Becoming an Entrepreneur

Tim McLellanPartner, B2BCFO®

March 1, 2012

www.b2bcfo.com

My Background

• 25 years in “Corporate America”• Last corporate job was closing down a

$300 million 1,100 employee business unit.

• Thought – “There must be a better way!”

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How Do I Make Money?

• Serve as Part Time CFO for several businesses.• Work with companies that have outgrown their in

house bookkeeping / accounting capabilities.• Help businesses increase profitability, monitor

performance, bank loans, fund future growth plans

• Responsible for finding clients, negotiating and setting fees.

• Part of a nationwide network of 200 partners, 8 in Atlanta.

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Being your own boss - Pros

• You can make all the decisions• Flexible schedule• Clear Goals and Objectives• Work Harder = Increase Income• If it doesn’t work, fix it.• Tax deductable expenses• Is it really more risky?

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Being your own boss - Cons

• Start up costs• No regular paycheck• No paid vacation or holidays• Health insurance may be a challenge• It’s lonely at the top

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Franchise or Not?

• Any business can be a franchise– Restaurant – Financial Services– Home Repair– Auto Repair– Business Consulting

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Franchise or Not?

• Franchise– Initial fee plus ongoing monthly payments– Buying a system – process, training,

advertising, market research– Territory restrictions– Business restrictions– Due Diligence – call current franchisees

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Franchise or Not?

• No Franchise– Initial cash outlay is lower– No operating procedures– No territory restrictions– No business restrictions– You will make mistakes that cost you time and

money

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Buy Existing Business

• You purchase customer list, business methods, patents / trademarks, employees, business assets

• Why is business being sold?– Retirement, etc – new buyer will pay a premium– Fire Sale – new buyer will get a “deal”, but may not be able to

turn business around.

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Financing your Business

• Personal Savings• Retirement Accounts – borrow from 401(k), invest 401(k)• Home Equity (?)• Friends and family• Angel Investors• Venture Capital• After Start Up:

– Accounts Receivable Factoring, Credit Card Advances– Bank Loan secured by assets of business.

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Results!

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2006 2007 2008 2009 2010 2011 2012P

Revenue by Year

Selling / Networking

• Chambers of Commerce• Rotary, Kiwanis, etc• Church• Other parents• Linked In• Facebook, Twitter, etc

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$15 Resource

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