SCORE Tailored Seminars & Workshops: An Overview

1. SCORE Tailored Seminars & Workshops: An Overview Manage and Grow Your Existing Business V.20100601

2. Special Thanks To Our Sponsors

3. Classroom Safety – Argosy U Emergency Exits Restrooms Please do not wander around the building! You are HERE

4. “Bright” ideas worth your consideration Workshop Agenda • Introductions • Strategic vs. Operational Time Management • Updating Business Plans • Dealing with Continual Change • Accounting Information Management • Putting the Internet to Work for Your Business

5. About SCORE Successful and experienced executives acting as volunteers. National web site, www.score.org, provides useful information and resources for small business. Seminars and workshops Free Mentoring One-on-one Email mentoring Contact www.score-suncoast.org

6. Mentoring Locations SCORE Office 2801 Fruitville Road Suite 280 Manatee Chamber of Commerce Downtown and Lakewood Ranch Sarasota Chamber of Commerce Venice Chamber of Commerce Your Place of Business Location convenient to you and your mentor

7. Go Around the Room Tell everyone: Your Name What type of business you are currently operating What you hope to get our of this session 60 seconds! Introductions

8. Reality: Business Success Percent of New Businesses >1 Employee after Four Years • Lack of planning • Insufficient capitalization • at start-up • Mismanagement of • cash flow • 4. Improper pricing (Source: SBA)

9. Find A Need And Fill It Common Sense Business Starting, Operating and Growing a Small Business by Steve Gottry FANAFI PRINCIPLE? Frustrating Realities for Entrepreneurs: 1. Profitable Ideas: Copied by competitors – just a matter of time 2. Technology Innovation:Profitable today – possibly worthless tomorrow 3. Minimum Entry Barriers: Competitors will pop-up like weeds

10. Strategic and Operational Tasks

11. Strategic and Operational Tasks How is your time currently allocated? Do you spend all your time working IN the business? Do you spend any time working ON the business?

12. Large Business Small Business Strategic vs. Operational Tasks Cruise Line Management vs. Ship Captain Analogy Strategic Operational • Accommodations • Baggage Handling • Crew Evaluations • Dining Room Service • Evacuation • Meal Preparation • Navigation • Room Service • Passenger Safety • Passenger Satisfaction • Refueling • Weather Changes • Advertising • Bookings • Competition • Crew Hiring • Customs • Destinations • Entertainment Booking • Menu Planning • Port of Calls • Safety • Ship Registrations • Training Performed on ship Not performed on ship

13. Strategic Examples • Conceptualize: (Vision)- Product & Service, Customers, Costs, etc. • Organize: (Structure)- Who will do what and when? • Implement: (Process) - Space, Hiring, Professional Support • Motivate: (Commitments)- Clear statements of what needs to be done • Analyze:(Information)- Market Opportunities • Adapt: (Changes For Survival)- Anticipate continual change NOT Daily Tasks “FANAFI”

14. Operational Examples • Customer Relationships- Products, Services & Support • Time Management - Running Business & Fixing Problems • Price & Cost Controls- Competition & Supplier / Vendors • Employee Relations- Satisfaction & Turnover • Record Keeping- Input to Accounting Processes • Marketing & Advertising - Prospective Customers Daily Tasks

15. Keeping a Time Log – Measure Activities Task/Accomplishment S O X 8:00 – 8:30 New Product Planning Meeting X Meeting Continued 8:30 – 9:00 X ABC Customer Complaint 9:00 – 9:30 9:30 – 10:00 10:00 – 10:30 1. Any time left to refresh your mind? 10:30 – 11:00 11:00 – 11:30 11:30 – 12:00 2. Any time left to dream about the future? 12:00 – 12:30 12:30 – 1:00 1:00 – 1:30 1:30 – 2:00 2:00 – 2:30 2:30 – 3:00 3:00 – 3:30 3:30 – 4:00 4:00 – 4:30 4:30 – 5:00

16. Better Balance- Exercise 1 List 5 Strategic things to want to do more and how you will accomplish the change Prioritize 1(now) – 5 (within 6 months) List 5 Operational things to want to do less. . . Prioritize 1(now) – 5 (within 6 months) 10 minutes – 5 minutes to share

17. Business Plan Updates

18. Business Plan Status Is your Business Plan still relevant? How often do you review it? Do your employees understand it?

19. Table of Contents (Easy Reference) Executive Summary Company Description and Mission Products and Services Marketing Plan Operational Plan Management and Organization Personal Financial Statement Start-up Expenses & Capitalization Financial Plan Appendices Business Plan Outline (Typical)

20. EXPERIENCE MEASUREMENTS Updating Your Business Plan Strategy Mission Objectives Critical Goals Operations Initial Action Plans

21. Rethinking Mission Statement • Still reflects changes in business climate? • Still provides guidance to daily decision making? • Still provides a visionary picture of the future? Is current economic condition and competitivesituation consistent with originally stated mission?

22. Operational Mission Business Plan Evolving Mission Statement Original Mission Statement Time • Brief • Generalized • Communications • Processes • Bank Loans • Relevant Details • Gain From Experience • Competitive Pressures • Changes to Processes • Expanded Business Plan

23. Goals Need Updating? Evolving Business Goals Original Business Goals Time Dreams & Ideas Many Unknowns Designed to Get Business Started • More Realistic • Operational Experience • Successes & Failures • Reacting to Competitive Pressures & Climate

24. Specific Measurable Attainable Relevant Trackable Updating Business Goals Effective Goals Contain 5 Parameters: Lease 3 new 15 minute parking spaces for “Carry Out”customer use only. Evaluate “carry out” sales over 6 months to determine extent that these new spaces increase sales.

25. “Mini” Goal Example Customer Satisfaction Survey Ten question maximum (include key demographics) No longer than 2 minutes to complete Pilot with associates for feedback & needed changes Finalize Survey and administer for at least 30 days Evaluate results & identify shortcomings----------------------------------------------------------------------------------- Develop approaches to address each shortcoming Insert “temporary” changes into business operations Observe impact on key performance parameters Make promising “high payback” changes permanent Do not assume that continuing operations using same “old” strategies will yield different results.

26. Managing Change in Your Business Assume tomorrow will be different than today

27. May Require a Revised Business Model Change During Turbulent Times Making Profit BreakingEven Time LosingMoney • Phase Back Operations • Close Locations • Reduce Inventory on Hand • Reduce Costs • Eliminate Positions • “Paradigm Shift” Thinking • New Feature Development • New Offerings • New Alliances • Creative Service / Support • Competitive Analysis • Test Market Opportunities

28. Before Change Productivity Increase Return to Previouslevel Implement Change Predictable Stages of Change Persevere with Enthusiasm & Commitment Productivity Manage the change to MINIMIZE the productivity dip and recover quickly! Time Change may look like failure about mid point

29. Create more efficient & predictable processes Improve customer service & satisfaction Improve product or service quality Collect more accurate business information Lower expenses while maintaining quality Identify automation opportunities Change Management Examples

30. Determine assumptions (what needs to be done) Break down “Major Goal” into related mini goals Develop realistic schedule to accomplish Decide “who” will be assigned to do “what” Identify required resources to make it happen Establish milestones (interim successes) Identify potential problem areas (resolve as detected) Monitor progress (don’t expect too much – too soon) Change Management Steps

31. Examples of Changes Improve or Maintain Profits • Introduce New Product or Service • Expand to other locations • Incorporate new technologies • Customer support website capability • Innovative sales / marketing concept • Employee incentive program • Match or beat competitor offering

32. Financial Measures and Performance

33. Sufficient categorization to identify & analyze opportunities • New sources of sales • Repeat customer trends • Inventory & supplier pricing • Expense item increases • Customer buying habits changing Measures of Effectiveness Parameters that delineate “Overall Health” of Business • Where is business now? • Where was business before? • Where is business going in future?

34. Break Even Analysis How many sales do you need to make, at what price, at what costs and in what time period to be profitable? • Example: • Sales Price $10 ea • Variable Cost - $ 5 ea • (Contribution Margin = $ 5 ea) • Fixed Costs $10,000 • Semi Fixed Costs • Influenced by volume but not associated per unit (example - commission tiers, temporary labor, office supplies) • Break Even is about 2,600 units or $26,000 sales rate per period Take periodic snapshots of Measures of Effectiveness - at least Monthly

35. Previous Measurement Current Measurement Accounting Information Management Snapshot Measurements of Key Parameters (Examples) Norm Norm Norm Norm Lo Hi Lo Lo Lo Hi Hi Hi Cost of Goods Sold % New Customers Expenses Sales • Expected • Source • Size • Market Segment • Competition • Repeat • Satisfaction • Advertising • Surveys • Coupons • Vendors • Contractors • Order Size • Inventory • Inflation Factor • Ongoing • Trends • Technologies • Productivity • New Processes

36. Business Measures- Exercise 2 What are the key financial measures you review at least monthly? What additional measures do you think would help you monitor business performance? How will you be able to implement the new measures? 10 minutes – 5 minutes to share

37. QuickBooks Accounting Software • Common Business Transactions • Payments (Vendors & Contractors) • Invoices (Customers) • Accounts Payable • Accounts Receivable • Payroll Checks • Track Expenses • Bank Account Interface Select from Available Featuresto tailor application to your needs

38. Company Sales Tax Purchase Orders Receive Inventory Chart of Accounts Enter Bills Pay Bills Banking Deposits Invoices Payments Statements Write Checks On-Line Banking Pay Employees Payroll Forms Liabilities QuickBooks Home Page Vendors Customers Employees

39. Peachtree Accounting Software Basic, Standard & Advanced Versions • Manage Cash Flow • Invoice Customers • Write Checks or Pay Electronically • Manage Inventory • Track Performance Against Budgets • E-Mail Alerts for Problem Areas • Analyze Business from 125+ Reports

40. Customized Quick Setup Accounting Advertising Automotive Business Services Construction Dentists Education Engineering Farming/Agriculture Food Stores General Contractors Health Services Hotel/Motel Insurance Legal Services Manufacturing Not-For-Profit Printing Services Professional Services Real Estate Repair Services Restaurant Retail Sales/Service Social Services Specialty Contractors Transportation Wholesale Distributors > 75 Business Types Peachtree Functional Structure General Ledger Job Costing Inventory Financial Statements Accounts Payable Accounts Receivable Time and Billing Payroll

41. The Internet and Your Website Easy access for information about your business

42. Do it Yourself – Takes time-you may not want to learnMicrosoft Applications / Hosting Templates / Open Source Software such as Komposer or Blogger Hire a Web Designer / Developer - $$- Many listed - Local Yellow Pages / Google Search Arrange With an Internet Service Provider (ISP)- Bellsouth - EMBARQ- Windstream - FullService- Hosting 24 - Verizon- Basic ISP - DotEasy - Etc. Small Business Total Solution- Yahoo (Example Shown) Establishing a Website

43. Search for a Web Designer/Developer

44. Descriptive & Visually Appealing- Catches eye and interest without delay Loads Quickly - No large photos or multimedia on Home Page Contact Information Easy to Find-Button click to name, locations and maps Frequently Updated- Improved Search Engine attention and hits User Interaction Provisions- Detailed information, surveys, e-mail, phone Website Essentials for Effectiveness

45. Marguerite Barnett - www.mandalamedspa.com Lori Whittle - www.balancebasics.net Patricia Persson – www.hobbyhallprotocol.comCraig Berberich – www.leaogear.com Rachel Van Atta - www.thehivestore.com Manasota SCORE Client Websiteswww.thetranslationlink.net (Alina Mugford)

46. Attracting Customer Traffic to Website Your Website • Business Cards • Brochures • Descriptive Domain Name • Advertisements in Publications • Trade Links (Related Businesses) • Submit to Web Directories • Short Articles • Presentations • Search Engine Optimization (SEO) • Pay for Click Home Page 1 Page 2 Page 2a • Services/Products • Instructions • Specifications • Support • Menus/Prices • Testimonials • Q & A • Contacts

47. Satisfies visitor’s keyword or link expectations Loads and displays quickly Easy process to obtain more information Frequently updated with new & exciting information Provides visitor interaction - Pictures / Demos - Q & A - Coupons, Contests, Games? - Feedback & questionnaires Important Website Characteristics

48. Selling On The Internet Start-up costs Easy to navigate site Tracking customer buying habits Secure site/credit cards 24/7 service Distribution/returns/repairs Use of search engines Links to partners/vendors

49. Yahoo Small Business Hosting Example www.smallbusiness.yahoo.com/webhosting

50. Recent on-line additions to the Marketing channels that businesses should consider Real time updates for potential customers “Broadcast” specials or new offerings to other network members Takes steady effort to keep fresh and current – recipients want to be “connected” to new information Social Networking