Share Out and Re-Focus

I hope you have enjoyed your time off and gotten plenty of rest.  Now that the snow has cleared, it's time to get back to work, and I've devised just the right activity to help us get back in the swing of things.

Why is Pick-it Sweets & Treats such a great business?  Why was our written and oral business plan presentation so strong?  I believe it is due to the fact that everyone contributed his/her own ideas to the organization, and the whole is clearly greater than the sum of its parts. 

With that in mind, I decided that we should take some of our individual business plans and bounce our ideas off one another to help make them even better than what we could do on our own.  After this, we will re-focus on current economic conditions and expenses.  I know we touched upon these the last time we were in class, but truly understanding economic conditions and expenses is essential to being a good business person.  Here's a weekly breakdown of our tasks:

Monday:

Clear Target: We can analyze and critique a business plan.

On Monday, we will have an activity centered around our progress with our individual business plan.  Three or four students will share out their ideas, notes, etc. on the business plan to get some feedback on what the rest of the class thinks.  This activity will work just like our brainstorm in the beginning of the year when we bounced ideas off one another about Pick-it Sweets & Treats.

Basically, those who present will share their notes in the following manner:

1. Their business idea - what is the need you are filling?

2. Their vision - What will the business look like and be like? 

3. Their target market - how will your business appeal to your market?

4. The rest of their notes (the working document you have kept on MS Word, Google docs, etc.) - what's your logo like? What do you do to differentiate yourself?

I have already emailed you a Google Form for these presentations that you will complete during each presentation.  The critique forms are actually secondary, though.  The purpose of the activity is for the class to verbally critique each business to help improve the plan - just as we did during our initial brainstorm for our VE firm.  You can think like an investor or think like a customer or just think like a business person who wants to help local organizations thrive.

That said, I need four of you to volunteer to present your business if you don't wish for me to select myself.  I have a few in mind that I believe will benefit from this activity, but I would like to have you take ownership of this activity.

Tuesday and Wednesday: Current Economic Conditions
Clear Target: We can analyze economic conditions in a capitalist society

While you’ve already completed an industry analysis, on Tuesday and Wednesday, you will take a look at the economy from a “big picture” perspective.  Here’s a breakdown taken straight from our rubric:

·       Current economic conditions: a “snapshot” of the economic environment that may include information such as employment levels, interest rates, rate of inflation/deflation, rate of change of GDP, balance of trade, exchange rates, and/or any other information you think is appropriate.

Now, this “snapshot” is essential to determine what effects the economy will have on your business.  It’s one thing to report to me that consumer discretionary income is dwindling as a result of inflation.  It’s a completely different (and more thorough) situation when you explain that because of dwindling discretionary income, your profits will be negatively affected, since fewer consumers will be capable of actually paying for your products/services. 

Thursday/Friday: Expenses (Fixed/Variable) and Blog
Clear Target: We can create a budget for a startup business

The time has come to begin looking for real numbers for our business.  How much money does it actually cost to run your business?  Many of you have already done at least some research about renting a facility, paying employees, advertising expenses, etc.  For Thursday, the plan is to first list as many costs as you can for your business.  Consider these questions:

o   Will you have a facility?

o   How much is the rent for the amount of square footage you need?

o   Will you hire employees?

o   Will you advertise?

o   Approximately how much does the utility bill cost for a facility you plan to run?

o   Do you sell merchandise?  What is the cost to make or procure the merchandise?

o   What other consumable assets will you use on a monthly basis? (landscaping companies use fuel on a regular basis)

The list can go on and on.  My suggestion is that you find as many fixed and variable expenses as possible for your plan.  A simple web search can greatly help you.

Once you’ve sufficiently completed these tasks (or if we only have about 20 minutes left in class Friday), it’s time to blog about your progress.  Feel free to tell me:

What have you learned about being prepared for anything? 

How did you react to having to deal with the possibility that your original assumptions may have been wrong?

What did you learn about our economy? Has your opinion changed about anything?

How will the economy impact your business?

Were you aware of all the expenses your business would have to pay?  Which expenses stood out during your research?

That’s it for this week.  See you in class!