1. Start Your Own Business Training Programme
An Ghláisigh, Doirí Beaga, Leitir Ceanainn, Co Dun na nGall
Start Your Own Business Training Programme 1

2. The Schedule
6 Modules, – 9.30 pm + 1 Individual Mentoring Session re Business Plan Development
Module 1
Introduction to Business Planning and Self Assessment
Module 2
Product and Market Research
Module 3
Marketing and the Small Business
Module 4
Sales and Sales Planning
Module 5
Legal Issues and Managing People
Module 6
Finance and Bookkeeping – Sourcing Finance 2

3. Additional Information/Articles/Templates
Supports and Resources
Work Books
Additional Information/Articles/Templates
Support
Riona –
Joe –
Dedicated Course Website
Presentations and additional support materials 3

4. Username: mcebsyob17a Password: mcebSYOB17*@ Dedicated Course Website
Username: mcebsyob17a
Password: 4

5. The pre start-up phase……
Social Media
€uro?
Suppliers
Marketing
Website
Bank?
Premises
Sources of finance
Register name?
Staff
Suppliers
Revenue compliance

6. The pre start-up phase……
Is the opportunity a “one off?”
On my own or with others
Is the return worth the effort?
Is it practical?
Is it sustainable and viable?

7. € Is it….. Practical? Feasible? Resource intensive? Right Skills?
The pre start-up phase……
Is it…..
Practical?
Feasible?
Resource intensive?
Right Skills?
Right Location? €

8. The key is in the Business Planning Process
Sales forecasting methods
The key is in the Business Planning Process
and in the Cash Flow Forecast…… 8

9. Benefits of financial planning
Determines financial viability
Helps make informed business decisions
Identifies funding needs
Improves chances of success
Reduces risk
Sets financial objectives and targets
Businesses don’t fail because they are bad businesses
They fail because they run out of cash!

10. Cash flow forecasts
What is a cash flow forecast?
A projection of when, and how much money will be
received and paid out of a business, usually over a
12 month period – Actual money in and money out
Purpose
Assess financial viability
Support applications for funding
Identify the timing of cash shortages and surpluses
Plan expenditure
Monitor the cash flow
Enhance the planning process
N.B. One of the single most common causes of business failure = Running out of cash 10

11. Your Profit Overview of business finance Sales Funding
Variable costs
Fixed costs
Capital
costs
Financial planning
Managing finances
Your Profit

12. Your Profit Business Costs Business costs Sales Funding Variable costs
Businesses don’t fail because they are bad businesses
They fail because they run out of cash!
Business Costs
Business costs
Sales
Funding
Variable costs
Directly related to output
Fixed costs
Do not vary with output
Capital
costs
Tangible fixed assets e.g. equipment
Your Profit

13. Sales forecasting needs a structured approach
Here’s the trick!
Sales forecasting needs a structured approach
CAPITAL COSTS: How much will it cost to set the business up?
One off costs – equipment – starting stock – working capital
The amount you borrow to cover these costs will affect your FIXED COSTS
FIXED COSTS: Work out on a monthly basis across a full year
Recurring costs
Easy to forecast – energy, utilities, broadband
This should include what you pay yourself and wages for others
Include estimated loan requirements if required
VARIABLE COSTS: The more business you do, the more these will vary
TOTAL THESE TWO COSTS = RUNNING COSTS FOR ONE YEAR

14. Sales forecasting needs a structured approach
Here’s the trick!
Sales forecasting needs a structured approach
Here’s an example…
You have a business selling Mars Bars?
Total running costs = €80,000
Cost of a Mars Bar €0.50c
You sell a Mars Bar at €1.00
Your margin on the sale €0.50c
Therefore you need to sell 160,000 Mars Bars to cover all your costs - €80.000
but there’s no profit!
Sell 200,000 Mars Bars and you cover your costs and make €20,000 profit!

15. So, how much an hour do you charge for your services?
Here’s the trick!
Sales forecasting needs a structured approach
Here’s an example…
You have a business selling a service – vehicle repairs
Total running costs = €40,000
Total hours available to do business = 1,000 hours per year
Hourly rate = €40 per hour to cover all your costs - but there’s no profit!
So, how much an hour do you charge for your services?
Discuss

16. Sales forecasting needs a structured approach
Here’s the trick!
Sales forecasting needs a structured approach
So how do I find customers that will pay for my services – or buy my Mars Bars!
Market Research
Will people buy it?
Who will buy it?
What is demand likely to be?
How much will people pay for it?

17. Sales forecasting – some considerations
Technology
VHS, DVD, Blueray, Digital cameras, Newspapers, Disruptive technologies – Kodi, SKYPE
Competitors
Local? On-Line Anywhere
External factors Political, Economic, Socio-cultural, Technological, Environmental and Legal (PESTEL) factors such as oil prices, seasonal trends, interest rates, legislation, political and health issues will all have an impact.
BREXIT
How do the economic climate and other external factors impact on your business and on your customers' attitudes?
Capacity Make sure that the sales forecast is within the limits of your capacity to produce your product or deliver your service. 17

18. Selling price x number of units
Sales forecasting methods
Resource based forecasting
Selling price x number of units
Market based forecasting
Number of customers x average expenditure
Value based forecasting
Estimating breakeven sales 18

19. Introduction to prospecting and sales

20. You’re a good neighbour You know your stuff
Why should I do business with you?
You’re a nice person
You’re cheap
You’re a good neighbour
You know your stuff
I’ve known you since school days
We played on the same team
Your product is good
I can rely on you 20

21. You’re a good neighbour You know your stuff
Why should I do business with you?
You’re a nice person
You’re cheap
You’re a good neighbour
You know your stuff
I’ve known you since school days
We played on the same team
Your product is good
I can rely on you
Perhaps one or all of these…….
If you can solve a problem for me at a reasonable cost then I’ll do business with you! 21

22. Product/service - factors to consider
Purchasing decisions and psychology?
Product/service - factors to consider
Google: Maslow's Hierarchy
Of Needs 22

23. Sales and the Sales Process
business to business (B2B),
business to consumer (B2C)
consumer to consumer (C2C)
One to one basis selling components or ingredients to a manufacturer
Traditional retail or on-line retail
Individual people sell to other individuals through classified ads in newspapers or other means of advertising.
C2C trade is rising thanks to websites such as eBay.

24. Sales and the Sales Process
Sales Funnel
Sales is a numbers game:
You have to look at what your monthly, quarterly and annual sales targets are
You need to look at what your average sale is in revenue and margin
You need to look at what your average sales lead time is
You need to look at your ratio of calls to conversion are
Then you put a figure on the number of potential prospects that you have to start with
What’s a CRM?

25. Stepping out of your comfort zone Lack of preparation
Selling
What are the Blockers?
Fear!
Lack of confidence
Lack of time
Lack of focus
Stepping out of your comfort zone
Lack of preparation
Perceptions - selling as a business skill 25

26. Internal Sources: Personal Contact: External Sources: Prospecting
Enquiries to advertising
Phone/mail enquiries
Internet enquiries
Customer records
Personal Contact:
Business contacts
Social networks
Formal networks
Networking
Word of mouth
Personal observation
Cold canvassing
Trade shows
Conferences
Sales seminars
Look for the MAN
Money
Authority
Need
External Sources:
Following leads
Referrals/introductions
Community contact
Other organisations
Networks
Newspaper
Directories 10

27. Sales and the Sales Process
Structure of
a sales engagement
Opening the sale
The diagnostic process
Body of the sale
Closing the sale

28. Sales and the Sales Process
Who
What
Where
When
How
Why
Diagnose the problem that you can solve or prevent happening again at the right price and at the right time, then you’ve got a sale!

29. Sales and the Sales Process
Once the problem is diagnosed….
The opportunity exists to SELL the fix!

30. Sell the benefits – not the features!30

31. Features Advantage Benefit
Sell the benefits – not the features!
1 Gb Memory
Rechargeable
PC Compatible
Features
Advantage
Portable
Pocket friendly
Focus of sales pitch
Benefit
Can store up to 5,000 tunes 31

32. Requesting names of other customers Commenting positively
Buying signals
Requesting a sample
Requesting names of other customers
Commenting positively
Indicating problems with previous vendors
Asking specific questions re: price, features, availability, options
Negotiating 32

33. Sales and the Sales Process
With What Can I Bargain?
Price
Service
Terms
Conditions
Model / Colour
Discount
Delivery
Continuity Etc
Negotiation skills are not the same as splitting the difference

34. Why Objections Occur
Disbelief/not convinced
Budget/money issues
Satisfaction with a competitive product
Previous negative experience
Fear of making the wrong decision
Misunderstanding

35. Handling Objections
Prepare responses in advance
Listen to the objection
Check you have understood the objection
Answer the objection
Advance the sale

36. Alternative choice close Direct request close Fear close
Closing methods
Assumptive close
Alternative choice close
Direct request close
Fear close
Small decision close 36

37. Traits of a good salesperson
Sales and the Sales Process
Outgoing
Personality
Ambitious
Confident
Educated
Good
Product
Knowledge
Enthusiastic
Traits
Of a Good
Salesperson
Traits of a good salesperson 37

38. Sales and the Sales Process
Listen!

39. Selling online REMEMBER! Transaction is governed
by the laws of the country
where the server is located 39

40. Selling online Technical Domain registration .ie, .com, Blacknight.ie
Broadband, Hosting, mail server services
Choosing an e-commerce platform that suits your business
Wordpress, BigCommerce, PDPlumbing example
Getting Paid
Currencies, embedded systems – PayPal
eMerchant accounts, payment validation systems
Design and Functionality
Functional specification?
Brochure, dynamic or transactional – or hybrid
This is an example
Not an endorsement

41. Selling online
We need the right tools and skills for the job in hand
Skills and Resources Audit
IT and Broadband Resources
Data set manipulation skills – Excel, CSV files,
Manipulation of digital images – PowerPoint, Photoshop, Gimp

43. Selling online Marketing the site – Social Media
Facebook and Twitter in a business context
LinkedIn Profiles, Search Engine Optimisation
Photography – image manipulation
Making your product look good
Photoshop, GIMP, Powerpoint Lighting and background
Site Statistics – Analytics
Google Analytics, BigCommerce – traffic analysis
Site Management
Big responsibility, could be full time, Who? How?

45. Selling online - factors to consider
Costs
Payment processing
Security
Legal issues
Ordering
Data protection
Factors
Tracking
Marketing
Delivery
Exchange rates
Returns 45

46. Product specific e.g. alcohol, tobacco
Selling and the law
Product specific e.g. alcohol, tobacco
Distance Selling Regulations - Good Starting Point
Data Protection Act
Sale of Goods and Supply of Services Acts
Consumer Safety Act
Labelling Regulations
Food Safety Act
Consumer Protection Legislation 46

47. Start Your Own Business Training Programme
An Ghláisigh, Doirí Beaga, Leitir Ceanainn, Co Dun na nGall
Start Your Own Business Training Programme 47