Delta Sigma Theta Sorority, Inc.

*****Sample Workshop*****

Entrepreneurship Entrepreneurship & &

How to Start a BusinessHow to Start a BusinessPresented byPresented by

Expert’s NameExpert’s NameChapter and or Company AffilliationChapter and or Company Affilliation

Created by Gail McDonald and Francine Ross RodenQueens Alumnae Chapter

AgendaI. Definition of an

EntrepreneurII. Key Entrepreneurial

QualitiesII. How to Start a Business

1. Self – Evaluation2. Choosing the Right Business3. Getting Educated4. Legal Structures of

Businesses5. Location! Location! Location!

Agenda (cont’d)6. Start Up Capital

7. Business Plan – Write it Out!8. Record Keeping9. Pricing & Business Strategy

III. Basic TasksIV. ResourcesV. Thank You!

Ice Breaker Time!Ice Breaker Time!It’s time to get to

know you!

What is an What is an Entrepreneur?Entrepreneur?

Webster’s Dictionary Definition

“A person who organizes and directs a business

undertaking, assuming the risk for the sake of the

profit.”

This is an adequate definition, however it is not complete…

Key Entrepreneurial Qualities

1. Opportunity Seeker

2. Future Oriented

3. Committed to Being the Best

4. Market-Driven & Customer Oriented

5. Value their Employees

6. Be Realistic

7. Be Tolerant of the Tedium

8. Be Resilient

9. Be Focused and Decisive

Key Entrepreneurial Qualities

1. Motivated2. Enthusiastic3. Determined4. Persistent5. Innovative6. Well Organized7. A Good Communicator8. Able to Make Decisions9. Able to Solve Problems

The Harvard Business Review says…

“The strongest motivation for entrepreneurs is the desire to do something better or more

efficiently.”

Other common motivators include:– A drive for Achievement– A desire for Power or Wealth– A desire to fulfill a dream

The Truth is…The DESIRE to become an

entrepreneur comes naturally to a lot of people.

THE HARD PART… turning that desire into a business

enterprise that works.

IT’S NOT EASY, BUT IT CAN BE DONE!

How to Start a BusinessHow to Start a Business

Things to Consider• What do I do well enough that people

would pay for?• What do I like to do often enough that

I’ll happily do it for 10 hours a day, 5 or 6 days a week, for years on end?

• What product or service does the community lack?

• Should I do it alone, or work with a partner (s)?

• What legal structure will my business have?

• Where will my business be based?• Do I have the equipment, or will I

have to buy it?• How will I pay for the start-up costs?

1. Self - EvaluationAsk YOURSELF the following basic questions:

1. Am I completely committed to achieving my goals?

2. Do I have the ambition and persistence to achieve and grow?

3. Am I a hard worker?

4. Do I know my strengths and weaknesses?

5. Am I patient, organized, reliable, trustworthy, and able to get along well with others?

If most of your answers to those questions where YES, you’re

emotionally ready to start your business.

2. Choose the Right Business• Have an idea of what type of

business you would like to start.• Find an industry that’s appealing

to you. • Your business should fill a need

in the community. • You must be able and willing to

do this business.• You should have experience,

education, and or technical training in the type of business you would like to start.

3. Get Educated Obtain the technical training,

education, and/or licensing that you’ll need.

– Retailer- Resale License

– Home Business- City business License or Home Occupation Permit

– Make or Sell Food- Health Permit

4. Decide on a Legal Structure

When organizing a new business, you’ll need to choose the right legal structure.

3 most common choices are:– Sole Proprietorship- 1 owner

with all the risk.– Partnership- 2 or more

owners with all the risk.– Corporation- 2 or more

owners with no risk.

Sole Proprietorship1. You are the Sole Owner.2. Absolute authority over all

business decisions.3. Easiest to start, less

government regulation, subject to lower taxes. (Business income is taxed as the personal income of the owner.)

4. Unlimited Personal Liability (Legal and Financial).

Partnership1. Business of 2 or more owners

or partners.2. Partners combine talents,

ideas, and capital to form one business.

3. Usually only an oral agreement is made between two or more persons.

4. Recommended written partnership agreement.

5. General or Limited Partners. 6. Legal and financial liability

extends to partners.

Corporation1. Most complex and costly.2. Considered a legal entity.3. Stockholders make decisions

for the corporation through a Board of Directors.

4. Stockholders have limited liability.

5. Subject to double taxation; corporate and stockholders.

Limited Liability Company• A hybrid or has some

characteristics of a partnership and corporation.

• Provides limited liability for owners, not unlimited personal liability.

• Protects individual owners from legal and financial liability if the business fails or looses a lawsuit.

5. Find a Location• Does the immediate surrounding

area need your product or service?

• How accessible is the potential location to public transportation?

• Does parking and security meet the needs of your customers?

• Does the site project the image you want?

• Can you pay the rent or mortgage and still make a profit?

6. Acquire Start-Up CapitalWhere am I going to get

the money to start my business?

–Yourself and/or your Partners

–Relatives and Friends–Line of Credit–Commercial Loan–Private Investors

7. Write a Business PlanA written business plan will be the most important work you do in preparing to open your new

business.

A Business Plan will help you to:– Direct Your Start Up and Growth– Obtain Loans or Attract Investors– Focus the direction of your company– Guide basic decisions and running of

the business

Business Plan FormatLenders and Investors expect your

business plan to follow a format.

General Headings are:

– Title Page– Executive Summary– Table of Contents– The Business– Marketing– Financial Analysis– Operations– Supporting Documents

8. Establish a Record Keeping System

1. Entrepreneurs must keep accurate financial records in order for their new business to succeed.

2. Glance at how your business is doing from time to time.

3. Good Record Keeping includes:1. Opening Business Checking &

Savings Account2. Keeping track of a General Ledger3. Payroll Records4. Accounts Receivable and

Accounts Payable

9. Pricing StrategyHow much is the customer willing to

pay? 1. Setting the right price is an Art, and part

Science. 2. Steps to follow in order to ensure the

price is right include: • How much did it cost you to make

the product or offer the service?• Learn what your competitors charge • Identify any added value

Breakeven Point: The point where what you take in equals what you’ve spent.

Revenue = Expenses This is the point where you start making

money.

10. Get Help to Make your Business Better

1. Hire an Attorney: new business owners need someone to give them legal advice, read contracts, article of incorporations etc.

2. Find a Good Accountant: someone to review your financial records and prepare company taxes etc…

3. Other Professional Services: you may need assistance making brochures, designing a logo, servicing computers, printing marketing materials etc…

Other Basic Tasks• Order Business Cards and

Stationery.• Develop a Marketing Plan.• Buy necessary Business

Insurance.• File Tax ID # with the IRS.• Obtain a Trademark for your

Company Name and Logo.• Reserve Web Site Domain

Name.

Believe & You Will Succeed!

Having your own business can be exciting, challenging, fun,

and profitable.

If you really want to start a business, and you believe you

can make it work, go ahead and go for it.

Believe & You Will Succeed!

Bibliography

• Norman, Jan. What No One Ever Tells You About Starting Your Own Business, 2nd Ed. Dearborn Trade Publishing, 2004.

• Harper, Stephen C. Starting Your Own Business, 2nd Ed. McGraw-Hill, 2003.

Internet Resources• Federal Government: (http://www.business.gov)• U.S. Small Business Association:

(http://www.sba.gov)• U.S. Patent and Trademark Office:

(www.uspto.org)• Small Business Association’s Business Plan:

(http://www.sbaonline.sba.gov/starting/businessplan.html)

• Business Filings Inc. (www.businessfilings .com). Free guide to incorporating.

• National Association of Small Business Investment Companies (www.nasbic.com). Funding information.

• SBA SCORE program: http://www.scorenyc.org. Counseling for small businesses.

• Center for Women’s Business Research: (http:///www.nfwbo.org)

• Entrepreneur Magazine: (http://www.entrepreneur.com)

Suggested Reading

• Black Enterprise’s Guide to Starting a New Business.

• S.B.A. Small Business Resource Guide.

• Choosing to be a Servant Leader by Jack Kahl.