BUSINESS PLANNING
SCORE
Counselors to America’s Small Business
Sponsored by:
U.S. Small Business Administration
AGENDA
8:45
Registration
9:00
Welcome & SCORE Overview Dave Ward
9:15
SBA Overview
Tammi Bennett
9:30
Business Plan Basics
Dave Ward
10:15 Break
10:30 Sales & Marketing Process
Greg Evershed
12:15
LUNCH
Afternoon Agenda
1:30
Financial Overview
2:30
The Business, Management, References Dave Ward
3:30
Wrap-Up & Adjourn
Presenters:
Tammi Bennett, Greg Evershed,
Larry Elliott & Dave Ward
Larry Elliott
SCORE
OVERVIEW
Dave Ward
SMALL BUSINESS
ADMINISTRATION
OVERVIEW
Tammi Bennett
Business Plan Basics
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
WHAT IS BUSINESS PLANNING
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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
WHY DO IT
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Reality check
Performance tool
Message sender
Motivational tool
Management development tool
Road map
WHAT SHOULD IT PROVIDE
• Evidence of focus
• Understanding of who your customers are
• An appreciation of investor needs
PLANNING
Planning entails analyzing the
business or organization and it’s
environment, as it is today, in order
to create a formal program for
guiding its development and success
tomorrow.
PURPOSE OF PLANNING
To place the business or organization
at a competitive advantage for the
future.
ELEMENTS OF A BUSINESS
PLAN
• Executive Summary
• Company Overview & Description
• Market Analysis & Market & Sales
Strategies
• Financial Plan
• Action Plan
• Supporting Documents
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
SALES AND MARKETING
Greg Evershed
Marketing
• A Marketing Plan Should Identify Your
Target Market By Segment
• Examples – Consumers Age 50 Plus
• Teenagers
• Businesses With Less Than 100 Employees
Marketing Plans
• A Market Plan Defines How you will Reach
Your Target Market. Tools Include:
• Telemarketing
• Direct Mail
• Media Advertising
• Special Events
• Trade Shows
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
Marketing
• Your Market Plan Defines your Selling
Process
• The Sales Plan Represents to Day to Day
Activities Necessary to Accomplish the
Market Plan
Understanding the Sales Process
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The Four Basic Selling Categories are:
Business to Business (B to B)
Business to Consumer (B to C)
Retail
E-Commerce
Each Selling Category has Unique
Attributes
• B to B –buying decision isn’t 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
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
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
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.
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.
Overview of the Sales Process
B to B and sometimes B to C
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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?
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
LUNCH
FINANCIAL OVERVIEW
Larry Elliott
THE BUSINESS,
MANAGEMENT &
REFERENCES
Dave Ward
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!
QUESTIONS
• 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
• 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
THE PROCESS
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Identify your vision
Imagine it
Seek agreement
Make some assumptions
Develop Financial &
Operating plans
• SWOTS
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Strengths
Weaknesses
Opportunities
Threats
• MECAS
– Market
– Environment
– Competitive Assessment
THEN
• SWOT yourself and your business
• Communicate, Communicate,
Communicate
• Start all over again
PREPARING THE PLAN
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Identify your objectives
Outline your plan
Review your outline
Write your plan - gather info, prepare drafts &
write a summary
• Have your plan reviewed
ELEMENTS OF A BUSINESS
PLAN
• Executive Summary
• Company Overview & Description
• Market Analysis & Market & Sales
Strategies
• Financial Plan
• Action Plan
• Supporting Documents
EXECUTIVE SUMMARY
• Most important section of your plan
• A concise overview of the entire plan
• Last section you write
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
management’s future
plans
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
PLANNING DOES NOT
GUARANTEE SUCCESS BUT
IT GOES A LONG WAY
TOWARD BETTERING YOUR
CHANCES!!
NOAH DIDN’T WAIT UNTIL
IT STARTED RAINING
BEFORE HE BUILT THE ARK
Planning Pays Off
REFERENCES
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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