Rory Thomas – Guest Speaker – Small Business Dev.
Americans
want to work for themselves
By
year 2020, 4/10 Americans self employed
Questions to consider:
How will
business affect your family?
Are you
willing to risk personal assets?
Are you a
self-starter/decision maker?
Can you
organize and plan?
What skills
and experience do you have for the business?
Is the
product something that the customer wants/needs?
Start young – a lot of time spent making a business (can put
strain on relationships)
Smartstartmem.com – lists requirements for aspiring bus. owners
PROS AND CONS FOR LICENSING
Lack of
customers/publicity
No
need for bus. license if less than $4k
Minimal activity
bus. license
Earn
to $10k
If
not renewed, dissolves away
SBA – fed agency to aid, counsel, assist, protect small
businesses
Largest small
business assistance program
95% of the human population are outside of the USA
identify
market (even consider outside the country!)
tsbdc.org – resources
tsbdctraining.org – free online training
sbdcnet.org
gybo.com – google website
liveplan
50% of small businesses fail in 5 years, 80% fail within 10
years
(because of
lack of planning)
Proper Planning Prevents Poor Performance
Marketing
Product?
Price?
Place?
Promotion?
SOLE PROPIERTORSHIP
One owner
Complete control
Easy to
form and operate
Easy tax
prep
Pass through entity
Pass through entity
Ind.
Pay taxes, not business
Personal
assets used to satisfy debt
Unlimited
liability
Business
gone with owner’s death
Hard to
raise $$$
CORPORATION ($100 in Memphis)
One of more
shareholder
Separate
legal entity
Limited
liability
Raise
capital by selling stock
Costs more
Double taxation
(ind. and bus.)
More complicated
to start
Admin
duties
LIMITED LIABILITY ($300 in Memphis)
One/more
members
Separate
legal entity
Pass
through entity
Limited
liability
Sharing of
profits
Costs more
to establish
Admin
duties
Raise capital
by selling Membership interests
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