Going From Ideato OperationsA Simple Framework For

Building Your New Business

OUR DESTINATION

● Complete & accurate Business Plan● Fully vetted business model● Fully operational company

WHERE ARE THE STICKING POINTS?

● Making the commitment?● Where do I start?● How do I make the time?● How do I structure it?● How do I get funding?● How do I promote it?● Who would buy it?

OUR JOURNEY

WE'RE GOING TO FOCUS ON...

● List of of "things to keep in mind"● Keeping it simple● Breaking down hurdles● The big picture

WHAT IT CAN DO FOR YOU

● Minimize overwhelm● Easy-to-manage chunks● A starting point for each chunk● Bridge gaps to continue momentum● Prevent duplicate effort (building blocks)● Save time & money

WHAT IT CAN'T DO

● Provide a detailed process● Be a one-size-fits-all● Specific scenarios

WHERE IT CAME FROM

Real Estate Brokerage...got distracted, it fadedRenovate Historic Homes...distracted, fadedIT Consulting...distracted, fadedReputation Management...distracted, fadedSMB Marketing Consulting...sold it!Mobile App Development Platform...sold it!

Duh!? Build it to sell or hand off.

Stage 1: RecordLeave a Trail of Breadcrumbs

KEEP A BUSINESS JOURNAL (!)

GOAL: JOURNAL PACKAGE

● One entry for each work day● What did you learn today?● What did you accomplish today?● How will you build on accomplishments?● Review it frequently● Can be written or video (YouTube private)

Stage 2: IdeateLay the Foundation

GET YOUR DUCKS IN A ROW

GOAL: PEACE OF MIND

● How long will it take?● Create a startup budget● Create a startup goal (number or event)● Can you pay for startup expenses?● Household bills covered during startup?● What is your "Why"? (motivator)

WRITE DOWN YOUR BEST GUESSES

GOAL: LIST OF HYPOTHESES

http://goo.gl/qp0v1 (hbr.org)

SNAPSHOT A 10,000 FOOT VIEW

● What is your product?● Who are your customers?● How will you deliver the product?● How will you connect with customers?● How will you generate revenue?● What important resources do you need?● What partnerships do you need?● What are the critical delivery activities?● What are the costs?

FIND YOUR ACCOMPLICES

GOAL: TEAM PACKAGE

● Document co-founder roles● Is your family on the same page?● List potential Board of Directors● Who will be on your Advisory Board?● Administrative service providers?

Stage 3: DiscoverFind a Product-Market Fit

PROVE OR DISPROVE YOUR GUESSES

GOAL: PROFITABLE BUSINESS MODEL

http://goo.gl/0ZSis (Udacity.com)

WARNING: DON'T GET BURIED

Gist:● Be a "student" not a "salesman"● Searching for what {you don't know}2

● Ask "live" customers (100+)● Validate you are solving their problem● Demonstrate they will pay you● Ensure market is large enough*● Keep it simple...

via: FundersAndFounders.com

Stage 4: UnderpinDefine the Company's Core Functions

THE WAY YOU DO THINGS

GOAL: CULTURE PLAN

● Do you want to instill a specific culture?● How will you empower employees?● How will you train employees?● How will you develop leaders?● Will you encourage "20% time" projects?● Internal culture aligned w/ external brand?

ZapposInsights.com

WHY CUSTOMERS GIVE YOU MONEY

GOAL: PRODUCT ROADMAP

● Expand on Validation results● Is your product fully documented?● How will your product improve over time?● How will you innovate?● Will you offer additional products?● Are there complementary partners?● Can you create "packaged offerings"?

UNDERSTAND YOUR BUYER(S)

Expand on Validation resultshttp://goo.gl/be2mW (HubSpot.com)

GOAL: CUSTOMER PERSONAS

CLOSE SALES, DELIVER THE GOODS

GOAL: SALES & DELIVERY PLAN

● Expand on Validation results● Do you need a dedicated sales team?● Do you need a dedicated support team?● In-house staff or outsourced?● How will you process sales?● What payment methods will you support?● What are your payment terms?● How is the product delivered?● Will after-sale support be provided?

BUILD YOUR (FORTIFIED) CASTLE

GOAL: ENTITY & ASSET PLAN

● Will you use an LLC, S-Corp, C-Corp, etc?○ http://goo.gl/lqrR1 (AzCommerce.com)

● Do you have an asset protection plan?○ Lodmell.com

● Filing a trademark, copyright or patent?○ http://goo.gl/S2qGx (Uspto.gov)

● Are you aware of all tax regulations?○ http://goo.gl/JzruD (AzCommerce.com)

Stage 5: AssemblePut the Puzzle Together

GET, KEEP & GROW CUSTOMERS

Score.orgSteveBlank.comExpand on Validation results

GOAL: MARKETING PLAN

HIRE & FIRE

GOAL: PERSONNEL PLAN

● What are the job descriptions?● How will you attract candidates?● How will you qualify candidates?● What will you ask during interviews?● Do you have specific personality needs?● Certification or degree requirements?

ZapposInsights.com

BENEFIT THE COMMUNITY

GOAL: CONTRIBUTION PLAN

● Do you want to give back?● How will you engage in your community?● Financial donations?● Community service?● Who will you donate to?● Sale-based contributions?

○ ie. Toms.com● Staff-wide or corporate level only?

WORKING ENVIRONMENT

GOAL: WORKSPACE PLAN

● Do you need manufacturing facilities?● Where will the workspaces be?● Easy access to needed resources & staff?● Do you want a specific "feel" in the office?● Will you support telecommuting?● Will you require specific "in office" hours?● Will you buy or lease the office? furniture?● How will you stock office supplies?

Stage 6: ScaleDrop the Hammer

GET OUT OF THE WAY

GOAL: BUSINESS PLAN

● Roll it all into the coveted Business Plan● Create an operational org. chart● Hire a CEO or go Owner/Operator?● Hand over the Business Journal Package● You've built an effective business system● Let the system do its thing● Enjoy the ride!

RECAP

One Final Ingredient...

Action