An overview of how to start a business. Introduction to the key areas of business planning. Suggestions for further sources of information.

1. Starting a Business in IL: Next
Steps
Presented by Miguel Hinojosa, PhDc
Small Business Advisor
ILSBDC at Harper College

3. All starts with the will

4. Seminar objetives
1. An overview of how to start a business
2. Introduction to the key areas of business
planning
3. Suggestions for further sources of
information

5. Agenda
1. Business idea
2. Business Model
3. Business Plan
4. Invitation for IL SBDC at Harper College

6. Business Idea
What
road
should I
take?
It depends.
Where do you
want to go?
If you don’t know
where you are
going, any road
will get you there
It
doesn’t
matter

7. What? and For whom?
• What product or service you want to offer?
Match each picture with the words:
1. Price
2. Quality
3. Quantity
4. Time

8. What? and For whom?
• Who would you want to sell? Competitor
custormers or new. Match each picture with
the words:
1. I sell according customer habits
2. Need or problem that I help solving
3. Results that customers expect

9. The real benefit
• What is the real benefit that the customer purchase?
•

10. Your Business Idea
• What?
• Cost:
• Quality:
• Quantity:
• Time:
• To whom?
• Needs:
• Habits:
• Results:
• Benefit?

11. Agenda
1. Business idea
2. Business Model
3. Business Plan
4. Invitation for IL SBDC at Harper College

12. From business idea to business plan

14. The empathy map

15. Strategy business models

16. • What if …?
Create more prototypes

17. Your business model

18. Agenda
1. Business idea
2. Business Model
3. Business Plan
4. Invitation for IL SBDC at Harper College

19. Business plan
1. Industry Analysis (4)
2. Market Analysis (5)
3. Products and Services (3)
4. Description of Business (2)
5. Marketing Strategy (6)
6. Operations and Administration (7)
7. Financial Plan (9)
8. Implementation Plan (8)
9. Contingency Plan (10)
10. Executive Summary (1)

20. 1. Industry Analysis
• Industry health
• Industry cycle

21. 1. Industry Analysis
• Economy of scale
• Technology

22. 2. Market Analysis
• Structure and size
• The competence

23. 2. Market Analysis
• Market Segment
• Deep Research

24. • Positioning
• Registered trademark,
Patent and
Copyright
3. Products and Services

25. 3. Products and services
• Customer preference
• Fad, Fashion, trend and Lifestyle

26. 4. Description of business
• Vision: To Provide assistance to Strengthen the
management of small and medium
enterprises
• Mission: To Provide a positive economic
impact in the long term
• Values: Quality Service
Visionary Leadership
Diversity
Integrity

27. 4. Description of business
• Short and long term goals
• Description of operation
and facilities

28. 5. Marketing Strategy
1. Target market identification
2. Target markets features
3. Tools and methods
4. Market testing
5. Marketing strategy
implementation

29. 5. Marketing Strategy
• Price fixing
• Sales
1. Customer need
2. Problem to solve
3. Consequence of not resolving
4. Demostrate the solution
5. Facilitate the purchase
6. Customer service

30. 6. Operation and Administration
1. Location and facilities
2. Processes and procedures
3. Purchasing and controls
4. Inventory administration
5. Distribution
6. Customer service

31. 6. Operation and Administration
• Human resources
• Management and organization
• Professional services

32. 6. Operation and Administration
Type of
Company
Advantage Disadvantage
Sole
Propietorship
Easy formalization Unlimited liability
Personal tax
General
Partnerships
Collaborative Unlimited liability
Personal tax Coordination of interest
Limited
Liability Co.
Legal entity Different State laws
Limited liability Tax: salary and income
S
Corporation
Legal entity Lost control
Common share, 100 owners Tax salary, income & Fed
Limited liability Reports & annual meeting
C Corporation Legal entity
Common&preferred share
Tax salary, income, Fed, S.
Lost control
Limited liability Reports & annual meeting

33. 6. Operation and Administration

34. 7. Financial plan
• Financial Evaluation
• Sensitivity Analysis
• Scenario Analysis
Cash flow Data Time0 Year1 Year2 Year3 Year4
Sales 5% 100,000 105,000 110,250 115,763
Costofsales 75% -75,000 -78,750 -82,688 -86,822
Operationexpenses 19,275 -19,895 -19,515 -19,435 -19,355
Operationflow 5,105 6,735 8,128 9,586
Workingcapital 25,000 -25,000 25,000
LoanW.C. 3,000 3,000 -3,000
Investmentcapital 10,000 -10,000 5,000
LoanI.C. 4,000 4,000 -1,000 -1,000 -1,000 -1,000
NetCashFlow -28,000 1,105 5,735 7,128 38,586
LoanW.C. % 10% % &NPV 5% 16,156 IRR% 20%
LoanI.C. % 8%

35. 8. Implementation Plan
• Tasks description
• Deadline
• Responsibility assignation
Gantt Chart
Business Plan 1 2 3 4 1 2 3 4
1. Industry Analysis
2. Market Analysis
3. Products and Services
4. Description of Business
5. Marketing Strategy
6. Operations and Administration
7. Financial Plan
8. Implementation Plan
9. Contingency Plan
10. Executive Summary
January February

36. 8. Implementation Plan
• Recruitment and selection
• Marketing tactics
• Development of products and services
• Technology application

37. 8. Implementation Plan
• Funding
– Personal, Family y Friends
– Institutions
• SBA Microloan Program www.sba.gov
• Accion Chicago www.accionchicago.org
• Department of Commerce & Economic Opportunity
www.illinois.gov

38. 8. Implementation Plan
• Accounting
Operation evaluation
Tax declaration
• Bank Account
All revenues deposited
All expenditures by check

39. 9. Contingency Plan
1. Evaluation of possible events
2. Response and Recovery Plan
3. Damage Assessment Process
4. Lifesaving procedure
5. Rehabilitation Plan
6. Recovery Plan

40. 9. Contingency Plan
• Fall of income or loss of customers
• Loss of personal
• Change in the regulatory restrictions
• Increased costs or loss of provider

41. 10. Executive Summary
• For staff
• For investors
• For funders

42. Your business plan checklist
1. Industry Analysis 
•Industry health o
•Industry cycle o
•Economy of scale o
•Technology o
2. Market Analysis 
•Structure and size o
•The competence o
•Market Segment o
•Deep Research o
3. Products and Services 
•Positioning o
•Trademark, patent & Copyright o
•Customer preference o
•Fad, Fashion, trend and Lifestyle o
4. Description of Business 
•Vision o
•Mission o
•Values o
•Short and long term goals o
•Description of operation & facilitieso
5. Marketing Strategy 
a.Target market identification o
b.Target markets features o
c.Tools and methods o
d.Market testing o
e.Marketing strategy implementationo
•Price fixing o
•Sales o

43. Your business plan checklist
6. Operations and Administration 
•Location and facilities o
•Processes and procedures o
•Purchasing and controls o
•Inventory administration o
•Distribution o
•Customer service o
•Human resources o
•Management and organization o
•Professional services o
•Type of company o
•Registration o
7. Financial Plan 
•Financial Evaluation o
•Sensitivity Analysis o
•Scenario Analysis o
8. Implementation Plan 
•Tasks description o
•Deadline o
•Responsibility assignation o
•Recruitment and selection o
•Marketing tactics o
•Development of products and serviceso
•Technology application o
•Funding o
•Accounting o
•Bank Account o
9. Contingency Plan 
•From possible events to recovery plano
•Fall of income or loss of customerso
•Loss of personal o
•Change in the regulatory restrictionso
•Increased costs or loss of providero
10. Executive Summary 

44. Agenda
1. Business idea
2. Business Model
3. Business Plan
4. Invitation for IL SBDC at Harper College

45. Small Business Development Center
SBDC
The SBDC at Harper College is funded in part
through a cooperative agreement with the U.S.
Small Business Administration, Department of
Commerce and Economic Opportunity, and
Harper College to help our local businesses start,
grow, and expand

46. SBDC Services
• Workshops & seminars on key business topics
• Free, Confidential, One-to-One
advising/coaching. Advising areas include
Marketing, Finance & Accounting, Business
Plans, Access to capital/funding, Operational
issues, Strategy, & Starting a biz
• Client categories: Pre-venture, Start-up and
Established
• SBDC Toolbox: GrowthWheel, ProfitMastery,
ReferenceUSA and IBISWorld

47. SBDC Advisors
Tomas Joan Anthony Miguel
Cassell Dubnicka Baldassano Hinojosa
• Provide individual business counseling/coaching,
at no cost
• Financial, Marketing, and Management expertise
• All Successful Entrepreneurs

48. SBDC Workshops and Seminars
• Starting a Business: First and Next Steps
• Small Business Marketing Boot Camp
• Small Business Financial Boot Camp
• Social Media Boot Camp
• QuickBooks for Entrepreneurs
• Email Marketing 101
Invite you to register at
www.harpercollege.biz

52. Starting a Business in IL-
Next Steps
• Miguel Hinojosa Ph.Dc
• Email mhinojos@harpercollege.edu
• Cellphone (847) 873 – 2245
• Office (847) 925 - 6520
• Thank you for attending
• Please complete the evaluation form