business planning & library resources€¦ · 5/14/2009 · resources on business planning •...

Bridgeport Chapter 0471 & Trumbull Library

Business Planning & Library Resources

SCORE Workshop May 14, 2009

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Introduction to SCORE •  SCORE is a nonprofit, volunteer organization, a resource

of the U.S. Small Business Administration (SBA)

•  Mission: To promote economic growth in America (Act of Congress in 1964)

•  Purpose: Using experienced senior counselors, SCORE helps new and existing small businesses solve operating problems, become better managed and profitable

•  SCORE 471 Counseling services are FREE

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Why create a business plan?

“It is far cheaper not to begin an ill-fated business than to find out by experience what a Business Plan would have told you at the cost of several days of concentrated effort!”

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Business Plan: A Reality Check

•  The hard facts of business startups: –  650,000+ startups per year (2006 data) –  500,000+ failures in (2006 data) –  80% expected to fail within five years

•  Why? –  Lack of management expertise –  Failure to understand business / market –  Lack of sufficient capital –  Failure to Develop a Viable Business Plan

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Workshop Objectives

•  Simplifying the Business Plan •  Goal is to provide insights into:

– Business Planning Process – Resources to Assist in Planning – Business Startup Issues – Risks/Pitfalls of Starting a Business

•  Will allow opportunities for questions

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Resources on Business Planning

•  React to Business Planning ideas and goals

•  Show resource organizations •  Illustrate basic publications and media •  Industry-specific answers –

Retail Liquor Store & Local Restaurant

•  What we can and can’t do.

Overview

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What is a business plan?

•  Outlines what you plan to do, why you are doing it and how progress will be measured

•  A roadmap to success -- setting a course for your business over time

•  Can and should be changed as conditions move

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What is a business plan?

•  Living document about your business •  Valuable tool for evaluating variables

affecting your business •  Excellent planning guides are readily

available

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General Rules for Preparation

•  Needs extensive research to complete

•  Should be concise – to the point

•  Must be your plan, although you can / should get expert help along the way

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Resources on Business Planning

•  Trade Associations •  SBA, SCORE and business experts •  Neighbors: City, County, State, Nation •  Encyclopedia of Associations, Standard Directory of

Periodicals •  Books, magazines, newspapers •  Databases •  Industry surveys & Industry Average reports

Industry-specific example: Standard & Poor’s Industry Survey, report on Retail Industry.

Answers & Issues within Key Organizations & Media

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Why create a business plan?

•  Provides planning discipline •  Helps determine idea’s feasibility •  Clearly communicates your ideas •  Necessary selling tool for raising capital •  Serves as tracking tool to measure

performance

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Qualitative Analysis of Bus Plan

•  The “concept” / purpose / mission •  What is the “business?” •  The Market / The Consumer - Prove It! •  What is the “hook?” Why is it a better

“mousetrap”? •  The Marketing Plan •  The Production Plan •  Other Issues - Personnel, Locations,

Regulatory or Legal Issues

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Quantitative Analysis

•  Numbers => and Lots of Them – Cash Flow = Money In and Money Out –  Income Statements – Balance Sheets – Sources and Uses of Funds

•  Sensitivity / Risk Analyses – What Happens If…?

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Business Plan: A Reality Check Is your business concept reasonable? •  Is there demand for your product or

service? –  Clear customer need? –  Competitive edge?

•  Are risks commensurate with rewards? –  Gather enough facts/opinions to justify continuing

process. –  Make preliminary judgments –  Confirm via business plan elements!

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Is your business concept reasonable? Business Plan: A Reality Check

•  Put your ideas into words! –  State your business concept (what is it you do for

customers?) –  How does the customer benefit? –  Who is your target market?

•  How can prospects be identified? –  How do you want customers to perceive your

business?

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Business Plan Elements: Executive Summary

•  Description of business •  Mission and desired outcomes •  Identification of critical startup issues •  Concise one page summary •  Must sell your idea

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•  Customers •  Competition •  Channels •  Costs

Business Plan Elements: Marketing Plan

The 4 ‘s and 3 ‘s of marketing

•  Product •  Promotion •  Price

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•  Competition – Companies •  Who else is doing what you do. •  Cost of doing business •  Demographics – age groups, target

market, customers •  Channels concept

Resources on Marketing Planning


Local information example: Fairfield County Business Journal, useful for both industries.

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Industry-specific resource - Retail Liquor Store: •  Competition – Companies •  Cost of doing business •  Demographics – age groups, target market,

customers •  Channel concept



Reference USA database directory – tailored, local lists of potential competitors available through many local libraries.

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Industry-specific resource - Local Restaurant: •  Competition – Companies •  Cost of doing business •  Demographics – age groups, target market,

customers •  Channels concept



www.StatUSA.gov & www.census.gov, government sources of local regional population profiles.

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•  How will your products be manufactured? •  Where/how will products be shipped and

inventoried? •  Where will you locate your business? •  Why did you choose that location? •  What are your space and equipment needs? •  What are your costs for startup and

continuing operation?

Business Plan Elements: Operational Plan

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Overviews of Industry: •  How’s it doing, trends, your research? •  Local, state and federal regulations •  Other industries in the chain


Resources on Operational Planning

Special issues of magazine: Sales and Marketing Management, 2008 Buyers Guide.

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Industry-specific resources – Retail Liquor Store: •  How’s it doing, trends, your research task. •  Local, state and federal regulations. CT Liquor

Control Division, etc. •  Other industries in the chain: Wineries,

Distillers, etc



Industry-specific answer - Retailer trade groups: American Beverage Licensees, www.ablusa.org; & Beverage Media Group www.bevnetwork.com.

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Industry-specific resources – Local Restaurant: •  How’s it doing, trends, your research task. •  Local, state and federal regulations. Local

Health Board, Planning & Zoning, Fire Marshall, etc.

•  Other industries in the chain: Foodservice distributors.



Industry-specific answer - Trade association: National Restaurant Association, www.restaurant.org.

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•  Who will manage your business? •  How much staffing is needed – full time

or part time? •  Are job descriptions available to aid in

hiring and training process? •  What is your employee compensation/

benefit plan?

Business Plan Elements: Human Resources Plan

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•  Issues – management organization •  Professional & trade associations – Join! •  Occupational Handbook •  Training or Benefits Associations & Magazines

Resources on HR Planning

Business Plan Elements: Human Resources Plan

Industry-specific resource for Retail Liquor or Local Restaurant: Database search in Business & Company Resource Center (at most Libraries) to find current full-text magazine articles: HR issues and liquor business or HR issues and restaurant business.

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•  What business form do you plan to use? •  What administrative steps must you take

to establish your organization? •  What kinds of insurance do you need? •  What licenses do you need? •  What professional help will you need?

Business Plan Elements: Organization & Support Plan

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•  Financing - Leasing - Banking •  Business Insurance •  Licensing •  Incorporation

Business Plan Elements: Organization & Support Plan

Resources on Money Planning

Two specific examples for Retail Liquor Store or Local Restaurant: CT Licensing: CT-clic.com for help deciding: trade, personal, or facility. Restaurants require Food Service Certificate from local health dept. CT Judicial Branch Law Libraries (open to public in 16 locations: www.jud.ct.gov/LawLib/).

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•  Schedule activities realistically •  Identify and quantify critical milestones •  Outline process for:

– Measuring results – Taking corrective actions whenever necessary

Business Plan Elements: Timetables / Action Steps / Milestones

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•  Most important financial planning tool •  Movement of money into and out of

business over specified time period •  Projects amount of cash needed to start

up and run business •  Not same as Income Statement

Business Plan Elements: Financial Plan

Cash Flow

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•  Principally a cash management tool •  Level of sales that must be reached to

produce enough gross margin cash to cover other cash expenses

•  Some periods may not “breakeven,” but your objective is reaching volume and expense level that will consistently provide positive cash flow


Breakeven Analysis

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•  What are key financial risks? •  What are key operational risks? •  Identify contingency plans that can

hedge risk areas?

Risk Analysis


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•  Engage professional accountant •  Set up useable record keeping system

– Books of original entry – General ledger

•  Stay involved in “the numbers” – Record actuals vs. plan monthly – Analyze to understand variables

•  Keep financial transactions above board


Management Controls

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Business Plan Elements: Supporting Documents

•  Resumes of key personnel •  Personal references •  Personal credit information •  Leases, franchising documents, etc. •  Licenses •  Loan agreements

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Summary on Resources

•  Common Elements •  Plan of Attack •  Some specific resources •  Useful organizations & advisors •  Business & Career Center, Trumbull

Library •  Handouts & questions after

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•  Understand each element: Make it your plan

•  Keep realistically conservative •  Keep short, but include all important

details •  Get help whenever needed •  Practice how to sell plan to investors •  Manage to your plan •  Adjust your plan as necessary

Business Plan Elements: Planning Process Summary

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Questions?

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Bridgeport Chapter 471 & Trumbull Library

Thanks for attending!