Business Planning BasicsTooele SBDC4 Week Program

Ryan Murray, MBA, CBARichard Gonzalez, BS

WEEK 3MARKETING CONT.

After this class you should:• Understand how to develop an effective marketing strategy• Create a competitive advantage that is both competitive and

advantageous

• Know where to go to register/license your business• Be able to perform a company SWOT analysis• Develop a powerful mission and vision statement• Properly organize the pieces of your business plan

Developing Your StrategyPrice

QualityDifferentiation

Developing Your StrategyPrice

QualityDifferentiation

Relative Price Point

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Developing Your StrategyPrice

QualityDifferentiation

Developing Your StrategyPrice

QualityDifferentiation

The key is • Being able to beat the competition • Serve a market that isn’t being adequately

addressed by the competition

Rate Your Company’s Competitive Advantage• Competitive Advantage• Rate your company’s competitive advantage from 1 – 10 • (1 being little to none and 10 being virtually untouchable)

1 through 4: little to no chance of being profitable in the long run

5 through 7: reasonable profit potential with no significant growth

8 to 10: good competitive advantage

Discussion Points• Market Mediums• Marketing ROI• Measuring your results• Using a “control group” in your marketing

• Marketing Budgets• Marketing Mistakes• Not doing it consistently• Not budgeting for it• Not planning• Buying “whatever” • Not buying anything

Homework (yes, you get double)

• Establish a marketing budget and implement it into your financial forecasting. Make sure that your sales forecast is a function of marketing and write the relation as part of your business plan.

• Determine whether you are focusing on price, quality, and/or differentiation.

• If your competitive advantage is below 8, brainstorm with your management team ways to strengthen your competitive advantage.

• Provide a written description of your marketing strategy. Make sure that it is well enough written that someone outside of the business could implement the strategy based on your description.

Business Planning BasicsTooele SBDC4 Week Program

Ryan Murray, MBA, CBARichard Gonzalez, BS

WEEK 3COMPANY PROFILE/

ORGANIZING YOUR PLAN

Business Registration• Entity Types (some of the most common)• Sole Proprietary• Partnership• LLC• S-Corp• Non Profit• Etc

• For entity types and infohttp://corporations.utah.gov/index.html

• Online registrationhttps://secure.utah.gov/osbr-user/user/welcome.html

Business License• Business license is done through the city or county

• Business registration is done through the state

Professional LicensesAAccountancyAcupunctureArchitectureAthlete AgentAthletic TrainerAudiologyBBarberingBuilding InspectorBurglar AlarmCCertified DietitianCertified Medication AideCertified Nurse Midwifery Certified Public AccountantChiropracticClinical Mental Health CounselorContractingCosmetology/BarberingCourt ReportingControlled Substance PrecursorDDeception DetectionDentistryDietitian - CertifiedDirect-Entry MidwiferyEElectricalElectrologyElevator Mechanics EngineeringEnvironmental Health ScienceEsthetics

 

FFactory Built HousingFuneral ServiceGGenetic CounselingGeologyHHealth Facility AdministrationHearing InstrumentHunting GuidesLLand SurveyingLandscape ArchitectureLien Recovery FundMMarriage and Family TherapyMassage TherapyMedication Aide - CertifiedMedical Language Interpreter Midwifery - Certified NurseMidwifery - Direct-EntryNNail TechnicianNaturopathyNursing 

OOccupational TherapyOnline Prescribing OptometryOsteopathic Physician & Surgeon OutfittersPPharmacyPhysical TherapyPhysician and SurgeonPhysician Educator Physician AssistantPlumbingPodiatryPrivate Probation ProviderProfessional Engineering Professional Geology Professional Land Surveying PsychologyRRadiologic TechnologyRecreation TherapyResidence Lien Recovery Fund Respiratory CareSSecurity Companies and GuardsSocial WorkSpeech Language PathologySubstance Use Disorder CounselingVVeterinaryVocational Rehabilitation 

http://www.dopl.utah.gov/licensing/index.html

SWOT

• Strengths

•Weaknesses

•Opportunities

• Threats

Mission Statement• “Begin with the End in Mind”

Stephen Covey – 7 Habits of Highly Successful People

Your mission statement should provide direction and answer the tough questions

• Intended to provide motivation

Your vision statement should provide a clear focus

Vision Statement

Putting It All Together

Product/Service

Relative Price Point

Target Market

Market Mediums

Marketing Strategy

Revenue- Expenses= Profit

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)

The financials are used to measure the success and track improvements

Putting It All TogetherStatic 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

6 Sections

1. Company Profile – A brief overview or explanation of your business

2. Product/Service – An analysis of your potential sources of revenue

3. Market Opportunity – Your portion of the revenue the total market will pay

4. Marketing Strategy – A detailed plan explaining exactly how you will sell, to whom, and at what expense

5. Management Team – Getting the right people doing the right things to make it happen

6. Financials – Measuring it and tying it all together

Homework• Create your company profile page• Name• Entity• Location• Etc.

• Perform a SWOT analysis for your company• Develop your company’s Mission Statement• Develop your company’s Vision Statement