2. Introductions …
Small
The
Business
Business
Development
Advisor
Centers
Texas State SBDC 2011
3. Managing Expectations
1) From Idea to Launch … What Happens?
50% Don’t Make it to Step-2 (Business Plan), 75% Never Launch
* It is Hard Work & Long Hours * I Have to Promote & Sell Myself
* I Have to Use My Own Money * I’m Not Really That Committed
2) Failure Rates …. Why?
50% of Starts Fail in First 2 Years, 75% of Starts Fail in First 5 Years
* Start For the Wrong Reasons * Location, Location, Location
* Poor Management * Poor Planning
* Insufficient Capital * Overexpansion (Focus/Discipline)
* Website & Technology * Sales, Marketing, Pricing
3) What Can You Do Differently?
* Research/Plan * Resources/Help
* Over-Funding * Networking/Technology
* Do It Yourself * Sell, Sell, Sell
Texas State SBDC 2011
4. Dispelling Myths & Misconceptions
• The SBA “Money Tree” & Grants Will Get Me There
• If I Build It, They Will Come !!!
• I Believe … Therefore everyone else will
• Raising money is the end in itself; $ validates you
• Someone is going to steal my idea…
– Confidentiality Agreements & Intellectual Property
• No Platitudes …
• It’s flawless, can’t fail • There is no competition
• I must maintain control • Best customer service
Texas State SBDC 2011
5. Startup Money
Sources of Start-up Capital…
– Owner Equity
– Family & Friends
– Funding Websites
85%
----------------------------------------------------------------
– Bank Loans
– Formal Investors
– Grants & Competitions
– SBIR/STTR/Etc. Business Cycle Bank Loan Decisions
&
Outside Funding Paths
A Business Plan ???
Texas State SBDC 2011
8. Do You Need it in Writing?
Three Stories – No, Yes, Partial
• Do you have a clear vision?
• Do you have years of experience, network, and
reputation in your industry?
• Can you clearly describe your customer profile, market
niche, marketing approach, sales strategy?
• Do you have the capital, credit score, partners and
resources?
Texas State SBDC 2011
9. The Business Plan
• Narrative Component & Financial Component
– Starting with Assumptions
– DIY: Don’t Use Canned Software or Paid Writer
• What Characterizes a Good Business Plan
• What’s New in Business Plans
• What is Your Audience Looking For?
– Ten Traits in Ten Minutes
• Additional Suggestions
• Do’s & Don’t’s
• Keep Your Eye on the Prize
Texas State SBDC 2011
10. Narrative Components of a
Business Plan
• Introduction, Executive/Financial Summary
• The Idea: Your Products and Services
• Customer Profile, Need, Target Market
• Product, Technology, Operations
• Marketing Plan & Budget
• Sales Strategy & Tactics
• Team
Texas State SBDC 2010
11. Financial Components of a
Business Plan
• Budgets (Launch / Operations)
Show
• Sources & Uses of Funds Milestones
• Business Financial Projections
• Personal Financials & Tax Returns
• Credit Score / Report
• Supporting Documentation
Texas State SBDC 2010
12. What Characterizes a Good Plan?
• 3 Legged Fit. Market, Personal, Financial
• Targeted, direct, purposeful. Specific/Focused
• Supported by verifiable research and insightful
analysis. Bottom-up, First.
• Recognizes risks, threats, and the competitive
environment. Realistic.
• Embodies real-world opportunities and planned
contingencies. Thoughtful & Agile.
• Reflects you & your Business. Unique.
• Clear, Concise, and Compelling. Respect.
Texas State SBDC 2011
13. What’s New in Business Plans!
by Rhonda Abrams (Business Plan Author)
• Consider Globalization / Outsourcing
• Greater Emphasis on Feasibility Analysis
• Plan for the Use/Role of Technology and
Social Media in Your Business
• Address Social Responsibility
• Have a Plan for Distributing your Plan
• Peter Gruber (Yahoo Finance) …
– “If you can’t tell it, you can’t sell it” (VIDEO)
Texas State SBDC 2011
14. Ten Traits in Ten Minutes
(by David Rose, Venture Capitalist)
Experience Leadership
Knowledge Commitment
Skills Vision
Passion
Integrity
Realism Traction
Humility/Coachability
Texas State SBDC 2011
15. Additional Suggestions
• Know Your Plan (Walk the Talk)
• Get Help & Solicit Genuine Feedback
• Make Sure it all Connects, Be Consistent
• Be Passionate, Don’t Follow Your Passions
• Communicate @ 8th-Grade Level
• Professionalism Counts
• People Connect to People
• Remember: It’s All About Money
Texas State SBDC 2011
16. Do’s and Don’ts
• Do: Progress logically & use lots of • Don’t: Include typos, errors,
visuals omissions
• Do: Connect to things your audience • Don’t: Present internal
understands inconsistencies or contradictions
• Do: Cite independent sources for • Don’t: Discuss things the audience
validation won’t understand
• Do: Make sure the opportunity is • Don’t: Say anything untrue,
believable unbelievable, or irrelevant
• Do: Edit, Edit, Edit – Devil’s • Don’t: Guess at numbers or use
Advocate random assumptions
Texas State SBDC 2011
17. Keep Your Eye on the Prize
• I Don’t Know You ? • How Can I Help ?
• I Don’t Know This Business? • What are the Next Steps ?
• Why Should I Even Care ? • Where Do I Send the Check ?
Texas State SBDC 2011
18. When it all Seems Overwhelming,
Remember .. Persistence Pays
Texas State SBDC 2011
19. Next Steps
• Get Help & Solicit Genuine Feedback
• Do Your Homework. Know Your Business
• Analyze Feasibility & Prove Concept
• Write, Re-Write, Write, Re-Write !!!
Texas State SBDC 2011
Editor's Notes
Do You Need A Business Plan? It Depends … Do you have a clear vision, a roadmap to get there, and the strategy/tactics you need to succeed? Do you already have years of experience, a robust network, and a good reputation in your industry? Can you clearly define your customer profile, market niche, marketing approach, and sales strategy? Do you have the capital, credit score, partners and resources needed to launch and grow your business?
Dispelling Myths and Misconceptions It’s all about you, and it’s not about you. (Entrepreneur – Product/Service -- Customer) Just because you believe, or see the vision, or commit -- doesn’t mean anyone else will. Raising equity capital or debt financing is only a means to the end, not the end in itself. Forget about it “I must maintain control” “It’s flawless, it cannot fail” “ I offer better customer service” “the patent will protect me”
Dispelling Myths and Misconceptions It’s all about you, and it’s not about you. (Entrepreneur – Product/Service -- Customer) Just because you believe, or see the vision, or commit -- doesn’t mean anyone else will. Raising equity capital or debt financing is only a means to the end, not the end in itself. Forget about it “I must maintain control” “It’s flawless, it cannot fail” “ I offer better customer service” “the patent will protect me”
Do You Need A Business Plan? It Depends … Do you have a clear vision, a roadmap to get there, and the strategy/tactics you need to succeed? Do you already have years of experience, a robust network, and a good reputation in your industry? Can you clearly define your customer profile, market niche, marketing approach, and sales strategy? Do you have the capital, credit score, partners and resources needed to launch and grow your business?
Dispelling Myths and Misconceptions It’s all about you, and it’s not about you. (Entrepreneur – Product/Service -- Customer) Just because you believe, or see the vision, or commit -- doesn’t mean anyone else will. Raising equity capital or debt financing is only a means to the end, not the end in itself. Forget about it “I must maintain control” “It’s flawless, it cannot fail” “ I offer better customer service” “the patent will protect me”
What Characterizes a Good Business Plan? It is very targeted, direct, and purposeful. (Specify the audience and outcomes) It is supported by verifiable research and insightful analysis. (Present you data well) It recognizes risks, threats, and the competitive environment. (Be realistic) It embodies opportunities and alternative paths. (Demonstrate foresight) It reflects the entrepreneur and their business idea. (Prove uniqueness) It is concise, complete and professional (Respect your readers time)
Things Not to Do Include typos, errors, or omissions. Present internal inconsistencies or contradictions. Discuss things the audience won’t understand. Say anything untrue, unbelievable, or irrelevant. Guess at numbers or use random assumptions. Things to Do Progress logically & Use lots of visuals. Connect to things your audience understands. Cite independent sources for validation. Make sure the opportunity is believable. Edit, Edit, Edit – Get a Devil’s Advocate.
Do You Need A Business Plan? It Depends … Do you have a clear vision, a roadmap to get there, and the strategy/tactics you need to succeed? Do you already have years of experience, a robust network, and a good reputation in your industry? Can you clearly define your customer profile, market niche, marketing approach, and sales strategy? Do you have the capital, credit score, partners and resources needed to launch and grow your business?
