Entrepreneurship

Presented by Bill NicholsonJanuary 10, 2007

en·tre·pre·neur A person who organizes and manages any enterprise, esp. a business, usually with considerable initiative and risk.

OverviewOverview

IntroductionDescription of the BusinessCustomer ProfileWant to be Self-Employed?The Three Types of EmploymentFinal ThoughtsQ&A

Who is This Guy?Who is This Guy?UC Graduate - BSES A+, ACE, MCPAdjunct Instructor, CSTCCSelf-employed for 16 yearsReal Jobs: General Motors,

Cincinnati Milacron,etc.

IntroductionIntroduction

Description of the BusinessDescription of the Business

Anything that is computer-related– Software Development – Networking– Repair & Upgrades– New Hardware– Training– Consulting– Hand-Holding

Multi-modal analysis of non-linear operational constructs and application of digital techniques to enhance, support, streamline, and de-obfuscate subjective processes, with emphasis on remuneration enhancement.

Description of the BusinessDescription of the Business

“Apply computer technology

to make people happy

so they will give me money.”

Description of the BusinessDescription of the Business

C++Design / Consulting VBASP .NetSQL ServerAccessHTMLWindows 2003 Server / Linux

Description of the BusinessDescription of the Business

Ongoing relationships with customersSupport a manageable number of

customersAlways be on the lookout for potential

new customersBe available 24-7Build relationships

Description of the BusinessDescription of the Business

Customer ProfileCustomer Profile

EclecticCollege: www.chatfield.comDefense Contractor:

www.kecoindustries.comContractor: www.drackett-harth.comLogistics: www.standrewsltd.com

Process Process ControlControl

A Typical Customer is not High TechA Typical Customer is not High Tech

They are profit-orientedThey expect resultsThey trust me to suggest and

implement new technology

Customer ProfileCustomer Profile

How do I Charge?How do I Charge?

Hourly Rate– T&M (Time and Materials)– Establish the rate before starting– Plumbers charge for travel time. Should we?

How do I Charge?How do I Charge?

Project Rate– Provide a quote or a proposal– A proposal is an analog device

How do I Charge?How do I Charge?

Value-Based Rate– Mr. Customer: What is this software

worth to you?

How do I Charge?How do I Charge?

Speculation– Write the code for free and hopefully reap

the benefits down the road.– Working “on spec” is risky.– The cost of your labor is not tax-deductible

Want to be Self-Employed?Want to be Self-Employed?

Work your own hoursPick your own projectsKeep everything you earnMake all the decisionsAvoid the office politics

Still want to be…?Still want to be…?

No company softball teamNo Christmas PartyNo retirement planNo benefits / health insuranceNo paid vacationNo steady paycheckNo promotionsCollections

How to get StartedHow to get Started

Consider a part-time ‘real job’.Contact the placement agencies

– Emphasize your willingness to work part-time

How to get StartedHow to get Started

Don’t be picky– Repair– Programming– Consulting– Networking– Design– Hand-holding

Short TermShort Term

Time management is criticalCan you deal with not knowing what

you’ll be doing next week?Next month?

Customer RelationsCustomer Relations

Court your customers

Customer RelationsCustomer Relations

Don’t commit to anything– “Probably”– “I think we can do that”– “We’ll try to get that accomplished”

Customer RelationsCustomer Relations

EmailChristmas giftsNo charge for telephone calls

Customer RelationsCustomer Relations

Identify the decision makers– Owner– Secretary– Sales Manager

Customer RelationsCustomer Relations

Recognizable technology can get you in the door.

Microsoft sells (sorry!)

Types of EmploymentTypes of Employment

Direct Employee– Paid by the company you work for– Usually an open-ended relationship

Types of EmploymentTypes of Employment

Contract Employee– You are paid by a third-party, usually a

placement service.– Usually a closed-end or short-term

agreement.– You are employed by and at the mercy

of the placement service.– Usually a full-time commitment.– Be wary of tax ramifications

Types of EmploymentTypes of Employment

Self-Employed– You bill the customer– You collect the fee– You pay the Self Employment Tax– You file a Schedule C– You deduct your expenses

Beware of Tax ImplicationsBeware of Tax Implications

Someone will pay the extra 7.65%

Types of EmploymentTypes of Employment

Beware of Tax ImplicationsBeware of Tax Implications

You know you’re not self-employed if…– Your employer provides you a desk, a place to

work, a computer, and other tools.

OR– Your employer determines your working hours

OR– You receive a W-2 form at tax time

Legal RequirementsLegal Requirements

You are considered self-employed and subject to self-employment tax laws if you:

carry on your own trade or business have a profit motivation for your business activity operate your business in a regular manner are a sole proprietor are an independent contractor work full or part-time in the business endeavor have a net profit of $400.00 or more have a net profit of $100.00 or more as an employee of a church

electing exemption from Social Security Withholdings

http://www.villarose.com/html/advantax/slfempl.htm

Final ThoughtsFinal Thoughts

No one has ever asked me for my GPADon’t let emotions interfere with businessBe prepared to retrain yourself constantly

Final ThoughtsFinal Thoughts

This is a people business

Edsger Dijkstra is often quoted as saying, "Computer science is no more about computers than astronomy is about telescopes."

Learn About PeopleLearn About People