Business Plan Basics for H.E. Auxiliaries Dr. Alex Herzog Vice President for Student Affairs & Enrollment Management Rochester Community and Technical College www.rctc.edu NACAS West 2014 Alex J. Herzog Ed.D. I am DR. Alex Herzog Scene from Treasure Planet Alex J. Herzog Ed.D. Overview of Session • • • • • • What do I know? Why have a plan? What is a Business Plan? Elements of a Business Plan My Experience with Business Plans Business Plan Resources. Alex J. Herzog Ed.D. Desert Survival Activity Alex J. Herzog Ed.D. The Task Your task is to rank these items, as a group, according to their importance to your survival, starting with “1" the most important, to “15" the least important. Alex J. Herzog Ed.D. The Desert Survival Answers # 5 - 1 top coat per person # 4 – Jack Knife # 3 – A cosmetic mirror # 2 - .45 Caliber Pistol (loaded) # 1 – 1 quart of water per person What was your plan? Alex J. Herzog Ed.D. A Business Plan is a Plan! Alex J. Herzog Ed.D. What is a Plan? Planning is a process for accomplishing purposes. It is a blue print of business growth and a road map of development. It helps in deciding objectives both in quantitative and qualitative terms. It is setting of goals on the basis of objectives and keeping with in the resources. http://en.wikipedia.org/wiki/Planning Alex J. Herzog Ed.D. Why its important to have a plan? Alex J. Herzog Ed.D. Why its important to have a plan? Alex J. Herzog Ed.D. Why its important to have a plan? Alex J. Herzog Ed.D. Purpose of a Plan Alex J. Herzog Ed.D. Three critical plan functions: Helps management to clarify, focus, and research their business's or project's development and prospects. Provides a considered and logical framework within which a business can develop and pursue business strategies over the next three to five years. Offers a benchmark against which actual performance can be measured and reviewed. http://en.wikipedia.org/wiki/Planning Alex J. Herzog Ed.D. What is a Business Plan? Definition: A document that describes the entrepreneur's idea, the market problem, proposed solution, business and revenue models, marketing strategy, technology, company profile, competitive landscape, as well as financial data for coming years. http://vcexperts.com/vce/library/encyclopedia/glossary_view.asp?glossary_id=10 Alex J. Herzog Ed.D. Fall 2012 Alex Herzog Ed.D. Typical Business Plan? Alex J. Herzog Ed.D. Shark Tank – The Pitch! Alex J. Herzog Ed.D. Elements of A Business Plan Alex J. Herzog Ed.D. Elements of A Business Plan Executive Summary Write this section last. It's just a page or two of highlights that sell your auxiliary service. It’s an elevator pitch in written form. Alex J. Herzog Ed.D. Elements of A Business Plan Company Description: Describe the institution and include its history. Include detail such as enrollment numbers and projected growth. Alex J. Herzog Ed.D. Elements of A Business Plan Product or Service: Describe what you're selling. What does your auxiliary service provide? How does the customer benefit from your service. What competitors are out there? Where do you get your supplies? Etc. Alex J. Herzog Ed.D. Elements of A Business Plan Market Analysis: You need to know your market, customer needs, where they are, how to reach them. Alex J. Herzog Ed.D. Elements of A Business Plan Strategy and Implementation: Be specific. Include management responsibilities with dates and budget. Who does what and when? ie. Who orders supplies and how? Who hires staff and process? Alex J. Herzog Ed.D. Elements of A Business Plan Management Team: Include backgrounds of key members of the team, personnel strategy, and details. Include your supervisors and any other administrators that have influence over your auxiliary. Alex J. Herzog Ed.D. Elements of A Business Plan Financial Plan: Include profit and loss, cash flow, balance sheet, break-even analysis, assumptions, etc. Include historical data on profit and plans for reinvesting future revenue. Alex J. Herzog Ed.D. Personal Experience What does one personally gain from writing a Business Plan? Alex J. Herzog Ed.D. My Experience with BP in H.E. What I think doesn’t make sense about a business plan for Higher Ed? Alex J. Herzog Ed.D. Business Plan vs. Success Plan Success Plan • Establish Goals 3 years out • Helps define where you’ve been • Outlines your plan. • Needs to identify problems and potential • • solutions Outlines what you are currently working with. Get buy in from Senior Administration & other departments Alex J. Herzog Ed.D. Business Plan Software Business Plan Pro Standard $99.95 or Premier $199 http://www.paloalto.com/ Biz Plans http://www.bizplans.com/ Plan Magic http://planmagic.com/ Adarus http://www.adarus.com/ Alex J. Herzog Ed.D. Easy, right!? Most business plans don’t get written because they seem like an overwhelming process. Alex J. Herzog Ed.D. New Concept in Business Plans: Alex J. Herzog Ed.D. Does this look familiar? Alex J. Herzog Ed.D. • • • • • Tips for Success… Keep a positive attitude, make short term goals to finish each step. Ask for help. (Business Class, Professor, SBDC) Know you are not alone in your efforts. Set aside time to work on it, make a COMMITMENT and set a timeline. Put an Advisory Committee together Alex J. Herzog Ed.D. Tips Continued • • • • Delegate sections to staff with timelines. Remember P5: Prior planning prevents poor performance! Start by establishing goals. And as a last resort you can always hire someone. Alex J. Herzog Ed.D. Use the resources you have! Alex J. Herzog Ed.D. Resources Small Business Development Centers http://www.sba.gov/ Robert Huber & Associates http://www.allcampuscard.com/ General Business Plan website http://www.businessplans.org/ Alex Herzog Ed.D. [email protected] Alex J. Herzog Ed.D. Questions & Thank you! My contact info: Alex J. Herzog Ed.D. [email protected] Rochester Community & Technical College Rochester MN Alex J. Herzog Ed.D.
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