self Marketing & operations ideas opportunities resources management finances ENTREPRENEUR Life Cycle of a Business   Stage 1: Pre-startup   Stage 2: Development   Stage 3: Growth Comfort Turnaround Pre-startup Stage   Preparations for launching the business is made   Time for generating and investigating ideas, initiating research, and identifying and solving problems   Review resources, consider how best to allocate them, write a business plan   Budgeting and timing are very important!   Plan thoroughly   Seek advice from others   Revise plans if necessary   Test the market’s response to your ideas   Decide if you should move on to the next stage Development Stage   Research and business plan are complete   Goal in this stage is to reach the BREAKEVEN POINT –  The point where your total monthly revenues are equal to your total monthly costs –  can take much longer than expected   Essential: – Good management – Weekly goal setting – Accurate record keeping – Follow up on customer concerns – Ensure orders are filled on time – Stay in touch with customers who are slow to pay their bills – Keep your goal in mind! Growth Stage   You’ve passed the break-even point and are earning a profit   Time to bring in experts to share the workload and help your business expand –  Add new product lines/services, enlarge customer base through e-commerce, open a new location…..   Good time to take a risk Comfort Stage   Business is secure and continuing to grow but at a slower rate   Assets are worth more than the liabilities   Feels safe, but can be dangerous if you forget that growth/change is necessary for future success (Blockbuster!) Turnaround Stage   If you reach this, your business is in financial trouble! – Records show losses for 2+ years – Competition is taking your customers away – Working capital (what you’re worth) has lessened What is a Venture Plan?   A road map for running a venture – A written summary of what the venture can accomplish and how  A tool you can use to communicate with potential investors, bankers, partners, and employees Sections in a Business Plan 1.  2.  3.  4.  5.  Executive summary Market analysis Resource analysis Operating strategy Financial strategy Venture Plan should include:   A mission statement that describes your vision for the venture, including aims and objectives   The marketing research you’ve done and a detailed description of your target market   A list of the financial, material, and human resources you need to make your plan work Cont’d…   An explanation of how the business will operate   A plan for raising the money you need to start the venture Venture Plan cont…   Should include both words and numbers   Must provide a detailed description of –  what you will offer –  Where the venture will operate –  When it will start –  What resources are needed   Will help you to predict future profits and make financial plans that will carry your business through the first few months after startup   Helps weigh costs and benefits   Puts plans in place The Mission Statement   Plan should open with a mission statement that will capture the attention and interest of people who may be able to help you   Clearly identifies the type of venture you are planning, the products/service you’ll deliver, and the overall philosophy/ purpose   Explain how you will meet the needs and wants of prospective customers Examples   "AAA Inc. is a spunky, imaginative food products and service company aimed at offering highquality, moderately priced, occasionally unusual foods using only natural ingredients. We view ourselves as partners with our customers, our employees, our community and our environment. We aim to become a regionally recognized brand name, capitalizing on the sustained interest in Southwestern and Mexican food. Our goal is moderate growth, annual profitability and maintaining our sense of humor.”   Starbucks:   Disney: ` “to be one of the world's leading producers and providers of information and entertainment. Using our portfolio of brands to differentiate our content, consumer and services products, we seek to develop the most creative, profitable and innovative entertainment experiences and related products in the world.”   Nike: “To bring inspiration and innovation to every athlete* in the world.”   Langley School Board: “Working together for student success through excellence in education. Empowering all to make quality decisions today for opportunities tomorrow.” Loblaws (Superstore)   To be Canada’s best food, health and home retailer by exceeding customer expectations through innovative products at great prices. –  We're driven by our responsibility to: –  Respect the Environment –  Source with Integrity –  Make a Positive Difference in Our Community –  Reflect Our Nation’s Diversity –  Be a Great Place to Work Research Assistance Grid   basic planning tool to help identify some of the questions that will need to be answered 6 Reasons to Prepare a Venture Plan 1.  2.  Helps you id your market, understand your customers, choose the best pricing strategy, and get to know the competition Shows that the venture can work. –  Forces you to take a realistic view of your idea and logically assess goals 3.  4.  5.  6.  Introduces you to others as someone who is a careful planner. First impressions are very important Helps determine how much financing you will need and when you’ll need it Id’s benchmarks or targets that will help you evaluate and improve the performance of your venture Written plan makes day-to-day management easier, since procedures can be reviewed and adjusted as necessary Group 1 Group 2 Group 3 To Do: Get each other’s contact info!! Phone #, e-mail, FB, Twitter, etc. etc…. 2.  Go over your innovation/invention homework and talk about your ideas 3.  Start to narrow down ideas and brainstorm ones that could be interesting for you all 1. 