presented by: the collaborative for innovative social enterprise development (cised) 1

Introduction to Business Planning & Market Research

Presented by:

The Collaborative for Innovative Social Enterprise Development (CISED)

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CISED workshops overview

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Workshop # 1 & 2: What is Social Enterprise?Is our idea a good one? Are we ready?

Workshop #3 & 4: How do I make a business plan? What social costs/accommodations do I

need to consider?

Workshop #5 & 6: How can I market my products? How do I manage the $?

Workshop Objectives

Develop: the barebones of a business plan to get you started

Develop: a strategy for doing market research

Increase: your knowledge about resources available to help with market

research and business planning

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Workshop Agenda – Part I

Business Model Canvas Do a sample canvas for Cycle Salvation

together You do a canvas for your enterprise

Attached is an excerpt of the CS marketing plan which I feel is ready for implementation. The attached includes the objectives, strategies, and related workplans – which are based on the audit that was done in late summer. If you would like to see the full plan or audit findings, pls let me know.Any feedback is welcome – thx.

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Workshop Agenda – Part II

Market Research Background info Design your own market research

strategy

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Workshop Agenda – Part III

Where do I go from here? Who is your business plan for? Who should do it? When & How should I do it?

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Business Planning

Business Plan Model

Idea Generation

Concept Development & Testing

Key Strategic Issues

Strengths Weaknesses Opportunities Threats

PlanningChallenges

Business PlanDescriptionProduct/ServiceMarket AnalysisMarket PlanOperational PlanFinancial PlanRisk Analysis

Contingency PlanDescriptionProduct/ServiceMarket AnalysisMarket PlanOperational PlanFinancial PlanRisk Analysis

Strategic Review, Implementation, and Assess Results

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Your Turn!

Napkin Financials

Quick Costing – don’t worry about accuracy

Don’t forget costs like: Insurance Administration Website design & marketing Materials Equipment Rent & Utilities HR costs

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Group Survey Activity

What questions do you have now? What do you need to know?

Chose one question to survey the group with i.e. How much would you pay for a used

bike?Write the question on your flip chart

paperUse your post-it’s to answer each

other’s questions11

What is market research? Ongoing, orderly,

objective way of learning about products, people, & bizs

Gathering, recording, analyzing information

what is the need ? who needs/wants it ? who is willing and able to

pay ? how much do they need?

and when? and where?

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Why do market research?

Ensure there are enough potential buyers to make your venture financially feasible

Get it RIGHT – the right product, at the right price, at the right time, in the right place.

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Primary Research

What we did in the earlier exerciseMost common methods:

Polls Questionnaires Focus groups Product or service sampling Mystery shopping

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Secondary Market Research Advantages:

Relatively cheap and easily accessible

Disadvantages: Not specific or

focused May be biased or

difficult to validate

Use reliable sources

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Small Business Profiles(http:www.ic.gc.ca/eic/site/pp-pp.nsf/eng/home)

SME Benchmarking Tool

Compiled by Stats Can: NAICS number Geographic area / year

Shows: Types of expenses Net profit/loss Percentage profitable 16

SME – NAICS 72232 (Caterers)Statistics Canada2006 Small Business Profiles – OntarioNAICS Number: 72232 – Caterers Average of all bizs

Whole Industry

Lower Half (50%)

Upper Half(50%)

Bottom Quartile(25%)

Lower Middle(25%)

Upper Middle (25%)

Top Quartile(25%)

Percent of bizs reporting

Number of bizs

1199

Revenue range

Low value ($000)

30 30 117 30 63 117 298

High value ($000)

5000 117 5000 63 117 298 5000

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SME – NAICS 72232 (Caterers)Whole industry

(% of revenues)Bottom Quartile

Lower Middle

Upper Middle

Top Quartile

% of bizs reporting

Total revenue 100 100 100 100 100

Cost of sales

- wages 1.1 2.8 5.5 12.4 28.7

- purchases 31.8 41.5 42.1 41.0 89.3

Operating expenses

- Labour 6.4 6.9 13.1 16.8 55.1

- Rent 7.3 6.1 7.0 6.6 56.3

- Adv & promo 1.3 1.1 1.1 1.7 64.5

Total expenses 85.8 89.2 94.8 100.4 99.9

Net profit/loss 14.2 10.8 5.2 -0.4 99.9 18

Market Research Plan

Worksheet #2 Start working on your plan, focus on the 2nd

column Jill will come around to offer suggestions

Secondary Source Examples Industry Canada Statistics Canada Ottawa Neighborhood Study Ottawa.ca

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Where do I go from here?

Business Plan Strategy Who is it for? Why are you doing it? How does this change your approach? Pro and cons of an internal staff member

vs. hiring an external consultant

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Business Plan Resources

CISED materials What should your business plan include? Benefits of Business Planning & 10 Tips Start-Up Business Plan Format How to hire an external consultant to do a business plan Cyclists Kitchen Feasibility Study & Business Plan Market Research Hand-out from OPL

Samples and templates Gale Virtual Reference Library www.bplans.com Social Enterprise Guide - enp

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Business Assistance from the Ottawa Public Library

Jill Hawken Main library 120 Metcalfe Street Jill.Hawken@BiblioOttawaLibrary.ca 613.580-2424 ext 32140

Krista Woltman Nepean Centrepointe 101 Centrepointe Drive Krista.Woltman@BiblioOttawaLibrary.ca 613.580.2424 ext 41467

Email a question directly to business services Business@BiblioOttawaLibrary.ca

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Wrap-up & Questions

Summary

One thing that came into focus

One thing that is still out of focus

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