Simple Steps for Starting Your Business

1. Simple Stepsfor Starting Your Business Your Business Concept v.20130107

2. Simple Steps for Starting Your Business The SCORE Foundation would like to thank For showing their support of America’s small businesses by sponsoring this series. To learn more about Bank of America, visit: www.bankofamerica.com/smallbusiness/ 2

3. A Special Thanks to Our Local Sponsors 3

4. Classroom Safety – Argosy U Emergency Exits Restrooms Please do not wander around the building! You are HERE 4

5. Classroom Safety–ComCenter Emergency Exits Restrooms Please do not wander around the building! You are HERE 5

6. Simple Steps for Starting Your Business Session 2: YOUR BUSINESS CONCEPT 6

7. Simple Steps Roadmap To Accelerate Your Success Session 1: Start-up Basics PERSONAL MENTORING Decide to Continue Session 2: Business Concept Session 3: Marketing Plan Session 4: Financial Projections Session 5: Funding Sources “GO OR NO GO” DECISION & NEXT STEPS WITH MENTOR 7

8. IntroductionsandHomeworkReview Introductions • Name • Your business idea • Share your vision statement • 60 seconds, please 8

9. SCORE Commitment to YOU Deliver quality information and a quality learning process for the five-part business planning series Provide free, one-on-one mentoring Help get clients to a Go/No-Go decision on their business ideas 9

10. ClientCommitment During this session, fill out the paper request form in your packet for free, one-on-one mentoring. • Be sure to fill in the field at the bottom about your business and the you think you need. • Give it to a SCORE volunteer • A mentor will be assigned to you in 3-5 days Attend the workshop series Do assigned homework Complete a draft of a business feasibility plan (text and financials) All of the above will assist you in reaching a decision. 10

11. Simple Steps for Starting Your Business Start-up Basics Your Business Concept Marketing Plan Financial Projections Funding Sources Testing Your Business Idea a Session 1 a Session 2 Session 3 Session 4 Session 5 11

12. Agenda Business Concept Definition Target Market Characteristics Ann’s Nursery Example Gathering Critical Information - Industry - Customer - Competition Personal Application and Planning Homework 12

13. Benefits of Building a FeasibilityPlanDraft Provides you with the information to help make a Go/No-Go decision for your business idea. Has the core information to create a complete business plan for bankers and investors. Gives you direction to get started. Copy in your handouts! 13

14. Your Business Idea • New product idea? • New service idea? • Purchase an existing business? • Purchase a franchise? • Moving an existing business in a new direction or expanding? • They all have common elements. 14

15. Your Business Idea Defining a Market Need Fulfill a need or solve a problem? Provide unique product or service features and benefits? Create a competitive advantage? Business model New? Buy? Franchise? 15

16. Personal Background Your Experience Skills that fit your idea Personal risk tolerance that fits your idea Work experience in the industry 16

17. Learn About Your Industry • Where to get Information • Description: NAICS • North American Industry Classification System • Profitability: RMA • Risk Management Association – Annual • Statement Studies • Industry Focus: NTPA Directory • National Trade and Professional Association • What to look for • Growth / life cycle • Trends 17

18. Feasibility Planning Maturity The Industry Life Cycle Reinvention Slow decline Rapid Growth Encouraging Rapid decline Discouraging Start-up 18

19. Define Your Target Markets Who do you serve? Type: retailer, consumer etc. Number of Customers / Markets? Income level/ability to pay Demographics Lifestyle Buying Habits 19

20. Other Key Factors Competition • Size • Product/service features Suppliers • Availability • Reliability Business Risk • Product longevity • Legal/environmental 20

21. Ann’s Nursery – Feasibility Plan Ann's Nursery Feasibility Plan examples are used in our workshops and may help you see the types of information that you may need Has a wide range of target market choices Has financials that require fixed assets, accounts receivable, inventory and borrowing Though fictitious, it is realistic and covers the elements necessary for a business 21

22. Ann’s Nursery: Industry Profile 2002 NAICS Definitions 111421 Nursery and Tree Production This U.S. industry comprises establishments primarily engaged in (1) growing nursery products, nursery stock, shrubbery, bulbs, fruit stock, sod, and so forth, under cover or in open fields and/or (2) growing short rotation woody trees with a growth and harvest cycle of 10 years or less for pulp or tree stock. 22

23. Ann’s Nursery: Initial Concept Ideas • In your handouts • Business Idea • Background • Industry Profile • Target Markets • Competition • Suppliers • Risk 23

24. Your Concept: Exercise 1 From what you know now, outline your business concept by element (10 minutes max) WS2 - Exercise 1 and 2 Worksheet- Business Concept Feasibility Plan.doc Pick a partner near you and give an elevator speech (5 minutes max) outlining your business concept 24

25. Stretch Break10 minutes, please 25 120m

26. Collecting Critical Information To understand if your business idea may work, you must gather critical information about your industry, customer and competition. For start-ups, it is impossible to put together a realistic business plan without this data. No professional will loan to or invest in your business without this critical information. 26

27. Collect Industry Data Industry Data Growth Profitability Trends Industry Data Sources NAICS RMA Trade Associations 27

28. Collect Customer Data Know Your Market Demographics Habits and patterns Customer Data Sources Focus groups Reference library Government websites Trade associations 28

29. Less than $15,000 $15,000 - $24,999 $25,000 - $34,9999 $35,000 - $49,999 $50,000 - $74,999 $75,000 - $99,999 $100,000 $140,000 $150,000 and over 779 1,508 1,833 3,047 4,385 2,798 2,152 1,442 Collect Customer Data Income Demographics: Example Income Demographics for Zip Code 17601 Household income Number of households Total households: 17,944 Source: www.census.gov 29

30. Collect Competitor Data Understand What They Offer Price Features Annual Sales Size/profitability Market strategy Competitor Data Sources Competitor Suppliers Trade associations RMA D&B (Dun and Bradstreet) 30

31. Other Market Trends Important Considerations Political Social Environmental Trend Sources Newspapers Periodicals Television Internet Professional Networking 31

32. Local Library Information Reference Area Sarasota Selby Library RMA NAICS Others USF Library NAICS Others Can be a very valuable resource for information and save you a lot of time. The reference librarian can help you navigate library media to obtain the best information possible • Web-based searches for information (e.g., Reference USA) • Reference library tools most commonly used by SCORE clients • Reference books display and typical information 32

33. Business Information Websites • www.census.gov • www.sba.gov • (Small Business Administration) • NAICS.com • www.bea.gov • (Bureau of Economic Analysis) • www.sec.gov/edgar.shtml (Securities and Exchange Commission) • www.bls.gov • (Bureau of Labor and Statistics) • www.score.org • www.bizstats.com 33

34. Collecting Critical Information Ask directly, usually a distant competitor Ask mutual suppliers Ask competitors’ (your future) customers Be a customer Join a trade association Check competitor websites All of these are OK to do. 34

35. Data Collection – Exercise 2 • Develop plan to get info on at least one competitor (5 min): (Back of Exercise 1 document) • Price and pricing strategy / Product features Estimate of annual sales / Marketing strategies • Open discussion – share plans (15 min) • What did you learn from this discussion? • How will you use that knowledge in the future? 35

36. Your Own SCORE Mentor Fill out the paper request form in your packet for free, one-on-one mentoring. • During this session! • Be sure to fill in the field at the bottom about your business and the help that you think you need. • Give it to the SCORE volunteers • A mentor will be assigned in 3-5 days Phone or face-to-face guidance to aid completion of your homework Mentor will be available each week after your workshop Take advantage of this free service to make the best decisions possible. 36

37. Homework • Read WS3–Ann’s Nursery Feasibility Plan and Client Draft (also available as a download) • Complete the exercise worksheets you started today • Finish the first draft of your business concept • Collect key competitive information per plan. This data will be used in the next session. • Price and pricing strategies • Features and benefits • Annual sales • Marketing strategies in reaching target customers • See you at the next session on Marketing. Download documents at: http://www.score-suncoast.org/QSHandouts.aspx 37

38. Help Us, Help You Please fill out the workshop evaluation form Your feedback is important to help us improve our programs! 38

39. Thank You!