NUTS AND BOLTS OF STARTING A BUSINESS UTSA

NUTS AND BOLTS OF STARTING A BUSINESS UTSA SBDC ©

SBDC: WHO WE ARE Largest network for management and technical assistance program serving the U. S. small business community Confidential, pre-paid business advising Low cost Workshops Resources to help grow your business Part of Institute for Economic Development at UTSA A Partnership Program with the U. S. Small Business Administration UTSA SBDC ©

DO YOU HAVE WHAT IT TAKES? The reason they don’t survive: • Inadequate Planning • No business plan, financial plan or marketing plan • Poor location • Insufficient Funding/Capital • Poor Management * Statistics provided by Small Business Administration UTSA SBDC ©

KEYS TO SMALL BUSINESS SUCCESS • • Have a passion for your business or enjoy what you do Be different and better than the rest Have ideas and answers that others don’t You must have self-confidence Timing must be right Willingness to invest savings Competitiveness Business & financial plan! UTSA SBDC ©

EVALUATING YOUR IDEA • What are you really selling? • What is the benefit to your customers? • How is your product or service different? • Why will people buy from you? • What is your management/technical experience with your product or service? UTSA SBDC ©

TARGET MARKET CUSTOMERS • Describe your target customer in detail. • What are their likes and dislikes as well as there demographics? Who are you selling to? • General public • Government • Businesses UTSA SBDC ©

YOUR PRODUCTS/SERVICES • How will you price your product/service? • What about your business promotion? How do you plan on reaching your target market? • • Social media Website Promotional activities Etc. UTSA SBDC ©

YOUR COMPETITION WHO ARE YOUR MOST IMPORTANT COMPETITORS? UTSA SBDC ©

SWOT ANALYSIS • Strengths • Sustainable competitive advantages • Adequate financial resources • Weaknesses • Poor service/delivery • Poor reliability • Opportunities • Capitalize on competitor’s weakness • Threats • Regulatory and future competitors UTSA SBDC ©

WHAT ARE YOUR START-UP COSTS? • How much will it cost you to start your business? • • • Furniture & Equipment Wages and Benefits Working Capital Advertising & Promotion Licenses, Permits, etc. UTSA SBDC ©

SOURCES AND USES Simply put: How much money do you need and for what? Sources show much you need and where it will come from (either a loan or your own injection) and the uses show where the money is being used. Owner Injection + Loan = Total Project Cost UTSA SBDC ©

OWNER EQUITY AND INVESTMENT Most financial institutions will require a minimum that you produce of 30% of your total estimated cash needed for start-up costs. This is referred to as your Owner Equity/Investment in the business. Consider if… • I have this money or access to it. • I have some but not all of the money required. • I have no money to invest in this business. UTSA SBDC ©

BUSINESS FINANCING • Sources of money to start your business • Personal Savings • Lenders • SBA Guaranteed Loans • Investor(s) • Credit Cards • Family and Friends • Retirement Account • Partners • Micro Lenders – Accion, People Fund, etc. UTSA SBDC ©

HOW DOES YOUR PERSONAL CREDIT RATE? • Reviewed within the past year? • • Excellent Good Average Poor • Credit Score? • www. annualcreditreport. com • Report sources • San Antonio Retail Merchants Assoc. (SARMA) – (local) • Internet – three primary agencies (national) • Experian, Equifax & Transunion UTSA SBDC ©

BUSINESS LEGAL STRUCTURE & NAME Choosing the Legal Structure of Your Business • Sole Proprietorship • Partnership • Corporation • Limited Liability Company UTSA SBDC ©

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? UTSA SBDC ©

YOUR BUSINESS PROFESSIONAL TEAM • • • SBDC Advisor Attorney Financial Institution Lender Insurance Agent CPA, Accountant or Bookkeeper UTSA SBDC ©

DEVELOPING A BUSINESS PLAN • • • Executive Summary Business Description Product & Service Definition Manufacturing/Operations Market Analysis Sales Strategy Management Plan Financial Analysis Supporting Documents UTSA SBDC ©

UTSA SBDC We’re here for you! No Cost, Confidential Business Advising Cost-Friendly Workshops UTSA SBDC 501 W. Cesar E. Chavez Blvd. San Antonio, TX 78207 (210) 458 -2460 www. sasbdc. org facebook. com/UTSASBDC twitter. com/utsasbdc Pinterest. com/utsasbdc UTSA SBDC ©