BUSINESS PLANNING

SCORECounselors to America’s Small Business

Sponsored by:

U.S. Small Business Administration

AGENDA

8:45 Registration

9:00 Welcome & SCORE Overview Dave Ward

9:15 SBA Overview Tammi Bennett

9:30 Business Plan Basics Dave Ward

10:15 Break

10:30 Sales & Marketing Process Greg Evershed

12:15 LUNCH

Afternoon Agenda

1:30 Financial Overview Larry Elliott

2:30 The Business, Management, References Dave Ward

3:30 Wrap-Up & Adjourn

Presenters: Tammi Bennett, Greg Evershed, Larry Elliott & Dave Ward

SCORE

OVERVIEW

Dave Ward

SMALL BUSINESS

ADMINISTRATION

OVERVIEW

Tammi Bennett

Business Plan Basics

WORKSHOP OBJECTIVES

• HELP YOU TO UNDERSTAND THE ROLE OF THE BUSINESS PLAN

• KNOW THE REASONS FOR DEVELOPING A BUSINESS PLAN

• KNOW THE TYPE OF INFORMATION TO INCLUDE IN A BUSINESS PLAN

• UNDERSTAND THE OUTLINE OF A BUSINESS PLAN

WHAT IS BUSINESS PLANNING

• Creating a strategic vision for your company• An important communication tool• A vehicle to obtain capital• A vehicle to obtain capital improvement

investment• A basis for sound decision making• A way to motivate people

WHY DO IT

• Reality check• Performance tool• Message sender• Motivational tool• Management development tool• Road map

WHAT SHOULD IT PROVIDE

• Evidence of focus

• Understanding of who your customers are

• An appreciation of investor needs

PLANNING

Planning entails analyzing the business or organization and it’s

environment, as it is today, in order to create a formal program for

guiding its development and success tomorrow.

PURPOSE OF PLANNING

To place the business or organization at a competitive advantage for the

future.

ELEMENTS OF A BUSINESS PLAN

• Executive Summary

• Company Overview & Description

• Market Analysis & Market & Sales Strategies

• Financial Plan

• Action Plan

• Supporting Documents

VALUES/ETHICS

• A value statement is a set of beliefs and principles that guides the activities and operations of your company.

• Values versus the law

SALES AND MARKETING

Greg Evershed

Marketing

• A Marketing Plan Should Identify Your Target Market By Segment

• Examples – Consumers Age 50 Plus

• Teenagers

• Businesses With Less Than 100 Employees

Marketing Plans

• A Market Plan Defines How you will Reach Your Target Market. Tools Include:

• Telemarketing

• Direct Mail

• Media Advertising

• Special Events

• Trade Shows

Marketing

• Your Market Plan is a Critical Element of your Business Plan

• The Market Plan Helps to Define Market Potential for your Business

• Size of Market

• Average Expenditure for your Product / Service

Marketing

• Your Market Plan Defines your Selling Process

• The Sales Plan Represents to Day to Day Activities Necessary to Accomplish the Market Plan

Understanding the Sales Process

• The Four Basic Selling Categories are:

• Business to Business (B to B)

• Business to Consumer (B to C)

• Retail

• E-Commerce

Each Selling Category has Unique Attributes

• B to B –buying decision isn’t usually personal. Buyers are looking for solutions to business problems and needs

• B to C – buyers are making a personal decision –can involve status, emotion

• Retail – buyers always want convenience, selection, brands

• E Commerce – depends on which category

Marketing Approach

• Different for each category

• B to B may use trade magazines

• B to C may use direct mail and telemarketing

• Regardless of the category, every business should have a marketing plan and a strategic sales plan

The Sales Plan

• Actionable – defines who to target by account type, decision maker or consumer characteristics

• Includes measurable goals with realistic timelines –example – increase sales revenue by 10% in 2005

• Sales plan is evaluated and revised as market conditions change

Overview of the Sales Process

• Every contact whether by phone, e mail, direct mail or other means, should present a concise message that creates interest in learning more.

Value Proposition

• Your message is your value proposition

• It should explain clearly what you offer and how your prospects will benefit from buying from your company

• A value proposition, like a sales strategy, can be modified as you come to better understand market needs.

Overview of the Sales ProcessB to B and sometimes B to C

• Qualify your prospects:

• Qualify need and ability to buy !

• Do they need what you offer?

• Can they afford it?

• Are they the decision maker?

• What is their timeline to decide?

Overview of the Sales Process

• Closing the sale:

• Gain agreement as you proceed –is there a clear need you can fulfill?

• Emphasize the value not the cost

• Prospect should acknowledge the value

• Understand your sales cycle

• Move to close the sale as soon as practical

LUNCH

FINANCIAL OVERVIEW

Larry Elliott

THE BUSINESS, MANAGEMENT &

REFERENCESDave Ward

THE BUSINESS PLAN

It is a story about your business.

It works because it forces you to stop and think about what you are doing. It prompts you to figure out what you want your company to become in the future and how you intend to make it

happen!

QUESTIONS

• What is the business

• What is the product or service you are going to offer

• Where will it be located

• When will your business be available to your customers

• Who are your competitors

• What makes you different from them

• Why will you be successful

• How will your customers know about your business

• How will you charge for your product/service

• How much money do you need to start your business

• How will you pay it back

THE PROCESS

• Identify your vision

• Imagine it

• Seek agreement

• Make some assumptions

• Develop Financial & Operating plans

• SWOTS – Strengths– Weaknesses– Opportunities– Threats

• MECAS– Market

– Environment

– Competitive Assessment

THEN

• SWOT yourself and your business

• Communicate, Communicate, Communicate

• Start all over again

PREPARING THE PLAN

• Identify your objectives• Outline your plan• Review your outline• Write your plan - gather info, prepare drafts &

write a summary• Have your plan reviewed

ELEMENTS OF A BUSINESS PLAN

• Executive Summary

• Company Overview & Description

• Market Analysis & Market & Sales Strategies

• Financial Plan

• Action Plan

• Supporting Documents

EXECUTIVE SUMMARY

• Most important section of your plan

• A concise overview of the entire plan

• Last section you write

EXECUTIVE SUMMARY CONTENTS

• Mission statement• Date business began• Who started it & what

do they do• Employee info• Location of the

business• Description of

plan/store/etc.

• Product/services description

• Banking/financial relationships

• Summary of company, market, financial growth

• Summary of management’s future plans

THE MISSION STATEMENT

• Highlight your business activities, including the markets that you serve, the geographic areas you cover and the products and services you offer

• Emphasize what your company does that sets it apart from every other business out there

• Include major accomplishments that you anticipate to achieve over the next few years

• Convey what you have to say in a clear, concise, informative and interesting manner

PLANNING DOES NOT GUARANTEE SUCCESS BUT

IT GOES A LONG WAY TOWARD BETTERING YOUR

CHANCES!!

NOAH DIDN’T WAIT UNTIL IT STARTED RAINING

BEFORE HE BUILT THE ARK

Planning Pays Off

REFERENCES

• www.sba.gov

• www.irs.gov/smallbiz

• www.nifb.com

• www.score.org

• www.nolo.com

• Trade Associations

• Libraries

• www.tax.state.ny.us

• City of Rochester Dept. of Economic Development

• Monroe County COMIDA

• www.monroecounty.gov

• www.growmonroe.com

• www.state.ny.us

• www.empire.state.ny.us