Create a name and logo?
Apply for your business license?
Find office space?
Get small business financing?
Write your Business Plan?

Nope. NONE of these!

Yes. That’s right a support group. At The Time To Change, we encourage all of our students and clients to develop a support group. Members can help you with various duties, the basics being:

1. Proof your business plan
2. Offer resources, including time, to help you with your startup.
3. Contribute ideas, alternate perspective, and challenge existing thought
4. Source of Motivation and Encouragement

Sometimes you can find members willing to contribute their expertise at no charge, but gently remind them that you may or may not use their suggestions. It is very important, when recruiting friends and family, to outline the rules in advance to avoid hurt feelings.

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All members of the incubator group needs to sign and date a confidentiality agreement for each business startup to be discussed at the meetings.

Contact The Time To Change if you need more information!

Before you start to do anything, and I mean ANYTHING, related to starting a small business, please, PLEASE create a business plan with the content listed below. Over 70 % of businesses fail within the first 5 years for a very good reason - not because they run out of money, which is just a symptom of a bigger problem... actually two problems...

they lack planning and try to do everything themselves, without seeking business consultants throughout each business life stage. So, you are going to spend a few hours a day for about a week in creating this plan. If you take any of our courses you will receive a business plan template, specific instructions on how to complete and we also provide Business Plan Review if you need it. If you don’t use us, use someone to review your final draft so you can insert formatting and content recommendations. If you do not have impeccable writing skills, write the first draft and have a professional writer edit.

OK, What Should YOU Include in YOUR Business Plan?

How extensive your business plan is depends on who the audience will be. When starting a small business, will you need to pursue financing – either venture capital or angel funding, bank loans or SBA loans, or maybe you are borrowing from family? Are you planning on franchising the business in the future? Are you planning to flip the business once it's value has reached a certain $$ amount. Maybe your audience will be your executive team, potential partners or Board of Directors!

Sections:

1. Background Information– When starting a small business, remember, Investors are not just investing in your product or service they are investing in YOU. You need to come out shining in this section.
   
   • A narrative of background and skills: only as applicable to the product you are selling. Do not focus on a skill or knowledge having nothing to do with your product/service or managing your business. A brief mention in that case is sufficient.
   • Financial Capability: In other words, how are you funding the endeavor? Do you have savings to pull from? Investors want to see business owners having a personal financial investment in their own company, even if only a few thousand dollars. Say how you will manage the risk……other sources of funding, selling personal stock, etc.
   • General Description of Business – Create a mission statement that can be used in your marketing material. Be clear and concise. Describe the type of business (sole proprietor, LLC etc) what, when, how, why, and where briefly. Include the geographic location proposed or address of office, plant, etc.
   • Operational Structure - Organization chart. List key team members within your organization and their roles. Mention any advisory team, mentors, associations or other outside consulting support.
   • Long-term goals, future opportunities

2. Product and Service – Starting a small business allows your creative juices to flow. Here you are convincing the reader why your product and/or is a good idea. This is your sales pitch.
   • Define your product and service in detail.
   • What solution does it provide and why customers will buy it. What are the benefits of your product/service.
   • Discuss the product development process whether it requires manufacturing, and if so, are you handling it or have you identified a vendor, is it shipped into the US or other locale, is it drop shipped from source, or perhaps it is a service you’ve developed internally, but describe this process in good detail. Do not indicate technical requirements for manufacturing process unless it's important to the audience.
   • Product Evolution- Will other products and services be created in the future and if so, what. How will this benefit the company and sales?

3. Market Evaluation – After discussing your product and/or service, you will want to document the market demand (or need) and the current supply (or competition). You’ll develop an argument for an existing need for your product or service, or you need to illustrate how you will be creating a market need. Evaluate all competitive products including those that are ‘perceived’ to compete with yours.
• Define current and future industry trends.
• Define your target market and customer profile.
• Estimate market size
• Explain Market Strategy including price, placement, product and promotion.
• Discuss competition and your product’s market advantage.
• Review barriers or challenges you may experience in selling, bringing the product to market, distribution, competing but most important how are you going to resolve these challenges.
4. Financial Plan – Starting a Small Business can be exciting, challenging, and rewarding. It can be many things but the one thing it has to be is profitable, if you are to stay in business long. (Speaking of for-profits that is)

   You, and your investors, will expect a loss in the early stages of business development. Just how long is expected will depend somewhat on the industry, scope and other factors but you need this information before completing your business plan.

   The Financial Plan is often viewed by your investors as the most important section of the Business Plan. Often, your audience will turn to the financial projections first to determine the return on investment... their investment, before even reading about the opportunity. Unless you have a strong financial background have an accountant who specializes in small business startup funding complete this section in its entirety, or at minimum, review your projections. Always highlight owner contribution to your business in both the startup phase and thereafter if necessary.

• Narrative explaining your assumptions and how you prepared your data.
• Typical Financial Projection Statements
• Income
• Cash Flow for minimum 1 year, recommended 3 years if pursuing funding
• Sales Projections – Use a Pipeline type report if you’ve already generated contacts and leads.
• Balance Sheet

After you, your writer and/or accountant, have finished the first draft, ask friends, family, and the Small Business Administration’s courtesy staff, to proof. You really should have a professional writer who comes with excellent references, proof your document. Everything from ease of reading to grammar. Does it make sense to them? Would they invest in your product? (Do not have any potential investors proof the document though). I suggest having 10 reviews, besides yourself, before it should be considered final

We are now finished with the first section of “ Starting a Small Business ”! The next section we will create your startup plan taking into consideration average time lines to get each task finished.

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