Notes from Feb. 2 Class

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Notes from Feb. 2 Class
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. 

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