Click to edit Master title style Putting It All Together Assessing the Feasibility of Your Business

Purpose of Session To review elements of the business plan and how they relate to feasibility – Business concept – Marketing – Finance – Resources To discuss next steps: developing your business plan, applying for a loan

Session 1: Getting Started Why do you want to go into business for yourself? Are you suited to be an entrepreneur? Have you identified a business concept? SYOSB-B 3

Getting Started Passion Skills Money Your concept might be a good idea, but may not be a good business idea. If you have all of these components, move ahead…

Your Business Concept Thorough description of your product or service, then: – To Whom – Where – When – How The better you understand your business, the more successful you will be.

Session 2: Marketing What is Marketing Conducting Market Research Analyzing The Market Environment Selecting Your Target Market Market Positioning Designing Products & Services Pricing Products & Services Promoting Products & Services Creating Market Plan

Marketing Do you have a product or service that is sustainable? – Will you be developing other products or enhancing this product? Is the market adequate to support your business? – Is your target market large enough? – If you are doing an online business, do you have a marketing strategy? – Can you differentiate yourself from the competition?

Marketing Plan Your marketing plan should integrate with your financials – If you project income based on a number of clients served, your marketing plan should reflect how you will recruit them. – Your marketing goals should equate with your financial goals – What is your message, how will you engage your customers

9 Session 3: Finances Numbers - The Language Of Business All of the activities of your business are expressed in numbers Why cash management is necessary? – For cash forecasting – For cash control – For expenditure control WHEN YOU’RE OUT OF CASH YOU’RE OUT OF BUSINESS

10 What is Cash Management Understanding cash and its effect on business, including – Sources of Cash – Uses of Cash – Bank balance – Cash flow projection – Other financial projections Profit & Loss Statement Balance Sheet Financial Ratios

11 Sources of Cash: Only Three Sources Equity - from investors including yourself Debt - from banks, vendors and others Income from operations (not available for start-ups)

Finance Financing the business – You have enough savings to carry you through the first few months to break even. – Or you are able to borrow adequate funds to sustain the business through start-up. A primary reason new business fail, is lack of capital.

Your Financial Plan Your cash flow projections will tell you how much cash you must raise to launch your business. Be as accurate as possible Add 10-15% to cover contingencies Monitoring your money is essential for success.

Session 4: Managing Your Time and Resources Manage your time more effectively Use of smart phone, online tools such as Trello, Evernote Assess when to hire outside professionals The best hiring practices Ideas for training employees Strategies for managing employees

Managing Time and Resourcees Management team: You need a strong team to run the business – Experience in the business/industry is vital to success. – If you are a sole proprietor, you should have a family member or other person who can take over if you are disabled or incapacitated, – When to hire employees-FT, PT, etc. – Use mentors or advisors where you need help.

Managing Your Time & Resources If you intend to hire employees, – Job descriptions – Handbook – Don’t hire until you can pay for them

Is Your Business Feasible? Is your business concept robust? Does your market research show that you can be competitive? Do your financials show a positive cash flow in a reasonable timeframe? Do you have a strong management team to support your efforts? If so, Congratulations…You are set for SUCCESS

Next Steps If you are already in business, and have carried through on each session, it’s time to write up your strategic plan for the future. – What changes will you make, who will take the lead, when will they occur, what resources are needed (SMART) If you are starting a new business, your plan should include – Detailed business concept – Description of the management team – Marketing plan – Financial plan Operation plan (for your own use) Make it short 6-10 pages, clear, concise, and comprehensive.

Next Steps (Cont.) Here is what you’ll need for a bank loan application: Cover letter of introduction Summary of financial needs Short business plan (Executive summary may be adequate) Business financial statements (3 years) Business tax returns (3 years) Projected cash flow statement (12 months) Collateral (both business and personal) Personal tax returns (3 years) Personal financial statements Résumé

Next Steps (Cont.) When reviewing your loan application, lenders look for good credit, a feasible business plan, adequate owner equity and sufficient collateral. Perhaps most important, they look for management expertise and commitment.

Next Steps (Cont.) For help in developing your strategic or business plan: – Cleveland SCORE office – 1350 Euclid Avenue, Suite 216 – Cleveland, OH – – –