VETERAN’S BOOT CAMP Veterans Assistance and Services Program (VASP)

1. VETERAN’S BOOT CAMPVeterans Assistance and Services Program (VASP) South-West Texas Border Small Business Development Center Network UTSA-SBDC Contracting Resource Center

2. The VASP Program’s position within The UTSA Institute of Economic Development (IED): • The Veteran's Assistance Program is just one facet of the many services offered through the SBDC Contracting Resource Center.  To find out more about: • Bidmatch • Supplier/Vendor Network • Employer Services/Human Resources • The SBDC Contracting Resource Center is one of nine programs of the South West Texas Border SBDC Network. • The VASP and SWTX Border SBDC Network are a part of the UTSA Institute for Economic Development. Other Programs: • Center for Community and Business Research • Center for Economic Development • San Antonio Minority Business Enterprise Center • SBDC National Information Clearinghouse • SBDC San Antonio • SBDC International Trade Center • Southwest Trade Adjustment Assistance Center • Rural Business Program

3. Introduction of VASP Services: • The Veterans Assistance and Services Program (VASP) is here to support the men and women of the U.S. Armed Services, National Guard and Reserves in their pursuit of the "American Dream" of entrepreneurship. • VASP is sponsored by the South-West Texas Border SBDC Network and funded by a grant from the U.S. Small Business Administration to provide a wide range of resources and referrals.  We provide a one-stop point of contact for veterans and military personnel who are nascent entrepreneurs or owners of small business concerns. VASP services include: • Self-Assessment • On-line counseling • Distance learning • Web-based assessments • Government contracting assistance • Business planning and start-up assistance • Assistance with preparation to obtain bank loans and financing

4. VASP Website: http://vasp.txsbdc.org/

5. Are you Ready To Start a Business?

6. Popular Misconceptions All that’s really needed to start a business is a good idea. You have more personal freedom; you can take more vacations and make your own schedule There are lots of grants for me to start a small business (FREE $$$) Free Grant Money! Free Money for Your Small Business!

7. More Popular Misconceptions I can get rich quick. I don’t need my own money to start a business.

8. Failure Rate Over 80% of new businesses fail within the first five years; approximately half of them don’t make it through the first year.* • Two main reasons cited: • Inadequate planning • No business plan, financial plan or marketing plan • Poor location

9. Keys to Small Business Success Have a passion for your business or enjoy what you do Being able to effectively market your business Be different and better than the rest Have ideas and answers others don’t Self-Confidence Timing Willingness to invest savings Competitiveness Business & financial plan !!!

10. What you are selling? Benefit to your customers? How is your product or service different? Evaluating Your Business Idea Why will people buy from you? What is your mgmt/tech exp. with product/service?

11. Which category best represents your primary group of potential customers? General public Government Businesses Specific Industry Potential Customers

12. Select the criteria below that best represents the demographics of your customer. If selling to businesses, which category or categories best represent your primary customers? Demographics • Construction • Services • Wholesale Trade • Retail Trade • Other

13. If selling to the general public, profile your customer by: Demographics • Customer Age • Race/Ethnicity • Household Income • Geographic Location • Education Level

14. Which category best describes the sales area for your product/service? Sold locally Area of town Sold Nationally and Internationally Your Products/Services

15. How do you plan to promote your business to potential customers? Fitting the target market Promotional activities Other Business Promotion Refer to pg. 4 in EYBI

16. Describe your five most important competitors: 1. 2. 3. 4. 5. The Competition Refer to pg. 5 in EYBI

17. SWOT Analysis • Strengths (Internal) • Sustainable Competitive Advantages • Adequate financial resources • Weaknesses • poor service/delivery • poor reliability • Opportunities • Capitalize on competitor’s weaknesses • Threats • Regulatory & future competitors

18. Estimate your start-up costs

19. What do you expect your annual Revenue(Sales) to be in the first year? How many times in a 12-month period will the average customer return to purchase something? How much will the average customer spend on each visit to your business? Annual Revenue

20. Business Financing Sources of money to start your business Personal Savings Bank Loans SBA Guaranteed Loans Investor(s) Credit Cards Family and Friends Retirement Account Partners Micro Lenders – Accion, CDLF, STBF. etc. Grants www.sba.gov/expanding/grants www.cfda.gov www.tsl.state.tx.us/trail/grantsearch.html

21. Business Organization Types Legal Structures Characteristics Formation Requirements 21

22. The Legal Structure of Your Business Questions You Should Ask How easy is it to set up and operate? What are the tax advantages and disadvantages? What are your potential legal liabilities? What happens to the business if you should die? How easy will it be to liquidate the business?

23. Sole Proprietorship A sole proprietorship is a business owned and operated by one person for profit.

24. Sole Proprietorship Characteristics Easiest form of business to set up and operate Profits are taxed only once Unlimited liabilities Business ends with death of owner Easy to liquidate

25. Do You Have Employees? Sole proprietors WITH employees must complete IRS form SS4 to get your FEIN (Federal Employer Identification Number) 1-866-816-2065

26. Partnership A partnership is any two or more individuals who contribute money, labor, and skill to a business and who share in its profits, losses, and management.

27. Characteristics Easy to set up and operate Profits are taxed only once Unlimited legal liability Partnership terminates upon death or withdrawal of partner, Easy to liquidate Partnership

28. Formation of Partnership Easy To Set Up and Operate No formal process required Obtain Employer Identification Number Obtain all necessary federal, state, and local licenses and permits Register Assumed Name Certificate Partnership Agreement (optional, but highly recommended)

29. Assumed Name (DBA) Register assumed name (DBA) at county clerks office at the county court house Fill out form, have notarized, file, get certified copy It is recommended that you have several names in mind when you apply Sole Proprietors and Partnerships only:

30. Corporation A corporation is formed under state and federal law. Legally, it is treated as a taxable entity, distinct from the individual shareholders who own it.

31. Corporation Types C Corporations Taxed as separate entity Potential for double taxation S Corporation Allows for pass-through taxation on gains or losses Limits Maximum of 100 shareholder All US Citizens All agree on Sub S status

32. Characteristics The most complex form of business to set up and operate. Profits may be subject to double taxation Limited legal liability Business continues after death of owner(s) Difficult and expensive to liquidate Corporations

33. Formation of a Corporation Most Complex Form of Business to Set Up and Operate File Articles of Incorporation with the Secretary of State Pay filing and license fees Prepare and adopt bylaws

34. Obtain corporate minute book, corporate seal, stock certificates and other desired supplies Follow corporate formalities Hold scheduled shareholder meetings Maintain Minute Book up-to-date Formation of a Corporation

35. Limited Liability Company “A business structure that is a hybrid of a partnership and a corporation. Its owners are shielded from personal liability and all profits and losses pass directly to the owners without taxation of the entity itself.”

36. Characteristics Moderately easy to set up and operate (Some formalities required) Passed through taxation Limited legal liability Business may or may not terminate upon death or withdrawal of member, depending upon operating agreement Moderately easy to liquidate Limited Liability Company

37. Formation of LLC Some Formalities Required Acquire all necessary local, state, and federal licenses and permits File articles of organization with the Secretary of State Pay filing fees ($300) Prepare and adopt operating agreement File all necessary reports with the Secretary of State

38. City and County Property Taxes Permits State Sales & Use Tax Permits Unemployment Insurance Tax Workers Compensation Insurance Franchise Tax Federal Payroll taxes Income taxes FICA Taxes and Responsibilities

39. Economic Development Dept.100 W. Houston 19th FloorSan Antonio, TX 78205 Business Licenses Building Inspections Bexar County Tax Office Health Department Information Center Zoning Certificate of Occupancy Local Resources & Requirements

40. State Resources & Requirements Texas Workforce Commission Personnel Policies & Handbook Drug Free Workplace Employee New Hire Reporting State Comptroller State Sales Tax Secretary of State Licenses and Permits

41. Federal Resources & Requirements Internal Revenue Service Circular E – Publication 15 Employee vs. Independent Contractor Office in the Home OSHA Equal Employment Opportunity Commission Employee vs. Independent Contractor

42. Regardless of what anyone else says, how much do YOU want it? Can you afford to work for yourself? The Risk:

43. Your Financial Snapshot Income versus Expenses Net (positive or negative) Cash Flow Net Worth (=Assets – Liabilities) What personal assets can I use as additional collateral?

44. Developing a Business Plan Executive Summary Introduction Product & Service Definition Manufacturing/Operations Market Analysis Sales Strategy Management Plan Financial Analysis Supporting Documents

45. Business Professional Team • SBDC Business Advisor • Attorney • Banker • Insurance Agent • CPA, Accountant or Bookkeeper

46. Action Steps Evaluate your business idea Prepare a Business Plan Attend SBDC Bus. Plan workshop Work with SBDC advisor Review business plan Review financial plan Assist with loan forms/documents Register with appropriate agencies

47. New Start-Up Checklist: Double Click each heading

48. http://vasp.txsbdc.org/

49. For Assistance call: AARON C. SAMS SENIOR BUSINESS DEVELOPMENT COUNSELOR PHONE: 210-458-2948 EMAIL: AARON.SAMS@UTSA.EDU Visit our website: http://vasp.txsbdc.org/

50. Thank you for viewing our Veteran’s Boot Camp!