How to Start a Business and Write a Business Plan

1. How to Start a Business and Write a Business Plan John C. Kelly, PhD

2. CourseMission Statement Each student to write a business plan

3. What is a business? Financial Financial Marketing Operations Wrap Up Topics by Week

4. Instructor Profile • Owned a computer software company for 17 years • Served on company boards • Business consultant • SCORE Volunteer • Angel investor • Degrees in math, computer science, industrial engineering, business administration

5. Student Profiles • Name • Education • Work Experience • Computer Experience • Business Experience • Business Idea • Main concerns/questions • Business description if existing

6. Discussion Question What is a business?

7. What a Business is not? Something to keep you BUSY

8. What a Business is? An organization created to MAKE MONEY!

9. Fundamental Business Formula Profit = Revenue – Expenses Terminology • Profit ~ Earnings ~ Income • Revenue ~ Sales ~ Income

10. Classification of Businesses • Service versus product • Product: retail / wholesale / manufacturing • Consumer versus B-to-B • Vision: independence/wealth/life style/impact • Growth: fast versus slow • Size: large versus small • Capitalization: cash vs debt vs investors • Risk: high versus low • Legal Structure: proprietorship / partnership / corporation • Ownership: single vs multiple - public vs private • Tax Structure: separate or individual

11. Consumer versus B-T-B

12. Discussion Question: What core skills should a business owner have?

13. Core Skills • Professional/Technical (product/service knowledge) • Personal • Business • Operational

14. Personal Skills • Attitude • Time Management • Money Management • Communication Skills (speaking/writing) • Quantitative thinking

15. Business Skills • Accounting/Financial • Sales • Marketing • Personnel Management • Administrative

16. Operational Skills • Organizational • Administrative • Managerial • Computer • Project Management

17. Reasons Businesses Fail • Lack of skills • Lack of planning • Lack of commitment • Lack of focus • Lack of money

18. What is a Business Plan? Explanation of how you will make money

19. SWOT Analysis

20. Discussion Question What makes a good mission statement?

21. Mission Statements • Short • Memorable • Motivational • Focused • Realistic

22. Mission Statement Examples • To enrich women’s lives through an unequalled business opportunity • To organize the world’s information and make it universally accessible and useful • To discover, develop, and deliver novel medicines and vaccines that can make a difference in people's lives. • To be the most essential global internet service for consumers and business • To provide innovative, customized promotional products for corporate America, delivering the highest quality product on time – every time. • To help people and businesses throughout the world realize their potential • To maximize the performance of computer systems

23. To enrich women’s lives through an unequalled business opportunity To organize the world’s information and make it universally accessible and useful To discover, develop, and deliver novel medicines and vaccines that can make a difference in people's lives. To be the most essential global internet service for consumers and business To provide innovative, customized promotional products for corporate America, delivering the highest quality product on time – every time. To help people and businesses throughout the world realize their potential To maximize the performance of computer systems Mary Kay Google Merck Yahoo G&G Outfillters Microsoft Datametrics Mission Statements

24. Homework • Business Description • SWOT Analysis • Find an example of a company like yours and analyze its web site • Write a mission statement • Be prepared to share with class