Business with a_purpose_overheadpowerpoint

BUSINESS WITH A PURPOSEBased on the book

Business with a Purpose by

Darrell Griffin, MBA, CPA

Getting Out of the Boat and Starting Your Business

2015

Business with a Purpose (c) Darrell Griffin and Easy Brain Labs, Inc.

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The Legal Stuff

Legal Notice

This book and seminar are sold and delivered with the understanding that the author, publisher church and presenters are not engaged in rendering legal, accounting or other professional services. Questions relevant to the specific tax, business, legal and/or

accounting needs of the reader should be addressed to practicing members of those professions.

The information and suggestions contained herein have been developed from sources deemed reliable, but cannot be guaranteed as to how they apply to your specific application. Moreover, due to the fact that tax laws are never static but ever changing, the assistance of

a competent professional skilled in taxation is recommended before implementation of any material contained herein.The author, publisher church and presenters specifically disclaims any liability, loss or risk, personal or otherwise, incurred as a

consequence, directly or indirectly, of the use and application of any of the techniques of the contents of this book.© 2007 - 2015 by

Darrell Griffin and Easy Brain Labs, Inc.All rights reserved. No part of this book may be reproduced in any form without the permission in writing from the author and

publisher, except in the case of brief quotations embodied in critics’ articles or reviews.

2015

Business with a Purpose (c) Darrell Griffin and Easy Brain

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Darrell Griffin, MBA, [email protected]

CPA, MBA

Consultant/ CEO – Easy Brain Labs, Inc., provides services from bookkeeping to strategic planning, specializing in small to medium size businesses.

35 years consulting to businesses

Author of “Business with a Purpose.”

Author of "Last Journey" (Editors of Barnes and Noble selected it as one of their 10 best non-fiction books for 2009)

Author of “God Think” (Summer 2015)

Serial Entrepreneur

Member of Shepherd of the Hills, Porter Ranch for 15 years

Married to Kim, CPA , 6 children ranging in age from 18 to 44

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The Basic Theme Of The Seminar

“You can’t walk on water, unless you get out of the boat.”

Matthew 14:24-29But the boat was now in the midst of the sea, tossed with waves: for the wind was contrary. And in the fourth watch of the night Jesus went unto them, walking on the sea. And when the disciples saw him walking on the sea, they were troubled, saying, It is a spirit; and they cried out for fear. But straightway Jesus spake unto them, saying, Be of good cheer; it is I; be not afraid. And Peter answered him and said, Lord, if it be thou, bid me come unto thee on the water. And he said, Come. And when Peter was come down out of the ship, he walked on the water, to go to Jesus. (KJV)

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The Major Principles Of Success Explored In This Seminar

Have the right partner in business – GOD.

Failing to plan is planning to fail.

Manage your God given resources (time, talent and treasure ) properly

Take a risk and get out of the boat, - remember you have God on your side.

There are things that big business will never do as well as small business.

Creativity is the major competitive tool of the small business.

Christians can think more creatively than non-Christians.

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Business With A PurposeChapters

1 - Introduction2 - Overview of Small Business in America3 - Some Basic Christian Principles for Business4 - Some Relevant Thoughts From Great Minds5 - Do You Really Want To Be An Entrepreneur?6 - Do I Buy A Business, Buy A Franchise Or Start My

Own?7 - The Business Plan And Operating Your Business8 - Forming Your Business9 - Financing Your Business10 - Keeping Track of Your Business11 - Creative Thinking In Business12 - Growing Your Business13 - Risk Management

(bracketed numbers in this handout refer to the pages in the 600 page “Business With A Purpose” manual

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A SuggestionSince you are attending this seminar you are obviously interested

in at least exploring the idea of starting your own business. At this point you have probably consulted your two main partners; God andyour family. Now is the time to lock in your key outside consultants:

Accountant/ financial advisor Attorney Risk manager (insurance broker)

These consultants can be a lot more effective in helping your plan yourbusiness as opposed to helping you clean up the mess of doing thingsWrong.

Overview Of Small Business In America

What Is Small Business? (7)

• The U.S. government defines small business as a business that employs fewer than 500 people.

• Small business is critical to the well-being of our country. According to the SBA small business represents 99.7% of all employers

• 60% to 80% of all new jobs are generated by small businesses

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Some Basic Christian Principles For Business

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The Lord Wants You To Be Successful (12)

Genesis 26:12-14 - Then Isaac sowed in that land, and received in the same year an hundredfold: and the LORD blessed him. And the man waxed great, and went forward, and grew until he became very great: For he had possession of flocks, and possession of herds, and great store of servants: and the Philistines envied him.

Isaiah 1:19 - If you are willing and obedient, you will eat the best from the land;

Genesis 13:2 - Abram had become very wealthy in livestock and in silver and gold.

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There Is Good Counsel In The Bible On All Areas Of Business

• Dealing With Others In Business• Good Name• Humility• Integrity in Business• Planning• Seek Wise Counsel• Responsibility• Taxes, Payment Thereof• Tithing• Following God’s Word• Cause and Effect• God’s Law of Multiplication

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There Is Good Counsel In The Bible On All Areas Of Business

Dealing With Others In BusinessEcclesiastes 7:1“A good name is better than a fine perfume.”

Integrity in BusinessProverbs 11:1“The Lord abhors dishonest scales, but accurate weights are his delight.”

PlanningProverbs 21:5“The plans of the diligent lead to profit as surely as haste leads to poverty.”

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There Is Good Counsel In The Bible On All Areas of Business

Some More Examples

Cause and EffectII Corinthians 9:6“Whoever sows sparingly will also reap sparingly. Whoever sows generously will also reap generously.”

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2015Business with a Purpose (c) Darrell

Griffin and Easy Brain Labs, Inc.15

There Is Good Counsel In The Bible On All Areas of BusinessSome More Examples

God’s Law of Multiplication

Some Relevant Thoughts From Great Minds

Dealing With Others In Business

•Only the guy who isn’t rowing has time to rock the boat – Jean-Paul Sartre

•Choose a job you love, and you will never have to work a day in your life – Confucius

•That which does not kill us makes us stronger – Friedrich Nietzche

•And remember, no matter where you go, there you are - Confucius

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Your Team (161)

• God

• Family

• Strategically selected business partners

• Employees

• Advisors

• Vendors

• Customers

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Do You Really Want To Be An Entrepreneur?

There Are A Number Of Reasons That A Person Has For Wanting To Start A New Business.

• Freedom from the 9 – 5 grind ..• Flexibility• The “thrill of the kill”• Creativity• Being your own boss• Improving your standard of living• Bored with your current job• Making money while you sleep• Unemployed and cannot find a job

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Checklist Of The Characteristics For A Successful Entrepreneur*(33)

1. Do you like to make your own decisions?2. Do you enjoy competition?3. Do you have will power and self-

discipline?4. Do you like people and get along well with

them?5. Do you have good health?6. Are you a good leader?7. Do you get things done on time?8. Can you live without taking money out of

the business for the first year?9. Do you adapt well to change?10. Are you confident?11. Are you aware that running your own

business may require 12-16 hours a day, 6-7 days a week?

12. Do you stick to a project until it is completed?

13. Do you have the physical stamina to handle the workload and schedule?

14. Do you have the emotional strength to withstand strain?

15. Are you prepared to lose your savings?16. Is your family prepared to lower their

standard of living until your business is firmly established?

17. Do you have work experience in the type of business you are considering?

18. Do you have business training?19. Can you set limits?20. Can you juggle multiple tasks/ obligations

well?

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Pros And Cons Of Starting A Business

PROS (35)

• You can make a lot of money• You will be the boss• You can’t be fired• You can put your ideas into practice• You get to see the entire picture, not just a small part of the

total process like may be the case on your current job• Personal satisfaction• Work in a field that you really enjoy• A sense of belonging, a sense of stability

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Pros And Cons Of Starting A Business

CONS (35)

• Financial risks• You will probably work longer hours that you do on your

regular job• There are the routine parts of running a company that are

not all that fun such as payroll, accounting, and income taxes

• Your income and cash flow may be inconsistent • You may find yourself firing a friend or even a relative• You will have to learn a number of new things such as

accounting, cash flow, marketing, and marketing

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Alternatives To Starting Your Own Business From Scratch

• Buy An Existing Business (37)

• Buy A Franchise (59)

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There Are Alternatives To Starting Your Own Business From Scratch

Buy An Existing Business (37)

• You get an established customer base• You get experienced employees• You a recognized market position• You have an operating system in place• You get established relationships with vendors• You get established relationships with bankers• You have immediate cash flow• You have reduced your risk associated with starting your

new business

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Evaluating Your Potential Acquisition Candidate (43)

• Discussions as to why the seller wants to sell his business• Review of assets and liabilities

Tangible and intangibleTrendedComparison to other companies

• Profit and loss reviewTrendedComparison to similar companies

• PEST analysis (external) Politics, Economics, Society, Technology

• SWOT analysis (Internal)Strengths, weaknesses, opportunities, threats

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Another Way To Look At Your Proposed Business

The RAMP method of analysis* (93)

Return on investment

Exit strategyProfitableTime to breakevenInvestment needed

Market

The needAnalyze Target MarketPricingAnalyze Market size

AdvantagesCost structureBarriers to entryIntellectual propertyDistribution channels

Potential

Risk vs. RewardThe teamTimingGoal fit

*Ryan Allis, Business and Opportunity Evaluation, www.zeromillion.com

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What Is A Business Plan? (97)

• The road map and guide to the management and growth for your business

• It is a living breathing document that is never completed

• It is always a “works in progress”

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Why Prepare A Business Plan? (98)

• A major point that we can all agree on is that “failing to plan is planning to fail”

• You will use it to get financing for your business

• You use it to know your business, to operate your business

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Preparing Your Business Plan• Determine who you are writing for (100)

• What will be your method of presenting your business plan (102)

• Overall pointersYour plan is about strategyYour plan is about competitionKISSIt will be constantly evolvingDon’t tell your investor what he will be gettingSell benefits, not featuresUse authoritative sources to support your planYou are responsible to God and people for what you put into the plan

• Write your plan

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A Typical Business Plan Will Include The Following Sections (114)

• The Cover• Executive Summary• Table of Contents• Summary Description of the Business• Mission Statement (Summary Description of the Business)• Business Model (in a few lines of narrative) (Summary Description of the

Business) • SWOT Analysis (Summary Description of the Business) • P.E.S.T. (Politics, Economics, Social, Technical)• Products and Services (Summary Description of the business)• Intellectual Property• Location, Location, Location• Legal Structure of your Business• Management• People• Financial and Operational Reporting• The Marketing Plan

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Legal Form Of Your BusinessYour options (155)

• Sole proprietor• Partnership• Limited partnership• Limited liability company• Subchapter S corporation• “C” corporation

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The Deal Structure (53)

There is more than one way to structure your deal. Each has major tax implications:

• Asset vs. Stock • Leveraged Buy-out• Stock Exchange or Merger• Installment Sale• Other

You absolutely need the advice of a good CPA and/or attorney

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Financing Your Business (239)

How Do Most Entrepreneurs Finance Their New Ventures?

• Personal Savings 81%• Bank Loans 18%• Credit Cards 15%• Family Loans 8%• SBA Loans 3%• Revolving Credit 3%• Venture Capital 2%

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Determining How Much Financing You Need

(241)

• Determine your salary requirements• Determine desired net profits• Determine your fixed operating costs• Determine your variable operating costs (those that will

vary with sales)• Determine your start up costs• Determine your Gross margins• Determine when you can expect to break even.• Determine sales you need to cover the above elements.

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Funding Your New Venture (244)

• EquityFunding in which someone will own part of your business

• DebtFunding that you will pay back with a cost (interest)

• InternalFunding that you put into your own business from your own assets

• Gifts Probably won’t happen

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Factors To Consider When Deciding Between Debt And Equity (246)

Debt EquityRisk higher lowerInvolvement from funding source lower higherCost lower higherComplexity lower higherAccessibility to entrepreneurs lower higherFunding periods shorter longerEase of exiting the transaction easier harderDilution of owners equity none can be substantialEffect on cash flow of business must be repaid noneRestriction on future fundraising higher lower

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Sources Of Funding (248)

Personal Savings and other Personal Assets• IRA’s• Retirement accounts• Time share interests• Vacation homes• Whole-life insurance plans• Stocks• Bonds• Patents, copyrights• Interest in other existing companies• Trust accounts• Equity in your home

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• Liquidation of physical assets (have a garage sale)

• Moonlighting• Live off of your spouse’s

income• Start your business part-time• Bootstrapping• Severance pay• Credit cards• Start your business online• Move back a few steps in the

supply chain

Debt Financing (255)

• Commercial banks• Finance companies• Credit unions• Savings institutions• Friends and family• Small Business Administration (SBA)• Collateral loans – use your own assets• Borrow against cash-value of life insurance• Equipment lease financing• Credit cards• Debt consolidation loans• Line of credit• Borrowing against your 401(k)

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Equity Financing (266)

• Angel investors• Small business investment companies (SBIC)• Take on a partner• Venture capitalist (VC)

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Existing Business Financing (268)

• Investment group• Strategic alliance• Bartering• Increasing sales to existing Customers• Vendor financing• Customer financing• Add new products or services• Private placement funding (Reg D)• Review product pricing Structure• Seek out competitive bids for your

products• Expanding hours of operation• Business incubators

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•Enterprise zones•Expanding into new markets•Mergers•Reorganize your company•Sell company assets•Small business investment Companies (SBIC)•Licensing a product•Sell a portion of your business•governmental funding•Factoring•Purchase order financing•Going public•Venture capital

Keeping Track Of Your Business

Basic Accounting Equation

Assets = liabilities + capital

Debits = credits

Double Entry Bookkeeping

Every transaction has two sides (Debit and Credit)

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Keeping Track Of Your Business Accounting flow of transactions

•Original transactions (297)

Summarize Journals for Posting to General Ledger

General ledger

Trial balance

Financial statements

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Cash ReceiptsCash DisbursementsSales (Cash, check, charge)Expenses (cash, check, charge)Accounts Payable/ Purchases JournalJournal Entries (Depreciation, contribution of assets to business, etc.)

Total of each journal above is posted to general ledger

Assets (Debit) – Liabilities (Credit) + Owners Equity (Credit)Chart of Accounts for all Assets, Liabilities, Owners Equity, Income, Expenses

A procedure making sure general ledger is balanced. This means that all Assets = liabilities + owners equity

Income Statement (Revenues - Expenses) (P&L)Balance sheet ( Assets, Liabilities, Owners Equity)Cash Flow Statement (Cash in less Cash out reconciled to Income Statement)Other Financial Statements and Operational Statements)

Keeping Track Of Your Business Sample Financial Statements

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Income Statement Balance Sheet Cash Flow StatementFor the Month of January As of January 31 For the Month of January

Income 3,500$ ASSETS Net Income 1,759$ Cash 9,879$

Cost of Sales 1,000$ Accounts Receivable 7,970$ Depreciation 5$ Inventory 1,210$

Gross Income 2,500$ Prepaid Expenses 550$ (Increase) decrease in Acct Rec (2,970)$

Expenses Total Current Assets 19,609$ (Increase) decrease in Inventory (210)$

Rent 500$ Offi ce Equipment 5,800$ (Increase) decrease in Prepaid Exp 50$ Utilities 15$ Accumulated Depreciation 145$ Payroll -$ Write off of Fixed Asset 200$ Supplies 130$ Total Fixed Assets 5,655$ Depreciation 5$ Write off of Accumulated Deprec (160)$ Postage 56$ Total Assets 25,264$ Insurance 50$ Decrease (Increase) in Accts Pay 910$ Bad Debts 20$ LIABILITIES and EQUITYMisc Expenses -$ Decrease (Increase) in Accrued Exp 15$

Accounts Payable 1,010$ Total Expense 776$ Sales Tax Payable 280$ Decrease (Increase) in S. T. Payable 280$

Accrued Expenses 15$ Net Income from Operations 1,724$ Increase (decrease) in Cash (121)$

Total Liabilities 1,305$ Other Income 35$ Beginning Cash Balance 10,000$

EquityTotal Net Income (loss) 1,759$ Ending Cash Balance 11,759$

Retained Earnings 1,759$ Capitial Stock 22,200$

Total Equity 23,959$

Total Liabilities and Equity 25,264$

Growing Your BusinessYou can Grow your business in many ways and keep focused on God. (392)

In-N-Out Burger, headquartered in California, sends out millions of little reminders of God’s grace every hear:

Revelation 3:20 (burger and cheeseburger wrappers): Behold, I stand at the door and knock; if any man hears my voice, and open the door, I will come in to him, and will sup with him, and he with me.”

John 3:16 (soda cups): For God so loved the world that he gave his only Son, that whoever believes in him should hot perish but have eternal life.

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http://www.facebook.com/photo.php?pid=431527&id=130416910313263

Growing Your BusinessWhat Is Marketing? (394)

Marketing is the function of an organization that does the following:• Identifies its current and potential customers• Creates products or services that meet the needs and wants of

it’s customers• Informs and persuades it’s customers to purchase it’s products

or services• Delivers the products to it’s customers• Reinforces it’s customers’ confidence in the purchase they have

made

As a Christian business person you should meet ethical and moral standards that are sometimes higher than legal standards.

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Growing Your Business

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The Marketing Mix Target Market (396)

Who is your customer?

Positioning (399)

How do you want to be perceived?

Price (399)

A complex art not a science

Product (430)

Evolution of your products

Place (465)

Getting your product in your customers hands

Promotion (489)

Advertising, PR, personal selling, direct response

Risk Management (555)

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So you have started your business, you have learnedHow to manage it and you have grown it. It would Ashamed if you lost it all with poor risk management.

What is risk management?

Most people think of risk management as the act of buying insurance. This is just one element of risk management.

Risk management is the process of analyzing exposure to risk and determining how to best handle such exposure risks.

Risk has two characteristics, uncertainty (probability) and actual loss.

Risk ManagementRisk Management Techniques (556)

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Avoiding risks

Example – Crafts store owner was making and selling plaster figurines. He would set them in his small parking lot to dry and some of them would always disappear. Solution was to let them dry in his back room.

Diversifying resources to reduce risks

Example - Infomercial media company lost one client that accounted for 50% of it’s annual billings. This almost put them out of business. They now go after smaller clients with no single client representing over 10% of their business.

Instituting internal controls

Accounting systems with frequent review of financial reportsWritten policy and procedures

Risk ManagementRisk Management Techniques

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Sharing risks

Distribute a portion of the risk through a contract with another party, such as insurance

Transferring risks

Giving the risk to someone else. Example would be where you outsource a particular function in your business to a specialized company.

Accepting risks

Allow minor risks to exist to avoid spending more on managing the risk than the potential harm.

Risk ManagementTypes of Risks (567)

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Financial

• High return rates because you got bad inventory from your supplier• You credit manager has extended credit to customer that is not paying• Trucking companies go on strike• Your main supplier loses his raw materials supplier• Your bookkeeper has been writing checks to himself for years without your

knowledge Physical

Buildings, land, equipment, inventory, and supplies

Losses can occur from theft, acts of nature, vendor shortages, accidents, government actions or just plain carelessness.

Risk ManagementTypes of Risks

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Human

Human capital is the most important asset of your business.Loss of key business knowledge, loss of skills, loss of key personnel and loss of commitment of people are the main areas where you have to manage risk in the area of human capital. Intangibles

Reputation Customer listsBusiness methods RecipesPatents FormulationsCopyrights Special supplier namesTrademarks, Plans, projectionsBrandsBusiness information

Creative Thinking In Business

What is Creative Thinking? (333)

Thinking outside of the “box”Christians can and should be more creative thinkers than non-Christians.

Faith is being sure of what we hope for and certain of what we do not see.” Hebrews 11:1

Doing what you have always done, you will get what you always got

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Creative Thinking Is The Small Business Secret Weapon

• Big business can throw more money, people , and equipment at problems than you can as a small business owner.

• Big businesses go to small businesses for creative ideas all the time. Mattel has over 600 design engineering professionals, yet they get over 60% of their new ideas from small invention companies.

• Easy Brain Labs, Inc., a very small toy design company developed a concept “Spy Car” Toy. They “packaged” their idea and sold it to Wild Planet, one of the 5 major toy companies in the U.S.

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Creative Thinking Is The Small Business Secret Weapon

Why does creativeness get stifled in large businesses? (335)

1. “Not made here” attitude in the executive management ranks.

2. A new product idea rather than a mere improvement to an existing product threatens small internal empires around existing products, product lines and services.

3. Many great products die in the approval chain

4. It can be more risky for large companies to have a “failed” new idea.

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Creative Thinking In BusinessHow To Think Creatively

Many people think they do not have the ability to think creatively (335)

Creative thinking is the secret weapon of small business

Creative thinking can be systemized

James Web, idea expert said:

“The production of ideas is just as definite a process as the production of Fords; that the production of ideas, too, runs on an assembly line; that throughout this production, the mind follows an operative technique which can be learned and controlled; and that its effective use in just as much a matter of practice in the technique as is the effective use of any tool.”

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Creative Thinking In BusinessA System (343)

(W) Write down your objective, opportunity, or problem

( R) Resources – gather relevant resources

(I ) Idea generation

(T) Tailor your list of ideas to meet your needs

(E) Energize your short list of ideas

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Creative Thinking In BusinessWrite It Down (343)

Commit your problem, opportunity, goal, objective, desire, needs to writing .

Write it down in as few sentences as possible. The more sentences you write, the more you restrict you potential solutions.

If you don’t know where you are going , how do you expect to get there.

If you can’t articulate your end goal (objective) there is little chance you will obtain your goal.

What, why, where, when.

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(W)(R)(I)(T)(E)

Creative Thinking In BusinessResource Gathering

P.E.S.T. analysisS.W.O.T. reviewTrade associationsBetter Business BureauGovernmental organizationsYour competition informationYour suppliers and distributorsDemographicsAnalysis of your potential customers needs and wants

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Creative Thinking In BusinessIdea Generation

Bill Backer author of “The Care and Feeding of Ideas” defines ideas as follows:

“A basic idea is an abstract answer to a perceived desire or need. An EXECUTABLE Idea is a rendering in words symbols, sounds, colors, shapes, forms, or any combination thereof, of an abstract answer to a perceived desire or need.” (357)

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Creative Thinking In BusinessIdea Generation (358)

How do you generate good ideas?

Linus Pauling (Nobel Prize Winner) once said”

“The best way to get a good idea is to get lot of ideas.” (358)

It is important to believe your question has an answer

Sometimes creative thinking will generate unrelated ideas that can lead to future benefits – write them down and save them

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Creative Thinking In BusinessIdea Generation

Idea Generation Tools

BrainstormingIdea SparksRandom InputMind MappingRandom PictureAssociationOppositeScenery ChangePicasso MethodDoodlesMini-vacation TechnigueShotgun Wedding TechniqueLotus Blossom Technique

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Creative Thinking In BusinessIdea Generation Tools (358)

Brainstorming

1. One of the most widely used idea generation techniques.2. Convey your objectives developed from the “W” process in writing to your group3. The wilder the ideas the better4. Do not criticize, critique or eliminate any ideas at this point5. Start recording the ideas on a white board6. Let the ideas all feed off of one another7. Use the technique discussed under Mind mapping to categorize and relate your ideas

Idea Sparks

8. Take your Bible in hand and open it randomly to any page. 9. Select a word or two from where your finger lands on a random passage or word.10. Relate the word to the issue you are trying to resolve even if the scores of relationships are distant from your

subject.

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Creative Thinking In BusinessIdea Generation Tools

Mind Mapping

1. Start out by writing your central idea in a circle in the center of a white board.2. The first idea will be a circle with a line connecting to the central idea circle.3. The next idea may be an enhancement to the new idea or an idea that can stand on its own. If it is an

enhancement put it into a circle with a line to the last idea generated and if it is a stand alone idea put it in a circle connected directly to your central idea.

4. Select a word or two from where your finger lands on a random passage or word.

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SpyToy

StorageSecret Journal

Non-Electronic

Boys Girls

PeriscopeElectronic

Clothing

(W)(R)(I)(T)(E)

Creative Thinking In BusinessIdea Generation Tools

Doodles (370)

Everyone doodles. There are a lot of really good ideas locked in a persons doodles. Doodle, save your doodles, use your doodles.

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These doodles sparked the concept of the Spy Car developed by Easy Brain Labs, Inc. for Wild Planet’s Spy Car.

(W)(R)(I)(T)(E)

Creative Thinking In BusinessTailor Your Ideas

All ideas Must Be R.A.T. and be executable to move forward past this point• Relevant, Accurate and Timely• Never discard your idea collection. Circumstances make seemingly good ideas

executable in the future

Idea Tailoring Tools

• The “Yellow Sticky” Technique• Attribute Listing• Sensory Attributes

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The Yellow Sticky TechniquePeople love this approach for culling the diamonds out of your list of ideas. It is simple and straight

forward.

1. Put each idea on a separate sticky note2. Place randomly on the wall or in a mind mapping pattern3. The important point is to get your ideas onto yellow sticky notes and get them on the wall.

Weighted Attribute Ranking

The purpose of this approach (demonstrated on next slide) is to add a little objectivity to the idea tailoring process.

4. Listed across the top of the Excel worksheet are the attributes you consider important for tailoring (ranking) your ideas. They all have a weight and total to 100%

5. Each idea is given a ranking for each attribute and a idea “Weight” is calculated for each idea.

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Product Ideas

Evaluation

Weighted Attribute Ranking

Play Devel Bill Non Expandable/ Partners Unique Patentable Gut Total Time Of Reoccurring Consumables Available Selling Reaction Weight

Materials Engineering PropositionWeight 20.00% 10.00% 5.00% 15.00% 5.00% 25.00% 10.00% 5.00% 5.00% 100.00%

Raw ranking

Product A 1 1 2 5 5 3 1 4 1 23Product B 5 3 4 4 4 1 2 3 3 29Product C 2 5 1 3 3 2 3 1 5 25Product D 4 2 5 2 1 4 4 2 4 28Product E 3 4 3 1 2 5 5 5 2 30

Weighted AvgRanking

Product A 0.20 0.10 0.10 0.75 0.25 0.75 0.10 0.20 0.05 2.50Product B 1.00 0.30 0.20 0.60 0.20 0.25 0.20 0.15 0.15 3.05Product C 0.40 0.50 0.05 0.45 0.15 0.50 0.30 0.05 0.25 2.65Product D 0.80 0.20 0.25 0.30 0.05 1.00 0.40 0.10 0.20 3.30Product E 0.60 0.40 0.15 0.15 0.10 1.25 0.50 0.25 0.10 3.50

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Creative Thinking In BusinessEnergizing Your Ideas

Tools For Energizing Your Short List Of IdeasSCAMMPERR (384)

To illustrate this technique, lets say our product is a metal paper clip, and we want to enhance it. In this example, we are the original inventors of the paper clip. We find that another company is making paper clips, and we need to expand our product line to give our customers more choices.

1. (S) Substitute something – plastic for metal2. (C ) Combine it with something – Put on a clip board and chain3. (A) Adapt something to it – Make paper with a special area that will allow the paper clip to easily clip to easily

slide onto the paper.4. (M) Modify It – Make it in various colors5. (M) Magnify it – Make it a huge paper clip6. (P) Put it to some other use – Use it as a hair accessory or clothing accessory7. (E) Eliminate something – Shorten the wire at each end to be able to more clips out of a piece of wire8. (R ) Rearrange it – Make it a diamond shape9. (R ) Reverse it – Configure it so that it slides on sideways.

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Creative Thinking In BusinessEnergizing Your Ideas

Take It Apart Analysis (386)

This approach is concerned with the actual physical attributes of the product or product line. You normally will not have the time or other resources to do a “take it apart” analysis for all of your product ideas, as it is very detailed in nature and often requires substantial input from outsiders such as engineers and component suppliers. The take it apart analysis normally includes the following elements:

1. Document the typical user2. Document the components3. Who will buy it?4. How much will they pay?5. What is its unique selling proposition ?6. Who is the competition?

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Nuggets and Resources

F iverr.com – they will do anything for $5 Here they created a Youtube video - $5Elance.com provides instant access to the world's top pool of rated Programming, Marketing, Creative and Administrative contractors so you can get more work done, faster and more efficiently than ever.http://toginet.com to start your own online weekly radio show. You provide the content they do the rest.www.gotlogos.com – cheap logo designwww.vator.tv – place to pitch joint ventureswww.ourmilkmoney.com – a place for work-at-home parents to connect to resources and advertise their products/ serviceswww.skype.com – video conference – freewww.freeconferencingcall.com – free conference callingWWW.craigslist.com – post events, sell stuff, find employees, get jobs, etc. www.wordpress.com – free blog site

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www.createbarcodes.com – Create bar codeswww.prweb.com – Get your pressRelease distributed across the Internet.

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Griffin and Easy Brain Labs, Inc.70

If you want to walk on water, you have to get out of the boat.

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