CARA BINA PENDAPATAN PASIF HARIAN RM9000 BERMODALKAN RM30 DI TDC
Basics of Starting a Business A to Z
1. Leading Edge Business Strategies
How to Make the Leap to StartingHow to Make the Leap to Starting
Your Own BusinessYour Own Business
Presented byPresented by
William E. Rogers, MBA, CFP, EAWilliam E. Rogers, MBA, CFP, EA
2. Leading Edge Business Strategies
The Entrepreneurial MindsetThe Entrepreneurial Mindset
1.) Identify the pain:
Is there a pain that you feel that others might be
feeling?
Examples: lack of reliable cell phone coverage in your
home, on demand medical advice 24/7, lack of affordable
daycare close to home, etc.
2.) Develop the concept:
What are some potential solutions to easing this pain?
Who would be an appropriate customer for this type of
product / service offering
3. Leading Edge Business Strategies
SWOT AnalysisSWOT Analysis
What are your strengths?What are your strengths?
What are your weaknesses?What are your weaknesses?
Are there any opportunities that you foresee?Are there any opportunities that you foresee?
Are there any potential threats?Are there any potential threats?
4. Leading Edge Business Strategies
Generic Competitive StrategiesGeneric Competitive Strategies
5. Leading Edge Business Strategies
Law of Competitive AdvantageLaw of Competitive Advantage
The value received (benefits) must exceed the costThe value received (benefits) must exceed the cost
incurred of the product / service.incurred of the product / service.
If you fail to do so, then you are vulnerable to attack.If you fail to do so, then you are vulnerable to attack.
Therefore, in order to obtain a competitive advantage,Therefore, in order to obtain a competitive advantage,
you must perform a set of activities that are differentyou must perform a set of activities that are different
from competitors.from competitors.
6. Leading Edge Business Strategies
Setting Yourself ApartSetting Yourself Apart
In today’s highly competitive environment, you must beIn today’s highly competitive environment, you must be
able to distinguish yourself from competitors.able to distinguish yourself from competitors.
Otherwise, clients can only judge you based uponOtherwise, clients can only judge you based upon
price.price.
What is your Unique Selling Proposition?What is your Unique Selling Proposition?
What do you do differently in your firm that can giveWhat do you do differently in your firm that can give
you a competitive advantage?you a competitive advantage?
7. Leading Edge Business Strategies
Steps to Building a StrategySteps to Building a Strategy
Conducting analysisConducting analysis
Where are you?Where are you?
Establishing objectivesEstablishing objectives
Where do you want to go?Where do you want to go?
Creating the strategyCreating the strategy
How will you get there?How will you get there?
8. Leading Edge Business Strategies
Elements of Marketing StrategyElements of Marketing Strategy
1.) Customer Analysis1.) Customer Analysis
Customer behavior and needsCustomer behavior and needs
What is occurring in the market? Is it growing or in decline?What is occurring in the market? Is it growing or in decline?
2.) Competitor Analysis2.) Competitor Analysis
Who are your competitors?Who are your competitors?
What will they do?What will they do?
3.) Company Analysis3.) Company Analysis
Economic analysis (cost structure, breakeven, profit centers, etc.)Economic analysis (cost structure, breakeven, profit centers, etc.)
Company fit (culture, resources, mission, etc.)Company fit (culture, resources, mission, etc.)
9. Leading Edge Business Strategies
Identifying Your Target MarketsIdentifying Your Target Markets
Which markets are you trying to target?Which markets are you trying to target?
Small business owners, retirees, teachers, etc.?Small business owners, retirees, teachers, etc.?
What are some of the special needs unique to these markets?What are some of the special needs unique to these markets?
How can you add value compared to others in this market?How can you add value compared to others in this market?
Are there specific segments within your target markets?Are there specific segments within your target markets?
Industry, geographic, demographic profile, or psychological profileIndustry, geographic, demographic profile, or psychological profile
What changes do you see occurring in these target markets? Are they in growth,What changes do you see occurring in these target markets? Are they in growth,
decline, or leveling off?decline, or leveling off?
Are there some potential target markets within your client base that you may notAre there some potential target markets within your client base that you may not
be aware of?be aware of?
10. Leading Edge Business Strategies
Marketing Mix StrategiesMarketing Mix Strategies
Product / ServiceProduct / Service
Develop a physical configuration of the features of your products and servicesDevelop a physical configuration of the features of your products and services
with its intended positioning.with its intended positioning.
PricePrice
How does your pricing communicate value?How does your pricing communicate value?
What position in the market are you trying to achieve with your pricing?What position in the market are you trying to achieve with your pricing?
PromotionPromotion
How do you build awareness about your firm’s capabilities?How do you build awareness about your firm’s capabilities?
Place (Distribution)Place (Distribution)
Where do you deliver your services? At your office, at the client’s home or placeWhere do you deliver your services? At your office, at the client’s home or place
of business? Are there any opportunities for online?of business? Are there any opportunities for online?
11. Leading Edge Business Strategies
Creating Your ScorecardCreating Your Scorecard
Now that we have created your strategy, we need to translate yourNow that we have created your strategy, we need to translate your
vision and strategy into a series of actions.vision and strategy into a series of actions.
Financial MeasuresFinancial Measures – To succeed financially, how should we– To succeed financially, how should we
appear to you?appear to you?
Customer MeasuresCustomer Measures – To achieve our vision, how should we– To achieve our vision, how should we
appear to our customers?appear to our customers?
Internal Business ProcessInternal Business Process – To satisfy our customers, what– To satisfy our customers, what
must we excel at?must we excel at?
Learning and GrowthLearning and Growth – To achieve our vision, how will we– To achieve our vision, how will we
sustain our ability to change and improve?sustain our ability to change and improve?
12. Leading Edge Business Strategies
Steps to Forming Your BusinessSteps to Forming Your Business
1.) Select choice of entity
2.) Obtain a Federal Employer Identification Number (EIN)
Generally, an EIN is required in the following circumstances:
If you pay wages to one or more employees, operate a pension
plan, pay excise taxes, or
Operate as a partnership, LLC, corporation, or some other entity.
3.) File a Fictitious Business Name Statement
A fictitious business name statement is required when a business uses a
trade name that is different than the legal name of the business or the
surname of the proprietor.
4.) Open a bank account for the business
13. Leading Edge Business Strategies
5.) Apply for a seller’s tax permit / reseller’s license
6.) Apply for a local business license / tax certificate
You will need to obtain a local business license / tax certificate from the
cities or towns in which you plan to operate your business.
7.) Obtain any licenses or permits required to sell your product or service.
Certain businesses are required to obtain special licenses or permits from
either the federal, state, or local government prior to commencing
business.
14. Leading Edge Business Strategies
Framework for Selecting an EntityFramework for Selecting an Entity
Raising Capital
Distributions Compensation
Administration
Liability
CHOICE OF ENTITY
15. Leading Edge Business Strategies
Major Differences Between LLC’s and CorporationsMajor Differences Between LLC’s and Corporations
Limited Liability CompaniesLimited Liability Companies:
Owners are called members
LLC’s are established by filing an
Articles of Organization
The governing document of an LLC is
the Operating Agreement
Members are represented by managers
Generally, must use a required year.
Generally, taxed as a partnership, but
can elect to be taxed as a corporation. If
owned by a single member, then it is
taxed as a sole proprietorship.
Member basis is determined by profits,
losses, capital contributions,
withdrawals, and share of recourse
liabilities.
Corporations (C &S)Corporations (C &S)::
Owners are called shareholders or
stockholders
Corporations are established by filing an
Articles of Incorporation
The governing document of a corporation are
the By Laws
Shareholders elect are represented by
officers and directors
Can use any year unless the corp elects to be
treated as an S Corp.
Taxes are paid on the profits at the corporate
level unless the corp elects to be treated as
an S Corp.
Shareholder’s basis is usually determined by
capital contributions only, unless the corp
elects to be treated as an S Corp.
16. Leading Edge Business Strategies
Major Differences Between C and S CorporationsMajor Differences Between C and S Corporations
C CorporationsC Corporations:
Unlimited # of shareholdersUnlimited # of shareholders
No limit to classes and types of stockNo limit to classes and types of stock
No limitation on who can own stock.No limitation on who can own stock.
Can use a fiscal yearCan use a fiscal year
Tax paid on profits at corporate level. If dividendsTax paid on profits at corporate level. If dividends
are paid, then taxed again at shareholder level.are paid, then taxed again at shareholder level.
If assets are distributed to shareholders, they areIf assets are distributed to shareholders, they are
generally subject to double taxation.generally subject to double taxation.
Shareholder’s basis is usually determined by capitalShareholder’s basis is usually determined by capital
contributions only. Profits and losses of corp do notcontributions only. Profits and losses of corp do not
affect shareholder basis.affect shareholder basis.
S CorporationsS Corporations:
Limited to 100 shareholdersLimited to 100 shareholders
Limited to one class of stockLimited to one class of stock
Non-resident aliens, most corporations, IRA’s, andNon-resident aliens, most corporations, IRA’s, and
most trusts cannot own stock.most trusts cannot own stock.
Generally, must use a calendar yearGenerally, must use a calendar year
Tax paid on profits at shareholder level.Tax paid on profits at shareholder level.
Shareholders must report their distributive share ofShareholders must report their distributive share of
profit by their % of ownership.profit by their % of ownership.
If assets are distributed to shareholders, they areIf assets are distributed to shareholders, they are
generally subject to taxation at the shareholdergenerally subject to taxation at the shareholder
level.level.
Shareholder basis is usually determined by share ofShareholder basis is usually determined by share of
profits, losses, capital contributions, distributions,profits, losses, capital contributions, distributions,
and monies directly loaned to corp.and monies directly loaned to corp.
18. Leading Edge Business Strategies
For more information about thisFor more information about this
program or other programs, please feelprogram or other programs, please feel
free to contact me at (888)297-3321 or byfree to contact me at (888)297-3321 or by
email:email: william@ascendbusinessadvisory.comwilliam@ascendbusinessadvisory.com
Thank you for your attendance.Thank you for your attendance.
William E. Rogers, MBA, CFP, EAWilliam E. Rogers, MBA, CFP, EA