4. Starting a Business
Living the dream can be risky.
Careful planning minimizes risk.
All startup businesses need
strategic plans.
Is starting a business your dream?
5. Starting a Business
A Strategic Plan
Similar to, but different from, a
business plan.
A business plan is presented to
potential investors.
A strategic plan is for the business
owner.
Defines purpose, current situation,
and future of business.
6. Starting a Business
Elements of a Strategic Plan
Vision Statement
Mission/Purpose Statement
Scope of Business
Assumptions
Goals and Objectives
Risks
Strategies
Progress Reporting Methods
7. Starting a Business?
Let Us Help You . . .
Robert H. Strickland Associates
Brainstorm your business concept.
Formulate strategic and marketing plans.
Develop operational documents.
9. Buying an Existing Business
You are buying a business and a lifestyle.
Have the seller finance some of the purchase.
A business broker represents the seller.
Get advice from attorneys and accountants;
expect to hear some warnings.
Link the agreed-upon price to customer retention.
Have the seller help you through transition.
Do your own research on the business's valuation.
Joseph Anthony’s Seven Tips for Anyone
Thinking About Buying a Business
10. Buying an Existing Business
Does the business have any
internal problems?
Problems from a lack of clear direction or
inadequate training are outside the scope of
standard business evaluations.
Solutions to such hidden problems may
involve redefining policies, flowcharting
processes, clarifying job descriptions, and
developing new procedural instructions.
11. Buying an Existing Business
What do you need to run the
business smoothly?
The business you are buying should have
current operational documents that reflect
actual business processes.
If not, you can require the seller to revise
documentation and give you current
copies as a condition of sale.
12. Buying an Existing Business?
Let Us Help You . . .
Robert H. Strickland Associates
Determine what policies and procedures
need to be documented.
Develop operational documents so you
can assume the business and run it
effectively from the start.
14. Be a good boss, empowering employees.
Know your customers, your industry and
your market.
Network.
Know when to change and do what it
takes.
Know your limitations.
Strengthening Your Business
What are the first steps to strengthening
your business?
15. Strengthening Your Business
How do you develop a strong business?
Treat employees respectfully; give them the tools
(training, documents, authority) to get the job done.
Consistently and systematically gather, analyze,
and use information.
Get out in public regularly.
Accept change and adapt quickly.
Use professional help.
16. Strengthening Your Business?
Let Us Help You . . .
Robert H. Strickland Associates
Determine what action needs to be
taken to replace weak behaviors with
strong ones.
Implement needed changes within a
complete documented system of best
practices.
18. Growing Your Business
No growth plan
Wrong business, wrong location
Inadequate technical skills
Inadequate sales / marketing skills
Inadequate financial management skills
Undefined financial resources
Inadequate market research
Investing in trendy businesses
Over-projecting sales, under-projecting marketing costs
Professionals not consulted
Frances McGuckin’s Ten Common
Mistakes Made by Business Owners
19. Growing Your Business
How do you remove obstacles to growth?
Follow strategic and marketing plans.
Honestly evaluate your liking for your business.
Get technical training for yourself and your employees.
Provide clear, documented policies and procedures.
Learn and apply effective sales, marketing, and market
research techniques.
Learn and apply effective financial management skills.
Project sales conservatively; understand marketing costs.
Build relationships with financial resources.
Find long-term markets for your products.
Consult professionals when necessary.
20. Growing Your Business?
Let Us Help You . . .
Robert H. Strickland Associates
Determine what factors are obstacles to
company growth.
Implement a system of changes that
encourage growth.
22. Offering Franchises
Operating efficiencies
Faster market penetration
Cooperative advertising
Dedicated distributor network
Motivated owner / operators
Shift responsibility to franchisee
Andrew Sherman’s Six Reasons Why
Businesses Offer Franchises
23. Offering Franchises
What must franchisors provide?
A copy of the Uniform Franchise
Offering Circular (UFCO)
One week of training
Guidelines on audits and assignment
procedures
Information on franchisee's fees
24. Offering Franchises
What should franchisors provide?
A marketing plan, promotional materials,
and operational documents
Area site selection assistance
Adequate insurance coverage
A known trademark or service mark
Guidelines on purchases, requirements on
restrictions, and terms of agreement and
renewal
25. Offering Franchises?
Let Us Help You . . .
Robert H. Strickland Associates
Determine your company’s training,
operational, and marketing needs.
Develop your operational documents
in preparation for franchising.
27. Selling Your Business
Keep your business records in order.
Request an independent, certified
third-party audit.
Fix problems before they become
evident to potential buyers.
What should you do before offering
your business for sale?
28. Selling Your Business
Are You a Lifer or an Exiter?
Lifers are in the business for life; they
cannot leave because others cannot do
their jobs. The majority of small business
owners are lifers.
Exiters, however, set up their businesses
so they can walk away at any time, and the
business will continue to run.
29. Selling Your Business
A Standard Business Appraisal
Identifies problems with your
business.
May not relate problems to specific
business practices.
Does not tell you how to solve
these problems.
30. Selling Your Business
Do you want top dollar?
Businesses with clearly-defined operating
procedures are worth more on the market.
Providing operational documents to a buyer
can be a condition of sale.
Solutions may involve defining policies,
flowcharting processes, creating job
descriptions, and developing procedural
instructions.
31. Selling Your Business?
Let Us Help You . . .
Robert H. Strickland Associates
Identify all policies and procedures that
your company follows.
Develop operational documents that
reflect these policies and procedures in
preparation for sale.
32. Robert H. Strickland
Associates
P. O. Box 1388
Everett, Washington 98206-1388
Phone: 425-876-2139
Email: mail@roberthstrickland.com
Our services do not substitute for legal, financial, and accounting services.
We work with your attorney, banker, and accountant to serve your needs.
Copyright 2004 Robert H. Strickland. All rights reserved.
Business Enhancement Services
