Business Planning

1. Business Planning

2. Introductions • INSTRUCTOR’S CONTACT INFO HERE • w/ logo were BANK ON logo is. 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.

4. Is owning a business a good fit for you?

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.

6. What’s your motivation? Money? Create jobs? ??????? Be your own boss? I’m great at ____.

7. Roots of Power Sales: Set and attain sales goals. Ready to sell all the time People: Influence others: staff, partners, bankers, customers Self-Discipline: Manage time, habits and energy Financial: Secure and manage money and credit

8. Self-assessment • People Power • Sales Power • Financial Power • Self-Discipline Power 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

10. Strategic planning

11. 4-Step planning Healthy Business Healthy Business

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

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

14. Business planning 101 • Tells a story that makes your idea come alive. • Convinces others to make a stake in you. • Outlines business development plans in financial terms.

17. Sample action plan

18. Time management • More business equals more income. • More focused. • More organized. • Less stress. • More time for family and friends.

19. Key elements • Clearly defined written SMART goals. • Detailed list of tasks. • Prioritization of the tasks. • List of important ongoing business functions. • Built in flexibility.

20. Ongoing business functions Include in your task list, time to: • Pay bills • Invoice clients • Review correspondence • Make bank deposits

22. Summary: Key points • 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. • Make time to write a business plan. • Engage stakeholders in the process. • Even when you get the investments you need, you need to plan strategically to ensure a healthy business.

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

24. Next step • NorthwestIndiana.score.org

25. Thank You! • INSTRUCTOR’S CONTACT INFO with logo HERE Interested in another class? Visit NIBOA.org. Lesson resources provided by Federal Deposit Insurance Corporation, US Small Business Administration and Purdue University Extension.