How to Start a Business and Write a Business Plan John C. Kelly, PhD

Course Mission Statement Each student to write a business plan

Topics by Week What is a business? What is a business? Financial Financial Marketing Operations Wrap Up

Instructor Profile Owned a computer software company for 17 years Owned a computer software company for 17 years Served on company boards Served on company boards Business consultant Business consultant SCORE Volunteer SCORE Volunteer Angel investor Angel investor Degrees in math, computer science, industrial engineering, business administration Degrees in math, computer science, industrial engineering, business administration

Student Profiles Name Name Education Education Work Experience Work Experience Computer Experience Computer Experience Business Experience Business Experience Business Idea Business Idea Main concerns/questions Main concerns/questions Business description if existing Business description if existing

Discussion Question What is a business?

What a Business is not? Something to keep you BUSY

What a Business is? An organization created to MAKE MONEY!

Fundamental Business Formula Profit = Revenue – Expenses Terminology Profit ~ Earnings ~ Income Profit ~ Earnings ~ Income Revenue ~ Sales ~ Income Revenue ~ Sales ~ Income

Classification of Businesses Service versus product Service versus product Product: retail / wholesale / manufacturing Product: retail / wholesale / manufacturing Consumer versus B-to-B Consumer versus B-to-B Vision: independence/wealth/life style/impact Vision: independence/wealth/life style/impact Growth: fast versus slow Growth: fast versus slow Size: large versus small Size: large versus small Capitalization: cash vs debt vs investors Capitalization: cash vs debt vs investors Risk: high versus low Risk: high versus low Legal Structure: proprietorship / partnership / corporation Legal Structure: proprietorship / partnership / corporation Ownership: single vs multiple - public vs private Ownership: single vs multiple - public vs private Tax Structure: separate or individual Tax Structure: separate or individual

Consumer versus B-T-B AttributeConsumerBTB Work hours Erratic: nights, WE Normal: 8-5 Profit Margin LowHigh BuyerEmotionalRational DistributionExpensiveCheap Marketing Cost HighLow

Discussion Question: What core skills should a business owner have?

Core Skills Professional/Technical (product/service knowledge) Professional/Technical (product/service knowledge) Personal Personal Business Business Operational Operational

Personal Skills Attitude Attitude Time Management Time Management Money Management Money Management Communication Skills (speaking/writing) Communication Skills (speaking/writing) Quantitative thinking Quantitative thinking

Business Skills Accounting/Financial Accounting/Financial Sales Sales Marketing Marketing Personnel Management Personnel Management Administrative Administrative

Operational Skills Organizational Organizational Administrative Administrative Managerial Managerial Computer Computer Project Management Project Management

Reasons Businesses Fail Lack of skills Lack of skills Lack of planning Lack of planning Lack of commitment Lack of commitment Lack of focus Lack of focus Lack of money Lack of money

What is a Business Plan? Explanation of how you will make money

SWOT Analysis PositiveNegative InternalStrengthsWeaknesses ExternalOpportunitiesThreats

Discussion Question What makes a good mission statement?

Mission Statements Short Short Memorable Memorable Motivational Motivational Focused Focused Realistic Realistic

Mission Statement Examples To enrich womens lives through an unequalled business opportunity To enrich womens lives through an unequalled business opportunity To organize the worlds information and make it universally accessible and useful To organize the worlds information and make it universally accessible and useful To discover, develop, and deliver novel medicines and vaccines that can make a difference in people's lives. To discover, develop, and deliver novel medicines and vaccines that can make a difference in people's lives. To be the most essential global internet service for consumers and business To be the most essential global internet service for consumers and business To provide innovative, customized promotional products for corporate America, delivering the highest quality product on time – every time. To provide innovative, customized promotional products for corporate America, delivering the highest quality product on time – every time. To help people and businesses throughout the world realize their potential To help people and businesses throughout the world realize their potential To maximize the performance of computer systems To maximize the performance of computer systems

Mission Statements To enrich womens lives through an unequalled business opportunity To enrich womens lives through an unequalled business opportunity To organize the worlds information and make it universally accessible and useful To organize the worlds information and make it universally accessible and useful To discover, develop, and deliver novel medicines and vaccines that can make a difference in people's lives. To discover, develop, and deliver novel medicines and vaccines that can make a difference in people's lives. To be the most essential global internet service for consumers and business To be the most essential global internet service for consumers and business To provide innovative, customized promotional products for corporate America, delivering the highest quality product on time – every time. To provide innovative, customized promotional products for corporate America, delivering the highest quality product on time – every time. To help people and businesses throughout the world realize their potential To help people and businesses throughout the world realize their potential To maximize the performance of computer systems To maximize the performance of computer systems Mary Kay Google Merck Yahoo G&G Outfillters Microsoft Datametrics

Homework Business Description Business Description SWOT Analysis SWOT Analysis Find an example of a company like yours and analyze its web site Find an example of a company like yours and analyze its web site Write a mission statement Write a mission statement Be prepared to share with class Be prepared to share with class