Your New Business...From the Ground Up


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Learn about business management methods that will help you plant your new business on a solid foundation. The key is team building and recognizing that you do have to be an expert at all areas of business. By building a team you can set your business up for greater success than by doing everything yourself.

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Your New Business...From the Ground Up

  1. 1. New & Aspiring Business Lunch& Learn Workshop Series Your New Business... from the Ground Up Business management methods to become a highly effective entrepreneur and help your business Monday, November 22nd 12:00 – 1:30pm Clear Lake City Building
  2. 2. Business Management Methods  Ernesto Sirolli, business coaching  Demonstrated success in small rural areas  Boils down to one concept: Trinity of Management
  3. 3. Trinity of Management THE “WHAT” 3 basic things that any business must have in place in order to be successful:  Product: technical skills necessary to produce the good or services one wishes to sell  Marketing: ability to sell & a market for goods or services  Finance: the ability to financially manage one’s affairs THE “WHY” Businesses need to be solid in all 3 areas in order to succeed.
  4. 4. Trinity of Management WHAT DOES THIS MEAN?  Don’t find people that are effective and passionate at all 3  1 job becomes 3 jobs & must be taken on. (‘Product’ person most common + possibly 1 of other 2 areas – ‘finance’ or ‘marketing’)  Teams are essential! Allows you to focus on what you do best, and limit wasted time and energy in weak areas  People try to do everything, many do it badly  Successful businesses are always a team effort. A good team can succeed in nearly everything, and can turn around financially troubled companies
  5. 5. Trinity of Management You do not have to be great at all 3 things, but all 3 must happen in order for your business to be successful.  What do you do best?  What do you love to do?  Where does your passion lie?  What makes your eyes glaze over?  Who else would love this project?  We can help you build a team, passion and strength in all 3 areas of your business.  2 people can cover 3 functions, but all 3 must be covered.
  6. 6. Trinity of Management  Examples of Team Building – you don’t have to do it all yourself!  Sirolli Video: Greg (5:30) (Greg was great at building cabinets, selling, and marketing his products, but hated and was terrible with finances.)  RUPRI Video: Rory (10:40) (Rory was a great mechanic and had lots of business, but couldn’t manage to pay his bills – not because he didn’t have enough revenue, but because he wasn’t able to organize this area of his business. Listen to how they built a team and helped him improve the finances for his business.)  Other Examples:  Steve Jobs & Steve Wozniak,  Walt and Roy Disney  Bill Gates and Paul Allen or Steve Ballmer
  7. 7. TRINITY OF MANAGEMENT THE “HOW” How to fill the Trinity (with limited resources):  Beg (ask a friendly accountant or marketing person to help for free, at least for a few months)  Promise something you don’t have (“success fee” or share in future profits)  Give shares in your worthless company (form a company, allocate shares to those who come on board)  **Find volunteer help (convince a volunteer to help you – friends, family, etc)
  8. 8. Total Quality of Company  Graph how good your business is in the following areas:  Production  Marketing  Finance  What are your strong and weak areas?  Who is doing each?  What do you have to do to lift the weak area to the level of others?  How and who will address the weak areas?
  9. 9. Graph: Quality of Company 90% 80% 30% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Product Marketing Finance Graph the quality of your company. 100% is the goal for each area. What areas need to be strengthened? Which areas need to be lifted to the level of the others?
  10. 10. SWOT Analysis  Assess your SWOTs in areas of  Production  Marketing  Finance
  11. 11. SWOT Analysis KEYS TO BUSINESS SUCCESS You have just been presented some information on Keys to Business Success related to what Ernesto Sirolli calls the “trinity” or what we call Sirolli’s Law. Bottom line, to be really successful as an entrepreneur in business you must do production, marketing and finances very well. There is general agreement that Ernesto is right and that while we must be really good in all three areas, it is unrealistic to expect us to have motivation and strong skills in all three areas. The following exercise gives you a chance to evaluate your strengths and weaknesses in these three keys to business success. Production To succeed in business you must be able to produce a good or service that consumers want. Marketing Identifying and developing customers – marketing – is central to business success. Provide a few reasons why you feel you are strong or weak in this area: On a scale of 1 to 5 rank your strength or weakness in marketing. 1 2 3 4 5 1 2 3 4 5 Strength Weakness Strength Weakness Provide a few reasons why you feel you are strong or weak in this area: Provide a few reasons why you feel you are strong or weak in this area: Finances Effective financial management is fundamental to business success. Team Building Provide a few reasons why you feel you are strong or weak in this area: It is hard, maybe impossible for any one person to have adequate interest and skills in all three areas. So team building is important. Who might you include on your team to address weakness areas? 1 2 3 4 5 Strength Weakness Provide a few reasons why you feel you are strong or weak in this area: Assess your Strengths and Weaknesses in the areas of: •Production •Marketing •Finance
  12. 12. SWOT Analysis SWOT QUESTIONS TO CONSIDER Marketing  What is the quality of your marketing plan?  What are your goals, and how do you identify to accomplish them within this area?  What is your competitive advantage and how are you employing it?  What is your value statement?  Do you have a deep understanding of your markets?  Do sell leading with the features of the product/service: “I think this is the greatest product, so should you.” Select offerings based on whether you would be willing to buy the product/service  Do you sell leading with the value of a product: “Given what you, the customer, need or want, my offering should be of unique value to you.” (more strategic, higher level) Finances  What financial management tools are you using?  Is your financial management primarily “Rear View Mirror” financial management (hire accountant only for government tracking requirements, etc)  Do you utilize proactive financial management, use financial management tools to look to and plan for the future and glance in the “rear view mirror”, rather than constantly looking in the “rear view mirror.” (more strategic, higher level)  Do you use multiple financial tools to gauge your business (income statements, revenue and expense statements)?  Do you use multiple financial tools/gauges together and understand relationships between financial management tools, profits and losses?  Do you measure performance of marketing and operations in terms of profitability of results?  Do you conceive of and take action on market opportunities? Production  Do you work in a time frame of 3 – 90 days, or plan further into the future, 1-2 year timeframe?  Produce annual budgets based on realistic operating statements  Do you utilize lean manufacturing principles (remove inefficiencies, reduce inventory, increase productivity)  Do you use relatively non-inventive solutions to problems, or do you conceive of and implement innovations to problems? Here are some questions to help you evaluate the quality of : Production, Marketing, and Finance in your company.
  13. 13. Discussion  What areas are you strong in?  What areas are you weak in?  What do you have to do to lift the weak area to the level of others?  What areas could you use help with?  Who might also enjoy the project you are working on?  Who might be the right people?  Who and how will you address the weak areas?  How can you help your customers build a team?