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A short presentation create for the "Advanced NFTE Entrepreneur\’s Summit" that details how to transition a business plan into an operating venture.
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Intermission: “I’ve Written Intermission: “I’ve Written the Business Plan, Now the Business Plan, Now What?”What?”A guide to narrow your activities when converting a well-researched business idea, into a sustainable start-up
04/08/23 Lawrence Elliott Ball (C) 2010-2011 1
Lawrence Elliott Ball, Undergraduate FellowThe Institute for Entrepreneurship, Leadership, and Innovation
Month 1Month 1Protect your intellectual property◦Incorporate your business◦Trademark, Register, and Copyright
any Logos, DBA’s, Slogans, etc◦Patent any business processes,
designs, inventions, pieces of intellectual process that drives business
◦Try using services like LegalZoom to simplify the process
04/08/23 2Lawrence Elliott Ball (C) 2010-2011
Month 2-4Month 2-4Define your “Sweat Equity”What are your strengths and
weaknesses?What questions do you still have?What help do you truly need?Launch a pilot program
04/08/23 3Lawrence Elliott Ball (C) 2010-2011
ExerciseExercise s: What is Sweat s: What is Sweat EquityEquity
“… a varying mix of human, intellectual, social, cultural, and financial capital…that when coordinated correctly… can contribute to a company’s success”
Campus CEO: The Student Entrepreneur's Guide to Launching a Multimillion Dollar BusinessBy Dr. Randal Pinkett
Definition: Time, effort, and hard work used to ensure the success of the business
04/08/23 4Lawrence Elliott Ball (C) 2010-2011
Sweat Equity Cont’dSweat Equity Cont’d• Human Capital: Knowledge & Skills• Social Capital: Valuable Relationships• Intellectual Capital: Inventions,
access to a knowledgebase, membership in societies, associations, professional groups
• Cultural Capital: Insight and understanding of the marketplace or business terrain
• Financial Capital: Access to capital or investments
04/08/23 5Lawrence Elliott Ball (C) 2010-2011
Month 5-6Month 5-6• Revisit your plan
– Tune-up your Market & Industry Research• Has your target market grown or? retracted?• Has the industry changed a great deal• Are your competitors thriving or struggling, if so,
why
– Find a trusted savvy individual to critique your financial assumptions and 3-year+ projections (are they truly realistic?)
– Revisit your mission and vision state and internalize the quality of your business and brand
04/08/23 6Lawrence Elliott Ball (C) 2010-2011
Month 7-9Month 7-9• Secure your
Team– Recruit individuals
willing to work to make the business successful
– Determine the values of your organization, and how you will treat partners as a manager
– Find allies with other startups that may need your services (and vice versa)
• Secure your Finances– Pool your capital and
create strict policies for managing “necessary” expenses
– Decide how much you CAN or CANNOT pay yourself
– Find the right banking organization and have both a savings and checking account
04/08/23 7Lawrence Elliott Ball (C) 2010-2011
Month 9Month 9Start your “Capital Budgeting Campaign”◦Depending on your venture type, you
may need to raise a significant amount of money for startup and cash on hand
◦Capital Budgeting is how you mix loans, equity, personal or family/friend contributions, and depreciation expenses (for equipment) together for your overall funding source
04/08/23 8Lawrence Elliott Ball (C) 2010-2011
LoansLoans• Loans require interest to be repaid
– What is the total principal– What is the interest rate– What is the repayment period, and
frequently do you make payments• A lower total % of loans funding your
business make it easier to manage cash flows and promote higher short term profits
• Tradeoff: not enough total capital may stifle your companies growth rate
04/08/23 9Lawrence Elliott Ball (C) 2010-2011
EquityEquityEquity is a controlling interest in
a company sold for cash◦Requires a legal agreement◦The value of someone’s share relates to the financial health of the organization
No interest payments affect cash flows
Tradeoff: normally results in long and complicated agreements
04/08/23 10Lawrence Elliott Ball (C) 2010-2011
Month 10-11Month 10-11Return to your Business Plan and follow your plan for starting up◦Complete your business identity:
stationary, product packaging, website, marketing materials
◦Follow your marketing plan for advertising and promoting – solidify your “distribution point” whether e-commerce site or storefront
04/08/23 11Lawrence Elliott Ball (C) 2010-2011
Month 12Month 12• Launch your venture, open your doors,
and remember the 4M’s
“Meticulously Monitor, Modify, and Manipulate…” – Your quality of products and services– Your price point and competitive edge– Your industry/market position and emerging
trends– Your use of technology to automate tasks– Your Business Plan based on “hits” and “misses”Create your OWN metrics to grow your business
04/08/23 12Lawrence Elliott Ball (C) 2010-2011
Developed by:Developed by:Lawrence Elliott Ball•2005 Atlantic Fellow, Merrill Lynch •2009-2010, Undergraduate Fellow, Howard University ELI Institute•Principal, Meshu Creative ServicesContact Me:[email protected]
04/08/23 13Lawrence Elliott Ball (C) 2010-2011