how to start a business and write a business plan john c. kelly, phd
TRANSCRIPT
How to Start a Business How to Start a Business and and
Write a Business PlanWrite a Business Plan
John C. Kelly, PhDJohn C. Kelly, PhD
CourseCourseMission StatementMission Statement
Each student to write a Each student to write a
business planbusiness plan
Topics by WeekTopics by Week
►What is a business?What is a business?► FinancialFinancial► FinancialFinancial
►MarketingMarketing►OperationsOperations►Wrap UpWrap Up
Instructor ProfileInstructor Profile
►Owned a computer software company for 17 Owned a computer software company for 17 yearsyears
► Served on company boardsServed on company boards► Business consultantBusiness consultant► SCORE VolunteerSCORE Volunteer► Angel investorAngel investor►Degrees in math, computer science, Degrees in math, computer science,
industrial engineering, business industrial engineering, business administrationadministration
Student ProfilesStudent Profiles
►NameName►EducationEducation►Work ExperienceWork Experience►Computer ExperienceComputer Experience►Business ExperienceBusiness Experience►Business IdeaBusiness Idea►Main concerns/questionsMain concerns/questions►Business description if existingBusiness description if existing
Discussion QuestionDiscussion Question
What is a business?What is a business?
What a Business is What a Business is not?not?
Something to keep you Something to keep you BUSYBUSY
What a Business is?What a Business is?
An organization created to An organization created to MAKE MONEY!MAKE MONEY!
Fundamental Business Fundamental Business FormulaFormula
Profit = Revenue – ExpensesProfit = Revenue – Expenses
TerminologyTerminology
►Profit ~ Earnings ~ IncomeProfit ~ Earnings ~ Income►Revenue ~ Sales ~ IncomeRevenue ~ Sales ~ Income
Classification of BusinessesClassification of Businesses
► Service versus productService versus product► Product: retail / wholesale / manufacturingProduct: retail / wholesale / manufacturing► Consumer versus B-to-BConsumer versus B-to-B► Vision: independence/wealth/life style/impactVision: independence/wealth/life style/impact► Growth: fast versus slow Growth: fast versus slow ► Size: large versus smallSize: large versus small► Capitalization: cash vs debt vs investorsCapitalization: cash vs debt vs investors► Risk: high versus lowRisk: high versus low► Legal Structure: proprietorship / partnership / Legal Structure: proprietorship / partnership /
corporationcorporation► Ownership: single vs multiple - public vs privateOwnership: single vs multiple - public vs private► Tax Structure: separate or individualTax Structure: separate or individual
Consumer versus B-T-BConsumer versus B-T-B
AttributeAttribute ConsumerConsumer BTBBTB
Work hoursWork hours Erratic: nights, WEErratic: nights, WE Normal: 8-5Normal: 8-5
Profit MarginProfit Margin LowLow HighHigh
BuyerBuyer EmotionalEmotional RationalRational
DistributionDistribution ExpensiveExpensive CheapCheap
Marketing Marketing CostCost HighHigh LowLow
Discussion Question:Discussion Question:
What core skills should a What core skills should a
business owner have?business owner have?
Core SkillsCore Skills
►Professional/Technical (product/service Professional/Technical (product/service knowledge)knowledge)
►PersonalPersonal►BusinessBusiness►OperationalOperational
Personal SkillsPersonal Skills
►AttitudeAttitude►Time ManagementTime Management►Money ManagementMoney Management►Communication Skills Communication Skills
(speaking/writing)(speaking/writing)►Quantitative thinkingQuantitative thinking
Business SkillsBusiness Skills
►Accounting/FinancialAccounting/Financial►SalesSales►MarketingMarketing►Personnel ManagementPersonnel Management►AdministrativeAdministrative
Operational SkillsOperational Skills
►OrganizationalOrganizational►AdministrativeAdministrative►ManagerialManagerial►ComputerComputer►Project ManagementProject Management
Reasons Businesses FailReasons Businesses Fail
►Lack of skillsLack of skills►Lack of planningLack of planning►Lack of commitmentLack of commitment►Lack of focusLack of focus►Lack of moneyLack of money
What is a Business What is a Business Plan?Plan?
Explanation of how Explanation of how you will make you will make
moneymoney
SWOT AnalysisSWOT Analysis
PositivePositive NegativeNegative
InternalInternal StrengthsStrengths WeaknessesWeaknesses
ExternalExternal OpportunitiesOpportunities ThreatsThreats
Discussion QuestionDiscussion Question
What makes a good What makes a good
mission statement?mission statement?
Mission StatementsMission Statements
►ShortShort►MemorableMemorable►MotivationalMotivational►FocusedFocused►RealisticRealistic
Mission Statement ExamplesMission Statement Examples► To enrich women’s lives through an unequalled business To enrich women’s lives through an unequalled business
opportunity opportunity ► To organize the world’s information and make it universally To organize the world’s information and make it universally
accessible and usefulaccessible and useful► To discover, develop, and deliver novel medicines and To discover, develop, and deliver novel medicines and
vaccines that can make a difference in people's lives. vaccines that can make a difference in people's lives. ► To be the most essential global internet service for consumers To be the most essential global internet service for consumers
and businessand business► To provide innovative, customized promotional products for To provide innovative, customized promotional products for
corporate America, delivering the highest quality product on corporate America, delivering the highest quality product on time – every time.time – every time.
► To help people and businesses throughout the world realize To help people and businesses throughout the world realize their potentialtheir potential
► To maximize the performance of computer systemsTo maximize the performance of computer systems
Mission StatementsMission Statements► To enrich women’s lives through an To enrich women’s lives through an
unequalled business opportunity unequalled business opportunity ► To organize the world’s information To organize the world’s information
and make it universally accessible and make it universally accessible and usefuland useful
► To discover, develop, and deliver To discover, develop, and deliver novel medicines and vaccines that novel medicines and vaccines that can make a difference in people's can make a difference in people's lives. lives.
► To be the most essential global To be the most essential global internet service for consumers and internet service for consumers and businessbusiness
► To provide innovative, customized To provide innovative, customized promotional products for corporate promotional products for corporate America, delivering the highest America, delivering the highest quality product on time – every quality product on time – every time.time.
► To help people and businesses To help people and businesses throughout the world realize their throughout the world realize their potentialpotential
► To maximize the performance of To maximize the performance of computer systemscomputer systems
► Mary KayMary Kay► GoogleGoogle► MerckMerck► YahooYahoo► G&G OutfilltersG&G Outfillters► MicrosoftMicrosoft► DatametricsDatametrics
HomeworkHomework
►Business DescriptionBusiness Description►SWOT AnalysisSWOT Analysis►Find an example of a company like Find an example of a company like
yours and analyze its web site yours and analyze its web site ►Write a mission statementWrite a mission statement►Be prepared to share with classBe prepared to share with class