The Fundamentals of Starting and Growing Your Own Business
Quadrant Business Management Group
NOTICE
Quadrant Business Management Group (QBMG) does not imply or guarantee any degree of business success by using the information contained within this document. Any companies and/or references provided in this document are examples only. QBMG assumes no liability for the products, services or information provided by these or any other entities referenced in this document.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow
Finding the “Right” Business Think Sheet
Goals: What are your GOALS for starting your own business?
(Answer WHY you want to do this. What do you intend to achieve)
More family time ? Additional income ? Primary source of income ? Greater life flexibility ? Family member care ? Independence ? Greater Security ? Long-Term Income
Your Business
Passion
What activities make you happy!!
Do you have a hobby? Do you like helping people? Do you have a specialized skill that you enjoy? Create a business out of what you know and enjoy and it will not even seem like work! All that remains is deciding whether you start out on a part-time basis or go full out. Use your Personal Inventory to help identify the type of business and your Goals to keep your Passion fired up.
Personal Inventory
What do you enjoy doing? ? How much time per day can/will you devote to your business ? Can you afford to quit your job? If not, can you build a part-time business? ? What type of personality are you? Outgoing, reclusive, center of attention, behind the scenes?? Do your prefer to work with/for a company or start your own company?
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow
QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Business Type Guide
Business types are as individual as the business person. The determination on what type of business to initiate is primarily driven by four factors: 1.Own your own business or work for an established company as an independent or franchisee.
2.The amount of time required to make and keep the business productive.
3.Finances - Whether you need to continue working while building a business and/or have the resources to make the initial business investment. 4.Your individual skill set and level of experience (some ventures do not require any previous skills or experience!)
Four Business Types:
• Direct Sales •Network Marketing •Product or Service Provider •Franchise
How To Know Which One Is Right For You?
Do Your Research!
An overview of each Business Type listed is provided on the following pages.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Franchise Opportunities
The advantages of owning a franchise operation is that typically, you are starting with a company that has a track record. Consequently, start up time is usually faster and the venture less risky (but not always). Because you belong to a company with multiple franchise operations, purchasing power – the power of bulk-buying – can be leveraged. Marketing, a major percentage of business costs, is usually done for you (to greater or lesser degrees) or a marketing budget allocation may be given. Business support is inherent in franchise operations because operational models and methods are provided by Franchisor.
•
• • •
Some Considerations Models and methods are provided by Franchisor – you must adhere to their dictates Can be costly for well-known business or service If less costly, most likely less known You will most likely not have a say in many matters
Example Franchises
• • • Real Estate Carpet Cleaning Almost any business operation that can be duplicated!
The above companies and references are provided as an example and QBMG assumes no liability for the products, services or information provided by these or any other entities referenced in this document.
Franchise opportunities abound in almost every area of business. One source is www.business.com.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Product & Service Provider
Independent Product and/or Service Provider businesses are frequently started by people that turn a specific skill or hobby into a business. These types of businesses are as diverse as the people themselves. First and foremost, ask yourself what you LIKE to do? It makes little sense to build a business doing something you dislike. It is not uncommon for people to leave their corporate job to go off and start a business doing exactly the same job they previously left. Unfortunately, some discover that it was not working in corporations they disliked – it was the job itself! When building a business, it is vital to your success that you enjoy the endeavor. Imagine where the world would be today if Bill Gates disliked writing computer code!
Example Product and/or Service Companies •Consulting •Computer training •Gift Baskets •Hand-carved rocking horses •Marketing services •Day care providers
Some Considerations
• • • Start up costs will vary based on the business You will be “blazing” your own trails – business planning, advertising, marketing, etc. If product or adjunct services are required, you will need to put sourcing arrangements in place. This can drive both the quality and cost of your product or service. Licensing – Does the service you provide require a license or permit? Federal, state or local regulations – For products or services
• •
The above companies and references are provided as an example only and QBMG assumes no liability for the products, services or information provided by these or any other entities referenced in this document.
Do your research in the area you select before you get started. The Small Business Administration, www.sba.gov, is a good source.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Network Marketing
Network Marketing is one of today?s “hottest” business models using an alternative to traditional sales and distribution methods It bypasses the typical chain of wholesaler to distributor to retailer and channels goods or services directly from the manufacturer to the consumer through a „network? of independent consultants. Some companies allow consumers to purchase wholesale – goods delivered directly to their door.
“If I had to do it all over again, rather than build an old style type of business, I would have started building a Network Marketing business.”
Robert T. Kiyosaki Author of "Rich Dad Poor Dad”
Some Considerations
• Start up costs can be minimal depending on amount of stock that must be carried, cost of marketing materials, etc. You will need to market „yourself? Company – history, stability, reputation, products (consumables) What training and support is provided – This can make all the difference in your success Compensation plan – speak to realistic people who have been with the company for a time Be prepared to build „SWEAT? equity
Example Companies
• • • Arbonne Shaklee Amway Limu
• • •
•
•
The above companies and references are provided as an example and QBMG assumes no liability for the products, services or information provided by these or any other entities referenced in this document.
One reference source is: “Network Marketing: Answers to Your Top 5 Questions” by Rod Nichols, May 2006 issue of Entrepreneur.com.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Direct Sales
Direct Sales typically involves promoting a product for sale directly from the manufacturer. There is considerable overlap between Direct Sales and Network Marketing, with many companies falling into both categories. Advertising and marketing are normally provided – to varying degrees - as are forms and business materials (at a cost). The benefits of Direct Sales include having a business model that is already done, inexpensive supplies (normally) and typically, a large number of products available to represent.
Some Considerations
? ? You still need to market „yourself? How much training is involved and what is provided by the company Is there inventory that you are required to carry and what is the cost Validate company stability and reputation Compensation plan – speak to realistic people who have been with the company for a time
Example Companies • • • Fuller Brush Company Tupperware Avon
?
? ?
The above companies and references are provided as an example and QBMG assumes no liability for the products, services or information provided by these or any other entities referenced in this document.
A source for Direct Sales companies is the Direct Selling Association - www.dsa.org © Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Business Planning Basics
Business planning should be the first step in starting your own business. Business Planning allows you to think through the Why, What, When, Where, and How aspects of your new venture. The following items should be addressed in your preliminary business planning activities. 1.Business Description – What products and/or services are you going to offer. 2.Motivation and Goals – Why do you want to start your own business and what do you intend to achieve? 3.Target Market and Customers – To whom are you going to sell your products and/or services. 4.Market Analysis – Is your target market growing, static or shrinking? Why? 5.Value Statement – What value will your product and/or service give to your customer. Will that value be perceived as worth the price you will charge for the product or service? 6.Competitive Edge – Who are your top competitors and why will people buy YOUR product or service. 7.Marketing/Sales Strategy – How are you going to market and sell your products/services? What is the estimated cost of sales and marketing programs? 8.Internet (e-commerce) Marketing and Sales Strategy – How will you use the internet and what are the associated costs? 9.Personnel Skills Assessment – What is your education background and work experience in the business you plan to start? Are there skills you will need that you do not possess? 10.Office Location and Business Equipment Requirements– Located in home or leased office space? Define all needed office equipment and associated cost. (e.g., desk, chairs, phones, computer, fax, internet, printer, etc.) 11.Business Name and Registration – What type of business organization will you register asSole Proprietor, Limited Liability Corp (LLC), Corporation, etc. Each type of organization has it own rules of operation. Understand what these are. 12.Licenses, Permits and Insurance– What license, permits and insurance are needed to operate. What is the associated cost? 13. Cost Analysis – What are all of my projected costs (fixed, variable, product, delivery, etc.) 14. Income Forecast – What are my projected revenues for the next set time period (typically one year) 15. Cash Flow/Break-Even Statement – What will my cash position be after accounting for estimated sales, costs and investments in my company. (typical time period is one year.) How much do I have to sell on a monthly basis to breakeven?
This Business Planning Basics outline is not intended to serve as a thorough business plan but as a preliminary guideline to help you think through important business planning aspects.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Getting Started Checklist
Done Action Create a Basic Business Plan Comments/Exceptions
If seeking loan or investor funding, a detailed plan is required. Except if working for a company or some types of subcontracting Requires registered business DBA Many available such as Quickbooks, Quicken, PeachTree or even Excel. Can be as simple as your company name Remember, your business card represents you!
Create and Register Business Name (DBA) Open a Business Bank Account Select an Accounting Program or an Accountant Create Company Logo Create Business Cards
You can create you own business cards but unless you can purchase professional grade card stock have them professionally printed
Create Company Stationary and Invoice Statements
You don’t need expensive software. Most word processing software have ready made templates.
Microsoft has numerous templates on-line that you can download for free.
Set-up An Organized Filing System
In your own business, time is extremely valuable. Don’t waste time looking for items or information.
Absolutely critical to finding what you need when you need it. Target customers, “elevator speech”, promotional tactics, sales aids, timeframes, etc. Remember, an object in motion, stays in motion.
Develop a Marketing “ATTACK” Plan
Get Going! Your business will only move as rapidly as the energy you devote to it.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Success Points to Ponder
1. Understand WHY you want your own business and keep that foremost in your mind PLAN – Create and Use a Business Plan – Create and Use a Marketing Plan Set and focus on Achievement Goals and Milestones Set-up Periodic Checkpoints and adjust your course as necessary Build in Rest Stops along the way Stay Focused and Energized
2.
Your Business and Marketing Plans Are Your Roadmaps!
IF YOU DON’T KNOW WHERE YOU ARE GOING – How will you know if you are headed in the right direction?
3. 4. 5. 6.
HAVING GOALS IS NOT ENOUGH
70% of Written Goals Are Achieved Only 7% of Unwritten Goals Are Achieved
Think SMART Make Your Goals… S = Strategic M = Measurable A = Achievable R = Repeatable T = Timely
Goals should be action plans that are documented and specifically address:
1.WHAT YOU WANT TO ACHIEVE
2.WHEN YOU WANT TO ACHIEVE IT 3.HOW YOU ARE GOING TO ACHIEVE IT
Objectives
Goals
Actions
Results
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
doc_680733257.ppt
Quadrant Business Management Group
NOTICE
Quadrant Business Management Group (QBMG) does not imply or guarantee any degree of business success by using the information contained within this document. Any companies and/or references provided in this document are examples only. QBMG assumes no liability for the products, services or information provided by these or any other entities referenced in this document.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow
Finding the “Right” Business Think Sheet
Goals: What are your GOALS for starting your own business?
(Answer WHY you want to do this. What do you intend to achieve)
More family time ? Additional income ? Primary source of income ? Greater life flexibility ? Family member care ? Independence ? Greater Security ? Long-Term Income
Your Business
Passion
What activities make you happy!!
Do you have a hobby? Do you like helping people? Do you have a specialized skill that you enjoy? Create a business out of what you know and enjoy and it will not even seem like work! All that remains is deciding whether you start out on a part-time basis or go full out. Use your Personal Inventory to help identify the type of business and your Goals to keep your Passion fired up.
Personal Inventory
What do you enjoy doing? ? How much time per day can/will you devote to your business ? Can you afford to quit your job? If not, can you build a part-time business? ? What type of personality are you? Outgoing, reclusive, center of attention, behind the scenes?? Do your prefer to work with/for a company or start your own company?
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow
QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Business Type Guide
Business types are as individual as the business person. The determination on what type of business to initiate is primarily driven by four factors: 1.Own your own business or work for an established company as an independent or franchisee.
2.The amount of time required to make and keep the business productive.
3.Finances - Whether you need to continue working while building a business and/or have the resources to make the initial business investment. 4.Your individual skill set and level of experience (some ventures do not require any previous skills or experience!)
Four Business Types:
• Direct Sales •Network Marketing •Product or Service Provider •Franchise
How To Know Which One Is Right For You?
Do Your Research!
An overview of each Business Type listed is provided on the following pages.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Franchise Opportunities
The advantages of owning a franchise operation is that typically, you are starting with a company that has a track record. Consequently, start up time is usually faster and the venture less risky (but not always). Because you belong to a company with multiple franchise operations, purchasing power – the power of bulk-buying – can be leveraged. Marketing, a major percentage of business costs, is usually done for you (to greater or lesser degrees) or a marketing budget allocation may be given. Business support is inherent in franchise operations because operational models and methods are provided by Franchisor.
•
• • •
Some Considerations Models and methods are provided by Franchisor – you must adhere to their dictates Can be costly for well-known business or service If less costly, most likely less known You will most likely not have a say in many matters
Example Franchises
• • • Real Estate Carpet Cleaning Almost any business operation that can be duplicated!
The above companies and references are provided as an example and QBMG assumes no liability for the products, services or information provided by these or any other entities referenced in this document.
Franchise opportunities abound in almost every area of business. One source is www.business.com.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Product & Service Provider
Independent Product and/or Service Provider businesses are frequently started by people that turn a specific skill or hobby into a business. These types of businesses are as diverse as the people themselves. First and foremost, ask yourself what you LIKE to do? It makes little sense to build a business doing something you dislike. It is not uncommon for people to leave their corporate job to go off and start a business doing exactly the same job they previously left. Unfortunately, some discover that it was not working in corporations they disliked – it was the job itself! When building a business, it is vital to your success that you enjoy the endeavor. Imagine where the world would be today if Bill Gates disliked writing computer code!
Example Product and/or Service Companies •Consulting •Computer training •Gift Baskets •Hand-carved rocking horses •Marketing services •Day care providers
Some Considerations
• • • Start up costs will vary based on the business You will be “blazing” your own trails – business planning, advertising, marketing, etc. If product or adjunct services are required, you will need to put sourcing arrangements in place. This can drive both the quality and cost of your product or service. Licensing – Does the service you provide require a license or permit? Federal, state or local regulations – For products or services
• •
The above companies and references are provided as an example only and QBMG assumes no liability for the products, services or information provided by these or any other entities referenced in this document.
Do your research in the area you select before you get started. The Small Business Administration, www.sba.gov, is a good source.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Network Marketing
Network Marketing is one of today?s “hottest” business models using an alternative to traditional sales and distribution methods It bypasses the typical chain of wholesaler to distributor to retailer and channels goods or services directly from the manufacturer to the consumer through a „network? of independent consultants. Some companies allow consumers to purchase wholesale – goods delivered directly to their door.
“If I had to do it all over again, rather than build an old style type of business, I would have started building a Network Marketing business.”
Robert T. Kiyosaki Author of "Rich Dad Poor Dad”
Some Considerations
• Start up costs can be minimal depending on amount of stock that must be carried, cost of marketing materials, etc. You will need to market „yourself? Company – history, stability, reputation, products (consumables) What training and support is provided – This can make all the difference in your success Compensation plan – speak to realistic people who have been with the company for a time Be prepared to build „SWEAT? equity
Example Companies
• • • Arbonne Shaklee Amway Limu
• • •
•
•
The above companies and references are provided as an example and QBMG assumes no liability for the products, services or information provided by these or any other entities referenced in this document.
One reference source is: “Network Marketing: Answers to Your Top 5 Questions” by Rod Nichols, May 2006 issue of Entrepreneur.com.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Direct Sales
Direct Sales typically involves promoting a product for sale directly from the manufacturer. There is considerable overlap between Direct Sales and Network Marketing, with many companies falling into both categories. Advertising and marketing are normally provided – to varying degrees - as are forms and business materials (at a cost). The benefits of Direct Sales include having a business model that is already done, inexpensive supplies (normally) and typically, a large number of products available to represent.
Some Considerations
? ? You still need to market „yourself? How much training is involved and what is provided by the company Is there inventory that you are required to carry and what is the cost Validate company stability and reputation Compensation plan – speak to realistic people who have been with the company for a time
Example Companies • • • Fuller Brush Company Tupperware Avon
?
? ?
The above companies and references are provided as an example and QBMG assumes no liability for the products, services or information provided by these or any other entities referenced in this document.
A source for Direct Sales companies is the Direct Selling Association - www.dsa.org © Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Business Planning Basics
Business planning should be the first step in starting your own business. Business Planning allows you to think through the Why, What, When, Where, and How aspects of your new venture. The following items should be addressed in your preliminary business planning activities. 1.Business Description – What products and/or services are you going to offer. 2.Motivation and Goals – Why do you want to start your own business and what do you intend to achieve? 3.Target Market and Customers – To whom are you going to sell your products and/or services. 4.Market Analysis – Is your target market growing, static or shrinking? Why? 5.Value Statement – What value will your product and/or service give to your customer. Will that value be perceived as worth the price you will charge for the product or service? 6.Competitive Edge – Who are your top competitors and why will people buy YOUR product or service. 7.Marketing/Sales Strategy – How are you going to market and sell your products/services? What is the estimated cost of sales and marketing programs? 8.Internet (e-commerce) Marketing and Sales Strategy – How will you use the internet and what are the associated costs? 9.Personnel Skills Assessment – What is your education background and work experience in the business you plan to start? Are there skills you will need that you do not possess? 10.Office Location and Business Equipment Requirements– Located in home or leased office space? Define all needed office equipment and associated cost. (e.g., desk, chairs, phones, computer, fax, internet, printer, etc.) 11.Business Name and Registration – What type of business organization will you register asSole Proprietor, Limited Liability Corp (LLC), Corporation, etc. Each type of organization has it own rules of operation. Understand what these are. 12.Licenses, Permits and Insurance– What license, permits and insurance are needed to operate. What is the associated cost? 13. Cost Analysis – What are all of my projected costs (fixed, variable, product, delivery, etc.) 14. Income Forecast – What are my projected revenues for the next set time period (typically one year) 15. Cash Flow/Break-Even Statement – What will my cash position be after accounting for estimated sales, costs and investments in my company. (typical time period is one year.) How much do I have to sell on a monthly basis to breakeven?
This Business Planning Basics outline is not intended to serve as a thorough business plan but as a preliminary guideline to help you think through important business planning aspects.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Getting Started Checklist
Done Action Create a Basic Business Plan Comments/Exceptions
If seeking loan or investor funding, a detailed plan is required. Except if working for a company or some types of subcontracting Requires registered business DBA Many available such as Quickbooks, Quicken, PeachTree or even Excel. Can be as simple as your company name Remember, your business card represents you!
Create and Register Business Name (DBA) Open a Business Bank Account Select an Accounting Program or an Accountant Create Company Logo Create Business Cards
You can create you own business cards but unless you can purchase professional grade card stock have them professionally printed
Create Company Stationary and Invoice Statements
You don’t need expensive software. Most word processing software have ready made templates.
Microsoft has numerous templates on-line that you can download for free.
Set-up An Organized Filing System
In your own business, time is extremely valuable. Don’t waste time looking for items or information.
Absolutely critical to finding what you need when you need it. Target customers, “elevator speech”, promotional tactics, sales aids, timeframes, etc. Remember, an object in motion, stays in motion.
Develop a Marketing “ATTACK” Plan
Get Going! Your business will only move as rapidly as the energy you devote to it.
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
Success Points to Ponder
1. Understand WHY you want your own business and keep that foremost in your mind PLAN – Create and Use a Business Plan – Create and Use a Marketing Plan Set and focus on Achievement Goals and Milestones Set-up Periodic Checkpoints and adjust your course as necessary Build in Rest Stops along the way Stay Focused and Energized
2.
Your Business and Marketing Plans Are Your Roadmaps!
IF YOU DON’T KNOW WHERE YOU ARE GOING – How will you know if you are headed in the right direction?
3. 4. 5. 6.
HAVING GOALS IS NOT ENOUGH
70% of Written Goals Are Achieved Only 7% of Unwritten Goals Are Achieved
Think SMART Make Your Goals… S = Strategic M = Measurable A = Achievable R = Repeatable T = Timely
Goals should be action plans that are documented and specifically address:
1.WHAT YOU WANT TO ACHIEVE
2.WHEN YOU WANT TO ACHIEVE IT 3.HOW YOU ARE GOING TO ACHIEVE IT
Objectives
Goals
Actions
Results
© Quadrant Business Management Group – All Rights Reserved
Helping Businesses Grow QBMG does not imply or guarantee any degree of business success by using the information contained within this document. QBMG assumes no liability for errors or omissions.
doc_680733257.ppt