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Starting and Nurturing Your Business

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Starting and Nurturing Your Business

  1. 1. Starting & Nurturing Your Business – Ten Steps <ul><li>SCORE Chapter 34 </li></ul><ul><li>Greater Cincinnati Area </li></ul>
  2. 2. Workshop Objectives <ul><li>Learn the ten steps to start a business </li></ul>
  3. 3. Workshop Objectives <ul><li>Learn the ten steps to start a business </li></ul><ul><li>Learn some tips to do each step </li></ul>
  4. 4. Workshop Objectives <ul><li>Learn the ten steps to start a business </li></ul><ul><li>Learn some tips to do each step </li></ul><ul><li>Get to know key Resources </li></ul>
  5. 5. Workshop Objectives <ul><li>Learn the ten steps to start a business </li></ul><ul><li>Learn some tips to do each step </li></ul><ul><li>Get to know key Resources </li></ul><ul><li>Learn tools/techniques to build plan </li></ul>
  6. 6. Workshop Objectives <ul><li>Learn the ten steps to start a business </li></ul><ul><li>Learn some tips to do each step </li></ul><ul><li>Get to know key Resources </li></ul><ul><li>Learn tools/techniques to build plan </li></ul><ul><li>Know where to start </li></ul>
  7. 7. Background - SCORE <ul><li>Purpose of SCORE </li></ul><ul><li>Provide counseling/training </li></ul><ul><li>- small business owners </li></ul>
  8. 8. Background - SCORE <ul><li>Purpose of SCORE </li></ul><ul><li>Provide counseling/training </li></ul><ul><li>- small business owners </li></ul><ul><li>SCORE helps small business owners: </li></ul><ul><li>Start-up </li></ul><ul><li>Grow their business </li></ul><ul><li>Sometimes helping them avoid failure </li></ul>
  9. 9. Background - SCORE <ul><li>Background: National Organization </li></ul>
  10. 10. Background - SCORE <ul><li>Background: National Organization </li></ul><ul><li>Over 11,000 volunteers </li></ul><ul><li>750 Counseling locations </li></ul><ul><li>Non-Profit Organization </li></ul><ul><li>Affiliated with Small Business Administration </li></ul>
  11. 11. Background - SCORE <ul><li>Background: Cincinnati Chapter </li></ul>
  12. 12. Background - SCORE <ul><li>Background: Cincinnati Chapter </li></ul><ul><li>65 Counselors - various business backgrounds </li></ul><ul><li>Provides 25+ workshops per year over 400 students </li></ul><ul><li>Provides “one-on-one counseling; over 2200 Sessions last year </li></ul><ul><li>“ No cost to You” </li></ul><ul><li>Sign up form will be provided </li></ul>
  13. 13. Importance of Small Business to US Economy <ul><li>Number of Small Business that Are “in-business” </li></ul>
  14. 14. Importance of Small Business to US Economy <ul><li>Number of Small Business that Are “in-business” </li></ul><ul><li>Small Businesses make-up 99% of all businesses (22 million in the US) </li></ul><ul><li>Employ 51% of the private workforce. </li></ul><ul><li>Historically, create over 60% of the NET jobs in the US. </li></ul><ul><li>Comprise 96% of all exporters of goods & 51% of private sector output. </li></ul><ul><li>Have a higher level of innovation than big Businesses; </li></ul><ul><li>“ faster on their feet” than large companies. </li></ul>
  15. 15. Importance of Small Business to US Economy <ul><li>Number of Small Business Are Successful (Why) </li></ul>
  16. 16. Importance of Small Business to US Economy <ul><li>Number of Small Business Are Successful (Why) </li></ul><ul><li>Are “in-business” </li></ul><ul><ul><li>70% businesses are operating after 2 years </li></ul></ul><ul><ul><li>50% operating after 4 years </li></ul></ul><ul><ul><li>40% operating after 6 years </li></ul></ul>
  17. 17. Importance of Small Business to US Economy <ul><li>Number of Small Business Are Successful (Why) </li></ul><ul><li>Are Successful: </li></ul><ul><ul><li>Business Plan is used: </li></ul></ul><ul><ul><ul><li>To establish what to work on and when </li></ul></ul></ul><ul><ul><ul><li>To regularly track key results (sales, profits, expenses) </li></ul></ul></ul><ul><ul><ul><li>Do the “hard stuff” when it is needed (reduce expenses) </li></ul></ul></ul><ul><ul><ul><li>Have sufficient funding (good cash flow) </li></ul></ul></ul><ul><ul><ul><li>Understand the time demands of a business </li></ul></ul></ul><ul><ul><ul><li>Have support of family and friends </li></ul></ul></ul>
  18. 18. Starting New Business Process Ten Steps <ul><li>Step 1: Identify skills and experience YOU have to start a Business </li></ul><ul><li>Determine the high level of skills and experience you will provide to YOUR business. </li></ul>
  19. 19. Starting New Business Process Ten Steps <ul><li>Step 2: Perform risk assessment of YOUR business idea </li></ul><ul><li>Document your idea then test with a person in a similar business, a SCORE Counselor and/or your commercial lender. Determine the likelihood of a successful business. </li></ul>
  20. 20. Starting New Business Process Ten Steps <ul><li>Step 3: Determine the level of Financial Resources needed versus YOUR financial status </li></ul><ul><li>Determine the level of financial skills and experience required versus YOUR financial knowledge. </li></ul>
  21. 21. Starting New Business Process Ten Steps <ul><li>Step 4: Define who your target Customers are and your Product or Service </li></ul><ul><li>Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers. </li></ul>
  22. 22. Starting New Business Process Ten Steps <ul><li>Step 5: Identify the organizational structure and the operations to provide YOUR product or service </li></ul><ul><li>Describe the how the product or service will be made and design of the organization with number of people and skill levels. </li></ul>
  23. 23. Starting New Business Process Ten Steps <ul><li>Step 6: Learn the options for YOUR legal structure and key resources </li></ul><ul><li>Learn the various legal options and the pros and cons of each. </li></ul>
  24. 24. Starting New Business Process Ten Steps <ul><li>Step 7: Develop YOUR Marketing Plan </li></ul><ul><li>Describe the process for developing the various methods and approaches and making best choices for an effective Marketing Plan. </li></ul>
  25. 25. Starting New Business Process Ten Steps <ul><li>Step 8: Develop YOUR Financial Plan </li></ul><ul><li>Develop a three year cash flow with actions steps as changes occur.  </li></ul>
  26. 26. Starting New Business Process Ten Steps <ul><li>Step 9: Integrate all of the pieces into an overall business plan </li></ul><ul><li>Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required. </li></ul>
  27. 27. Starting New Business Process Ten Steps <ul><li>Step 10: Work the Plan and learn to make Adjustments </li></ul>
  28. 28. Now the Details – Are you ready???? 9:35AM
  29. 29. Step 1: Identify skills and experience YOU have to start a Business Determine the high level of skills and experience you will provide to YOUR business.
  30. 30. Step 1: Identify skills and experience YOU have to start a Business Determine the high level of skills and experience you will provide to YOUR business. <ul><li>Characteristics of Successful Business People </li></ul><ul><li>A burning desire to succeed </li></ul>
  31. 31. Step 1: Identify skills and experience YOU have to start a Business Determine the high level of skills and experience you will provide to YOUR business . <ul><li>Characteristics of Successful Business People </li></ul><ul><li>A burning desire to succeed </li></ul><ul><li>Expertise </li></ul>
  32. 32. Step 1: Identify skills and experience YOU have to start a Business Determine the high level of skills and experience you will provide to YOUR business. <ul><li>Characteristics of Successful Business People </li></ul><ul><li>A burning desire to succeed </li></ul><ul><li>Expertise </li></ul><ul><li>Management Skills </li></ul>
  33. 33. Step 1: Identify skills and experience YOU have to start a Business Determine the high level of skills and experience you will provide to YOUR business . <ul><li>Characteristics of Successful Business People </li></ul><ul><li>A burning desire to succeed </li></ul><ul><li>Expertise </li></ul><ul><li>Management Skills </li></ul><ul><li>Tolerance for a long work week </li></ul>
  34. 34. Step 1: Identify skills and experience YOU have to start a Business Determine the high level of skills and experience you will provide to YOUR business. <ul><li>Characteristics of Successful Business People </li></ul><ul><li>A burning desire to succeed </li></ul><ul><li>Expertise </li></ul><ul><li>Management Skills </li></ul><ul><li>Tolerance for a long work week </li></ul><ul><li>Adequate funding </li></ul>
  35. 35. Step 1: Identify skills and experience YOU have to start a Business Determine the high level of skills and experience you will provide to YOUR business. <ul><li>Characteristics of Successful Business People </li></ul><ul><li>A burning desire to succeed </li></ul><ul><li>Expertise </li></ul><ul><li>Management Skills </li></ul><ul><li>Tolerance for a long work week </li></ul><ul><li>Adequate funding </li></ul><ul><li>Resilience and flexibility </li></ul>
  36. 36. Step 1: Identify skills and experience YOU have to start a Business Determine the high level of skills and experience you will provide to YOUR business. <ul><li>Characteristics of Successful Business People </li></ul><ul><li>A burning desire to succeed </li></ul><ul><li>Expertise </li></ul><ul><li>Management Skills </li></ul><ul><li>Tolerance for a long work week </li></ul><ul><li>Adequate funding </li></ul><ul><li>Resilience and flexibility </li></ul><ul><li>An understanding of what’s required </li></ul>
  37. 37. Step 1: Identify skills and experience YOU have to start a Business Determine the high level of skills and experience you will provide to YOUR business. <ul><li>Characteristics of Successful Business People </li></ul><ul><li>A burning desire to succeed </li></ul><ul><li>Expertise </li></ul><ul><li>Management Skills </li></ul><ul><li>Tolerance for a long work week </li></ul><ul><li>Adequate funding </li></ul><ul><li>Resilience and flexibility </li></ul><ul><li>An understanding of what’s required </li></ul><ul><li>Do you have all of the characteristics to be successful? </li></ul>
  38. 38. STEP 2 9:50AM
  39. 39. Step 2: Perform risk assessment of YOUR business idea Document your idea then test with a person in a similar business, a SCORE Counselor and/or your commercial lender. Determine the likelihood of a successful business. <ul><li>Lack of commitment </li></ul>
  40. 40. Step 2: Perform risk assessment of YOUR business idea Document your idea then test with a person in a similar business, a SCORE Counselor and/or your commercial lender. Determine the likelihood of a successful business. <ul><li>Lack of commitment </li></ul><ul><li>Lack of vision, purpose, or principles </li></ul>
  41. 41. Step 2: Perform risk assessment of YOUR business idea Document your idea then test with a person in a similar business, a SCORE Counselor and/or your commercial lender. Determine the likelihood of a successful business. <ul><li>Lack of commitment </li></ul><ul><li>Lack of vision, purpose, or principles </li></ul><ul><li>Lack of management systems </li></ul>
  42. 42. Step 2: Perform risk assessment of YOUR business idea Document your idea then test with a person in a similar business, a SCORE Counselor and/or your commercial lender. Determine the likelihood of a successful business. <ul><li>Lack of commitment </li></ul><ul><li>Lack of vision, purpose, or principles </li></ul><ul><li>Lack of management systems </li></ul><ul><li>Poor market definition and strategy </li></ul>
  43. 43. Step 2: Perform risk assessment of YOUR business idea Document your idea then test with a person in a similar business, a SCORE Counselor and/or your commercial lender. Determine the likelihood of a successful business. <ul><li>Lack of commitment </li></ul><ul><li>Lack of vision, purpose, or principles </li></ul><ul><li>Lack of management systems </li></ul><ul><li>Poor market definition and strategy </li></ul><ul><li>Competition </li></ul>
  44. 44. Step 2: Perform risk assessment of YOUR business idea Document your idea then test with a person in a similar business, a SCORE Counselor and/or your commercial lender. Determine the likelihood of a successful business. <ul><li>Lack of commitment </li></ul><ul><li>Lack of vision, purpose, or principles </li></ul><ul><li>Lack of management systems </li></ul><ul><li>Poor market definition and strategy </li></ul><ul><li>Competition </li></ul><ul><li>Lack of Cash </li></ul>
  45. 45. Step 2: Perform risk assessment of YOUR business idea Document your idea then test with a person in a similar business, a SCORE Counselor and/or your commercial lender. Determine the likelihood of a successful business. <ul><li>Lack of commitment </li></ul><ul><li>Lack of vision, purpose, or principles </li></ul><ul><li>Lack of management systems </li></ul><ul><li>Poor market definition and strategy </li></ul><ul><li>Competition </li></ul><ul><li>Lack of Cash </li></ul><ul><li>Please assess each element as to the level of risk to YOUR business (1 to 10) (1 is the lowest level of risk) </li></ul>
  46. 46. STEP 3 10:05AM
  47. 47. Step 3: Determine the level of Financial Resources needed versus YOUR financial status Determine the level of financial skills and experience required versus YOUR financial knowledge. <ul><li>Required: </li></ul><ul><ul><li>Daily tracking of income/expenses and balancing the cash drawer </li></ul></ul><ul><ul><li>Making deposits and writing checks </li></ul></ul><ul><ul><li>Prepare all of the personnel checks and reserve the taxes </li></ul></ul><ul><ul><li>Document all income and expenses by day for the month </li></ul></ul><ul><ul><li>Balance the check book with the Bank Statement </li></ul></ul>
  48. 48. Step 3: Determine the level of Financial Resources needed versus YOUR financial status Determine the level of financial skills and experience required versus YOUR financial knowledge. <ul><li>Required: </li></ul><ul><ul><li>Daily tracking of income/expenses and balancing the cash drawer </li></ul></ul><ul><ul><li>Making deposits and writing checks </li></ul></ul><ul><ul><li>Prepare all of the personnel checks and reserve the taxes </li></ul></ul><ul><ul><li>Document all income and expenses by day for the month </li></ul></ul><ul><ul><li>Balance the check book with the Bank Statement </li></ul></ul><ul><ul><li>Prepare a formal Profit and Loss statement each month </li></ul></ul><ul><ul><li>Prepare a formal Balance Sheet each month </li></ul></ul><ul><ul><li>Do a detailed analysis of the financial information </li></ul></ul>
  49. 49. Step 3: Determine the level of Financial Resources needed versus YOUR financial status Determine the level of financial skills and experience required versus YOUR financial knowledge. <ul><li>Required: </li></ul><ul><ul><li>Daily tracking of income/expenses and balancing the cash drawer </li></ul></ul><ul><ul><li>Making deposits and writing checks </li></ul></ul><ul><ul><li>Prepare all of the personnel checks and reserve the taxes </li></ul></ul><ul><ul><li>Document all income and expenses by day for the month </li></ul></ul><ul><ul><li>Balance the check book with the Bank Statement </li></ul></ul><ul><ul><li>Prepare a formal Profit and Loss statement each month </li></ul></ul><ul><ul><li>Prepare a formal Balance Sheet each month </li></ul></ul><ul><ul><li>Do a detailed analysis of the financial information </li></ul></ul><ul><ul><li>Prepare a forecast of the income and expenses for balance of year </li></ul></ul><ul><ul><li>Compare the forecast to the budget by line item </li></ul></ul><ul><ul><li>Make required adjustments to achieve the budget </li></ul></ul><ul><ul><li>Prepare quarterly documents </li></ul></ul><ul><ul><li>File and pay quarterly taxes </li></ul></ul><ul><ul><li>Prepare annual budget </li></ul></ul><ul><ul><li>Prepare and file Federal/State Taxes </li></ul></ul>
  50. 50. Step 3: Determine the level of Financial Resources needed versus YOUR financial status Determine the level of financial skills and experience required versus YOUR financial knowledge. <ul><li>Check YOUR skills versus the Required Activities! </li></ul>
  51. 51. STEP 4 10:20
  52. 52. Step 4: Define who your target Customers are and your Product or Services business. Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers. <ul><li>Identify your Customers: </li></ul><ul><li>Retail </li></ul><ul><li>Business to Business </li></ul>
  53. 53. Step 4: Define who your target Customers are and your Product or Services business. Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers <ul><li>Define your Customer’s Profile: </li></ul><ul><li>Age </li></ul><ul><li>Sex </li></ul><ul><li>Income Levels </li></ul><ul><li>Ethnicity </li></ul><ul><li>Homeowner / Renter </li></ul><ul><li>Location </li></ul><ul><li>Other </li></ul>
  54. 54. Step 4: Define who your target Customers are and your Product or Services business. Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers. <ul><li>Define your Customer’s wants </li></ul><ul><li>Features, Benefits, and Advantages </li></ul>
  55. 55. Step 4: Define who your target Customers are and your Product or Services business. Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers. <ul><li>You have defined your customer or client AND what you think they want! </li></ul>
  56. 56. Step 4: Define who your target Customers are and your Product or Services business. Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers <ul><li>Define each of your Service or Product: </li></ul><ul><li>Features </li></ul><ul><li>Benefits </li></ul><ul><li>Uniqueness </li></ul><ul><li>Does it fill a “Niche”? </li></ul>
  57. 57. Step 4: Define who your target Customers are and your Product or Services business. Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers <ul><li>Do your target customers wants MATCH your product or service??????? </li></ul>
  58. 58. Step 4: Define who your target Customers are and your Product or Services business. Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers <ul><li>Compare your Service or Product with your </li></ul><ul><li>Competition against the same criteria: </li></ul><ul><li>Features </li></ul><ul><li>Benefits </li></ul><ul><li>Uniqueness </li></ul><ul><li> “ Niche” </li></ul>
  59. 59. Step 4: Define who your target Customers are and your Product or Services business. Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers. <ul><li>Does your target customer want your product or service OR your competitor’s?????? </li></ul>
  60. 60. Step 4: Define who your target Customers are and your Product or Service Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers. <ul><li>Elevator Pitch </li></ul><ul><li>Your mother would understand in the time it takes to ride an elevator up to the second floor </li></ul><ul><li>Now…Boil it all down to just…30-35 seconds </li></ul>
  61. 61. Step 4: Define who your target Customers are and your Product or Service Describe the target individual or group of people that you will focus your attention. Identify where your target audience is located. Describe YOUR product or service and the benefit it will provide your customers. <ul><li>Elevator Pitch </li></ul><ul><li>Your mother would understand in the time it takes to ride an elevator up to the second floor </li></ul><ul><li>Put the Idea in Words </li></ul><ul><ul><li>State your business concept </li></ul></ul><ul><ul><li>What is it you do for Customers? </li></ul></ul><ul><ul><li>How does the Customer benefit? </li></ul></ul><ul><ul><li>What’s in it for the Customer? </li></ul></ul><ul><ul><li>Who is in your Target Market? </li></ul></ul><ul><ul><li>How can Prospects be identified? Separate from others? </li></ul></ul><ul><ul><li>How do you want customers to perceive your business? </li></ul></ul><ul><li>Now…Boil it all down to just…30-35 seconds </li></ul>
  62. 62. Financial Skills Required, Target Customer and product/service defined
  63. 63. STEP 5 10:50
  64. 64. Step 5: Identify the organizational structure and the operations to provide YOUR product or service Describe the how the product or service will be made and design of the organization with number of people and skill levels. <ul><li>Organization Chart </li></ul><ul><li>Key Positions </li></ul><ul><li>Responsibilities and duties </li></ul><ul><li>Who </li></ul><ul><li>Qualifications </li></ul><ul><li>Employees/Subcontractors/Independent Contractors </li></ul><ul><li>When </li></ul>
  65. 65. Step 5: Identify the organizational structure and the operations to provide YOUR product or service Describe the how the product or service will be made and design of the organization with number of people and skill levels. <ul><li>Organization Chart </li></ul><ul><li>Key Positions </li></ul><ul><li>Responsibilities and duties </li></ul><ul><li>Who </li></ul><ul><li>Qualifications </li></ul><ul><li>Employees/Subcontractors/Independent Contractors </li></ul><ul><li>When </li></ul><ul><li>Other Factors to consider </li></ul><ul><ul><ul><li>Growth and Expansion Plan </li></ul></ul></ul><ul><ul><ul><li>Training </li></ul></ul></ul><ul><ul><ul><li>Who will handle payroll </li></ul></ul></ul><ul><ul><ul><li>Support - Help </li></ul></ul></ul><ul><ul><ul><li>Board of Directors – Required for Corporation </li></ul></ul></ul><ul><ul><ul><li>Advisory Board – Desirable for All (Who?, Qualifications?) </li></ul></ul></ul><ul><ul><ul><li>Legal </li></ul></ul></ul><ul><ul><ul><li>Accounting </li></ul></ul></ul><ul><ul><ul><li>Insurance </li></ul></ul></ul><ul><ul><ul><li>Technical </li></ul></ul></ul><ul><ul><ul><li>Business </li></ul></ul></ul>
  66. 66. Step 5: Identify the organizational structure and the operations to provide YOUR product or service Describe the how the product or service will be made and design of the organization with number of people and skill levels. <ul><li>Operation Plan - Checklist </li></ul><ul><li>How will You obtain/make/provide the product/service? </li></ul><ul><li>Make it, Buy it? All or part? </li></ul><ul><li>Sell it wholesale or retail? </li></ul><ul><li>At your store/service center? </li></ul><ul><li>By mail, internet? </li></ul><ul><li>Using Salespersons, Yourself? </li></ul>
  67. 67. Step 5: Identify the organizational structure and the operations to provide YOUR product or service Describe the how the product or service will be made and design of the organization with number of people and skill levels. <ul><li>Operation Plan - Checklist </li></ul><ul><li>How will You obtain/make/provide the product/service? </li></ul><ul><li>Make it, Buy it? All or part? </li></ul><ul><li>Sell it wholesale or retail? </li></ul><ul><li>At your store/service center? </li></ul><ul><li>By mail, internet? </li></ul><ul><li>Using Salespersons, Yourself? </li></ul><ul><li>Startup Capital Requirements </li></ul><ul><li>Any Plans for Growth? </li></ul><ul><li>When? How? Resources Needed? </li></ul><ul><li>Patents and Copyrights? </li></ul><ul><li>What are Your plans for Contingencies? </li></ul><ul><li>Identify most probable/possible contingencies </li></ul><ul><li>How will You Address Them </li></ul>
  68. 68. Step 5: Identify the organizational structure and the operations to provide YOUR product or service Describe the how the product or service will be made and design of the organization with number of people and skill levels. <ul><li>Facilities Plan – Checklist </li></ul><ul><li>Location? </li></ul><ul><li>Rent/lease/buy </li></ul><ul><li>How? </li></ul><ul><li>When? </li></ul><ul><li>How much? </li></ul><ul><li>Amenities </li></ul><ul><li>Parking </li></ul><ul><li>Public transportation </li></ul>
  69. 69. Step 5: Identify the organizational structure and the operations to provide YOUR product or service Describe the how the product or service will be made and design of the organization with number of people and skill levels. <ul><li>Facilities Plan – Checklist </li></ul><ul><li>Location? </li></ul><ul><li>Rent/lease/buy </li></ul><ul><li>How? </li></ul><ul><li>When? </li></ul><ul><li>How much? </li></ul><ul><li>Amenities </li></ul><ul><li>Parking </li></ul><ul><li>Public transportation </li></ul><ul><li>Distribution/Shipping channels </li></ul><ul><li>Accessibility </li></ul><ul><li>Required Adaptation to your Business </li></ul><ul><li>Zoning </li></ul><ul><li>Utilities </li></ul><ul><li>Modifications </li></ul><ul><li>Licenses & Permits </li></ul><ul><li>Equipment Requirements? </li></ul><ul><li>New or used </li></ul>
  70. 70. STEP 6 11:05AM
  71. 71. Step 6: Learn the options for YOUR legal structure and key resources Learn the various legal options and the pros and cons of each. <ul><li>Select your Business Structure </li></ul><ul><ul><li>Sole Proprietorship </li></ul></ul><ul><ul><li>Partnership </li></ul></ul><ul><ul><li>Limited Liability </li></ul></ul><ul><ul><li>Incorporation </li></ul></ul><ul><ul><li>C-Corp & S-Corp </li></ul></ul>
  72. 72. Step 6: Learn the options for YOUR legal structure and key resources Learn the various legal options and the pros and cons of each. <ul><li>Sole Proprietorship </li></ul><ul><ul><li>Most used – 70% of 20 million businesses </li></ul></ul><ul><ul><li>Maximum control and freedom of action </li></ul></ul><ul><ul><li>Simple and least costly to start </li></ul></ul><ul><ul><li>Less government regulation and reporting </li></ul></ul><ul><ul><li>Profits are taxed as income to the owner </li></ul></ul><ul><ul><li>Owner’s Social Security and Medicare are taxed from business profit </li></ul></ul>
  73. 73. Step 6: Learn the options for YOUR legal structure and key resources Learn the various legal options and the pros and cons of each. <ul><li>Partnership </li></ul><ul><ul><li>Advantages are similar to sole proprietorship </li></ul></ul><ul><ul><li>Additional source of capital </li></ul></ul><ul><ul><li>Partners divide profit and loss </li></ul></ul><ul><ul><li>Two or more heads better than one </li></ul></ul>
  74. 74. Step 6: Learn the options for YOUR legal structure and key resources Learn the various legal options and the pros and cons of each. <ul><li>Limited Liability Company </li></ul><ul><ul><li>A Hybrid – Corporate & Partnership </li></ul></ul><ul><ul><li>State chartered – business name includes LLC </li></ul></ul><ul><ul><li>Professional Services </li></ul></ul><ul><ul><li>Income and Tax Benefits </li></ul></ul><ul><ul><li>More flexibility in allocating profit & loss </li></ul></ul><ul><ul><li>Avoids double taxation better than C-corp </li></ul></ul><ul><ul><li>Reduced Personal Liability </li></ul></ul>
  75. 75. Step 6: Learn the options for YOUR legal structure and key resources Learn the various legal options and the pros and cons of each. <ul><li>Incorporation, C-Corp </li></ul><ul><ul><li>Separates personal from business </li></ul></ul><ul><ul><li>Limited liability for stockholders </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul><ul><ul><li>Easier to raise capital </li></ul></ul><ul><ul><li>Health & insurance benefits </li></ul></ul><ul><ul><li>Continuity </li></ul></ul><ul><ul><li>Change in ownership need not affect management </li></ul></ul>
  76. 76. Step 6: Learn the options for YOUR legal structure and key resources Learn the various legal options and the pros and cons of each. <ul><li>Incorporation, S-Corp </li></ul><ul><ul><li>Corporate Credibility </li></ul></ul><ul><ul><li>Created for Small Business </li></ul></ul><ul><ul><li>Small Business Tax Benefits </li></ul></ul><ul><ul><li>Avoids C-Corp double taxation </li></ul></ul><ul><ul><li>Flexibility </li></ul></ul>
  77. 77. Step 6: Learn the options for YOUR legal structure and key resources Learn the various legal options and the pros and cons of each. <ul><li>Regulations - Licenses and Permits </li></ul><ul><ul><li>YOU must assume that your business requires them. </li></ul></ul>
  78. 78. Step 6: Learn the options for YOUR legal structure and key resources Learn the various legal options and the pros and cons of each. <ul><li>Regulations - Licenses and Permits </li></ul><ul><ul><li>YOU must assume that your business requires them. </li></ul></ul><ul><ul><li>The failure of government to organize or centralize the obtaining of licenses and permits does not exonerate you if you fail to obtain those required for your business. </li></ul></ul><ul><ul><li>SCORE Brief #10.03 provides phone numbers of agencies in various locales which can help your search. See your SCORE counselor to get a copy. </li></ul></ul>
  79. 79. STEP 7 11:20AM
  80. 80. Step 7: Develop YOUR Marketing Plan . Describe the process for developing the various methods and approaches and making best choices for an effective Marketing Plan . <ul><li>Definition </li></ul>
  81. 81. Step 7: Develop YOUR Marketing Plan . Definition <ul><li>The ENGINE that DRIVES your business </li></ul><ul><li>Price </li></ul><ul><li>Product </li></ul><ul><li>Place </li></ul><ul><li>Promotion </li></ul>
  82. 82. Step 7: Develop YOUR Marketing Plan . Describe the process for developing the various methods and approaches and making best choices for an effective Marketing Plan . <ul><li>Definition </li></ul><ul><li>Marketing Plan </li></ul>
  83. 83. Step 7: Develop YOUR Marketing Plan . Marketing Plan <ul><li>Situation Analysis </li></ul><ul><li>Target Customers </li></ul>
  84. 84. Step 7: Develop YOUR Marketing Plan . Marketing Plan <ul><li>Situation Analysis </li></ul><ul><li>Target Customers </li></ul><ul><li>Competition </li></ul>
  85. 85. Step 7: Develop YOUR Marketing Plan . Marketing Plan <ul><li>Situation Analysis </li></ul><ul><li>Target Customers </li></ul><ul><li>Competition </li></ul><ul><li>Industry Trends </li></ul>
  86. 86. Step 7: Develop YOUR Marketing Plan . Marketing Plan <ul><li>Situation Analysis </li></ul><ul><li>Target Customers </li></ul><ul><li>Competition </li></ul><ul><li>Industry Trends </li></ul><ul><li>Economic Trends </li></ul>
  87. 87. Step 7: Develop YOUR Marketing Plan . Marketing Plan <ul><li>Situation Analysis </li></ul><ul><li>Target Customers </li></ul><ul><li>Competition </li></ul><ul><li>Industry Trends </li></ul><ul><li>Economic Trends </li></ul><ul><li>Social Trends </li></ul>
  88. 88. Step 7: Develop YOUR Marketing Plan . Describe the process for developing the various methods and approaches and making best choices for an effective Marketing Plan . <ul><li>Definition </li></ul><ul><li>Marketing Plan </li></ul><ul><li>Marketing Strategy </li></ul>
  89. 89. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Business Description </li></ul>
  90. 90. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Business Description: </li></ul><ul><li>Product or Services </li></ul>
  91. 91. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Business Description: </li></ul><ul><li>Product or Services </li></ul><ul><li>Customer Benefits </li></ul>
  92. 92. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Business Description: </li></ul><ul><li>Product or Services </li></ul><ul><li>Customer Benefits </li></ul><ul><li>Management Organization </li></ul>
  93. 93. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Business Description: </li></ul><ul><li>Product or Services </li></ul><ul><li>Customer Benefits Management Organization </li></ul><ul><li>Strengths and Weaknesses </li></ul><ul><li>“ Niche” </li></ul>
  94. 94. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Business Description </li></ul><ul><li>Financial Requirements </li></ul>
  95. 95. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Financial Requirements: </li></ul><ul><li>How much </li></ul>
  96. 96. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Financial Requirements: </li></ul><ul><li>How much </li></ul><ul><li>How will you get it </li></ul>
  97. 97. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Business Description </li></ul><ul><li>Financial Requirements </li></ul><ul><li>Target Market </li></ul>
  98. 98. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Target Market: </li></ul><ul><li>Target Customers </li></ul>
  99. 99. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Target Market: </li></ul><ul><li>Target Customers </li></ul><ul><li>Market Segment </li></ul>
  100. 100. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Target Market: </li></ul><ul><li>Target Customers </li></ul><ul><li>Market Segment </li></ul><ul><li>Product / Services </li></ul>
  101. 101. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Target Market: </li></ul><ul><li>Target Customers </li></ul><ul><li>Market Segment </li></ul><ul><li>Product / Services </li></ul><ul><li>Competition </li></ul>
  102. 102. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Business Description </li></ul><ul><li>Financial Requirements </li></ul><ul><li>Target Market </li></ul><ul><li>Competition </li></ul>
  103. 103. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Competition: </li></ul><ul><li>Major Competitors </li></ul>
  104. 104. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Competition: </li></ul><ul><li>Major Competitors </li></ul><ul><li>Their Strengths and Weaknesses </li></ul>
  105. 105. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Competition: </li></ul><ul><li>Major Competitors </li></ul><ul><li>Their Strengths and Weaknesses </li></ul><ul><li>Their Marketing Strategies </li></ul>
  106. 106. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Business Description </li></ul><ul><li>Financial Requirements </li></ul><ul><li>Target Market </li></ul><ul><li>Competition </li></ul><ul><li>Promotion /Advertising </li></ul>
  107. 107. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Promotion /Advertising: </li></ul><ul><li>Sales Style </li></ul>
  108. 108. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Promotion /Advertising: </li></ul><ul><li>Sales Style </li></ul><ul><li>Media services </li></ul>
  109. 109. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Promotion /Advertising: </li></ul><ul><li>Sales Style </li></ul><ul><li>Media services </li></ul><ul><li>Measurements </li></ul>
  110. 110. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Promotion /Advertising: </li></ul><ul><li>Sales Style </li></ul><ul><li>Media services </li></ul><ul><li>Measurements </li></ul><ul><li>Networking </li></ul>
  111. 111. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Business Description </li></ul><ul><li>Financial Requirements </li></ul><ul><li>Target Market </li></ul><ul><li>Competition </li></ul><ul><li>Promotion / Advertising </li></ul><ul><li>Market Research </li></ul>
  112. 112. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Market Research: </li></ul><ul><li>Market Trends </li></ul>
  113. 113. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Market Research: </li></ul><ul><li>Market Trends </li></ul><ul><li>Sales / Profitability </li></ul>
  114. 114. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Market Research: </li></ul><ul><li>Market Trends </li></ul><ul><li>Sales / Profitability </li></ul><ul><li>Economic Interests </li></ul>
  115. 115. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Market Research: </li></ul><ul><li>Market Trends </li></ul><ul><li>Sales / Profitability </li></ul><ul><li>Economic Interests </li></ul><ul><li>Population Shifts </li></ul>
  116. 116. Step 7: Develop YOUR Marketing Plan . Marketing Strategy <ul><li>Market Research: </li></ul><ul><li>Market Trends </li></ul><ul><li>Sales / Profitability </li></ul><ul><li>Economic Interests </li></ul><ul><li>Population Shifts </li></ul><ul><li>Competition </li></ul>
  117. 117. Step 7: Develop YOUR Marketing Plan . Describe the process for developing the various methods and approaches and making best choices for an effective Marketing Plan . <ul><li>Definition </li></ul><ul><li>Marketing Plan </li></ul><ul><li>Marketing Strategy </li></ul><ul><li>Advertising </li></ul>
  118. 118. Step 7: Develop YOUR Marketing Plan . Advertising <ul><li>Promotional Materials </li></ul>
  119. 119. Step 7: Develop YOUR Marketing Plan . Advertising <ul><li>Promotional Materials: </li></ul><ul><li>Product Literature </li></ul><ul><li>Web Site </li></ul><ul><li>Catalogs </li></ul><ul><li>Brochures </li></ul><ul><li>Business Cards </li></ul><ul><li>Newsletters </li></ul><ul><li>Point-of-Sale Handouts </li></ul>
  120. 120. Step 7: Develop YOUR Marketing Plan . Advertising <ul><li>Promotional Materials </li></ul><ul><li>Public Relations </li></ul>
  121. 121. Step 7: Develop YOUR Marketing Plan . Advertising <ul><li>Public Relations: </li></ul><ul><li>Press Releases </li></ul><ul><li>Networking </li></ul><ul><li>Newsletter </li></ul><ul><li>Community Involvement </li></ul><ul><li>Volunteer Involvement </li></ul><ul><li>Speaking </li></ul><ul><li>Seminars </li></ul><ul><li>Event Sponsorships </li></ul><ul><li>Public Articles </li></ul>
  122. 122. Step 7: Develop YOUR Marketing Plan . Advertising <ul><li>Promotional Materials </li></ul><ul><li>Public Relations </li></ul><ul><li>Promotional Events </li></ul>
  123. 123. Step 7: Develop YOUR Marketing Plan . Advertising <ul><li>Promotional Events: </li></ul><ul><li>Trade Shows </li></ul><ul><li>Certificates </li></ul><ul><li>Sweepstakes </li></ul><ul><li>Offers </li></ul><ul><li>Frequent Buyer Points </li></ul><ul><li>City/Township/Church Events </li></ul>
  124. 124. Step 7: Develop YOUR Marketing Plan . Advertising <ul><li>Promotional Materials </li></ul><ul><li>Public Relations </li></ul><ul><li>Promotional Events </li></ul><ul><li>Budget </li></ul>
  125. 125. Step 7: Develop YOUR Marketing Plan . Advertising <ul><li>Budget: </li></ul><ul><li>Start-up Funds </li></ul><ul><li>Allocate ½ of your Gross Margin to Marketing </li></ul>
  126. 126. Step 7: Develop YOUR Marketing Plan . Describe the process for developing the various methods and approaches and making best choices for an effective Marketing Plan . <ul><li>Definition </li></ul><ul><li>Marketing Plan </li></ul><ul><li>Marketing Strategy </li></ul><ul><li>Advertising </li></ul><ul><li>Customer Service </li></ul>
  127. 127. Step 7: Develop YOUR Marketing Plan . Describe the process for developing the various methods and approaches and making best choices for an effective Marketing Plan . <ul><li>Customer Service </li></ul><ul><ul><ul><li>Will you need a Customer Center </li></ul></ul></ul><ul><ul><ul><li>Will you need a Web Site </li></ul></ul></ul><ul><ul><ul><li>Will you need a 800 Number </li></ul></ul></ul><ul><ul><ul><li>Will you need a Receptionist </li></ul></ul></ul><ul><ul><ul><li>How will you handle returns </li></ul></ul></ul><ul><ul><ul><li>What about trade-ins </li></ul></ul></ul><ul><ul><ul><li>What about Warranties, Guaranties and Service </li></ul></ul></ul><ul><ul><ul><li>Contracts </li></ul></ul></ul><ul><ul><ul><li>Analyze what your Competition does </li></ul></ul></ul>
  128. 128. STEP 8 11:50AM
  129. 129. Step 8: Develop YOUR Financial Plan Develop a three year cash flow with actions steps as changes occur.
  130. 130. Year 1 Year 2 Year 3 Grand Total # Services Revenue per service Income # of employees $ paid per employee Personnel Costs Total Expenses – using 50% rule Income - Expenses Startup costs Total per year Cum. Total Amount you will invest Amount you need to borrow
  131. 131. Step 8: Develop YOUR Financial Plan Develop a three year cash flow with actions steps as changes occur. How much equipment will you need for startup? (List) How many products or services will you provide in the first year? How much will you charge per product or service?
  132. 132. Step 8: Develop YOUR Financial Plan Develop a three year cash flow with actions steps as changes occur. How much equipment will you need for startup? (List) How many products or services will you provide in the first year? How much will you charge per product or service? How many people will be on the payroll? How much will you pay each person? How much will your expenses be if payroll is 50% of the expenses?
  133. 133. Step 8: Develop YOUR Financial Plan Develop a three year cash flow with actions steps as changes occur. How much money do you need to startup? How much will YOU invest? Please complete the next page to get the answer!
  134. 134. Example Your Data Year 1 Your Data Year 2 Your Data Year 3 Grand Total # Services 500 Revenue per service 150 Income 75,000 # of employees 2 $ paid per employee 20,000 Personnel Costs 40,000 Total Expenses – using 50% rule 60,000 Income - Expenses 15,000 Startup costs 30,000 Total per year (15,000) Cum. Total (15,000) Amount you will invest Amount you need to borrow
  135. 135. STEP 9 12:05PM
  136. 136. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required <ul><li>Business Plan – WHY? </li></ul><ul><li>WHAT IS A BUSINESS PLAN? </li></ul><ul><ul><li>The business plan is a written document that describes your business and your plan for running it…. This becomes your management “BLUEPRINT” throughout your business life. </li></ul></ul>
  137. 137. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required <ul><li>Why do I need a Business Plan? </li></ul><ul><ul><li>A plan raises your odds of success. The process forces you to take an objective, critical, unemotional look at your project. </li></ul></ul><ul><ul><li>The plan communicates your ideas to others and provides the basis for your financial proposal. </li></ul></ul><ul><ul><li>The finished plan becomes your operating tool and benchmark of progress. (Are you working the plan and is it working?) </li></ul></ul>
  138. 138. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required <ul><li>Why do I need a Business Plan? </li></ul><ul><ul><li>It answers questions such as: </li></ul></ul><ul><ul><ul><li>Why do I want to go into business? </li></ul></ul></ul><ul><ul><ul><li>What business do I want to be in? </li></ul></ul></ul><ul><ul><ul><li>Who are my customers? </li></ul></ul></ul>
  139. 139. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required <ul><li>Why do I need a Business Plan? </li></ul><ul><ul><li>It answers questions such as: </li></ul></ul><ul><ul><ul><li>Why do I want to go into business? </li></ul></ul></ul><ul><ul><ul><li>What business do I want to be in? </li></ul></ul></ul><ul><ul><ul><li>Who are my customers? </li></ul></ul></ul><ul><ul><ul><li>What is the market condition? </li></ul></ul></ul><ul><ul><ul><li>How will I manage this business? </li></ul></ul></ul><ul><ul><ul><li>What are my financial needs? </li></ul></ul></ul>
  140. 140. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required <ul><li>Business Plan – </li></ul><ul><li>HOW TO… </li></ul><ul><ul><ul><li>Researching and writing a solid business plan takes time </li></ul></ul></ul>
  141. 141. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required <ul><li>Business Plan – </li></ul><ul><li>HOW TO… </li></ul><ul><ul><ul><li>Focus on the intended reader </li></ul></ul></ul>
  142. 142. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required <ul><li>Business Plan – </li></ul><ul><li>HOW TO… </li></ul><ul><ul><ul><li>Be honest and realistic </li></ul></ul></ul>
  143. 143. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required <ul><li>Business Plan – </li></ul><ul><li>HOW TO… </li></ul><ul><ul><ul><li>Use layman terms </li></ul></ul></ul>
  144. 144. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required <ul><li>Business Plan – </li></ul><ul><li>HOW TO… </li></ul><ul><ul><li>Substantiate your statements </li></ul></ul>
  145. 145. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies as required <ul><li>Business Plan – </li></ul><ul><li>HOW TO… </li></ul><ul><ul><li>Remain flexible </li></ul></ul>
  146. 146. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategie s <ul><li>BUSINESS PLAN – FORMAT and COMPOSITION </li></ul><ul><li>ESSENTIAL COMPONENTS </li></ul><ul><ul><li>Executive Summary </li></ul></ul><ul><ul><li>Description of Products and Services </li></ul></ul><ul><ul><li>The Market </li></ul></ul><ul><ul><li>Marketing Strategy </li></ul></ul><ul><ul><li>Competition </li></ul></ul><ul><ul><li>Organization and Operations </li></ul></ul><ul><ul><li>The Management Team </li></ul></ul><ul><ul><li>Personnel </li></ul></ul><ul><ul><li>Financial Information </li></ul></ul><ul><ul><li>Timetables & Benchmarks </li></ul></ul><ul><ul><li>Supporting Documentation </li></ul></ul>
  147. 147. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies <ul><li>EXECUTIVE SUMMARY - An overview of your business </li></ul><ul><ul><li>Business Description </li></ul></ul><ul><ul><li>Market Niche </li></ul></ul><ul><ul><li>Management Expertise </li></ul></ul><ul><ul><li>Sales and Profit Forecast – five years </li></ul></ul><ul><ul><li>Request for financing </li></ul></ul><ul><ul><li>Use of funds and repayment </li></ul></ul>
  148. 148. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies <ul><li>THE MARKET </li></ul><ul><ul><li>Niche or target audience </li></ul></ul><ul><ul><li>Explanation of market demand </li></ul></ul><ul><ul><li>Market share </li></ul></ul><ul><ul><li>Growth potential </li></ul></ul><ul><ul><li>Product pricing </li></ul></ul>
  149. 149. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies <ul><li>MARKETING STRATEGY </li></ul><ul><ul><li>Analyze competitors marketing strategies </li></ul></ul><ul><ul><li>Integrate multiple media and promotional strategies </li></ul></ul><ul><ul><li>Detail distribution strategy </li></ul></ul>
  150. 150. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies <ul><li>ORGANIZATION and OPERATIONS </li></ul><ul><ul><li>Continuing Development </li></ul></ul><ul><ul><li>Staffing </li></ul></ul><ul><ul><li>Purchasing </li></ul></ul><ul><ul><li>Facilities </li></ul></ul><ul><ul><li>Equipment </li></ul></ul>
  151. 151. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies <ul><li>MANAGEMENT TEAM </li></ul><ul><ul><li>Experience and Quality </li></ul></ul><ul><ul><li>Personal history of the principals </li></ul></ul><ul><ul><li>Work experience </li></ul></ul><ul><ul><li>Management experience </li></ul></ul><ul><ul><li>Responsibilities </li></ul></ul><ul><ul><li>Salaries and Benefits </li></ul></ul>
  152. 152. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies <ul><li>PERSONNEL </li></ul><ul><ul><li>Current personnel needs </li></ul></ul><ul><ul><li>Future needs </li></ul></ul><ul><ul><li>Skill requirements </li></ul></ul><ul><ul><li>Job descriptions </li></ul></ul><ul><ul><li>Available labor pool </li></ul></ul><ul><ul><li>Salaries and benefit </li></ul></ul>
  153. 153. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies <ul><li>FINANCIAL Information </li></ul><ul><ul><li>Sources of Capital </li></ul></ul><ul><ul><li>Balance Sheet </li></ul></ul><ul><ul><li>Break-even analysis </li></ul></ul><ul><ul><li>Income Statement </li></ul></ul><ul><ul><li>Cash Flow </li></ul></ul>
  154. 154. Step 9: Integrate all of the pieces into an overall business plan Perform a quarterly check of the strategies status and the outcome measures, and then make adjustments to the strategies <ul><li>SUPPORTING DOCUMENTATION </li></ul><ul><ul><li>Resumes </li></ul></ul><ul><ul><li>Credit Information </li></ul></ul><ul><ul><li>Quotes or estimates </li></ul></ul><ul><ul><li>Letters of intent from prospective customers </li></ul></ul><ul><ul><li>Personal references </li></ul></ul><ul><ul><li>Leases or buy/sell agreements </li></ul></ul><ul><ul><li>Legal documents relevant to the business </li></ul></ul>
  155. 155. STEP 10 12:20PM
  156. 156. Step 10: Work the Plan and learn to make Adjustments <ul><li>Family Considerations (some things to think about) </li></ul><ul><ul><li>You and Spouse in the same business </li></ul></ul><ul><ul><li>How will business decisions be made? </li></ul></ul><ul><ul><li>Who plays what role in the business? </li></ul></ul><ul><ul><li>And at home? </li></ul></ul>
  157. 157. Step 10: Work the Plan and learn to make Adjustments <ul><li>Family Considerations (some things to think about) </li></ul><ul><ul><li>You and Spouse in the same business </li></ul></ul><ul><ul><li>How will business decisions be made? </li></ul></ul><ul><ul><li>Who plays what role in the business? </li></ul></ul><ul><ul><li>And at home? </li></ul></ul><ul><ul><li>You and Spouse have separate businesses </li></ul></ul><ul><ul><li>Which business has priority with family resources? </li></ul></ul><ul><ul><li>Who baby-sits while the other works over the weekend? </li></ul></ul><ul><ul><li>How will you coordinate travel and work schedules? </li></ul></ul><ul><ul><li>Only one is active in a business </li></ul></ul><ul><ul><li>You’re in different universes, how to avoid drifting apart? </li></ul></ul><ul><ul><li>How to maintain a common vision of your financial and family goals? </li></ul></ul>
  158. 158. Step 10: Work the Plan and learn to make Adjustments <ul><li>How to Proceed </li></ul><ul><ul><li>What Can SCORE Do? </li></ul></ul>
  159. 159. Step 10: Work the Plan and learn to make Adjustments <ul><li>SCORE Counseling </li></ul><ul><ul><li>CONFIDENTIAL </li></ul></ul><ul><ul><ul><li>Counselors abide by a code of ethics and honor confidentiality. </li></ul></ul></ul><ul><ul><li>FAST </li></ul></ul><ul><ul><ul><li>Receive advice directly from an experienced executive. </li></ul></ul></ul><ul><ul><ul><li>Variety of Expertise available </li></ul></ul></ul><ul><ul><li>FREE </li></ul></ul><ul><ul><ul><li>Offered free-of-charge, as a public service. </li></ul></ul></ul><ul><ul><ul><li>No limit on number of sessions </li></ul></ul></ul><ul><ul><ul><li>Available to all U.S. citizens & green card holders </li></ul></ul></ul><ul><ul><li>At downtown or satellite offices. Field counseling at your business' site. </li></ul></ul><ul><ul><li>SCORE advice helps businesses succeed. </li></ul></ul><ul><ul><li>An application for personal counseling is included in your workbook or you can apply on the web @scorechapter34.org </li></ul></ul>
  160. 160. Step 10: Work the Plan and learn to make Adjustments <ul><li>Honestly appraise your strengths and weaknesses </li></ul>
  161. 161. Step 10: Work the Plan and learn to make Adjustments <ul><li>Do you have the Step 1 characteristics to succeed? Are there weaknesses you need to address? Do you know what to do next? </li></ul>
  162. 162. Step 10: Work the Plan and learn to make Adjustments <ul><li>Do you have issues in the Step 2 risk assessment that you are not confident you can address? Do you know what to do next? </li></ul>
  163. 163. Step 10: Work the Plan and learn to make Adjustments <ul><li>What do You need to do? </li></ul><ul><ul><li>SUCCESS in Small Business can be yours. </li></ul></ul><ul><ul><li>When You Learn to Do It THE RIGHT WAY! </li></ul></ul><ul><ul><li>The importance of doing it right…(because the odds are against you) </li></ul></ul>
  164. 164. Step 10: Work the Plan and learn to make Adjustments <ul><li>To beat the odds… </li></ul><ul><li>Select the right business [the one you know and have a passion for] </li></ul><ul><li>Know [research, learn] the market, customers and competition </li></ul><ul><li>Choose a viable market niche [avoid me-too and price cutting businesses] </li></ul><ul><li>Define your marketing strategy </li></ul><ul><li>Run a “back-of-the-envelope” break even assessment early in the game </li></ul><ul><li>DEVELOP A BUSINESS PLAN (A good business plan helps set you apart from the crowd) </li></ul><ul><li>Develop credible [realistic and substantiated] financial projections and a financial model </li></ul><ul><li>Define the right legal business structure </li></ul><ul><li>Adequately capitalize the company [equity and debt financing] </li></ul><ul><li>Keep records and establish and accounting system from day 1 </li></ul><ul><li>Hire develop & TRAIN good employees </li></ul><ul><li>Manage risk [insurance] </li></ul><ul><li>Effectively use cyberspace and conventional advertising </li></ul><ul><li>Attract and retain customers </li></ul><ul><li>Manage cash flow, manage cash flow, manage cash flow…daily! </li></ul>
  165. 165. Step 10: Work the Plan and learn to make Adjustments <ul><li>Seek counseling, use mentors or sounding boards [leave pride at the door] </li></ul><ul><li>Stay up-to-date, research, learn from your customers and competitors, continuously improve, develop an edge… </li></ul><ul><li>Work on your business rather than just in your business </li></ul>

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