Business Planning Basics Tooele SBDC 4 Week Program

1. Business Planning BasicsTooele SBDC4 Week Program Week 4 Management & business plan summary Ryan Murray, MBA, CBA Elora McGovern

2. After this class you should: • Be able to improve your leadership capacity in business • Know how to write the management section of your business plan • Understand the importance of surrounding yourself with the right people • Avoid the pitfalls of “bad management” that will ruin any business

3. Leadership • What is leadership? • “Leadership is intentional influence.” – Michael McKinney • Anything you do or say will be repeated • Good or bad • Tires

4. 5 Leadership lessons you learn from your children • Kid President • You are a Role Model (watch what you say and do) • Honesty REALLY is the best policy • Inspires trust and admit your mistakes • Focus on Others’ Needs • Balance challenge and support • Develop the next generation • Be a leader who inspired growth and responsibility, not failure

5. 7 things Successful leaders do • They put relationships first • Make connections and keep them • They know that meaning matters • Know how your work works with the whole– not just your piece • They use humor • Builds positive emotions • They lead and live with their strengths • Know how to leverage your unique blend of strengths with others • They manage pessimistic thinking • Find control, “this too shall pass,” compartmentalize • They make their own luck • Sue goals with passion, don’t back down, brushes failure off, DON’T QUIT • They manage their energy • Works within their most efficient energy cycles

6. Business Plan – Management Section • Owners • Key Employees • Advisors

7. Business Plan – Management Section • Owners • People who have a significant equity stake • Key Employees • Individuals who are critical to the success of your business • Advisors • Qualified individuals with a significant interest in the success of your business who don’t have a significant stake

8. Business Plan – Management Section • Owners • People who have a significant equity stake • Resume Style • Key Employees • Individuals who are critical to the success of your business • Resume Style • Advisors • Qualified individuals with a significant interest in the success of your business who don’t have a significant stake • Name and Title

9. Business Plan – Management Section • Owners • People who have a significant equity stake • Resume Style • Owners can be Key Employees • Key Employees • Individuals who are critical to the success of your business • Resume Style • Key Employees can be Owners • Advisors • Qualified individuals with a significant interest in the success of your business who don’t have a significant stake • Name and Title • Advisors should only be advisors

10. Things to Consider for your plan • Banks/investors often want the management section first on the business plan • Getting the right team is essential for success • Don’t include non-relevant experience • You can include resumes in the appendix • Don’t “pad” your management team (everyone should be actively involved in the success of the business • If you are missing key people take the time to get them • (First Who, Then What http://youtu.be/EzIzEJq7caI)

11. Characteristics of a great leader Personal Management Assessment Tool • If you answered yes to 10 or more • You need to work on developing your management skills • If you answered yes to 5-9 • There are too many areas of concern to create a great company • If you answered yes to 2-4 • You still have some work to do before you will experience lasting success • If you answered yes to only 1 • Any 1 of these negative habits will significantly limit or ruin your chances for becoming a great company

12. Homework • Create a list of your management team • Contrast this with a list of key responsibilities, talent, experience needed • Write up the management bios • Identify your weaknesses as a manager/leader • Create a plan of action for overcoming these weaknesses

13. Week 3 (recap) Company Profile/ Organizing your plan

14. Business Registration • Entity Types (some of the most common) • Sole Proprietary • Partnership • LLC • S-Corp • Non Profit • Etc • For entity types and info http://corporations.utah.gov/index.html • Online registration https://secure.utah.gov/osbr-user/user/welcome.html

15. Business License • Business license is done through the city or county • Business registration is done through the state

16. Professional Licenses http://www.dopl.utah.gov/licensing/index.html

17. Putting It All Together Revenue - Expenses = Profit The financials are used to measure the success and track improvements Product/Service Relative Price Point Target Market Market Mediums Marketing Strategy Market Opportunity • Management • Successfully identifies a need • Is capable of meeting that need • Eliminates all bad behaviors and cultures • Has a clear focus and direction (mission)

18. Putting It All Together Static Information • Company Profile • Name • Entity • Location • Mission Statement • Company Vision • Product/Service Menu • Market Research • Operational Manual • Company Policies Dynamic Information • Management • Marketing Strategy • Financial Forecasts • Financial Statements

19. 6 Sections • Company Profile – A brief overview or explanation of your business • Product/Service – An analysis of your potential sources of revenue • Market Opportunity – Your portion of the revenue the total market will pay • Marketing Strategy – A detailed plan explaining exactly how you will sell, to whom, and at what expense • Management Team – Getting the right people doing the right things to make it happen • Financials – Measuring it and tying it all together