6. Wikipedia:
Planning (also called forethought) is the process
of thinking about and organizing the activities
required to achieve a desired goal.
…combines forecasting of developments with
the preparation of scenarios of how to react to
them
7. Setting Goals
Thinking
Forecasting/Visualization of Future
Organizing
How to React – Courses of Action
(Managing proactively is better!)
8. Both Internal and External Uses:
Management
Equity Financing – Investors
Debt Financing – Lenders
Business Development –
e.g. strategic partners, suppliers, distributors,
landlords, regulators, community groups, etc.
9. All Levels – CEO to dishwasher
Strategic – Long-term organizational
goals. Executive function.
Operational/Tactical – Day-to-day
management. Managers
Individuals – Organization of work.
Personal and career
10. BOARD OF DIRECTORS – Key Strategies, L-Term Goals,
Policies, Values
CEO – Competitive Strategies (Marketing), Overall Business
Development, Strategic Relationships, Exec Team-
Building/Organization/Capital Preparedness
PRESIDENT – Overall Business/Organizational Mgt.
VPs – Overall Departmental/Functional development and
management
DEPT. MANAGERS, SUPERVISORS – Operations,
staffing, budgets..
Large Organizations:
11. Owner/Managers – Wear many hats
Both Internal and External People –
Employees/staff and external consultant,
advisors, service providers
12. Avoid Surprises – Anticipate future events
Prepare for what ever happens
Cheaper to “make mistakes on paper”
Organize Complexity
See things more clearly – how pieces fit
together and interact
13. Definition of goals
Definition of assumptions
Strategic allocation of scarce resources
Coordination
Alignment – Working with same concepts and
principles and goals
Improved Efficiency
14. Confusion
Become reactive (instead of proactive)
Everyone makes their own plans
“System” deteriorates
Unhappy customers
Loss of competiveness
15. Clarity, focus on key strategies
More proactive
Better integration/coordination
Satisfied customers
Greater Competitiveness
34. ► The activity
► set of institutions
► and processes
► for creating, communicating, delivering, and
exchanging offerings
► that have value for customers, clients,
partners, and society at large.
35. Responsibility of the managing leadership within a business, not a
separate function.
There is only one valid definition of business purpose: to create a
customer… Because it is its purpose to create a customer, any
business enterprise has two — and only these two—basic
functions: marketing and innovation…
Marketing is so basic that it is not just enough to have a strong
sales department and to entrust marketing to it. Marketing is not
only much broader than selling; it is not a specialized activity at
all. It encompasses the entire business. It is the whole business
seen from the point of view of its final result, that is from the
customer’s point of view. Concern and responsibility for marketing
must therefore permeate all areas of the enterprise..
36. The function that links the consumer, customer, and public to the
marketer
through information used to
identify and define marketing opportunities and problems;
generate, refine, and evaluate marketing actions
monitor marketing performance; and improve understanding of
marketing as a process.
specifies the information required to address these issues,
designs the method for collecting information,
manages and implements the data collection process,
analyzes the results,
and communicates the findings and their implications.
37. Captures/specifies/organizes all projected, quantifiable assumptions
about the enterprise, including hard and soft resources, growth and
development processes, sources of income, costs, expenses,
investments, sources of capital, financial structure, and all sources and
uses of funds.
Requires the participation/input of planners and managers most
familiar with, and responsible for, the various areas of the enterprise
Structures and charts a systematic roadmap to meet the needs of the
organization/operation itself, and that of each and all stakeholders
38. Aids in strategic, systems-oriented allocation of resources
Specifies key strategic development/value-creation goals and
milestones
Informs the architecture and key monitoring points for Management
Information Systems
Allows for “stress tests” and other sensitivity analyses
Allows for efficient periodic updating of plans
39. Yields data for work products needed for fundraising and stakeholder
communications and relationship management
Provides clear analyses for investors, lenders and entrepreneurs to
understand their investments and returns
Thoroughly prepares entrepreneurs, owners and executives for
negotiations with others vying for a piece of the pie. Enables strategic
control of what, how much, and how financial information is shared.
Conveys/sells the capabilities and professionalism of an entrepreneur,
business and management team.
40. Pre-operations/organization budget
Startup operation at a loss
Sales projection / development
Break-Even-Point
Required operating loss reserves
Continued growth development
Running rate
Financial structure – debt / equity
Investor analysis
Lender analysis
Sustainability until next value inflection point/value
milestone/exit
43. DEMAND VS. SUPPLY = GAP?
COMPETITIVE STRATEGY:
CUSTOMER-FOCUSED MISSION
◦ Vision/Mission
◦ Value-Proposition
◦ Raison D’etre
44. Does my business idea have potential?
What are my source(s) of finance?
Do I have experience in the field or know
someone who does?
Where will my business be located?
How many employees will I hire?
45. What is a Business Plan?
A roadmap to business success
47. ◦ Executive Summary (1- 2 pgs.)
◦ Product and/or Service Description
◦ Financial Plan
◦ Marketing Plan
Analysis
Need
Target Market
◦ Competition
48. What is a FICO (Fair Isaac Corp) Score?
◦ Measures Credit Worthiness (Risk)
◦ Score Range from 300 to 850
◦ Determines whether Banks will Approve or
Deny You Credit
◦ Determines Your Loan
Interest Rate
49.
50. Separate Personal funds from business
◦ Open a business bank account
Obtain a Credit Card & Merchant
Account
◦ Expand Customer Base (short term supplies
- network or outreach)
◦ Increase Sales & Profits by accepting
Debit and Credit Cards
51. Business Name or DBA (Doing Business As)
is your legal business name
You don’t need a DBA if?
◦ Using part or all of your surname plus the
service or product description (i.e. Mr.
Jones Auto Repair versus JS Auto Repair)
52. If you are not using your legal name you
must:
◦ Contact the County of S.D.
Assessor/Recorder/County Clerk’s Office
◦ File a Fictitious Business Name
◦ Check to Ensure the name is not already in
use
53. Sole Proprietorship
General Partnership
“C” Corporation
“S” Corporation
Limited Liability Corporation
54. PROS CONS
Simple Formulation
(i.e. fictitious business
name, license, permit)
Minimal Cost (business
license, public
announcement)
No Special Business
Income Tax Rates
Bankruptcy – Company
& Individual
Not Protected from
Liability
55. PROS CONS
Partnership Pays No
Tax (Individual Return)
Inexpensive to Create
and Maintain
Partnership Agreement
Partner Liable for Debt
and Legal Liabilities
Third Party Issues –
Partnership Comes
Under Fire
56. Identical to General Partnership
Difference is Limited versus General
Only Liable for Capital Investment
No Involvement in Company Management
Allows Shared Profits without Losing More
than their contributions
57. PROS CONS
Legal Entity which Files
Its’ Own Taxes
Responsible for Its’
Own Dealings (Liability)
Unlimited Number of
Shareholders
Expensive to Begin &
Maintain (annual fees)
Board of Directors
Stock Must be Issued
Double Taxed on
Dividend Income (to
avoid roll-over)
58. PROS CONS
Responsible for Its’
Own Dealings (Liability)
Shareholders can
claim their share on
personal income taxes
(avoids double
taxation)
Expensive to Begin &
Maintain (annual fees)
Limited to a Max. of 75
Shareholders
Not Double Taxed on
Dividend Income
59. Hybrid of a Corporation and Partnership
Identical Tax & Liability as a Corporation
Same Management Structure as Partnership
Articles of Organization are Submitted to
the State
Operating Agreement (can be verbal)
60. Why do I need Business Insurance?
Lawsuits, natural disasters and injuries to
you or your employees could threaten your
business at any time. Obtaining business
insurance is critical to the existence of your
business.
61. If possible hire an
attorney to review
the contract/lease
agreement
Read all Terms
and Conditions
(including the fine
print)
62. The city and type of business determines
what licenses and permits you will need
Search for your industry’s business
license and permits through the Cal gold
website:
◦ www.calgold.ca.gov
63. There are more than 200 Regulated
Businesses
◦ State Department of Consumer Affairs
www.dca.ca.gov
◦ Police Regulated - S.D. Police Dept
www.sandiego.gov/police/
64. Seller’s Permit
◦ Selling Tangible
Personal Property
How to obtain a Seller’s
Permit
◦ State Board of
Equalization
www.boe.ca.gov
65. What is an EIN Number?
Why do I need an EIN Number?
Where do I obtain an EIN Number?
◦ Internal Revenue Service
◦ (800) 829-3676
◦ www.irs.treas.gov
67. Ensure the Feasibility of Your Business
Business Research
Business Plan Preparation
Get Your Finances in Order
Utilize Small Business Resources
68. Website - http://www.growmybiz.org
How You Can Use our Services
* Workshops * Counseling
10-Key Steps to Starting a Business
Business Plan Template
S.D. SBDC Business Training Center
We are here to Serve
You!
69. SBDC Can Help You!
Our Mission is to provide superior consulting
& training to small businesses resulting in
entrepreneurial success & growth &
prosperity for California.
San Diego SBDC
Southwestern College Higher Education Center
880 National City Boulevard, Suite 103
National City, CA 91950
Tel. (619) 482-6391—Fax: (619) 216-6692
www.growmybiz.org