Transcript Business Plan Review

Ads
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Visualize the customers before placing an ad
Ads
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The small-business ad (brand recognition?)
Marketing online
 Redefined
now through services such as Google
Adsense
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Cause-related marketing
5 Parts of a Print Ad
1.
2.
3.
4.
5.
Headline – a few direct words of text addressing
a concern, problem, or interest your consumers
have
Copy/Sub-headline/Deck – gives more insight into
the product and benefits
Logo/Trademark (slogan) – generates brand
recognition across all ads
Image/Illustration – grabs consumer interest
Call-to-action – identifies steps to purchase your
item or sign up for your service (contact info)
Overview of the Training Program
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Day 3 – Marketing and the Business Plan
 Working
with Mentors
 Understanding Effective Marketing
 Advertising and Publicity
 Successful Selling
 International Opportunities
 The Exit Strategy
 Business Plan Review
 Engaging Entrepreneurs in the Classroom
 Assessment
PRINCIPLES OF SUCCESSFUL
SELLING
Business is Based on Selling
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Selling is the art of
bringing your product
or service to the
customer
A successful sale
matches the product or
service to a customer
need
Entrepreneurs are Salespeople
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Many entrepreneurs started out in sales
 Ray
Kroc – Restaurant equipment to McDonalds
 King C. Gillette – Cork/Seals to Razors
 W. Clement Stone – Newspapers to Insurance
 William C. (Billy) Durant – Cigars to General Motors
Learning to Sell
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Salespeople learn about customers
 They
hear what the consumer needs and wants
 Improve based on feedback
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Sell the benefits, not the features
 Don’t
sell the drill; sell the hole that needs to be drilled
 Don’t sell the steak;
sell the sizzle (the experience)
 Some of the features
are the benefits
Ways to Sell
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Appointment
Trade fairs, flea markets
Direct mail
Door to door
Classmates at school
Community, school, or
religious functions
Cold calling
Phone
Listings in a catalog
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Home
Own a store
Website
Other stores
Outside salespersons on
commission
Own sales team
Newspaper, radio, or
television advertising
Focus on One or Two Products
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Find a product or service and focus on it until it
becomes successful
Concentrate resources
Avoid confusion
The Sales Call
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Appointment to show product or service
Make customer aware of product
Ask questions to uncover needs
Demonstrate features and benefits
Referrals
Relationship building/networking
Preparing for Sales Calls
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Before your first sales call
 Get
marketing materials together
 Prepare them to better organize your thoughts
 Use your materials to teach employees or other
salespersons
 Enlist help to accompany you during calls
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Pre-qualify your sales call
 Saves
time and effort
The 8-Step Sales Call
1.
2.
3.
4.
5.
6.
7.
8.
Preparation – be neat clean and dress appropriately
Greeting – treat customer graciously – build relationships of
trust
Show the product or service – Personalize it if possible
Listen to the customer – establishes a relationship
Answer objections – don’t hesitate to tell the truth regarding
limitations
Ask for a commitment – don’t try to force a sale but try and
get a commitment
Follow up – see if customer likes the service or product
Ask for references – they are potential customers
Improving Your Efforts
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Analyze your sales calls to become a star
salesperson
Use technology to sell
 Record
calls or pitches
 Provide information on websites
 Email and fax to stay in touch
 Keep a customer database
Sales
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The sales receipt
 Give
customers a receipt
 Include all appropriate information – QuickBooks
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The sales commission
 Percentage
 Retail
of the sale
1% (specialty) – 10% (shoes)
 Cars 1%
 Real Estate 6%
 Others?
Overview of the Training Program

Day 3 – Marketing and the Business Plan
 Working
with Mentors
 Understanding Effective Marketing
 Advertising and Publicity
 Successful Selling
 International Opportunities
 The Exit Strategy
 Business Plan Review
 Engaging Entrepreneurs in the Classroom
 Assessment
INTERNATIONAL OPPORTUNITIES
Cultivate Tolerance of Others
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Open-minded and curious about other countries,
cultures, and ways of life
Importing
Exporting
Freer Trade and Easier Communication
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Governments sometimes impose trade barriers such
as taxes on selected products that make foreign
goods expensive for their citizens to buy
Taxes placed are also called tariffs
May also use quotas to control trade
Research
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Research the competition – worldwide
Using foreign exchange
 Weakness
of the dollar
 When
are exports more likely?
 Imports?
 Understand
buy or sell
the exchange rate to know when is best to
Overview of the Training Program

Day 3 – Marketing and the Business Plan
 Working
with Mentors
 Understanding Effective Marketing
 Advertising and Publicity
 Successful Selling
 International Opportunities
 The Exit Strategy
 Business Plan Review
 Engaging Entrepreneurs in the Classroom
 Assessment
EXIT STRATEGIES: CREATING
WEALTH
Harvesting – Exit Strategy Options
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Sell it
Take it public
Join your business with
another company – merge
Liquidation
 The
business is dissolved and the assets sold
Valuation
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Net present value of money
 The
value to you today of something that you hope to
get in the future
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How to value a business
 Compare
it to a similar business (if possible)
 Examine benchmarks for the industry
 Look at multiple net earnings (P/E ratios)
 Book value method estimates a company’s worth by
calculating its assets minus liabilities
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The art of valuation
Exit Strategies
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Choose your exit strategy
Ways to sell your business
 Harvest
over time through free-cash flows
 Management buy-out
 Employee stock ownership plan (ESOP)
 Merger or acquisition
 Initial public offering
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Investors care about your exit strategy too
What would you do with wealth?
Overview of the Training Program

Day 3 – Marketing and the Business Plan
 Working
with Mentors
 Understanding Effective Marketing
 Advertising and Publicity
 Successful Selling
 International Opportunities
 The Exit Strategy
 Business Plan Review
 Engaging Entrepreneurs in the Classroom
 Assessment
BUSINESS PLAN REVIEW
Building Presentation Skills and Future Business
Viability
Purpose
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In order for participants to feel comfortable with
presenting their business plans, early on in the
instruction, participants are encouraged (or
required) to present their ideas for business.
Process
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Over the course of the instruction, participants will
present their plan multiple times.
Each time they present, constructive feedback will
be given.
The purpose of the feedback is to assist them in the
development of their plans and to gradually
prepare them to present their plans for funding
consideration.
Step 1: The 30-Second Commercial
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After writing up an initial business plan, participants
are encouraged (or required) to present a 30-second
elevator pitch on their business idea.
Time each participant’s presentation. Participants are
stopped exactly at 30 seconds.
Step 1: The 30-Second Commercial
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Participants are encouraged to focus on the 4 P’s of
business.
Product
 Price
 Place
 Promotion
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Participants are encouraged to focus on the benefits
rather than the features of the product/service.
Step 1: The 30-Second Commercial
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Constructive feedback is given to participants on the
basis of their presentations.
It may prove beneficial to video the presentations for
later feedback. This should be done on the basis of
access to the technology and participant needs.
Step 2 – The 3-Minute Business Plan
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The participants give a 3-minute business plan
presentation consisting of the basics of their
business.
Time each participant’s presentation. Participants
are stopped exactly at 3 minutes.
The rubric for assessing the early presentation is
also used in this format.
Step 2 – The 3-Minute Business Plan
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Participants are encouraged to focus on the 4 P’s of
business.
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Product
Price
Place
Promotion
Participants are encouraged to focus on the benefits
rather than the features of the product/service.
Carefully review each business plan to insure that the
high points of each category are addressed.
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The business plan’s competitive advantage and marketing plan
should be addressed in this presentation.
Step 2 – The 3-Minute Business Plan
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Constructive feedback is given to participants on the
basis of their presentations.
It may prove beneficial to video the presentations for
later feedback. This should be done on the basis of
access to the technology and participant needs.
Step 3 – The 7-Minute Business Plan
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The participants give a 7-minute business plan
presentation offering greater detail.
Time each participant’s presentation. Participants
are stopped exactly at 7 minutes.
The rubric for assessing the early presentation is
also used in this format.
Step 3 – The 7-Minute Business Plan
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Participants are encouraged to focus on the 4 P’s of business.
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Product
Price
Place
Promotion
Carefully review each business plan to insure that the
majority of information contained in the business plan is
addressed to some extent.
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The business plan’s core information should include:
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Competitive advantage
Marketing plan
Financial projections and return on investment
Management of the company
Step 3 – The 7-Minute Business Plan
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Constructive feedback is given to participants on
the basis of their presentations.
It may prove beneficial to video the presentations
for later feedback. This should be done on the
basis of access to the technology and participant
needs.
Seeking Feedback
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Utilization of experts/mentors in Business Plan
Review
The Small Business Development Center’s role
Key experts’ feedback verses general feedback
Funders as reviewers
Others?
Overview of the Training Program

Day 3 – Marketing and the Business Plan
 Working
with Mentors
 Understanding Effective Marketing
 Advertising and Publicity
 Successful Selling
 International Opportunities
 The Exit Strategy
 Business Plan Review
 Engaging Entrepreneurs in the Classroom
 Assessment
ENGAGING ENTREPRENEURS
IN THE CLASSROOM
Master Teacher of Entrepreneurship
Engaging Entrepreneurs
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Key experts
Mentors
Panel discussions
Providing real-life experience to issues discussed
Field trips
Others?
Summary/Review
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Day 3 – Marketing and the Business Plan
 Working
with Mentors
 Understanding Effective Marketing
 Advertising and Publicity
 Successful Selling
 International Opportunities
 The Exit Strategy
 Business Plan Review
 Engaging Entrepreneurs in the Classroom
 Assessment
Resources
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Entrepreneurship – How to Start and Operate a Small
Business, 10th Edition (2007)
Steve Mariotti / National Foundation for Teaching Entrepreneurship
Questions?
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Now is the time….
ASSESSMENT
Master Teacher of Entrepreneurship