March 11, 2008

ASME Hawaii Section Meeting

Topic: Starting and Managing a Small Engineering Business

Quote “Never put off until tomorrow, what you can do the day after tomorrow.” Samuel Clemens

“All you need in this life is ignorance and confidence; then success is sure.” Mark Twain

Dr. Gregory B. Murphy

Associate Dean and Director of the MBA program

College of Business

University of Southern Indiana

Evansville Business Journal, June 2007

“Eighty percent of all new small businesses fail in their first five years.” This statistic should scare you if you’re thinking of starting a new business, especially since the majority of new businesses are financed first by personal savings and personally secured debt (a home equity loan for example) and next by the three F’s: family, friends, and fools. Assuming you want to keep your savings and friends and make an occasional appearance at family reunions, starting a small business is way too risky!

Business Necessities

· Identify Your Business Opportunities

§ Where is your passion, What is your knowledge base, Know yourself & your personality

· Consult with Business Owners, Family and Friends

· Work With A Business CPA To Develop A Business Plan & Establish Accounting Procedures

· Determine The Source of Start-Up Money

§ Savings, Second Mortgage, Family, Barter arrangement

· Retain A Business Law Firm to Choose Your Business Structure & Register Your Business

§ Sole proprietor, Partnership, Corporation, S-Corporation, LLC, Business Name

· Formulate Good Business Bookkeeper Procedures

· Locate A Business Insurance Agent and Obtain a Business Insurance Policy

· Determine Your Business Location