Tim Mclellan, a partner in B2B CFO talks about what it takes to become an Entrepreneur.

1. Becoming an Entrepreneur
Tim McLellan
Partner, B2BCFO®
March 1, 2012
www.b2bcfo.com

2. My Background
• 25 years in “Corporate America”
• Last corporate job was closing down a
$300 million 1,100 employee business
unit.
• Thought – “There must be a better way!”
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3. How Do I Make Money?
• Serve as Part Time CFO for several businesses.
• Work with companies that have outgrown their in
house bookkeeping / accounting capabilities.
• Help businesses increase profitability, monitor
performance, bank loans, fund future growth
plans
• Responsible for finding clients, negotiating and
setting fees.
• Part of a nationwide network of 200 partners, 8
in Atlanta.
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4. Being your own boss - Pros
• You can make all the decisions
• Flexible schedule
• Clear Goals and Objectives
• Work Harder = Increase Income
• If it doesn’t work, fix it.
• Tax deductable expenses
• Is it really more risky?
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5. Being your own boss - Cons
• Start up costs
• No regular paycheck
• No paid vacation or holidays
• Health insurance may be a challenge
• It’s lonely at the top
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6. Franchise or Not?
• Any business can be a franchise
– Restaurant
– Financial Services
– Home Repair
– Auto Repair
– Business Consulting
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7. Franchise or Not?
• Franchise
– Initial fee plus ongoing monthly payments
– Buying a system – process, training,
advertising, market research
– Territory restrictions
– Business restrictions
– Due Diligence – call current franchisees
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8. Franchise or Not?
• No Franchise
– Initial cash outlay is lower
– No operating procedures
– No territory restrictions
– No business restrictions
– You will make mistakes that cost you time and
money
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9. Buy Existing Business
• You purchase customer list, business methods, patents /
trademarks, employees, business assets
• Why is business being sold?
– Retirement, etc – new buyer will pay a premium
– Fire Sale – new buyer will get a “deal”, but may not be able to
turn business around.
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10. Financing your Business
• Personal Savings
• Retirement Accounts – borrow from 401(k), invest 401(k)
• Home Equity (?)
• Friends and family
• Angel Investors
• Venture Capital
• After Start Up:
– Accounts Receivable Factoring, Credit Card Advances
– Bank Loan secured by assets of business.
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11. Results!
Revenue by Year
2006 2007 2008 2009 2010 2011 2012P
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12. Selling / Networking
• Chambers of Commerce
• Rotary, Kiwanis, etc
• Church
• Other parents
• Linked In
• Facebook, Twitter, etc
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13. $15 Resource
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