counseling of 40 our members
Advisory Board - like a board of directors
Business mentoring - from Idea to IPO
Matched Guidance: Specialized Professionals & Contacts- bank & insurance referrals, reviewing business & strategic plans, cash flow, & budget analysis, market research, taxes & business structure recommendations etc.
Marketing, Accounting & Finance, Real Estate, Insurance, Manufacturing, Advertising, Retail, Distribution, Technology, Mergers & Acquisitions, Franchising, eCommerce, Import & Export, Finance, Succession Planning, Legal
Conduct & Coordinate seminars & workshops
Chapter Business Services
WWW.SCORE.ORGCall 1-800/634-0245
Agenda
• Introductions
• What/Who Is SCORE
• Live Your Dream
• Business Basics
• Points to Ponder
WWW.SCORE.ORGCall 1-800/634-0245www.score513.orgwww.score513.orgCall 215 885 3027Call 215 885 3027
Q: Why is owning a business important to you?
A: Small business represents success
on your own terms.
• Be your own boss.• Bring a new idea to life.• Achieve your lifelong dream.• Create financial independence.• Turn your hobby into a profitable business.
Live Your Dream
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Have You…– Wished you had a shoulder to lean on from someone who knows business from the inside out?
– Thought starting or expanding a business is overwhelming?
– Perceived business as a gamble?
Live Your Dream
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Live Your Dream
SCORE Can Help You…
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and take the mystery out of starting and expanding your own business
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Q: How can a SCORE business counselor help?
A: SCORE counselors give real-world advice that applies to your business.
• Practical advice• Business planning assistance• Problem-solving for business challenges• Growth strategies for business opportunities• Confidential sounding board for your ideas
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Live Your Dream
www.score513.orgwww.score513.orgCall 215 885 3027Call 215 885 3027
Live Your Dream
WWW.SCORE.ORGCall 1-800/634-0245
Here’s What to Expect
• a confidential counseling session with two (2) SCORE volunteer counselors who have the business experience you seek to address your questions (typically one (1) hour)
• an assignment to help you think you through your business challenge or opportunity
• a follow-up appointment to be set at your first counseling session
• follow-up from your SCORE counselor, checking in on your progress and offering additional assistance
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• We begin with YOUR NEEDS.– Help you flesh out your ideas– Help you put together a realistic business
plan– Help you create marketing strategies– Help you manage cash flow.
We listen. We question. We advise.
Here’s What to Expect
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“I want to buy a restaurant. How can I finance it?”
“What kinds of registrations will I need to go into business?”
“I’ve been an independent contractor for years. What are my personal risks, liabilities & benefits of incorporating?”
“Will the SBA lend me $250,000 to start my business?”
“My sales are declining. What can I do to get more customers?”
“My business is growing and now I need to hire someone to help. What do I have to do?”
“How do I market my business on the internet?”
Typical questions and issues
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Ways of Ownership
– Buying an Existing Business
– Franchise Investment
– Start-up from Scratch
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WWW.SCORE.ORGCall 1-800/634-0245
Buying Existing Business
• Advantages– QUICKEST
– LEAST RISK
– CUSTOMER BASE
• Disadvantages– INTEGRITY of
PURCHASE INFORMATION
– POTENTIAL for OVERPAYING
– LACK of CONTINUED SUPPORT from SELLER
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Buying a Franchise
• Advantages– ESTABLISHED / PROVEN
TOTAL CONCEPT
– HIGH SUCCESS RATE
– LESS EXPERIENCE NECESSARY
– TRAINING & GUIDANCE PROVIDED
– ON-GOING SUPPORT (e.g.):• market research• advertising• new product development
• Disadvantages– HIGH INITIAL COST
(VARIES GREATLY)
– ON-GOING FEES & ROYALTIES
– LIMITED SCOPE / CREATIVITY
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Start-Up from Scratch
• Advantages– BROAD OPTIONS
– FEW RESTRICTIONS
– GREATEST OPPORTUNITY FOR INNOVATIONS
– BEST OPPORTUNITY FOR MAKING MONEY
• Disadvantages– MOST EFFORT
REQUIRED BY FAR
– FINANCING USUALLY MORE DIFFICULT
– HIGHEST FAILURE RATE
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WWW.SCORE.ORGCall 1-800/634-0245
Agenda
• Introductions
• What/Who Is SCORE
• Live Your Dream
• Business Basics
• Points to Ponder
WWW.SCORE.ORGCall 1-800/634-0245www.score513.orgwww.score513.orgCall 215 885 3027Call 215 885 3027
Business Planning 101
• Test Your Idea• Protect Your Idea
– Organization, Insurance, Regulations• Create a Business Plan
– Marketing/Selling– Financial Estimates
• Obtain Funding• Launch
SO…
• Thinking of Owning Your Own Business !?
“Points to Ponder”
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SMALL BUSINESS FACTS
• More than 27.2 million small businesses in America.
• 640,000 new businesses annually• 99.7% of all employers are small businesses.
• Half the private workforce employed by small businesses.
• Small business is important to you and your communities.
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Is Entrepreneurship For You?“SELF EVALUATION”
• Are you a self-starter and a leader?• How well do you get along with a variety of personalities?• How good are you at making decisions?• Do you have the stamina to run a business (commit long
hours)?• How well do you plan & organize?• Is your drive strong enough to maintain motivation -
patient but assertive?• How will the business affect your family – support and
encouragement?• Are you willing to take risks, able to learn from your mistakes &
accept all responsibility?• Are you innovative, resourceful & intuitive?
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Owners Wear Many Hats. . .
• Leader• Plan• Make Decisions• Solve Problems• Marketing/Advertising• Understand Finances• Personnel
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Do You Have theBelly to be an Entrepreneur?
• Passion• Energy• Drive• Leadership• Commitment
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Think Through Your Business Model
• a well-thought-out concept or idea that will form the basis of the business
• a clear assessment of the size of the market for the product or service
• and a comprehensive study of existing or potential competitors
Consider three big basics:
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IS THE REWARD WORTH THE RISK?
ASK ALL THE IMPORTANT QUESTIONS
1) HOW MUCH CAN I EARN WORKING FOR SOMEONE ELSE?
2) WILL MY BUSINESS PAY ME MORE?
3) IS THE DIFFERENCE ENOUGH TO JUSTIFY THE REWARD TO BE IN BUSINESS FOR MYSELF?
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What Would You Do?FOR
YOURSELF
AN EMPLOYEE
BUSINESS REVENUE $75000 n/a
BUSINESS COSTS
(Expenses)
$40000 0
ANNUAL
SALARY / PROFIT
$35000 $30000
HOURS/WEEK 60 40
WEEKS/YEAR 52 50
HOURLY RATE $11/HOUR $15/HR(20% Pay Cut)(20% Pay Cut)
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CRITICAL CRITICAL Planning QUESTIONS
• IS YOUR IDEA FEASIBLE AS A BUSINESS?• IS IDEA BASED ENTIRELY ON
PRODUCT/SERVICE?• WHO ARE YOUR CUSTOMERS -
WHAT ARE THEIR NEEDS?• WHO ARE YOUR COMPETITORS –
WHAT DO THEY OFFER?• HOW BIG IS YOUR MARKET?• CAN YOU FIND A NICHE FOR SUCCESS?
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Build the Business Plan Three Major Questions
• What are the 3 to 5 things that are the Critical Success Factors ("Keys to Success") in your type of business?
• What are the major goals (objectives) you are going to achieve over the next 12 to 18 months?
• What are the strategies you are going to follow to achieve those goals?
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Why Most Businesses FAIL
“THE 10 MOST COMMON MISTAKES”
• INADEQUATE EXPERIENCE, COMMITMENT, LEADERSHIP
• TOO LITTLE CAPITAL EXPENSE CONTROL• FAILURE TO TEST CONCEPT - “No Market”• UNDERESTIMATING TIME TO BUILD MARKET• UNDERESTIMATING THE COMPETITION• NOT EXPECTING THE UNEXPECTED PLANNING• UNDERPRICING, EXTENDING CREDIT TOO FREELY• POOR RECORD KEEPING ORGANIZATION• NARROW TARGET MARKET, POOR LOCATION• EXPANDING TOO RAPIDLY- EQUIPMENT, INVENTORY• IGNORING THE INTERNET & BRANDING
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Seven Perils of Business Ownership
• 1. Time Mismanagement• 2. Organizational Skills • 3. Focus (or rather “Lack of”) • 4. Fear of Failure• 5. Lack of Marketing• 6. Not Staying on Top of Your Game• 7. Forgetting to Have Fun
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Business Ownership
also means RISKS. . .
• 10% truly successful
• 40% operate marginally
• 50% fail
• 25% fail during the first year!!!
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On the Upside
• You get to be your own boss; to work at your time and pace
• All “Your Efforts Benefit You” rather than someone else
• Earnings Growth is limited ONLY by Your Desire and Ingenuity
• Running a business provides endless variety, challenge and opportunities to … “Learn” while “You Earn”
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FactorsFactorsThat Contribute To SuccessA Focused Business Plan (road map)Hard Work (all areas)
Make a Total CommitmentPrepare MentallySell Yourself
Quality Products and ServicesDedication To Customer Service
Be Single-Minded in Seeking CustomersSEEK GOOD ADVICE
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Business OwnershipBusiness Ownership
Provides REWARDS. . .
– Substantial Income
– Financial Security
– Independence
– Recognition
– Satisfaction
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Six Steps to Get “Slightly Famous”
• Targeting the Best ProspectsSpeaking EngagementsConferences
• Developing Unique Market Niche
• Positioning Your Business as Best SolutionProvide training
• Maintaining Your VisibilityContinuous messageNews release, press (your
solutions current situation)
• Enhancing Your CredibilityIndustry expert
• Establishing Your Brand & Reputation– Branding & Brand identity – Strike emotional chord -
“bring “soul” in Marketing– Personalize the business
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What’s Hot
• Latest Business Trends– Luxury Items– Home Improvement– Business geared towards
Children– Security (business & personal)
• Hot Markets– Middle Aged Women
• Making more money• Family Decisions & Shopping
– Single Markets• 40% adult population
– Sleep Deprived– Food– Overweight
• Hot Businesses– Health Care Technology– Investment / Financial– Online Learning– Online Gaming– Pet Accessories– “Bankruptcy Doctors”
• Saving companies– Medi-spas
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Failure to have a formal business plan
Start a business with partners and associates with no formal written business agreements
Insufficient financial support
Failure to consider competition
Too much reliance on do-it-yourself legal, accounting and marketing.
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Business Start up
Mistakes to Avoid
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No Experience
False illusions as to effort required
Wrong location
Start a business where there is little demand
A dislike of Marketing/Sales
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Business Start up
Mistakes to Avoid (cont.)
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Remember…
There is only a limited amount of money There is only a limited amount of money available for business transactions.available for business transactions.
So… for you to earn some of it, you will So… for you to earn some of it, you will have to take it away from someone have to take it away from someone else.else.
That “someone else” is your competitor.
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The Bottom LineThe Bottom Line
• “Failing to Plan isPlanning to Fail”
Never, never…Never, never…ForgetForget
The CompetitionThe Competitionwww.score513.orgwww.score513.orgCall 215 885 3027Call 215 885 3027
ScoreMake
Your First Source of BUSINESS ADVICE And… Your BestBusiness Decision
“There’s No Business Like Your Business”
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Thank you for listening
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