BUILD YOUR DREAM 2016

NJCU SOB & YOU

CUZ WE GOT E-POWER

• SOB Entrepreneurship Program
• SBDC Hudson County
• BDI
• Guarani Library
• Entrepreneurship club
• Alumni & Friends

OUR DREAM MAKERS

PITCHING YOUR DREAM BUSINESS

PITCH TIME LIMITS

• Define Problem 3 minutes Define Market 4 minutes Define Unique Advantage 2 minutes Define Investment 3 minutes

WHO ARE THE INVESTORS

• Friends and Family Banks (Traditional) Microlenders CrowdSource Funders Angel Investors and Venture Capitalists (not interested small markets

WHAT INVESTORS WANT FROM YOU

• A Good Investment Based on Sound Platform You need to demonstrate Significant Need or / In Tech – Advantage There are Early Customers –(Traction) Solid Market – Sizeable and Addressable Low Entry Barriers Team – Folks with Solid Skill Sets

PITCHING THE INVESTOR

• Ethos
• Pathos
• Logos

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BUILD YOUR DREAM

IMPLEMENTING YOUR BUSINESS IDEA

• Create a Business Plan
• Understand Finance Options

BUSINESS ASSESSMENT

• Research
• Keep Business Definition ... Simple
• Functional Knowledge/Experience
• Revenue Expectations
• Exit Strategy

PERSONAL ASSESSMENT

• FICO Credit Score 720
• 20% Start Up Costs
• Collateral
• Another Source of Income
• Time and Committment
• Passion

FINANCING A BUSINESS

FRIENDS AND FAMILY

• Low interest or free
• Use lawyer to draw up contract

BANK LOANS / CREDIT UNION

• Business Plan
• 720 +
• Long term customer
• Banks will not loan for certain businesses
• SBA backed loan

HOME EQUITY LOANS/LOC

• Low interest rates
• Difference of 1%
• House is on the line

VENTURE CAPITALISTS/ANGEL INVESTORS

• Provide money in exchange for fraction of business
• Prefer growth oriented sectors
• VC firms Dominated by men
• Very cautious about $$$

PEER TO PEER/ CROWDFUNDING

• Finding people through crowd sourcing sites that will invest small amounts of money into your project
• Pay 5-8 % to peer to peer site/ credit card processing
• Kick starter, indiegogo, 1000angels,angel list

MICROLOANS

• Small , short term loans for small businesses You may qualify for one through UCEDC Microloans can be guaranteed by the SBA Can be difficult to secure Not available everywhere

FINANCING TO AVOID

• Payday lenders
• Credit Cards
• Retirement Saving
• Informal lenders

RESOURCES

• http://business.usa.gov
• Sba.gov
• Jcedc.gov
• Grameenbank
• Intersect Fund
• NJBIZ.gov
• Asbdc.net

FINANCIAL DOCUMENTS

• Breakeven Analysis Monthly Cash Flow Projected Income Statements Personal balance sheet and compensation- statement of changes in financial position Maintain Accounting Records

OVERVIEW

SHOW ME THE MONEY

????

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SMALL BUSINESS LANDSCAPE

STARTLING sTATS

• 29 million small biz's in US
• 23 million self employed
• 49.2% of Americans work in private sector - thus backbone
• Takeaway - the market looks good for entrepreneurs

2. SMALL BUSINESS OWNERS CREATE IMPACT

• They invest in themselves
• They invest in local economy
• They are not a part of the corporate machinery/ be a conscious capitalist
• They can set family legacy

SMALL BUSINESS CREATES NICHE

• You get to enter a niche because the scope of your resources are limited
• Which Translates into doing something you love.

4. IT PAYS TO BE LE LOCAL

• Buyers prefer to go local given the choice
• The large numbers of small business suggest that folks want local/ regional

WHY START?

• Have an idea and capitalize on it
• Have direct or related experience in field or biz
• Can take a financial risk
• Be committed over time

WHAT TYPE OF BUSINESS SHOULD I OPEN?

TYPES OF BUSINESSES

• Products
• Services
• Experiences

TOP TRENDING

• Robotics- Automatic Guided Vehicle
• Mobile salons/retail
• Healthy food vending machines
• Foodie - speciality Foods/Food stands
• Apps for kids
• Translation services
• Bike shops
• Social media companies/ Instagram
• Green construction
• Baby products / niche

SO YOU WANT TO OPEN A SMALL BUSINESS

MANUFACTURING

BAKED GOODS

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