score tailored seminars & workshops: an overview

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SCORE Tailored Seminars & Workshops: An Overview

Manage and Grow Your Existing Business

V.20100601


Special Thanks To Our Sponsors


Classroom Safety – Argosy U

Emergency Exits

Restrooms

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Workshop Agenda

• Introductions• Strategic vs. Operational Time Management• Updating Business Plans• Dealing with Continual Change• Accounting Information Management• Putting the Internet to Work for Your Business

“Bright” ideas worth your consideration


Successful and experienced executives acting as volunteers.

National web site, www.score.org, provides useful information and resources for small business.

Seminars and workshopsFree Mentoring

One-on-oneEmail mentoring

Contact www.score-suncoast.org

About SCORE


Mentoring Locations

SCORE Office2801 Fruitville Road Suite 280

Manatee Chamber of Commerce Downtown and Lakewood RanchSarasota Chamber of CommerceVenice Chamber of Commerce

Your Place of Business

Location convenient to you and your mentor


Go Around the Room

Tell everyone:– Your Name– What type of business you

are currently operating– What you hope to get our of

this session– 60 seconds!

Introductions


Reality: Business Success

Percent of New Businesses >1 Employee after Four Years

(Source: SBA)

1.Lack of planning2.Insufficient capitalization

at start-up 3.Mismanagement of

cash flow4. Improper pricing


Common Sense Business

Starting, Operating and Growing a Small Business

by Steve Gottry

FANAFI PRINCIPLE?

1. Profitable Ideas: Copied by competitors – just a matter of time

2. Technology Innovation: Profitable today – possibly worthless tomorrow

3. Minimum Entry Barriers: Competitors will pop-up like weeds

Frustrating Realities for Entrepreneurs:

Find A Need And Fill It


Strategic andOperational Tasks


Strategic and Operational Tasks

How is your time currently allocated?

Do you spend all your time working IN the business?

Do you spend any time working ON the business?


Strategic vs. Operational Tasks

Cruise Line Management vs. Ship Captain Analogy

Strategic Operational

AdvertisingBookingsCompetitionCrew HiringCustomsDestinationsEntertainment BookingMenu PlanningPort of CallsSafetyShip RegistrationsTraining

AccommodationsBaggage HandlingCrew EvaluationsDining Room ServiceEvacuation Meal PreparationNavigationRoom ServicePassenger SafetyPassenger Satisfaction RefuelingWeather Changes

Large Business

Small Business

Not performed on ship Performed on ship


Strategic Examples

1. Conceptualize: (Vision) - Product & Service, Customers, Costs, etc.

2. Organize: (Structure) - Who will do what and when?

3. Implement: (Process) - Space, Hiring, Professional Support

4. Motivate: (Commitments) - Clear statements of what needs to be done

5. Analyze: (Information) - Market Opportunities

6. Adapt: (Changes For Survival) - Anticipate continual change

NOT Daily Tasks

“FANAFI”


Operational Examples

Daily Tasks

Customer Relationships - Products, Services & Support

Time Management - Running Business & Fixing Problems

Price & Cost Controls - Competition & Supplier / Vendors

Employee Relations - Satisfaction & Turnover

Record Keeping - Input to Accounting Processes

Marketing & Advertising - Prospective Customers


Keeping a Time Log – Measure Activities

8:00 – 8:30

8:30 – 9:009:00 – 9:309:30 – 10:00

10:00 – 10:3010:30 – 11:0011:00 – 11:30

11:30 – 12:00

12:00 – 12:3012:30 – 1:00

1:00 – 1:30

1:30 – 2:002:00 – 2:302:30 – 3:003:00 – 3:303:30 – 4:004:00 – 4:304:30 – 5:00

S O

Task/Accomplishment

1. Any ti

me le

ft to

refre

sh your m

ind?

2. Any ti

me le

ft to

dre

am about t

he futu

re?

XX

New Product Planning MeetingMeeting Continued

X ABC Customer Complaint


List 5 Strategic things to want to do more and how you will accomplish the change

Prioritize 1(now) – 5 (within 6 months)

List 5 Operational things to want to do less. . .

Prioritize 1(now) – 5 (within 6 months)

10 minutes – 5 minutes to share

Better Balance- Exercise 1


Business Plan Updates


Is your Business Plan still relevant?

How often do you review it?

Do your employees understand it?

Business Plan Status


Business Plan Outline (Typical)

1. Table of Contents (Easy Reference)

2. Executive Summary

3. Company Description and Mission

4. Products and Services

5. Marketing Plan

6. Operational Plan

7. Management and Organization

8. Personal Financial Statement

9. Start-up Expenses & Capitalization

10. Financial Plan

11. Appendices


Updating Your Business Plan

Mission

Objectives

Critical Goals

Initial Action Plans

Strategy

Operations

MEASUREMENTSEXPERIENCE


Rethinking Mission Statement

• Still reflects changes in business climate?

• Still provides guidance to daily decision making?

• Still provides a visionary picture of the future?

Is current economic condition and competitivesituation consistent with originally stated mission?


Operational Mission

OriginalMission

Statement

•Brief•Generalized •Communications•Processes•Bank Loans

EvolvingMission

Statement

•Relevant Details•Gain From Experience •Competitive Pressures•Changes to Processes•Expanded Business Plan

Time

Business Plan


Goals Need Updating?

OriginalBusiness

Goals

Dreams & Ideas

Many Unknowns

Designed to Get Business Started

EvolvingBusiness

Goals

•More Realistic•Operational Experience •Successes & Failures•Reacting to Competitive Pressures & Climate

Time


Updating Business Goals

Specific

Measurable

Attainable

Relevant

Trackable

Effective Goals Contain 5 Parameters:

Lease 3 new 15 minute parking spaces for “Carry Out”customer use only. Evaluate “carry out” sales over 6 monthsto determine extent that these new spaces increase sales.


“Mini” Goal Example

Do not assume that continuing operations usingsame “old” strategies will yield different results.

Customer Satisfaction Surveya) Ten question maximum (include key demographics) b) No longer than 2 minutes to completec) Pilot with associates for feedback & needed changesd) Finalize Survey and administer for at least 30 dayse) Evaluate results & identify shortcomings

-----------------------------------------------------------------------------------1. Develop approaches to address each shortcoming2. Insert “temporary” changes into business operations3. Observe impact on key performance parameters4. Make promising “high payback” changes permanent


Managing Change in Your Business

Assume tomorrow will be different than today


Change During Turbulent Times

MakingProfit

Time

• New Feature Development• New Offerings• New Alliances• Creative Service / Support• Competitive Analysis• Test Market Opportunities

• Phase Back Operations• Close Locations• Reduce Inventory on Hand• Reduce Costs• Eliminate Positions• “Paradigm Shift” Thinking

BreakingEven

May Requirea Revised

Business Model

LosingMoney


Predictable Stages of Change

Persevere with Enthusiasm & Commitment

Pro

du

cti

vit

y

BeforeChange

Implement Change

Return toPrevious

level

ProductivityIncrease

Time

Change may look like failure about mid point

Manage the change to MINIMIZE the productivity dip and recover quickly!


Change Management Examples

1. Create more efficient & predictable processes

2. Improve customer service & satisfaction

3. Improve product or service quality

4. Collect more accurate business information

5. Lower expenses while maintaining quality

6. Identify automation opportunities


Change Management Steps

1. Determine assumptions (what needs to be done)

2. Break down “Major Goal” into related mini goals

3. Develop realistic schedule to accomplish

4. Decide “who” will be assigned to do “what”

5. Identify required resources to make it happen

6. Establish milestones (interim successes)

7. Identify potential problem areas (resolve as detected)

8. Monitor progress (don’t expect too much – too soon)


Examples of Changes

Improve or Maintain Profits

• Introduce New Product or Service

• Expand to other locations

• Incorporate new technologies

• Customer support website capability

• Innovative sales / marketing concept

• Employee incentive program

• Match or beat competitor offering


Financial Measures and Performance


Measures of Effectiveness

Parameters that delineate “Overall Health” of Business

• Where is business now?

• Where was business before?

• Where is business going in future?

Sufficient categorization to identify & analyze opportunities

New sources of salesRepeat customer trendsInventory & supplier pricingExpense item increasesCustomer buying habits changing


Break Even AnalysisHow many sales do you need to make, at what price, at what

costs and in what time period to be profitable?

Take periodic snapshots of Measures of Effectiveness - at least Monthly

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Units Sold x 100

Do

llars

Fixed Costs Fixed+ Semi Fixed

Total Fixed + Variable Total Sales

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Units Sold x 100

Do

llars



$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Units Sold x 100

Do

llars



$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

Units Sold x 100

Do

llars



Example:Sales Price $10 eaVariable Cost - $ 5 ea(Contribution Margin = $ 5 ea)

Fixed Costs $10,000Semi Fixed Costs

Influenced by volume but not associated per unit (example - commission tiers, temporary labor, office supplies)

Break Even is about 2,600 units or $26,000 sales rate per period


Accounting Information Management

Snapshot Measurements of Key Parameters (Examples)

SalesCost of

Goods Sold% NewCustomers Expenses

•Expected•Source •Size•Market Segment•Competition

•Vendors•Contractors•Order Size•Inventory•Inflation Factor

•Repeat •Satisfaction•Advertising •Surveys•Coupons

•Ongoing•Trends•Technologies•Productivity•New Processes

Previous Measurement Current Measurement

Lo Lo Lo LoHi Hi Hi Hi

Norm Norm Norm Norm


What are the key financial measures you review at least monthly?

What additional measures do you think would help you monitor business performance?

How will you be able to implement the new measures?

10 minutes – 5 minutes to share

Business Measures- Exercise 2


QuickBooks Accounting Software

Select fromAvailable Featuresto tailor application

to your needs

•Common Business Transactions

•Payments (Vendors & Contractors)

•Invoices (Customers)

•Accounts Payable

•Accounts Receivable

•Payroll Checks

•Track Expenses

•Bank Account Interface


QuickBooks Home Page

Vendors

Customers

Employees

PurchaseOrders

ReceiveInventory

SalesTax

EnterBills

PayBills

Invoices Payments

PayEmployees

Liabilities PayrollForms

Statements

Company

Banking

Deposits

WriteChecks

Chart ofAccounts

On-LineBanking


Peachtree Accounting Software

•Manage Cash Flow

•Invoice Customers

•Write Checks or Pay Electronically

•Manage Inventory

•Track Performance Against Budgets

•E-Mail Alerts for Problem Areas

•Analyze Business from 125+ Reports

Basic, Standard & Advanced Versions


Peachtree Functional Structure

Job Costing Inventory GeneralLedger

FinancialStatements

AccountsReceivable

AccountsPayable

PayrollTime

and Billing

Customized Quick SetupAccountingAdvertisingAutomotiveBusiness ServicesConstructionDentistsEducationEngineeringFarming/AgricultureFood Stores

General ContractorsHealth ServicesHotel/MotelInsuranceLegal ServicesManufacturingNot-For-ProfitPrinting ServicesProfessional ServicesReal Estate

Repair ServicesRestaurantRetailSales/ServiceSocial ServicesSpecialty ContractorsTransportationWholesale Distributors

> 75Business

Types


The Internet and Your Website

Easy access for information about your business


Establishing a Website

1) Do it Yourself – Takes time-you may not want to learnMicrosoft Applications / Hosting Templates / Open Source Software such as Komposer or Blogger

2) Hire a Web Designer / Developer - $$- Many listed - Local Yellow Pages / Google Search

3) Arrange With an Internet Service Provider (ISP)- Bellsouth - EMBARQ- Windstream - FullService- Hosting 24 - Verizon- Basic ISP - DotEasy - Etc.

4) Small Business Total Solution- Yahoo (Example Shown)


Search for a Web Designer/Developer


Website Essentials for Effectiveness

1) Descriptive & Visually Appealing- Catches eye and interest without delay

2) Loads Quickly - No large photos or multimedia on Home Page

3) Contact Information Easy to Find - Button click to name, locations and maps

4) Frequently Updated- Improved Search Engine attention and hits

5) User Interaction Provisions- Detailed information, surveys, e-mail, phone


Manasota SCORE Client Websiteswww.thetranslationlink.net (Alina Mugford)

Marguerite Barnett - www.mandalamedspa.com

Lori Whittle - www.balancebasics.net

Patricia Persson – www.hobbyhallprotocol.com

Craig Berberich – www.leaogear.com

Rachel Van Atta - www.thehivestore.com


Attracting Customer Traffic to Website

Home

Page 1

Page 2a

Page 2

Services/ProductsInstructionsSpecificationsSupportMenus/PricesTestimonialsQ & AContacts

•Business Cards

•Brochures

•Descriptive Domain Name

•Advertisements in Publications

•Trade Links (Related Businesses)

•Submit to Web Directories

•Short Articles

•Presentations

•Search Engine Optimization (SEO)

•Pay for Click

Your Website


Important Website Characteristics

1) Satisfies visitor’s keyword or link expectations

2) Loads and displays quickly

3) Easy process to obtain more information

4) Frequently updated with new & exciting information

5) Provides visitor interaction - Pictures / Demos - Q & A - Coupons, Contests, Games? - Feedback & questionnaires


Selling On The Internet

Start-up costsEasy to navigate siteTracking customer buying habitsSecure site/credit cards24/7 serviceDistribution/returns/repairsUse of search enginesLinks to partners/vendors


Yahoo Small Business Hosting Example

www.smallbusiness.yahoo.com/webhosting


Social Networking

Recent on-line additions to the Marketing channels that businesses should consider

Real time updates for potential customers

“Broadcast” specials or new offerings to other network members

Takes steady effort to keep fresh and current – recipients want to be “connected” to new information


Review

Today, we provided an overview for:

• Strategic vs. Operational Time Management• Updating Business Plans• Dealing with Continual Change• Accounting Information Management• Putting the Internet to Work for Your Business

A SCORE mentor can help you reach your goals!


• Fill out the online request for free, one-on-one mentoring.– Right after this session!– www.score-suncoast.org– A mentor will be assigned in about

a week– Mentor will call you to setup a

mentoring appointment • Ongoing phone and/or face-to-face

guidance to aid completion improvement plans

• Mentor will be available for an ongoing relationship

Do You Have A SCORE Mentor?

Take advantage of this free service to help you make the best decisions as you grow and improve your business!


Visit www.score-suncoast.orgFor Schedules and Registration

SCORE WorkshopsQuickSTART Series for New Business Startups

Start-up Basics

Business Concept

Marketing Plan

Financial Projections

Funding Sources & Next Steps

Specialized Workshops

Building Your Business Plan

Manage and Grow Your Existing Business


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score tailored seminars & workshops: an overview

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