five major steps of
entrepreneurship
STEP 1: MARKET RESEARCH = GAME PLAN
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Read everything you can on your marketplace
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Identify your market (B2B or B2C)
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Identifying your decision-maker
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List of questions (6-4-2)
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Do not outsource
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Adjust based upon each round of research
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Does the market support your idea or approach?
STEP 2: FINANCIAL REQUIREMENTS
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Learn how to read Financial Statements
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Income Statement
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Balance Sheet
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Cash Flow
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Put together Financial Statements for the first 5 years
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How are you funding your business?
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Self-funding
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Borrow Money (Interest Expense)
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Investment Capital (AR Lending, VC, Angel)
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STEP 3: ORGANIZATIONAL STRUCTURE
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Legal Entity (State Tax Law Driven = Accountant)
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Limited Partnership
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Limited Liability Company (LLC)
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S-Corporation
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C-Corporation
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Identify Roles & Responsibilities of Your Team
STEP 4: TEAM
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Best at Every Position (Experience/Track Record of Success)
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Effective at Hiring
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Interviews
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Assessment Tools
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Non-Compete Contracts
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Training/Development & Firing
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Gap Analysis
STEP 5: END GAME = $ELLING YOUR BU$INE$$
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Business Brokers or For Sale by Owner
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EBITDA (Earnings Before Interest Taxes Depreciation & Amortization)
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Owner’s Discretionary Cash
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Multiple of EBITDA or ODC (3-5 times)
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Keep it Confidential
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It Closes with a Title Company like a Mortgage