How to Start at “Start-

Up”

Elizabeth Cotton

What is a Start-Up?

A partnership or organization designed to search for a repeatable and scalable business model.

Business 101 – Legal Structure of your Business

Sole Proprietorship

Limited Liability Partnership

Limited Liability Corporation

Corporation

Non-profit Corporation

Franchising

Sole Proprietorship

A type of business entity that is owned and run by one individual and in which there is no legal distinction between the owner and the business.

The owner receives all profits (subject to taxation specific to the business) and has unlimited responsibility for all losses and debts. Every asset of the business is owned by the proprietor and all debts of the business are the proprietor's.

Partnerships

A partnership is a single business where two or more people share ownership.

• General Partnerships

• Limited Liability Partnerships

• Joint Ventures

Corporation

A C corporation is an independent legal entity owned by shareholders. This means that the corporation itself, not the shareholders that own it, is held legally liable for the actions and debts the business incurs.

S Corporation

An S corporation is a eligible domestic corporation can avoid double taxation (once to the corporation and again to the shareholders) by electing to be treated as an S corporation.

What makes the S corp different from a traditional corporation (C corp) is that profits and losses can pass through to the your personal tax return.

Non-Profit Corporation

A nonprofit corporation is any legal entity which has been incorporated under the law of its jurisdiction for purposes other than making profits for its owners or shareholders.

Mutual Benefit non profit corporation

Public Benefit non profit corporation

Franchising

Franchising is the practice of using another firm's successful business model. For the franchisor, the franchise is an alternative to building 'chain stores' to distribute goods that avoids the investments and liability of a chain. The franchisor's success depends on the success of the franchisees. The franchisee is said to have a greater incentive than a direct employee because he or she has a direct stake in the business.

Starting the Business

Structure your business

Get an Employer Identification Number (EIN) Irs.gov – Form SS-4

Register with the Registrar/Recorder– Norwalk, CA

Publish the name of your business in a publication for 4 weeks

Got Insurance?

General Liability -Commercial general liability insurance, protects your business from third party claims for bodily injury, associated medical costs and damage to someone else’s property.

http://www.hiscox.com/small-business-insurance/general-liability-insurance/

Professional Liability - Professional liability insurance, also called errors and omissions insurance (E & O insurance), protects your business if you are sued for negligence, even if you haven’t made a mistake.

http://www.hiscox.com/small-business-insurance/professional-liability-insurance/

Are you certified?

Professional certifications and licenses are very important!

A designation earned by a person to assure qualification to perform a job or task

Accountants – CPA, CMA

Aviator – Commercial Pilot License

Global Logistics – NVOCC or Customs Brokers License

Real Estate Agent – Real Estate License

The Business Plan

Mission/Vision Statement

Company Summary

Goals & Objectives

Marketing

Financials

Mission Statement

The framework or context within which the company's strategies are formulated.

AARP: To enhance the quality of life for all as we age. We lead positive social change and deliver value to members through information, advocacy and service.

Company Summary

Executive Summary

Start Date

Address, Phone, Website, etc

Organization structure, President, Vice President

Board of Directors

Company Description

A description of services offered by the company

Service or Product Line

Target Audience

Market Analysis

Goals vs Objectives

Goals

The purpose toward which an endeavor is directed

Long Term

Ex. I want to fundraise 500,000 for the organization

Objectives

Something that one's efforts or actions are intended to attain or accomplish

Short Term

Ex. Each week I will contact 2 fortune 500 companies and submit a grant application

Marketing

Social Media Campaign Marketing – Facebook, Twitter, LinkedIn, Instagram, Youtube, Vimeo, Snapchat, Google Plus

Website – Wordpress – Buy a domain, Get someone to host it. Build a website!

Business Cards

Marketing (cont)

Flyers, Posters, Banners, Brochures, etc.

Press Releases & Recap Articles

Radio, Television, Newspaper

Networking – Professional Organizations, Memberships,

Financials

SAVE THOSE RECEIPTS!

Good bookkeeping is vital to a successful business!

Historical Financial Data

Forecasting

Risk Assessment

Investors and Stakeholders

Start with your family and peers

Ask your board of directors

Fundraisers

Crowd Funding – Kick Starters

Where do you find investors and stakeholders? – Networking events, conferences, trade shows

Investors and Stakeholders (cont)

Need a loan? Ask the bank!

Corporate Giving & Corporate Marketing

Politicians

Some successful “Start-Ups”

Open Table

SBE Entertainment

Khan Academy

Mixed Chicks

The Starter League

Thank You for your time!