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3.03 Starting a Business

Objective 3.03 Understand the

procedures and requirements forstarting a business.

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Entrepreneurship

The process of

starting and

running onesown business.

This involves aconsiderable

amount of risk

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Starting a Business

Develop a Business Plan

Acquire Finances

Meet Legal Requirements

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Develop a Business Plan

A detailed proposal

that describes a new

business

Presented to

potential investors

and lenders

Most business

plans are 30 pages

or more.

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Purposes of a business plan

To obtain financingBanks and potential lenders

require a business plan

Helps organize and

analyzedata critical to the

new business

To provide a start-up

proposalProvides an outlineto follow

when starting the business

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The components of a business plan

Executive summary: brief one- totwo-page description of the key pointsof

each section of the business plan

Product/service plan: presentsProduct or servicebeing offered

Unique featuresof product or service

Management team plan:Qualifications of the entrepreneur

Qualifications of any partnerswho may

be involved in the business venture

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The components of a business plan

Industry/market analysisanalyzes the:

Customers

CompetitionIndustry

Demographic, geographic, and

economic data

Operational plan: includes allprocesses involved in producingand/or

deliveringthe product or service to the

customer

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The components of a business plan

Growth plan:The growthplan presents plans for

future expansionof thebusiness

Financial plan:includesfinancial statementsthat will

help forecast the future

financial health of the

business

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Finance the Business

Identify family and friends

who are potential investors.

Are there other businesses

that would be probable

investors? Seek Employees

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Finance the Business

Contact financial agenciesfor

loans, grants and assistance:

Small Business Administration

Banks

Credit Unions

Insurance companies

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The Legal Environment

Permits or licenses

Building Permits

Cosmetology license

First aid certification

Contracts

Between partnersBetween owner and clients

Zoning laws

Taxes

Additional legal requirements for some businesses:

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The Legal Environment

(Protect Your Business)

Trademarks: Protect

business name or logo

Patents: Protect invention

of products or processes fromtheft

Copyright: Protect creative

works:Literary

Musical

Dramatic

Artistic work