South-West Texas Border Small Business Development Center Network

UTSA-SBDC Contracting Resource Center

VETERAN’S BOOT CAMP

Veterans Assistance and Services Program (VASP)

The VASP Program’s position within The UTSA Institute of Economic Development (IED):

• The Veteran's Assistance Program is just one facet of the many services offered through the SBDC Contracting Resource Center.  To find out more about:− Bidmatch − Supplier/Vendor Network − Employer Services/Human

Resources

• The SBDC Contracting Resource Center is one of nine programs of the South West Texas Border SBDC Network.

• The VASP and SWTX Border SBDC Network are a part of the UTSA Institute for Economic Development. Other Programs:− Center for Community and

Business Research− Center for Economic

Development− San Antonio Minority Business

Enterprise Center− SBDC National Information

Clearinghouse− SBDC San Antonio− SBDC International Trade Center− Southwest Trade Adjustment

Assistance Center− Rural Business Program

Introduction of VASP Services:• The Veterans Assistance and

Services Program (VASP) is here to support the men and women of the U.S. Armed Services, National Guard and Reserves in their pursuit of the "American Dream" of entrepreneurship.

• VASP is sponsored by the South-West Texas Border SBDC Network and funded by a grant from the U.S. Small Business Administration to provide a wide range of resources and referrals.  We provide a one-stop point of contact for veterans and military personnel who are nascent entrepreneurs or owners of small business concerns.

VASP services include:

• Self-Assessment

• On-line counseling

• Distance learning

• Web-based assessments

• Government contracting assistance

• Business planning and start-up assistance

• Assistance with preparation to obtain bank loans and financing

VASP Website: http://vasp.txsbdc.org/

Are you ReadyTo Start a Business?

Popular Misconceptions

• All that’s really needed to start a business is a good idea.

• You have more personal freedom; you can take more vacations and make your own schedule

• There are lots of grants for me to start a small business (FREE $$$)

More Popular Misconceptions

I can get rich quick.

I don’t need my own money to start a business.

Failure Rate

Over 80% of new businesses

fail within the first five years;

approximately half of them

don’t make it through the

first year.*

Two main reasons cited:

•Inadequate planning•No business plan, financial plan or marketing plan

•Poor location

Keys to Small Business Success

• Have a passion for your business or enjoy what you do

• Being able to effectively market your business

• Be different and better than the rest

• Have ideas and answers others don’t

• Self-Confidence

• Timing

• Willingness to invest savings

• Competitiveness

• Business & financial plan !!!

What you are selling?

Benefit to your customers?

How is your product

or service different?

Evaluating Your Business Idea

Why will people buyfrom you?What is your mgmt/tech exp.with product/service?

Which category best represents your primary group of potential customers?

• General public

• Government

• Businesses

• Specific Industry

Potential Customers

Select the criteria below that best represents the demographics of your customer. If selling to businesses, which category or categories best represent your primary customers?

Demographics

•Construction•Services•Wholesale Trade•Retail Trade•Other

If selling to the general public, profile your customer by:

Customer Age

Race/Ethnicity

Household Income

Geographic Location

Education Level

Demographics

Which category best describes the sales area for your product/service?

• Sold locally

• Area of town

• Sold Nationally and Internationally

Your Products/Services

How do you plan to promote your business to potential customers?

• Fitting the target market

• Promotional activities

• Other

Business Promotion

Refer to pg. 4 in EYBI

Describe your five most important competitors:

1.

2.

3.

4.

5.

The Competition

Refer to pg. 5 in EYBI

SWOT Analysis• Strengths (Internal)

– Sustainable Competitive Advantages – Adequate financial resources

• Weaknesses– poor service/delivery– poor reliability

• Opportunities– Capitalize on competitor’s weaknesses

• Threats– Regulatory & future competitors

Estimate your start-up costs

Description Items already

purchased

Items still needed before

start-up

Total

Land & Bldg.

License & Permits

Inventory & Equipment

Working Capital

Total

What do you expect your annual Revenue(Sales) to be in the first year?

• How many times in a 12-month period will the average customer return to purchase something?

• How much will the average customer spend on each visit to your business?

Annual Revenue

Business Financing

• Sources of money to start your business− Personal Savings− Bank Loans− SBA Guaranteed Loans− Investor(s)− Credit Cards− Family and Friends − Retirement Account− Partners− Micro Lenders – Accion, CDLF, STBF. etc.− Grants

• www.sba.gov/expanding/grants• www.cfda.gov• www.tsl.state.tx.us/trail/grantsearch.html

21

Business Organization Types

Legal Structures

Characteristics

Formation Requirements

The Legal Structure of Your Business

Questions You Should Ask

• How easy is it to set up and operate?

• What are the tax advantages and disadvantages?

• What are your potential legal liabilities?

• What happens to the business if you should die?

• How easy will it be to liquidate the business?

Sole Proprietorship

A sole proprietorship is a business owned and operated by one person for profit.

Sole Proprietorship

Characteristics

• Easiest form of business to set up and operate

• Profits are taxed only once

• Unlimited liabilities

• Business ends with death of owner

• Easy to liquidate

Do You Have Employees?

Sole proprietors WITH employees must complete IRS form SS4 to get your FEIN (Federal Employer Identification Number)

1-866-816-2065

Partnership

A partnership is any two or more individuals who contribute money, labor, and skill to a business and who share in its profits, losses, and management.

Characteristics

• Easy to set up and operate

• Profits are taxed only once

• Unlimited legal liability

• Partnership terminates upon death or withdrawal of partner,

• Easy to liquidate

Partnership

Formation of Partnership

Easy To Set Up and Operate• No formal process required

• Obtain Employer Identification Number

• Obtain all necessary federal, state, and local licenses and permits

• Register Assumed Name Certificate

• Partnership Agreement

− (optional, but highly recommended)

Assumed Name (DBA)

• Register assumed name (DBA) at county clerks office at the county court house

• Fill out form, have notarized, file, get certified copy

• It is recommended that you have several names in mind when you apply

Sole Proprietors and Partnerships only:

CorporationA corporation is formed under state and federal law. Legally, it is treated as a taxable entity, distinct from the individual shareholders who own it.

Corporation Types• C Corporations

− Taxed as separate entity− Potential for double taxation

• S Corporation− Allows for pass-through taxation on gains or

losses− Limits

• Maximum of 100 shareholder• All US Citizens• All agree on Sub S status

Characteristics

• The most complex form of business to set up and operate.

• Profits may be subject to double taxation

• Limited legal liability

• Business continues after death of owner(s)

• Difficult and expensive to liquidate

Corporations

Formation of a Corporation

Most Complex Form of Business

to Set Up and Operate

• File Articles of Incorporation with the Secretary of State

• Pay filing and license fees

• Prepare and adopt bylaws

• Obtain corporate minute book, corporate seal, stock certificates and other desired supplies

• Follow corporate formalities

− Hold scheduled shareholder meetings

− Maintain Minute Book up-to-date

Formation of a Corporation

Limited Liability Company

“A business structure that is a hybrid of a partnership and a corporation. Its owners are shielded from personal liability and all profits and losses pass directly to the owners without taxation of the entity itself.”

Characteristics• Moderately easy to set up and operate

− (Some formalities required)

• Passed through taxation

• Limited legal liability

• Business may or may not terminate upon death or withdrawal of member, depending upon operating agreement

• Moderately easy to liquidate

Limited Liability Company

Formation of LLC

Some Formalities Required

• Acquire all necessary local, state, and federal licenses and permits

• File articles of organization with the Secretary of State

• Pay filing fees ($300)• Prepare and adopt operating agreement• File all necessary reports with the Secretary of

State

City and County• Property Taxes• Permits

State• Sales & Use Tax• Permits• Unemployment Insurance Tax• Workers Compensation Insurance• Franchise Tax

Federal• Payroll taxes• Income taxes• FICA

Taxes and Responsibilities

Economic Development Dept.100 W. Houston 19th FloorSan Antonio, TX 78205

• Business Licenses

• Building Inspections

• Bexar County Tax Office

• Health Department

• Information Center

• Zoning

• Certificate of Occupancy

Local Resources & Requirements

State Resources & Requirements

• Texas Workforce Commission− Personnel Policies & Handbook− Drug Free Workplace− Employee New Hire Reporting

• State Comptroller− State Sales Tax

• Secretary of State − Licenses and Permits

Federal Resources & Requirements

• Internal Revenue Service

− Circular E – Publication 15

− Employee vs. Independent Contractor

− Office in the Home

• OSHA

• Equal Employment Opportunity Commission

• Employee vs. Independent Contractor

Regardless of what anyone else says, how much do YOU want it?

Can you afford to work for yourself?

The Risk:

Your Financial Snapshot

• Income versus Expenses• Net (positive or negative) Cash Flow• Net Worth (=Assets – Liabilities)• What personal assets can I use as

additional collateral?

Developing a Business Plan• Executive Summary

• Introduction

• Product & Service Definition

• Manufacturing/Operations

• Market Analysis

• Sales Strategy

• Management Plan

• Financial Analysis

• Supporting Documents

Business Professional Team

•SBDC Business Advisor•Attorney•Banker•Insurance Agent•CPA, Accountant or Bookkeeper

Action Steps

• Evaluate your business idea

• Prepare a Business Plan− Attend SBDC Bus. Plan workshop

• Work with SBDC advisor− Review business plan− Review financial plan− Assist with loan forms/documents

• Register with appropriate agencies

New Start-Up Checklist: Double Click each heading

CRC - CONTRACTOR CHECKLIST_Page_1.jpg

CRC - CONTRACTOR CHECKLIST_Page_2.jpg

CRC - CONTRACTOR CHECKLIST_Page_3.jpg

http://vasp.txsbdc.org/

For Assistance call:

AARON C. SAMS

SENIOR BUSINESS DEVELOPMENT COUNSELOR

PHONE: 210-458-2948

EMAIL: AARON.SAMS@UTSA.EDU

Visit our website: http://vasp.txsbdc.org/

Thank you for viewing our Veteran’s Boot Camp!