Exploring the Possibilities of Starting a Small Business? Discover what it takes by charting your course with… Small Business Basics Training Session 1 Small Business Development Introduction Small Business Development Introduction Graduates and Self-Employment • Around 5% of graduates report they are selfemployed after graduation • This percentage is higher in subjects such as art and design (64.6%), textile designers (34.6%), and musicians (85.3%) • A recent gallop poll indicated 67% of student strongly prefer to be self-employed Small Business Development Introduction Graduates and Self-Employment • • • • • • Being your own boss Freedom from the 9-5 daily work routine Doing what you want when you want to do it Improving your standard of living Boredom with your present job Having a product or service for which your feel there is a demand Small Business Development Introduction Small Business Development Center Network • Nationwide – 1000 Centers • Statewide – 40 Centers • Terra State Community College (Erie, Ottawa, Sandusky, & Seneca Counties) Small Business Development Introduction Small Business Development Center Strategic Plan • Mission…help people get into business, stay in business, and grow their business • Vision…make small businesses more successful • Services…training and counseling SBDC Services are FREE of Charge Small Business Development Introduction Small Business Development Center Funding • Small Business Administration • Ohio Development Services Agency • Terra State Community College Small Business Development Introduction Presenter’s Background • Business Education • Small Business Ownership • Small Business Training & Counseling Small Business Development Center Presenter’s Contact Information • Bill Auxter, Director Ohio SBDC at Terra State Community College Building D, Suite D-201, Office C 419-559-2210 bauxter@terra.edu Session 2 Small Business Development Guide Small Business Development Guide Business Entities • • • • • • Ohio Secretary of State, www.sos.state.oh.us Sole Proprietorship Partnership (General or Limited) Corporation (C-Corp or S-Corp) Limited Liability Company (Partnership) Non-Profit Organization www.terra.edu/ContinuingEducation/SmallBusinessDevelopment.html Click on “Business Basics – Guide” Small Business Development Guide Name Registration • Ohio Secretary of State, www.sos.state.oh.us • Doing business as a name other than your legal name, you must register it • Fictitious Name Registration • Trade Name Registration • Corporate Name Registration www.terra.edu/ContinuingEducation/SmallBusinessDevelopment.html Click on “Business Basics – Guide” Small Business Development Guide Licensing & Permits • First Stop Business Connection, www.business.ohio.gov/starting • Menu of Business Types – Checklist of Regulations & Requirements • “Starting Your Business in Ohio” Publication www.terra.edu/ContinuingEducation/SmallBusinessDevelopment.html Click on “Business Basics – Guide” Small Business Development Guide Vendor’s License • • • • • • Ohio Department of Taxation, www.tax.ohio.gov Ohio Business Gateway County Auditor’s Office Regular Vendor’s License Transient Vendor’s License Certificate of Exemption www.terra.edu/ContinuingEducation/SmallBusinessDevelopment.html Click on “Business Basics - Guide Small Business Development Guide Tax Requirements • Federal Taxes, www.irs.gov • Ohio Taxes, www.tax.ohio.gov • Local Taxes – city, township, county, & school www.terra.edu/ContinuingEducation/SmallBusinessDevelopment.html Click on “Business Basics – Guide” Small Business Development Guide Employer Requirements • Employer Identification Number (EIN), www.irs.gov • Immigration Law, www.immigration.gov • New Hire Reporting, www.oh-newhire.com • Wages and Hour, www.com.state.oh.us • Unemployment, www.state.oh.us/odjfs • Worker’s Compensation, www.ohiobwc.com • Employee Rights, www.stat.oh.us/crc www.terra.edu/ContinuingEducation/SmallBusinessDevelopment.html Click on “Business Basics – Guide” Small Business Development Guide Professional Advisors • • • • • • • Accountant Attorney Insurance Agent Bankers/Lenders Financial Advisors Other Service Providers Mentors Small Business Development Guide Sources of Assistance • Ohio SBDC at Terra State, www.terra.edu/ContinuingEducation/SmallBu sinessDevelopment.html • Small Business Development Centers of Ohio, www.entrepreneurohio.org • Ohio Development Services Agency, www.development.ohio.gov Small Business Development Guide Sources of Assistance • Association of Small Business Development Centers, www.asbdc-us.org • Small Business Administration, www.sba.gov • Service Corps of Retired Executives (SCORE) – Toledo, www.scoretoledo.org • Local Chambers of Commerce • Local Economic Development Organizations Session 3 Small Business Development Planning Small Business Development Planning Business Plan Functions • Acts as a Feasibility Study • Tool for Obtaining Financing • Serves as a Management Tool Small Business Development Planning Business Plan Narrative • • • • • • Statement of Purpose Description of Business Marketing Plan Competition Location Organization Plan (Management and Personnel) www.terra.edu/ContinuingEducation/SmallBusinessDevelopment.html Click on “Business Basics – Bus. Plan Narrative” Small Business Development Planning Business Plan Financial Pro Forma • • • • • • Financial Requirements Amortization Schedule Pro Forma Income Statement Pro Forma Cash Flow Analysis Pro Forma Balance Sheet Industry Standard Income Data www.terra.edu/ContinuingEducation/SmallBusinessDevelopment.html Click on “Business Basics – Bus. Plan Pro Forma” Small Business Development Planning Small Business Funding • Private Funding • Public Funding • Hybrid Funding Small Business Development Planning Checklist – 1st Things 1st • Register with the Ohio Secretary of State (www.ohiosecretaryofstate.gov) • Obtain your EIN from IRS (www.irs.gov) • Open a bank account • Contact the Ohio Department of Taxation (www.tax.ohio.gov) • Report hired employees (www.ohnewhire.com) Small Business Development Planning Check-list – 1st Things 1st • Contact the Ohio Bureau of Workers’ Compensation (www.bwc.ohio.gov) • Contact the Ohio Department of Job & Family Services (www.jfs.ohio.gov) • Obtain the proper licenses and permits (www.business.ohio.gov/starting) and www.tax.ohio.gov Exploring the Possibilities of Starting a Small Business? • Questions and Answers