Small Businesses

What is a Small Business?

X Kayla Mond

X Kayla Mond

A small business is defined as one of which is independently owned and operated for profit and is not dominant in its field

Did you know?

That the legal definition of a small business is determined by the U.S. Small Business Administration (SBA)? Title 13, Part 121 of the Code of Federal Regulations sets forth in detail the criteria to be used by the SBA in making small business determinations.

Criteria of a Small Business

500 or fewer employees for most manufacturing and mining industries (a few industries permit up to 750, 1000 or 1,500 employees) 100 or fewer employees for all wholesale trade industries $6 million per year in sales receipts for most retail and service industries (with some exceptions) $27.5 million per year in sales receipts for most general & heavy construction industries

$11.5 million per year in sales receipts for all special trade contractors
$0.5 million per year in sales receipts for most agricultural, forestry and fishing industries

Starting a Small Business

Website

where you can find all that you need to start your own small business http://www.sec.gov/info/smallbus.s html There are a lot of forms and different Regulations As a small business owner, you are subject to the same regulations as large corporations

Business Law and Regulations

Advertising laws Employment and Labor law Finance Law Intellectual Property Online Business Law Privacy Law Environmental Regulations Uniform and Commercial Code Contact Government Agency Foreign Workers, Immigration, and Employee Eligibility Workplace Safety; Health

The Importance of a Small Business in our Economy

Small

Business provides :

Technical Innovation Employment Competition Entrepreneurs

Statistics

Represent 99.7 percent of all employer firms. Employ half of all private sector employees. Pay 45 percent of total U.S. private payroll. Have generated 60 to 80 percent of net new jobs annually over the last decade. Create more than 50 percent of nonfarm private gross domestic product (GDP). Supplied more than 23 percent of the total value of federal prime contracts in FY 2004.

Supplied more than 23% of the total value of federal prime contracts in FY 2004. Produce 13-14 times more patents per employee than large patenting firms. Twice as likely as large firm patents to be among the 1% most cited. Are employers of 41% of high tech workers (such as scientists, engineers, and computer workers). 53% home-based and 3% franchises. Made up 97% of all identified exporters and produced 26% of the known export value in FY 2002.

References

How important are small businesses to the u.s. economy?. (n.d.). Retrieved from http://www.smallbusinessnotes.com/smallbusiness-resources/how-important-are-small-businesses-to-the-useconomy.html Business law & regulations. (n.d.). Retrieved from http://www.sba.gov/category/navigation-structure/startingmanaging-business/starting-business/business-law-regulations Information for small businesses. (2011, March 01). Retrieved from http://www.sec.gov/info/smallbus.shtml What is a small business ?. (2010). Retrieved from http://www.fedaccess.com/what-is-small-business.htm

What are the Pros & Cons

X Leonard McDonald

X Leonard McDonald

Pros
Income

Potential- Owner gets to reap all benefits. General Satisfaction- No need to punch in a clock. Flexibility- More controllable Work/Family Balance- Set time of work to balance lifestyle. Growth Potential- Making right decisions to grow business.

Cons
Risk

taking decision making- Owner will expect too much out of themself. Beurocracy - Small business owners deal with taxes, healthcare issues, and loads of paperwork. Small business ownership involves a life full of change. Competition can be intense between small businesses. Staying competitive is critical to your success. Delayed Income- May have to wait on profit.

References

Small Business Pros and Cons. The community investment network. Retrieved March 24, 2011, from http://www.communityinvestmentnetwork.org/small-businessentrepreneurship/introduction/small-business-pros-cons/ Pros and cons of small business ownership. (2000 - 2011). Preferred Consumer. http://smallbusiness.preferredconsumer.com/starting/pros_cons/ McLaughlin, Mike. (1997-2005 ). The pro's and con's of small business. Kelowna, B.C. Canada: A Ministry of Youth With A Mission, (BC) Society. http://www.scruples.org/web/seminars/pssb/chapter1/proscons.htm Pros and cons of starting a small business. (2011). Christian Personal Finance. http://christianpf.com/pros-and-cons-of-starting-a-small-business/ Abrams, Rhonda. (2009). The pros and cons of starting a small business. United States: USA Today. http://www.usatoday.com/money/smallbusiness/startup/week1-pros-cons-table.htm

That thing called a Business Plan

X Donnalayha Cook X Donnalayha Cook

Business Plan
Carefully

constructed guide for the person starting a

business

New Businesses Businesses moving in a new direction

Tool

with 3 basic purposes

Communication Marketing Planning

The Three Purposes

Communication

Concise document potential Investors can examine Can track, monitor, and evaluate progress Modify according to experience acquired

Marketing

Planning

Guides through phases of business Helps to identify obstacles Establish alternatives

S.W.O.T Analysis
Strengths Weaknesses Opportunities Threats

Components of a Business Plan

Introduction Executive summary Benefits to the community Company and Industry Management Team Manufacturing and Operations Plan Labor Force Marketing Plan Financial Plan Exit Strategy Critical Risks Appendix

Quality of a Business Plan

Should
1. 2. 3. 4.

answer the following four questions:

What exactly is the nature and mission of the new venture? Why is this new enterprise a good idea? What are the businesspersons goals? How much will the new venture cost?

References

Business plans. (2011). Retrieved from http://www.entrepreneur.com/businessplan/

Electronic Continuing Professional Development, Initials. (2004). the components of a business plan. Unpublished manuscript, The University of Edinburgh, Retrieved from http://www.ecpd.ed.ac.uk/BusPlanComps.php
Keaton, P. (2005). Business planning basics. Retrieved from http://http://www.businessplanning.ws/category/business-planning-basics

US Small Business Administration, Initials. (2010). Starting and managing a business. Retrieved from http://www.sba.gov/category/navigation-structure/startingmanaging-business
Ward, S. (2011). What type of business plan do you need?. Retrieved from http://sbinfocanada.about.com/od/businessplans/a/bizplantypes.htm

Small Business Administration (SBA)

X William Pannell X William Pannell

Small Business Administration

A Government agency that assists, counsels, and protects the interest of small businesses in the U.S.

History
First

called the Reconstruction Finance Corporation (1932) during the great depression. (1942) Small Businesses took a hard hit during World War II from all the large companies got all the attention for wartime defense contracts. Founded July 30 1953

Four Basic Functions

Access

to capital (Business Financing) Entrepreneur Development (education, information, and training) Government Contracting (Federal Procurement) Advocacy (Voice for small businesses)

United States SBA Strategic Plan Fiscal Years 2011-2016

3 Strategic goals -Growing businesses and creating jobs -Improve to meet the needs of todays and tomorrows small business -Continue to serve as the voice of small businesses.

References
http://www.youtube.com/watch?v=5t3eELBpKoM http://www.sba.gov/ http://www.sba.gov/about-sba-services/what-we-

do

http://www.sba.gov/about-sba-services/our-history