Creating a Section Business Plan
Dyer Harris Vice President – Affinity Communities
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OBJECTIVE: To sharpen your thinking and approach to Section operations via a business -like approach.
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(For a full self-study or Section Professional Development course on writing a business plan for a company, go to www.asme.org ASME Career Development Series: “How to Develop a Business Plan for Engineers”)
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An ASME Section
is: non-profit providing a service staffed by volunteers
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is not: for profit selling shoes an employer
An ASME Section
does: elect officers advertise incur costs make plans
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does not: do layoffs pay taxes meet a payroll dance to Wall Street
So what do we mean by a “Business Plan” for a Section?
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2004 Plan: Tara North Section
Sep: Exec Comm meeting- think up things to do this year that we didn’t do last year Oct: Wait for allocation check from ASME so we can do the things Nov: Tour locker room mechanical systems before Falcon/Eagles game (game tickets not included) Dec: Holiday party at Section Treasurer’s duck blind (ammo at member expense) Jan: Member/guest ski trip to examine snow making machines (lift tickets extra. Injury waivers must be signed). Feb: Support NSPE celebration of Engineer’s Week Mar: Spring break Apr: TBD May: Turn in Program and Fin report; find new officers
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What is a Business Plan?
A prediction of your future?
(Do you predict the weather, too?)
A promise to your investors?
(with your firstborn as collateral?)
A hypothesis? (“If these things happen, then this will
result.”) The plan and its derived results simply prove the possibilities.
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“Weather today in the metro area will be sunny to partly cloudy, with chance of rain.”
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Elements of any Business Plan
1- Description of the Business 2- Marketing of the Business 3- Resources for the Business 4- Financial Management
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1- Description of the Business
Typically includes:
• Product or Service • Mission • Vision • Goals • Structure
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Product or Service
• Proprietary Considerations
What can ASME provide that others cannot?
• New Technology/Service
Technical info? Networking? Social?
• Best Price Structure
Members admitted free?
• Location vis-a-vis Customers
Meetings/events at convenient location(s)?
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Mission statements are popular
• A Qualitative Statement of the Reason for the Existence of the Business. • Begins with: “To Serve, To Deliver to, etc.”
Be simple, be clear, be not Biblical. If they (and you) can’t remember it, why bother?
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Vision
• A Qualitative Picture of What the Enterprise Believes it Should Become.
Not a revelation, but a longer term goal. Maybe in five years… If it can’t be remembered from year to year, then maybe it was just a bad dream.
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Goals
• A Quantitative Statement of what you want to achieve. • Must be Specific and Measurable. • Contains both Marketing and Financial Targets.
Short term preferred. You might achieve them before something changes.
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And things will change...
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2- Marketing the Business
a. Market Needs b. Competitors c. Competitive Edge d. Advertising/Promotion
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a. Market Needs
• Who is the Section’s Customer?
Members? Non-members? Both? Other?
• Similar Products or Services?
What are members are doing now in lieu of meetings?
• Trends in the Products or Services?
Look on the Web? Go to the big conferences? Self-study courses?
• Geographic/Seasonal Nature?
Winter time only? Same place every time?
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b. Competitors
• Who are the Largest Five Competitors?
Job demands, Family, Golf, ASHRAE / ASM / etc…
• What are their Strengths/Weaknesses?
What do they have that you can’t provide?
• Who are your suppliers?
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c. Competitive Edge
• Technology • Shared professional interests • Pricing • “Package” Offering • Communications capability
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D. Advertising/Promotion
Newsletter
Perennial favorite, but can it be better?
Direct contact
Invite someone directly
Paid ads
Invite the public to something interesting
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3- Resources for the Business
a. Management Team b. Facilities & Equipment c. Location (s)/ Accessibility d. Administrative/ Legal
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a. Management Team
• Experience of Key People
Bring in from both inside ASME and outside of it
• Organizational Lines
Big deal at the office; minimize in Section
• Flexibility of Resources
Call on different people for different things
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b. Facilities and Equipment
Minimum essential, but adequate Cost a consideration A-V eqpt can be a good investment
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c. Location/Accessibility
• With Respect to Member Location
Vary meeting or tour geographically.
• With Respect To Suppliers
Where is your speaker coming from?
• With Respect to Resources
Hotel Ballroom or Chair’s rec room?
• Other: Licensing, Permitting, etc.
Rarely an issue, unless program involves demos with reptiles or noxious chemicals
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d. Administrative/Legal
• Licenses/Permits/Franchise Agreements • Insurance • Professional Fees (Accounting/Legal) • Patents/Copyrights/Trademarks • Supplies Call your Regional VP, Field Office, or HQ
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4. Financial Management
• Start-up Budget • Operating Budget Forecast • Financial Statements • Cash Flow • Risks
You don’t get your report in on time...
• Investment
You should be so lucky
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