mba lite grow your business series phil bessler associate professor business clinic director sife...

MBA LiteGrow Your Business Series

Phil BesslerAssociate Professor

Business Clinic DirectorSIFE Sam Walton Fellow

Past President, Entrepreneurship Education ConsortiumBaldwin-Wallace College

Berea, OH 44017440.826.2083Copyright, The Bessler Consulting

Group, LLC

Grow Your Business Series Innovation

Organizing Marketing Funding

Copyright, The Bessler Consulting Group, LLC

2

Who is Phil Bessler? 10th Year at Baldwin-Wallace Founded the Business Planning Clinic Responsible for Teaching the

Entrepreneurship at the graduate and undergraduate levels.

32 years in business, Start-ups, small businesses, Fortune 500 divisions

BS Engineering, MBA For and Not-For Profit Boards


3

Contact Information Who you going to call?

Phil BesslerDirector, The Business Clinicwww.bw.edu/bpcBaldwin-Wallace College (even on the east side)[email protected]


4

Organizing the Business Legally

Planning Functionally Leadership and Management Processes Executing Measuring


5

Pick the Right Legal Structure Issues to think about:

Ownership Funding Personal Liability Taxes Future Plans Inc. Magazine Articles http://www.inc.com/choosing-

the-right-legal-structure

HG.ORG Legal Structures http://www.hg.org/busstructure.html


6

Planning

How do you test if an idea is a good opportunity

Once good, what do you do next?


7

Types of Plans

1. The Feasibility Study*

2. The Strategic Plan

3. The Business Plan*


8

The Feasibility Study Go/No Go Decision

Three Questions Is there a market? Do the financials make sense? What are the resources necessary?


9

Detailed Questions to Answer CONCEPT INDUSTRY AND MARKET/CUSTOMER FOUNDING TEAM FINANCIAL NEEDS ASSESSMENT


10

CONCEPT Who is the customer? What is the value proposition? What is the product/service being offered? What does your value chain look like? Which distribution channel alternatives are

available, and which customerswill be served by them?

Are there ways to innovate in the distribution channel?


11

INDUSTRY AND MARKET/CUSTOMER What are the demographics, trends, patterns of change,

and life cycle stage of the industry? Are there any barriers to entry? If so, what are they? What is the status of technology and R&D expenditures? What are typical profit margins in the industry? What are distributors, competitors, retailers, and others

saying about the industry? What are the demographics of the target market? What is the customer profile? Who is the customer? Have you talked with customers? Who are your competitors, and how are you

differentiated from them?


12

FOUNDING TEAM What experience and expertise does

the team have? What are the gaps and how will you

fill them?


13

FINANCIAL NEEDS ASSESSMENT What are your start-up capital

requirements? What are your working capital

requirements? What are your fixed cost requirements? How long will it take to achieve a

positive cash flow? What is the break-even point for the

business?Copyright, The Bessler Consulting

Group, LLC14

Feasibility Study Decision Go No-Go But Rework Shelve Give Up

If Go, advance to the hard work:A Detailed Business Plan


15

The Business Plan A Road Map Play Book Living Document


16

Uses of the Business Plan Equity Investors Bankers (especially SBA Loans) Key Employees Suppliers Customers

Most Important YOU!


17

Eight Elements of a Business Plan

2. Company Direction3. Company Overview4. Product/ Service Strategy5. Business Operations6. Market Analysis7. Marketing Plan8. Financial Summary1. Executive Summary


18

Executive Summary The most important part of your plan People read this section first – and

then go to the Financials You may be asked to send just the

Summary and Financials to some investors

Write it last when you’ve done the work


19

Two Types of Executive Summaries

Synopsis: sums up what’s in rest of plan good for all types of businesses

Narrative: tells a “story” good for businesses with one or two

dominant elements


20

2. Company Direction

2.1 Present Situation2.2 Vision Statement2.3 Mission Statement2.4 Goals and Action Steps


21

3. Company Overview 3.1 Company name3.2 Legal business description3.3 Current stage of development and financial status3.4 Management team3.5 Advisory Board/Board of Directors3.6 Staffing 3.7 Strategic alliances


22

4. Product/Service Strategy4.1 Physical or logical description descriptions4.2 Features and benefits of products/services4.3 Market needs4.4 Product life cycles4.5 Research and Development4.6 Production, Delivery and Service


23

5. Business Operations

5.1 Environmental sustainability5.2 Taking an order5.3 Filling an order5.4 Shipping5.5 Invoicing 5.6 Collection5.7 Inventory Control5.8 Purchasing5.9 Support5.10 Systems


24

6. Market Analysis6.1 Industry6.2 Competition6.3 Market6.4 Customer6.5 SWOT Analysis


25

7. Marketing Plan

7.1 Overall Marketing Strategy7.2 Sales Strategy7.3 Distribution Strategy7.4 Advertising and Promotion7.5 Public Relations


26

8. Financial Plan

8.1 Purpose 8.2 Business Assumptions8.3 Summary/ Analysis of Financial Statements

(Income/Cash Flow/Balance Sheet )8.4 Sources and Uses of Funds8.5 Payback Method/Exit Strategies


27

1. Executive Summary

1.1 The Conclusion1.2 Company Direction1.3 Company Overview1.4 Product/Service Strategy1.5 Business Operations1.6 Market Analysis1.7 Marketing Plan1.8 Financial Plan


28

Community Resources The Hudson Library The Business Clinic at Baldwin-

Wallace College SBA SBDC Jumpstart University of Akron Law Clinic


29

Typical Library Resources: Industries: NAICS - North American Industry Classification System 2007 (Ready Ref

HF 1042 .N677 2007) Online at: http://www.census.gov/eos/www/naics/ SIC codes - Standard Industrial Classification Manual 1987 (Ready Ref

HF 1042. S73 1987) Online at: http://www.osha.gov/p1s/imis/sicsearch.html Business & Company Resource Center — database Standard and Poor 's NetAdvantage (Industry Surveys & Sub-Industry

Reviews) — database Value Line Investment Survey — database 2010 U S. Industry & Market Outlook (Ready Ref HC 101 .U56 2010)


30

Library Resources: Financial analysis RMA Annual Statement Studies (Ready Ref 5681 .B2 R6) D&B Industry Norms and Key Business Ratios (Ready Ref HF 5681 .R25 1526)

Markets Business & Company Resource Center Business Source Complete Lexis-Nexis Academic — Company Dossier Demographics Small Business Development Center National Information

Clearinghouse (SBDCNET) URL: http://sbdcnet.org/ U. S. Census URL: http://www.census.gov/


31

Competitive Research Datamonitor Reports (in Business Source Complete) Company Dossier (in Lexis-Nexis Academic) Additional Resources: Business Plans Handbook.. a Compilation of Actual Business

Plans Developed by Small Businesses Throughout North America (Ref HD 62.7 .B865) (Latest editions online through OhioLINK Electronic Book

Center)


32

Organizing the Business Help Who you going to call?

Phil BesslerDirector, The Business Clinicwww.bw.edu/bpcBaldwin-Wallace College (even on the east side)[email protected]


33

Any Questions?


34

mba lite grow your business series phil bessler associate professor business clinic director sife...

Documents