Create Your Business Plan Seminar - Session 1

Create Your Business Plan Session A SCORE Seminar Sponsored by Southwest Florida SCORE Chapter 219 In cooperation with Edison College Instructors Hartley Morey Thirty years of Marketing and Merchandizing experience with high end fashion retailer (Macy’s), subsequently owning and operating up to four retail fashion stores on Sanibel and Captiva Islands for another 17 years Ray Randlett A part owner of a Florida firm that provided cable television installers for cable, satellite and microwave firms in the southeastern United States Prior to moving to Florida, he spent many years working in public affairs and government relations for large industrial companies He also worked for the U.S Department of Labor and U.S Agency For International Development Denny Weimer Retired business executive with 33 years experience in Engineering, Marketing, International Sales, Manufacturing and Senior Management Purpose and Expectation from Seminar Participants Attend class Openly participate in class/lab work Complete homework assignments Throughout the process, you will be identifying “COST” You should have a “first-pass” Business Plan at the end! Instructors Explain the purpose and content of a Business Plan Encourage questions Review and return previous assignments Caveats While we will be progressing through the Business Planning Process, when done, a Business Plan must be complete and consistent As you progress, you will develop info that modifies/conflicts previous work Keep a current “master” and mark up as you proceed Some will probably find this process too difficult Agenda for the Seminar Session Session Focused coverage of The Market The Business The Marketing Plan Session Broad overview of a Business Plan Session Focused coverage of The Operational Plan The Management Plan Supporting Partners In depth coverage of The Financials The Executive Summary Summarize purpose of Business Plan Monitoring and long-term use Participants’ Business Plan presentations The Business Plan What is it? It is a roadmap “If you don’t know where you are going, how will you know when you have arrived? A Business Plan is a document consisting of a narrative (part 1) and several financial worksheets (part 2) which allows its author to research and think about the business in a systematic way and evaluate the feasibility of the business venture The Business Plan Why it? To provide you, the business owner, with a reasonable blueprint for operating a successful business With it you will understand the Market, the opportunity, the full cost picture and the feasibility of the business becoming profitable A potential investor/lender, whether banks or venture capitalists, will want a complete Business Plan to review and evaluate the risk/reward of their investment It may be a useful tool to share (partial or complete) with employees to enhance understanding and commitment The Business Plan There are a variety of for m ats, but content is what matters ! Some Sources: www.score.org (Business Tools) www.sba.gov (MP-4, MP-5, MP-9, MP-11, MP-15) BusinessPlanPro software (>200, $) Librar y /Business School Books Business Plan Format * Narratives Financials Executive Summary (done last) The Market The Business The Marketing Plan The Operational Plan The Management Plan The Business Support Plan (legal, insurance, accounting and banking) Balance Sheet/Net Worth Sources and Application of funds Capital Equipment List Year Income Projection Year Income Projection Year Income Projection Cash Flow Projection Break Even Analysis * Formats vary Our course will use this particular one to assure completeness and consistency Minute Break The Marketing Plan - Clients Depending on the Market (Retail, Service, Industrial), the questions/issues may diverge somewhat Create a demographic profile for each of the Markets segments (clients may have differing preferences) identifying client preferences (why they buy?) The Marketing Plan – Retail Clients Age Gender Location Income level Social class and occupation Education Buying Preferences (price, quality, delivery speed, delivery reliability, product design, flexibility, aftermarket service, image) The Marketing Plan – Service Clients Type of client, e.g., commercial property, residential, golf course Locations Buying Preferences (price, quality, delivery speed, delivery reliability, product design, flexibility, aftermarket service, image) The Marketing Plan – Industrial Clients Industry (or portion of an industry) Locations Size of firm Buying Preferences (price, quality, delivery speed, delivery reliability, product design, flexibility, aftermarket service, image) The Marketing Plan - Clients Some people will try to get fairly sophisticated in this type of analysis by putting market size ($ volume) by segment into some form of client preference weighting to identify “opportunity” The Marketing Plan - Competition What products and companies will compete with you? List your major competitors (Names and addresses) What is their market share by market segment? What is each one’s “Market Strategy”? Will they compete with you across the board, or just for certain products, certain customers, or in certain locations? Will you have important indirect competitors? (For example, video rental stores compete with theaters, although they are different types of businesses.) How will your products or services compare with the competition? What can you learn from them? The Marketing Plan - Competition A picture can be worth a thousand words! The Marketing Plan - Strategy Armed with this information, you should establish/reconfirm your Market Strategy Given the selected target market(s) and the strategy (price/cost, quality, delivery speed, delivery reliability, product design, flexibility, aftermarket service, image), you should be able to project your market share (penetration) over time This will generate your Sales Forecast The Marketing Plan – A&SP Advertising & Sales Promotion can be expensive Choose wisely Look for inexpensive/piggyback ways to get to your clients Define where you will spend, how much and when The Marketing Plan – A&SP Methods “C” Newspaper Television Radio The Internet Samples Seminars Sponsoring events Trade shows Company name on cars Circulars and brochures Canvassing Personal letters Telephone marketing Signs on bulletin boards Tee Shirts Outdoor signs Yellow Pages Loyalty Programs Reprinted Courtesy of The Shnider Group Special Discussion- The Internet From a simple informational website presence to a full scope order thru delivery thru satisfaction survey form (“e-Business”) Online advertising – trackable Search engine hierarchy Yellow pages.com Company blog The Marketing Plan – Final Points Clothes you and employees wear “C” Telephone etiquette Business cards “C” Stationery “C” Hours you are available Website “C” Personal hygiene The Marketing Plan is all about how you and your employees will approach the Market! Homework Assignment – Session Prepare Business Plan Narratives The Market The Business The Marketing Plan As a minimum, you must have a three year Sales Forecast by month! Turn in a copy at the next session Supplemental Material Lee County Demographic Profile Sources and Application of Funds Worksheet Capital Equipment Worksheet Competition Analysis Worksheet Sales Forecast Worksheet Session Lab – Time Permitting Break into groups of three Network with each other about sources to investigate for input to these sections of the Business Plan Seek clarification from instructors ... The Business Plan There are a variety of for m ats, but content is what matters ! Some Sources: www.score.org (Business Tools) www.sba.gov (MP-4, MP-5, MP-9, MP -1 1 , MP -1 5 ) BusinessPlanPro software... Agenda for the Seminar Session Session Focused coverage of The Market The Business The Marketing Plan Session Broad overview of a Business Plan Session Focused coverage of The Operational Plan The... y /Business School Books Business Plan Format * Narratives Financials Executive Summary (done last) The Market The Business The Marketing Plan The Operational Plan The Management Plan The Business