small business orientation 2012 v1
TRANSCRIPT
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Texas State SBDC 2011
Getting Started in Business
The Business Plan
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Texas State SBDC 2011
The Business Advisor
Small Business
Development Centers
Introductions …
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Texas State SBDC 2011
Managing Expectations
1) From Idea to Launch … What Happens? 50% Don’t Make it to Step-2 (Business Plan), 75% Never Launch
* It is Hard Work & Long Hours * I Have to Promote & Sell Myself
* I Have to Use My Own Money * I’m Not Really That Committed
2) Failure Rates …. Why? 50% of Starts Fail in First 2 Years, 75% of Starts Fail in First 5 Years
* Start For the Wrong Reasons * Location, Location, Location
* Poor Management * Poor Planning
* Insufficient Capital * Overexpansion (Focus/Discipline)
* Website & Technology * Sales, Marketing, Pricing
3) What Can You Do Differently? * Research/Plan * Resources/Help
* Over-Funding * Networking/Technology
* Do It Yourself * Sell, Sell, Sell
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Texas State SBDC 2011
Dispelling Myths & Misconceptions
• The SBA “Money Tree” & Grants Will Get Me There• If I Build It, They Will Come !!!• I Believe … Therefore everyone else will• Raising money is the end in itself; $ validates you• Someone is going to steal my idea…
– Confidentiality Agreements & Intellectual Property• No Platitudes …
• It’s flawless, can’t fail• I must maintain control
• There is no competition• Best customer service
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Texas State SBDC 2011
Startup Money
Sources of Start-up Capital… – Owner Equity – Family & Friends– Funding Websites
----------------------------------------------------------------– Bank Loans– Formal Investors– Grants & Competitions– SBIR/STTR/Etc.
Business Cycle Bank Loan Decisions &Outside Funding Paths
Business Cycle Bank Loan Decisions &Outside Funding Paths
85%85%
A Business Plan ???
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Texas State SBDC 2010
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Texas State SBDC 2010
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Texas State SBDC 2011
Do You Need it in Writing?
• Do you have a clear vision?• Do you have years of experience, network, and
reputation in your industry?• Can you clearly describe your customer profile, market
niche, marketing approach, sales strategy? • Do you have the capital, credit score, partners and
resources?
Three Stories – No, Yes, Partial
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Texas State SBDC 2011
The Business Plan
• Narrative Component & Financial Component– Starting with Assumptions– DIY: Don’t Use Canned Software or Paid Writer
• What Characterizes a Good Business Plan• What’s New in Business Plans• What is Your Audience Looking For?
– Ten Traits in Ten Minutes
• Additional Suggestions• Do’s & Don’t’s• Keep Your Eye on the Prize
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Texas State SBDC 2010
Narrative Components of a Business Plan
• Introduction, Executive/Financial Summary• The Idea: Your Products and Services• Customer Profile, Need, Target Market• Product, Technology, Operations• Marketing Plan & Budget• Sales Strategy & Tactics• Team
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Texas State SBDC 2010
Financial Components of a Business Plan
• Budgets (Launch / Operations)• Sources & Uses of Funds • Business Financial Projections• Personal Financials & Tax Returns• Credit Score / Report• Supporting Documentation
Show Milestones
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Texas State SBDC 2011
What Characterizes a Good Plan?
• 3 Legged Fit. Market, Personal, Financial• Targeted, direct, purposeful. Specific/Focused• Supported by verifiable research and insightful
analysis. Bottom-up, First.• Recognizes risks, threats, and the competitive
environment. Realistic.• Embodies real-world opportunities and planned
contingencies. Thoughtful & Agile.• Reflects you & your Business. Unique.• Clear, Concise, and Compelling. Respect.
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Texas State SBDC 2011
What’s New in Business Plans!by Rhonda Abrams (Business Plan Author)
• Consider Globalization / Outsourcing• Greater Emphasis on Feasibility Analysis• Plan for the Use/Role of Technology and
Social Media in Your Business • Address Social Responsibility• Have a Plan for Distributing your Plan• Peter Gruber (Yahoo Finance) …
– “If you can’t tell it, you can’t sell it” (VIDEO)
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Texas State SBDC 2011
Ten Traits in Ten Minutes (by David Rose, Venture Capitalist)
Experience Leadership
Knowledge Commitment
Skills Vision
Passion
Integrity
Realism Traction
Humility/Coachability
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Texas State SBDC 2011
Additional Suggestions
• Know Your Plan (Walk the Talk)• Get Help & Solicit Genuine Feedback • Make Sure it all Connects, Be Consistent• Be Passionate, Don’t Follow Your Passions • Communicate @ 8th-Grade Level• Professionalism Counts• People Connect to People• Remember: It’s All About Money
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Texas State SBDC 2011
Do’s and Don’ts
• Do: Progress logically & use lots of visuals
• Do: Connect to things your audience understands
• Do: Cite independent sources for validation
• Do: Make sure the opportunity is believable
• Do: Edit, Edit, Edit – Devil’s Advocate
• Don’t: Include typos, errors, omissions
• Don’t: Present internal inconsistencies or contradictions
• Don’t: Discuss things the audience won’t understand
• Don’t: Say anything untrue, unbelievable, or irrelevant
• Don’t: Guess at numbers or use random assumptions
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Texas State SBDC 2011
Keep Your Eye on the Prize
• I Don’t Know You ?• I Don’t Know This Business?• Why Should I Even Care ?
• How Can I Help ?• What are the Next Steps ?• Where Do I Send the Check ?
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Texas State SBDC 2011
When it all Seems Overwhelming, Remember .. Persistence Pays
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Texas State SBDC 2011
Next Steps
• Get Help & Solicit Genuine Feedback • Do Your Homework. Know Your Business• Analyze Feasibility & Prove Concept
• Write, Re-Write, Write, Re-Write !!!