business plan
- layout
- chapter 1-5 quiz - 10% each (50%)
- question 1-4 - 5% each (20%)
- electronic @ jackr@nait.ca
- business plan: 30%
- hard copy
- electronic copy (word)
- business plan
- give bank/investor some info in order to ask for loan
- make you think the whole bunch of different things to determine whether the business is viable or not
- small business
- micro enterprise
- 5 or fewer employees (90% of Canadian business)
- should i be working for myself
- what are you selling?
- whom are you selling to?
- risky something to make profit
- speciallizing things are better
- advantage
- less workload (shared)
- scape goat
- shared investment
- shared knowledge
- shared risk
- disadvantage
- create partnership agreement
- capital and benefit
- who is override other one decision?
- someone out, how to end it?
- specification: products
- targeting: people
chapter 2: feasibility
- location/site
- working from home leasing/owning
- market potential
- protection
- feasibility
- items to consider
- location
- broad area - city - area
- site: exact address
- traffic
- road construction can effect if any
- visibility
- parking
- surrounding businesses
- home based business
- what am i selling, who am i selling it to can affects
- online
- d.j service
- adv
- tax breaks
- work in pijama
- disadv
- generally location should be near customers
- “convenient” (next to restaurant)
- are there enough customers in the area
- leasing/owning
- leasing is better; (don’t know how much room we need, thus don’t own building at first) it has option to move on (more freedom)
- owning is kind of tight to it
- lease agreement
- basic rent price
- market value per sq.ft
25ftx40ftx$15
- percent of sale
- maintenance, utilities
- length of lease
renewal terms (price can go up if business is booming)
- leasehold improvement
- is there enough business
- competition
- level of sales
market potential
- how much business is out there?
- market research
- secondary research (stat from government, sites…)
- primary research (do it yourself)
- competition
- direct: persue the same customers as you are
- indirect
sales forecast 3 years
- industry statistics
- customer buying intentions
- how long to get customers
- expert of opinion
- how much business your competition gets
- all the business out there
- $400k ~ $100k for each (4 business do the same thing)
- how much your business can handle (100% capacity)
- 8 hours/ day x 2 people per hour rate
protecting our business
- insurance
- small business insurance
- to protect our assets
- protect investors
- theft
- pilfering - theft in small quantities by employees
- how can we stop it
- sign out items
- educate employees about cost
- shoplifting
- retail theft while we are open
- kids (mostly)
- professional shoplifters
- how can we prevent it
- store layout
- visible aisles
- mirrors
- cameras
- embezzelment
- theft by person entrusted with handling company’s money
- lawyers/accountants/cashiers
- burglary
- theft while closed
- professional thieves
- alarm
- security
- cameras
- dogs
- bars
- keep lights on
- keep cash cabinet open
- robbery
- theft by force / threat by violence (while we are open)
- banks
- 24 hours/day (convenience)
- jewllery
- fraud
- deceit or trickery
- internet scams
- intellectual property
- patent - protection for new tech invention (20 years)
- must apply in all countries
- copyright
- not required to register
- 50 years after death of creator
- trademark
- industrial design (snap-on wrench, shape of cups)
- last 5 years, renews for 5 years (10 in total)
credit and collections
marketing - how are we going to get customers
- specializing in your target market
- projected image - what type of image do you want to project
- expected image - what people think your business is like
- cognitive dissonance: project image and expected image are so different
business name
- get attention
- easy to remember
- project the image that you want
- when selecting a company name
- what are you selling
- whom are you selling
marketing strategy / marketing mix
- product/service
- pricing
- lower, penetration price
- higher, price skimming
- same, competitive price
- distribution stategy
- how we get our goods/services to customer
- physical issues to move our product
- inventory
- ordering
- how long to get ?
- shipping cost ?
- transportation
- deliver guy represent the image
- promotional strategy
- how are we going to promote our business ?
- word of mouth vs marketing => promotion wins
- advertising
- publicity
- personal selling
- sale promotion
- websites
- direct mail
- postal tracks
- customer lists
- subscription lists
- compiled lists
chap 4: organize the work
- retail set up
- volume of shelf allocation
- how much space for each item
- how fast they sell
- don’t want shelf to be empty
- how many we have to buy at a time
- positioning of merchandise
- impulse
- located in check out line, end of alses
- boost shoppers ego with an impulse purchase
- security
- process set-up: group similar types
- product set-up: group things, which used to create particular product, together
- procedures
- sequential list: simply a list in the order things are performed
- bar graph
- flow chart
- quality
- supply the right quality for target customers
- Management - getting people to do work
- Leadership - getting people to work harder - motivation/achieve
- Leadership tips:
- Measure behavior
- Reward improvement (say good jobs, celerate)
- Take responsibility for employee well being (more important than wages)
- Show people you care
- Provide opportunity
- Dynamic leadership (listen to employee)
- Two false beliefs about pay
- Money is not the strongest motivatior
- Small firms can not afford to pay the same as large firms