WEEK Two: The Basics of Setting up your Business pt 2

1. WEEK Two: The Basics of Setting up your Business pt 2

2. Last Week • Background • What to expect • Expectations • Lead Abatement training • Opportunities • Choosing the right Legal Structure for your business • Review of the Business Guide at IN.Gov

3. Creating a Business Plan for your company

4. Go to 10 steps to start your business https://www.sba.gov/business-guide/10-steps-start-your-business/ • Conduct market research • Write your business plan • Fund your business Pick your business location Choose a business structure Choose your business name • Register your business • Get federal and state tax IDs • Apply for licenses and permits • Open a business bank account

5. Market research helps you find customers for your business. Competitive analysis helps you make your business unique. Combine them to find a competitive advantage for your small business. Use market research to find customers Use competitive analysis to find a market advantage Free small business data and trends: See examples

6. Your business plan is the foundation of your business. Learn how to write a business plan quickly and efficiently with a business plan template. Business plans help you run your business Pick a business plan format that works for you Traditional business plan format Lean startup format

7. What is a Business Plan and why do I need one?

8. So how do I create a plan for my business?

9. Calculate your business startup costs before you launch Identify your startup expenses Estimate how much your expenses will cost Add up your expenses for a full financial picture Use your startup cost calculations to get startup funding How much money will it take to start your small business? Calculate the startup costs for your small business so you can request funding, attract investors, and estimate when you’ll turn a profit.

10. Determine how much funding you'll need Fund your business yourself with self-funding Get venture capital from investors Use crowdfunding to fund your business Get a small business loan Use Lender Match to find lenders who offer SBA-guaranteed loans Small Business Administration investment programs It costs money to start a business. Funding your business is one of the first — and most important — financial choices most business owners make. How you choose to fund your business could affect how you structure and run your business.

11. Know the difference between franchising and buying a business Consider 3 factors before franchising or buying a business Get ready to buy your franchise or business It can be hard to start a business from scratch. Starting a business from scratch can be challenging. The good news? You don’t have to start from scratch to have your own business. Consider franchising or buying an existing business.

12. Access to Resources and Information for your Business Plan from the Center • Align with opportunities • Adapt to change • Optimize performance • Meet with a SCORE mentor • Discuss goals and objectives • Design a plan • Monitor and measure results

13. Project Delivery Systems and Contract Risk Management

14. The Construction Management Association of America https://www.cmaanet.org Note example of projects: Transportation

15. Resource tab Articles & Whitepapers The Construction Management Association of America https://www.cmaanet.org Note example of projects: Transportation

16. Construction Management Professionals Oversight • Owner • Architect • General Contractor • Trade Contractors • Sub Contractors • Advise • Oversee Construction • Share risk • Assure success

17. Construction Management is leading teams The CM often leads a team of specialists. • scheduling, • safety, • cost estimating, • design, • quality assurance, • value engineering, • commissioning, • construction inspection, • risk management, and more. Most CMs have backgrounds in civil engineering; many are contractors or architects.

18. Projects Phases • THE PLANNING PHASE • THE DESIGN PHASE • THE BIDDING PHASE

19. THE PLANNING PHASE Activities necessary before full design • business case development • analysis and approval • preliminary project size • scope and location • preliminary budgeting and scheduling • procurement methodology • estimates of profitability and/or ROI

20. THE PLANNING PHASE • Thoroughly Define Scope of Work • Active Stakeholder Involvement • Define Project “Success” • Realistic Budget • Achievable Time of Performance • Manage to Budget • Appropriate Project Delivery Method • Organizational Skills and Gaps • Risk Identification and Analysis

21. Bridging Documentation • Protects the interests of the project owner • Final design and construction responsibility is on the contractor • Owner is fully protected • Contractor has full design-build responsibility • Efficient, effective, saves time and costs • Public Agencies require more project definition

22. Project definition • provides a basis for bids and agreement • identifies technical issues, risks, and project constraints • conveys lifecycle criteria • avoids unnecessary owner commitments • maximizes innovation opportunities • establishes quality assurance criteria

23. Project definition Conveying required elements • technical design concept • performance criteria • Innovation • Cost • Schedule • Transparency • Quality Control

24. Project definition • Risk allocation • Market conditions • Terms of contract • Procurement process • Selection method • Incentives and disincentives • Alternates • Project selection

25. Project definition • People • Front-end process • Bridging document quality control • Design submittals • Consistency • Writing style and organization • Pay item list and item descriptions • ‘Bidability’ of bridging documents

26. THE DESIGN PHASE • Change Order/Claims Prevention Review • Freeze Design • Tailored Scheduling Specification • Payment for Changes Section – • Consequential Damages Clause • RFI Specification • Project Team • Adequate Design Budget • Sufficient Design Time • Consider BIM/VDC • Site Investigation • Project Management Processes • Incentivize Contractor Performance • Use Standard Form Contract Documents • Bonding Requirements • Insurance Requirements • Biddability/Constructability Review • Operations and Maintenance Review • Pre-purchase Owner Delay • Substantial/Mechanical Completion • Liquidated Damages • Actual Damages • Escrow Bid Documents (“EBD”)

27. THE BIDDING PHASE CONTRACTORS • Read the Contract • Do Not Underbid • Bid Exclusions, Assumptions and Clarifications • Use Subcontractors wit proven Capabilities OWNERS • Bid Inquiries • Pre-Bid Conference and job Walk • Do NOT accept “Substantially low” Bids • Best Value Selection Method • Validate BIM/VDC Skills • Status of Design • Do not subcontract soley on price for specialty work • Do not accept unquantifiable risks • Dispute potential index

28. Questions WEEK Three: Management

29. Upcoming Events • Elevator pitch workshop TBD • Public Works Networking Event Feb 19 • Lead abatement training March 4 • Disparity Study Meeting March 20 • How to select your Business Banker Workshop • How to select your Insurance Partner Workshop • How to select your Business Accountant Workshop