So You REALLY Want to
Start Your OWN Business?
palmbeach.score.org
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What We’ll Talk About Today
• Do You Have What It Takes?
• Why…Why…Why?
• Reality or Myth?
• Business Planning
• What Will It Take?
• Your Next Steps?
• How Can SCORE Help You?
palmbeach.score.org

Why…Why…Why?
• I want to get rich
• I’m bored with my job
• I’ll get to do what I love
• I can be my own boss
• I have an amazing idea
• “Everyone” tells me I should
• I will get more “free” time
• I’ll show ‘em
• I can do it!
How important is this to you?
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From a Job or Hobby to a Business
• Your Job
– Support of others
– Regular paycheck
– Product experience
– Defined responsibilities
– May love it / may not
• Your Hobby
– Product knowledge
– Done in spare time
– No revenue
– It’s not work
– Love doing it palmbeach.score.org

You’re Going to Miss …
• Credibility and clout
• Contacts and camaraderie
• Coffee and gossip
• Tech support
• Vacation and sick time
• Health insurance palmbeach.score.org

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Reality or Myth #1?
• If I start a small business, I’ll be able to write off all of my expenses.
• Mostly Reality!
– You can deduct all legitimate business expenses – even from before you start your business palmbeach.score.org

Reality or Myth #2?
• I don’t have to register my business if it’s really small.
• Myth!
– You need to register your business.
• State, county, city
• Other agencies, depending upon business type palmbeach.score.org

Registration References
• United States
– http://www.irs.gov/Businesses/Small-Businesses-&-Self-
Employed/Apply-for-an-Employer-Identification-Number-(EIN)-
Online
• State of Florida
– www.sunbiz.org
• Florida Department of Revenue – sales tax
– http://dor.myflorida.com/dor/
• Business Tax Receipts
– Application Requirement Guide & Application https://www.pbctax.com/sites/default/files/pdf/PBCTC_65.pdf
– Contact your city or search online for instructions palmbeach.score.org

Reality or Myth #3?
• If I’m not selling much, it doesn’t count as a
“real” business.
• Myth!
– All businesses are “real”, except …
• If you don’t sell much for several years, the IRS may treat it like a hobby, not a business.
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Reality or Myth #4?
• I don’t have to collect and remit sales taxes if I’m selling online.
• Both Reality & Myth!
– If your business is registered in Florida
• You must collect sales tax on shipments to Florida addresses
• You likely don’t have to on shipments to other states
– Expect this to change!
palmbeach.score.org

Reality or Myth #5?
• There are all kinds of special tax breaks for home-based businesses.
• Reality!
– You can write off a portion of your home expenses – if it is used exclusively for business
– Speak with your accountant!
• Many articles describe this as an IRS audit flag.
palmbeach.score.org

Reality or Myth #6?
• There are all kinds of government grants to help start a small business.
• Myth!
– There are few government grants available.
• Difficult to get, but not impossible.
• Perhaps some for veterans & disabled veterans.
– Some private sector grants may be possible.
palmbeach.score.org

Reality or Myth #7?
• Starting a small business will let me live the lifestyle of my dreams.
• Perhaps Reality, Perhaps Myth!
– It will depend upon what the lifestyle of your dreams is.
– But owning your own business can be very rewarding financially and emotionally.
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Critical Steps to Jumpstart Your Planning
• Clearly define your business idea
• Examine your motives
• Be willing to commit to hours needed
• Have discipline
• Cope with learning & frustrations common to owning a business
• Conduct competitive analysis in your market – products, services, prices
• Be aware of outside influences
• Seek help – other businesses, professionals, vendors, agencies palmbeach.score.org

Create a Business Plan
• Executive summary
• Business description
• Market & competition
• Products and/or services offered
• Marketing & selling plan
• Management & personnel
• Financial data
– Cash flow analysis
– Balance sheets
– Income statements (P&L)
– Break-even chart
• Investment
• Appendices palmbeach.score.org

So Are You Ready?
• Do you have a product or service
• That is needed
• That people will pay for
• Again and again?
palmbeach.score.org

Guy Kawasaki Method
• Find ONE customer/client
• Make an offer they can’t refuse
• Modify elements from feedback
• Find ONE more customer
• Repeat for ten years
Easy, isn’t it?
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$$$$$$$$$$
• It’s all about cash
• Do you have it?
• How much comes in?
• How much goes out?
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The Revenue & Expense Streams …
• Revenue
– 0-90 days after the sale
– Usually overestimated
• Expenses
– 0-120 days before the sale
• Start up costs, paying vendors, selling expenses
– Usually underestimated palmbeach.score.org
You Need Money to Get Money

What Will It Take to be Successful?
• Do you have a product or service that is wanted?
• Do you have the right kind of business experience?
• Can you prepare a credible business plan?
• Can you take responsibility?
• Can you organize yourself and others?
• Are you ready to put in the long hours?
• Can you stick to it in rough times?
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What Else Will It Take?
• Do you have family support?
• Do you have enough resources & credit?
• Is your health up to it?
• Do you know your market?
• Have you done your research?
• Can you create the demand?
palmbeach.score.org

Can You Qualify for a Loan? Lenders Will Ask …
• What kind of business do you plan to start?
• Do you have the right kind of business experience?
• Is it a new or ongoing business? How long in business?
• How large a loan will you need? How will you spend it?
• Do you have savings/collateral equal to 1/3 of the loan?
• Is your credit good? Bankruptcies? Debts?
• Have you made a Business Plan complete with financial projections? If not, can you do it?
• Do you have a realistic idea of expected income vs. your personal and business expenses?
• Can you repay a loan from realistic projected earnings?
palmbeach.score.org

Possible Funding Sources – Debt Funds
• Your savings, bonds, stocks
• Cash value life insurance
• Your home equity
• Loans from family or friends
• Banks, credit unions, finance companies
• Credit cards (not a long-term plan)
• Customer prepayments
• Credit from suppliers
• Equipment leases palmbeach.score.org

Can You Qualify For…?
• SBA loans – guaranteed or direct
• Veterans Administration – G.I. loans
• Department of Commerce – Export
• Department of Energy
• Federal Housing Administration palmbeach.score.org

Possible Funding Sources – Equity Funds
• Family/friends ownership participation
• Small Business Investment Companies
• Venture capital
• Angel investors
• Limited partnerships
• Sale of stock to public or friends
• Crowdfunding palmbeach.score.org

How Much Money Will You Need?
• Start-up expenses
– Legal, accounting, training, …
• Initial capital purchases & improvements
– Computers, vehicle, build-out, …
• Ongoing monthly expenses until breakeven is reached
– Rent, utilities, salaries, benefits, …
• Personal living expenses
– If you have no other income coming in palmbeach.score.org

Do Your Research & Planning
• Business won’t succeed just because you want it to succeed
• Research your market
• Know your competition
• Understand important industry data palmbeach.score.org

Know Yourself & Be Honest with Yourself
• Compare your skills & expertise
• Know what particular capabilities made other companies profitable
• Can you duplicate/surpass?
• Unique skills or edge that you have
• Level of capitalization that you can provide
• Technical skills
• Energy & passion palmbeach.score.org

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Do You Have What It Takes?

How May We Assist You?
• Palm Beach SCORE has 45+ volunteers available for free one-on-one mentoring
– Huge diversity of experience & expertise
– Sign up at palmbeach.score.org
– In person, phone, email
• Attend other workshops that we offer
– Wide variety of topics
– Schedule & registration at palmbeach.score.org
palmbeach.score.org

So You REALLY Want to Start Your
OWN Business?
Palm Beach SCORE palmbeach.score.org
500 Australian Avenue South, Suite 115
West Palm Beach, FL 33401
Tel: (561) 833-1672
Fax: (561) 833-1470
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