The document provides information on how to build a successful business, including the importance of writing a business plan, obtaining financing, providing good customer service, using social media for promotion, and resources available for Virginia businesses. Key points covered include how a business plan can increase chances of success by 25% by mapping out goals and strategies, the different sources of financing like personal savings, bank loans, and government programs, how customer service is important for retaining existing customers and earning referrals, and how social media is a new way for businesses to earn attention by creating valuable online content.

1. How to Build a Successful Business October 5, 2010

3. Why do I need a business plan?

4. Business Plan Two ways to see if a business idea will work: Write a business plan and see if the idea makes sense… 2. Open up a business and hope you made the correct decision… “Guess which one has the greatest chance of success?”

6. Business Assessment

8. Business Description

9. Operations and Management

10. Product/Service

11. Marketing Plan

12. Financial Statements and Projections

14. Income Statement

15. Cash flow forecast

16. Personal Financial StatementIt is important for your plan to be realistic and reviewed regularly – make changes whenever necessary.

17. Balance Sheet

18. Income Statement

19. Cash Flow Forecast

20. Business Success Rates “Writing a business plan increases your chances of success by 25%.”

21. Assistance? Brett Vandyke, Assistant Joyce G. Kinder, Director (276)964-7345 Email: joyce.kinder@sw.edu Located on the campus of SWCC, Tazewell Hall Room 349

22. Business License & Registration Determine legal entity Check name availability with SCC (trademarks also) Register with the SCC your corporation, LLC or/and fictitious name (www.scc.virginia.gov) Check to see if a URL is available (www.internic.net) Get your FEIN with the IRS (www.irs.gov) Register with VA Dept of Tax (www.tax.virginia.gov) Register with VEC (www.vec.virginia.gov) Check with Dept of Professional & Occupational Regulation to see if you need any special permits. (www.dpor.virginia.gov) Obtain Business License from local Commissioner of Revenue Local fictitious name registration with courthouse

23. Legal Entity One of the most important decisions you need to make before starting your business is determining what legal form your business will take. Effects personal liability Effects taxes – personal & business Effect the way the IRS treats you Marketing reasons

25. If no employees no additional payroll reporting or unemployment taxes

26. Owner reports profits & losses on owners 1040

27. Unlimited personal liability

29. Profits are shared according to their agreement

30. Disadvantages

31. Each partner is personally liable for entire business

32. No real advantage over an LLC

34. C” Corporation

35. Designed for larger businesses or businesses that intend on fast growth and want to reinvest earnings

36. Stockholders not personally liable for company debts

37. More expensive to setup than others

38. Double taxation can occur

39. “S” Corporation

40. Is a tax election, not legal entity

41. Profits & Losses passed through to owners

42. Double taxation avoided

44. Owners not responsible for debts of the business

45. Easier and less expensive to setup than corporation

46. Is a legal entity, not a tax entity

47. Single person LLC is taxed as Sole Proprietor

48. Multiple person LLC is taxed as Partnership

49. Or can elect to be taxed as corporation

50. Good for holding real estate

51. Disadvantages

54. Set up credit card processing (if desired)

55. Fund the business (owner capital or loans)

56. Decide on accounting method (cash or accrual)

57. Establish books for the business (computerized preferred)

58. Obtain liability insurance, renters insurance, workers compensation, etc.

59. Hire employees and set up payroll records

61. Business expansions that are poorly planned and not appropriately financed

62. Poor Management

63. The Business offers products and services that nobody wants or cannot afford

64. Inability to adapt to a changing environment

65. Failing to control costs

66. Poor execution creating dissatisfied customersCreating an effective business plan will assist you in avoiding the pitfalls of running a business. Seeking professional help is another important way to avoid or plan for business challenges.

67. Do it Right From the Start

68. Financing Your Business

71. Personal savings

72. Friends or relatives

73. Government

75. You are more likely to get a loan with adequate equity in your business

77. Credit Cards – to cover and track small expenses or everyday business expenses.

78. Suppliers’ Credit – sometimes a very cheap source of financing, do not overlook the value of this source.

79. Business Term Loan – used to purchase long term assets required to operate your business.

80. Leasing – used to obtain assets to run your business, may provide more flexible options than traditional loans.

82. Most expensive

83. Credit lines may be cut unexpectedly

84. Most risk

85. Personal Savings

86. Lowest expense

87. Lowest risk

88. Do not use all of your savings for start up costs

89. Bank financing

90. Low cost

91. Shorter term

92. Higher equity requirements

93. Small Business Administration guaranteed loans

94. Low cost

95. Longer terms

96. Reduced equity requirements

97. Lower risk to partner Banks

98. Multiple plans to address real estate, equipment, and working capital needs

101. Interest rate 3% above prime

103. Interest Rate=Prime

106. It costs 5 to 6 times more to attract new customers than to keep existing ones

107. Companies can boost profits from 25 to 125 percent by retaining 5 percent more existing customers

110. Know your customer

111. 3 Faces of Customers(External and Internal) 1. *Advocate --- 2. *Apathetic -------------- 3. *Assassin ----- *Satisfaction Chris Denove and James D. Power IV

112. Become an Advocate One that supports or promotes the interests of another

113. 7 out of 10 complaining customers WILL do business with you again IF you resolve the complaint in their favor._______________________ If you resolve it on the spot, 95% will do business with you again.

114. ATTITUDE The greatest discovery of my generation is that a human being can alter his life by altering his attitude. William James (1842-1910)

115. Be Happy!

116. Can You Hear Me Now?

117. The Variations of Body Language

118. How to deal with Challenging Customers Stay calm yourself Let the customer vent Deal with the emotion first Avoid emotional trigger words Gently confront abusive customers Delay action or consult a second opinion

119. Avoid Emotional Triggers Triggers Calmers Here’s what we can do Can Thank you for telling us I’ll find out I understand why… That’s not our policy Can’t I’m sorry you feel that way I don’t know You should have…

121. TEAMWORK Not finance. Not strategy. Not technology. It is TEAMWORK that remains the ultimate competitive advantage, both because it is so powerful and so rare. Patrick Lencioni The Five Dysfunctions of a Team

123. Times Have Changed

124. How we get our news ▪ The first pictures of the crash were posted online via Twitpic on the microblogging site Twitter by a user who had witnessed the accident. ▪ The pictures traveled around the world in only a couple of minutes.

125. What brand name comes to mind when I say ‘hamburger’?

126. What brand name comes to mind when I say ‘soft drink’?

127. What brand name comes to mind when people think of your product or service? Your Name/Company? Or Your Competitor’s?

129. Print Ads

130. Direct Mail

132. SEO

133. Blogging

134. Online VideosAn Interaction An Interruption

135. So what’s Social Media

140. 225 million streams/day It would take 412.3 years to watch every YouTube video 2 BillionYouTube videos viewed per day

141. Your Audience - the World

144. 500 million active users Average 130 friends each Second most trafficked website next only to Google! 50 million status updates per day 100 million access through mobile devices

145. More than 1.5 million local businesses have active Pages on Facebook.

147. 65 million users Approximately 1 joins every second ½ Users are outside US

149. Execs in all of the Fortune 500

150. 60% of incomes over $90,000

151. ¼ are senior executives

152. Segments:

153. Executives: 28%

154. Networkers/Consultants: 30%

155. Late Adopters: 22%

156. Exploring Options: 20%

158. 145 million users 300,000 new users each day 64 million tweets/day 140 character message max The average number of tweets per hour is around 2.7 million. 1382% Growth rate from in 2009 2 billion average tweets per month

160. 4. It takes too much time 1. It’s a waste of time 2. Why do I need this nonsense? ACCOUNTING 5 Top Excuses For Not Joining Social Media 3. My customers aren't using social media 5. Don’t want to give people opportunity to talk negative about me Twitter & Facebook makes networking easy, painless, and powerful. Lines between personal and business networks are blurring. Have you checked to see? You have the ability to stay on top of the people you want to hear from. People are already talking about you. It's better to know what they are saying then to not know.

161. Who’s Got the Time?

164. But they do require regular check-ins and updates

166. Quick Start Dedicate 15 minutes each day Start posting and sharing news, interests and information Post your professional self on LinkedIn, connect to Facebook, develop a Twitter following Learn about each tool. See how users Interact in communities Build up your network (aim for 10).

167. Why Social Media for my Business? Buy attention (with advertising) Beg for attention from the media (with PR) Bug people one at a time to get attention (with direct sales). Or you can EARN attention by creating something interesting and valuable and then publishing it online for free: a YouTube video, photo’s, a Twitter stream, a Facebook page, a presentation on SlideShare.

168. Radar Types/Track Branding Google Alerts Search.twitter Tweetbeep.com

169. Google Alerts

170. Other Business Resources Sandy Ratliff, Business Services Manager Virginia Department of Business Assistance 276-676-3768 sandy.ratliff@vdba.virginia.gov www.vdba.virginia.gov www.vastartup.org

172. Create a Business One Stop account.

173. Answer a few brief questions about your business.

174. Receive a list of action items and pre-filled business registration forms.Questions? Contact the Virginia Business Information Center 1-866-248-8814 (804) 371-0438 vbic@vdba.virginia.gov

176. Bridges the 26 state agencies, over 100 programs and over 300 forms that may touch a Virginia business

177. Virginia Central Business Portal (www.business.virginia.gov)

178. Covers registration, taxation, licensing

179. Interactive Business Plan CD

180. 5 Step process to a business plan

181. Entrepreneur Express Events

184. $5 billion market

185. Access to buyers from 171 state agencies

186. Additional $5 billion from local governments

187. 575 localities using eVA system.

188. Small Business Goal – 40%

189. Over 41,490 registered suppliers

190. Over 13,065 participating buyersAsk VBIC = 866-248-8814

191. Examples of Purchasing: Instant Ice Tea 01/01/2009 – 12/31/2009 = $23,455.71 - 46 PO’s Novelty – Specialty Advertising Products 01/01/2009 – 12/31/2009 = $152,905.34 - 152 PO’s Grounds Maintenance: Mowing, Edging, Plant (Not Tree) Trimming, etc. 01/01/2009 – 12/31/2009 = $14,566,567.94 - 1150 PO’s Tires and Tubes, Passenger Vehicles 01/01/2009 – 12/31/2009 = $72,103.64 - 7 PO’s Concessions, Catering, Vending: Mobile and Stationary 01/01/2009 – 12/31/2009 = $6,187,712.31- 11,757 PO’s Building Maintenance 01/01/2009 – 12/31/2009 = $90,611,650.85 - 9285 PO’s Earth Moving Equipment Rental 01/01/2009 – 12/31/2009 = $8,573,333.24 -621 PO’s Cleaning Services, Steam & Pressure 01/01/2009 – 12/31/2009 = $3,358,694.55- 303 PO’s

192. One–on-One Counseling Sessions Need Based: Accessing New Markets/Sales Growth Tailored Sales Development Solutions Financing Resources Social Media for Your Business To schedule an appointment, contact: Sandy Ratliff, Business Services Manager 276-676-3768 Email: sandy.ratliff@vdba.virginia.gov

194. Partnership with Service Providers and localities

195. Provide information on available resources to start and grow a business

196. Statewide Program

197. Free – ½ Day Session

198. Over 8,000 reached

200. October 14 – Scott County

201. November 1 – Floyd County

202. November 16 - BristolRegister : www.vastartup.org

204. Create minimum 25 net new jobs within 12 months and capital investment of at least $1,000,000

205. Minimum entry-level wage of $10.00/hr required. Only full-time jobs are eligible.

206. Small business workforce recruiting and training

207. 250 employees or less, hiring at least 5 new full time employees within 12 months of operation and capital investment of at least $100,000

208. Minimum entry-level wage of $10.00/hr required. Only full-time jobs are eligible.

209. Retraining

210. Small businesses that are retooling and installing new technologies

213. Combination of on-the-job training and classroom instruction.

214. Advantage of skilled workforce and reduced turnover.

215. http://www.doli.virginia.gov

216. Virginia Department of Agriculture & Consumer Affairs

217. Virginia’s Finest Trademark = Marketing program that promotes foods and foods products grown in Virginia.

218. Facilitates expansion of agricultural businesses.http://www.vdacs.virginia.gov

220. 30 Within Commonwealth

221. Business Incubator Benefits

222. Facility designed to assist businesses to become established and sustainable

223. Benefits

224. Shared premises and business services

225. Business advice and mentoring assistance

229. Marketing Resources SCORE = www.score.org Virginia Tourism Corporation = www.vatc.org Virginia Economic Bridge, Inc. = www.virginiabusiness.org Virginia Department of Agriculture – Virginia’s Finest Trademark = www.vdacs.virginia.gov

230. “ If you don’t believe in your dreams who will?”

231. Cindy Green Business Trainer 276-274-2181 cgreen@peopleinc.net Whatcanpeopledo.org Website http://twitter.com/CindyDGreen http://linkedin.com/in/cindygreen2010 http:www.facebook.com/CindyGreen2010