The 8 questiones are for you when you have become eager to start your own Expansion Business (EB)

Not all people should start EB´s, some should start:

Business for a Good Living (BGL), and some should fulfill their dreams by:

cooperating with the one that starts BGL’s or EB’s

Cooperating with the one that start BGL’s or EB’s

To decide for yourself, think of the following questions in five minutes:Look back into your life up till now: Have you

been placed in, or taken some responsible leadership of any kind like:

Hobby situation, Educational, student situation, Family situation If so, did you come reasonabley well out of it, did

you have success, or did you enjoy the leadership?

Starter EB, BGL or a cooperator? Cont.If ”YES” then why do you like the idea:› You want to to be free, and do as you like, not having to

do as others tell you? (count -1)› You would like to accept the challenge of doing

something you are not sure you can do? (count +1)› Are you willing to learn, not only knowledge, but new

ways of acting in your life without a teacher? (count +2)› Do you have some person you have read about (not

only from mass media) that you admire for beeing a business entrepreneur? (count +1)

How many points did you give yourself?› -1: Don’t start: As a leader you must most often do what

is needed, very seldom you are ”free” to do ”what you like”

› 0: You can wait, and keep on developing yourself, go together with some other leader to follow. (Have you met anyone you could have followed into

an uncertain venture?)› +1: Go ahead with a BGL› +2: Go ahead with a BGL or an EB› +3: Go ahead with an EB or BGL, but do careful

preparations› +4: Full speed ahead, but with careful preparations and

caution, recruit followers.

If ”YES”› Keep on and you will have success. (Act constructively

on your feelings!) If ”NO”

› If you are not able to mobilize yourself and your resources when prompted from the outside, you are not very likely to succeed.

› You have to learn from others, not only knowledge, but also capabilities to ”act out” on you own initiative, based on impulses that you receive from others.

› Act constructively on you feelings!

This present short course?› YES

This course in your life?› YES

WE CONTINUE!

Of course you can start some business without planning ahead: you just start earning money with some new or old product or service, working hard.› And expand the business if you earn enough.

However, many will fail because of reasons that could be found out beforehand, with some investigations and thinking.

Failures take energy The following represents some guidelines to think about

starting a new venture, that the author have found fruitful to discuss, both before, during and after a company startup.

The guideline is in the form of 8 Questions to be answered Answering these questions, and making a budget, you have

the outline of a BUSINESS PLAN

8 questions

1. Customers classification (Target): Who are the customers?2. Solution of Frust: Value proposition : What do you promise

the customers? Frust (Problem to be solved, Pain or Vitamins)

3. Product description. How do you fulfill the promise?4. Price to be paid by customer? (and costs for provide the

solutions)5. Market channel description: How do you reach the customer?6. Competitors, Who are they and Where?7. Distinction from competitors?8. Possible sales volumes?

Rough estimate of 5 year P&L and Balance financial projections.› The “LMK Nymodellen”

Some possible examples:› People walking to the Railway Station› Wealthy, elderly ladies between 60 and 70

with an interest for politics, living in the suburb of Manilla

› Newlywed couples, living in the countryside with an interest for…

› Bakeries in the central part of the City with more than 1 employee

Your delivery of something to the customer must be of as high value to him as possible: His problem should be high. (Search for Problems)

Do concentrate on the need of the possible customer, not on what you want to do.› (But it is a good strategy to build on what

you are good at)

“Frust” may be several things:› A Problem› An unused opportunity› Some possible improvement› A business Frustration› Doing something with a lower cost› Earning more money, getting more profit from the business

The FRUST has a Value: The money that would be saved if the Frust was “solved”, or made to disappear.

The FrustsSolutions are often classified into the groups of:› Painkillers

That there is a desperate need for.(Solution to a High-valued FRUST)

› Vitamins Something that it is just “nice to have” (Solution to a Low-

valued FRUST)

Should you sell your service or product for:› What it costs you plus some profit?› Something less than what he saves by

buying from you to relieve his FRUST?› Very much less than he saves? (YES, 10-

20%of what he saves. In this case he can not refuse your offer)

Then you find out what your costs are and if you will make a substantial profit, so that you can start the business

How are you going to reach your potential customer with your fantastic offer?

This depends on the Price of your service or product:› Low cost Consumer impulse product: “Word of

Mouth” , local advertizing, Posters.› Costly, big service schedules for Industry:

Personal visits For EB you must count on 20-60% of your

sales price to be spent on marketing, sales advertizing and market channels

You should not start business where you have many competitors! (Unless you have some “unfair” advantage! )

So you must find out “what is your competition”):› Old ways of doing things› Others offering to solve the same problem:

Hunger: Eating places Thirst: Drinking places

› (Potential competitors: Others that may copy you if you are successful)