PLANNING 101: PlANNING AND 8 PRINCIPES OF SUCCESS
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1 SMART SMALL BUSINESS SEMINARS PLANNING 101: PlANNING AND 8 PRINCIPES OF SUCCESS Serving Canadian Entrepreneurs. Registering their businesses and government accounts. Helping them protect their Intellectual Property. Providing services to manage their books and grow their internet business. All at low costs to help the small business.
2 WELCOME AND INTRODUCTIONS
3 What We Promised Why planning and how the pros do it Why businesses and plans often fail The foundation for a great plan What to do when its not working Our 8 Principles Start-Up Success
4 Your Bottom Line Plan to accomplish YOUR BOTTOM LINE Lifestyle, more income, work for yourself? Have a great idea / want change the world? Fine but know the practical realities: Financial realities plan and budget Lifestyle realities vs. employment
5 Business Plan Definition A description of the business, a set of business goals, the reasons why they are attainable, and the plan for reaching those goals.
6 Which Is More Important? 1. Building a Great Plan, or 2. Executing The Plan Answer: BOTH
7 Q: Why Do You Need A Plan?
8 A Map?
9 You Also Need GPS
10 You Need GPS Map is your Plan: laser focus on: Market, segments and needs Products / services that uniquely satisfy Marketing and sales that uniquely reaches / motivates Operation that profitably manages it all GPS is your Entrepreneurial skill! Detailed aspects of the route Re-routes when you take wrong-turns
11 THE PLAN
12 No One Plan Format Works Your business is unique. your plan must be too TOC Opinions Scope Sales Projections 5 year forecast Rationale Research Focus Proof-of-concept Growth stages Who is the reader? You: what do you want to see Investors, bank, staff
13 Plan Table Of Contents Summary = The Rationale (Business Case) Market Situation (Research) Competitive Strategy and Implementation Products and Services Marketing Sales Operations Management Financial
14 Market Research Market Research Customer Target Market What is your market? What they currently buy and how? What are the prices and levels? What do they need or want? What is missing = gaps = opportunities? Sources?
15 Market Research Market Research Customer Segments Segments are parts of the whole market Discover and describe the segments What characteristics can you uniquely meet How big is each? How easy to penetrate? How profitable is each for you? Sources?
16 Target Market Define It Women s Fashion
17 Segments Sports wear Informal wear Women s Fashion Formal wear
18 Identify Niches Sports wear Informal wear Yoga Tennis Athletic
19 Find Gaps Informal wear Sports wear Yoga Tennis Athletic Wear anywhere Low Priced GAPS
20 Competitive Research Competitive Positioning Based on knowledge and research You can t control it. But understand and monitor At the heart of every decision Who are your competitors Direct and indirect What are they selling and how Offerings, strengths, weaknesses Profiles and Positioning Prioritize the most vulnerable to you
21 Competitors Identify Them Segment A Market Segment B Segment C
22 Competitors - Study Them Competitor B Competitor A Segment A Market Segment B YOU Segment C
23 Opportunities? Small niches that you can uniquely serve Large markets where there is still room or you have unique solutions Gaps in offerings Different price ranges Different sales channels Different value-add or service
24 Products and Services Based on proven opportunities Ensure it is unique Specify every aspect Keep pricing in mind Line extension / up-sell ideas Test thoroughly
25 Products and Services SOLUTIONS to unmet needs Laser Focus on gaps Satisfy, and hopefully delight Work and deliver on the promise Immediate Customer Satisfaction Ideally, your business sells itself No second chance to make a first impression Post purchase dissonance kiss of death.
26 Marketing and Sales Marketing and Sales are merging Really one function on the web or in retail Marketing prepares the customer People are often not involved in the sale Think through the purchasing process If personal selling is involved Sales must be consistent with marketing You must truly understand the sales process
27 Marketing Promotion PR Free marketing Web Site, SEO Advertising and promotions marketing Promotional materials Events, networking exhibiting Packaging Guerrilla marketing: out-think the competition
28 Being popular is the most important thing in the world.
29 But Marketing Is Much More The Classic 4 P s Of Marketing Promotion Product (Service) What is does, how well, how unique, how reliable, Price Price should reflect value. Define the value Competition? Shelf Life? Speed of sales. Deals Consider the price affordability / quantity trade off Place Where / how easily it is available is a key factor It can determine image, perception of value It can impact your control over sales
30 Your Unique Marketing Focus Arriving at a unique focus takes hard work: Looks under all the rocks Exposes you to ideas and alternatives Gives you confidence (and smarts) But Show Me The Money! Every business is different so is the focus Restaurant: location, word mouth, creativity Painter: speed, price, referrals, industry contacts
31 Business Growth Model LEADS TRANSACTIONS Your GOLD MINE. The purpose of marketing Hundreds of ways to generate them. Conversion %. Sales / closing success. Again, so many options Units per sales event. Fries with that? #PER YEAR MARGIN: VIA PRICE OR COST PROFIT Sales events per year. Repeat business is our most profitable business Gross Profit per sale Higher prices. Lower costs. Need volume if small GP Profit after general business expenses.
32 Business Growth Model LEADS % $ 12, $ 15,625 30% $ 18,750 30% $ 18,750 30% $ 18,750 30% $ 18,750 TRANSACTIONS #PER YEAR MARGIN: VIA PRICE OR COST 50% 50% 50% 50% 50% 60% PROFIT $ 6,250 $ 7,813 $ 9,375 $ 14,063 $ 21,094 $ 25,313
33 Operations and Management
34 Operations A big cause of business failure You must run a great operation Usually NOT an Entrepreneurs strength Budgets and financial management Time management and discipline Quality control On-time and on budget Customer service and problem resolution
35 Operations Budget
36 Course Correction You will not accomplish your plan sorry You will have to make course corrections Budgeting and Accounting GPS Basic Forecasts Break-Even Analysis Projected Profit and Loss Projected Cash Flow
37 Rationale or Business Case Remember this as the FIRST section of the PLAN Investors see 100 s of plans a week! Short list in 90 seconds based on the Summary A clear, robust and durable market need A demonstrated unique solution (or?) High barriers to entry (?) Proven, or compelling indicators of profitability Forecasts, budgets etc. that are realistic.
38 Why Businesses Fail Didn t Know Our 8 Principles 1. Started for the wrong reasons. 2. Poor / unrealistic business model 3. Poor / no market research 4. Lack of planning 5. Poor Management - Operations 6. Insufficient Capital 7. Poor Location 8. No Website
39 8 Principles Of Start-Up Success 1. Visualise Every Aspect Of The Business 2. Do Your Research 3. Test The Elevator Pitch Everywhere 4. Build And Re-build The Key Elements 5. Document The Business Plan 6. Test Every Step Of Launch 7. Focus On Critical Success Factors 8. Get Outside Support On Your Team
40 SMART SMALL BUSINESS SEMINARS We hope this supporting information to Web 101 was helpful to you. Our Seminars PROFITS 101 TAXES 101 If you have any questions about the seminar, our services and special offers for small businesses, please Click here START 101 PLANNING 101 PROTECT 101 WEB 101 Serving Canadian Entrepreneurs. Registering their businesses and government accounts. Helping them protect their Intellectual Property. Providing services to manage their books and grow their internet business. All at low costs to help the small business.
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Strategic planning serves a variety of purposes in organisations, including to: Clearly define the purpose of the organisation and to establish realistic goals and objectives consistent with the mission
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