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Business  Planning      Business  Planning  should  not  be  a   “Some0me”  thing….   it  must  be  an  “All  the  Time”  thing!   Robert  Piechota   718-­‐797-­‐0187      

                 NYS  Small  Business  Development  Center   City  College  of  Technology    


Key  Guiding  Principles  for   Business   Generally  Speaking:  

•  You  want  to  take  in  more  $$$  than  you  pay   out!   •  You  want  to  keep  more  of  the  money  you   make,  a5er  all  expenses,  than  you  are  paying   out.   •  “Measure  twice,  cut  once!”-­‐  Before  you   commit,  you  must  know  your  costs!  


Why  do  Small  Business  Fail?   •  •  •  •  •  •  •  • 

Lack  of  experience     Insufficient  capital  (money)     Poor  locaGon     Poor  inventory  management     Over-­‐investment  in  fixed  assets     Poor  credit  arrangements     Personal  use  of  business  funds     Unexpected  growth       POOR  PLANNING!!!   Always  be  thinking…  “What  if???”    


EnPPes!  

Expense  

•  CorporaGon  (LLC/S-­‐ Corp/C-­‐Corp)   •  Partnership   •  Sole  Proprietorship    

Complexity  


EnPPes!   •  CorporaGon  (LLC/S-­‐ Corp/C-­‐Corp)   •  Partnership   •  Sole  Proprietorship  

ProtecGon  

Start  Time  


Research  and  Development  Phase   •  There  is  an  array  of  Federal,  State,  and  Local   regulaGons  that  your  business  must  comply   with.   •  There  are  variaGons  by  industry/trade/service.   •   Be  sure  to  thoroughly  invesGgate  the   regulaGons  that  might  affect  your  “space”      

 

 

 Brooklyn.NYSSBDC.org  

hWp://www.dos.ny.gov/licensing/   hWp://www.nyc.gov/portal/site/businessexpress    


The  subsequent  list  is  a  guideline,   but  is  by  no  means  exhausPve   1.    Business  Licenses   2.    Business  Permits   3.    Tax  InformaGon   4.    Employer  IdenGficaGon  Number  (EIN)   5.    Worker’s  CompensaGon/  Disability  Benefits         6.    ImmigraGon  Act   7.    Industrial  RegulaGons   8.    Zoning  &  Variances    


Business  Licenses  

    City  &  Towns       •  According  to  state  law,  each  city  and  township   may  require  permits-­‐  check  your  local   municipality  for  license  requirements.   •  Contact  County  Clerk  in  each  town  where  you   will  be  conducGng  business    


Business  Permits   “GORR”     Governor’s  Office  of  Regulatory  Reform   P.O.  Box  2107   Albany  NY  12220-­‐0107   Phone  518-­‐474-­‐8275  Or  800-­‐342-­‐3462   hWp:/www.nys-­‐permits.org  


Why  do  you  need  a  Business   Plan  ?    

•  Road  map   •  Help  to  an/cipate  change  and   adjustments     •  More  chances  of  success  


Value  of  the  Business     Plan:     Entrepreneur  

Define     •  Business   •  Strategies  

  Part  of  the  financing       See  structure        

Investor  or   Lender  

Viability    


Business  Plan   How  Long?  

  •  Investors  said  60%  of  business  plans  are   too  long    

*From  Growthink's  survey  of  investors  


Business  Plan   3  secPons     1.  2.  3. 

NarraGve   Financial   projecGons   Exhibits  


Typical  Expenses   •  •  •  •  •  •  •  •  •  • 

Rent   Phone   UGliGes   Furniture  &  Fixtures   Insurance   Payroll  (This  includes  your  compensa/on!)   Computers/So5ware/Website   Build  out  cost   Working  Capitol   Start  up  costs  v.  Opera/onal  costs.    Difference???  


(You  will  have  to  be  able  to  produce  this…3  years  out)   Jan    

Feb    

Mar  

Apr…  

Sales  

5,000  

4,000  

6,500  

5,700  

Cost  of  Goods   Sold:  

1,000  

1,000  

1,400  

1,600  

Gross  Profit:  

4,000  

3,000  

5100  

4,100  

Salary  

3,000  

3,000  

1,000  

1,000  

Taxes  

1000  

1000  

200  

200  

Rent  

1000  

1000  

1000  

1000  

Net.  Inc  

(1000)  

(2000)  

2900  

1900  

Total  Op   Expenses:  

You  must  idenPfy  all  of  these  expenses  and  costs!!!  


Six  “C’s”  of  Credit  

Is  the  borrower  a  good  risk?   Character-­‐  Is  borrower  a  solid  ciGzen?   Capability  (to  manage  your  business)   Capacity-­‐  Can  the  business  turn  a  profit?   Collateral/Guarantees   Context  of  Business-­‐  What  is  the  state  of  the   Market?    State  of  the  industry?   •  Condi0on  or  terms  of  loans-­‐How  much  are   you  asking  for?    How  long  do  you  need  it?     What  are  you  buying?   •  •  •  •  • 


Why  might  you  need  capital?   Reasons  for  seeking  capital:  

 

•  Startup  Costs-­‐  Lease/Equipment/Inventory   •  Expansion  Costs-­‐Purchase  of  real  estate/ capital  equipment   •  Addi0onal  Opera0ng  Capital-­‐Seasonal  hires/ inventory  


Where  might  you  find  capital?   •  Banks  –  Check  with  your  own  bank  first…if   they  know  you,  you  might  get  preferred   terms.   •  Credit  Unions-­‐  RelaGonships  count!   Membership  usually  a  must.   •  Micro  Lenders-­‐  Small  amounts  of  capital   •  Alterna0ve  sources   •  Investors-­‐  SomeGmes  this  involves  trading   equity  in  your  business  for  capital  


Small  Business  AdministraPon   (SBA)  Programs    SBA.GOV     (No  way  to  see  this  clearly  on  a  PowerPoint…go  to  the  web  site!)  


“Decisions,  Decisions!”  


The  Center  for  Career  and  Professional  Development  offers  services  to  alumni  for   life.     We  offer  one-­‐on-­‐one  counseling,  a  free  online  job  board  (alumni.praWpro.com),     blog  arGcles  (ccpd.praW.edu),  and  workshops  and  events  to  help  uncover  the  resources  and     inspiraGon  you  need  to  apply  your  skills  in  the  world.  

    Our  upcoming  events  that  focus  on  being  your  own  boss  include:     Freelancing:    Part  III  –  The  Business  of  Freelancing       Monday  03/31    |    6:00  PM    |    18th  Street  Studios    |    hWps://140311-­‐ccpd-­‐cl.eventbrite.com   Panelists  will  discuss  what  to  look  out  for  as  a  freelancer,  including  health  and  financial  benefits  and  keeping  on  top  of   taxes.  Panelists  include  accountants,     HR  reps,  business  owners  and  professional  organizaGons  representaGves.   Startup  Session    –     Social  Enterprise   Friday  04/04    |  12:30  pm    |  CCPD  Office,  East  Building,  Rm.  001,  Brooklyn    |  hWps://140404-­‐ccpd-­‐cl.eventbrite.com     This  Startup  Session  will  cover  the  basics  of  social  enterprise.    Learn  more  about  how  to  develop  a  business  with  a  triple   boWom  line.       Startup  Session    –     Funding    Friday  05/02  |    12:30  pm  |    CCPD  Office,  East  Building,  Rm.  001,  Brooklyn  |    hWps://140502-­‐ccpd-­‐cl.eventbrite.com   This  Startup  Session  will  cover  the  basics  of  funding  including  crowdfunding,  venture  capital,  and  angel  investments.             Startup  Sessions  are  for  students  and  alumni  interested  in  starGng  their  own  companies  now  or  in  the  future.         For  more  informaGon  about  Startup  Sessions  or  to  join  the  startup  email  list  (where  we  share  all  of  the  session   presentaGons  and  upcoming  events)  email  btucker@praW.edu.  


Rob Piechota Webinar 2014