MGT253 - Owning and Operating a Small Business

Write a Business Plan is a simple course to help you get started with your business plan. A business plan is a written document describing an organization's core business activities, objectives, and plans to achieve its goals. Your business plan should outline your goals for your business, and how you intend to achieve them. It is a blueprint for growing your business. A business plan is a valuable roadmap for resourcing and marketing your business to its best advantage. A business plan helps you to crystallize what you are doing and identify priorities. It enables you to look at your product or service objectively, and to better understand your business strengths and weaknesses, how your business fits into the market, and challenges you might face. In this course psychologist Peter Quarry will help you learn essential elements for your business plan

Creating a business plan involves several key elements ^1 2 3 :

1. Executive Summary: This is a brief summary of your plan. It should communicate your business’s name, what the products or services you’re selling are, and what marketplace you’re entering ¹.

2. Company Description: This contains more specific information about your business, including your business’s registered name, your business address, any key employees involved in the business, and the structure of your business (such as sole proprietorship, limited liability company (LLC), partnership, or corporation) ¹.

3. Market Analysis: This involves a detailed examination of your industry, competitors, and target customers ³.

4. Organization and Management: This section outlines your business’s organizational structure and identifies the company’s key team members, their duties, and how they contribute to your business ³.

5. Product or Service Description: This is where you describe what you’re selling or what service you’re offering ³.

6. Marketing and Sales Strategies: This is where you detail how you plan to attract and retain customers ³.

7. Funding Requirements: If you’re seeking funding, outline your funding requirements in this section ³.

8. Financial Projections: This section should include financial forecasts for the future, setting sales goals, budgeting for expenses, and predicting profits and cash flow ².

Remember, a good business plan is much more than just a document that you write once and forget about. It’s also a guide that helps you outline and achieve your goals ². After completing your plan, you can use it as a management tool to track your progress toward your goals ².

Learn more:    1. forbes.com    2. bplans.com    3. learn.g2.com    4.sba.gov

Examples of Business Plans - 
Use the Business Plans Handbook to get examples of business plans for different businesses. - 
http://go.galegroup.com/ps/i.do?id=0PHU&v=2.1&u=mcc_pv&it=aboutSeries&p=GVRL&sw=w

Actual business plans compiled by, and aimed at, entrepreneurs seeking funding for small businesses. Presents sample plans taken from businesses in the manufacturing, retail and service industries which serve as examples of how to approach, structure and compose business plans. (Click on book cover!)

Web Sites with Business Plans
 

• Bplans.com - This site contains sample business and marketing plans as well as articles related to starting a business. Contains ads.
   
• Write your Business Plan - SBA - Your business plan is the foundation of your business. Learn how to write a business plan quickly and efficiently with a business plan template.

Databases:

• Small Business Reference Center - Click on Start-up Kit and Business Plans

Small Business Reference Center: an excellent resource for small business owners, access to legal forms, sample business plans, state-specific demographic information, advice on managing employees, understanding legal issues, etc. Indexes magazines, journals, reference books, and videos.

Business Source Premier: full-text articles for more than 2000 business journals, as well as market research reports, industry reports, country reports, company profiles, and SWOT analyses. 

•  Search on keywords: demographics and ____ (your topic)
•  Look at different publication types especially the Industry Profiles & SWOT Analysis
•  Company profiles tab at top of the screen. Use this to view full Datamonitor reports, which include SWOT analysis, top competitors, revenue analysis, etc. 

First Research: First Research delivers clear, consistent, and timely Industry Intelligence via over 500 Industry Profiles covering 1000 industry segments; dynamic fresh news & social content and daily alerts; quarterly Industry alerts to stay abreast of changes in the industries that are most important to you and state profiles to monitor monthly employment, business, and real estate trends in each of the 50 US states.

Phoenix Business Journal & the Book of Lists: top companies in specific industries locally. Also, use the “Phoenix Business Journal” to find regional business news. Located in the middle of the Career & College Resources section of the PVCC Library.

Data Axle Reference Solutions (Was ReferenceUSA): ReferenceUSA is a robust database that offers something for everyone. Small businesses and entrepreneurs can create informed business plans with ReferenceUSA by using its sophisticated “mapping feature” to target the location and proximity of competitors. ReferenceUSA even allows you to search for minority businesses by gender or ethnicity, which is very important for our community. Video on how to use the Consumers / Lifestyles database.

Market Segmentation: Is the process of subdividing a market into distinct groups of customers with similar needs, such as:

• Geographically
• Demographically
• According to age, race, gender, education, religion
• Psychographically (according to interests, attitudes, opinions and needs)
• Behavioristically (according to usage patterns, history, responsiveness or loyalty)

Using Claritas.com to obtain Zip-Code Market Segmentation Information:  Claritas.com provides demographic and consumer segmentation profiling data taken from the U.S. Census - to learn more about the consumer lifestyles of people who live in your neighborhood, click on the following links:

• Claritas Zip Code Lookup 
  Enter your zip code area where you are setting up your business or to target an area you wish to sell. Enter the ZIP CODE to learn about the demographics and lifestyles of consumer segments in your neighborhood.
• Claritas - Segment Details - 68 consumer type segments about who your consumer is about.  Check it out

Find out who lives in your target area:

Go to the Census Bureau and look at the right column under “Population Finder” and enter zip code.  On the new page, click on “Fact Sheet” for more demographics.  

Use American Community Survey to view estimates or projections since the last census. 
Click on “Data Profiles,” then limit by geographical area (e.g. Metropolitan Statistical Area). Search under subject tables if you want to narrow by a specific subject.

Reference Solutions (formerly ReferenceUSA) is a robust database that offers something for everyone. Small businesses and entrepreneurs can create informed business plans with this database by using its sophisticated “mapping feature” to target the location and proximity of competitors. Reference Solutions even allows you to search for minority businesses by gender or ethnicity, which is very important for our community. Video on how to use Consumers / Lifestyles database.

Nine Steps to Effective Business Problem Solving by Martin Zwilling Jul. 19, 2011.

1. Take the time to define the problem clearly. Many executives like to jump into solution mode immediately, even before they understand the issue. In some cases, a small problem can become a big one with inappropriate actions. In all cases, real clarity will expedite the path ahead.

2. Pursue alternate paths on “facts of life” and opportunities. Remember, there are some things that you can do nothing about. They’re not problems; they are merely facts of life. Often, what appears to be a problem is actually an opportunity in disguise.

3. Challenge the definition from all angles. Beware of any problem for which there is only one definition. The more ways you can define a problem, the more likely it is that you will find the best solution. For example, “sales are too low” may mean strong competitors, ineffective advertising, or a poor sales process.

4. Iteratively question the cause of the problem. This is all about finding the root cause, rather than treating a symptom. If you don’t get to the root, the problem will likely recur, perhaps with different symptoms. Don’t waste time re-solving the same problem.

5. Identify multiple possible solutions. The more possible solutions you develop, the more likely you will come up with the right one. The quality of the solution seems to be in direct proportion to the number of solutions considered in problem-solving.

6. Prioritize potential solutions. An acceptable solution, doable now, is usually superior to an excellent solution with higher complexity, longer timeframe, and higher cost. There is a rule that says that every large problem was once a small problem that could have been solved easily at that time.

7. Make a decision. Select a solution, any solution, and then decide on a course of action. The longer you put off deciding on what to do, the higher the cost, and the larger the impact. Your objective should be to deal with 80% of all problems immediately. At the very least, set a specific deadline for making a decision and stick to it.

8. Assign responsibility. Who exactly is going to carry out the solution or the different elements of the solution? Otherwise, nothing will happen, and you have no recourse but to implement all solutions yourself.

9. Set a measure for the solution. Otherwise, you will have no way of knowing when and whether the problem was solved. Problem solutions in a complex system often have unintended side effects which can be worse than the original problem.

    

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   Idea Generation & Problem Solving using the SCAMPER technique by Bob Eberle.
    
   SCAMPER is an acronym that stands for:
    
   S - Substitute
   C - Combine
   A - Adapt
   M - Modify
   P - Put
   E - Eliminate
   R - Reverse 
    

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Starting and operating a small business involves dealing with a variety of challenges. Here are some problem-solving methods that can help:

1. Define the Problem: When a problem arises, it’s important to thoroughly examine what led to the problem in the first place before jumping into creating a solution ¹.

2. Conduct a SWOT Analysis: This involves identifying the Strengths, Weaknesses, Opportunities, and Threats related to your business ¹.

3. Identify Multiple Solutions with Design Thinking: This approach encourages thinking outside the box and coming up with creative solutions ¹.

4. Conduct Market Research and Customer Outreach: Understanding your market and customers can help you identify potential problems and solutions ¹.

5. Seek Input from Your Team and Your Mentors: Different perspectives can provide new insights and solutions ¹.

6. Apply Lean Planning for Nimble Execution: This involves making quick decisions and being flexible to change ¹.

7. Model Different Financial Scenarios: Understanding the financial implications of different scenarios can help you make informed decisions ¹.

8. Watch Your Cash Flow: Keeping a close eye on your cash flow can help you identify potential financial problems early ¹.

In addition to these steps, there are also different problem-solving approaches such as the rational and creative approaches ². The rational approach involves defining the problem, brainstorming potential solutions, making a decision, and taking action. The creative approach, created by Sidney Parnes and Alex Faickney Osborn, involves generating lots of creative ideas in a brainstorm-style session, restating problems as questions, and being as open-minded as possible when coming up with potential solutions ².

There are also various problem-solving methodologies that can be helpful, such as the Kipling Method, the Simplex Process, the Failure Mode and Effects Analysis (FEMA), Hurson’s Productive Thinking Model, and the 5 Whys ².

Remember, problem-solving is a skill that can be developed over time with the right approach and tools ². It’s a critical skill for business owners and can help you navigate the challenges of starting and operating a small business.

Learn more:    1. liveplan.com    2. uschamber.com     3. leanscape.io    4. entrepreneur.com

A SWOT analysis is a strategic planning and management technique used to help an individual or organization identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning ¹. Here’s a breakdown of each component:

1. Strengths: These are the characteristics that give your business an advantage over others. They could include things like a strong brand, a loyal customer base, a strong balance sheet, unique technology, and so on ².

2. Weaknesses: These are the characteristics that place your business at a disadvantage relative to others ².

3. Opportunities: These are the elements in the environment that your business could exploit to its advantage ².

4. Threats: These are the elements in the environment that could cause trouble for your business ².

The SWOT analysis is designed to facilitate a realistic, fact-based, data-driven look at the strengths and weaknesses of an organization, its initiatives, or within its industry ². It’s often used by governments, nonprofits, and individuals, including investors and entrepreneurs ¹. The results of the assessment are often presented in the form of a matrix ¹.

It’s important to note that strengths and weaknesses are usually considered internal, while opportunities and threats are usually considered external ¹. The degree to which the internal strengths of the firm match with the external opportunities is expressed by the concept of strategic fit ¹.

Learn more:    1. en.wikipedia.org    2. investopedia.com    3. lucidchart.com    4. en.wikipedia.org

Conducting a SWOT analysis for your business involves several steps ¹:

1. Choose a Facilitator: This person will lead the SWOT analysis and ensure that all relevant factors are considered. This could be an organizational leader or an external facilitator for an unbiased input ¹.

2. Identify Strengths: Brainstorm the strengths of your business. These could be anything from a strong brand, a loyal customer base, unique technology, or a strong balance sheet ².

3. Determine Weaknesses: Identify the weaknesses of your business. These could be things like high employee turnover, outdated technology, poor reputation, or financial instability ².

4. Analyze Opportunities: Look at the opportunities available to your business. These could be things like a growing market, a strong economy, or a new trend that your business could capitalize on ².

5. Identify Threats: Determine the threats facing your business. These could be things like a shrinking market, increased competition, or new regulations that could negatively impact your business ².

Remember, the more diverse perspectives you have during the analysis, the more comprehensive it will be ¹. You can use a four-square SWOT analysis template or just make lists for each category ³. The goal is to make it easy for you to organize and understand the results ³.

After you’ve conducted your SWOT analysis, you should summarize your findings and plan your next steps together with your team ⁴. This will help you develop a plan to maximize your strengths and opportunities, and minimize your weaknesses and threats ².

Learn more:    1.indeed.com    2. blog.hubspot.com    3. bplans.com    4. smartsheet.com    5.wordstream.com

A four-square template for SWOT analysis is a simple and effective tool for organizing your analysis. It’s a visual representation of the SWOT analysis, which is divided into four quadrants ^1 2 :

1. Strengths: The top left quadrant is for listing the strengths of your business ¹.
2. Weaknesses: The top right quadrant is for listing the weaknesses ¹.
3. Opportunities: The bottom left quadrant is for listing the opportunities ¹.
4. Threats: The bottom right quadrant is for listing the threats ¹.

Each quadrant is dedicated to one of the four elements of SWOT, making it easy to compare items in all four categories ². This layout helps you visualize the internal and external factors affecting your business and how they relate to each other ¹.

Here’s how you can use a four-square template for your SWOT analysis ^1 2:

1. Find a suitable SWOT analysis template: There are multiple free templates online that you can download. They are predesigned to fulfill specific industry and business needs ¹.
2. Fill in each quadrant: List down the strengths, weaknesses, opportunities, and threats that are relevant to your business or project ¹.
3. Analyze and Interpret: Once you’ve filled in all four quadrants, analyze the results. Look for ways to leverage your strengths and opportunities, improve your weaknesses, and mitigate your threats ¹.
4. Develop Strategies: Based on your analysis, develop strategies to achieve your business goals ¹.

Remember, the depth and quality of the analysis depend on the information utilized and insights derived ¹. The template helps you organize and document the analysis; however, its effectiveness depends on critical thinking and interpretation of the SWOT analysis factors ¹.

Learn more:    1. wordtemplatesonline.net    2. smartsheet.com    3. bing.com    4. mural.co    5. stakeholdermap.com

• Entrepreneur.com Starting a Business 
  Current, helpful info from Entrepreneur magazine, including how to write a business plan, obtain financing, etc.
• SCORE: Is the nation’s largest network of volunteer, expert business mentors, with more than 10,000 volunteers in 300 chapters.
• Startup Nation: Source for Small Business Advice: Great resource for entrepreneurs, includes community space, articles, podcasts, online seminars and other information on all things small business.
• US Small Business Administration:
  Start-up FAQs, kits, information on government loans and locations of local SBA centers.