SESSION 7 DEVELOPING YOUR BUSINESS PLAN - 1

SESSION 7: DEVELOPING YOUR BUSINESS PLAN - 1 BUSINESS PLANNING FOR SMALL BUSINESSES COURSE APRIL 2-4, 2007 SESSION OBJECTIVE “Tell Your Story” - How to describe your business and its capabilities and marketing plan OUR BUSINESS PLAN – SO FAR Table of Contents Executive Summary: Summary of Key Points Company Overview: Company description; nature of business; Mission and Vision statements; values; products/services ;uniqueness; new business opportunities Business Environment: Industry Analyses; direct/potential competitors; customer profile: who they are what they want and how they buy Company Description: management team; organization; New/proprietary technology; products/services; operations; marketing potential and competitive advantage Company Strategy: Future “road-map”; “SWOT” Analyses Marketing Plan: reaching prospects; making sales; developing loyal customers. Financial Review: Current and Future Financial Performance; income statements; balance sheets; cash flow statement Action Plan: Steps in implementation Appendices: Supporting detailed information: analyses; reports; legal docs; product specs. etc WHO ARE YOU?  When explaining “What you do?”  Always be prepared to tell people what you do getting to the point quickly  Give clear description of Products/Services Describe who you sell to Outline key customer benefits   Source: Tiffany/Peterson, “Business Plans For Dummies” PRODUCT/SERVICE DESCRIPTION CHECKLIST Your “Elevator” Speech        Introduce yourself/business in a way that wants people to know more Keep it simple – explain your business in “layman‟” terms Describe your products/services and the benefits they deliver Define the market you serve Set yourself apart by highlighting your competitive advantage(s) Generate interest promote questions Begin relationships Your “Elevator” Speech – Don‟ts  Don‟t  use (dull) generic intros “I sell insurance”  Don‟t dive into sales pitch – you‟re not selling you‟re presenting Elevator Speeches I‟m a health-information specialist. I produce a world class newsletter, send e-mail updates, and establish client relationships in an effort to support health and wellness for people 50 and older. Working with individuals, HMOs, physicians and health and fitness centers, my business is a leading player in helping people maintain healthy lifestyles by providing summaries of medical advances and practical lifestyle advice, as well as access to leading medical professionals. Elevator Speeches Our business translates medical breakthroughs into people language for the fast-growing, never grow old 50-plus age group. Basically, we shrink the latest medical findings into news capsules that we feature in a monthly newsletter. Paid subscribers include HMOs, clinics and fitness centers – plus 15,000 individuals who receive target e-mails addressing specific health conditions. Since our launch in 2003, we‟ve won endorsements from medical groups and advertising commitments from more than 60 marketers who value the opportunity to reach our clientele of health-conscious older Americans. Elevator Speeches I‟m a health-information specialist. I produce a world class newsletter, send e-mail updates, and establish client relationships in an effort to support health and wellness for people 50 and older. Working with individuals, HMOs, physicians and health and fitness centers, my business is a leading player in helping people maintain healthy lifestyles by providing summaries of medical advances and practical lifestyle advice, as well as access to leading medical professionals. Our business translates medical breakthroughs into people language for the fastgrowing, never grow old 50plus age group. Basically, we shrink the latest medical findings into news capsules that we feature in a monthly newsletter. Paid subscribers include HMOs, clinics and fitness centers – plus 15,000 individuals who receive target e-mails addressing specific health conditions. Since our launch in 2003, we‟ve won endorsements from medical groups and advertising commitments from more than 60 marketers who value the opportunity to reach our clientele of health-conscious older Americans. ELEVATOR SPEECH-PLANNING QUESTIONNAIRE 1. What Business are you in? 2. What is your Product or Service? 3. Who is your target customer? 4. What benefits do your customers, or what problems do you help them solve? 5. What sets your business apart? 6. Who are your competitors and how is your business different or better? COMPANY “ASSETS” - YOUR BUSINESS CAPABILITIES and development  Operations  Marketing  Distribution and delivery  Customer Service  Management  Organization  Financial Condition  Research Business Capabilities – Research and Development Not exclusive to big technology or manufacturing companies – all companies need to assess/research/track competitive arena R and D – Tracking the Competitive Arena trade shows  Take technology training courses  Complete a certification program  Update computer skills  Read Trade Journals  Join an industry group  Enlarge your business ”library”  Use internet searches  Attend Business Plan – R and D section  Your  plan should address:     Importance of R and D to your competitive advantage Describe, concisely current R and D capabilities Outline your next year‟s R and D agenda Detail next year‟s planned R and D expenditures Your long term R and D goals Business Capabilities - Operations  Locations  Equipment  Labor  Process OPERATIONS PLANNING SURVEY LOCATION OPERATIONS PLANNING SURVEY EQUIPMENT OPERATIONS PLANNING SURVEY - LABOR OPERATIONS PLANNING SURVEY PROCESS BUSINESS CAPABILITIES – DISTRIBUTION AND DELIVERY SURVEY BUSINESS CAPABILITIES – MANAGEMENT TEAM MEMBER PROFILE Business Capabilities – Organization Types - 1   The Pack: One boss – everyone else is equal and have skills to do most jobs  Pros: Simple, Flexible, allows good teamwork (good for small businesses)  Cons: When company grows, “top dog” cannot easily track everyone, not everyone may have sufficient skills for every job, compromising quality and efficiency Form Follows Function: Divide people into groups on the functions they perform  Pros: People do jobs they do best and knows their responsibilities - (good for medium-sized businesses)  Cons: Needs good communications from above to avoid functional hierarchies developing that work well individually (little boxes) but do not meet organizations strategic goals and objectives Business Capabilities – Organization Types - 2   Divide and Conquer: Used where there are a number of product/service lines – separate divisions are set up or Strategic business Units (SBUs)  Pros: Allows SBUs to focus on „real” business – SBU leaders focus on their own specific customers, competitors and strategic issues  Cons: Divisions may end up competing for the same customer. May unnecessarily duplicate overhead costs, may lead to inefficiencies Matrix: Everyone has multiple bosses and does more than one job.  Pros: Fosters flexibility by pooling “talent/resources” Organizations can often respond quickly to changes in business environment  Cons: Managing employees can be difficult – employees may feel “pulled in too many directions. Can cause confusion about business priorities Business Plan – Marketing Plan  What‟s the difference? Business Plan sells the company The Marketing Plan tells how you plan to sell your products/services THE MARKETING PROCESS Customer, Product, Competitor research Customer Service Product development Pricing Sales Advertizing, Promotions and Public relations Distribution Packaging and Labels Marketing Plan – Nuts and Bolts  Market Situation  Customer profiles, changes affecting them , competitors, and business climate       Marketing Goals and Objectives Company Positioning and Branding Statements Your Marketing Strategies Marketing Budget Tactics and Action Plans Long range plans