[Liftoff Houston: Starting a Business]
[00:00:12]
I'D LIKE TO WELCOME YOU TO THE SECOND STARTING A BUSINESS WORKSHOP.
MY NAME IS BELINDA COX, AND I AM A PROGRAM SUPPORT PERSON FOR LIFTOFF HOUSTON.
WE ALSO HAVE ON THE TEAM JESSICA DEL GRECO PROGRAM SUPPORT, NIA PROGRAM SUPPORT, AND KENNA THOMAS FROM THE LIBRARY PROGRAM SUPPORT INFORMATION TECHNOLOGY.
SO ON THE SCREEN, THE NEXT THING WE'LL SEE IS OUR CHECK-IN.
SO IN ORDER TO GET CREDIT FOR ATTENDING THE WORKSHOP, YOU HAVE TO CHECK IN.
YOU CAN EITHER USE THE QR CODE OR YOU CAN SCAN THE LINK.
UM, YOU CAN SCAN THE, THE QR CODE WITH YOUR PHONES.
YOU CAN HIT THE LINK IN THE CHAT THAT MR. KEN THOMAS JUST PUT IN.
THIS IS THE WAY THAT WE TRACK ATTENDANCE.
EVERYONE MUST ATTEND, UM, ONE OF THE WORKSHOPS, SO PLEASE BE SURE TO CHECK IN.
IF FOR SOME REASON YOU'RE HAVING PROBLEMS CHECKING IN, PLEASE SEND US AN EMAIL AT LIFTOFFHOUSTON@HOUSTONTX.GOV, AND KENNETH WILL DROP THAT IN THE CHAT AS WELL.
IF YOU HAVE ANY PROBLEMS, AGAIN, PLEASE SEND US AN EMAIL.
TODAY OUR WORKSHOP IS STARTING A BUSINESS, AND IT IS PRESENT PRESENTED BY MR. ANTHONY LOPEZ WITH PEOPLE FUND.
ANTHONY HAS BEEN A CONTINUOUS SUPPORTER OF THE LIFTOFF HOUSTON PROGRAM, AND HE WORKS FOR PEOPLE FUND.
HE IS WORKING WITH LIFTOFF HOUSTON, AND HE'S THRILLED TO BE HERE.
WE'RE THRILLED TO HAVE HIM BACK.
HE HAS A WEALTH OF SMALL BUSINESS KNOWLEDGE, AND THIS IS HIS PERSONAL MISSION STATEMENT.
HE PROVIDES GUIDANCE AND INSPIRATION TO ENTREPRENEURS THROUGH EMPOWERMENT, ENCOURAGEMENT, AND POSITIVITY.
ANTHONY LOPEZ, A L LIFELONG HOUSTONIAN, HAS EXPERIENCE IN WORKING WITH ENTREPRENEURS THROUGH FUNDING AND EDUCATION FOR OVER 30 YEARS.
HE ALSO SUCCESSFULLY OWNED AND OPERATED A CONSULTING AND BUSINESS SUPPORTING SMALL BUSINESS.
OVER THE PAST 10 YEARS, HE HAS WORKED WITH THE COMMUNITY DEVELOPMENT FINANCIAL INDUSTRY AS A BUSINESS DEVELOPMENT OFFICER, AND IS CURRENTLY WITH PEOPLE FUND AS A SMALL BUSINESS ADVISOR, PROVIDING BUSINESS COACHING FOR SMALL BUSINESSES.
HE HAS FINANCED HUNDREDS OF SMALL BUSINESSES, INCLUDING STARTUPS, AND IN MANY DIFFERENT INDUSTRIES.
DURING THE PAST FEW YEARS, HE HAS HELPED MANY STRUGGLING BUSINESSES IMPACTED BY HURRICANE HARVEY AND THE COVID-19 PANDEMIC WITH VARIOUS GRANTS AND LOAN PROGRAMS. FOR OVER 10 YEARS, HE HAS SERVED AS A PITCH JUDGE AND BUSINESS PLAN JUDGE IN PARTNERSHIPS WITH A NUMBER OF LOCAL ORGANIZATIONS, ANTHONY IS READY TO SHARE HIS EXPERTISE AND EXPERIENCE WITH YOU AND GUIDE YOU THROUGH YOUR ENTREPRENEURIAL JOURNEY TO SUCCESS.
WELL, THANK YOU SO MUCH, BELINDA.
UM, I HAD TO HAVE A JAVA JOLT.
OKAY, SO SOME OF YOU PROBABLY NEED SOME ALSO, BUT WE'RE GONNA HAVE A DIFFERENT KIND OF JOLT, OKAY? SO EVERYONE CAN UNMUTE THEMSELVES, AND PLEASE, EVERYONE UNMUTE THEMSELVES.
OKAY? AND REPEAT AFTER ME AT THE END OF THE, AT THE COUNTDOWN CHEER AT THE END, I WANNA HEAR YOUR LA YOUR LOUDEST CHEER.
ALRIGHT, WELL, THANK YOU FOR JOINING HOUSTON.
THANK YOU SO MUCH FOR JOINING US.
OKAY, SO LET'S GO AHEAD AND GET STARTED.
OH, OH, UM, UH, BELINDA'S, UM, OH, OH, WE LOST IT.
I KNOW YOU COULD GET IT, BELINDA.
SO, UM, SO WHILE, WHILE WE'RE HERE WAITING, I'LL GO AHEAD AND SHARE A LITTLE BIT OF MY STORY.
UM, LIKE BELINDA MENTIONED, UM, I WAS, UM, LIKE EVERYBODY ELSE, DEEPLY IMPACTED BY THE PANDEMIC.
[00:05:01]
BUSINESSES, UM, THAT APPLIED FOR GRANTS AND LOANS.AND THEN WHEN I WOULD HAVE CONVERSATIONS WITH THEM, TURNS OUT THAT THEY DID NOT DO THE BASIC STEPS TO LAUNCH A BUSINESS.
AND SO I WOULD HAVE THESE CONVERSATIONS, AND THEN THEY WOULD BE LIKE, WELL, NOBODY EVER EXPLAINED THAT TO ME.
AND THEY WERE VERY WELL QUALIFIED BUSINESSES FOR PROGRAMS, BUT THEY JUST DID NOT HAVE THE PROPER DOCUMENTATION OR THE BASIC STEPS TO, UH, THAT A LENDER OR GRANT PROVIDER OR EVEN, UM, A FINANCE, UM, LIKE, UM, LIKE A GOVERNMENT ENTITY WOULD REQUIRE.
SO, UM, AFTER THAT EXPERIENCE, I DECIDED TO CHANGE MY CAREER PATH FROM A LENDER TO AN EDUCATOR.
UM, IF YOU DO NOT HAVE, WANT SOMETHING THINKING LIKE THIS, CARRY A BOOK, A SMALL BINDER TO HELP YOU GET STARTED.
SO THAT WAY YOU CAN WRITE NOTES ON IT, BECAUSE I'VE HAD CONVERSATIONS ON A NUMBER OF OCCASIONS, SAY LIKE, CAN YOU REPEAT WHAT YOU SAID? OR, I DON'T REMEMBER WHAT, UH, WHAT HE SHARED WITH ME OR SOMEONE ELSE SHARE WITH ME.
SO IT'S ALWAYS GOOD, UH, WHEN YOU HAVE GO INTO A PRESENTATION LIKE THIS TO CARRY A BOOK.
OKAY? THIS IS YOUR ENTREPRENEURIAL, UH, GUIDEBOOK, SO ALWAYS CARRY IT WITH YOU.
OKAY? SO WE'RE GONNA TALK ABOUT STARTING A BUSINESS IN HOUSTON, TEXAS.
AND, UH, THAT, UM, BELOW IS MY CONTACT INFORMATION, AND WE CAN PUT IT UP AGAIN, BUT LIKE, UH, IF YOU NEED, UH, IT IS DIFFICULT TO REACH ME BY PHONE.
BEST MEAN IS TO EITHER SCHEDULE A ZOOM CALL ON MY CALENDLY LINK OR TO, UH, EMAIL ME DIRECTLY.
SO THINGS TO CONSIDER BEFORE YOU BEGIN, OKAY? SITE ON A BUSINESS IDEA, RESEARCH YOUR MARKET, UH, TO UNDERSTAND IF THERE'S A NEED.
CONSIDER YOUR PERSONAL EX UH, CIRCUMSTANCES, TIME AND FINANCES.
UM, DO YOU HAVE EXPERIENCE IN THE INDUSTRY YOU HAVE CHOSEN? AND ARE YOU READY TO COMMIT TO AN ADDITIONAL FULL-TIME SCHEDULE? OKAY.
SO A LENDER, UM, OR I WORK AT A-C-D-F-I, COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION.
AND WHAT WE DO IS WE PROVIDE, UH, GUIDANCE AND FUNDING FOR BUSINESSES, ESPECIALLY GUIDANCE, RIGHT? UH, ESPECIALLY FOR STARTUPS.
WE FINANCE QUITE A FEW STARTUPS.
AND I'VE HAD, FORTUNATELY, THIS DOESN'T HAPPEN TOO OFTEN, BUT WHAT, UM, UM, WHAT, UH, SOMETIMES A CUSTOMER WILL SAY IS JUST LIKE, WELL, I WANNA BORROW MONEY FOR THIS, UH, STARTUP BUSINESS.
AND I SAY, OKAY, WELL, TELL ME A LITTLE BIT ABOUT WHAT YOU WANNA DO.
AND IT'S LIKE, WELL, I DON'T KNOW EXACTLY.
UM, AND SO THAT, SO MY, I EXPLAINED TO THEM, LIKE, IT MAY BE BEST THAT YOU GO AHEAD AND, UM, AND WRITE DOWN A BUSINESS PLAN, ALL RIGHT? UH, OR NARROW DOWN WHAT YOU WANNA DO, BECAUSE, LIKE, UH, 'CAUSE LIKE IN ORDER TO HAVE A CONVERSATION WITH A LENDER, YOU NEED TO HAVE AN IDEA.
WE'D LOVE TO HELP YOU, BUT YOU, WE, WE CAN'T HELP YOU IF YOU DON'T KNOW WHAT, WHAT YOUR TYPE OF BUSINESS YOU'RE GONNA START.
WE'RE GONNA KE KEEP, UM, ANSWER ALL QUESTIONS AT THE END OF THE PRESENTATION.
SO, UM, UM, SO, UM, THANK YOU FOR YOUR PATIENCE.
OKAY? JUST WRITE IT DOWN SO THAT WE WON'T FORGET.
OKAY? SO THE SECOND POINT IS RESEARCH YOUR MARKET TO UNDERSTAND IF THERE'S A NEED.
OKAY? SO THE MOST SUCCESSFUL ENTERPRISES THAT I'VE, UH, HELPED IS LIKE BUSINESSES THAT HAVE IDENTIFIED THAT SUCH A THING, THE NEED, AND THEY FEEL LIKE THEY CAN FILL IN THE GAP TO SERVICE A COMMUNITY THAT IS NOT PROVIDING THAT SERVICE OR PRODUCT.
SO IT'S VERY IMPORTANT, ESTABLISHING YOUR NICHE, OKAY? UH, CONSIDER YOUR PERSONAL CIRCUMSTANCES, TIME, AND FINANCES.
OKAY? SO, UM, SO WHEN, YOU KNOW, THE PANDEMIC HAS BEEN A VERY, UH, KIND OF A GAME CHANGER ACTUALLY FOR, FOR, UM, FOR SOME BUSINESSES BECAUSE A LOT OF PEOPLE NOW, THEY CAN WORK, UM, REMOTELY FROM THEIR HOME, OR IF THEY SO DESIRE, IF IT'S NOT TOO TIME CONSUMING, THEY EVEN WORK.
UH, THEY EVEN WORK FROM THEIR, THEIR WORK FACILITY.
AND, UM, AND SO THEY HAVE THE ABILITY TO JUGGLE TWO BALLS AT THE SAME TIME.
AND SO THEY'RE ABLE TO, TO, TO WORK ON, ON THAT TYPE OF SCHEDULE.
SO IT'S VERY IMPORTANT THAT TO SEE WHAT YOUR SCHEDULE IS ON, ON, ON YOUR, AS FAR AS YOUR PERSONAL CIRCUMSTANCES.
OKAY? UM, DO YOU HAVE EXPERIENCE IN THE INDUSTRY YOU HAVE CHOSEN? OKAY, THE MOST, VERY IMPORTANT, RIGHT? UM, I, THIS SEEMS TO BE THE MOST COMMON THING.
UH, PEOPLE WANNA RUN A RESTAURANT, A VERY LIMITED EXPERIENCE.
THEY SAY, WELL, UH, IT SEEMS PRETTY EASY.
AND IT'S JUST LIKE, WELL, EVEN THOUGH YOU MAY HAVE EXPERIENCE IN ALL THAT, UNLESS YOU'VE ACTUALLY OPERATED A KITCHEN,
[00:10:01]
IT'S A COMPLETELY DIFFERENT ENVIRONMENT.SO IT'S ALWAYS BEST TO PRACTICE WHAT, WHAT YOU ALREADY HAVE A SKILL AT, UH, PERFECTING YOUR SKILLSET.
UM, ALSO TOO, ARE YOU READY TO COMMIT TO AN ADDITIONAL FULL-TIME SCHEDULE? SO MY MY RECOMMENDATION, UH, MO UH, MOST LENDERS WILL TELL YOU THIS.
UM, IF YOU CAN, UH, KEEP YOUR DAY JOB, OKAY, AND DO, AND DO THIS GIG ON THE SIDE, IN THE EVENINGS OR IN THE WEEKENDS, AND AS YOUR, AND AS YOUR PRODUCTION INCREASES, YOUR REVENUES INCREASE, IT MAY COME TO A POINT WHERE, TO WHERE IT'S LIKE, YOU KNOW WHAT? I CAN BECOME SELF-SUFFICIENT AT THIS JOB.
SO MAYBE IT'S TIME FOR ME TO, UM, TO JUST GO AHEAD AND QUIT AND, AND, UH, DO THIS PROJECT FULL-TIME.
SO IT'S VERY IMPORTANT, UM, 'CAUSE A LENDER WILL LOOK AT TO SEE IF YOU HAVE THE ABILITY TO PAY BACK A LOAN, UM, IF YOU'RE EMPLOYED.
OKAY? UH, SECOND THING, PLEASE.
THE SECOND, UH, NEXT SHEET, HOW DO WE BEGIN? OKAY? SO COMPLETE A BUSINESS PLAN BEFORE YOU JUMP INTO BUSINESS.
VERY IMPORTANT, OKAY? SO THE BUS, YOUR BUSINESS PLAN IS YOUR MAP, YOUR ROADMAP TO SUCCESS.
UM, THE MOST, THERE'S NO GUARANTEE OF IT, BUT YOU'RE MORE THAN LIKELY TO SUCCEED IF YOU DO HAVE A BUSINESS PLAN.
AND SO, UH, I CAN'T TELL YOU HOW IMPORTANT THAT IS.
AND MOST FINANCIAL INSTITUTIONS, INCLUDING PEOPLE FUND, WILL REQUIRE A BUSINESS PLAN FOR STARTUP BUSINESS, DECIDE ON A BUSINESS STRUCTURE AND FILE THE NECESSARY PAPERWORK.
OKAY? SO THERE ARE DIFFERENT TYPE OF BUSINESS STRUCTURES TO START YOUR BUSINESS, AND WE'LL GO OVER THAT IN A, IN JUST A FEW MINUTES, UNDERSTAND, UH, WHAT TAXES MAY BE APP APPLICABLE TO YOUR BUSINESS.
OKAY? SO CAN'T ESCAPE UNCLE SAM.
OKAY? SO THAT'S ONE OF THE, UH, TAXES, BUT THERE'S ALSO STATE TAXES, AND THERE'S ALSO, UH, CITY TAXES, WHICH THE CITY OF HOUSTON WOULD APPRECIATE YOU PAYING.
SO, UM, SO WE'LL GO OVER THOSE TAXES AS WELL, ALSO TO OBTAIN ANY LICENSES, OKAY? VERY IMPORTANT.
AGAIN, UM, THERE ARE DIFFERENT TYPES OF LICENSES REQUIRED BY THE FEDERAL, STATE, OR CITY, OR SOMETIMES EVEN THE COUNTY.
UM, SO ALSO TO OPEN A BUSINESS CHECKING ACCOUNT.
SO ONCE YOU DETERMINE A, UM, A, YOUR BUSINESS, IF IT'S GONNA BE A, A DB, A, A CORPORATION, OOC, AND YOU GET AN EIN LE LETTER, UH, EMPLOYMENT IDENTIFICATION NUMBER LETTER, AND THEN WE HIGHLY RECOMMEND THAT YOU, UH, OPEN UP A BUSINESS CHECKING ACCOUNT.
AND SO WHAT HAS HAPPENED, ESPECIALLY, UH, DURING THE PANDEMIC, PEOPLE WOULD CALL AND TELL ME, HEY, I HAVE THIS BUSINESS.
UM, AND THEN WHAT ARE THE QUESTIONS WE'D ASK IS JUST LIKE, WELL, DO YOU HAVE A BUSINESS CHECKING ACCOUNT? LIKE, NO, I'VE DEPOSITED THE MONEY IN MY PERSONAL CHECKING ACCOUNT.
WELL, YOU KNOW, SOME LENDERS, SOME, SOME GRANT EXTENDERS.
WOULD I WANNA SEE, UM, A BUSINESS CHECKING ACCOUNT TO VERIFY THAT YOU ARE RUNNING A BUSINESS, RIGHT? SO IT'S REAL IMPORTANT THAT YOU OPEN UP A, THAT CHECKING ACCOUNT AND YOUR TAX PREPARER WOULD HIGHLY, WOULD LOVE YOU A LOT IF YOU DID.
OKAY? UM, UH, TAKE STEPS TO ESTABLISH YOUR BRAND IDENTITY.
AND THAT'S THE LAST TOPIC THAT WE'LL GO OVER.
IT'S VERY IMPORTANT THESE DAYS, ESPECIALLY WITH THE DAYS OF SOCIAL MEDIA, IF YOU HAVE A BRAND IDENTITY, AND THEN, UH, YOU'RE MORE THAN LIKELY, UM, TO GENERATE RESULTS.
SO, NEXT SCREEN, PLEASE COMPLETE A BUSINESS PLAN.
SO THE NEXT STREET, UH, SCREEN PLEASE.
ALRIGHT, WHAT IS IT? A WRITTEN DOCUMENT USED SHOULD DESCRIBE A BUSINESS STRATEGIC OBJECTIVES AND GOAL, AND ACTS AS A ROAD ROADMAP FOR ENTREPRENEURS AND DEFINES MARKETING, FINANCIAL AND OPERATIONAL PLANS.
SO, AS FAR AS THIS IS, THIS IS THE BEST THING THAT, THAT YOU COULD DO TO HELP YOU LAUNCH YOUR BUSINESS.
I'VE HAD EVEN HAD CONVERSATIONS WITH PEOPLE THAT WROTE A BUSINESS PLAN, AND THEY SAID, AT THE END OF WRITING IT, THEY SAID, YOU KNOW WHAT? THIS IS NOT A VIABLE BUSINESS BUSINESS THAT I'M THINKING OF.
I THINK I'M GONNA GO BACK TO THE DRAWING BOARD.
SO, YOU KNOW, IT'S, IT'S, AND THEN THEY COME TO THAT OWN CONCLUSION, RIGHT? INSTEAD OF GOING THROUGH THE TROUBLE OF MEETING UP WITH A LENDER.
SO, WHY IS IT IMPORTANT TO HAVE ONE? IT SHOWS THAT YOU ARE TAKING YOUR BUSINESS SERIOUSLY, YOU USE TO HELP BUSINESS MILESTONES, HELPS YOU UNDERSTAND YOUR COMPETITION, HELPS YOU DEFIN, EXCUSE ME, DEFINE YOUR TARGET MARKET, HELPS YOU DETERMINE YOUR FINANCIAL NEEDS AND AIDS AND MARKET RESEARCH TO DETERMINE, TO ENSURE THAT THE BUSINESS CONCEPT IS VIABLE.
OKAY? SO WHEN YOU APPROACH A LENDER, UH, OR EVEN A GRANTOR, IT'S JUST LIKE ONCE YOU HAVE THE BUSY PLAN IN PLACE OR AN INVESTOR EVEN THEN, AND THEY START ASKING YOU ABOUT IT, AND THEN YOU SAY, YOU KNOW WHAT? HERE'S MY BUSINESS PLAN.
THAT MEANS THAT YOU, THAT YOU COMMITTED TIME AND THOUGHT INTO PUTTING ONE TOGETHER.
[00:15:01]
SO THAT MEANS THAT, THAT THAT PERSON WILL FIND YOUR, YOUR PROJECT, UM, FIND YOU SERIOUS, THAT YOU'RE VERY SERIOUS AS FAR AS MOVING FORWARD, UM, IT CAN USE TO HELP ESTABLISH BUSINESS MILESTONES.NOW, THIS IS REALLY IMPORTANT.
UM, IT SEEMS TO BE A CORRELATION.
I'VE WRITTEN, I'VE READ GREAT BUSINESS PLANS, BUT THEY NEVER HAVE LIKE A START DATE.
I INTEND TO OPEN UP MY, MY BUSINESS BY THIS DATE, AND THERE'S NO, AND THERE'S NO BENCH, UH, BENCH LINE.
SO IT'S JUST LIKE, SO YOU NEED TO COMMUNICATE ON THERE, BECAUSE SOMETIMES WE HAVE GREAT IDEAS, BUT WE NEVER EXECUTE.
SO, AND THE BEST WAY TO EXECUTE, EXECUTE IS TO PUT A DEADLINE.
WHEN DO YOU PLAN? WHEN DO YOU PLAN TO LAUNCH YOUR BUSINESS? UM, HELPS YOU UNDERSTAND YOUR COMPETITION.
OKAY? SO SOMETIMES, UM, HAVING, UM, UH, GO BACK ONE, PLEASE.
UM, THOUGH, AS FAR AS ESTABLISHING YOUR COMPETITION, SOMETIMES IT'S JUST A MATTER OF GOING OVER TO YOUR COMPETITORS AND SEEING, WELL, WHAT ARE THEY OFFERING? UM, AND WHAT, WHAT, HOW CAN I MAKE MY BUSINESS DIFFERENT FROM THEIRS? IS THERE, UH, IS THERE A ONE CLOSE BY? ARE THE, UM, IS IT LESS, MORE EXPENSIVE? IS THE QUALITY LESS, UH, LESS THAN WHAT I'M PROPOSING? SO YOU, YOU CAN ADDRESS THOSE QUESTIONS YOURSELF IF YOU FIND OUT WHO YOUR COMPETITION IS, UM, HELPS YOU DEFINE YOUR TARGET MARKET.
NOW, THIS IS VERY IMPORTANT, RIGHT? SO I'VE READ BUSINESS PLANS THAT SAID, UM, BASICALLY WE'RE GONNA SERVE THE WHOLE UNIVERSE.
IT'S LIKE, NO, YOU NEED TO NARROW IT DOWN, EVEN IF BY YOUR OWN NEIGHBORHOOD, SOMETIMES EVEN BY YOUR OWN BLOCK, WHO ARE YOU? WHO IS YOUR IMMEDIATE MARKET THAT'S GONNA HELP YOU SUCCEED? AND SO ONCE YOU'RE, UH, IDENTIFYING YOUR MARKET, THEN YOU, THEN YOU KNOW HOW YOU'RE GOING TO, UM, TO, UM, TO, UH, GET BUSINESS, RIGHT? SO LET'S SAY YOU HAVE A FEW BLOCKS, UM, THAT YOU KNOW YOU CAN GONNA GET 90% OF YOUR REVENUES.
WELL, IT DOESN'T MAKE TOO MUCH SENSE IF YOU, UM, GO ON TV OR MAKE YOUR RADIO ADS, BECAUSE IT'S GONNA COST QUITE A BIT FOR JUST A FEW BLOCKS THAT WHERE YOU'RE GONNA TRY TO ATTRACT BUSINESS.
SO MAYBE WORD OF MOUTH, FLYERS, UM, YOUR SOCIAL MEDIA OR LESS EXPENSIVE WAYS TO REACH OUT TO YOUR COMMUNITY.
NOW, THAT HELPS YOU DETERMINE YOUR FINANCIAL NEEDS, OKAY? THIS IS, THIS IS VERY IMPORTANT WHEN YOU, UH, APPROACH A LENDER.
SO, UM, YOU WOULD PUT, THERE'S A SECTION CALLED THE USE OF FUNDS SECTION.
AGAIN, THIS IS VERY IMPORTANT TO INCLUDE THIS, IT'S CALLED USE OF FUNDS.
SO THE USE OF FUNDS SAYING, WELL, UH, IT IS PRETTY MUCH YOUR, YOUR PROJECT COSTS, RIGHT? SO YOU NEED TO COME UP WITH A DOLLAR AMOUNT ON YOUR PROJECT COSTS, SO THAT WAY YOU KNOW HOW MUCH IT WOULD COST.
AND THEN YOU CAN CONVEY THAT TO YOUR, TO YOUR LENDER TO SEE HOW MUCH, UH, IF YOUR, YOUR BUSINESS PLAN IS FEASIBLE FOR WHATEVER DOLLAR AMOUNT THAT YOU'RE SEEKING.
AND THEN FINALLY, AIDS IN MARKET RESEARCH TO ENSURE THE BUSINESS CONCEPT IS VIABLE.
SO ALL OF THAT IS, UM, BUILT INTO ONE, RIGHT? SO, KIND OF LIKE WHAT I EXPLAINED, ONCE YOU IDENTIFY YOUR MARKET, HOW MUCH YOU NEED TO ADVERTISE, THEN IT'LL, YOU WILL HAVE THE BEST SUCCESS AS FAR AS, UH, HAVING A VIABLE PLAN.
OKAY, BUILD YOUR OWN FROM, HOW DO I CREATE ONE? BUILD YOUR OWN FROM SCRATCH.
WELL, FORTUNATELY, THE CITY OF HOUSTON IS OFFERING A BUSINESS PLAN TEMPLATE TO USE FOR THIS PROGRAM.
OKAY? THAT WOULD BE, THIS IS THE LIFT OFF HOUSTON PROGRAM.
SO USE THE LIFTOFF, UH, PROGRAM TEMPLATE, UM, USE A BI AND, UM, WELL, WE TALKED ABOUT THAT.
MAKE BUSINESS PLANNING SOFTWARE SUCH AS LIFE PLAN.
BUT FOR PURPOSES, THIS IS PROGRAM USE, THE LIFTOFF, UM, BUSINESS PLAN TEMPLATE.
WHAT'S INCLUDED IN A BUSINESS PLAN, EXECUTIVE SUMMARY, COMPANY, COMPANY DESCRIPTION, UM, MARKET ANALYSIS, ORGANIZATION AND MANAGEMENT SERVICE, OR PRODUCT LINE MARKETING AND SALES FUNDING REQUESTS, FINANCIAL PROJECTIONS, AND APPENDIX.
WELL, EXECUTIVE SUMMARY IS PRETTY MUCH, I WOULD RECOMMEND THAT YOU DO THE EXECUTIVE SUMMARY LAST.
PUT ALL THE OTHER ITEMS FIRST, AND THEN YOU'LL HAVE AN IDEA AS TO WHAT, WHAT YOU WANNA PUT IN YOUR SUMMARY.
IT'S A SUMMATION, BASICALLY, OF WHAT YOU WROTE EARLIER.
SO I'LL PUT THE EXECUTIVE SUMMARY FIRST, UH, LAST, EXCUSE ME, AFTER YOU COMPLETE THE REST OF THE BUSINESS PLAN.
OKAY, SO WE ALREADY DISCUSSED THE COMPANY, WELL, I GUESS WE DID THE COMPANY DESCRIPTION.
SO WHAT YOU WOULD NEED TO DO IS WHAT ARE YOU GONNA OFFER? WHAT DO, UM, HOW ARE YOU GONNA, UM, PRESENT IT? UM, MARKET ANALYSIS.
HOW ARE YOU GONNA MARKET YOUR PRODUCT, RIGHT? ORGANIZATION AND MANAGEMENT.
OKAY? ANOTHER, THIS, YOU MIGHT WANNA JOT
[00:20:01]
THIS DOWN AS WELL.UM, IS IT DEPENDING, LIKE IF IT'S AN LLC OR CORPORATION OR EVEN A PARTNERSHIP.
SO ADDRESS, WHO IS THE, WHO ARE THE OWNERS OF THE BUSINESS? INCLUDE THE PERCENTAGE OF EACH PERSON THAT HAS AN OWNERSHIP INTEREST IN THE BUSINESS.
BECAUSE LIKE, UM, UM, YOU KNOW, FOR, FOR LENDING PURPOSES, OR EVEN FOR GRANT PURPOSES, THEY WANNA KNOW WHO OWNS THE BUSINESS.
SO THAT WAY YOU MAY, THEY KNOW, UM, WHO'S GONNA EITHER PERSONALLY GUARANTEE THE LOAN OR WHO IS THE DECISION MAKER ON IT.
UM, SO THAT'S REALLY IMPORTANT.
UM, SERVICE OR PRODUCT LINE, SELF-EXPLANATORY.
YOU JUST, JUST BASICALLY REFLECT THAT MARKETING AND SALES.
HOW ARE YOU GONNA MARKET YOUR BUSINESS FUNDING REQUESTS, OKAY, THAT USE OF FUNDS THAT I, THAT I REFERRED TO EARLIER.
SO YOU NEED TO HAVE THAT USES OF FUNDS AVAILABLE SO THAT WAY YOU CAN SEE, WELL, WHAT, THIS IS THE DOLLAR AMOUNT THAT I'M SEEKING.
OKAY? SO THIS IS VERY IMPORTANT, UM, BECAUSE LIKE YOU WANNA, UM, YOU'RE IN THE BUSINESS OF MAKING MONEY, AND SO YOU NEED TO FIND OUT WHAT YOUR BREAK EVEN LEVEL IS.
YOUR BREAK EVEN BEING, HOW MUCH DO YOU EXPECT TO GENERATE FROM REVENUES, MINUS YOUR EXPENSES, COVERING ALL YOUR EXPENSES.
AND THAT'S, AND IF YOU HAVE A ZERO, UH, NET PROFIT AT THE END, AND THEN THAT'S YOUR BREAKEVEN, AND THEN YOU, NOW YOU HAVE THAT BENCHMARK, AND NOW YOU NEED TO KNOW, NOW NEED TO FIGURE OUT HOW MUCH MORE CAN YOU START TO MAKE MONEY AND MAKE IT A REAL PROFIT.
OKAY? AND FINALLY, APPENDIX, YOU CAN INCLUDE IN THEIR, UM, YOUR, UH, YOUR RESUMES.
UH, YOU CAN PUT ON THERE ANY SPECIAL CERTIFICATIONS OR AWARDS.
THAT WOULD BE THE PLACE TO PUT IT.
THE SITE ON THE BUSINESS STRUCTURE, NEXT PAGE.
OKAY, SO THERE ARE FOUR TYPES THAT WE LOOK AT.
SOLE PROPRIETORSHIP, PARTNER, UH, LIMITED LIABILITY COMPANY, ALSO KNOWN AS LLC, AND CORPORATION, EITHER C OR S CORP.
THE NEXT PAGE, THE PROS OF A SOLE PROPRIETORSHIP.
IT'S SIMPLE TO SET UP, UH, MINIMAL COSTS, NO CORPORATE BUSINESS TAX, AND NO SPECIAL ANNUAL REPORTING.
IT'S JUST AS SIMPLE AS GOING TO THE LOCAL COUNTY OFFICE AND OPENING ONE UP.
I THINK IT'S 30, $35, OR YOU CAN EVEN GO TO THE STATE, UH, CONTROLLER'S OFFICE AND WE'LL OPEN ONE UP THERE.
MINIMUM COST, UM, LIKE I SAID, IT'S LIKE 30, $35.
UM, NO CORPORATE BUSINESS TAX, OKAY? SO THIS IS REFLECTED ON YOUR SCHEDULE E OF YOUR TAX RETURN.
AND IF IT'S ON YOUR SCHEDULE E, THAT IS GONNA POST ON THE FRONT PAGE OF YOUR PERSONAL TAX RETURN.
SO IT'S GONNA BE, IT'S GONNA BE INCLUDED IN YOUR PERSONAL TAXES.
PRETTY BASIC, A LOT OF BUSINESSES START UP WITH THE DPA, UH, BECAUSE IT'S SO SIMPLE, AND IT'S ALSO, UM, AN EXPENSIVE MEANS OF, OF STARTING A BUSINESS.
THE CONS, NO LIABILITY PROTECTION.
OKAY? SO THE DBA A IS IN YOUR PERSONAL NAME.
SO THAT MEANS THAT MAYBE YOUR, YOUR PERSONAL NAME, UM, IF THERE'S SOMETHING GOES BAD, THEN YOU, YOU MAY BE PERSONALLY RESPONSIBLE AS WELL.
I'M SORRY, I SHOULD HAVE SAID THIS BEFORE I STARTED.
I'M NOT A REAL ESTATE AGENT, AND I'M DEFINITELY NOT AN ACCOUNTER OR, OR BOOKKEEPER.
I AM A LENDER THAT HAS BEEN IN BUSINESS FOR OVER 30 YEARS, AND I'VE HELPED QUITE A FEW BUSINESSES.
AND I'M SHARING WITH YOU BEST PRACTICE, UM, NOT ONLY FROM A PROPRIETOR POINT OF VIEW, BUT ALSO FROM A LENDER'S POINT OF VIEW ON WHAT A LENDER WILL LOOK FOR.
OKAY? ALRIGHT, LET'S GO, LET'S CONTINUE MOVING FORWARD.
UM, NO, UM, ONGOING BUSINESS LIFE.
UM, SO YES, IT'S ONLY A LIMITED LIFE UNLESS YOU EXTEND TO RENEW, UH, YOUR DBA.
UH, IT CAN BE DIFFICULT TO RAISE MONEY.
UH, WELL, NOT WITH A-C-D-F-I, MAYBE FOR THE FINANCIAL INSTITUTIONS, BUT A-C-D-F-I, UH, COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION IS OPEN TO A DBA AND CAN BE DIFFICULT TO ESTABLISH A BUSINESS CREDIT INQUIRY IDENTITY.
SO, DB, UM, THE, UM, UM, THERE ARE THREE TYPES OF, UM, BUSINESS, UH, EXCUSE ME, CREDIT, UH, BUSINESS CREDIT REPORTING, UM, TRANSUNION, EQUIFAX, AND DUN AND BRADSTREET.
SO, AND ACTUALLY THERE'S ONE MORE.
UM, BUT THOSE ARE THE THREE PRIMARY ONES.
FAIRLY SIMPLE TO SET UP, SHARED WORKLOAD, SHARED COSTS, AND GREATER CAPACITY.
OKAY, AGAIN, UH, I, I THINK THE CORPORATE DOCUMENT ON THIS ONE IS CALLED THE PARTNERSHIP AGREEMENT.
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SHARE THE WORKLOAD AND RESPONSIBILITY, UM, WITH YOUR OTHER MEMBERS.SHARED COSTS, SAME THING, AND GREATER CAPACITY BECAUSE THEY'RE MORE, UH, PEOPLE ON THE DI ON THE BUSINESS.
THEN YOU HAVE THE ABILITY TO, TO CHANCES OF, UM, REFLECTING INCOME TO PAY THE LOAN A LOT EASIER.
UM, THE CONS ARE NOT THE SOLE DECISION MAKER, OKAY? SO THERE'S SEVERAL DS THAT A LENDER WILL LOOK AT ON ONE OF THEM, UH, THAT IS DISASTROUS FOR A COMPANY, AND ONE OF THEM IS CALLED DEADLOCKED.
SO IF YOU HAVE A 50 50% OWNERSHIP, UM, THE, UM, IF ONE OWNER OR ONE PARTNER DECIDES ON ONE THING, ANOTHER PARTNER DECIDES ON ANOTHER THING, AND THEY CAN'T MAKE UP THEIR MIND.
AND SO THE, THE COMPANY CAN'T MOVE FORWARD, RIGHT? THEY'RE DEADLOCKED.
SO SOMETIMES IT EVEN RESULTS IN INSOLVENCY.
THEY JUST CAN'T, THEY JUST CAN'T, UH, DECIDE WHO WELL, WHAT, WHAT DECISION TO MAKE.
SO IT CAN BE, THAT'S, THAT'S A MAJOR CON TO THIS TYPE OF, UM, PART, UM, BUSINESS ENTITY, UM, SPLITTING OF PROFITS AND LOSSES.
NOW, OF COURSE, YOU, YOU WOULD NEED TO SPLIT IT UP 50 50, UH, TRADITIONALLY VERY INFORMAL.
UM, SOME AS THE BUSINESS GROWS, THEN A LENDER WILL WANT TO SEE A MORE FORMAL RELATIONSHIP, UH, BUSINESS ENTITY.
AND AGAIN, NO LIABILITY PROTECTION.
YOU ARE PERSONALLY INVOLVED AS WELL.
LLC, LIMITED LIABILITY COMPANY PROS, FLEXIBILITY AND HOW YOU ARE, ARE TAXED MEMBERS, HAVE LIABILITY PROTECTION, CAN HAVE AS LITTLE AS ONE MEMBER AND EASIER TO ESTABLISH A SEPARATE CREDIT AND ENTITY.
OKAY? FLEXIBILITY AND HOW YOU ARE TAXED.
OKAY? SO, UM, LIKE IF YOU CAN BE TAXED LIKE ON K ONE, UM, ON IT.
AND SO, UH, ALSO I THINK MAYBE SCHEDULE C, THIS IS LIKE THE TAXPAYER, UM, COULD GIVE US, GIVE YOU SOME GUIDANCE THERE.
MEMBERS HAVE, HAVE LIABILITY PROTECTION.
AGAIN, 'CAUSE IT'S NOT A DBA OR A PARTNERSHIP.
YOUR, YOUR PERSONAL NAME IS NOT INCLUDED ON THE, ON THE BUSINESS NAME.
SO YOU HAVE A BIT MORE PROTECTION, UH, CAN'T HAVE AS LITTLE AS ONE MEMBER.
UM, YES, THAT'S, THAT'S VERY GOOD.
IF, UH, IN LIEU OF A DBA, YOU CAN ALSO HAVE AN LC AND, AND EASIER TO ESTABLISH A SEPARATE CREDIT ENTITY.
SO NOW, UH, IT'D BE EASIER TO REGISTER LIKE WHAT DUN BRADSTREET, EQUIFAX RANCH UNION.
UM, MEMBERS ARE NOT ALLOWED TO PAY THEMSELVES WAGES.
OKAY? UH, GAVE THE PRESENTATION THE LAST TIME.
THIS STRUCK A LOT OF, A LOT OF QUESTIONS.
OKAY? SO HOW YOU WOULD PAY YOURSELF UNDER THIS FORM OF ENTITY.
AGAIN, I'M NOT A FULL DISCLAIMER, I'M NOT AN ACCOUNTANT OR A TAX PREPARER, BUT LIKE, YOU CAN TAKE IT OUT IN THE FORM OF WITHDRAWAL.
IF YOU HAVE A BUSINESS CHECKING ACCOUNT, YOU CAN, ONE OF TWO WAYS TO DO IT.
YOU CAN EITHER DRAW ON YOUR BUSINESS ACCOUNT AND, AND TRANSFER IT OVER TO YOUR PERSONAL ACCOUNT, OR SIMPLY WRITE A CHECK FROM YOUR BUSINESS ACCOUNT AND DEPOSIT IT IN YOUR PERSONAL ACCOUNT.
SO IT WOULD BE TAKEN OUT IN THE FORM OF A DRAW REDUCE, UH, AFTER YOUR PROFITS.
AGAIN, THIS SOME MORE FORMAL, YOU WOULD HAVE TO FOLLOW UP WITH THE STATE.
AND SO, UH, SO YOU WOULD HAVE TO PAY A FILING FEES, UH, MOST COMMONLY WHAT'S CALLED A FRANCHISE TAX.
AND NOW THESE DAYS, UH, YOU ARE EXPECTED TO COMPLETE THAT QUARTERLY IF YOU, UH, IF YOU DID NOT, UH, PAY IN A TIMELY MANNER.
UM, AND THEN LIKE, LET'S SAY YOU APPLY FOR A LOAN, UM, THE, UM, THE, WHAT WE DO IS WE LOOK AT THE SECRETARY OF STATE WEBSITE AND IT SAYS, IF IT SAYS THAT YOU ARE NOT IN GOOD STANDING, THAT MEANS THAT YOU NEED TO PAY YOUR FRANCHISE TAX BEFORE YOU RECEIVE ANY FUNDS FROM A LOAN OR A GRANT.
SO, VERY IMPORTANT THAT YOU ARE IN GOOD STANDING.
UM, CAN HAVE ANNUAL STATE FEES.
YES, IT'S ACTUALLY QUARTERLY AND MAYBE MORE DIFFICULT TO ATTRACT TRADITIONAL INVESTORS.
AGAIN, THIS, UM, UM, YOU KNOW, UH, I DON'T KNOW.
IT, IT, IT DEPENDS, RIGHT? SO, UH, I CAN TELL YOU IT IS A LITTLE BIT EASIER TO, TO GET A LOAN THROUGH A FORMAL, UH, INSTITUTION, A FORMAL BANKING INSTITUTION.
'CAUSE THE, THE, YOUR BUSINESS IS FORMAL.
PROS, UM, FORMAL STRUCTURE WITH CLEAR ACCOUNTABILITY.
UM, YOU KNOW WHAT? I'M GONNA FEEL GUILTY IF I DON'T DISCUSS THIS.
CAN YOU GO BACK ONE, ONE SHEET? OKAY.
UM, MEMBERS HAVE, UM, LET'S SEE, CAN'T HAVE AS LITTLE AS ONE MEMBER.
OKAY? SO THE, UM, VERY IMPORTANT IF YOU HAVE MORE THAN ONE MEMBER, AND, UH, WE WILL, UH, A FINANCIAL INSTITUTION WILL WANT TO SEE WHAT'S
[00:30:01]
CALLED AN OPERATING AGREEMENT.AGAIN, WRITE THIS IN YOUR BOOK OPERATING AGREEMENT IF YOU HAVE MULTIPLE SHAREHOLDERS.
UM, THIS IS VERY IMPORTANT BECAUSE, UH, THE FINANCIAL INSTITUTION WOULD LIKE TO SEE WHAT PERCENTAGE OWNERSHIP THAT YOU HAVE IN THE BUSINESS.
ANYONE THAT TYPICALLY TYP ANYONE THAT HAS A 20% GREATER INTEREST IN THE BUSINESS, WE'LL BE REQUIRED TO PERSONALLY GUARANTEE THE LOAN.
BUT IT'S VERY IMPORTANT, UM, MAKE SURE THAT ALL, UH, ALL SHAREHOLDERS DO SIGN THE AGREEMENT, AND THEY ARE IN AGREEMENT OF THIS, UH, OF THIS, UH, DOCUMENT.
AND THIS HAS PROPOSED POSTPONED AND EVEN DECLINED SOME CLIENTS THAT DID NOT PROVIDE THAT TO US.
SO IT, IT'S VERY IMPORTANT, IT DOES NOT HAVE TO BE FILED WITH THE STATE.
UM, YOU CAN ACTUALLY PROBABLY GO ONLINE AND LOOK F1 UP FOR FREE, WHERE YOU CAN EXECUTE IT YOURSELF.
UM, BUT, UH, OF COURSE YOU RECOMMEND LEGAL COUNSEL.
OKAY, CORPORATION, UM, UM, UM, FORMAL STRUCTURE WITH CLEAR ACCOUNTABILITY.
SO, UH, SHAREHOLDERS THAT HAVE LIABILITY PROTECTION CAN SELL STOCK TO RAISE INITIAL AND ADDITIONAL CAPITAL AND EASIER TO ESTABLISH A CRED, UM, SEPARATE CREDIT IDENTITY.
SO AGAIN, UH, CORPORATION, YOU CAN, UM, THERE IS ACCOUNTABILITY.
IT'S CALLED THE BYLAWS, AND IT WILL REFLECT WHO'S RESPONSIBLE FOR WHAT.
UM, YOU WILL NEED TO HAVE A SECRETARY THAT'S LISTED.
UH, IT'S A SIGN ON THE, ON THE BYLAWS, AND THAT'S WHAT'S MAKES IT, UM, UH, OFFICIAL, RIGHT? YOU NEED TO HAVE THE SECRETARY.
THIS, UH, IT IS A FORMAL POSITION WITHIN A COMPANY.
UH, SHAREHOLDERS HAVE LIABILITY PROTECTION.
UM, ALSO TOO, UH, THE COMPANY CAN SELL STOCK TO RAISE INITIAL, UH, UH, AN ADDITIONAL CAPITAL.
SO THEY'LL, THEY'LL, THEY HAVE LIKE A PHYSICAL SHEET USUALLY.
AND THEN THEY'LL SAY, OKAY, YOU OWNED THIS MUCH, YOU GAVE US A THOUSAND DOLLARS OR $10,000.
SO IT'S A ACTUAL, UH, PHYSICAL TRANSACTION, UM, TIME CONSUMING AND TYPICALLY EXPENSIVE.
YES, THAT MAY BE THE CASE, BUT IT AGAIN, UH, IT'LL GIVE YOU A BIT MORE PRODUCTION AND A BIT MORE FORMAL WHEN YOU PRESENT, UM, YOUR CORPORATION TO A, UH, LENDER OR A GRANTOR, UH, CONS, HIGHLY REGULATED.
UM, YOU WOULD, UH, AGAIN, YOU WOULD BE REGULATED.
MAKE SURE WHATEVER YOU HAVE IN THE BYLAWS AND IN THE MINUTES OF A MEETING, UH, THAT YOU, THAT YOU ABIDE BY THOSE BYLAWS.
LIKE LET'S SAY IF YOU'RE THE BYLAWS, IT SAYS THAT YOU HAVE TO MEET UP ONCE A YEAR.
MAKE SURE YOU MEET UP ONCE A YEAR, OKAY? AND, AND VERIFY BY THE MINUTES OF THE MEETING, UM, POSSIBILITY OF DOUBLE TAXATION.
UM, YOU WILL HAVE TO, YOU'LL, THERE'S A GOOD CHANCE YOU ARE GOING TO PAY NOT ONLY PERSONAL INCOME TAX, BUT ALSO CORPORATE INCOME TAX AS WELL.
AND A HIGH LEVEL OF ANNUAL REPORTING, YOU WILL, SINCE IT'S A FORMAL ENTITY, THEN YOU WILL NEED TO HAVE, UH, FORMAL SET OF ACCOUNTING, UH, NEXT, UH, SHEET PLEASE AND AN S-CORP.
OKAY? SO AGAIN, THE PROS, LIABILITY PROTECTION THAT WE DESCRIBED EARLIER.
UH, SO THIS WILL, UH, BE ON YOUR SCHEDULE E, SO YOU'LL BE TAXED ON IT PERSONALLY.
UH, EASY TRANSFER OF OWNERSHIP.
UM, SO YOU CAN REFLECT ON THERE, UM, UH, AGAIN, ON YOUR, UM, YOUR BYLAWS, THAT WHO THE OWNERS ARE AND CRED, CREDIBILITY BASED, UH, ON MORE FORMAL STRUCTURE.
SO, UH, SO YEAH, SO IF YOU OWN A CORPORATION, THEN YES, THEN YOU'RE CONSIDERED, UM, AS, AS A MORE FORMAL BUSINESS ENTITY.
FOR THAT REASON, IT'S GONNA BE MORE DIFFICULT TO FORM.
UM, THERE ARE RESTRICTIONS ON STOCK.
THERE'S ONE CLASS OF STOCK ONLY, AND NO MORE THAN A HUNDRED SHAREHOLDERS.
HIGHER LEVEL OF REGISTRATION FROM THE IRS AND LESS FLEXIBILITY ON PROFIT AND LOSS ALLOCATION.
NEXT PAGE, PLEASE UNDERSTAND YOUR TAX REQUIREMENTS, OKAY? LOCAL TAXES.
SO THE CITY OF HOUSTON IS ON BOARD, SO THEY WOULD LOVE FOR YOU TO LAUNCH YOUR BUSINESS SO THAT WAY YOU CAN HELP, UH, HELP THEM PAY FOR SERVICES JUST SUCH AS THIS, RIGHT? THE LUNCH, WONDERFUL PROGRAMS AND SUPPORT, SUPPORT OUR CITY, UM, AND THE FORMER SALES TAX AND USE TAX STATE TAXES, UH, THEY, THERE'S SALES TAX THERE AS WELL.
UM, MOST COMMONLY, UM, THERE IS, THERE'S, UH, WE DON'T HAVE STATE INCOME TAX IN THE STATE OF TAXES, TAXES, BUT THERE'S PAYROLL TAX, AND MOST IMPORTANTLY, THE FRANCHISE TAX, IF IT'S AN LLC OR A CORPORATION THAT WOULD, YOU NEED TO HAVE TO PAY QUARTERLY TO BE IN GOOD STANDING
[00:35:01]
WITH THE STATE OF TEXAS.AND THEN THERE'S FEDERAL INCOME TAX.
UNCLE SAM COMES IN AND, AND HE'S GONNA WANT HIS CORPORATE INCOME TAX AND SELF-EMPLOYMENT TAX AND PAYROLL TAX.
SO AGAIN, IT'S VERY IMPORTANT TO HAVE THAT WHILE WE'RE ON THE SUBJECT MATTER.
AGAIN, ONE OF THE THINGS THAT GOING THROUGH THE PANDEMIC, THERE WERE A NUMBER OF BUSINESSES THAT WERE QUALIFIED FOR PROGRAMS BUT DID NOT FILE THEIR TAX RETURN.
AND, UM, AND SO THEY NEEDED TIME TO PREPARE THEM.
THE ONES THAT WERE ON SPECIAL LOAN PROGRAMS OR GRANT PROGRAMS THAT HIT DID FOLLOW THEIR TAX RETURNS WE'RE ABLE TO CAPITALIZE.
AND IF THERE WAS ANY MONEY LEFT FOR THOSE THAT DIDN'T, AND THEN THERE WAS A MAD SCRAMBLE FOR THE REST, RIGHT? SO THE BEST BEST PRACTICE WOULD BE TO PREPARE YOUR TAX, YOUR BUSINESS TAX RETURNS ON OR BEFORE APRIL 15TH.
THE SOONER THE BETTER, EVEN IF YOU'RE GOING TO BE TAXED ON IT, BECAUSE YOU MAY LOSE OUT ON OPPORTUNITIES, UM, BY THE TIME THIS PROGRAM, UH, ENDS.
LICENSES, REGISTRATIONS, AND PERMITS.
OKAY? UM, UH, I, I REFER TO THIS EARLIER EMPLOYER IDENTIFICATION NUMBER.
SO YOU WOULD GO TO IRS.GOV AND YOU CAN GET YOUR, YOUR, UM, YOUR EIN LETTER.
THAT, THAT WAY IT'S VERY IMPORTANT WHAT YOU'RE GOING, WHAT I'M ABOUT TO SHARE WITH YOU.
UM, HAVE YOUR CORPORATE DOCUMENT HANDY.
SO WHEN YOU APPLY FOR YOUR EIN DO, AS A MATTER OF FACT, DO YOUR, UH, FIRST THINGS FIRST.
ONCE YOU DEVELOP YOUR FORMAL BUSINESS ENTITY, UM, GET A PRINTOUT OF IT, AND THEN YOU CAN KEY IN THE EMPLOYEE EIN.
AND SO THIS IS VERY IMPORTANT BECAUSE LIKE I'VE SEEN, UM, SOME APPLICATIONS TO WHERE LIKE, UM, THE EIN, UH, WAS DIFFERENT FROM THE CORPORATE DOCUMENTS.
AND SO IT CREATES QUESTIONS, RIGHT? AND IT MAY DELAY YOU, IT IS GOING TO DELAY THE PROCESS.
SO IT'S VERY IMPORTANT THAT YOU KEY IN EVERYTHING CONSISTENT WITH YOUR CORPORATE DOCUMENTS, EVEN THE, THE SPELLING ON YOUR NAME.
UH, JUST, UH, EVERYTHING NEEDS TO BE CONSISTENT.
OKAY? SO THAT'S WHAT THAT WE DISCUSSED EARLIER.
UM, GENERAL, A PROFESSIONAL BUSINESS LICENSE, UM, VERY IMPORTANT.
UM, I'M THINKING OF ONE IN PARTICULAR.
UM, I'M VERY FAMILIAR WITH FINANCING RESTAURANTS.
SO ONE, ONE OF THEM IS CALLED A FOOD MANAGER CERTIFICATE.
AND SO IT DOES, THIS WOULD BE IMPORTANT BECAUSE LIKE, UH, THE CITY OF HOUSTON OR HEALTH INSPECTOR COMES BY AND THERE IS NO FOOD MANAGER CERTIFICATE RIGHT BEHIND YOUR COUNTER.
AND THEN THEY MIGHT SAY, YOU KNOW WHAT? WE'RE GONNA HAVE TO SHUT IT DOWN BECAUSE YOU NOT, YOU DO NOT HAVE SOMEONE QUALIFIED TO RUN YOUR KITCHEN.
SO VERY IMPORTANT THAT YOU GET ALL CERTIFICATIONS AND OPERATING PERMITS, RIGHT? SO, UM, THIS IS IMPORTANT.
UM, LOCAL PERMITS, AGAIN, THE OPERATING PERMIT THAT WE JUST TALKED ABOUT HAVE PERMITS DEPENDING ON YOUR INDUSTRY, SOME IN INDUSTRIES DON'T REQUIRE ANY PERMITS EXCEPT FOR MAYBE AN OPERATING PERMIT, AND SOME MAY REQUIRE A LOT DEPENDING AGAIN, ON THE INDUSTRY, YOUR CORPORATE DOCUMENTS, OKAY? ALWAYS HAVE A HANDY, UM, A PHYSICAL AND ALSO ELECTRONIC CORPORATE DOCUMENTS.
UM, IT SAYS, DO, UH, DOING BUSINESS TAX CERTIFICATE.
SO LET'S SAY YOU HAVE, UH, X, Y, Z CORPORATION, DBA AND WHATEVER YOU, UH, WHATEVER'S ON YOUR, ON YOUR BUSINESS SIDE, OKAY? SO LET'S SAY, UM, KENTUCKY FRIED CHICKEN, SO X, Y, Z COMPANY, DBA, KENTUCKY FRIED CHICKEN.
SO THAT WOULD BE AN EXAMPLE OF HOW YOU WOULD REFLECT THAT.
UH, THE DBA, AND FINALLY, EMPLOYER REQUIREMENTS.
SO SAMPLE INCLUDES, UH, W TWOS, W FOURS.
THERE ARE SOME FORMS THAT NEED TO BE, UH, FILLED OUT BEFORE CERTAIN DEADLINES.
AGAIN, HAVING A GOOD RELATIONSHIP WITH YOUR ACCOUNTANT OR BOOKKEEPER CAN GUIDE YOU THROUGH THAT.
NEXT PAGE, PLEASE OPEN A BUSINESS BANK ACCOUNT, OKAY? OKAY.
SO PREVENTS CO-MINGLING, UH, PERSONAL AND BUSINESS FUNDS VERY IMPORTANT.
OKAY? AGAIN, YOUR TAX PREPARER OR YOUR ACCOUNTANT WILL LOVE YOU IF YOU KEEP THEM SEPARATED.
IT IS VERY DIFFICULT FROM, UH, FROM A TAX PREPARATION POINT OF VIEW, FROM A LENDER'S POINT OF VIEW, FROM THE INTERNAL REVENUE SERVICE POINT OF VIEW TO DETERMINE HOW MUCH YOU'RE ACTUALLY MAKING.
AND WHEN YOU APPLY FOR A LOAN, A GRANT, AND THEN IT'S GONNA EITHER, UM, EITHER IT'S GONNA TAKE A WHILE OR IT MAY EVEN DISQUALIFY YOU IF NOBODY CAN UNDERSTAND YOUR BOOKS, VERY IMPORTANT, UM, HELPS PRESERVE LIABILITY PROTECTION FOR LCO CORPORATION.
AGAIN, THOSE SAME GUIDELINES AS IN KEEPING ACCURATE FINANCIAL RECORDS WE TALKED ABOUT THAT ENABLES THE BUSINESS TO ACCEPT
[00:40:01]
CREDIT AND DEBIT CARDS AS FORMS OF PAYMENT.AGAIN, YOU WOULD NEED TO HAVE, IT'S GONNA BE DIFFICULT TO PROCESS, UH, CREDIT OR DEBIT CARD TRANSACTION ON A PERSONAL ACCOUNT.
I DON'T EVEN THINK A BANK WILL DO THAT.
I DON'T EVEN THINK CAPITAL ONE WILL DO THAT.
UM, WILL SAVE YOU TIME AND MONEY COME TAX TIME.
SO, YES, AGAIN, YOUR TAX PREPARER WILL LOVE YOU IF YOU HAVE TWO SEPARATE, UH, UM, UH, ACCOUNTS.
OKAY? UM, THESE ARE THE RESOURCES AVAILABLE TO YOU IF YOU HAVE A, UM, BUSINESS PLANNING, BUSINESS STRUCTURE COMPARISON, UM, TEXAS CONTROLLER, TEXAS PERMIT OFFICE, AND BUSINESS COACHING.
OKAY? SO BUSINESS PLANNING, UH, BUSINESS PLANNING AND BUSINESS STRUCTURE, CORPORATION BUSINESS PLANNING SHOULD BE WHOEVER YOU'RE TEAMING WITH, UH, WITH THIS PROGRAM.
UM, SO THAT SHOULD BE YOUR POINT OF CONTACT.
YOUR, YOUR PERSONAL BUSINESS COACH.
OF COURSE, I'M AVAILABLE IF YOU HAVE ANY OTHER QUESTIONS AFTER THIS PRESENTATION, REACH OUT TO ME.
BUSINESS STRUCTURE COMPARISON, THERE'S THAT WEBSITE.
BUT LET'S GO TO THE NEXT PAGE, WHICH YOU'LL FIND VERY HELPFUL.
THE AMAZING CITY OF HOUSTON HAS PROVIDED HOUSTON SMALL BUSINESS LEGAL CONSULTATION, OKAY? SO WHAT'S CALLED PRO BONO, WHICH MEANS FREE LEGAL SERVICES, YOU ARE ENTITLED TO ONE, IF YOU RESIDE IN THE CITY OF HOUSTON.
AND THERE'S SOME OTHER, UM, REQUIREMENTS IN ORDER TO QUALIFY FOR THIS PROGRAM, GREAT REC, UH, I RECOMMEND THAT YOU USE IT.
UM, AND SO THAT WAY, UH, YOU CAN, YOU CAN CAPITALIZE ON THIS FREE SERVICE THAT THE CITY OF HOUSTON HAS GENEROUSLY PROVIDED.
AND THEN, UM, AND THEN, UM, IF YOU HAVE ANY QUESTIONS REGARDING YOUR BUSINESS FORMATION OR, OR ANY OTHER KIND OF QUESTION, UM, JUST GO TO THAT HOUSTON TECHS.GOV, OBO AND THEY CAN PROVIDE YOU ASSISTANCE.
UM, ONE THING THAT, UH, I DIDN'T DISCUSS, UM, BUT TO ME IT'S VERY IMPORTANT, UH, IS A BUSINESS LEASE.
OKAY? BEFORE YOU, UH, SIGN ON A BUSINESS LEASE, PLEASE, UM, PLEASE GET WITH YOUR ADVISOR, GET WITH ME, GET WITH HOUSTON TEXT.GOV, BECAUSE, UM, YOU DON'T WANNA SIGN A COMMITMENT AND BE OBLIGATED AFTERWARDS.
SO, UM, THIS IS REALLY IMPORTANT THAT YOU, THAT YOU, UH, THAT YOU LEAN ON YOUR RESOURCES BEFORE YOU SIGN THAT LEASE.
AND SO WE'LL WALK YOU THROUGH THAT PROCESS, OKAY? SO THANK YOU VERY MUCH FOR YOUR TIME.
NOW, WE WILL GO AHEAD AND, UH, ACCEPT QUESTIONS, YOUR QUESTIONS NOW.
SO PLEASE, UH, FEEL FREE TO ASK AWAY THE CHAT IF YOU ALL HAVE ANY QUESTIONS IN THE CHAT, OR IF YOU WANT TO RAISE YOUR HAND, WE'LL ACKNOWLEDGE YOU.
I SEE DEA JONES, CAN YOU UNMUTE YOURSELF AND ASK HER QUESTION? OKAY? YES.
UM, WHAT I WANTED TO GET SOME CLARITY ON IS, UM, UM, I KNOW THAT THE SPEAKER BRIEFLY WENT OVER THE LLC, AND THERE WAS A, UM, A QUICK, UH, PORTION IN THERE THAT, UM, SAID SOMETHING TO THE EFFECT THAT WITH AN LLC, YOU CAN'T PAY YOURSELF OUT OF THE BUSINESS.
AND IF THAT'S THE CASE, IF I HEARD CORRECTLY, COULD I GET SOME, UH, ADDITIONAL CLARITY ON THAT? OKAY, SO THIS, UM, SO THIS IS WHAT IT IS, OKAY? SO AN LLC TYPICALLY, UM, SALARIES ARE PAID IN THE FORM OF WITHDRAWALS, OKAY? OR DRAWS FROM THE BUSINESS.
SO YOU CAN DO THAT, YOU CAN DO A PAYROLL, BUT MIND YOU, THEN YOU'RE GONNA HAVE TO GET A SERVICE PROVIDER.
AND IF YOU'RE THE ONLY, UM, ESPECIALLY IF YOU'RE THE ONLY OWNER OF THE BUSINESS, YOU ARE GONNA HAVE TO START PAYING PAYROLL TAX AND ALL THE OTHER TAXES THAT ARE INVOLVED WITH THE, WITH THE, FOR PAYROLL, AND YOU PROBABLY HAVE TO GET A PAYROLL COMPANY TO HELP YOU WITH THAT.
SO THE SIMPLEST MEANS OF PAYING SALARY TO YOURSELF IS IN THE FORM OF A DRAW, OKAY? BUT AGAIN, CHECK WITH YOUR TAX PREPARER, OKAY? OKAY.
THANK YOU SO MUCH FOR THAT CLARITY.
OKAY, SEE, WE HAVE A QUESTION FROM DARIEN KIV.
WHEN YOU WERE SPEAKING ABOUT THE LLCS, UH, AND YOU REFERENCED HAVING MULTIPLE SHAREHOLDERS MM-HMM
THERE WAS AN AGREEMENT THAT YOU MENTIONED, AND I JUST WANTED TO SEE IF I CAN GET THE AGREEMENT NAME.
[00:45:01]
AWESOME.SO THAT SHOULD BE PART OF YOUR CORPORATE DOCUMENTS THAT YOU CARRY WITH YOU.
AGAIN, MAKE SURE THAT EVERY, UH, THAT YOU REFLECT ON THERE, UM, THE OWNERS, UH, THEIR TITLE AND THE PERCENTAGE OWNERSHIP.
WELL, AND MAKE SURE EVERYBODY SIGNS ON THE DOTTED LINE.
WE ALSO HAVE A QUESTION FROM DORIAN DOVE, PLEASE UNMUTE YOURSELF.
HELLO, MY NAME IS DORIAN DOVEY, THE OWNER OF STAMPED VINTAGE LLC.
UM, MY QUESTION IS PERTAINING TO THE PERMITS, UH, IF MAYBE YOU'RE KNOWLEDGEABLE AS TO WHAT I MAY NEED TO BE ABLE TO, UM, I SELL WEBSITES AND BUSINESS CONSULTING ADVICE TO PEOPLE, UH, OF MY AGE IN, IN MY DEMOGRAPHIC.
I'M AFRICAN AMERICAN, UM, BECAUSE I FEEL LIKE THERE'S A LOT OF INFORMATION I'VE LEARNED THROUGH PROGRAMS LIKE THIS THAT OTHER PEOPLE AREN'T, UM, RELIABLY, UH, IN A POSITION TO BE ACCESSED.
UH, AND I WANT TO KNOW, IS THERE ANY CERTAIN PERMIT I WOULD NEED TO DO THAT? I DO HAVE A TEXAS SALES AND USE PERMIT FOR TANGIBLE GOODS, BUT I DON'T KNOW ABOUT FOR LIKE INTELLECTUAL PROPERTY AND WHATNOT.
SO, UH, ARE YOU LEASING OR YOU, OR THIS A HOMEBASED BUSINESS? THIS IS A HOME-BASED BUSINESS.
SO IF IT'S A HOME BASED BUSINESS, YOU DON'T HAVE TO WORRY ABOUT AN OPERATING PERMIT.
UM, IF IT'S, UM, AS FAR AS I KNOW, THERE'S NO, UM, THERE'S NO, UM, PERMITS TO OPERATE THIS TYPE OF BUSINESS.
'CAUSE IT'S, IT'S A SERVICE, RIGHT? SO IT'S A SERVICE.
SO YOU DON'T NEED ONE, BUT WHEN YOU DO SELL GOODS, THEN, THEN THE SALES TAX DOES KICK IN.
BUT AGAIN, BUT AGAIN, I WOULD TOUCH BASE WITH YOUR TAX REPAIR TO CONFIRM THAT.
DO YOU HAPPEN TO KNOW ANY GOOD TAX PROPRIE, UH, PREPARERS IN THE HOUSTON AREA? I, WELL, I ACTUALLY LIVE IN SPRING, TEXAS FOR BUSINESS.
SO, UH, I WOULD SUGGEST ASKING, UM, YOUR ADVISOR IF THEY KNOW OF ANY, AND ALSO TO, UM, UM, NO, NOT OFF, OFF THE TOP OF MY HEAD.
IF ANYONE IS INTERESTED IN A WEBSITE, MY WEBSITE IS STAMPED VINTAGE.COM, AND I'LL WRITE THAT IN THE CHAT.
Y'ALL BE BLESSED, DARIEN, YOU'RE A MAN AFTER MY HEART.
YOU'RE EVEN SELLING YOUR BUSINESS DURING A BUSINESS SESSION, SO THAT'S VERY GOOD.
OKAY, DO WE HAVE ANY OTHER QUESTIONS? I DON'T SEE ANY MORE HANDS.
CAN YOU SEE SOME? GO AHEAD, ANITA.
UNMUTE YOURSELF PLEASE, MS. ANITA, WE CAN'T HEAR YOU.
IF YOU'RE SPEAKING MS. ANITA, WE STILL CAN'T HEAR YOU.
OKAY, WE'LL, I'LL MUTE HER AND WE'LL GO TO SABRINA RIVERA.
MY QUESTION IS, UM, WHEN WORKING WITH YOUR BUSINESS MENTOR AND THEN WITH YOUR TAX PREPARER ON THE FINANCIAL PROJECTIONS, UH, MR. LOPEZ, IN YOUR EXPERIENCE, DO YOU HAVE ANY TIPS AS FAR AS HOW TO KIND OF WORK BACKWARDS OR WHAT QUESTIONS TO ASK YOUR TAX PREPARER? UM, AS FAR AS LIKE CREATING THOSE PROJECTIONS WITH ACCURACY? OKAY, GOOD QUESTION.
SO, UM, SO THIS IS WHAT THE, WHAT MOST FINANCIAL, ALMOST EVERY FINANCIAL PROJECTION IS GOING TO REQUIRE IS WHAT'S CALLED ASSUMPTIONS.
WHAT ARE YOUR ASSUMPTIONS, UM, ON HOW MUCH YOU EXPECT, UH, TO GENERATE EACH MONTH? UM, USUALLY, LIKE BOTH FINANCIAL INSTITUTIONS WILL REQUIRE 24 OR 36 MONTH TO MONTH PROJECTIONS.
SO LET'S SAY YOU, YOU OFFER A SERVICE AND YOU, AND YOU DO A COMPARISON ANALYSIS OF YOUR COMPETITORS.
ONE, UM, ONE, UH, COMPETITOR MAY CHARGE $9 A MONTH.
ANOTHER COMPETITOR MAY CHARGE $10 A MONTH, AND THE THIRD COMPETITOR, UH, CHARGES $11 A MONTH.
SO DO YOU GO IN, UH, WHAT'S, WHAT IS YOUR GAME PLAN, RIGHT? THIS IS WHERE YOUR MARKETING PLAN TAKES EFFECT.
ARE YOU GONNA OFFER THINGS AT A DISCOUNT? MAYBE YOU'RE GONNA CHARGE MAYBE EIGHT CHARGE.
[00:50:01]
GONNA CHARGE A PREMIUM, SO THEN IT'S $13 A MONTH AS OPPOSED TO A LESSER DOLLAR AMOUNT, OR YOU'RE GONNA BE IN THE MIDDLE OF THE PACK AND BE AT THAT $10, UH, MIDDLE.SO THAT'S A, AND THEN, UM, THEN, RIGHT? SO IT'S VERY CRITICAL.
TYPICALLY, UM, WHAT I'VE SEEN IS LIKE PE UH, BUSINESSES BREAK EVEN, UH, AFTER THE SIX MONTH.
SOMETIMES IT'S SOONER, SOMETIMES IT'S LATER.
UH, BUT LIKE, UH, BUT YOU NEED TO DETERMINE WHAT'S, WHAT'S YOUR BREAKEVEN LEVEL.
SO IF YOU ARE CHARGING $10, UH, YOU HAVE LIKE A MINIMUM OF 40, 40 A A, UM, A MONTH TO BREAK EVEN, RIGHT? SO THEN, UM, I USED TO HAVE MY OWN BUSINESS, SO THIS IS WHAT I DID.
SO I BROKE IT DOWN TO MAKE IT A LITTLE BIT EASIER.
UM, HAVE AT LEAST 10, 10 CLIENTS A WEEK.
SO THEN I BROKE IT DOWN EVEN FURTHER.
ALRIGHT, A MINIMUM OF TWO A WEEK, TWO TIMES FIVE IS 10.
SO I NEED, I KNEW I NEEDED TO MAKE AT LEAST TWO, UH, CLIENTS THAT DAY WHEN I WOKE UP, CRAWL OUT OF BED AND SAID, I GOTTA GO OUT AND HUSTLE FOR TWO CLIENTS,
I MEAN, LIKE, YOU HAVE TO HAVE LIKE A, LIKE A, LIKE A LION.
LIKE IF YOU'RE A LIONS, UHHUH,
YOU GOTTA, YOU GOTTA CHALLENGE YOURSELF TO DO WELL.
AND SO, UM, AND SO IT'S, IT IS VERY IMPORTANT THAT YOU SET GOALS EVEN ON A DAILY BASIS TO MAKE, HELP YOU ACHIEVE, UM, UH, SUCCESS IN RUNNING YOUR BUSINESS.
SOUNDS LIKE KEEP IT SIMPLE AND GRANULAR AND JUST HUSTLE FOR THAT MONEY EVERY DAY.
OKAY, RASHONDA ROSTON, PLEASE UNMUTE YOURSELF AND ASK YOU A QUESTION.
MY QUESTION IS ABOUT THE S CORP.
UM, I AM STARTING THIS BUSINESS BY MYSELF, AND I WANTED TO KNOW, IS IT, UM, IS IT OKAY TO START AN ESCORT BY YOURSELF OR SHOULD I GET MORE PEOPLE INVOLVED? UM, DOES IT LOOK BAD TO LENDERS? IF YOU, IF YOU'RE BY YOURSELF, BY YOURSELF, WHAT IS THIS NORMAL? DO PEOPLE START AS A GROUP, OR, HUH, GOOD QUESTION.
SO, AND THIS IS VERY IMPORTANT WHAT I'M ABOUT TO SHARE WITH YOU, OKAY? AND ALL OF THOSE THAT ARE LISTENING, OKAY? YOU'RE ONLY AS STRONG AS YOUR WEAKEST PARTNER.
OKAY? SO LET'S SAY YOU GET LIKE THREE OR FOUR PARTNERS, RIGHT? YOU'RE ONE PART, ONE OF THE PARTNERS OF
AND SO THAT MAY DISQUALIFY YOU FROM THE LOAN BECAUSE THIS PERSON, IF HE'S CAUGHT, HE OR SHE IS CAUGHT IN A BANKRUPTCY, THEN THIS, HIS INTEREST IN THE BUSINESS IS GOING TO BE UNDER, UH, UNDER INSPECTION BY BANKRUPTCY, UH, COURT.
SO MAKE SURE THAT YOU CHOOSE YOUR PARTNERS WISELY, THAT THEY'RE GOING TO CONTRIBUTE, UM, TO THE BUSINESS, THAT THEY HAVE GOOD CREDIT AND, AND THAT, UM, IT'S KINDA LIKE ANYTHING, RIGHT? DO YOU WANNA, LIKE WHEN WE GET MARRIED OR, OR CHOOSE A PARTNER OR A LIFE PARTNER, IT'S VERY IMPORTANT THAT YOU CHOOSE, UH, THE RIGHT PERSON, RIGHT? THE COMPATIBLE PERSON THAT'S GONNA HELP YOU.
UM, AND THIS PRETTY MUCH, UH, IS FORMING THE BUSINESS AS WELL.
MAKE SURE THAT THEY'RE GOING TO BE ABLE TO CONTRIBUTE POSITIVELY, AND THEY'RE NOT GOING TO, UH, BRING YOUR BUSINESS DOWN.
OKAY? SO IT, SO WOULD IT BE OKAY TO START IT ALONE AND THEN ADD PEOPLE AS I GROW? OR IS IT BETTER TO JUST START WITH PEOPLE THAT, THAT IS A PERSONAL CALL.
THAT IS WHAT YOU CALL A PROPRIETY QUESTION, RIGHT? THIS IS WHERE YOU GO INTO BUSINESS AND YOU HAVE TO DEAL WITH HARD QUESTIONS LIKE THAT, THAT'S RUNNING YOUR BUSINESS.
SO THINK ABOUT IT, THINK ABOUT, UH, THE PLUSES AND MINUSES BASED ON THIS PRESENTATION.
TALK TO YOUR MENTOR, TALK TO YOUR TAX PREPARER AND TELL, UH, TELL 'EM, UH, RAISE UP THE ISSUES AND THEN YOU MAKE A SOUND DECISION AND YOU MAKE YOUR, UH, YOUR DECISION AND MOVE FORWARD.
UM, I'M GOING TO THE CHAT FOR SOME QUESTIONS NOW.
[00:55:01]
SLIDES IN THE PORTAL AFTER OUR SERIES IS COMPLETE ON STARTING A BUSINESS.SO THE THIRD SESSION WILL BE ON WEDNESDAY, AND THAT'S WHEN WE WILL POST THE SLIDES.
SO THEY WILL BE POSTED AT, UM, AFTER WEDNESDAY SESSION.
DOES LEGAL ASSISTANCE HELP WITH INSURANCE REQUIREMENTS? OKAY.
I, UM, ACTUALLY, YOUR BEST, UH, PERSON TO ASK WOULD BE YOUR INSURANCE AGENT.
SO THERE, DEPENDING ON YOUR INDUSTRY, UM, INSURANCE MAY BE BE VERY, UH, NOMINAL, UM, OR MAY BE VERY COMPLEX.
AGAIN, LIKE IF YOU'RE A PRODUCT MANAGER, A MANUFACTURER, FOR INSTANCE, YOU MAY NEED A PRODUCT, UH, LIABILITY INSURANCE.
IF YOU'RE IN A FLOOD ZONE, YOU MAY BE REQUIRED TO HAVE FLOOD ZONE, UH, FLOOD INSURANCE.
IF THE LOAN IS GOING TO PREPARE, I MEAN, UH, BE, UH, SECURED BY COLLATERAL, CONTENT INSURANCE MAY BE REQUIRED.
MOST SBA LOANS REQUIRED LIFE INSURANCE.
SO IT DEPENDS ON YOUR SITUATION AND HAVING THAT CONVERSATION WITH YOUR, YOUR INSURANCE, UH, PERSON.
UM, IF YOU DO NOT HAVE ONE, A COMMERCIAL INSURANCE AGENT, ASK YOUR INSURANCE AGENT IF THEY NOVO, REPUTABLE INSURANCE, UM, PERSON, UH, COMMERCIAL INSURANCE PERSON TO WORK WITH.
THE NEXT QUESTION IS REGARDING FRANCHISE TAX.
IF THERE IS NO, UH, OH, IF THERE IS NO REVENUE, IF THERE IS NO REVENUE AS OF YET, DOES THE FRANCHISE TAX FORM STILL NEED TO BE FILED, FILLED OUT OR FILED EACH QUARTER, OR IS IT ANNUAL? IS THAT OKAY? OKAY, SO THIS IS A QUESTION FOR THE TAX PREPARER JUST RECENTLY CAME UP TO MY ATTENTION, SO I CAN'T PROPERLY ADDRESS THAT.
MAYBE, UM, UM, I'M HAVE TO DO SOME RESEARCH ON THAT 'CAUSE THAT, THAT IS A GOOD QUESTION.
BUT I DO KNOW, UM, JUST RECENTLY THAT, UH, IF YOU ARE GENERATING REVENUES THAT YOU PROBABLY, THAT YOU PROBABLY NEED, DO NEED TO FILE YOUR FRANCHISE TAX OR YOUR, UM, QUARTERLY.
SO HAVE THAT CONVERSATION WITH YOUR TAX PAYER.
UM, GOING BACK THROUGH TO MAKE SURE I GOT ALL THE QUESTIONS.
UM, YOU MENTIONED BRIEFLY THAT SOME SBA LOANS REQUIRE A LIFE INSURANCE POLICY.
UM, I'M NOT IN GOOD HEALTH AND I'M NOT ELIGIBLE FOR LIFE INSURANCE POLICY.
SO, SO DOES THAT KIND OF MEAN I WOULDN'T BE ELIGIBLE FOR AN SBA LOAN? JUST ON THAT? NOT NECESSARILY.
UM, OVER THE YEARS, UH, THERE HAVE BEEN, UM, UH, INSTANCES WHERE IT WAS NOT REQUIRED FOR THAT SAME REASON, RIGHT? UH, THAT YOU CANNOT GET INSURANCE FOR, UH, DUE TO PHYSICAL REASONS.
I WOULD JUST ASK THE DOCTOR, UH, OR YOUR INSURANCE AGENT THAT YOU DID NOT QUALIFY FOR LIFE INSURANCE FOR THIS REASON, RIGHT? AND THEN SHARE THAT WITH YOUR, UH, WITH YOUR SBA LENDER.
AND SO, UM, SO THERE, UH, THERE ARE EXEMPTIONS MADE AND SO HAVE THAT CONVERSATION IF THEY RIGHT, BUT I, I DON'T THINK THAT WOULD ACTUALLY HELP MY CAUSE BECAUSE I'M ACTUALLY REALLY NOT IN GOOD HEALTH AND PROVIDING MY HEALTH INFORMATION TO, UM, I DON'T THINK THAT WOULD HELP THINGS.
BUT DON'T HURT, DON'T HURT, DON'T, DON'T HURT TO ASK.
OKAY? SO IF, YOU KNOW, AND, AND FORTUNATELY HERE IN HOUSTON, THERE IS THIS, UM, THIS ORGANIZ, UH, ORGANIZATION CALLED THE HOUSTON.
YOU MIGHT WANNA WRITE THIS DOWN.
HAGEL, H-A-G-G-L, HOUSTON AREA GOVERNMENT GUARANTEED LENDERS.
AND IF YOU GO TO THIS WEBSITE, YOU WILL HAVE ALL OF THESE, UH, SBA LENDERS INCLUDING PEOPLE FUND.
AND WHAT THEY, WHAT YOU CAN DO IS JUST TELL 'EM YOUR SITUATION AND MAYBE THE, UM, DEPENDING ON THE FINANCIAL INSTITUTION, THEY MIGHT SAY, YOU KNOW WHAT? WE'VE DONE THIS BEFORE.
WE'VE, UH, WE'VE ASKED FOR, UH, UH, A, AN EXCEPTION, AND THE SBA APPROVED, SO WE ARE HERE TO HELP YOU.
OKAY? DON'T, DON'T SAY I, I DON'T THINK, ALL RIGHT, DON'T, DON'T, PLEASE DON'T LIMIT YOUR OPPORTUNITIES.
SO YOU'RE, UM, THERE ARE A LOT OF LENDERS HERE THAT, UH, HERE IN THE LOCAL AREA THAT, THAT WANNA HELP.
CAN YOU REPEAT THAT ORGANIZATION ONE MORE TIME? YES, MA'AM.
HAGEL, UH, H AS IN HOUSTON AREA GOVERNMENT
[01:00:02]
GUARANTEED LENDERS.JONATHAN LAWSON, PLEASE UNMUTE YOURSELF.
YEAH, I WAS WONDERING, UM, OVERALL, LIKE WE DON'T HAVE TO HAVE OUR BUSINESS SET UP, UH, TO THE, UM, AT THE TILL THE END OF THE COMPETITION.
AM I CORRECT THAT? I DON'T KNOW.
UM, DO YOU KNOW THAT QUESTION, THE ANSWER TO THAT QUESTION, MELINDA? SO THE, THE BUSINESS DOES NOT HAVE TO BE STARTED AT THIS POINT, BUT I THINK THAT IT HAS TO BE READY TO GO.
DOES THAT MEANING FILED OR DOES THAT MEAN LIKE WHAT, WHAT, WHAT'S THE PART, WHAT'S PARTICULAR PARAMETERS FOR THAT? GIMME A MOMENT AND I'LL GET THAT ANSWER FOR YOU.
WHO IS THAT? MY NAME IS DARIEN.
DURING THE ORIENTATION, THEY SAID THAT WE DO NOT HAVE TO HAVE OUR LLCS FILED OR ANY KIND OF, UH, BUSINESS ENTITY FILED, BUT IF YOU WIN, WHEN YOU WIN, YOU DO HAVE TO HAVE IT ALL SQUARED AWAY SO THAT THE FUNDS CAN BE DEPOSITED INTO A BUSINESS BANK ACCOUNT, BUSINESS ACCOUNT.
UM, DO WE HAVE ANY ADDITIONAL QUESTIONS FOR MR. LOPEZ? THE IMPORTANCE OF HAVING THAT BUSINESS CHECKING ACCOUNT FOR THOSE OF YOU, UH, WELL, WE'RE ON THE SUBJECT.
UM, IF YOU DO NOT HAVE ONE, UM, SCHEDULE AN APPOINTMENT WITH YOUR EXISTING BANK RELATIONSHIP AND TALK TO A BUSINESS DEVELOPMENT OFFICER AND, UM, AND SEE WHAT THE BENEFITS ARE.
AND AS FAR AS OPENING UP AN ACCOUNT WITH THEM, DO THEY HAVE FREE CHECKING, UM, FOR STARTUP BUSINESSES AND SEE WHAT, WHAT PROGRAMS THERE ARE? IF YOU'RE NOT HAPPY WITH THE RESPONSE, THERE ARE QUITE A FEW BANKS OUT THERE, UH, THAT ARE, THAT ARE AVAILABLE.
CAPITAL ONE IS SPONSORING THIS EVENT, SO TALK TO A CAPITAL ONE REPRESENTATIVE.
SO I'LL BE, I'LL BE, I'M SURE THEY'LL BE MORE THAN HAPPY TO SPEAK TO YOU.
WELL, NOBODY ELSE HAS ANY QUESTIONS ON STARTING A BUSINESS FOR MR. LOPEZ.
HE IS, HE'S PROVIDED US AN EXCELLENT PRESENTATION TODAY, AND HE HAS A WEALTH OF KNOWLEDGE AND EXPERIENCE.
SO WHEN YOU ALL ENTERED THE ROOM, YOU HAD TO CHECK IN USING THE QR CODE OR THE LINK THAT WE PUT INTO THE CHAT.
SO AT THIS TIME, WE WILL ADD THE CHECKOUT.
SO YOU CAN SCAN THE QR QR CODE, OR YOU CAN FOLLOW THE LINK.
THAT'S JUST, THAT'S GOING TO BE DROPPED IN THE CHAT AND CAPTION MISS RED.
I'M JUST CHECKING THESE CHAT, THE CHAT REAL QUICK.
I SEE A LOT OF THINGS POPPING UP.
MISS RED, IT, IT, UM, NIKITA SIMS, IT SAYS CAPTION MS. RED, CAN YOU UNMUTE YOURSELF? I COULDN'T SEE IT FROM THE CAPTION, SO I ASKED TO REPEAT SO THE CAPTION COULD SHOW IT AGAIN.
I'M LOOKING FOR THE CODE WORD ON THE CHECKOUT.
I'M ABOUT TO GIVE YOU THE CODE WORD RIGHT NOW.
THE, THE CODE WORD IS DRIVE, D-R-I-V-E DRIVE.
SO, AS A REMINDER, I JUST REMIND, WANNA REMIND YOU THAT YOU MUST CHECK OUT TODAY IN ORDER TO GET YOUR CREDIT FOR THE WORKSHOP.
YOUR CHECKOUT NEEDS TO BE COMPLETED WITHIN, YOU HAVE TO PUT THAT PASS CODE IN WITHIN 48 HOURS INTO THE PORTAL SO THAT YOU'RE, OR SO THAT YOU CAN GET PROPER CREDIT.
AFTER 48 HOURS, THE CODE WORD EXPIRES.
SO I'D LIKE TO THANK YOU ALL FOR YOUR TIME TODAY.
THANK YOU MR. LOPEZ, FOR THAT EXCELLENT PRESENTATION.
AND IF THERE ARE NO MORE QUESTIONS, NO MORE QUESTIONS GOING ONCE, GOING TWICE.
[01:05:04]
THANK YOU, BELINDA.HAVE A NICE EVENING, GOOD NIGHT, GOOD EVENING.