Week 3 -- Business Planning

Skills Focus This Week:  

• Learn the essentials of business planning. 
• Prepare basic business plan.  
• Understand basic cash-flow planning (include your labor!).

Challenge:   Draft a 1-2 page business plan, one that will guide your actions through the rest of the trimester.  

Skills Focus Discussion Material:  

“Plans are worthless.  Planning is essential.”  Dwight D. Eisenhower.  

“Everyone has a plan . . . until they get punched in the face!”  Mike Tyson.  

Mere ideas do NOT = $$

We studied the primary elements of a business plan and helped each other with the planning process.  Two videos helped us understand basic planning, one from Startupdaddy.com and the other from the SBA.

We dove deep into the key elements of a basic plan, and we practiced creating a simple cash-flow spreadsheet to get our Entrepreneurs started on their own pro forma cash-flow statements:

1. Executive Summary
1. Summary of what you are up to and how your offering is distinct.
2. High-level pitch, making a strong case for success.  
3. Usually you want to write this part last.

2. Company Overview
1. Mission statement.
2. Location.
3. Who is involved in this adventure with you?
4. What are your / their qualifications?

3. Market Research
1. Detail the research you have done on the industry you’re looking into.
2. Detail your research on the competition and similar offerings already out there.
3. What are the legal requirements that will impact you, and how will you address them?

4. Product / Service Description
1. What are you selling?  Describe it in detail.
2. What makes it better than the competitors’ offerings?
3. Describe your present state of development and what your plan is to get it finished and ready for market (design phase, prototype phase, etc.)

5. Marketing / Sales Plans
1. Include your detailed marketing plan
2. Direct marketing and sales (person to person)
3. Online marketing and sales

6. Financials
1. Create a spreadsheet showing all your known costs (equipment, materials, and other stuff you need to buy)
2. Factor in your time as an expense item
3. Show your anticipated income over time (in weeks, months, or phases)

Summary of Pillars Perspective:  

This week we are looking at what makes certain individuals stand out from the masses. As we look at great entrepreneurs such as Elon Musk, Steve Jobs, Henry Ford, Benjamin Franklin, PT Barnum, Walt Disney, Thomas Edison, Ray Kroc, Tesla to see what they have in common.  We want to look at the threads of their success and who they are and how they continued to push forward through opposition and resistance.  

Project: Choose an entrepreneur and see what drives them and sets them apart.     

Guest / Field Trip:

Visit to Spingo! We met with the amazing Spingo team, thanks to founder and CEO, Kreg Peeler. Kreg shared stories from his lifetime of adventures, tinkering with his grandfather's railroad equipment as a boy, selling avocados from the "neighborhood witch's" field, and running backstage operations for school productions. Kreg's key advice to our young entrepreneurs from his own experiences: Don't worry too much about inborn talents, just work to develop skills around what you enjoy doing (and let the opportunities evolve from that). Also: be nimble and on the move: "you can't steer a parked car." We got to hear from various members of the Spingo team. All had wonderful words of wisdom. Thanks Spingo!!