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Business Plan Basics
for H.E. Auxiliaries
Dr. Alex Herzog
Vice President for Student Affairs &
Enrollment Management
Rochester Community and Technical College
www.rctc.edu
NACAS West 2014
Alex J. Herzog Ed.D.
I am DR. Alex Herzog
Scene from Treasure Planet
Alex J. Herzog Ed.D.
Overview of Session
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What do I know?
Why have a plan?
What is a Business Plan?
Elements of a Business Plan
My Experience with Business Plans
Business Plan Resources.
Alex J. Herzog Ed.D.
Desert Survival Activity
Alex J. Herzog Ed.D.
The Task
Your task is to rank these items, as a
group, according to their importance to
your survival, starting with “1" the most
important, to “15" the least important.
Alex J. Herzog Ed.D.
The Desert Survival Answers
# 5 - 1 top coat per person
# 4 – Jack Knife
# 3 – A cosmetic mirror
# 2 - .45 Caliber Pistol (loaded)
# 1 – 1 quart of water per person
What was your plan?
Alex J. Herzog Ed.D.
A Business Plan is a Plan!
Alex J. Herzog Ed.D.
What is a Plan?
Planning is a process for accomplishing
purposes. It is a blue print of business
growth and a road map of development. It
helps in deciding objectives both in
quantitative and qualitative terms. It is
setting of goals on the basis of objectives
and keeping with in the resources.
http://en.wikipedia.org/wiki/Planning
Alex J. Herzog Ed.D.
Why its important to have a plan?
Alex J. Herzog Ed.D.
Why its important to have a plan?
Alex J. Herzog Ed.D.
Why its important to have a plan?
Alex J. Herzog Ed.D.
Purpose of a Plan
Alex J. Herzog Ed.D.
Three critical plan functions:
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Helps management to clarify, focus, and research
their business's or project's development and
prospects.
Provides a considered and logical framework within
which a business can develop and pursue business
strategies over the next three to five years.
Offers a benchmark against which actual
performance can be measured and reviewed.
http://en.wikipedia.org/wiki/Planning
Alex J. Herzog Ed.D.
What is a Business Plan?
Definition: A document that describes
the entrepreneur's idea, the market
problem, proposed solution, business
and revenue models, marketing strategy,
technology, company profile, competitive
landscape, as well as financial data for
coming years.
http://vcexperts.com/vce/library/encyclopedia/glossary_view.asp?glossary_id=10
Alex J. Herzog Ed.D.
Fall 2012
Alex Herzog Ed.D.
Typical Business Plan?
Alex J. Herzog Ed.D.
Shark Tank – The Pitch!
Alex J. Herzog Ed.D.
Elements of A Business Plan
Alex J. Herzog Ed.D.
Elements of A Business Plan
Executive Summary
Write this section last. It's just a page or
two of highlights that sell your auxiliary
service.
It’s an elevator pitch in written form.
Alex J. Herzog Ed.D.
Elements of A Business Plan
Company Description:
Describe the institution and include its
history. Include detail such as enrollment
numbers and projected growth.
Alex J. Herzog Ed.D.
Elements of A Business Plan
Product or Service:
Describe what you're selling. What does
your auxiliary service provide? How does
the customer benefit from your service.
What competitors are out there? Where
do you get your supplies? Etc.
Alex J. Herzog Ed.D.
Elements of A Business Plan
Market Analysis:
You need to know your market, customer
needs, where they are, how to reach
them.
Alex J. Herzog Ed.D.
Elements of A Business Plan
Strategy and Implementation:
Be specific. Include management
responsibilities with dates and budget.
Who does what and when? ie. Who orders
supplies and how? Who hires staff and
process?
Alex J. Herzog Ed.D.
Elements of A Business Plan
Management Team:
Include backgrounds of key members of
the team, personnel strategy, and details.
Include your supervisors and any other
administrators that have influence over
your auxiliary.
Alex J. Herzog Ed.D.
Elements of A Business Plan
Financial Plan:
Include profit and loss, cash flow, balance
sheet, break-even analysis, assumptions,
etc.
Include historical data on profit and plans
for reinvesting future revenue.
Alex J. Herzog Ed.D.
Personal Experience
What does one personally gain from
writing a Business Plan?
Alex J. Herzog Ed.D.
My Experience with BP in H.E.
What I think doesn’t make sense about a
business plan for Higher Ed?
Alex J. Herzog Ed.D.
Business Plan vs. Success Plan
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Success Plan
• Establish Goals 3 years out
• Helps define where you’ve been
• Outlines your plan.
• Needs to identify problems and potential
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solutions
Outlines what you are currently working with.
Get buy in from Senior Administration & other
departments
Alex J. Herzog Ed.D.
Business Plan Software
Business Plan Pro Standard $99.95 or Premier $199
http://www.paloalto.com/
Biz Plans
http://www.bizplans.com/
Plan Magic
http://planmagic.com/
Adarus
http://www.adarus.com/
Alex J. Herzog Ed.D.
Easy, right!?
Most business plans don’t get written
because they seem like an overwhelming
process.
Alex J. Herzog Ed.D.
New Concept in Business Plans:
Alex J. Herzog Ed.D.
Does this look familiar?
Alex J. Herzog Ed.D.
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Tips for Success…
Keep a positive attitude, make short term
goals to finish each step.
Ask for help.
(Business Class, Professor, SBDC)
Know you are not alone in your efforts.
Set aside time to work on it, make a
COMMITMENT and set a timeline.
Put an Advisory Committee together
Alex J. Herzog Ed.D.
Tips Continued
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Delegate sections to staff with
timelines.
Remember P5: Prior planning
prevents poor performance!
Start by establishing goals.
And as a last resort you can always
hire someone.
Alex J. Herzog Ed.D.
Use the resources you have!
Alex J. Herzog Ed.D.
Resources
Small Business Development Centers
http://www.sba.gov/
Robert Huber & Associates
http://www.allcampuscard.com/
General Business Plan website
http://www.businessplans.org/
Alex Herzog Ed.D.
[email protected]
Alex J. Herzog Ed.D.
Questions & Thank you!
My contact info:
Alex J. Herzog Ed.D.
[email protected]
Rochester Community & Technical College
Rochester MN
Alex J. Herzog Ed.D.