Nevada Microenterprise Initiative

How To Manage a Successful Small Business

Anna Siefert, Operations Manager/WBC Project DirectorNMI

1600 E. Desert Inn Rd., Suite 203Las Vegas, NV 89146

(702) 734-3555

October 2004

Nevada Microenterprise Initiative

Managing a Business is Like…Building Your Own Pool

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Nevada Microenterprise Initiative

Being an Entrepreneur

VisionMissionDefinable Measurable GoalsAbility to Identify and Take Calculated RisksPassion About Your BusinessPuzzle Solving SkillsAbility to Communicate with People

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Nevada Microenterprise Initiative

Vision

The ability to focus your business on success

The why The whoThe what

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Nevada Microenterprise Initiative

Mission

The driving force behind your business

The how The where

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Nevada Microenterprise Initiative

Goals

DefinableSpecificAchievableMeasurableWhen

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Nevada Microenterprise Initiative

Risk

FinancialFailureWhat level of risk are you comfortable taking?

How can you lower the risk?

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Nevada Microenterprise Initiative

Passion

Personal CommitmentFamily CommitmentWilling to make sacrifices

Ability to communicate your passion

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Nevada Microenterprise Initiative

Puzzles

Identify the piecesOrganize themGroup themPut it all together

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Nevada Microenterprise Initiative

Communication

With your familyWith your employeesWith your CustomersWith your suppliersWith your competition

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Nevada Microenterprise Initiative

Understanding Your Business

ProductsMarketTeam membersFinancial situation and needs

Future

Nevada Microenterprise Initiative

Why did you decide to develop this product?Where are you today?What is the product you sell?Why is it the best?How will it revolutionize the planet?

Nevada Microenterprise Initiative

What is the driving force behind your business?Who are you going to serve and how?How are going to make this business a success?What is the action plan?

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Nevada Microenterprise Initiative

Market Description, Competition & Marketing

Target marketDemographicsCompetitionAdvertisingPromotionImagePublic Relations

Nevada Microenterprise Initiative

Who is your primary, best, dream customer?What are the demographics of this customer?Where are you going to find them?How are you going to find them?Where are they spending their money now?Is it going to take re-training to get them to use their product?Is your product so advanced that the news media will want to do stories on your product?When will you be ready to go to market?

Nevada Microenterprise Initiative

What materials do you need?What equipment do you need?How many people do you need?How will the manufacturing process work?How will you ensure quality?How will you test your product?How are you going to get the product to the customer?How much inventory will you need to keep on hand?Why is your manufacturing process the most efficient way to produce the product?Is it state of the art?

Nevada Microenterprise Initiative

Where are you now?Who do you have working with you?What kind of talent do you need?What is everyone going to do?What are they going to get paid?Who reports to whom?Are there people outside (NOT ON PAYROLL) that you can go to for help?How is the investor going to get the percent of ownership that they require?

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Nevada Microenterprise Initiative

Finance

Financial PlanRevenue ModelFinancial Projections Breakeven

Nevada Microenterprise Initiative

Where are you now financially?Are you in the red?If I invest is it going to cost me money to get the company even?How much are the hard costs and soft costs going to be?When will the company break even?What will my return on investment be? When?What do the owners have invested in the company?

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Nevada Microenterprise Initiative

Keys to Success

Reduce Risk Acquire Financing Build Strong Business Structure Create a Marketing Plan Build Credibility Increase Chances of Survival Identify Problems Clarify Business Needs Identify Management Issues

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Questions?