Business Planning & Library Resources€¦ · 5/14/2009 · Resources on Business Planning •...
Transcript of Business Planning & Library Resources€¦ · 5/14/2009 · Resources on Business Planning •...
Bridgeport Chapter 0471 & Trumbull Library
Business Planning & Library Resources
SCORE Workshop May 14, 2009
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Introduction to SCORE • SCORE is a nonprofit, volunteer organization, a resource
of the U.S. Small Business Administration (SBA)
• Mission: To promote economic growth in America (Act of Congress in 1964)
• Purpose: Using experienced senior counselors, SCORE helps new and existing small businesses solve operating problems, become better managed and profitable
• SCORE 471 Counseling services are FREE
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Why create a business plan?
“It is far cheaper not to begin an ill-fated business than to find out by experience what a Business Plan would have told you at the cost of several days of concentrated effort!”
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Business Plan: A Reality Check
• The hard facts of business startups: – 650,000+ startups per year (2006 data) – 500,000+ failures in (2006 data) – 80% expected to fail within five years
• Why? – Lack of management expertise – Failure to understand business / market – Lack of sufficient capital – Failure to Develop a Viable Business Plan
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Workshop Objectives
• Simplifying the Business Plan • Goal is to provide insights into:
– Business Planning Process – Resources to Assist in Planning – Business Startup Issues – Risks/Pitfalls of Starting a Business
• Will allow opportunities for questions
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Resources on Business Planning
• React to Business Planning ideas and goals
• Show resource organizations • Illustrate basic publications and media • Industry-specific answers –
Retail Liquor Store & Local Restaurant
• What we can and can’t do.
Overview
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What is a business plan?
• Outlines what you plan to do, why you are doing it and how progress will be measured
• A roadmap to success -- setting a course for your business over time
• Can and should be changed as conditions move
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What is a business plan?
• Living document about your business • Valuable tool for evaluating variables
affecting your business • Excellent planning guides are readily
available
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General Rules for Preparation
• Needs extensive research to complete
• Should be concise – to the point
• Must be your plan, although you can / should get expert help along the way
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Resources on Business Planning
• Trade Associations • SBA, SCORE and business experts • Neighbors: City, County, State, Nation • Encyclopedia of Associations, Standard Directory of
Periodicals • Books, magazines, newspapers • Databases • Industry surveys & Industry Average reports
Industry-specific example: Standard & Poor’s Industry Survey, report on Retail Industry.
Answers & Issues within Key Organizations & Media
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Why create a business plan?
• Provides planning discipline • Helps determine idea’s feasibility • Clearly communicates your ideas • Necessary selling tool for raising capital • Serves as tracking tool to measure
performance
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Qualitative Analysis of Bus Plan
• The “concept” / purpose / mission • What is the “business?” • The Market / The Consumer - Prove It! • What is the “hook?” Why is it a better
“mousetrap”? • The Marketing Plan • The Production Plan • Other Issues - Personnel, Locations,
Regulatory or Legal Issues
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Quantitative Analysis
• Numbers => and Lots of Them – Cash Flow = Money In and Money Out – Income Statements – Balance Sheets – Sources and Uses of Funds
• Sensitivity / Risk Analyses – What Happens If…?
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Business Plan: A Reality Check Is your business concept reasonable? • Is there demand for your product or
service? – Clear customer need? – Competitive edge?
• Are risks commensurate with rewards? – Gather enough facts/opinions to justify continuing
process. – Make preliminary judgments – Confirm via business plan elements!
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Is your business concept reasonable? Business Plan: A Reality Check
• Put your ideas into words! – State your business concept (what is it you do for
customers?) – How does the customer benefit? – Who is your target market?
• How can prospects be identified? – How do you want customers to perceive your
business?
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Business Plan Elements: Executive Summary
• Description of business • Mission and desired outcomes • Identification of critical startup issues • Concise one page summary • Must sell your idea
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• Customers • Competition • Channels • Costs
Business Plan Elements: Marketing Plan
The 4 ‘s and 3 ‘s of marketing
• Product • Promotion • Price
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• Competition – Companies • Who else is doing what you do. • Cost of doing business • Demographics – age groups, target
market, customers • Channels concept
Resources on Marketing Planning
Business Plan Elements: Marketing Plan
Local information example: Fairfield County Business Journal, useful for both industries.
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Industry-specific resource - Retail Liquor Store: • Competition – Companies • Cost of doing business • Demographics – age groups, target market,
customers • Channel concept
Business Plan Elements: Marketing Plan
Resources on Marketing Planning
Reference USA database directory – tailored, local lists of potential competitors available through many local libraries.
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Industry-specific resource - Local Restaurant: • Competition – Companies • Cost of doing business • Demographics – age groups, target market,
customers • Channels concept
Business Plan Elements: Marketing Plan
Resources on Marketing Planning
www.StatUSA.gov & www.census.gov, government sources of local regional population profiles.
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• How will your products be manufactured? • Where/how will products be shipped and
inventoried? • Where will you locate your business? • Why did you choose that location? • What are your space and equipment needs? • What are your costs for startup and
continuing operation?
Business Plan Elements: Operational Plan
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Overviews of Industry: • How’s it doing, trends, your research? • Local, state and federal regulations • Other industries in the chain
Business Plan Elements: Operational Plan
Resources on Operational Planning
Special issues of magazine: Sales and Marketing Management, 2008 Buyers Guide.
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Industry-specific resources – Retail Liquor Store: • How’s it doing, trends, your research task. • Local, state and federal regulations. CT Liquor
Control Division, etc. • Other industries in the chain: Wineries,
Distillers, etc
Business Plan Elements: Operational Plan
Resources on Operational Planning
Industry-specific answer - Retailer trade groups: American Beverage Licensees, www.ablusa.org; & Beverage Media Group www.bevnetwork.com.
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Industry-specific resources – Local Restaurant: • How’s it doing, trends, your research task. • Local, state and federal regulations. Local
Health Board, Planning & Zoning, Fire Marshall, etc.
• Other industries in the chain: Foodservice distributors.
Business Plan Elements: Operational Plan
Resources on Operational Planning
Industry-specific answer - Trade association: National Restaurant Association, www.restaurant.org.
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• Who will manage your business? • How much staffing is needed – full time
or part time? • Are job descriptions available to aid in
hiring and training process? • What is your employee compensation/
benefit plan?
Business Plan Elements: Human Resources Plan
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• Issues – management organization • Professional & trade associations – Join! • Occupational Handbook • Training or Benefits Associations & Magazines
Resources on HR Planning
Business Plan Elements: Human Resources Plan
Industry-specific resource for Retail Liquor or Local Restaurant: Database search in Business & Company Resource Center (at most Libraries) to find current full-text magazine articles: HR issues and liquor business or HR issues and restaurant business.
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• What business form do you plan to use? • What administrative steps must you take
to establish your organization? • What kinds of insurance do you need? • What licenses do you need? • What professional help will you need?
Business Plan Elements: Organization & Support Plan
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• Financing - Leasing - Banking • Business Insurance • Licensing • Incorporation
Business Plan Elements: Organization & Support Plan
Resources on Money Planning
Two specific examples for Retail Liquor Store or Local Restaurant: CT Licensing: CT-clic.com for help deciding: trade, personal, or facility. Restaurants require Food Service Certificate from local health dept. CT Judicial Branch Law Libraries (open to public in 16 locations: www.jud.ct.gov/LawLib/).
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• Schedule activities realistically • Identify and quantify critical milestones • Outline process for:
– Measuring results – Taking corrective actions whenever necessary
Business Plan Elements: Timetables / Action Steps / Milestones
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• Most important financial planning tool • Movement of money into and out of
business over specified time period • Projects amount of cash needed to start
up and run business • Not same as Income Statement
Business Plan Elements: Financial Plan
Cash Flow
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• Principally a cash management tool • Level of sales that must be reached to
produce enough gross margin cash to cover other cash expenses
• Some periods may not “breakeven,” but your objective is reaching volume and expense level that will consistently provide positive cash flow
Business Plan Elements: Financial Plan
Breakeven Analysis
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• What are key financial risks? • What are key operational risks? • Identify contingency plans that can
hedge risk areas?
Risk Analysis
Business Plan Elements: Financial Plan
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• Engage professional accountant • Set up useable record keeping system
– Books of original entry – General ledger
• Stay involved in “the numbers” – Record actuals vs. plan monthly – Analyze to understand variables
• Keep financial transactions above board
Business Plan Elements: Financial Plan
Management Controls
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Business Plan Elements: Supporting Documents
• Resumes of key personnel • Personal references • Personal credit information • Leases, franchising documents, etc. • Licenses • Loan agreements
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Summary on Resources
• Common Elements • Plan of Attack • Some specific resources • Useful organizations & advisors • Business & Career Center, Trumbull
Library • Handouts & questions after
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• Understand each element: Make it your plan
• Keep realistically conservative • Keep short, but include all important
details • Get help whenever needed • Practice how to sell plan to investors • Manage to your plan • Adjust your plan as necessary
Business Plan Elements: Planning Process Summary
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Questions?
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Bridgeport Chapter 471 & Trumbull Library
Thanks for attending!