Transcript BUSINESS 101 CLASS 1

AGENDA
3
IMPLEMENTATION
2
FIRST THINGS FIRST - STARTUP
1
BUSINESS PLANS - PLANNING
Step #1 - BUSINESS PLAN
• A Business plan is a document giving details
of company’s future plans.
– Is used to obtain financing
– Is used to recruit team members
– Is used as a ‘roadmap’ a planning tool
– Is the company’s reference document for creating
marketing and operations strategies and
processes
– Contains 12 components
MISSION STATEMENT:
Clearly state your company’s long-term mission. Try to use words that will help direct the
growth of your company, but be as concise as possible.
1
THE TEAM:
List CEO and Key Personnel by name and number of years experience in this field.
Include previous accomplishments to show the past record of success.
2
Market Summary:
Summarize your market in the past, present, and future. Review those changes in market
share, leadership, players, market shifts, costs, pricing, or competition that provide the
opportunity for your company’s success.
3
Opportunities:
Identify problems and opportunities. State consumer problems, and define the nature of
product/service opportunities that are created by those problems.
4
Business Concept:
Summarize the key technology, concept, or strategy on which your business is based.
5
Competition:
Summarize the competition. Outline your company’s competitive advantage
Goals and Objectives:
6
List five-year goals. State specific, measurable objectives for achieving your five-year goals. List
market-share objectives. List revenue/profitability objectives.
7
Market Summary:
Summarize your market in the past, present, and future. Review those changes in market
share, leadership, players, market shifts, costs, pricing, or competition that provide the
opportunity for your company’s success.
8
Financial Plan:
Outline a high-level financial plan that defines your financial model and pricing assumptions.
This plan should include expected annual sales and profits for the next three years. Use several
slides to cover this material appropriately.
9
Resource Requirements: Personnel, Technology, Finances, Distribution, Promotion,
Products, Services
10
Risks and Rewards:
Summarize the risks of the proposed project and how they will be addressed. Estimate
expected rewards, particularly if you are seeking funding.
Key Issues:
Near term
Identify key decisions and issues that need immediate or near-term resolution.
State consequences of decision postponement.
Long term
Identify issues needing long-term resolution.
State consequences of decision postponement.
11
12
If you are seeking funding, be specific about any issues that require financial resources for
resolution
.
10
FIRST THINGS FIRST – OVERVIEW OF TO DO
1
Capital for startup:
Cash, Equipment,
Building, & Supplies
2
Marketing Plan
1) Branding
a) Logo
2) Advertising
4) Customer Base
3
1)
2)
Learn your Federal Tax
Obligations
Obtain Federal Tax Id #
4
1) Business License
2) Checking Account
3) Insurance
a) Liability
Marketing
b)
Workman’s Comp
c) Auto
5
Company Processes
1) Employee Handbook
2) Processes i.e.
Accounting;
workflows; etc . . .
6
Hire Employees
Provide Training
#1 Startup Capital
• Startup Capital: Startup capital is the money needed to
begin your business. This would include everything essential for
product development and the product launch.
– Before going after startup capital make sure you know how much
money you need, and then how you will apply those funds. Being as
specific as possible with the plans for the money will increase the
likelihood that your business will get financed if you are seeking
financing.
• Assess What You Have:
• Cash, Equipment, Building, Supplies
– Compare the resources that you own with the resources required in
your business plan
– Get quotes for each of the items not already owned. A general rule to
get the best pricing is to get quote from 3 vendors.
Exercise #1 - Startup Capital
If you want to calculate the amount of startup
capital needed for your business, you simply
have to focus on two areas. The first one is the
pre-operation expenses and second, the
monthly operational expenses.
Exercise #1 - Startup Capital
1) Make a list for every item that you think you
need to startup your business
2) Make up a list of expenses with estimated cost
that you think you will have monthly (estimate
a total monthly expense then multiple this
times 3)
Exercise #1 – How well did you do?
Pre-Operational Expenses
These are the typical considerations for your pre-operational
expenses.
• Rent plus deposit – one month’s rent
• Equipment. The cost of the machinery you need for the business
such as manufacturing equipment and vehicles.
• Appliances. Office equipment such as computers, fax machines,
printers and photocopiers.
• Furnishings. These are the tables, cabinets, chairs and other office
furniture.
• Leasehold Improvements. Remodeling costs for your desired
location such as carpentry and plumbing costs.
Exercise #1 – How well did you do?
Pre-Operational Expenses
• Licenses, Permits and Insurance. The fees you need to pay to
legalize or register your business. This includes the software
licenses for computer applications and insurance fees.
• Subscription fees. Application and installation costs of your
telephone line, internet connection and other utility bills.
• Supplies. Initial inventory of consumable items such as paper, pens,
cleaning supplies, etc.
• Product Inventory. The cost of buying or manufacturing your initial
stock.
• Employee Training. Expenses for the skills acquisition of your staff
such as seminars they have to attend or cost of employee manuals.
Exercise #1 – How well did you do?
Pre-Operational Expenses
• Advertising. Expenses you’ll incur in promoting the business such
as signages, media coverage and other marketing costs.
• Opening expenses. Costs during the official launching or ribbon
cutting ceremony, just in case you plan to hold one.
• Miscellaneous. Always have a little extra for unexpected expenses.
Exercise #1 – How well did you do?
• Monthly Operational Expenses
Always include these expenses in your startup capital:
• Lease payments
• Business loan payments
• Costs for replenishment of supplies and other inventory materials
• Advertising and marketing expenses
• Staff salary, including government fees such as taxes and social security
payments
• Utility bills
• Depreciation costs and expense budget for repair and maintenance
• Income taxes
• Royalty fees
• Other miscellaneous operating costs relevant to your business
Exercise #1 – How well did you do?
Monthly Operational Expenses
The typical formula is to calculate your pre-operational expenses
and add three months worth of your estimated monthly expenses
to get your required startup capital. Take note however that
depending on the nature of your business, the number of months
of operational costs you need to consider could be more than just
three. Other businesses may require six months to a year’s worth
of monthly expenses as part of their startup costs.
• Moreover, avoid starting a business without enough capital and
hoping you’ll get more funding as you go along or when the
business officially launch. During startup, it’s important to avoid
such unnecessary financial stress and focus more on building your
business concept and ensuring that it will comply to your vision.
#2 Marketing
• Marketing 101
• In order to successfully grow your business, you’ll need
to attract and then work to retain a large base of
satisfied customers. Marketing emphasizes the value of
the customer to the business, and has two guiding
principles:
• All company policies and activities should be directed
toward satisfying customer needs.
• Profitable sales volume is more important than
maximum sales volume.
http://www.sba.gov/content/marketing-101
Marketing Strategy – Most
Effective Strategy
Customer Market Approach Strategy
• A customer market approach strategy is a sound strategy
for any business. Marketers need to focus on customer
needs and design products and services, pricing and
communication to meet those needs.
Read more: Marketing Strategies - How To Information | eHow.com
http://www.ehow.com/marketing-strategies/#ixzz1z4yfaPgZ
Exercise #2 – Marketing Strategy
With your business in mind, consider some marketing
strategies.
1) How would you identify YOUR Customers?
2) How would you advertise?
3) How would you convince them to purchase YOUR
services or goods?
 How would you stand out from your competitors?
Marketing Strategy - Suggestions
• Network and attend other community events
– Always carry your business cards
• From a chamber of commerce business card
exchange, to a town fair—going out and directly
meeting new people is hands down the most
effective way to spread the word about a small
business. Some business cards, a nice smile,
and a confident hand shake are all you need to
make it in this venue.
Marketing Strategy - Suggestions
• Generate referrals from current clients
• Sometimes spreading the word starts right back
at your own door. If you have a big enough client
base, you can entice them to refer friends and
family. With a little effort, each one of your
clients could become your very own personal
sales rep.
• Give a free class or presentation
Marketing Strategy - Suggestions
• Schools, chambers of commerce, and many
other groups often run regular programs and
presentations that are put on by local
businesses and members of the community. You
can usually get involved just by sending in a
proposal; first look at some of the things they've
run in the past.
Marketing Strategy - Suggestions
• Write an article for a newspaper or magazine
• While it may cost thousands to get a half-page
ad in a newspaper, you can often times secure
an entire page by writing a good article. The
trick to getting published is to make sure the
article is of value to your customers, and not just
an advertisement for your business.
Marketing Strategy - Suggestions
• Host a networking event at your business
• There are dozens of groups that do monthly
business card exchanges, why not invite them to
your store or office? Hosting an event is a quick
way to introduce your company to 50 or more
people without paying a dime.
Marketing Strategy - Suggestions
• Put an ad in the yellow pages
• This might be the most expensive
suggestion in the bunch; but, as
some small business owners will
tell you, a well placed yellow
pages ad can literally put dinner
on the table. You might also put
one in the online yellow pages
too, just for good measure.
Marketing Strategy - Suggestions
• Start a blog and use the power of social media
• Place booklets or fliers in strategic locations
• A friend of mine just told me a story about how
he typed up several pages of home repair tips
and placed them around town in various hair
salons. Even with only a single logo and contact
number on the entire collection, he was
receiving calls within hours. Sometimes a little
helpful information can go a long way.
• Go to trade shows and table-top mixers
• I know that trade shows can be expensive, but if
Marketing Strategy - Suggestions
• Go to trade shows and table-top mixers
– trade shows can be expensive, but if you look
carefully you might be able to find a mixer at your
local chamber of commerce where you can secure a
booth for a few hundred dollars. Make sure you have
a plan for engaging and following-up with people at
the event. http://www.charlestonchamber.net/
Marketing Strategy - Suggestions
• Partner with another business
• Partnering with another business is
a great way to combine and
leverage the resources of two
companies. You can share contact
lists, split marketing costs, and give
referrals back and forth. You'll
want to make sure you partner
with a company that shares the
same target market as you.
CASE STUDY
http://www.lawnsite.com/forumdisplay.php?f=58
http://www.ocalalawns.com/lawn-clean-up.html
http://www.youtube.com/watch?v=fESagw1oQlw
CASE STUDY
http://www.yourteacher.com/
http://www.yourteacher.com/ged-test-prep.php
#2 Marketing
•
1)
•
•
•
Marketing
Branding
a) Logo
2) Advertising
4) Customer Base
#2 Marketing
Marketing 101
• Determine the needs of customers through market
research
• Analyze competitive advantages to develop a market
strategy
• Select specific markets to serve by target marketing
• Determine how to satisfy customer needs by identifying
a market mix
http://www.sba.gov/content/marketing-101
#2 Marketing
Marketing 101 – Market Research
Primary research is research in which you go directly to the
source to gather data or ask questions. Primary research
methods can include:
• Holding in-person focus groups with members of your target
market
• Interviewing members of your target market in person or by
phone
• Visiting your competitors' stores or locations
• Conducting surveys of your target market either online, in
writing, or through social media tools such as Facebook or
Twitter
Source: http://www.allbusiness.com/marketing/market-research/2587-1.html#ixzz1z4wt1TIh
#2 Marketing
Marketing 101 – Market Research
Secondary research is data that's been gathered and published by
other researchers or sources. You can get secondary research by:
• Reading articles in trade journals, industry publications, or
websites
• Doing Internet searches
• Visiting a reference library
• Contacting industry associations or trade organizations
Source: http://www.allbusiness.com/marketing/market-research/2587-1.html#ixzz1z4xXHbHH
#2 Marketing
Marketing 101 – Market Research
Secondary research is data that's been gathered and published by
other researchers or sources. You can get secondary research by:
• Reading articles in trade journals, industry publications, or
websites
• Doing Internet searches
• Visiting a reference library
• Contacting industry associations or trade organizations
Source: http://www.allbusiness.com/marketing/market-research/2587-1.html#ixzz1z4xXHbHH
Resources
• http://www.sba.gov/category/navigationstructure/starting-managingbusiness/starting-business/marketing-newbusiness