1. NIBOA Small Business Module PPT
Business Planning

2. NIBOA Small Business Module PPT
Introductions
INSTRUCTOR’S CONTACT INFO HERE
w/ logo where BANK ON logo is.
[Introduce yourself and the lesson resources, listed at the bottom of the slide, that we will be utilizing.
Be sure to let them know that questions throughout the class are acceptable, but there will be time for questions at the end of the session.]
Lesson resources provided by Federal Deposit Insurance Corporation, US Small Business Administration and Purdue University Extension.

3. Objectives
Clarify some of the myths and realities of small business ownership.
Start a self-assessment to determine your readiness to become a small business owner.
Set a plan of action to complete your self-assessments by seeking feedback from stakeholders, such as family, friends and potential customers.
“Today’s session is designed to provide you with insight, tips and other tools to help you to accurately assess your readiness for small business ownership. Our objectives are: [Read the objectives]…”

4. Is owning a business a good fit for you?
[Read the slide] “This is the overall question we are here to help you assess. Let’s start by examining some Myths and Realities about owning your own business.”

5. Myths and Realities
Starting a new business can be a huge personal sacrifice for your family.
There are a lot of emotional ups and downs.
You have to “get it right” every time.
You do not need a big cash reserve to be successful.
After about a year, you can relax and enjoy the profits.
[Icebreaker: Myths and Realities - True or False?]
“What are your assumptions regarding small business ownership? Here are some True/False statements that are common Myths and Realities of business planning. Which statements do you think are true or false? … Let’s go through these together to see which ones are actually True or False.”
[If time available, here are a few more T/F statements to continue the conversation.
It is easy to get loans for a great idea.
Successful entrepreneurs do it all themselves.
You will not have a boss.
You will have more freedom, control and work–life balance.
Starting a business is risky.
T/F answers with explanations and notes provided in Instructor’s Guide.]

6. What’s your motivation?
Money?
Create jobs?
???????
Be your own boss?
[Activity 1: What Is YOUR motivation? worksheet] – “So, what’s YOUR motivation? Let’s do an activity to help you determine what most motivates you.”
[Instructions:
Rate the list of motivations as High, Medium or Low according to your own preferences
There are no wrong answers.
Thank participants for any shared responses and continue to the next slide.]
I’m great at ____.

7. Roots of Power People: Sales:
Influence others: staff, partners, bankers, customers
Self-Discipline: Manage time, habits and energy
Financial:
Secure and manage money and credit
Sales:
Set and attain sales goals. Ready to sell all the time
“Now, let’s take a look at the Roots of Power to determine the resources available to guide and propel you toward achieving your motivation(s). This graphic depicts four roots of power that feed you and your business.
1. People Power. This refers to the ability to influence others: staff, partners, bankers, customers and so on. People who rate themselves as High in People Power tend to be likable and easy going. It is easy for them to attract and keep customers.
2. Sales Power. These roots refer to setting and attaining sales goals. People with Sales Power know how to sell, sell, sell, all the time. They have no problems asking for a sale. They are not shy about going to meetings to talk with new people. They are comfortable asking for business.
3. Financial Power. These roots refer to securing and managing money. People who rate themselves as High in Financial Power regularly balance their checkbooks. They use Excel, QuickBooks or other financial management tools. If an accountant uses a term they do not know, they ask about it, look it up and add the new term to their vocabularies. They know their personal credit scores and have strategies to improve them if need be.
4. Self-Discipline Power. These roots determine how you manage your time, habits and energy. People who have strong self-discipline tend to work even when they have not had enough sleep. They do without luxuries to save enough to finance their business ideas. They pay their taxes on time. When a staff person quits or they lose a big account, they have a “Plan B.”

8. Self-assessment Start–Stop–Continue Action Plan People Power
Sales Power
Financial Power
Self-Discipline Power
[Activity 2: Roots of Power Self-Assessment] – “So, what are your roots of power? Let’s start the next self-assessment. There are 40 competencies that most successful business owners tend to demonstrate. Like the Roots of Power, these competencies are divided into People, Sales, Financial and Self-Discipline powers.
You will not have time to complete the entire self-assessment in class. However, try to complete the People and Sales categories now. You can finish up the other categories on your own.”
[While individuals are working, move around the room to offer assistance as needed. If someone gets stuck, encourage them to move on and leave some cells blank. The worksheet can be completed later with advice from colleagues, family and friends. After completing the in-class portion of the self-assessment, read the following to wrap up the activity:]
“Based upon what you learn from your self-assessment and what you learn here, you may want to consider to START, STOP or CONTINUE certain activities. For example, you may want to START asking for more input or advice from experts or to START locating technical assistance agencies in the area.
You may want to STOP assuming you can do it alone. As we discussed, successful business owners delegate and collaborate all the time. You also may want to STOP watching TV or frequently engaging in other types of idle activity. This will help you to utilize more of your time to focus on business planning.
Finally, you may also want to CONTINUE to learn more about positioning yourself financially small business ownership, such as attending more NIBOA courses or using similar resources.
Complete this action plan portion of your self-assessment at home after you have finished consulting with key stakeholders, family and friends.”
Start–Stop–Continue
Action Plan

9. Ownership terms Sole ownership or proprietorship Partnership Franchise
Home-based
Start-up or high-growth
Brick-and-mortar
Online
Existing business
“Now that we’ve begun assessing assets, there are a variety of business models from which to choose. This overview is not complete, so you’ll want to research to find the model that works best for you. Also, some of these terms overlap. For example, you can have sole ownership of an online business or share partnership of a high-growth start-up.
Sole ownership or proprietorship. Sole ownership allows you to maintain control and get all the profits (after paying taxes and vendors). Sole ownership means you are in control, which means you oversee every aspect of the business. The down side: there is no distinction between you and your business. If someone sues your business, you are personally responsible. Handling every aspect of a new business can be overwhelming.
Partnership. In a partnership, two or more people share the ownership. A partner can help make decisions, offer complementary skills and invest money. A partnership can be beneficial, but it has some drawbacks. Partnerships should include a partnership agreement that clarifies the roles and responsibilities of each partner and how costs and income will be shared.
Franchise. A franchisor expands a business by allowing you (the franchisee) to lease it for a period of time. A franchisee usually pays the franchisor start-up and annual licensing fees. A franchise is a popular way to start a business. One of the big advantages of a franchise: having access to a known company brand can save on marketing and sales resources.
Home-based. A home-based business is also known as a “kitchen table” or “garage” business. It can be small in scale and provide a modest income, a supplementary income or serve as a launch pad for a high-growth business.
Start-up or high-growth. Investors (angel and venture capitalists) fund this type of business even before it has customers. Investors bet dollars that a start-up will provide a healthy return on their investments in a relatively short period of time.
Brick-and-mortar. A brick-and-mortar business sells products or services via a store front or building.
Online. An online business conducts business via the internet. Many now include both online and offline (brick-and-mortar) components. For example, some brick-and-mortar stores also offer their products online.
Existing business for sale. It might make sense to buy an existing business. After starting and running a successful (or not so successful) business, some owners want to cash out and sell. The caution here: do the homework. Figure out why they want to sell. If they have a hard time attracting customers—so will you.”

10. Strategic planning
“Up until this point, we’ve been evaluating the motivations and the assets available to build a business. Next, we’ll move to the nuts and bolts of building a plan for this business. This is called strategic planning, because you are evaluating all aspects of how you’d like to move your business vision forward. A strategic plan encompasses the following things in an action plan to help you stay on course:
The future
Changes that may occur
Competitive landscape
Lessons learned from the past (including mistakes)
Minimizing risk.”

11. 4-Step planning Healthy Business Preliminary research and planning
Self-Assessment: Is business ownership a good fit?
Step 1: Back-of-the-Napkin Plan: GO or NO GO?
Create an opening balance worksheet
Begin a long term relationship with a banker
Step 2: Resource Plan: What do I need to GO?
More research, planning and detailed financials
Collaborate with bankers and investors
Step 3: Business Plan: How will I finance my business?
Update a living document that changes with the times
Step 4: Action Plan: How will I manage a healthy business?
“As your business grows and changes, the types of planning you need to complete will also change.
No matter where you are in your planning—that is where you need to be. Some of you might be in the early stages while others are at the business or action plan stage. Those of you who have already done some planning can be great resources for those who are just getting started. 4-Step planning includes:
1. Back-of-the-Napkin Plan: Preliminary research and planning; Self-assessment: Is business ownership a good fit?
2. Resource Planning: Create an opening balance worksheet; Begin a long-term relationship with a banker.” [Here personal finances also comes into play. Be sure to mention about the importance of healthy credit. May offer the NIBOA Credit course as a resource.]
3. Business Plan: More research, planning and detailed financials.
4. Action Plan: A living business plan that is updated with changes and time as action continues to occur.
Let’s complete the Planning Stage Self-Assessment to see where you are in the planning process.”
[Activity 3: Planning Stage Self-Assessment; see Instructor’s Guide for instructions]

12. Resource planning Interview stakeholders and other business owners
Ideal locations
Locating discounted equipment and supplies
Pros and cons of buying in bulk
Fair wages and benefits for employees
Federal, state, local and sales taxes
Insurance
Pay for services
“At the beginning of this course, we employed ‘Back-of-the-napkin planning’. Next, we’re going to look at a few things to consider in the resource planning stage. Some things to consider include:
Interviewing stakeholders and other business owners, maybe even competitors.
If going with a bricks and mortar location, what is the ideal location for your new business?
Where would you locate discounted equipment and supplies?
Pros and cons of buying in bulk, because buying too much inventory at once could negatively affect your cash flow.
If you’ll have employees, what’s a fair wage for them, and what benefits will be included?
How will taxes affect your business?
What type of insurance should you have? Property, liability or something else?
Which way is better to pay for technology services, such as website design and hosting. You may ask yourself, do I want to pay more up front or pay higher monthly installments?
Since this is not an exhaustive list, it is important to consider what other expenses you will incur. What else might be missing from this resource list that should be considered? [If time, allow responses] After you’ve considered all these things and more, then you move to the business planning step.”

13. Sources of financial support
Angel investors
Bootstrapping
Crowdsourcing
Friends and family members
Incubators
Local and state economic development organizations
Peer-to-peer lending
Small business loans
Venture capital
“Another very important aspect of resource planning is the source of your business’s financial support. Let’s briefly define some different sources that may be useful to you.
Angel investors: Angel investors are individuals or groups who invest in a business in exchange for a piece of ownership or equity.
Bootstrapping: Entrepreneurs invest their own money to launch and grow their businesses without external financing. Most bootstrap businesses tend to start small and grow from revenues.
Crowdsourcing: Collection of small amounts of capital from a large number of individuals to finance a new business venture. Social media is often used to motivate crowds of friends and family to support a business.
Friends and family members: As a source of support, friends and family members may be the best bet to finance a startup. Friends and family tend to be lenient with loan terms or investment agreements. It is best to have formal agreements to ensure clarity and avoid problems.
Incubators: These programs are often sponsored by non-profits, private companies or municipalities, or universities. Their goal is to help create and grow young businesses by providing them with necessary support and financial and technical services.
Local and state economic development organizations: There are many local, municipal, county, and state economic development organizations that offer a variety of financing options for small business owners. The best way to learn more about these options is through your local Small Business Association (SBA) or state Small Business Development Center (SBDC).
Peer-to-peer lending: These online services pair lenders with borrowers such as non-profit and for-profit companies that facilitate loans without going through traditional lending institutions. These companies charge fees to broker and service loans. Most peer-to-peer loans are unsecured personal loans.
Small business loans: A loan is money (capital) that is borrowed by business owners to apply toward expenses. Small business loans provide short-, mid-, or long-term financing options for small business owners. These loans can be used to purchase assets, working capital, and real estate. Most lenders require business owners to personally guarantee the loan by providing secured interest on personal assets (collateral). Commercial banks, credit unions, and micro-lending programs provide small business loans.
Venture capital: This is money provided to small businesses owners in exchange for ownership or equity. Venture capitalists invest substantial amounts in high-risk ventures that have a potential for above-average returns and long-term growth potential.
Again, these are very brief definitions, so you should plan to do more research at home to determine which sources work best for your business plan.”

14. Business planning 101 Your business plan does three things:
Tells a story that makes your idea come alive.
Convinces others to make a stake in you.
Outlines business development plans in financial terms.
“So now you may be wondering, ‘How do I go about securing this financial support among the many other resources needed to start my business?’ Well, a good foundation is to use your business plan as a talking piece. Your business plan should tell the story that brings your business from a simple idea to a living, breathing entity. This will help to convince others to make a stake in you, in the business.
In order to do this, you’ll need a business plan that outlines what you plan to do and how you plan to spend the funding. You should project at least three years into the future and clearly outline your objectives in financial terms. Now, we’ll cover a few of the foundational items you need in order to build your plan.”

15. “In order to set a schedule to help you secure and adequately use all of these resources to start and develop a thriving business, you will need to manage your time wisely. Start your time management plan with clearly defined goals. What do you want to do? What do you want to be? What do want to have? Your time management plan will be derived from these stated goals. When writing your goals, identify each of them as a short-term (quarterly), mid-term (12 months) or long-term (two to five years) goal.”

16. “Proper goal setting starts with knowing what you want to accomplish
“Proper goal setting starts with knowing what you want to accomplish. Try to write your goals using the following format:
Specific—state the goal precisely.
Measurable—good measures allow you to know when a goal is completed.
Attainable—resources needed to complete the goal are within your reach.
Relevant—the goal is applicable to your business.
Time Bound—the goal has a completion date or timeframe for being achieved.
Many business owners take the time to write their goals, but struggle to achieve them. The next action to take with your SMART goals is to write down the steps and tasks to complete them, identifying the ‘who, what, when, where and why’ for completing the goal.
Some examples of SMART Goals include:
I will move my business from my home into office space in less than four months from today.
I will hire a web designer and have our new website operational by the end of next month.
This month I will research the benefits of leasing a copier versus buying a copier in time for when the current lease is up in 52 days.
Examples of goals that do not follow the SMART format:
I will get some new clients.
I will increase my sales this year.
I’m going to write a marketing plan.
Identify, test and fine-tune your written goals using the SMART format.”

17. Sample action plan SMART Goals Tasks Success Criteria Time Frame
Resources
Achieve an average monthly customer count of 500 within three months
Advertise in Business Journal
Increase social media outreach
Identify effective marketing opportunities
400 customers in month 1
450 in month 2
500 in month 3
September
$300 for ad
Flyers in college common areas and coffee shops
Website upgrade
Reduce rental costs by 10% by the end of this year
Negotiate terms with landlord
Work with lawyer to draw up a contract
2-year lease = 10% rent reduction
December 31
Legal fees? Find out how much
“Here is a sample action plan based on SMART goals.” [Read the chart, and proceed to the next slide.]

18. Time management More business equals more income. More focused.
More organized.
Less stress.
More time for family and friends.
“The key to ensuring that your action plan gets accomplished is to manage your time well. With effective time management, you will:
Maximize what can be accomplished in a work day.
Maximize the use of limited resources.
Identify critical areas for special attention.
Identify tasks that can be delegated to employees.
Track progress toward your goals.
The number one benefit of time management is more business, which means more income. Time management will allow you to be more focused on key tasks, be more organized, have less stress and have more time for family, friends and other interests. Here are some questions to help you begin thinking about how to improve time management:
In what ways have you wasted or not optimally managed your time?
How many times have you looked up and wondered where all the time went?
How many times has your day ended where you didn’t complete a key task and/or desires?
How many times have you missed dinner or other activities with family and friends to work late to finish something that was not done?"

19. Key elements Clearly defined written SMART goals. Detailed task list.
Prioritization of the tasks.
List of important ongoing business functions.
Built-in flexibility.
“An effective time management plan has five important elements:
Clearly defined written SMART goals.
These are the goals that we discussed earlier in the presentation. [Slide 16]
Detailed list of tasks:
Breakdown each goal into a set of clearly defined tasks that need to be completed to accomplish the goal. Goals do not get accomplished on their own. Breaking down goals into written tasks allows you to see and understand what actions are required. The task list will also help you to see what resources are needed and how to allocate them. You may see areas where resources are lacking. Use the task list to start identifying ways to get the tasks done in a timely manner.
For each task, evaluate:
What needs to be done?
Who needs to do it?
When is it due?
Where is it being done or being delivered?
Any other details.
Prioritization of the tasks.
With any task or “to-do” list, some items on the list will be more important than others. Always try to complete the most important tasks first, because these tasks will usually have the greatest impact on your goals and, by extension, your bottom line. However, some less important tasks may become critically urgent. For example, if you have an ongoing task is to pay all your bills on the 15th of each month and you forget to pay the electric bill, the unpaid bill will become a high priority to avoid an interruption in service.
Assign a priority level to every task under each step.
Rearrange the tasks in order of priority.
Allocate ample time to complete the most critical tasks first
List of important ongoing business functions.
Be sure to account for ongoing functions, so that time is adequately allotted for these tasks. This will also make sure that your plan is more realistic.
Built in flexibility.
With any plan, it is important to realize that things may need to change when actually putting the plan to use. This will help you to approach any apparent setbacks or roadblocks with more flexibility as to how to get through or around them.”

20. Ongoing business functions
Include time in your task list to:
Pay bills
Invoice clients
Review correspondence
Make bank deposits
“Here are a few things to be sure to include in your task list: [list them].”

21. “You should continuously review and update your time management plan.
Daily
As each task is completed, cross it off your list. Understand that critical tasks may not get done in your spare time, so allocate time to complete these tasks first. When allocating time to your tasks each day, include a minimum of 10 to 15 minutes at the end of each day to review the tasks in your time management plan for the next day.
Weekly
On the last day of your work week, allocate at least an hour to write and prioritize your five-day weekly time management plan for the following week. Do not skip or skimp on this critical time management step.
Before writing your next week’s time management, look at any outstanding tasks from the current week, including tasks that “popped up” as the week progressed. As you reflect back over your week, ask yourself:
Have I properly invoiced everyone based upon their activities?
How did I do with time management and productivity this week?
What could I do differently? Do I need to allocate my time differently?
How well did I manage distractions?
Prioritize any outstanding tasks from the current week and add them to the time management plan for next week, based on where the tasks fit into the list of prioritized tasks for next week.
When preparing your time management plan for next week, you should assess how accurate your estimates of time were for the preceding week. Also assess if the number of tasks included in daily and weekly plans should be reduced, increased or left as is. Too much stress may mean you may have too many tasks in your plan. Evaluate whether your highest priority tasks are appropriately ranked.
Monthly
Your weekly time management plans combine to determine your progress for the month. At the end of the third week of the month, assess your progress toward your monthly and quarterly goals. Ask yourself:
How am I doing toward my monthly and quarterly goals?
What adjustments, if any, do I need to make in my time management plan for the last week of this month to achieve my monthly and quarterly goals?
Yearly
Your five-day weekly time management plan lists everything that needs to be done every day of the week to achieve your goals, complete projects efficiently and on time and effectively handle all activities necessary to run your day-to-day business. This prioritized list becomes your road map or guide for each week. The weeks combine to guide you through a month and the months combine to guide you through the year.
As you enter the last quarter of the year, use all of your weekly time management plans to start reviewing your overall progress toward your annual goals. Assess yourself and start identifying your quarterly and annual goals for the next year. Write your goals in the SMART format and refer back to this work as much as needed. Use your third quarter review of your time management plans to start preparing to meet with your tax professional."

22. Summary: Key points Make time to write a business plan.
There is more than one way to plan.
The planning process helps refine your ideas in order to prevent errors.
The types of plans utilized should change as your business needs change.
Engage stakeholders in the process.
Even when you get the investments you need, you must plan strategically to ensure a healthy business.
“In summary, be sure to remember these key points [Read the slide]…”

23. Try this at home
Ask a Professional and your Stakeholders for some advice or help.
Family and friends
Potential customers
Other business owners
Bankers
Potential partners
“Ask a Professional or Stakeholders for advice or help:
Family and friends: How will they react if you work 60 hours per week?
Potential customers: What do they want? What are they willing to pay?
Other business owners: They can tell you what works (and what does not work).
Bankers: Start a relationship with a banker before you need a loan.
Potential partners: Look for partners who have skills and experience.”

24. Next step
NorthwestIndiana.score.org

25. NIBOA Small Business Module PPT
Thank You!
INSTRUCTOR’S CONTACT INFO with logo HERE
“And, with that do you have any questions?”
[Thank them for coming. At this time, hand out the evaluation form to fill out, then collect them once finished and exchange them for their course completion certificate.
If interested in attending more classes, direct them to the website – NIBOA.org
Handout – assessment/evaluation form and course certificate]
Interested in another class? Visit NIBOA.org.
Lesson resources provided by Federal Deposit Insurance Corporation, US Small Business Administration and Purdue University Extension.