Simple Steps in Starting a New Business · Can your business make money for you? - Pricing and test marketing • How long can you run the business before it begins to turn a profit?

WWW.memphis.score.org

Simple Steps in Starting a New Business

A Workshop by SCORE Memphis“Counselors to Americas

Small Business”

www.memphis.score.org

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What Is SCORE?• Organization - a volunteer organization

sponsored by the U.S. Small Business Administration. 384 chapters, 50 states

• Mission - “Promote economic growth of America” (Act of Congress}

• Purpose - Help small businesses solve operating problems and become better managed - to help them to succeed

• SCORE counseling - services are free

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• Introduction• Finance• Marketing• Business Plan Outline• Workshop Summary

Workshop Contents

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Are you REALLY ready to start your own business?

• Mentally• Emotionally• Financially• And, with the FULL Support

of Family and Friends

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• Make money• Have fun• Be your own boss• Prestige of owning your own firm• Make the best of downsizing

Why Go Into Business?

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Why Small Businesses Fail➔ Inadequate front-end planning – no business

plan, feasibility study or cash flow projections➔ Insufficient capital for startup and backup➔ Inexperienced management➔Wrong location, low traffic, no expansion area➔ Inventory mismanagement➔Too much capital in fixed assets

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• Fully understand your business:- Your competitive advantage- Your customer base

• Can your business make money for you? - Pricing and test marketing

• How long can you run the business before it begins to turn a profit?

• Develop a business plan (SCORE can help)• Establish legal structure and location• Consider all applicable legal, insurance and

regulatory requirements

Steps in Starting A Business

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Do not quit your current job until you get your feet wet in

your business!!!

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• Accountant• Lawyer• Insurance Agent• Banker• SCORE

Key Resources You Need:

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Q and A

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Business Organizations & Structures

❑Sole Proprietorship❑Partnership❑Corporation❑Limited Liability Company

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• Sole Proprietorship – Easy to start. Less capital and startup

costs. Simplified record keeping.– But owner has total liability. Hard to raise

capital. Continuity problems.

• Partnership– Two heads are better than one. Some tax

differences. Less costly to form than Corp.– But unlimited liability, divided authority,

Tax complications. Partner problems.

Business Organization Types - I

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• Corporations. They are “legal entities”– Advantages may include limited liability,

easier to raise capital, transferable ownership, easier to maintain continuity

– Disadvantages include cost to organize, regulations, record keeping, public records, restrictive charters, multiple disciplines

– Sub-chapter “S” has unique advantages

• Limited Liability CompaniesA corporation - partnership hybrid

Business Organizations - II

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Startup Checklist

• Choose a name for your company• Register with Shelby County Clerk • Tennessee Department of Revenue• Internal Revenue Service (Acquire an EIN:

Employer Identification Number)• Check with TN Department of Employment

Security

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Startup Checklist (Con’t.)• Contact TN Department of Labor for

Workman’s Compensation regulations• Contact TN Secretary of State for State

Tax reporting requirements• Contact Shelby County Court Clerk’s

Office for Business License• Restaurant businesses will require

contacting federal and state health regulations

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SCORE Templates For Planning https://memphis.score.org/resources/business-planning-financial-statements-template-gallery

• Business Planning Templates• Finance Templates• Marketing and Sales Templates• Management Templates

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https://memphis.score.org/resources/business-plannin

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https://memphis.score.org/resources/business-planning-financial-statements-template-gallery

https://memphis.score.org/resources/business-planning-financial-statements-template-gallery


Business Owner’s Tool Kit Useful suite of tools for start up businesses at following web site:http://www.bizfilings.com/toolkit/index.aspx•Starting Up•Get Running•Marketing•Office and H.R.•Finance•Tax Center

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http://www.bizfilings.com/toolkit/index.aspx


Q and A

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PLAN AHEAD

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Business Plan

A written document with the description, structure, potential and viability of a new business.

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Why do you Need a Business Plan?

❖ So you don’t Fail!❖ So you think through all aspects of your

business BEFORE investing more time and money in it

❖ So you know your Cash Flow will work out❖ So you can develop Competitive Strategies❖ Establish credibility❖ Get financing❖ Recruit key personnel and support

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Business Plans include:• Table of Contents• Executive Summary • Description of The Company and Business • Details of Products and/or Services Offered• Operations and Manufacturing Plans• Marketing, Advertising & Promotional Plans• Management and Personnel Section• Financial Forecasts and cash flow analysis• Appendices - other support documents,

including drawings, contracts, sales or other literature, etc.

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Business Card Contents*Name of Business*Your name*Your position*Logo (if you have one)*Business Address (not personal)*Telephone Numbers (office, mobile, fax)*Email Address*Website*Brief Identification of Product/Service Offered*Optional - Certifications, Awards, Slogan, etc.

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These Business Aspects Cannot be Ove

*Effective Business Planning*Establishing Key Relationships*Active Networking*Ethical Business Practices*Exceed Customer Expectations

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Review Of Materials• Why go into business?• Steps in starting a Business• Key resources needed • Business Organization Types• Startup checklist• SCORE Templates for planning• Business owner’s toolkit• Introduction to Business Planning

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Q and A

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Documents

Simple Steps in Starting a New Business · Can your business make money for you? - Pricing and test marketing • How long can you run the business before it begins to turn a profit?