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  • Good afternoon! Is everybody awake? Good!, Since I’ll need your attention and participation. Otherwise this could be as boring at to reading to you the yellow pages
  • I decided to group resources in 4 major categories: Professional, free, face to face and cyber counseling Free information, either generic or specific Feed based information and Fee based consulting Today we will jus cover the first two and will present a list of the third. Because of time limitations and also to prevent boring you to death I’ll cover in more detail those resources that I believe could be more valuable to you. However, since I do not know what you need to know stop me at any time when you see something of your interest.
  • Presentation

    1. 1. WSU, Small Business Policy February 3 rd , 2010 Carlos E. Gonzalez SCORE, Fort Vancouver Chapter AVAILABLE RESOURCES FOR SMALL BUSINESS PLANNING
    2. 2. <ul><li>“ In preparing for battle, I have found that plans are useless, but planning is indispensable” </li></ul><ul><li>Dwight Eisenhower </li></ul>02/03/2010 Resources for small business planning - CEG
    3. 3. Adverse odds 02/03/2010 Resources for small business planning - CEG Source: SBA Office of Advocacy Business survival vs. years in operation
    4. 4. To prepare a good business plan…. <ul><li>You should know the business </li></ul><ul><li>What if you don’t? [it’s your case!] </li></ul><ul><li>Ask the right questions to the person who knows: your client </li></ul><ul><li>Then balance your objectiveness with your client knowledge and emotions to formulate a good plan </li></ul>02/03/2010 Resources for small business planning - CEG
    5. 5. A [good] business plan… <ul><li>Is a formal, substantiated document </li></ul><ul><li>Prepares the entrepreneur to start, improve or expand a business </li></ul><ul><li>Explains the business and its viability to outside parties </li></ul><ul><li>Spells the business goals in clear and SMART terms </li></ul><ul><li>Outlines a program to achieve those goals </li></ul><ul><li>Complies with the KISS principle! </li></ul><ul><ul><li>Its value is to influence decisions to beat the odds! </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    6. 6. A Business Plan must answer… <ul><li>What are the market needs and market ? </li></ul><ul><ul><li>(What, who, how, where, when, how often, how much, why, trends, sensitivity to economic cycles) </li></ul></ul><ul><li>How are those needs presently satisfied ? </li></ul><ul><ul><li>(Who, what, location, share, comparison) </li></ul></ul><ul><li>What are the strengths and weaknesses of the present suppliers/offerings? </li></ul><ul><ul><li>(SWOT analysis) </li></ul></ul><ul><li>What does the company need to offer to become a preferred supplier ? </li></ul><ul><li>How is the company going to structure, staff and manage the business? </li></ul>02/03/2010 Resources for small business planning - CEG
    7. 7. A Business Plan must answer… <ul><li>What are the financial needs ? When are they needed? [start-up expenses, capital, working capital] </li></ul><ul><li>How are those needs going to be financed ? </li></ul><ul><li>Is the business going to make money ? How much? When? </li></ul><ul><li>Is the company sufficiently capitalized until breakeven point is reached? </li></ul><ul><li>Is the forecasted cash flow consistently positive (liquidity)? </li></ul><ul><li>How the company will fill temporary cash flow gaps ? </li></ul><ul><li>Are the financial ratios within industry benchmarks? </li></ul>02/03/2010 Resources for small business planning - CEG
    8. 8. Key issues to address <ul><li>Market need [product and/or service] </li></ul><ul><li>Market [buyers and sellers of need] </li></ul><ul><li>The offering unfair advantage [must have some to win] </li></ul><ul><li>Marketing plan [how to make the target market buy the offering… without needing to sell] </li></ul><ul><li>Financial plan [need & source of funds, income/cash flow/balance sheet forecast] </li></ul>02/03/2010 Resources for small business planning - CEG
    9. 9. Resources for business planning <ul><li>YOUR CLIENT, THE MARKET </li></ul><ul><li>On-line & libraries </li></ul><ul><ul><li>General business information </li></ul></ul><ul><ul><li>Specific [related to business plan components] </li></ul></ul><ul><li>Professional, free consulting </li></ul><ul><ul><li>Face to face and cyber </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    10. 10. On-line generic information <ul><li>Business libraries: articles, how-to, business tools, guides, on-line courses, etc. </li></ul><ul><ul><li>SCORE </li></ul></ul><ul><ul><li>SBA </li></ul></ul><ul><ul><li>Business </li></ul></ul><ul><ul><li>Entrepreneur Organization </li></ul></ul><ul><ul><li>Entrepreneurship (E. M. Kauffman Foundation) </li></ul></ul><ul><ul><li>Free Management Library </li></ul></ul><ul><ul><li>CCH Business owner’s tool kit </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    11. 11. Specific Information <ul><li>Business plan guides </li></ul><ul><li>Financing the business </li></ul><ul><li>Market research </li></ul><ul><li>Marketing </li></ul><ul><li>Business Financial Model </li></ul><ul><li>Business Benchmarking </li></ul><ul><li>Legal business structure </li></ul><ul><li>Licenses and registrations </li></ul><ul><li>Protecting intellectual property </li></ul>02/03/2010 Resources for small business planning - CEG
    12. 12. 1. Business plan guides <ul><li>The Ernst & Young Business Plan Guide </li></ul><ul><li>All “Generic information” websites </li></ul><ul><li>Interactive Business Planner (free, web based) </li></ul><ul><li>“Ultimate Business Planner” (Atlas Business Solutions – software package) </li></ul>02/03/2010 Resources for small business planning - CEG
    13. 13. 2. Financing the business <ul><li>Equity financing </li></ul><ul><ul><li>Savings </li></ul></ul><ul><ul><li>Partner </li></ul></ul><ul><ul><li>Stockholders </li></ul></ul><ul><ul><li>Venture capital </li></ul></ul><ul><li>Debt financing </li></ul><ul><ul><li>Commercial bank loans [requires 30% equity] </li></ul></ul><ul><ul><li>Private [family, friends] loans </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    14. 14. Commercial bank loans <ul><li>“ If you want to know the value of money, go and try to borrow some” B. Franklin </li></ul><ul><ul><li>Existing companies: possible but difficult </li></ul></ul><ul><ul><li>New companies: highly difficult </li></ul></ul><ul><li>Information sources </li></ul><ul><ul><li>SCORE , SBA , SBDC and Business [ The Official Business Link to the U.S. Government] </li></ul></ul><ul><ul><li>Bank of America website </li></ul></ul><ul><ul><li>Financing a business [SCORE, Fort Vancouver brochure] </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    15. 15. Conditions for commercial loans <ul><li>B usiness Plan with substantiated financial forecast </li></ul><ul><li>C apital: Equity = 20% to 25% of the total capital </li></ul><ul><li>C ollateral: 100% of the loan request (exceptions: SBA guarantee) </li></ul><ul><li>C haracter: of the borrower (including business knowledge) and guarantors </li></ul><ul><li>C apacity: of the business to be profitable and cash flow positive </li></ul><ul><li>C redit: of applicant and guarantors must be good </li></ul><ul><li>C onditions: state of the economy, industry, etc. </li></ul>02/03/2010 Resources for small business planning - CEG
    16. 16. 3. Market Research <ul><li>Perhaps the most critical [and difficult] element of a business plan </li></ul><ul><li>Many sources </li></ul><ul><ul><li>Your client (if not a good source, then he/she shouldn’t be in business) </li></ul></ul><ul><ul><li>Competitors </li></ul></ul><ul><ul><li>Industry associations </li></ul></ul><ul><ul><li>Trade journals & trade shows </li></ul></ul><ul><ul><li>Demographics </li></ul></ul><ul><ul><li>Chambers of commerce ( Greater Vancouver , Clark County) </li></ul></ul><ul><ul><li>Bureau of Labor Statistics </li></ul></ul><ul><ul><li>US Commercial service (export markets only) </li></ul></ul><ul><ul><li>Bureau of economic analysis </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    17. 17. Market Research (cont.) <ul><li>Many fee-based services </li></ul><ul><ul><li>Reference USA (Data base for libraries, educational institutions and government agencies) </li></ul></ul><ul><ul><li>Plunkett Research (industry-specific research) </li></ul></ul><ul><ul><li>Forrester Research (technology markets) </li></ul></ul><ul><ul><li>Research Info (market research resources) </li></ul></ul><ul><ul><li>American Demographics (consumer trends database) </li></ul></ul><ul><ul><li>Rand McNally Commercial Atlas & Marketing Guide (library) </li></ul></ul><ul><ul><li>Dun &Bradstreet Reports </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    18. 18. Industry/Market Analysis 02/03/2010 Resources for small business planning - CEG All Markets What Industry? Describe your industry. The less well known the industry, the more description necessary. State of the industry? New industry, growth industry, competitive industry, or stable and mature? Industry trends? Sales, number of customers, number of units sold, trends in related industries. On a world or national size, as needed. Industry accelerators and decelerators? National or international economic indicators that encourage (or not) the health of your industry Risks to the industry? Caused by legislation, technological change, liability or any threat to the industry as a whole
    19. 19. Customer analysis 02/03/2010 Resources for small business planning - CEG Consumer Markets Business Markets Who is the customer? Age, Gender, Income, Family Status Be sure to include how many customers there are in each grouping Industry Type, Size of Customer, Annual Sales Estimate the number of companies using directories or Yellow Pages Where is the customer? Target the geographic radius of your customer base by City, region, State or Country The geography of business to business (B2B) markets tends to be larger than consumer markets When do they buy? Is there a particular busy season for your product or service, i.e. summer, winter, Christmas? If you are selling to seasonal businesses, the timing can be everything, i.e. whole selling What do they buy? Necessity, Luxury item, High involvement/Big ticket, Low involvement/consumable, Capital Item Inventory Item Consumable Item Why do they buy? How does your product or service help the consumer? How does your product enhance the performance of this business? How much do they buy? Determine how much is spent on your product by your customers Estimate the commercial expenditure by the industries in your target area
    20. 20. Competition Analysis 02/03/2010 Resources for small business planning - CEG Direct Competitors Firms who offer exactly the same you offer Indirect competitors Firms who offer substitute products In existence now List, size and competitive position List, size and competitive position In existence for the past three years List, size and competitive position List, size and competitive position Gone out of business in the past List and why List and why Choose best competitor (the one to emulate) Identify and explain why Identify and explain why My firm competitive edge vs. competition What products/services/company attributes to the eyes of the beholder could/would make it a preferred supplier? Edge vs. general competition Service, credit, inventory (product readily available), price, location, advertising, product mix, product knowledge, store lay out, display, parking, etc. Edge vs. general competition Service, product quality, credit, inventory, price, location, advertising, product mix, product knowledge, store lay out, display, parking, etc. My firm position vs. best competitor What products/services/company attributes to the eyes of the beholder could/would make it a preferred supplier? Pros and cons. Edge if existing or what is needed to catch up and / or beat/ Pros and cons. What is needed to catch up and / or beat/ Risks to entrance or to more aggressive competitive stance Possible competitive reaction, i.e. cut down prices. Possible competitive reaction, i.e. cut down prices.
    21. 21. 4. Marketing <ul><li>If you do marketing well you don’t need to sell </li></ul><ul><ul><li>Define target </li></ul></ul><ul><ul><li>Outline strategy for attracting and keeping customers </li></ul></ul><ul><ul><li>Identify and anticipate change </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    22. 22. General Market Information <ul><ul><li>Simmons Market Research Bureau (consumer behavior) </li></ul></ul><ul><ul><li>Zaptdata (D&B) (custom target lists) </li></ul></ul><ul><ul><li>Hoover’s Online (free info on companies) </li></ul></ul><ul><ul><li>Insight Express (market intelligence and consumer feedback) </li></ul></ul><ul><ul><li>SCORE, Fort Vancouver Counselors </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    23. 23. 5. Business financial model… <ul><li>Software driven, interactive financial plan </li></ul><ul><li>Produces linked Financial Statements [P&L, Balance Sheet, Cash Flow] and </li></ul><ul><li>Calculates financial ratios (business’ scores) </li></ul><ul><li>Allows “What if” </li></ul><ul><li>Cash flow planning tool * </li></ul><ul><li>Presentation to lenders </li></ul>02/03/2010 Resources for small business planning - CEG * CCH Business Owner’s toolkit: “Managing your cash flow”
    24. 24. Financial model software <ul><li>Interactive Business Planner (free-Web based-Canada) </li></ul><ul><li>“ Light” Forecaster (up to operational breakeven – free) </li></ul><ul><li>“Financial Forecast” (by ActivePlans –free) </li></ul><ul><li>“ Ultimate Business Planner” (by Atlas Business Solutions *) </li></ul><ul><li>*Software sold by SCORE, Fort Vancouver Chapter </li></ul>02/03/2010 Resources for small business planning - CEG
    25. 25. 6. Business Benchmarking <ul><li>Benchmarking: plan financial ratios vs. industry standards </li></ul><ul><li>Lenders decision tool </li></ul><ul><li>B enchmarking resources: </li></ul><ul><ul><li>RMA Annual Statement Studies ( The Risk Management Association, formerly Robert Morris Associates) – Check Vancouver Library </li></ul></ul><ul><ul><li>Integra Information (fee-based business benchmarking) </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    26. 26. 7. Legal business structure <ul><li>Affects taxes, liability, financing, future </li></ul><ul><li>Selecting an adequate structure </li></ul><ul><ul><li>SBA or Business [ Link to the U.S. Government] </li></ul></ul><ul><ul><li>Attorney or CPA </li></ul></ul><ul><ul><li>SCORE, Fort Vancouver Chapter Counselors </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    27. 27. 8. Licenses and registrations <ul><li>State of Washington Master Licensing service </li></ul><ul><ul><li>“ one-stop” licensing program </li></ul></ul><ul><ul><li>( WALI ) expert system guide you through the steps </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    28. 28. 9. Protecting Intellectual property <ul><li>United States Patent and Trademark Office </li></ul><ul><ul><li>Step by step guide </li></ul></ul><ul><ul><li>On-line application </li></ul></ul><ul><li>Patent attorneys </li></ul>02/03/2010 Resources for small business planning - CEG
    29. 29. Professional, free consulting <ul><li>SCORE, Fort Vancouver Chapter </li></ul><ul><ul><li>Non-profit, national association. SBA resource partner </li></ul></ul><ul><ul><li>11,000 volunteers – 390 Chapters </li></ul></ul><ul><ul><li>Services: free and confidential small business counseling, training, assessment </li></ul></ul><ul><li>Washington SBDC (Vancouver SBDC) </li></ul><ul><ul><li>Services: Counseling, Training, Research, Innovation assessment </li></ul></ul>02/03/2010 Resources for small business planning - CEG
    30. 30. Final words <ul><li>Use the resources: they don’t guarantee success, but they surely help to beat the odds ! </li></ul><ul><li>Build your own business toolkit </li></ul><ul><li>Focus on the key issues </li></ul>02/03/2010 Resources for small business planning - CEG
    31. 31. Key issues to address <ul><li>Market need [product and/or service] </li></ul><ul><li>Market [buyers and sellers of need] </li></ul><ul><li>The offering unfair advantage [must have some to win] </li></ul><ul><li>Marketing plan [how to make buyers buy the offering] </li></ul><ul><li>Financial plan [need & source of funds, income/cash flow/balance sheet forecast] </li></ul>02/03/2010 Resources for small business planning - CEG

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