SCORE Tailored Seminars

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SCORE Tailored Seminars Workshops An Overview
Manage and Grow Your Existing Business
V.20100601
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Special Thanks To Our Sponsors
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Classroom Safety Argosy U
Emergency Exits Restrooms Please do not
wander around the building!
You are HERE
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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

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About SCORE

• Successful and experienced executives acting as
  volunteers.
• National web site, www.score.org, provides useful
  information and resources for small business.
• Seminars and workshops
• Free Mentoring
• One-on-one
• Email mentoring
• Contact www.score-suncoast.org

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Mentoring Locations
SCORE Office 2801 Fruitville Road Suite
280 Manatee Chamber of Commerce Downtown and
Lakewood Ranch Sarasota Chamber of
Commerce Venice Chamber of Commerce Your Place
of Business Location convenient to you and your
mentor
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Introductions

• 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!

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Reality Business Success
Percent of New Businesses gt1 Employee after Four
Years

• Lack of planning
• Insufficient capitalization
• at start-up
• Mismanagement of
• cash flow
• 4. Improper pricing

(Source SBA)
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Common Sense Business
Starting, Operating and Growing a Small
Business by Steve Gottry
FANAFI PRINCIPLE?
Frustrating Realities for Entrepreneurs
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
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Strategic and Operational Tasks
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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?
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Strategic vs. Operational Tasks
Cruise Line Management vs. Ship Captain Analogy
Strategic
Operational

• Accommodations
• Baggage Handling
• Crew Evaluations
• Dining Room Service
• Evacuation
• Meal Preparation
• Navigation
• Room Service
• Passenger Safety
• Passenger Satisfaction
• Refueling
• Weather Changes

• Advertising
• Bookings
• Competition
• Crew Hiring
• Customs
• Destinations
• Entertainment Booking
• Menu Planning
• Port of Calls
• Safety
• Ship Registrations
• Training

Performed on ship
Not performed on ship
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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
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Operational Examples

• 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

Daily Tasks
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Keeping a Time Log Measure Activities
Task/Accomplishment
S
O
X
800 830
New Product Planning Meeting
X
Meeting Continued
830 900
X
ABC Customer Complaint
900 930
930 1000
1000 1030
1030 1100
1. Any time left to refresh your mind?
1100 1130
1130 1200
2. Any time left to dream about the future?
1200 1230
1230 100
100 130
130 200
200 230
230 300
300 330
330 400
400 430
430 500
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Better Balance- Exercise 1
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
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Business Plan Updates
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Business Plan Status
Is your Business Plan still relevant? How often
do you review it? Do your employees understand
it?
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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

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Updating Your Business Plan
Strategy
Mission
Objectives
Critical Goals
Operations
Initial Action Plans
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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?
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Operational Mission
Business Plan
Evolving Mission Statement
Original Mission Statement
Time

• Brief
• Generalized
• Communications
• Processes
• Bank Loans

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

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Goals Need Updating?
Evolving Business Goals
Original Business Goals
Time
Dreams Ideas Many Unknowns Designed to Get
Business Started

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

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Updating Business Goals
Effective Goals Contain 5 Parameters

• Specific
• Measurable
• Attainable
• Relevant
• Trackable

Lease 3 new 15 minute parking spaces for Carry
Outcustomer use only. Evaluate carry out
sales over 6 months to determine extent that
these new spaces increase sales.
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Mini Goal Example
Customer Satisfaction Survey

• Ten question maximum (include key demographics)
• No longer than 2 minutes to complete
• Pilot with associates for feedback needed
  changes
• Finalize Survey and administer for at least 30
  days
• Evaluate results identify shortcomings--------
  --------------------------------------------------
  -------------------------

1. Develop approaches to address each shortcoming
2. Insert temporary changes into business
   operations
3. Observe impact on key performance parameters
4. Make promising high payback changes permanent

Do not assume that continuing operations
using same old strategies will yield different
results.
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Managing Change in Your Business
Assume tomorrow will be different than today
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Change During Turbulent Times
Making Profit
BreakingEven
Time
LosingMoney

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

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

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Predictable Stages of Change
Persevere with Enthusiasm Commitment
Productivity
Manage the change to MINIMIZE the productivity
dip and recover quickly!
Time
Change may look like failure about mid point
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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

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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 (dont expect too much too
   soon)

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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

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Financial Measures and Performance
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Measures of Effectiveness
Parameters that delineate Overall Health of
Business

• Where is business now?
• Where was business before?
• Where is business going in future?

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Break Even Analysis
How many sales do you need to make, at what
price, at what costs and in what time period to
be profitable?
Example Sales Price 10 ea Variable Cost
- 5 ea (Contribution Margin 5 ea) Fixed
Costs 10,000 Semi 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
Take periodic snapshots of Measures of
Effectiveness - at least Monthly
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Accounting Information Management
Snapshot Measurements of Key Parameters (Examples)
Norm
Norm
Norm
Norm
Lo
Hi
Lo
Lo
Lo
Hi
Hi
Hi
Cost of Goods Sold
New Customers
Expenses
Sales

• Expected
• Source
• Size
• Market Segment
• Competition

• Repeat
• Satisfaction
• Advertising
• Surveys
• Coupons

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

• Ongoing
• Trends
• Technologies
• Productivity
• New Processes

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Business Measures- Exercise 2
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
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QuickBooks Accounting Software

• Common Business Transactions
• Payments (Vendors Contractors)
• Invoices (Customers)
• Accounts Payable
• Accounts Receivable
• Payroll Checks
• Track Expenses
• Bank Account Interface

Select from Available Featuresto tailor
application to your needs
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QuickBooks Home Page
Vendors
Customers
Employees
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Peachtree Accounting Software
Basic, Standard Advanced Versions

• 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

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Peachtree Functional Structure
General Ledger
Job Costing
Inventory
Financial Statements
Accounts Payable
Accounts Receivable
Time and Billing
Payroll
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The Internet and Your Website
Easy access for information about your business
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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)

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Search for a Web Designer/Developer
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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

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Manasota SCORE Client Websiteswww.thetranslationl
ink.net (Alina Mugford)
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Attracting Customer Traffic to Website
Your Website

• 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

Home
Page 1
Page 2
Page 2a

• Services/Products
• Instructions
• Specifications
• Support
• Menus/Prices
• Testimonials
• Q A
• Contacts

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Important Website Characteristics

1. Satisfies visitors 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

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Selling On The Internet

• Start-up costs
• Easy to navigate site
• Tracking customer buying habits
• Secure site/credit cards
• 24/7 service
• Distribution/returns/repairs
• Use of search engines
• Links to partners/vendors

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Yahoo Small Business Hosting Example
www.smallbusiness.yahoo.com/webhosting
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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

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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!

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Do You Have A SCORE Mentor?

• 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

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

• QuickSTART 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

Visit www.score-suncoast.org
For Schedules and Registration
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Help Us, Help You
Please fill out the workshop evaluation
form Your feedback is important to help us
improve our programs!