Lecture 6 Business Planning, Business Naming, and Products/Services Dr. Hatem Elaydi ECOM 5368 Engineering Management (Entrepreneurship & ework) Islamic University of Gaza Sep 17, 2016

Business planning Planning: laying out a future course of actions. Planning involves predicting the future of the business venture up to the time of “opening doors” for business Selecting the actual start date requires thorough planning. Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Steps to plan a course of action Identify the problem Collect and classify information Distinguish different courses of action Select a course of action Evaluate the outcomes Develop a planning schedule Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Developing a planning schedule On daily basis, review and add all the tasks involved in bringing the business venture to an opening date of operation. List all these tasks in any order. From the list of tasks, analyze the sequence for completing the tasks. (Place in logical order - prioritize) Identify who will perform these tasks and When. Develop the bar graph schedule sheet. Record progress Review and alter planned tasks Develop a regular planning procedure Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Name your Business Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Characteristics of a business name Distinctive Describe your business Create a mental image Easy to recognize Different from competitors Few words Indicate marketing strategy Reflect desired image Names to avoid Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Procedures for selecting a business name Library use of telephone directories from other areas Review business cards developed Business directories Chamber of commerce membership lists Trade journals Newspapers from other areas Internet Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Exercise Selection of a business name Name Selected Rationale Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Define your product or service

They go out to the market to buy mouthwash A person does not go out to the market for Cetylpyridium chloride, domenophen bromide and S.D. Alcohol 38F in a base of water, glycerine, polysorbate 80, sodium saccharin, benzoic acid, flavor and F D & C blue dye number one. They go out to the market to buy mouthwash Picture of results: clean breath, clean taste, to be more attractive to people, to enhance their self-esteem. Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Elements of product worksheet Claim: is a proposal that has yet to be proved in your customer’s mind. Create interest Fact: is a feature of your product or service. (formula, price, guarantee) Benefit: appeal to customer’s emotions. (all positive advantages) Evidence: defeat disbelief in your product or service. (photographs, brochures, statistics, testimonials, demonstration, analogies, examples, facts and exhibits). Action: “close the deal” by asking customers to actually purchase your product or service. Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Units of persuasion One claim Two facts One benefit One form of evidence One call for action Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Example Claim: be one of the special people that have clean breath and clean taste in your mouth. Facts: designed for people who want to be more attractive to others, designed for maintaining good oral health. Benefit: to look more attractive to others. Evidence: buy one bottle of mouthwash. Meet your fiends and family. Take a friend out for coffee. Notice how much more attractive you feel and notice how quickly people respond to you. Action: buy one bottle of mouthwash at a special price. You ‘ll see the difference as soon as you start using it. Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Assignment In 50 words or less, describe your product or service. Be detailed and through. Develop a definition of your product or service by filling out two to three product definition worksheets. Do not worry about order or sequence; you are just going for volume at this point. When you have completed this, go back and develop ten units of persuasion in order of the most important first. In paragraph form, using the product definition worksheet as a guide, write a full and complete description of your product or service and include the description in your business plan workbook. Include as part of your description the following information: Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Product description Include as part of your description the following information: Evidence as described in the product definition worksheet Any research and development that has been completed Any elements of ownership like patents, trade secrets, etc. Future development Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship

Dr. Hatem Elaydi, IUG, Fall 2016, Entrepreneurship