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					         Creating a
           Section
        Business Plan

                Dyer Harris
    Vice President – Affinity Communities



1
    OBJECTIVE: To sharpen your thinking and
    approach to Section operations via a business
    -like approach.




2
    (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”)


3
              An ASME Section

    is:                     is not:

    non-profit              for profit
    providing a service     selling shoes
    staffed by volunteers   an employer


4
              An ASME Section

    does:               does not:

    elect officers      do layoffs
    advertise           pay taxes
    incur costs         meet a payroll
    make plans          dance to Wall Street


5
    So what do we mean by a “Business Plan”
                 for a Section?




6
                     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

7
                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.


8
    “Weather today in the metro area will be sunny to
      partly cloudy, with chance of rain.”




9
              Elements of any Business
              Plan



     1- Description of the Business
     2- Marketing of the Business
     3- Resources for the Business
     4- Financial Management




10
                 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)?

12
                  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?



13
                         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.


14
                           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.


15
     And things will change...




16
               2- Marketing the Business


     a. Market Needs
     b. Competitors
     c. Competitive Edge
     d. Advertising/Promotion




17
                       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?
18
                    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?


19
                   c. Competitive Edge


     • Technology
     • Shared professional interests
     • Pricing
     • “Package” Offering
     • Communications capability




20
                D. Advertising/Promotion


     Newsletter
     Perennial favorite, but can it be better?
     Direct contact
     Invite someone directly
     Paid ads
     Invite the public to something interesting




21
                 3- Resources for the Business


     a. Management Team
     b. Facilities & Equipment
     c. Location (s)/ Accessibility
     d. Administrative/ Legal




22
                      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




23
               b. Facilities and Equipment


     Minimum essential, but adequate

     Cost a consideration

     A-V eqpt can be a good investment




24
                  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
25
                    d. Administrative/Legal


     • Licenses/Permits/Franchise Agreements
     • Insurance
     • Professional Fees (Accounting/Legal)
     • Patents/Copyrights/Trademarks
     • Supplies

     Call your Regional VP, Field Office, or HQ


26
                 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

27

				
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