VETERAN’S BOOT CAMP
Veterans Assistance and Services Program (VASP)
South-West Texas Border Small Business Development Center Network
UTSA-SBDC Contracting Resource Center
The VASP Program’s position within
The UTSA Institute of Economic Development (IED):
•
The Veteran's Assistance
Program is just one facet of the
many services offered through
the SBDC Contracting Resource
Center. To find out more about:
− Bidmatch
− Supplier/Vendor Network
− Employer Services/Human
Resources
•
The SBDC Contracting Resource
Center is one of nine programs of
the South West Texas Border
SBDC Network.
•
The VASP and SWTX Border
SBDC Network are a part of the
UTSA Institute for Economic
Development. Other Programs:
− Center for Community and
Business Research
− Center for Economic
Development
− San Antonio Minority Business
Enterprise Center
− SBDC National Information
Clearinghouse
− SBDC San Antonio
− SBDC International Trade Center
− Southwest Trade Adjustment
Assistance Center
− Rural Business Program
Introduction of VASP Services:
•
•
The Veterans Assistance and
Services Program (VASP) is here to
support the men and women of
the U.S. Armed Services, National
Guard and Reserves in their
pursuit of the "American Dream"
of entrepreneurship.
VASP is sponsored by the SouthWest Texas Border SBDC Network
and funded by a grant from the
U.S. Small Business Administration
to provide a wide range of
resources and referrals. We
provide a one-stop point of
contact for veterans and military
personnel who are nascent
entrepreneurs or owners of small
business concerns.
VASP services include:
•
Self-Assessment
•
On-line counseling
•
Distance learning
•
Web-based assessments
•
Government contracting
assistance
•
Business planning and start-up
assistance
•
Assistance with preparation to
obtain bank loans and financing
VASP Website: http://vasp.txsbdc.org/
Are you Ready
To Start a Business?
Popular Misconceptions
• All that’s really needed to start a business is a good idea.
• You have more personal freedom; you can take more
vacations and make your own schedule
• There are lots of grants for me to start a small business (FREE
$$$)
More Popular Misconceptions
I don’t need my own
money to start a business.
I can get rich quick.
Failure Rate
Over 80% of new businesses
fail within the first five years;
approximately half of them
don’t make it through the
first year.*
Two main reasons cited:
•Inadequate planning
•No business plan,
financial plan or
marketing plan
•Poor location
Keys to Small Business Success
•
Have a passion for your business or enjoy what you do
•
Being able to effectively market your business
•
Be different and better than the rest
•
Have ideas and answers others don’t
•
Self-Confidence
•
Timing
•
Willingness to invest savings
•
Competitiveness
•
Business & financial plan !!!
Evaluating Your Business Idea
What you are selling?
Benefit to your customers?
How is your product
or service different?
Why will people buy
from you?
What is your mgmt/tech exp.
with product/service?
Potential Customers
Which category best represents your
primary group of potential customers?
• General public
• Government
• Businesses
• Specific Industry
Demographics
Select the criteria below that best represents the
demographics of your customer. If selling to
businesses, which category or categories best
represent your primary customers?
•Construction
•Services
•Wholesale Trade
•Retail Trade
•Other
Demographics
If selling to the general public, profile your customer
by:
Customer Age
Race/Ethnicity
Household Income
Geographic Location
Education Level
Your Products/Services
Which category best describes the sales area
for your product/service?
• Sold locally
• Area of town
• Sold Nationally and Internationally
Business Promotion
How do you plan to promote your business to
potential customers?
• Fitting the target market
• Promotional activities
• Other
Refer to pg. 4 in EYBI
The Competition
Describe your five most important competitors:
1.
2.
3.
4.
5.
Refer to pg. 5 in EYBI
SWOT Analysis
• Strengths (Internal)
– Sustainable Competitive Advantages
– Adequate financial resources
• Weaknesses
– poor service/delivery
– poor reliability
• Opportunities
– Capitalize on competitor’s weaknesses
• Threats
– Regulatory & future competitors
Estimate your start-up costs
Description
Land & Bldg.
License & Permits
Inventory &
Equipment
Working Capital
Total
Items already
purchased
Items still
needed before
start-up
Total
Annual Revenue
What do you expect your annual
Revenue(Sales) to be in the first year?
• How many times in a 12-month period
will the average customer return to
purchase something?
• How much will the average customer
spend on each visit to your business?
Business Financing
• Sources of money to start your business
− Personal Savings
− Bank Loans
− SBA Guaranteed Loans
− Investor(s)
− Credit Cards
− Family and Friends
− Retirement Account
− Partners
− Micro Lenders – Accion, CDLF, STBF. etc.
− Grants
• www.sba.gov/expanding/grants
• www.cfda.gov
• www.tsl.state.tx.us/trail/grantsearch.html
Business Organization Types
Legal Structures
Characteristics
Formation Requirements
21
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?
Sole Proprietorship
A sole proprietorship is a business owned and
operated by one person for profit.
Sole Proprietorship
Characteristics
• Easiest form of business to set up and operate
• Profits are taxed only once
• Unlimited liabilities
• Business ends with death of owner
• Easy to liquidate
Do You Have Employees?
Sole proprietors WITH employees must
complete IRS form SS4 to get your FEIN (Federal
Employer Identification Number)
1-866-816-2065
Partnership
A partnership is any two or more individuals who
contribute money, labor, and skill to a business
and who share in its profits, losses, and
management.
Partnership
Characteristics
• Easy to set up and operate
• Profits are taxed only once
• Unlimited legal liability
• Partnership terminates upon death or withdrawal of
partner,
• Easy to liquidate
Formation of Partnership
Easy To Set Up and Operate
• No formal process required
• Obtain Employer Identification Number
• Obtain all necessary federal, state, and local licenses and
permits
• Register Assumed Name Certificate
• Partnership Agreement
− (optional, but highly recommended)
Assumed Name (DBA)
Sole Proprietors and Partnerships only:
• Register assumed name (DBA) at county clerks office at
the county court house
• Fill out form, have notarized, file, get certified copy
• It is recommended that you have several names in mind
when you apply
Corporation
A corporation is
formed under state
and federal law.
Legally, it is treated as
a taxable entity,
distinct from the
individual
shareholders who own
it.
Corporation Types
• C Corporations
− Taxed as separate entity
− Potential for double taxation
• S Corporation
− Allows for pass-through taxation on gains or losses
− Limits
• Maximum of 100 shareholder
• All US Citizens
• All agree on Sub S status
Corporations
Characteristics
• The most complex form of business to set up and
operate.
• Profits may be subject to double taxation
• Limited legal liability
• Business continues after death of owner(s)
• Difficult and expensive to liquidate
Formation of a Corporation
Most Complex Form of Business
to Set Up and Operate
• File Articles of Incorporation with the Secretary
of State
• Pay filing and license fees
• Prepare and adopt bylaws
Formation of a Corporation
• Obtain corporate minute book, corporate seal, stock
certificates and other desired supplies
• Follow corporate formalities
− Hold scheduled shareholder meetings
− Maintain Minute Book up-to-date
Limited Liability Company
“A business structure that is a hybrid of a
partnership and a corporation. Its owners are
shielded from personal liability and all profits and
losses pass directly to the owners without taxation
of the entity itself.”
Limited Liability Company
Characteristics
• Moderately easy to set up and operate
− (Some formalities required)
• Passed through taxation
• Limited legal liability
• Business may or may not terminate upon death or
withdrawal of member, depending upon operating
agreement
• Moderately easy to liquidate
Formation of LLC
Some Formalities Required
• Acquire all necessary local, state, and federal
licenses and permits
• File articles of organization with the Secretary of State
• Pay filing fees ($300)
• Prepare and adopt operating agreement
• File all necessary reports with the Secretary of State
Taxes and Responsibilities
City and County
• Property Taxes
• Permits
State
• Sales & Use Tax
• Permits
• Unemployment Insurance Tax
• Workers Compensation Insurance
• Franchise Tax
Federal
• Payroll taxes
• Income taxes
• FICA
Local Resources & Requirements
Economic Development Dept.
100 W. Houston 19th Floor
San Antonio, TX 78205
• Business Licenses
• Building Inspections
• Bexar County Tax Office
• Health Department
• Information Center
• Zoning
• Certificate of Occupancy
State Resources & Requirements
• Texas Workforce Commission
− Personnel Policies & Handbook
− Drug Free Workplace
− Employee New Hire Reporting
• State Comptroller
− State Sales Tax
• Secretary of State
− Licenses and Permits
Federal Resources & Requirements
• Internal Revenue Service
− Circular E – Publication 15
− Employee vs. Independent Contractor
− Office in the Home
• OSHA
• Equal Employment Opportunity
Commission
• Employee vs. Independent Contractor
The Risk:
Regardless of what anyone
else says, how much do YOU
want it?
Can you afford to work for
yourself?
Your Financial Snapshot
•
•
•
•
Income versus Expenses
Net (positive or negative) Cash Flow
Net Worth (=Assets – Liabilities)
What personal assets can I use as
additional collateral?
Developing a Business Plan
• Executive Summary
• Introduction
• Product & Service Definition
• Manufacturing/Operations
• Market Analysis
• Sales Strategy
• Management Plan
• Financial Analysis
• Supporting Documents
Business Professional Team
•SBDC Business Advisor
•Attorney
•Banker
•Insurance Agent
•CPA, Accountant or Bookkeeper
Action Steps
• Evaluate your business idea
• Prepare a Business Plan
− Attend SBDC Bus. Plan workshop
• Work with SBDC advisor
− Review business plan
− Review financial plan
− Assist with loan forms/documents
• Register with appropriate agencies
New Start-Up Checklist:
Double Click each heading
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http://vasp.txsbdc.org/
For Assistance call:
AARON C. SAMS
SENIOR BUSINESS DEVELOPMENT COUNSELOR
PHONE: 210-458-2948
EMAIL: AARON.SAMS@UTSA.EDU
Visit our website: http://vasp.txsbdc.org/
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Veteran’s Boot Camp!