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1.
2.
3.
4.
5.
6.
To relate the personal and professional
challenges of running a business.
To demonstrate knowledge of the key features
constructed in a business plan.
To design entrepreneurial research analysis
tools.
To explain organizational structures available
to an entrepreneur.
To distinguish the various logistical
components of starting a small business.
To discover help resources for small
businesses.
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• Begins with answering one primary
question:
– Do I have what it takes?
• Involves planning, organization and
flexibility
• Can be costly and risky
• Brings many rewards and a sense of
accomplishment
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• Requirements include:
– self-motivation: you will ultimately be the person
responsible and accountable for project
development, time management and oversight of
the creation of your business
– tough decisions: you will need to make timely
critical business decisions, especially in the
planning and start-up phase
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– organization: the key to developing and
running a business
– drive: you cannot develop a business
overnight; you will need flexibility and
stamina
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• Consider the following:
– family life: how important is it to you; prepare
yourself for twelve hour workdays six to seven
days a week
– finances: to make money you have to spend
money
– support: do you have a good support group to
encourage you on your new endeavor;
Starting a business has many challenges and
you will be challenged many times, you will
need a support system to help you
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• Is crucial for success
• Identifies your strengths
and available opportunities
• Develops important
aspects of your business
– mission: a clear broad
statement which
describes the purpose of
the organization
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– goals: general statement of what
needs to be achieved and
accomplished to achieve the
mission
– objectives: specific, time-sensitive
accomplishment used to measure
the progress towards achieving
goals and the mission statement
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• “To be, and be recognized as, the leader in
quality, integrity and performance for
deployed systems, engineering and
mission operations for the U.S.
government.”
–Lockheed Martin
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• “To sustain profitable growth by
providing the best customer
experience and dealer support.”
– Toyota Company
• “Bringing exceptional packaged
entertainment to communities by
being the best retailer of new, used
and rental entertainment.”
–Hasting Entertainment
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• "Target is committed to the pursuit of
profitable and sustainable growth,
consistent with our unwavering dedication
to the social, environmental and economic
well-being of the global community in
which our guests, team members and
shareholders live and work..“
– Target
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Goal
Objective
To be recognized as one of the top To exceed the revenues of each
four companies in our industry.
firm in 10 years.
To bring better technology to our
customers.
To increase our brand recognition.
To expand our business into the
western region of the US.
To develop a new iPhone within
the next year incorporating GPS
navigation.
To market a new cutting edge
commercial during each quarter of
the year.
To open four stores in the first
quarter, three stores in the second
and third quarters and two stores in
the fourth quarter.
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• Includes five key elements:
– market analysis
– organization & management
– marketing & sales
– service or product line
– financials
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• Illustrates extensive knowledge of the
industry
• Describes the current condition of the
industry and forecast where the industry
is moving in the next three to five years
• Identifies a target market
• Summarizes market tests conducted
• Includes a competitive analysis
• Explains any regulatory restrictions
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Market
Analysis
• Provides background information on
the industry, such as:
– size of the industry
– growth rate (date back 10 years
and project the next 3 to 5 years)
– customer base within the industry
(i.e., government, private, nonprofit)
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Market
Analysis
• Describes for whom you are providing
services
• Should be narrow, focused and manageable
• May lead to failure if too many customer
bases are included
• Identifies the needs of customer base
• Assesses the size of the market and projected
growth
• Evaluates the portion of the market the
business will obtain
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Market
Analysis
• Describe potential customers
contacted and their willingness to
pledge their business
• Discuss any focus group feedback
• Evaluate potential customers
willingness to participate in your
products at varying prices
– which price is the best?
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Market
Analysis
• Include:
– focus groups: soliciting individuals to
consume your product and provide
proactive feedback
– surveys: questionnaire asking various
questions about peoples’ interest in your
product
– networking: engaging with potential
customers
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Market
Analysis
• Are a quick and easy way to get
feedback
• Can be conducted in larger groups
• Enable the facilitator to receive
emotional feedback
• Should avoid groupthink
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Market
Analysis
• Explains the phenomenon of a dominant
individual leading the group and silencing
any opposition of other viewpoints
• Demonstrates the desire for individuals to
want to get along and avoid conflict and
not critically analyze ideas, in an effort to
reach a consensus
• Does not allow a representative sample
– i.e., the opinions of all members of the group
are not taken into consideration
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Market
Analysis
• Begins with an experienced facilitator
• Calls for a member of the group being
assigned the role of devils advocate
• Demands multiple focus group sessions
discussing one product and comparing
responses
Devils Advocate: person who will critically
evaluate and disagree with each and every idea
populated during the group discussion
Facilitator: company representative conducting
the market analysis, the mediator; the person
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who keeps the group on task
Market
Analysis
• Capture a large audience with risks, such
as:
– online surveys capture only those who
can afford the Internet
– phone surveys capture only those who
have a house phone
• Need to exclude biased terms and include
vocabulary understood at a high school
education level
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Market
Analysis
• Should include demographics assisting in
the validation of a representative sample,
for example:
– do not have all males surveying car
products
– do not have all participants from one
geographic area surveying farm
equipment
– do not have people without children
surveying toys
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Market
Analysis
• Identifies potential customers
• Involves taking customers to events such as
lunch, dinner and baseball games, demonstrate or
discuss your product
• Engages the snowball effect, for example
– one potential client gives five names of people
who might be interested
– each of the five additional contacts gives five
more contacts
• May even find an investor to finance the small
business
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Market
Analysis
• Identifies competitors
• Assesses competitors’ strengths and
weaknesses
• Demonstrates how you plan to
overcome their strengths and take
their weaknesses into account
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Market
Analysis
• Summarize related regulatory restrictions
• Explain how you plan to comply with those
restrictions
• Conclude with governing body
– who makes sure you are following
regulations?
• Environment Development Administration,
Office of Comptroller, Fire Marshall, State
Banking Authority, Federal Drug
Administration
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• Includes five key elements:
– market analysis
– organization & management
– marketing & sales
– service or product line
– financials
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• Presents the structure of the
organization, which includes:
– organizational structure
– ownership information
– management profile
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Organization &
Management
• Demonstrates a clear managerial
structure for each function of the
business
• Has two basics types
– hierarchical
– learning-based
learning-based: formerly known as flat or horizontal
organizational structure
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Organization &
Management
• Include business functions where one is
subordinate to the other
• Adopt the chain-of-command methodology
• Are essential for large organizations
CEO
Vice President
Vice President
(production)
(marketing)
Designer
Writer
Designer
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Organization &
Management
• Do not centralize control
• Allow each function to work together
and are not subordinate to each other
• Promote growth, innovation and
increased knowledge of how the
business functions as a whole
• Work great with small businesses
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Organization &
Management
• Distinguishes the following:
– who has ownership of the
organization
– to what degree does a person have
ownership (percentage)
– each owner’s involvement with the
company
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Organization &
Management
• Identifies managers
• Describes their function within the
organization
• Summarizes their education
• Discusses their prior employment history
• Includes any distinguishing characteristics
– industry recognition
– community involvement
• Shows their salary and additional forms of
compensation
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• Includes five key elements:
– market analysis
– organization & management
– marketing & sales
– service or product line
– financials
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• Discuss how you plan to enter the
industry
• Illustrate a timeline for growing your
business
• Provide scripts for television
advertisements, fliers and newspaper
articles
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• Includes five key elements:
– market analysis
– organization & management
– marketing & sales
– service or product line
– financials
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• Should be the bulk of your business
plan
• Describes the various products you
are selling
• Explains how the product or service
will be produced
• Provides a narrative of why your
target market would buy your product
or utilize your service
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• Includes five key elements:
– market analysis
– organization & management
– marketing & sales
– service or product line
– financials
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• Should provide estimated data, such as:
– how much do you plan to sell?
– what price?
– what will your expenses be?
– profit?
• Compose funding sources, such as:
– grant from Small Business Administration
– loans
• bank
• amount
• maturity: when do you plan to pay this
loan back?
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• Cannot occur until the business plan is
developed
• Are supported by the business plan
• Involve
– naming your business
– finding a location for your business
– buying/leasing equipment
– obtaining licenses and permits
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• Involves more than creativity and marketing
• Requires you to select the form of business
– partnership
– incorporation
– corporation
– limited liability company
• Entails formal registration with the Secretary
of State
• Can require obtaining a domain name on the
World Wide Web
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• Is one of the most important factors in
making your business flourish
• May result in the failure of your small
business startup, even if you planned
accordingly
• With the advice of professional
consulting site locators can increase
the chance of your business being
successful
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• Requires asking the question: “Do I buy or lease
my equipment?”
• Entails the use of a popular tool known as a tchart
• Can have major tax consequences on your
business depending on whether you lease or buy
your equipment
• Needs to be a team decision, involving
accountants, attorneys (e.g., compliance and
regulatory issues involving specific equipment),
purchaser and of course yourself
Pros Cons
t-chart: a listing of the pros and cons of a situation
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1. You have been given startup money to
start your own business selling pet
supplies. Write your mission statement.
2. When conducting a market analysis
you should forecast the next
a. 1 to 3 years
b. 3 to 5 years
c. 5 to 8 years
d. 8 to 10 years
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3. Kyle is composing a business plan for his
new venture. Kyle plans to market and
sell air fresheners. Kyle has identified the
following customer base: women, dog
owners, teenage girls, cleaning industry
and single men. Identify the problem with
his customer base and explain.
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4.
New small businesses should design a
__________ business structure.
a. bureaucratic
b. hierarchical
c. learning-based
d. none of the above
5.
Management profiles do NOT include which of the
following:
a. a list of community relations
b. a description of their function in organization
c. a list of industry relations
d. a description of family
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6. With what office do you register your
business name?
a. Office of Comptroller
b. Secretary of State
c. Small Business Administration
d. Courthouse
7. Circle the appropriate answers.
Site locators can increase/decrease your
ability to promote your business and be
successful.
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8.
You have employed a marketing firm to provide you with a
report about the desirability of one of your products.
Analyze the following results and recommend
improvements, if any.
– Product: Greener Grass Formula
– Women participated: 57%
– Men participated: 43%
–
People who lived in a house: 45%
–
People who lived on a farm: 8%
–
People who lived in an apartment: 47%
– South Carolina Residents: 12%
– New Yorker Residents: 28%
– Georgia Residents: 30%
– Nevada Residents:14%
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– Ohio Residents: 16%
9. Describe groupthink in your own words
and give an example of when you were
in a situation involving groupthink.
10. All of the following are acceptable
prevention techniques to avoid
groupthink ,EXCEPT:
a. trained facilitator
b. personality tests
c. devils advocate
d. comparing responses from multiple
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focus group sessions
• GoHastings.Com. (1996-2004). Retrieved September 30, 2008,
from GoHastings.Com: http://www.gohastings.com/catalog/
• Hitt, Miller and Colella. Organizational Behavior: A Strategic
Approach. Wiley, 2006
• Lockheed Martin. (2008). Retrieved September 30, 2008, from
Lockheed Martin: www.lockheedmartin.com
• Toyota. (2008). Retrieved September 30, 2008, from Toyota:
www.toyota.com
• U.S. Small Business Administration. (n.d.). Retrieved September
30, 2008, from U.S. Small Business Administration: www.sba.gov/
• Verizon. (2008). Retrieved September 30, 2008, from Verizon:
www.verizon.com
• Walmart.com. (2008). Retrieved September 30, 2008, from
Walmart.com: www.walmart.com
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Production Coordinator:
Aaron Carlson
Production Manager:
Dusty Moore
Project Coordinator:
Maggie Bigham
Executive Producers:
Gordon Davis, Ph.D.,
Graphic Designer:
Jeff Lansdell
Ann Adams
© MMIX
CEV Multimedia, Ltd.
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