1. Feasibility and Business Planning

2. Developing a Business Concept
Business Concept: a clear and concise description of an opportunity
Elements of Business Concept
What is the Product/Service?
Who is the Customer?
What Is the Benefit Provided?
How will the benefit will be delivered?

3. The Pet Rock Founder: Gary Dahl Made Dahl a Millionaire 1970’s Fad
Rock carefully packaged
Air holes so the rock may breath
Straw for comfort
Handle for easy transportation
Cost: $3.95

4. The Pet Rock Training Manual included:
How to raise & care for your pet rock
How to teach your pet rock tricks: sit, stay, roll over, play dead, etc.

5. Activity Heart Attack Grill
Working with a partner, create a concept statement for a new restaurant

6. Activity Business Concept What product/service are you offering?
Who is the customer?
What is the benefit that is being provided?
How will the benefit be delivered?

7. Testing the Concept in the Market
Feasibility Analysis: test a business concept
Does the business have potential?
Demand for product/service
Should I stay or should I go?

8. Testing the Concept in the Market
Testing the Industry (group of businesses with a common interest)
Trends
Life Cycle Stage
Health Of The Industry
Status Of Technology
Typical Profit Margins
Major Players

9. Talking to Customers
Target Customers: those most likely to buy your products or services
Most important part of analysis
What do customers want?
Are customers interested in your product?
How will you reach out to your customers?

10. Testing Product/Service
Prototype: working model of a new product (actual product, blueprint of the business etc.)
Product Development Tasks And Guidelines (concept, layout, etc)
How will you protecting your Product
Product/Service Differentiation

11. Evaluating The Founding Team
Experience In The Industry
Knowledge And Skills Of The Industry
Gaps In Knowledge And Plans For Filling The Gaps

12. Studying the Competition
Competitive Grid: tool for organizing information about the competition
Five column grid including
Competitor
Customer
Benefits
Distribution
Strength/Weaknesses
Sample Competitive Graph Page 98

13. Looking at Start-up Resources
Helps you determine the potential profitability of a business idea
Business Model: describes how you intend to make money with your business concept
Calculate money needed to
Purchase/Lease Equipment
Buy Starting Inventory
Pay Employees
Finish Product Development
Carry Company Expenses Until Sales Allow You To Operate With A Positive Cash Flow

14. Analyzing the Value Chain
Value Chain: distribution channel through which your product/service flows from the producer to the consumer.
Includes manufacturer, distributors, retailers
Each adds value to the final product
Goal: deliver maximum value for least possible cost
Example: internet created new ways to sell products/services

15. The Business Plan
Business Plan: a document that describes your new business and a strategy to launch that business
Roadmap for starting a business
Sales tool to raise capital
Research and plan, not react

16. Parts of a Business Plan
Executive Summary
Management Team Plan
Company Description
Product/Service Plan
Vision & Mission Statement
Industry Overview
Market Analysis

17. The Business Plan Competitive analysis Marketing Plan Operation Plan
Organizational Plan
Financial Plan
Growth Plan
Contingency Plan
Cover Page/Title Page/Table of Contents/Supporting Documents

18. Common Mistakes in Preparing Business Plans
Projecting Exaggerated Growth Levels
Trying To Be A Jack Of All Trades
Claiming Performance That Exceeds Industry Averages
Underestimating The Need For Capital

19. Sources of Business Plan Information
Small Business Administration (SBA)
Service Corp of Retired Executives (SCORE)
Small Business Development Centers (SBDCs)
Chamber of Commerce
Trade Associations
Link available at entrepreneurship.glencoe.com