Entrepreneurship

MIND YOUR OWN BUSINESS

You can either
Mind someone else's business
or you can
Mind your own

The choice is yours

Business Solutions 4 You Ltd 1
Structuring Businesses to
Create Personal Wealth Copyright © NKS & Associates 2008 All rights reserved

OBJECTIVE

The objective of this course is:
To equip YOU to

Start and

Successfully manage

Your own Business

Introduction

A person who starts a business is called
an Entrepreneur

An entrepreneur is one who undertakes a business or enterprise
(Concise Oxford Dictionary)

The word entrepreneur simply means “someone who gets paid for
adding value”
(Peter Jones – British Entrepreneur)


Introduction
The difference between a corporate and
an entrepreneurial company
Corporate Entrepreneur

Ownership
Ownership

Business
Business


Introduction

Company Structures

The KEY difference between a corporate structure and an
entrepreneurial structure is that, in an entrepreneurial structure
“OWNERSHIP” and “THE BUSINESS” are in the same hands.

Consequently, the strategic plan for the Company will ultimately,
consciously or unconsciously,
Reflect the personal goals of the owner.


Introduction
Owner/Manager Structures

The dynamics of “owner/manager” businesses
“owner/manager”
are ignored by most business schools.

Core topics such as management, strategy, finance, marketing,
production and accounting are taught without differentiating
between the corporate and entrepreneurial business.

The economic models, underlying most management science, depend
upon interchangeability of decision makers so that it does not make
any difference “who” anybody is.

This is clearly not the case in “owner/manager” businesses.

Introduction

Because, in an owner/manager structure
the ownership and the business are in the same hands,
the strategic plan for the Company will ultimately, consciously or
unconsciously, reflect the personal goals of the owner,

Consequently, the content of this course will cover
2 overlapping themes

YOU & YOURPERSONAL GOALS
&
YOU & YOUR BUSINESS

Course Content

Personal Goals
Establishing a definition of Personal Wealth
Wealth Programming
Creating Wealth is an inside Job
Conscious & Unconscious Mind
6 Basic Needs
Anchors/Focus &Flow/Wealth Thermostat
Creating a Rich Vision


Course Content (Cont)

Financial Wealth
Relationship with Money
Taxation
Company Tax Personal Tax
Assets & Liabilities
Personal Financial Statements
Measurement of Personal Wealth
Definition of Personal Financial Wealth

Business Start Up
Practical Reasons
Emotional Reasons
How to start a Business


` Business Start Up (Cont.)

What Type of Business
Not all Value is Equal
What’s in a Name
You Can not do it alone
Dream Team/Business support
Family Business Dynamics
Business Plan
Sources of Finance
Application for Finance
Marketing and Sales
Plan for Failure
Minding you Business



Some Final Thoughts

What’s Stopping You

Conclusion

Final Word


Personal Goals

Definition of Personal Wealth

True personal wealth is living your life on your
own terms
According to your possibilities not your
limitations


Personal Wealth

If true personal wealth is living your life on your own terms,

What does Personal Wealth
mean to you?

Needs Exercise


Personal Wealth
Sorting needs into 3 areas

PERSONAL

FAMILY SPIRITUAL


Personal Wealth
Wealth is normally thought of in terms of being rich.

Rich is normally associated with money

So what does being rich mean to you?
Fancy Cars
Large home
Expensive Clothes
Donations to charities


Personal Wealth

Now imagine how your life would be if you
were seriously rich

How would you spend your time?
Who would you spend it with?
What would you do on a daily basis?
What are the most important things you would
have in your life?


Personal Wealth

How did your seriously rich thoughts conflict with your
needs exercise?

“Each one of your rich daydreams reveals your current
thinking which is either holding you back or propelling
you forward towards experiencing greater riches in your
life“
(Richard Branson I Can Make You Rich)


Personal Wealth

Some people are surprised to find that their answers were the
same and that these answers are no different to what they
are experiencing now

If this is you
CONGRATULATIONS?????????

You are already rich

Wealth Programming

If you are not rich yet, it is not the fault of
Your parents
Society
Government

It is just an indication that your current wealth
programming is faulty

Wealth Programming
All wealth is created in the human mind
(Napoleon Hill – Think and Grow Rich)

The difference between the rich and poor is that the rich
have learned to recognise the value of their thoughts.

Wealth is a product of man’s ability to think
(Ayn Rand – Novelist and Philosopher)

Creating Wealth is an Inside Job

Wealth Programming

1st Key to Personal Wealth

Recognise that your riches are not in some
far off place but they are waiting for you
in your mind

So it is important to understand how your mind
works

Wealth Programming
The Conscious and Unconscious Mind

The conscious mind is what you use all day long but it is limited and studies have
shown that it can only process a few ideas at a time

The unconscious mind is what runs the majority of your life.

It is you operating on autopilot – driving a car
It can process millions of images every second
It contains all your wisdom, memories, intelligence
But, it also the centre of all your habits, prejudices, fears

If we are to upgrade our lives we have to upgrade our unconscious mind


Wealth Programming

6 Basic Needs – (Anthony Robbins)
Certainty
Uncertainty
Significance
Connection & Love
Contribute to others
Emotion


Wealth Programming

When getting into the unconscious mind both Anthony
Robbins and Paul McKenna refer to 3 specific areas that
have to be explored

Anchors

The Power Of Focus & Flow

Wealth Thermostat


Wealth Programming

Creating a rich Vision

To Achieve success in business you have to have an
outrageously rich vision
(Sol Kerzner)


Wealth Programming
SUMMARY

Personal Wealth has been defined as
“Living your life on your own terms”
And we have seen that the achievement of wealth
Is an inside job
Because it is an inside job we discussed
the need to understand how our mind works
and specifically the need to and how to
programme our unconscious mind


Financial Wealth

So, the achievement of “Personal Wealth” is far more than
just money

BUT

Financial Wealth is important


Financial Wealth

Earlier it was stated that

Wealth is normally thought of in terms of being
rich.

Rich is normally associated with money

So lets get back to the question of money

Financial Wealth
Money

Money is a highly emotional subject

But what is money?

Money is simply a commodity that facilitates the smooth exchange of goods and
services

The amount of money paid for an item or a service is
directly related to
the amount of value it adds to the lives of others.


Financial Wealth
Relationships with Money
What gives money its emotional power?
We do
This emotion can be literal –
This Note = Lunch

Or it can be Metaphoric –
Money is the root of all evil
Money is freedom of choice

Whatever meaning you are giving to money is either drawing it closer
to you or pushing it away


Financial Wealth

So What is your relationship with money?

Complete
“My relationship with Money Exercise”


Financial Wealth

Money gives you the freedom to do with your time what you
want to do with it
Richard Branson

Money doesn’t make you happy. Last year I earned
$ 40 million this year I earned $50 million, I’m not any happier
Arnold Schwarzenegger

The lack of money is the root of all evil
George Bernard Shaw


Financial Wealth

Even if we are giving the right meaning to money and
we are drawing it closer,

the creation of financial wealth is dependant upon

making money work for you
as opposed to
you working for it.

Financial Wealth
To get money to work for you there are 2 key factors that
have to be understood.

Taxation

The Difference between
Assets and Liabilities

The problem is that they are so obvious that they are usually
overlooked


Financial Wealth

TAXATION

Taxes are the largest single expense that you will incur
throughout your life!

It therefore makes sense to do everything possible to
legally minimise them

To what extent have you studied this subject?


Financial Wealth

Personal Tax verses Company Tax

Personal Tax Company Tax
Tax Income
Expenses Expenses
Income Tax


Financial Wealth
ASSETS & LIABILITIES
Contrary to what you may have been told in an accounting class

An asset is something that puts money in your pocket

A liability is something that takes money out of your
pocket.

Rich people buy assets, poor people buy liabilities”.
(Robert T. Kiyosaki – Rich Dad Poor Dad)

Financial Wealth

Examples of Assets and Liabilities

Assets Liabilities
Business not requiring Mortgaged property no income
my presence Consumer Loans
Stocks / Bonds Credit Cards
Income generating property
Royalties


Financial Wealth

If the two principles of

Taxation and
Assets and Liabilities
are combined we end up with

A Personal Financial Statement


Financial Wealth

The Measurement of Personal Financial Wealth

Wealth is the measurement is the of the cash flow from assets compared
to total expenses
(Robert t. Kiyosaki – Rich Dad Poor Dad)

Wealth is a persons ability to survive so many number of days forward
or if I stopped working today for how many days could I survive
(Buckminster Fuller)


Financial Wealth

Definition of Personal Financial Wealth

Personal Financial Wealth is achieved when

The Cash Flow from Personal Assets exceeds Personal Expenses

Money (Financial Wealth) gives you the freedom to do with your
time what you want to do with it
Richard Branson


Business Start Up

Why Start a Business?


Business Start Up

One very good reason for starting a business is to establish a
Company so that you can legally reduce taxation

There are also many other reasons which can be broadly divided into
2 main groups

Practical Reasons
Emotional Reasons

Remember the conscious and unconscious mind


Business Start Up
Company Structures

Corporate Small & Medium

Ownership Ownership

Business
Business


Business Start Up
3 Sound Practical Reasons

Secure your own Future

Reduce Tax

Avoidance of downsizing


Business Start Up

Emotional Reasons

To do what you really want to do
To make your own decisions
To take control of your future


Business Start Up

Practical and Emotional Reasons

You CAN choose whether

You want to climb the Corporate ladder or own it


Business Start Up
Ways of starting a Business
There are 4 alternatives

Keep working and establish a business to manage your assets
(Works best if you earn commission)
Keep working and start a business in your spare time
(Works best with a partner but beware of partnership agreements)
Work out your cost to company and offer your services on a contractual basis
(Can seriously reduce growth potential if contract is full time)
Plan, Plan, Plan and then go for it

Make sure that your choice is not based on fear – look again at your
relationship with money


Business Start Up
What type of Business

This is what you are planning to do with
THE REST OF YOUR LIFE
so it makes no sense if you are not truly
PASSIONATE
about it


Business Start Up

What type of Business
List

Everything you have done that has raised income
The things you thought of doing whilst at school
The things that you would like to have done
List 30 ideas each day for the next 30 days

The best way to come up with a really good idea is to come up with a
lot of ideas
(Linus Pauling – Nobel prize winning scientist)

Business Start Up
Evaluating Alternative Businesses

Which are you passionate about now?

Which can be started quickly?

Which are easily scalable?
(Ones you will get far more out of than you put in)


Business Start Up

Not all value is created equal.

There are 3 essential factors that affect your ability to make
money from adding value

UNIQUENESS

SCOPE

IMPACT


Business Start Up

The more unique your product or service
the less competition you will have,

The greater the scope
the more people you will reach and

the greater the impact it has on someone’s business,
relationship or life, the more your clients will be prepared
to pay.


Business Start Up

How can I add value to the lives of others an most easily make
money

What will people pay for that I can easily and happily provide

What are the ways that I can most easily and happily reach financial
freedom

What would I love to create that people would love to pay me for

When you have exhausted all possibilities, remember this you
haven’t.
(Thomas Edison – inventor?)


Business Start Up

Naming your Business

Having decided on the type of business you want to
start you now need to choose a name for your
business


Business Start Up
Point to Consider when Naming your Business

Should your name be part of your company’s name – Exit strategy
Should the name describe the business – tag lines
Should the name reflect the uniqueness of the business
Can the name be registered as a Company
Can the name be registered as a domain – Email & Web Site
Is it a name you are proud of
What will be your corporate image – text, Font & colours
Structure – Trading as, cc, Ltd


Business Start Up
YOU CAN NOT DO IT ALONE

You will need backing in 3 critical areas

PERSONAL

FAMILY BUSINESS


Business Start Up
You must build your own unique Dream Team

Personal – Mentor / Coach

Family – Family Support critical

Business – Mentor & Expertise

No one person can be an expert in all aspects of business

Family Business Dynamics
Cousin
Consortium
Sibling
Partnership 2
Controlling
Owner Ownership

4 5
7

Family Business
6
Enter Start up
Work Business 1 3
Together Growth
Passing
Baton Maturity


Business Start Up
Business Support

Mentor
Bookkeeper
Accountant
Legal Team
Broker

Budget to pay good rates for good advice
(remember you are prepared to tip a waiter 10%)


Business Start Up

I Would rather have 1% of a hundred others efforts than 100% of
my own (John Paul Getty – Oil Billionaire)

The master key to riches is knowing how to harness the collective
efforts of a truly great team (Paul McKenna)

You can not do it all yourself. Don’t be afraid to rely on others to
help you accomplish your goals (Oprah Winfrey – Billionaire
talk-
talk-show host)

Business Start Up
Planning

All creative artists begin by making models of their work
before creating them in the world.
These models or mock-ups allow the artist to see their vision
mock-
more clearly
It makes it easier to see what is already there and what is still
missing


Business Start Up
Planning

I would go so far as to say that developing a plan and putting that
plan into action is often the only difference between a good idea
and a life changing journey
(Paul McKenna)

Failure to plan is planning to fail
(Robert Schuller – Pastor)


Business Start Up
Planning

It is a blueprint for a successful company designed to be constantly
adapted as things change and new information becomes available
It is not so much about what you write but rather about how your
thinking evolves as you are writing it down
The changes that a clear plan makes in your thinking and ultimately
your destiny can be profound
Some people think that something magical takes place because even
before you take a single action events often turn in your favor


Business Start Up
Strategic Plan

Objective – one sentence statement – where, why, when
Scenario Development – different methods of achieving the
objective

Methodology
SWOTTING PESTS WITH SWAG NUMBERS


Business Start Up

Creating Your Business Plan

Purpose Values and Vision
Current Reality
One year Outcomes
Strategies
Action Plan


Business Start Up
The Numbers Game

Your plan has to be quantified
3 years forecasted Profit and Loss Accounts
1ST Years Cash Flow

“If one of you is planning to build a tower, he sits down first
and works out what it will cost, to see if he has enough money
to finish the job.”

Business Start Up

Sources of Finance
Family and Friends
Re – Mortgage Home
Overdraft
Clients
Suppliers
Loans
Equity
Government Grants

Business Start Up
Application for finance
Introduction
Cover Page
One and a half page summary
Amount Required
The Company
Reason for Funding & Benefits
Type of Funding
Repayment Period
Security
Banking Details

Business Start Up
Application for finance (Cont.)

Objectives – Personal & Company
Description of Industry – PEST & SWOT Analysis
Marketing Strategy – Target Market & Marketing Mix
USP & Positioning
Conclusion - Why sound Investment
Attachments – Sales Forecasts
Financial Forecasts
Cash Flow
Patents/Licenses/Trademarks


Plan For Failure

You will have both success and failure it is a question of how
you handle failure

Schools teach that to fail is wrong
Life teaches that we learn through failure
How did you learn to walk?
How did you learn to ride a bicycle?

When you fail
Pick yourself up, dust yourself off and start all over again

Business Start Up

Marketing and Sales

“The most important specialised skills are sales and
understanding marketing. It is the ability to sell,
to communicate to another human being,
that is the base skill of personal success”

ROBERT T. KIYOSAKI


Business Start Up
Marketing

Marketing is

Defining the needs of the Target Market

Developing a marketing mix that will satisfy these needs

PROFITABLY


Business Start Up
The Marketing Mix

Product/Service
Packaging
Price
Place/Distribution

Promotion is the method/s used to tell the target market that you
have developed a marketing mix to satisfy their needs


Business Start Up
Sales

Selling is one of the methods of promoting your product

Selling can be defined as helping other make the correct
decision


Business Start Up

Sales
Features

Descriptions

Benefits


Business Start Up
Promotional Activities

Develop a contact list - Social, Business, Sport, School, Clubs, Societies
E-mailing entire contact list
Networking – Social, Business Clubs, Networking groups,
Direct Mail
Cold calling
Reciprocal Business – Dream Team
Referrals
Advertise - Local Papers/Brochures
Articles/Talks/Books
Trade Shows
Web Site/ Monthly news letters


Minding Your Own Business

Reporting Systems

Monthly accounts must make sense to YOU and must highlight key
activities
Consider how financial reports can be linked to other activities
Numbers without comparison are meaningless
Monthly accounts and cash flow must always be compared to your
original business plan
Do not be afraid to change your plan but preferably upwards
Monthly reports must show YOU whether you are moving towards
or away from your plans to achieve PERSONAL WEALTH.

Conclusion
We have now looked at both
YOU & YOUR BUSINESS
and considered both the art of fulfillment and the science of
achievement.

Many of the more technical areas, for example production,
market research, establishing accounting systems, have
deliberately not been included in the course because
information in theses areas is feely available either from
specialists or on line.

Conclusion

You are therefore now equipped to

Create Personal Wealth by starting and successfully running
your own business

BUT

The defining factor will be
not the resources you have been given,
but your resourcefulness

Some Final Thoughts

Do not start a business to make money.
Start a business to use your talent/gifts to add value to the lives of
others
You need a reason greater than reality
Give and you will receive - learn the power of giving
Teach and you will receive - the power of learning
The 3 most important management skills are the management of:
CASH FLOW PEOPLE YOUR TIME
Choose friends carefully – the power of association
TAKE MASSIVE ACTION NOW


Final Word

Stuff it

Lets do it

(Title of a book by Richard Branson)


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