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SmartSTART Series Business Concept & Feasability Plan

SmartSTART Series Business Concept & Feasability Plan. Process Roadmap. PERSONAL MENTORING. Session 1: Start-up Basics. Session 2: Business Concept. Session 3: Marketing Plan. Session 4: Financial Projections. Session 5: Funding Sources. “GO OR NO GO” DECISION & NEXT STEPS.

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SmartSTART Series Business Concept & Feasability Plan

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  1. SmartSTART Series Business Concept & Feasability Plan

  2. Process Roadmap PERSONAL MENTORING Session 1: Start-up Basics Session 2: Business Concept Session 3: Marketing Plan Session 4: Financial Projections Session 5: Funding Sources “GO OR NO GO” DECISION & NEXT STEPS

  3. Your SCORE Mentors today: Laszlo G. Bonnyay Jim Clark Larry Tessler Welcome

  4. Who are you? Name Share your vision statement Introductions and Homework Review

  5. Handout: free CD with Sessions II-V 5

  6. Table of Contents

  7. SCORE: 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 or no go” decision on their business ideas Client: Attend the workshop series Do assigned homework Sign up for free, one-on-one mentoring Complete a draft of the feasibility plan (text and financials) Commitments

  8. Agenda • Feasibility Plan Draft • Meet Ann’s Nursery • Industry Profile Data • Customer Data • Competitive Data • Resources for Collecting Data • Legal Forms, Insurance, Regulations, Advisors

  9. Feasibility Plan Draft • Provides you with the information to help make a “go or 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.

  10. Meet Ann’s Nursery • Has a wide range of target market choices. • Financials that require fixed assets, accounts receivable, inventory and borrowing. • Though fictitious, it is realistic and covers the elements necessary for a business.

  11. A Need fulfilled or problem solved Product/service features and benefits Competitive advantage Business model Business Idea

  12. Your Experience: Skills that fit your idea Personal risk tolerance Personal Background

  13. Industry Profile • Defining Your Business • Description: NAICS/NTPA • (The North American Industry • Classification System/National Trade & • Professional Associations) • Growth/life cycle • Profitability: RMA • (Robert Morris Associates) • Trends

  14. 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.

  15. Who do you serve? Type: retailer, consumer etc. Number Income level/ability to pay Demographics Lifestyle Habits Target Markets

  16. Competition size product/service features Suppliers availability reliability Business Risk product longevity legal/environmental Other Key Factors

  17. Pick a partner near you and give an elevator speech (two minutes each) outlining your business concept. Ask each other questions to clarify ideas. Group Exercise

  18. Let’s take a break

  19. Industry Customer Competitor Market Trends Collecting Critical Information

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

  21. Understand What They Offer Price Features/Benefits Size/profitability Market strategy Competitor Data Sources Competitor Suppliers Trade associations RMA D&B Competitor Data

  22. Income Demographics for Zip Code 17601 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 Competitive Data Income Demographics Household income Number of households Total households: 17,944 Source: www.census.gov

  23. Competitive Data Example: Hoovers Source: www.hoovers.com

  24. Competitive Data Example: RMA

  25. Key Data Web Sites • www.census.gov (NAICS) • www.bea.gov • www.sec.gov (EDGAR) • www.bls.gov • www.score.org

  26. Web-based searches for information (e.g., Referenceusa.com) Reference library tools most commonly used by SCORE clients Reference books display and typical information Introducing Your Librarian

  27. Important Considerations Political Social Environmental Trend Sources Newspapers Periodicals Television Internet Other Market Trends

  28. Collecting Critical Information • Ask directly, usually a distant competitor • Ask mutual suppliers • Ask competitors’ (your future) customers • Be a customer • Join a trade association • Local Chambers of Commerce • Check competitor website

  29. Data Collection Exercise • Gather competitive information • Price and pricing strategy • Product features • Estimate of annual sales • Marketing strategies

  30. Legal Forms, Insurance, Regulations, Advisors

  31. Sole proprietorship Easiest Suitable for most start-ups Partnerships Require careful preparation MUST have formal agreement, Limited Liability Company MUST have formal agreement Easy to create and maintain Corporation (C or S) Require more administration Offer limited liability Business Organization Forms

  32. Property Casualty General Liability Errors and Omissions Product Liability Umbrella Liability Worker’s Compensation Employee Group Health Life (Key employee, partners) Business Interruption Insurance

  33. Licenses and approvals Operating license Local regulations Fictitious names Federal and State Labor Laws OSHA ADA Immigration Laws Income Tax Withholding Social Security Payments Sales Tax Collections and Payments GovernmentRegulations www.calgold.ca.gov

  34. Banker Lawyer Accountant Insurance Agent A “Sounding Board” SCORE Mentor Board of Advisors Business Mentor Board of Directors Every Owner Needs Support:

  35. Review • Feasibility plan draft • Meet Ann’s Nursery • Industry profile data • Customer data • Competitive data • Resources for collecting data • Legal Forms, Insurance, Regulations, Advisors

  36. Your Own SCORE Mentor We will assign a mentor to you closest to your home and advise you by e-mail of his name and location.

  37. Homework • Review the business plan for Ann’s Nursery (if you haven’t already). • Finish your Business Concept Feasibility Plan(s). • Collect key competitive information. 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

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