Sources of New Business Ideas In depth understanding of the industry or

Sources of New Business Ideas  In-depth understanding of the industry or profession - 37%  Market niche spotted – 36%  Brainstorming – 7%  Copying someone else – 4%  Hobby – 4%  Other – 11% 12

Writing a Business Plan  Clear, compelling vision  Realistic financial projections  Profile target market  Profile the industry and competition  Provide an effective management team  Well written and formatted  Keep it short  Highlight critical risks  Spell out the sources of funding  Capture attention with a great summary 13

Why do Start-Ups Fail?  Management inefficiencies  Inadequate accounting practices  No online presence  Operational mediocracy  Fear of firing employees 14

Choosing a Legal Structure  Sole proprietorship – unincorporated business owned by an individual for profit  Partnership – an unincorporated business owned by two or more people  Corporation – an artificial entity created by the state and existing apart from its owners 15

16 Relative Percentages of Sole Proprietorships, Partnerships, and Corporations in the United States Total Sales Receipts of Sole Proprietorships, Partnerships, and Corporations in the Unites States Types of Legal Structures in Comparison Source: “Statistics of Income,” The Internal Revenue Service website at (accessed January 5, 2014).