Small Business Seminar Business Plan Basics

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Small Business SeminarBusiness Plan Basics
Region 5
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7 Habitsof Highly Effective Start-ups

• Willing and Able to Learn
• Work Effectively with Suppliers and
  Subcontractors
• Watch Competitors and New Entrants
• Positioned Right
• Access to Capital
• Customized Products or Services
• Choose a Growth Industry

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The 3 Ps

• Passion
• Persistence
• Perseverance

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Checklist for Starting a Business

• Determine the Legal Structure
• Register the Business Name
• Obtain Licenses and Permits
• Will you have Employees?
• Register for Federal and State Taxes
• Location and Zoning Issues
• Insurance Requirements
• Utilities availability and cost

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The Business Plan Outline

• Executive Summary
• Business Description
• Industry Analysis
• Competitive Analysis
• Market Description
• Marketing Strategy
• Operations Plan
• Employees Management
• Sources Uses of Funds
• Financial Projections
• Supporting Documents

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Business Plan Mistakes

• Lack of Competitive Assessment
• Unidentified Opportunity
• Disorganized or Unfocused
• No Sustainable Advantage
• Inadequate Market Share
• Unidentified Risks
• No Contingency Plans
• Overstated Strengths
• Unrealistic Projections
• Lack of a Sales Plan
• Under-estimated Needs

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The Business Structure
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The Business Concept

• What is your Product or Service?
• What are the Features and Benefits provided?
• How can you apply Market Research to answer So
  What?
• How Will You Be Different From The Competition?
• Why Will People Buy From You?

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The Business Operation

• Qualifications of the Owner
• Management Experience
• Industry Experience
• Training
• Education
• Employees - Consultants?
• Suppliers / Vendors
• Hours of Operation
• Kind of Space?
• Location - Location - Location

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Regional Business Community
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Competitor Analysis

• Describe Direct and Indirect Competitors
• Perform a SWOT Analysis for each-Identifying
• Strengths
• Weaknesses
• Opportunities
• Threats
• Consider
• Financial Strength
• Name Recognition and Reputation
• Established Channels
• Habit Patterns
• Location Access Traffic Patterns

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Use Market Research to

• Describe The perfect customer
• What does the target customer look like?
• Income
• Age
• Location
• Education
• Spending Patterns
• Gender
• Ethnicity
• Where are they?
• Determine The Size and Location of the Target
  Market
• Is the Overall Market Growing?
• Economic conditions

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Marketing Strategy- Creating and Defining Your
Niche

• How Will You Position the Product?
• Premium Quality Leader
• Low Cost Substitute
• Full Service Alternative
• How Will You Price?
• Is The Product Cyclical or Seasonal?
• Are There New Uses?
• Is It Important?
• Is It Discretionary?
• Do You Have a Unique Message?
• How Will You Blend
• Advertising
• Publicity
• Promotion

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Financing a Business
Getting the Money is a Measure of

• Risk of default and risk of loss
• Ability to repay the debt
• From cash-flow created by the business operations
• From the liquidation of the collateral in the
  event of default
• From personal net worth from owners personal
  guarantee

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Credit Considerations

• Character
• Credit score
• Cash Flow
• Projections
• Collateral
• Capital
• Conditions

• C
• C
• C
• C
• C

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Causes of Business Failure

• Inadequate Planning
• Insufficient Capital
• Inexperienced Management
• Wrong Location
• Inventory Mismanagement
• Capital Tied Up In Fixed Assets
• Poor Credit Practices
• Unplanned Expansion
• Poor Work Practices Regarding Money
• Inadequate Record-keeping
• Not Using the Professionals you Need

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Biz Resource Centers