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!

Dual Focus! Same as Last Year

This week we will have a dual focus for our business plan.  Our first area of concentration will be on the discussion of business risks.  Here we will outline different ways to handle our business if the assumptions in our SWOT analysis are incorrect.  We will then build on this by researching the current economic environment.  By analyzing the economic conditions, we will be more justified in our beliefs about trends that may occur in our industry, and will be better equipped to manage our business.  Our second area of concentration will be on finding as much data about the expenses of our business as we can.  In order to be able to complete a break-even analysis, and later determine how much profit we plan to earn in the future, we must first know the true cost of running the business. 

Here’s how we’ll eat the elephant this week:

Monday: Discussion of Business Risks

Have you ever heard someone break down the word assume?  If not, let’s just consider you to be one of the lucky few.  In any case, the assumptions made in our SWOT analysis are likely to be backed by research about our industry.  Unfortunately, even with hundreds of hours of research, some assumptions end up being incorrect.  Today’s classwork deals with handling business risks and incorrect assumptions.  From the rubric:

·       Discussion of business risks - 5 points

o   Identify the risks that will occur if assumptions you have made are incorrect.

o   Provide a strategy for dealing with the risks identified.

Essentially, we’re making sure we have all bases covered.  Today’s work should be somewhat challenging, but fun.  Your final draft for discussion of business risks should be about 100-150 words.

Tuesday and Wednesday: Current Economic Conditions

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

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!

SWOT Analysis & Some Cover Letter Info

This week, we will focus on the long-term potential of our business, as well as learn a little bit about cover letters while we're in the LGI room (Tuesday, Wednesday, Thursday).  Our goal is to analyze the internal and external environment as thoroughly as possible.  This will be accomplished through completing a SWOT analysis.  Here’s a breakdown of the weekly tasks.

Monday: Internal Strengths and Weaknesses

Here is a great link to an article that summarizes how to compose a SWOT analysis.  The first two portions, strengths and weaknesses, deal with your internal operations.  In the article, there are bulleted questions that you can answer to complete your analysis for each section, but you may also choose to identify other highlights that are industry-specific if you wish.  For example, do you have any technology at your disposal that separates you?  Are your employees trained in a certain way that helps your business stand out?

We will share out some of our findings in the last 7 minutes of class, so please work diligently and be prepared.  Also, don’t hesitate to use some great points from your classmates if you can add them to your plan.  The purpose of this exercise is to share best practices (buzzword: collaborate).

Tuesday: External Opportunities and Threats

Again, reference this article for some questions that you may use to complete your analysis.  Think about it… your established competitors may be resting upon their laurels, and may be missing out on opportunities in the marketplace that you can use to your advantage.  Conversely, these established competitors do have name recognition and good reputations on their side.  Will this pose a threat to your business penetrating the market?  How will you address this?

We will again make use of the last 7 minutes of class to share out our findings.  I urge you to think hard when it comes to what “best practices” you can use for your own plan.  This is a great way to expand your thinking and be productive.

Wednesday: SWOT Analysis Final Draft

OK, today we are going to put it all together.  Take your notes/draft for your SWOT analysis and make it pretty!  Here are a few ideas for making your final draft

Now, you can use tables in Microsoft Word or use Google to search for some SWOT analysis templates if you wish.  I found a really good one that’s in my Public_Faculty folder saved as Business Plan – SWOT Analysis Template.ppt as a PowerPoint file.  I happen to LOVE slide 2 of the presentation, and would use that for my SWOT analysis. 

Your assignment today is to find an aesthetically pleasing (and EASY TO READ) template and enter your findings as a final draft. This will be a fun and creative day!  I know it.

Thursday: Cover Letter Lesson

Today, you will take a break from the SWOT analysis and focus on preparation for our Mock Interview Competition with a lesson about Cover Letters.  Below is a screenshot of what Coach Bruce has planned for you in the LGI Room:

The activities are well planned and will be a huge help for you.  If you want additional help with writing cover letters, consult with the following links:

1. How to write a cover letter & What is a cover letter?

2. What to include in a cover letter

3. What is "block form" all about?

Friday: Catch-up Day and Blog

This week was pretty intense, I’ll admit.  You used your analytical skills to assess your business, your competitors, your industry, and your classmates’ hard work.  You used creativity in formatting an aesthetically pleasing SWOT analysis and presenting it to the group.  Perhaps there are still some loose ends to tie up. 

Let’s use today’s class to catch up on the entire project and write a blog entry about where you stand.  Feel free to address these questions in your blog entry:

1.     Are you caught up with every section of the plan?  If so, how have you accomplished this?  If not, what has kept you from staying on track?  Be honest and create a plan to catch up.

2.     Now that you’ve completed a majority of the plan, how well will your business perform in the marketplace?

3.     How do you think an investor will react to your plan?  Do you think you can get the startup capital needed for your business?  Why or why not?

Feel free to write a short intro to your blog entry and then list the questions in your post, addressing them one at a time.  I look forward to reading your reflections about your progress.

See you next week!

Self-Direction

This week, you will be tested on your ability to self-direct.  On Sunday, my wife gave birth to our son, so I will be out for the next two weeks on leave, which means you are fully responsible for completing your work without my assistance.  Please use this blog, the PowerPoints from our Google Drive, and Google search as your guide through your daily assignments.  Keep all notes in your master file (and back it up to a cloud or other storage device) and make sure to date all your work for organizational purposes:

Monday: Company Logo & Tag Line
If I asked you to describe the company logos for McDonalds or Chevrolet, I'm sure you could all do so without hesitation.  Much like tag lines ("Creating confections made to perfection," for example), a logo is an integral part of your brand identity.  Please use today's class to brainstorm and make note of a clear description of your company logo.  You will also make note of at least three tag lines your business will use.  This, combined with your vision you created last week, will help transition into your tasks for the rest of the week.  Please remember to date your work on your working document and keep everything in one master file (Google docs, MS Word, etc.).

Tuesday: Mission Statement and Company Goals

Now that we have completed our marketing plan, we can devise a list of goals for the organization, along with a company mission statement.  For those of you who prefer to write in bullet point fashion, feel free to create a list of your company goals/objectives.  If you are more comfortable writing goals and objectives in paragraph form, go for it!  Have at least 5 measurable, easily identifiable goals for your first year in business.

For your mission statement, it wouldn’t hurt to see a few well-written models.  Use the business plans in my classroom and check out this link for some solid examples of well-written mission statements.  A few of my favorite from the link are from Advance Auto Parts, Applied Materials, and of course, Starbucks.

Below is an explanation of each component, taken directly from the scoring rubric:

• Company description: origination date, industry, legal description, location, brief history (if an existing company).

·      Mission statement: A brief statement that represents what company stands for; narrow enough to give direction but not so vague that it could apply to any other organization.

Wednesday: Planning and Organizing

Management can be broken into 4 main components: Planning, Organizing, Leading, and Controlling.  Today we will focus on the first 2 components. 

For the Planning Component, you will need to have your company goals in mind.  Address how you plan to achieve each goal in a few (3 to 5) sentences.  From the rubric:

·       Planning: What are the goals of the business? Identify strategies to achieve each goal.

For Organizing, you will need to break down the number of employees, identify a chain of command, and describe the job of each position in the organization.  From the rubric:

·       Organizing: How is the firm organized to be able to meet objectives? Organization chart to specify what jobs need to be done and by whom.

Thursday: Leading and Controlling

Leadership is an important aspect of running a successful business.  Have you ever noticed that most pets take on the personality of their owners?  Have you ever heard the saying, “the apple doesn’t fall far from the tree,” and realized it to be true?  The same applies in business.  Read this article about corporate culture, and explain how you will lead your employees.  If you are a 1-person operation, how will you direct yourself in terms of staying on task and holding yourself accountable to the highest standards necessary to succeed? From the rubric:

·       Directing: How are directions, assignments, instructions and information provided to employees?

With respect to controlling, think back to your lesson about performance evaluations.  How will you measure employee productivity?  Will you use measurable performance indicators?  Will you use 360-degree feedback?  Will you be the only judge of their performance? How will you make your employees happy to come to work and know when they’re doing well, or how to improve upon their shortcomings?  From the rubric:

·      Controlling: How does the firm monitor progress toward achieving goals?

Friday: Catch-up and Blog

I understand we have done a lot this week, so I’m going to allow Friday to be a catch-up day.  Once you’ve completed the tasks for the week, write a blog about your work. 

·      How well have you stayed on task? 

·      After thinking about the management function, especially the leadership component, how well do you think you will lead your organization to success? 

·      What topics, if any, that we talked about in class on Monday helped you with this portion of the plan? 

·      What part of the plan did you absolutely nail?  Feel free to copy/paste that into your post.

Again, feel free to separate your blog entry into sections by addressing each question.  This will make the entry easy to read and will ensure you touch upon everything properly. 

I hope you had a great week! 

Work is Still Work

"Baseball, it is said, is only a game.  True, and the Grand Canyon is only a hole in Arizona."

-George Wills

“I think about baseball when I wake up in the morning.  I think about it all day, and I dream about it at night.”

-Carl Yastrzemski

The above quotes describe an unparalleled love for baseball that two men have.  They describe a passion for the game that consumes them, and provide a great example of what it takes to succeed, not only in sport, but also in business.  When I assigned the task of completing a business plan for my VE class, I prepared them by showing videos and providing articles that detail how passion for something can be the difference between an average business and a thriving one.  Students were encouraged to create a business in an industry in which they have that passion so that they could remain focused and productive.  Thus far, I have seen glimpses of it, but now we need to turn up the heat. 

Through the first week of preparation, many students have fallen behind, and I estimate about 80% of them are in need of stepping up their game.  Because I understand that plans sometimes need to change, and that the process isn’t always right on schedule, I have moved last Friday’s task (the 5 Ps) to this Tuesday.  Also, since the marketing mix and management plan account for more than 50% of the grade, we will take the next 2+ weeks to finalize these areas of the business plan.  I will also provide a framework for the purpose of the plan and how to set goals for the business once students have completed the “vision” of their ideal business.

So, without further adieu, here is a breakdown of this week’s tasks.  Again, you’ll find Tuesday’s task identical to last Friday’s so that students can get back on track and be in the right mindset for completing an excellent business plan.

Tuesday:

First, look at the 2 quotes at the beginning of my blog entry this week.  Think about things that occupy your mind all day and dream about at night.  Is your business plan designed around something you have this much passion for?  When you graduate, your focus for your career or major in college should be just as strong as this.  It will certainly help you succeed in whatever endeavor you choose.  This is just some advice.  I hope you find it helpful. 

Now, do some research about the 5 Ps of marketing.  Refer to this article (which describes 7 Ps) along with the rubric I’ve shared on my Public_Faculty folder, which details 5 Ps.  Use your answers to yesterday’s questions about your specific vision for your business and the explanation of the 5 Ps to break down:

1.     Product (or service)

2.     Price

3.     Place

4.     Promotion

5.     People

In today’s blog entry, you will type a description of each of these aspects of your business.  Once complete, you will have a rough draft for the first piece of your business plan!  

Wednesday:

Today we will focus on our target market.  If you are creating a business plan, you must know who your customer will be.  You’ve touched upon this in previous assignments, but today, it’s time to really define who it is you plan to have as a customer.  Here are 2 aspects of your target market that you will need to address:

o   Identifies a specific group of consumers toward which firm directs its marketing efforts.

o   Separates layers of market according to some of the following: demographics, geography, psychographics, benefits, etc.

Though today’s assignment is only 2 simple questions, your analysis and work will take you the entire period to complete.  Think smart, work smart, and put your thoughts into coherent, complete sentences.

Thursday:

Today’s focus is on your industry.  We will complete an industry analysis by answering the following questions:

o   Demonstrate an understanding of the real world industry by providing information about size, profitability, current challenges, competitive pressures, etc.  Use information found on the internet to analyze and critique how big you will be at inception, how large you wish to grow over time, and what barriers to growth exist in your industry.  Today’s lesson will be very helpful when completing part of your SWOT Analysis as well.

Friday:

Today is all about knowing your competition.  While you have outlined some strengths and weaknesses of direct competitors already, today we will refine that analysis and add to it by doing the following:

·      Competitive analysis: Identification and examination of characteristics of competing firms. (If there are no direct competitors, analysis of indirect competitors.)

·      How does the competition earn business?

·      How do they keep business?

·      Why would someone want to switch their allegiance to your business instead of theirs

Now, you can probably expect to complete today’s task pretty quickly.  That’s great!  You will use the last 15-20 minutes of class to blog about your progress on this week’s tasks.  In today’s blog, detail 1) How you may/may not have changed your focus so that you could get caught up (did you start to think about how your passion translates to this project outside of class?), 2) How much more clear your vision has become for the business, 3) are you on schedule? Behind schedule? Ahead of schedule? And 4) On which aspect of this week’s tasks did you absolutely nail it? Feel free to include a portion of that work in your entry.  You can complete this entry, and future entries, by listing each question and addressing them individually or just write your entry in paragraph form.  Just make sure to use complete sentences, and take pride in your work.

A Journey of a Thousand Miles

In order to prepare my VE students for writing their own individual business plan, I have already shown them four videos about how to raise one’s standards, how to back them up with consistent, manageable rituals, and how to achieve excellence (found here, here, here, and here).  These videos should help students begin a strategic thought process for creating a solid business plan.  Below is a breakdown of the work we will complete this week.

Monday: B/R: 2 minutes: Take out a pencil and sheet of notebook paper.  Write your name and today's date on top of the paper.  Log onto the computer.  Open a web browser and turn your monitor off. 

From here, I will share success stories about former colleagues and business connections I had in New Jersey who were extremely successful in their own business ventures, and what they all had in common (do what you love).  I will explain the saying, “if you do what you love for a living, you’ll never work a day in your life,” and how I don’t fully agree with it.  Running a business is difficult work.  Maintaining profitability and managing competition is not easy, however if you work in an industry that you are passionate about, you will be intrinsically motivated to succeed, and it will feel less like work.

After this discussion, we will go to our Google+ page and click link for my blog entry from last Sunday.  In this entry, I outline weekly tasks and provide links to other information for creating a website.

***Disclaimer*** This project requires attention to detail and the workload may be so great that you do not finish each day’s assignment during class.  We are working on a strict timeline, so you will be required to complete any unfinished work for homework.  The fact that you are planning a business in an industry you enjoy should make any homework at least somewhat pleasant.

This week’s outline looks like this:

Monday/Tuesday

Read about starting a business here (Monday) and here (Tuesday)

Take notes on each article/blog in the same way you took notes on our videos last week.  What did you find interesting?  Jot down at least 3 “nuggets of wisdom,” either with direct quotes or your conclusions about what you read from each article.  If your conclusions about the article are that you disagree with the author, explain why you disagree.  This will help you make the right decision about writing your own business plan.

List at least 2 business ideas you would consider for your business.  Suggestions include:

·      Coffee shop

·      Photography business

·      Restaurant – extremely difficult for this assignment

·      Landscaping business

·      Sporting goods store

·      Training facility

Then find at least 1 direct competitor in Clarksville or the surrounding area.  We will begin to pick apart what makes them successful and how we can make our business better.

Wednesday

Begin class by writing a blog entry about our research from Monday/Tuesday.  Your blog entry will describe the project and serve as a breakdown of all your work so far.  This will help you gather your thoughts about the business and have a target as a direct competitor.  Your entry should include:

·      What industry/business/aspect of life are you passionate about?

·      What are the 3 nuggets of wisdom/conclusions drawn about each article read?

·      Which 2 businesses did you consider for your plan?

·      Who is the direct competitor you targeted?  Is this competitor successful?

Once finished, you will write down strengths and weaknesses of this direct competitor.  Be specific in your analysis.  List at least 5 specific strengths and 3 specific weaknesses of that competitor.  This will help you build a vision of your own business.

Thursday

Today the focus is on creating a vision for our business.  Answer each of these questions as thoroughly as possible.

What will your business look like? 

Where is your business located? 

What do your customers want from your business?  How can you satisfy them as much as possible? 

How does your business differ from your competitor? 

Is your product/service cheap or expensive?  Why? 

How do you plan to get customers in the door and keep them coming back?

Friday

Do some research about the 5 Ps of marketing.  Refer to this article (which describes 7 Ps) along with the rubric I’ve shared on my Public_Faculty folder, which details 5 Ps.  Use your answers to yesterday’s questions about your specific vision for your business and the explanation of the 5 Ps to break down:

1.     Product (or service)

2.     Price

3.     Place

4.     Promotion

5.     People

In today’s blog entry, you will type a description of each of these aspects of your business.  Once complete, you will have a rough draft for the first piece of your business plan! 

In addition to this, we also need to pay our salaries, complete a weekly newsletter, sell merchandise, decorate our display board, and get our promotional email out to potential clients.  Again, this requires you to manage your time and do more with the same amount of time that had previously been allotted to you during a school week.  Have a great one!  See you tomorrow.