This is the outline for the power point presentation.
Do You Want to Make A Million Dollars?
Project Overview
Starting a Small Business
Wishes In Stitches Embroidery
Margaret Jannuzzi
Definition of a Small Business
According to Small Business Administration
Independent businesses-less than 500 employees.
Represent 99.7% of US businesses
Pays 45% of total US private payrolls
Approximately 25.8 million SB in US
60%-80% new jobs each year
Copies vs. Original
Steal the designers work-fashion, purses, shoes, music, DVDs, software
Drains US economy $250 billion and 750,000 jobs a year.
Counterfeiters don’t pay taxes, licensing fees and affects funding for public
services.
Limits donations by large cooporations
Linked to terrorist groups by Interpol
Poor quality damages original designer
http://www.gobiii.com/
Business Plan
Research, Research, Research
What are you selling?
What will it cost?
Where will you get the money?
How soon will you make money?
What training do you need? Cost?
Who are your target customers?
Who can help you find information?
Business Name
What will your image be?
Identify business in the name.
Where will your listing be in the alphabet?
Consider how name looks in print and embroidery.
Confusingly similar will bring trouble.
Know Your Competition
How is your business different?
–What sets you apart?
Is there room for your business in the area?
Is there a demand for your business?
Location, Location, Location
License and permit requirements
Home Based Business
–Traffic, noise, visibility, zoning
Commercial locations: buy or lease
Everything in the lease must be negotiated
Trade Name Registration
Secretary of State – (602) 542-6187 or (800) 458-5842 www.azsos.gov $10 and will
conduct name search
Arizona Corporation Commission- (602)542-3135 or (800)345-5619
www.cc.state.az.us
County Recorder – Costs $10-no search for existing names is made
Federal: Commissioner of Patents & Trademarks –(800)786-9199 www.uspto.gov
$325
Using a Domain Name (Web)
Registration and Searches
www.register.com – search and register under extensions: .com .net .org .vs .tv
www.domainmonger.com – register for 2 years at $30
www.networksolutions.com
Business Licenses
Most cities require either a sales tax license or business license
Unincorporated city – county business permit
May need two if business is in one and sell in another
Licenses and Other Regulatory Information
TPT – Transaction Privilege Tax License
https://www.aztaxes.gov/
–Must have for wholesale purchases
–Joint collection program
Regulatory Licenses www.revenue.state.az.us/609/licensingguide.htm
–food, cosmetics, radio station
Special Licenses and Permits
–liquor, taxicabs, etc.
Marketing
How are you going to sell the business?
Do you know your 1 minute commercial?
What are your sales goals?
Do you have the confidence, knowledge and personality to sell your business?
Advertising Business
Business Cards
E-mail Reminders or Updates
Personal Contact-Cold Calls
Community Groups
Word of Mouth
Web Pages and Search Engines
Ads in newspapers, flyers, television, radio
Product Line
Memory Blankets-partnerships with high school booster clubs
Sports Teams Uniforms
T-Shirts,Polo Shirts, Woven Shirts
Bags, Sports Packs, Totes
Hats, Prom Sashes
Aprons, Tablecloths, Napkins, Chef
Coats, Jackets
Insurance
You are responsible for your business promises
“Key Person” insurance
Damage to your property or equipment
Damage to a customer
Vehicle accidents – delivery, personal
Customer Service
Why Customers Leave
9% Competitive Reasons
14% Product Dissatisfaction
68% Find another company because of ATTITUDE OF INDIFFERENCE toward
customer by some employees
Each employee must understand your customer service standards.
INTEGRITY
KEEPING YOUR WORD
BE FAIR, REASONABLE AND UP FRONT DURING EACH STEP
KEEP IN THE TIME FRAME
KEEP IN THE PRICE RANGE
NOTIFY CUSTOMER OF ANY CHANGES AS SOON AS POSSIBLE
Type of Business Structure
Sole Proprietorship
Partnership
Limited Liability Company
“S” Corporation
“C” Corporation
Sole Proprietorship-Wishes In Stitches Embroidery
Most common
In Arizona husband and wife share debts
Business income and debts part of personal property
Easy to form
Low start up cost
You make all the decisions
Partnerships-Joe & Alex’ Barbershop
Two or more partners
Each is responsible for debts
Should have written agreement about business
Fairly easy to form
Hard to protect personal belongings
Limited Liability Corporation-Marden Electric
•Most popular
•Separates business from personal belongings
•Unlimited number of owners
•Easy to transfer ownership
•Requires formal written bylaws
•Need to register with AZ Corporation Commission
“S” Corporation
Protects owners from losing personal belongings
Limited to 75 or less shareholders
All shareholders must be US residents but not citizens
File with AZ Corporation Commission
Requires formal bylaws and incorporation
“C” Corporation-Disney, GM, Microchip
Most complex type
Stockholders are owners of corporation
Advantages & Disadvantages
–Limited liability for stockholders
–Transfer of ownership though sale of stock
–Unlimited life of the business
–Relatively expensive to organize
–Double taxes-both corp. and individual income