GET IN THE BUSINESS OF BUSINESS PLANNING Connecticut Recreation - - PowerPoint PPT Presentation

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GET IN THE BUSINESS OF BUSINESS PLANNING Connecticut Recreation - - PowerPoint PPT Presentation

GET IN THE BUSINESS OF BUSINESS PLANNING Connecticut Recreation and Park Association Conference Michael McCarty, CPRP Executive Director Glenview Park District, Glenview, IL 1 Learning Outcomes 1. Participants will understand the benefits,


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Connecticut Recreation and Park Association Conference Michael McCarty, CPRP Executive Director Glenview Park District, Glenview, IL

GET IN THE BUSINESS OF BUSINESS PLANNING

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Learning Outcomes

  • 1. Participants will understand the benefits, functions and

purpose of a business plan

  • 2. Participants will learn the 11 components of a business

plan

  • 3. Participants will learn 5 steps to develop a business plan
  • 4. Participants will learn strategies to write a business plan
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Session Outline

I. What is a business plan, why do you need it? II. 5-steps to prepare to develop a business plan III. Components of a business plan

  • IV. Writing a business plan
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Road Map to Success

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What is a Business Plan?

  • A formal statement of a set of business goals, the reasons

why they are believed attainable, and the plan for reaching those goals

  • Internally and externally focused
  • It’s not a strategic plan or marketing plan
  • It looks very different for every agency

A good plan answers the following questions:

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Know the Answers….

  • What is it we want to do & why?
  • Who are we going to serve?
  • How are we going to do it?
  • How much money do we need

to do it?

  • Where could the money come from?
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Why is it important?

  • Identifies obstacles to success
  • Identifies milestones for success
  • Provides a tool to develop funding support
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Why is it important?

  • Focuses resources and activities
  • Develops internal and external

understanding of all aspects of the project, especially financial

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An opportunity to identify and understand your customers and stakeholders

  • Investors
  • Lenders
  • Donors
  • Sponsors
  • Regulators
  • Suppliers
  • Employees
  • Customers
  • Competitors
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FIVE STEP PROCESS TO PREPARE YOUR PLAN

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Five Step Prep Process

  • 1. Business Concept
  • 2. Gather Data
  • 3. Redefine your Concept
  • 4. Detail the Components of the Plan
  • 5. Make a Compelling Case
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Step One: BUSINESS CONCEPT

  • Clearly define what you want to do

– Something new? – Something better? – More of something? – Diversifying something?

  • What are you opportunities?
  • What are your threats?
  • SWOT

5 STEPS

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Step Two: GATHER YOUR DATA

  • Industry Analysis
  • What do you want to do?
  • Summarize the market
  • How does it relate to your

current operation?

  • Will it have an impact on

your plan?

5 STEPS

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Step Two: GATHER YOUR DATA

  • Robert Morris & Associates Annual Statement Study
  • Dunn & Bradstreet’s Industry Norms & Key Business Ratios
  • Leo Troy’s Almanac of Business & Industrial Financial Ratios
  • American Sports Data, Inc.
  • The Wedding Report
  • National Golf Foundation
  • Bizzstats.com
  • Hoovers.com

5 STEPS

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Step Three: REDEFINE YOUR CASE

  • Get consensus from

stakeholders

  • Hold outreach meetings,

charettes and work sessions

5 STEPS

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Step Four: DETAIL THE COMPONENTS OF THE PLAN

  • What are you going to focus on?
  • Make it relevant to your community, situation, political

and authorizing body

5 STEPS

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Step Five: MAKE YOUR CASE

  • Does a need exist?
  • Are you the best organization to fill

that need?

  • Can you make it a success?
  • Do you believe in what you’re doing?
  • Is it related to your mission?

If YES, then……

5 STEPS

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COMPONENTS OF YOUR PLAN

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Components of Your Plan

  • 1. Executive Summary
  • 2. Organizational Description
  • 3. Industry Analysis
  • 4. Market Analysis
  • 5. The Competition
  • 6. Marketing Plan
  • 7. Operations and Resource Requirements
  • 8. Management Team
  • 9. Long-Term Development

10.Financial Plan 11.Risks and Rewards

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Executive Summary

  • One to two page in length
  • What you are proposing
  • The goals & objectives of the proposed project
  • The existing market and your share
  • Your competitive advantage
  • The capabilities of your management team
  • Funding needs

The Plan

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Executive Summary must demonstrate that…

  • it makes sense and is thoroughly planned
  • Management is capable
  • the market exists
  • you have competitive advantages (what are they?)
  • the return (revenues or services) is worthwhile
  • contingencies are covered (back up plans)
  • the time line is realistic
  • the goals are achievable

The Plan

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Organizational Description

  • Mission Statement
  • Organizational Chart
  • Partnerships, suppliers, etc…
  • Brief description of the enterprise being proposed

The Plan

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Industry Analysis

  • Economic Cycles?
  • Seasonality?
  • Technical Sensitivity?
  • Unusual Financial Characteristics?
  • Potential Regulation/Certification Needs?
  • Material and Supply Interruptions?

The Plan

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Porter’s Industry Analysis

  • Five Forces of Influence
  • 1. Ease of entry
  • 2. Power held by suppliers
  • 3. Power of buyers
  • 4. Availability of substitute products or service
  • 5. Competitive rivalry

The Plan

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Market Analysis

  • The “niche” you’re pursuing (why is there a need?)
  • Who are the customers (patrons)?
  • Demographics (age, distance, demand factors)
  • Social economics (income, education, other factors relevant

to demand)

  • Purchasing patterns
  • Market size now and in the future (growth potential)

The Plan

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The Competition

  • Who, what, when, where and how much?
  • How will we compare to the competition?
  • What is your competitive advantage?
  • Where are they located and is the market saturated?

The Plan

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Marketing Plan: How will you get your product or service to the right place at the right time and at the right price?

Four P’s of marketing…

  • Product
  • Price
  • Place
  • Promotion (sizzle)

The Plan

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Guerilla Marketing

  • Find drama in your offering
  • Translate the drama into a benefit
  • State your benefits as believable as possible
  • Get peoples’ attention
  • Motivate your audience to do something
  • Be sure you are communicating clearly
  • Measure your advertising pieces against your creative strategy
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Operations and Resource Requirements

  • Brief explanation of the operation, technology used, hours of
  • peration, services, and anything that describes your approach
  • Consider personnel; when they will start
  • Consider promotions and when they will begin
  • Policy adoption: will it be necessary and factor it in
  • Licensing requirements

The Plan

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The Management Team

  • Brief review of key staff, their special skills, training and

experience to create confidence in the team

  • Summarize years of experience and special talents
  • Describe any new staff and their role
  • Describe your partners and suppliers

The Plan

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Long-Term Development

  • Milestones: 1 year, 3 years, 5 years
  • Goals: S.M.A.R.T.
  • Concept to Reality
  • Evaluation process and reporting

criteria

– Market share, breakdown in units, etc…

The Plan

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Financial Plan (Must match your milestones)

  • Balance Sheet
  • Income Statement
  • Cash flow analysis
  • Debt service
  • Break even analysis
  • Asset replacement needs
  • Operating budget
  • Start up expenses, for Marketing, Capital &

Personnel

  • Others (liquidity, activity, profitability &

debt/coverage/leverage ratios)

The Plan

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Risks and Rewards

  • Summarize the risks of the proposed project and how will

they be addressed

  • Estimate expected rewards, particularly if you are seeking

funding

  • What happens to any financial gain?

The Plan

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Writing the Plan

  • Truthful
  • Facts, no superlatives
  • “Research indicates” not “what we believe”
  • Business terms
  • Bullet points
  • Graphics/charts

The Plan

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WHO SHOULD WRITE THE PLAN?

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What Next?

  • Sell your Plan
  • Follow the Plan
  • Update routinely
  • Celebrate Success!

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The Plan

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Selling your Plan

  • Have Prior Credibility
  • Have the “Next Big Thing”
  • Adapt Your Story to the Listener
  • Make Buying Less Risky
  • Create Momentum

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SUCCESS!