An Entrepreneur is someone who organizes a business venture This business introduction will provide you with the tools you need for Entrepreneurial Success.

1. Keith Miller
Entrepreneurship

2. What is an Entrepreneur?
An Entrepreneur is someone who
organizes a business venture
This business introduction will
provide you with the tools you need
for Entrepreneurial Success!

3. Business Strategy
*Goals – Vision – Mission – Planning – Measurement*
Goals (What we want to achieve):
Examples: Provide a valuable service to help the
community, make a respectable income, provide
employment, develop beneficial products, provide
client solution services, etc.
Vision (destination):
Where do I see myself and the business in…
1 year, 5 years, 10 years?

4. Business Strategy
*Goals – Vision – Mission – Planning – Measurement*
Mission (Direction or Business Model):
Statement concerning how we will meet the vision
Example Mission Statement:
"In order to realize our Vision, our Mission must be to exceed
the expectations of our customers, whom we define as
guests, partners, and fellow employees. We will accomplish
this by committing to our shared values and by achieving the
highest levels of customer satisfaction, with extraordinary
emphasis on the creation of value. In this way we will ensure
that our profit, quality and growth goals are met.“
– Westin Hotels

5. Business Strategy
*Goals – Vision – Mission – Planning – Measurement*
Planning (process and implementation):
The strategy!
Measurements (outcomes):
What we are doing – is it Working?
Continuous updating is necessary because
conditions are continuously changing

6. Main Purpose of Business
Profit Rule:
The main purpose of a business is to…
Make a Profit
There is no business without a Profit…
The bottom line of all business is to:
Create - Measure – Maximize – Sustain…
a Profit

7. Why should I start a business?
Business is Simple:
Money in (– minus) Money out = What is left over!!
Tax incentives:
Earn more, spend more, and pay fewer taxes!!
Being your own business provides more job security
(Multiple Clients) - If a client stops using your services
then you can depend on income from other clients
Working for an organization provides one client
(The Organization) - If you are laid off then you do not
have an income and need to find another company

8. What Business Plan should I have?
For Profit
For profit sends money back to (owner, investors)
Creates innovative products
Not-for-Profit (non-profit)
Spends all money on resources, salaries, etc. and
comes to a zero balance at the end of the year
Not-for-profit companies use surplus revenues to
achieve its goals rather than distributing them as
profit. Profits must be retained by the organization
for its self-preservation, expansion, or plans.

9. What is a Business Structure?
**Business Structures provide…
*Personal protection from lawsuits & business debt*
Limited Liability Companies (LLC), Limited Liability
Partnerships, and other specific types of business
organization protect their owners from business
failure by doing business under a separate legal entity
with certain legal protections
In contrast, unincorporated businesses or persons
working on their own are not similarly protected

10. Types of Business Structures
Sole Proprietorship
A Sole Proprietorship is one individual or married
couple in business alone for profit and the most
common form of business structure
This type of business is simple to form and
operate, and may enjoy greater flexibility of
management, fewer legal controls, and taxes
However, be forewarned, the business owner has
unlimited liability for all debts incurred by the
business

11. Types of Business Structures
Corporation
A Corporation is a more complex business
structure that has a separate legal personality from
its members
A Corporation has certain rights, privileges, and
liabilities beyond those of an individual
Corporations may be formed for profit or non-
profit purposes and can be privately or publically
held

12. Types of Business Structures
S Corporation
To meet S Corporation standards, a business has to
file written agreements with the state and have
losses in the tax year
S corporations do not pay any federal income
taxes. Instead, the corporation's income or losses
are divided among and passed through to its
shareholders
The shareholders must then report the income or
loss on their own individual income tax returns

13. Types of Business Structures
Non-profit Corporation
A Non-profit Corporation is a legal entity
and is typically run to further an ideal or
goal rather than in the interests of profit
 Many non-profits serve the public interest,
but some engage in private sector activities

14. Types of Business Structures
Limited Liability Company (LLC)
A Limited Liability Company (LLC) is formed
through a special written agreement that is
relatively easy to complete
LLCs are permitted to engage in any lawful, for-
profit business or activity other than banking or
insurance
Filing with your local state is necessary and the
costs are minimal in most states

15. Types of Business Structures
General Partnership
A General Partnership is owned by 2 or more
persons (usually not a married couple) who agree
to contribute money, labor, or skill to a business
Each partner shares the profits, losses, and
management of the business and each partner is
personally and equally liable for debts of the
partnership
Formal terms of the partnership are usually
contained in a written partnership agreement

16. Types of Business Structures
Limited Liability Partnership (LLP)
A Limited Liability Partnership (LLP) is similar to
a General Partnership except that normally a
partner does not have personal liability for the
negligence of another partner
This business structure is used most by
professionals, such as accountants and lawyers

17. What is a Business Tax ID?
Corporations Need a Federal Business Tax ID
An Employer Identification Number (EIN), also
known as a Federal Tax Identification Number
Used to identify a business entity and creates an
identity for the business which is essentially a
Social Security Number for a person which is
necessary to complete the process of having your
business become a separate entity

18. Risk Management
Planning, Prevention, & being Proactive
There is always a risk in everything we do and we
need to identify potential problems for protection
which is the basis for Risk Management
Where does risk come from?
Uncertainty in financial markets
Project failures (at any phase in design,
development, production, or service)
Legal liabilities: Being sued!

19. Risk Management
Planning, Prevention, & being Proactive
 Where does risk come from?
Credit risk: Unable to pay back too much Debt!
Accidents: The unexpected happens!
Natural causes and Disasters: External factors!
Focus on protection from risks by focusing on the
issue with the greatest loss and greatest
probability of occurring first and focus on the
following potential problems in order

20. How much should I Invest?
**As Little as Possible**
How do I start a business with minimal investment?
 Leveraging a bank loan to make a business profit
is low risk
Debt is only good if it is invested to make a greater
financial return
This is the concept of using other people’s money
to make money
You need a business plan to obtain a bank loan

21. What is Bad Debt?
Any money borrowed to make purchases that do
not return a profit above the interest level of the
loan
For example: Credit cards are bad debt when used
to buy goods that cannot be resold for a greater
value and which depreciate with time
Loans and Grants Search Tool
http://www.sba.gov/content/search-business-
loans-grants-and-financing

22. What is Intellectual Property?
Businesses often have important "intellectual
property" that needs protection from competitors
for the company to stay profitable. This could
require patents, copyrights, and/or trademarks.
Most businesses have names, logos and similar
branding techniques that could benefit from
trademarks.
Patents and copyrights in the United States are
largely governed by federal law
Trademarks are mostly a matter of state law

23. Retirement Investing
IRA and 401k Retirement Plans
These retirement plans are tax deductable (except
Roth IRA) meaning that the amount invested in
these financial instruments are not taxed and the
amount invested is deducted from business
income which reduces the initial tax burden and
invested money compounds (grows) over time

24. What is an IRA?
Traditional IRA – contributions are often tax-
deductible “money is deposited before tax” all
transactions and earnings within the IRA have no
tax impact, and withdrawals at retirement are
taxed as income.
Roth IRA – contributions are made with after-tax
assets, all transactions within the IRA have no tax
impact, and withdrawals are usually tax-free.
SEP IRA – a provision that allows a small business
or self-employed individual to make retirement
plan contributions into a Traditional IRA

25. What is a 401k?
A 401(k) is a type of retirement savings account
with annual contributions limited (currently to
$17,500)
Any withdrawal that is permitted before the age of
59½ is subject to an excise tax equal to 10% of the
amount distributed (on top of the ordinary income
tax that has to be paid)
Individual 401k in 2012, allows businesses with
only one full-time employee (owner) to contribute
up to $50,000 to the plan
($55,500 for those 50 and older)

26. Product Strategy
Logo: presents a memorable image of the company
Make your product unique and different
This increases perception in clients’ minds
Adds value to your goods or services
What does a Customer NEED…
Something that cost less than doing it themselves
i.e. Car Wash: Time, Energy, Soap, Water vs. $5
A Business provides something for a cost higher
than they pay which produces a profit

27. Product Strategy: Client NEEDS
Focus on clients’ Needs, Wants, and Desires…
Questions to ask when starting a business:
 What to produce?
 How to produce?
 For whom to produce?
Find the client need and provide the service
 Goal
To provide services Cheaper, Better, Faster…
than Competitors!

28. Opportunity Costs
There is always an Opportunity Cost!
What is an opportunity cost?
The opportunity you would have chosen…
You have two choices and can only choose one…
 The one not chosen is your Opportunity Cost
The cost of choosing an opportunity is not taking
advantage of the other opportunity

29. Cost Benefit Analysis
Conduct a Cost Benefit Analysis
The benefit must meet or exceed the cost to the
customer or eventually you will go out of business
Price must exceed the cost of providing the service
or you will lose profit
You need to know your cost in providing the
product or service to correctly price your product

30. Comparative Advantage
What is Comparative Advantage?
Developing and focusing on strength and trading
excess with someone who provides a stronger
service in your area of weakness which creates
greater wealth for both parties
This is the miracle of exchange and what is behind
the growth of Nations

31. Comparative Advantage
Example of Comparative Advantage
 You make Butter and Milk
You are better at producing Butter
If you dedicate all your time to only making Butter
then you will have a greater abundance of Butter
Partner with someone who produces Milk at a
faster rate and trade Butter for Milk
You will acquire more Milk and Butter than you
would have had if you produced both Milk and
Butter only by yourself

32. Be Like Water!
 “Be like water making its way through cracks. Do not
be assertive, but adjust to the object, and you shall find
a way around or through it. If nothing within you
stays rigid, outward things will disclose themselves.
 Empty your mind, be formless. Shapeless, like water.
If you put water into a cup, it becomes the cup. You
put water into a bottle and it becomes the bottle. You
put it in a teapot, it becomes the teapot. Now, water
can flow or it can crash. Be water, my friend.”
― Bruce Lee
The market runs like a river and will always find the
path of least resistance

33. Valuable Business Tips!
When and if the business ever runs dry, even if
you have this incredible love for your original
idea, you need to pivot or regroup and form a
new vision that is profitable because without a
profit there is no business.
Package your products into groups
This allows you to charge higher fees

34. Valuable Business Tips!
Time is a Limited Resource
Treat time with Respect!
Charge by the project or product, not by Time
This gives you flexibility with your time and
allows you to charge more (if necessary) for your
time
If you could provide a better product in less time
than your competitor then why should you
charge by time?

35. Valuable Business Tips!
Identify a niche client population
Detail your Services to Target their Needs
Seek out Mentors…
 That specialize in your intended area of focus
Everyone has a need to be filled and entrepreneurs
are skilled at finding ways to satisfy needs that
produce income

36. Valuable Business Tips!
Use Google apps – They are FREE!
Build an Elevator Pitch with Harvard Business
School for FREE!
http://www.alumni.hbs.edu/careers/pitch/
Start a FREE Wordpress blog…
and a FREE Facebook Business page…
Tell everyone about you and your business!!

37. Thank you!
*Thank you*
Entrepreneurship
http://www.EliteProCoach.com
http://www.LeadershipCoachingBlog.com