BUSINESS PLANNING

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BUSINESS PLANNING

• SCORE
• Counselors to Americas Small Business
• Sponsored by
• U.S. Small Business Administration

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AGENDA845 Registration 900 Welcome
SCORE Overview Dave Ward915 SBA Overview
Tammi Bennett930 Business Plan Basics
Dave Ward1015 Break1030 Sales
Marketing Process Greg
Evershed
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1215 LUNCH
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Afternoon Agenda130 Financial
Overview Larry
Elliott230 The Business, Management,
References Dave Ward330 Wrap-Up
AdjournPresenters Tammi Bennett, Greg
Evershed, Larry Elliott
Dave Ward
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SCOREOVERVIEWDave Ward
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SMALL BUSINESSADMINISTRATIONOVERVIEWTammi
Bennett
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Business Plan Basics
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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

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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

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WHY DO IT

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

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WHAT SHOULD IT PROVIDE

• Evidence of focus
• Understanding of who your customers are
• An appreciation of investor needs

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PLANNING

• Planning entails analyzing the business or
  organization and its environment, as it is
  today, in order to create a formal program for
  guiding its development and success tomorrow.

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PURPOSE OF PLANNING

• To place the business or organization at a
  competitive advantage for the future.

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ELEMENTS OF A BUSINESS PLAN

• Executive Summary
• Company Overview Description
• Market Analysis Market Sales Strategies
• Financial Plan
• Action Plan
• Supporting Documents

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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

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SALES AND MARKETING

• Greg Evershed

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Marketing

• A Marketing Plan Should Identify Your Target
  Market By Segment
• Examples Consumers Age 50 Plus
• Teenagers
• Businesses With Less Than 100 Employees

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Marketing Plans

• A Market Plan Defines How you will Reach Your
  Target Market. Tools Include
• Telemarketing
• Direct Mail
• Media Advertising
• Special Events
• Trade Shows

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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

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Marketing

• Your Market Plan Defines your Selling Process
• The Sales Plan Represents to Day to Day
  Activities Necessary to Accomplish the Market Plan

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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

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Each Selling Category has Unique Attributes

• B to B buying decision isnt 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

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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

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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

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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.

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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.

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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?

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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

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LUNCH
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FINANCIAL OVERVIEW

• Larry Elliott

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THE BUSINESS, MANAGEMENT REFERENCES

• Dave Ward

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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!

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QUESTIONS

• 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

• 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

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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

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THEN

• SWOT yourself and your business
• Communicate, Communicate, Communicate
• Start all over again

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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

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ELEMENTS OF A BUSINESS PLAN

• Executive Summary
• Company Overview Description
• Market Analysis Market Sales Strategies
• Financial Plan
• Action Plan
• Supporting Documents

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EXECUTIVE SUMMARY

• Most important section of your plan
• A concise overview of the entire plan
• Last section you write

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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 managements future plans

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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

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PLANNING DOES NOT GUARANTEE SUCCESS BUT IT GOES A
LONG WAY TOWARD BETTERING YOUR CHANCES!!
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NOAH DIDNT WAIT UNTIL IT STARTED RAINING BEFORE
HE BUILT THE ARKPlanning Pays Off
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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