California Startup Boot Camp TitleTITLE California Startup Essentials for Retail, Restaurant and Service Entrepreneurs
1. Startup Boot Camp
Kick Starting Success for
California’s Retail, Restaurant and
Service Entrepreneurs!
Day 1 — Session 1
2. "The best way to predict
the future is to create it."
— Peter Drucker
WELCOME/INTRODUCTIONS
3. Goals
Designed specifically for entrepreneurs in the early stages of
developing service, retail or restaurant businesses
Test your business idea
– Is It feasible given your goals, values, income requirements, and finances?
Understand and execute basic business planning concepts
– Determine what information is important and how to get it
– Determine what questions need to be asked
Develop an action plan
Link to free and low-cost resources that can help
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4. Expectations
Attend entire program
Complete all of the work
Add your expertise to the discussions
Become an SBDC client for one-on-one counseling upon
completion of program to refine and complete your
business plan
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5. Caveat
Like drinking out of a fire hose
Exposure to many concepts
Will touch on a wide variety of issues affecting startups,
but concentrate on producing deliverables for the
elements necessary to create a well-thought out
business plan
At the end of the program, you should become an SBDC
client to refine your business plan and build-out your
support network/systems.
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6. One-Minute Introductions
Identify yourself
Describe your business idea
Tell us about prior experience that is relevant to your
business idea
State one or two specific questions that you hope to
answer as a result of the Boot Camp
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8. Basics
Business counseling, training
Training free or low cost/counseling
free
Any stage of business growth
Founded during Carter administration
Oversight by federal Small Business
Administration (SBA)
Over 1,100 nationwide
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9. What Is An SBDC?
Assists “business ready” entrepreneurs and existing small business owners
who are ready to start, retain or expand their business
Focuses on businesses with potential to produce economic impact for the
local community:
Provides no-cost, one-on-one business counseling
Offers no- or low-cost training, workshops and business forums
Measures and validates (through client surveys) success against 6 criteria
– Business starts
– Jobs created
– Jobs retained
– Sales increased
– Capital investment received
– Loans obtained
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10. What Is An SBDC (cont’d)
Experienced, independent Business Advisors
Generalists and specialists (examples)
– Business planning
– Market research, marketing, advertising
– Loan assistance/financial management
– Human Resources
– Procurement/minority certification
– Technology
Part of local economic development community
providing referrals to qualified small-business resources
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13. North America’s Largest Owner & Operator of
Neighborhood & Community Shopping Centers.
Who is Kimco?
History Started in 1958 | IPO that initiated modern REIT era;
NYSE-listed for ~20 years | S&P 500 Index (2006)
Dividend $0.76 annually, ~3.9% yield (3/31/12)
Shopping Center Properties 946 properties; 138.1M / 89.5M sq. ft. (gross/pro-rata)
Geographic Footprint 44 states, Puerto Rico, Canada, Mexico and South America
Occupancy (pro-rata) 5-year average: 93.9% | High: 96.3% (12/31/07) / Low: 92.3% (6/30/09)
Enterprise Value $13.2B (3/31/12)
Credit Rating Investment Grade BBB+ | BBB+ | Baa1 (S&P | Fitch | Moody’s)
14. Westlake Shopping Center - Daly City, CA
Kimco Entrepreneurs
Year Start
What is KEYS?
• Kimco Entrepreneurs Year
Start (KEYS) is a business
incubator program for qualified
startup entrepreneurs.
• Approved applicants receive:
• Resources and services
• One year of free rent
(must pay NNN expenses
only)
• This incentive accelerates the
growth of their new businesses
in shopping centers owned by
Kimco and its joint venture
partners.
15. Redhawk Towne Center – Temecula, CA
Kimco Entrepreneurs
Year Start
What does KEYS offer?
• Qualified KEYS applicants will
benefit from:
• Substantially lower
monthly
overhead expenses
• Lease term flexibility
• Assistance of a Kimco
counselor
• Counselor will advise and
guide potential tenant through
the lease, store selection and
planning process, if desired.
• After Tenant’s initial first year
lease term, the tenant has
choice to exercise a four-year
lease option for the existing
store.
• Also, the lease provides for
an easy exit with no long term
obligation to Kimco if the
startup entrepreneur finds the
business unworkable.
16. Larwin Square Shopping Center – Tustin, CA
Kimco Entrepreneurs
Year Start
How many spaces are available?
• Currently, there are
approximately:
• 100 available stores
• All under 2,500 square
feet in size
• Located in Kimco’s
demographically diversified
California portfolio
• Of the 100 available units,
there is a mixture of both
retail, service, and former
restaurant build-outs.
18. The District at Tustin Legacy – Tustin, CA
Kimco Entrepreneurs
Year Start
Who can apply to KEYS?
• KEYS is open to:
• New startup retail
ventures
• Service operations
• Restaurants
• The entrepreneur should
have the training, skill,
enthusiasm, and adequate
funding to launch a new
business.
• Franchisees or product
license agreement participants
may not apply to the program.
19. The District at Tustin Legacy – Tustin, CA
Kimco Entrepreneurs
Year Start
What’s the catch?
• There is NO catch!
• Kimco benefits by bringing
new and exciting tenants to its
vacancies, while new
entrepreneurs benefit from
lower startup costs, favorable
lease terms, and the help of a
counselor, if desired.
• Studies found that 87% of
‘incubator graduates’ stayed in
business, in contrast to 44% of
all firms.
20. Westlake Shopping Center - Daly City, CA
How do I get started?
Kimco Entrepreneurs • Applicants can submit their • Applicants may also apply by • A printable application form
Year Start business plan online at
http://www.KimcoKeys.com
calling 1-888-668-1690 can be found online by clicking
here
22. The Textbook “Entrepreneur”
Recognition of available opportunities
The long-term will, motivation, and
endurance to stick with it to deliver a
product or service to capitalize on the
identified opportunities
Identification of the resources needed
Ability to acquire resources required
but not currently controlled
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23. The Real World Entrepreneur
Many Responsibilities Many Benefits
• Bookkeeping • Do what you enjoy
• Record Retention • Do what you’re good at
• Reporting • Freedom
• Bill Paying • Be in control
• Regulations • Be your own boss
• Tax filing • Make more money
• Employees • Build an asset for
• Administration retirement
• Customer service • Be the decision maker
• etc., etc., etc.
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24. The Owner’s Mindset
Understand the tasks that need to be performed
To the extent possible, focus on the “drivers” of your growth and profitability
When possible, hire professionals to handle other tasks (e.g., bookkeeping,
taxes, insurance, etc.)
Know your customer
Know your competition
Plan, act, assess . . . Adjust plan, act, assess . . . repeat
Constantly innovate (do something different that can positively impact your
business)
Watch cash flow constantly
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25. Your Commitment — You . . .
May need to make financial sacrifices
Will have less free time
Must understand the opportunities and risks
Need to involve your family – it’s their commitment too!
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26. Is This The Right Path For You?
Are You:
– Comfortable taking risks?
– Independent?
– Persuasive?
– Able to negotiate?
– Creative?
– Supported by others?
If interested, numerous self-assessment tools can be
found on the Internet
– Google “entrepreneurship self assessment” to find some
– A sample: http://www.youronestopcenter.com/entrepreneur-test.php
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26
27. A Couple Interesting Quotes
Steve Jobs Michael Jordan
“I’m proud of what I’ve done. “I've failed over and over and
But I’m most proud of what I over again in my life and that is
decided not to do.” why I succeed.”
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28. 20 Starting Questions
Why am I starting a business?
What kind of business do I want?
Who is my ideal customer?
What products or services will my business provide?
Am I prepared to spend the time and money needed to get my
business started?
What differentiates my business idea and the products or
services I will provide from others in the market?
Where will my business be located?
How many employees will I need?
What types of suppliers do I need?
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29. 20 Starting Questions (cont’d)
How much money do I need to get started?
Will I need to get a loan?
How soon will it take before my products or services are available?
How long do I have until I start making a profit?
Who is my competition?
How will I price my product compared to my competition?
How will I set up the legal structure of my business?
What taxes do I need to pay?
What kind of insurance do I need?
How will I manage my business?
How will I advertise my business?
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31. At A Minimum . . .
Get legal advice when . . . .
– Determining the business structure
– Adding your first employee
– Reviewing leases and other agreements/contracts
– Protecting intellectual property (e.g., trademarks)
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32. Business Structures
Sole Proprietorship:
– Owned and operated by one person
– Easy to start (report income and loss on Schedule C)
– High personal liability
Partnership:
– Multiple owners
– Partnership agreement defines control
– Pass through of profits and loss to personal tax return (Form k-1)
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33. Business Structures (cont’d)
Corporation:
– Structured and formal
– Complex filing with state
– Bylaws govern operations and annual meetings
– Strictly limits liability
– Two forms:
• C Corp: unlimited shareholders, double taxation
• S Corp: less than 100 shareholders, profit and loss pass through
Limited Liability Company
– Any number of owners
– Structure protects personal liability
– Pass through of profits and losses
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34. Business Structure (cont’d)
Factors to consider:
– Number one consideration is YOUR PERSONAL LIABILITY
– Outsider investors
– Cost
– Ease of formation
– Taxes
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35. Additional Considerations
Business Licenses Required: city, county, state
Federal Employer Identification Number (EIN)
– Only required if you have employees, but should be
considered for all businesses
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36. Fictitious Business Name
DBA (“doing business as”)
– Not necessary if doing business under own name
– Allows use of descriptive name for business
– Prevent others from using your name in business
– Can use assumed name for bank accounts, credit cards, telephone
listings, etc.
Process
– Confirm name is available
– File with county clerk
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37. Taxes
Self-employment tax
– Social Security and Medicare
Income taxes
State and local taxes
Property tax
Unemployment taxes
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38. Sale of Tangible Goods
Apply for seller’s permit through the Board of Equalization
– California state sales tax of 8.25%
– Additional local sales taxes may apply
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39. Business Insurance
Property – buy based on replacement value
– Named peril
– All-risks policy
Liability – damage to property or injury to someone
– Look at similar businesses
– Consult a professional insurance agent
Professional Liability/Errors and Omissions
Employment Practices Liability Insurance
– e.g., wrongful termination, sexual harassment, race, gender
Workers’ Compensation
Optional Medical/Dental/Vision
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40. Checklist
Be Legal
– Seek the advice of an attorney when necessary
Know your Tax Responsibilities
– Determine what taxes your are responsible for
Determine insurance needs
Hire qualified professionals to help
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41. Reference
Three great resources
– www.sba.gov
– www.business.ca.gov
– (Insert local SBDC website here!)
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42. Reference (cont’d)
Business structure: http://www.taxes.ca.gov/Income_Tax/incbus.shtml
Trademarks and service marks: http://www.sos.ca.gov/business/ts/
Business name search: http://kepler.sos.ca.gov/
Registering a fictitious business name:
http://business.ca.gov/StartaBusiness/RegisteringaBusiness/FictitiousBusin
essName.aspx
Insert url for local licensing and permits here
Starting a business overview: http://business.ca.gov/StartaBusiness.aspx
Board of equalization:
http://business.ca.gov/StartaBusiness/OperatingaBusiness/SellingMerchand
ise.aspx
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43. Reference (cont’d)
Business permits, licenses and registration requirements in California:
http://www.calgold.ca.gov/
Business incentives:
http://business.ca.gov/Portals/0/RelocateExpand/Docs/%5BCalBIS%5D%2
0Investment%20Guide%206-12.pdf
Tools for business: (others as appropriate)
http://alamedacowib.toolsforbusiness.info/california/0b/?CFID=20047345&C
FTOKEN=48228e477ea10bf9-CBBF2EC4-080A-5D4F-
FD33E2DE24B108AC
Basic information on employees:
http://business.ca.gov/StartaBusiness/AdministeringEmployees.aspx
Apply for an EIN:
http://www.irs.gov/businesses/small/article/0,,id=102767,00.html
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44. “If you don't know where you are going,
any road will take you there.”
— Lewis Carroll
SUCCESSFUL BUSINESS PLANS
45. Purpose: Business Plan
Secure capital
Roadmap to success
Negotiate deals with landlords and channel partners
Written execution plan
Solidifies thinking
Makes “vision” in your head real
The 3 C’s: Clear, Compelling, Concise
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46. Simplicity is Key
“People don’t read anymore;
Make it easy for them!”
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48. Success Factors
10 or fewer written pages
Plus financials and supporting documents
Formula works for all companies
At any stage of development
Easy to customize
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50. Define your Mission
Summary of your business and your plan?
– Short and Sweet.
– 100 words, hopefully less.
– Think of it as “your reason for being.”
Clearly define your market and your role in it.
How are your different from your competition?
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51. Answer these Questions
What will your company do?
Who is your core customer?
How will your reach them?
Why are you better than the competition?
What are your product benefits?
What are your key features?
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52. Example
Take out a blank piece of paper
Assume this Day Spa is your business:
Take 3 minutes and write a Mission Statement for your
business
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53. Sample Mission Statement
Our mission is to run a profitable business by providing high-end therapeutic
massage and aesthetician services in a caring, upscale, professional
environment. We offer massage in a variety of styles – traditional Swedish
Massage, Sports Massage, Deep Tissue work, Sports Massage, Hot Stone
Massage, Reflexology, and others. Our licensed aestheticians offer the latest in
skin treatments, body treatments and anti-aging therapies.
Our goal is to tailor the client’s experience based on initial interview
information, as well as feedback during the treatments, to ensure the client’s
comfort and satisfaction, and to increase repeat business. We are mindful of
the overall experience – using only the finest oils and lotions, beauty treatments
and aromatherapies. Special lighting, music, decor, and textiles are used
throughout the spa to complete the comfortable, plush environment and
enhance the client’s overall spa experience.
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54. Write Down Your Mission
Take out a sheet of paper and write “Mission” on it.
– Write down your first draft of your business’ mission statement
– Make it great!
Remember . . . .
– Short and Sweet.
– 100 words, hopefully less.
– Think of it as “your reason for being.”
Does it define your market and your role in it?
Does it define how you differ from your competition?
Write it and rewrite it over time as you gather new
information
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55. Startup Boot Camp — LUNCH
Ask not what you can do for your
country. Ask what's for lunch.
– Orson Welles
56. “I don't know the key to success,
but the key to failure is trying to
please everybody.”
— Bill Cosby
WHO IS YOUR CUSTOMER?
57. Customer Definition
Specifies your market AND your role in it
Identifies your customers and why they will buy from you
Defines your “target” consumer
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58. Types Of Customer Information
Demographic Information - The study of human
populations:
– Size
– Density and location
– Age and gender
– Race
– Occupation, Income and other statistics
Psychographic Information - Dividing a market into
different groups based on:
– Social class
– Lifestyle
– A personality characteristic
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59. Market Segmentation
The process of dividing the total market into a subgroup
which consist of customers who share a similar set of
needs and/or wants.
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61. Identify Your Heavy User Group
Specialty chocolate and women between 25 and 44
Domestic beer and blue collar males
Imported beer and white collar males
Any Others Come To Mind?
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62. Example
Take out a blank sheet of paper.
Assume this is your bicycle shop:
Take 3 minutes and write down everything you know
about your target consumer.
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63. Example
Is this your customer? How about this?
Or is this your customer? Or this?
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64. Example
If this is your customer, what do we know/can we find out
about him/her?
• Age?
• Income?
• Other Activities?
• What do they watch/read?
• Where do they get product information?
• Who influences their decisions?
• What brands do they like?
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65. Identify Your Customer
Take out a sheet of paper and write “Customer” on it.
Take 3 minutes and write down everything you think you
know about your customer.
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67. What is this?
A Camera!
What is its purpose!
Capturing Memories!
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68. Product
What is it?
What does it do? What problem does it solve?
– If you can explain in 3 steps = you are golden!
Create a competitive product matrix and show what the
others are missing
Demonstrate your added value
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69. Example
Take out a blank sheet of paper and over the next 2
minutes list sample features of a camera.
fea⋅ture: noun. a prominent or conspicuous part or
characteristic
– 8x Optical Zoom with 28mm Wide-Angle Lens
– Optical Image Stabilizer
– 720p HD Video
– Lithium-ion Battery
– Warranty/Customer support
Remember: Features don’t sell
Products; Benefits sell Products!
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70. Example
ben⋅e⋅fit: noun. something that is advantageous or good;
an advantage
– Better sports pictures
– Quality images
– Longer time between charges
– Affordability
– Easy return policy
Marketing and sales: Think . . . .
Feature → Advantage → BENEFIT!
Remember to ask Yourself: What problem
are you solving for your customer?
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71. More On Benefits
The most compelling product benefits are those that
provide:
– Emotional rewards, or
– Financial rewards.
Example: It’s not the brighter smile that the
toothpaste offers; it’s what the smile might bring
you (e.g. friends, a better job, etc.).
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72. Services
Can a service have benefits?
Of course! Name 5 potential features/benefits for a
dentist.
– Years in practice: “The dentist knows what he/she is doing”
– Name dental school: “They are smart and, therefore, better”
– Location: “No hassle, saves time”
– Parking: “Convenient, saves time”
– In Network, Preferred provider: “Saves money and hassle”
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73. Define your Product/Service
Take out a sheet of paper and write “Product/Service” on
it.
Take 3 minutes and write down your product/service and
the associated features and benefits.
Create a competitive matrix and show what your
competitors are missing that you offer
“Anything that won't sell, I don't want
to invent. Its sale is proof of utility,
and utility is success.”
— Thomas Edison
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