1. Start with a blank spreadsheet. How you do that depends on which spreadsheet you're using. 
2. Set it up as shown in the illustration here, although don't worry about the formats, like white text on a black background or the colors of the cells.
3. Set up five years in a row along the top, naming them either with the actual name of the year ("2010" or whatever) or as numbered years "Year 1   Year 2" etc. 
4. Set up the title row like it's shown here, the row with the label "Potential Customers" in cell A3, "Growth" in cell B3, and CAGR in cell H3. CAGR, by the way, stands for "compound annual growth rate.

5. Set up one row each for each market segment. The example here shows three segments. You set up as many as you need.
6. Use column B in each of the segment rows to set up a cell to contain each segment's estimated annual growth rate as a percentage. That's a number.
7. Use column C in each of the segment rows to set up the initial estimated potential market number for that segment. It's a number. You type that number in.
8. Set up the following formula in cell H4: "=IF(C4<>0,(G4/C4)^(1/4)-1,0" ... don't worry if you see an error message, it will solve itself; it's missing numbers.
9. In cell D4, set up this formula: "=ROUND(C4*(1+$B4),0"
10. Copy cell D4 and paste it into Cells E4:G4.
11. Repeat steps 7-11 for each market segment row, but of course adjusting the row numbers in the formulas, so that, for example, in row 5 the formula in step 9 refers to C5 and G5, and the formula in step 10 refers to C5 and $B5. In row 6, C6, G6, and $B6. And so on. 
12. Set up the final summary row. Put "Total" in that row's column A. For it's column H, type in (or copy from another row and paste) the same formula you see in number 8, above. In this example, in which the totals are in row 7, it would be: "=IF(C7<>0,(G7/C7)^(1/4)-1,0". In column B, type in the formula: "=H7".
13. When you have your table as shown here completed, refer to your spreadsheet documentation (details vary) to create a market pie chart to illustrate the cells in the first year column. In this example, it would be the following:
14. For the text parts of this assignment, you can refer back to the assignment page and follow the suggested outline. Use your word processor and spreadsheet facilities to copy the table and the chart into the document, and then to print it out onto an Adobe Acrobat PDF document.

1. Review issues from previous class.
   • Additional resources for the market analysis assignment
   • Grading discussion: your own plan vs. group plans.
   • Readings: are you keeping up with the readings. What did you think about marketing vs. branding, in the readings?
2. Discussion: John Jantsch defines marketing as getting people to know, like, and trust you.
3. Discussion: What's branding? Personal branding? Why does it matter? How is it different from marketing?
4. Discussion: differentiate marketing vs. sales.
5. Discussion: using the class example from last time (the art theater). What kind of marketing would be appropriate? Advertisements, where? Flyers? Direct mail? Email?
6. Slides: Marketing Your Business
7. Discussion: how does segmentation fit into this
8. Discussion: how is marketing changing. New media: blog, twitter?
9. Discussion: marketing expense levels. What's appropriate? How to tell.
10. Discussion: marketing strategy pyramid

Step-by-step

1. You can use this link to purchase Business Plan Pro direct from Palo Alto Software. Or call the tollfree number at (800) 229-7526, or the local number at 541-683-6162, and ask for sales. Tell the salesperson you are using this for a class, and need academic pricing. There is no Macintosh version, but I use it on my Mac all the time, in Parallels.
2. Install Business Plan Pro. Notice the video tutorials, and the extensive help, and the technical support available for free by email or telephone. Please don't ask me to do tech support for the software.
3. You can use this link to get the file. It's also on the downloads page on this site. How you actually download depends on which browser you use. For example, in Internet Explorer you right-click the mouse and use the "save target as" option to download a file. Get the file downloaded and saved on yur disk.
4. Open this minimum business plan file from within Business Plan Pro.
5. VERY IMPORTANT: use the Save-As command to save the file with a different name. You don't want to work with the original, because then you can never start over; and you'll run the risk of having a classmate using the same name.
6. VERY IMPORTANT: Don't use the tasks view to go step-by-step. Use the outline view, not the tasks view, to show your files.
7. VERY IMPORTANT: Use the plan setup to make sure you're set for the standard plan: not the simple, and not the more detailed. If you don't, then the wrong outline points show up.

Here's what you should be looking at ... maybe not exactly, depending on where you are, but it should look something like this, with instructions showing on the upper left, an action window in the lower left (for text or tables), and the outline in the right (you an click on the picture for a larger view).

• Kawasaki, Chapter 4, The Art of Pitching.
• Really Bad PowerPoint

• PAYG, Chapter 5, pages 233-236

• 3 Weeks, Chapter 3, About Your Market

• PAYG, Chapter 5, pages 210-218

If for whatever reason you don't see the video here, you can click this link to go to the source video on the TED site.

1. One-page Business Description. Just click the link here for more instructions. Note that the title includes "one page." The details include some downloadable examples so you can see how others have done it. Due by 10 a.m. April 8.
2. Market Analysis. Three-page maximum, but this one includes one table, a pie chart if possible, and a few paragraphs of text. Plus some thinking, and maybe even some research. Due by 10 a.m. April 15.
3. Sales Forecast. Text explanation plus tables showing sales, by units if possible, and costs of sales, also called direct sales, for the first year broken down by month, plus years two and three. Due by 10 a.m. April 22.
4. Startup Plan. Text explanation plus tables showing startup costs broken into expenses and assets, and startup funding. Due by 10 a.m. April 29.
5. Summary memo. This will become the executive summary of your final plan. It's 2-5 pages, telling a hypothetical investor what you're going to do, how much money you need, and how and how much money you'll generate for the investor. Due by 10 a.m. May 6. Note: this would normally be the last step, but we need it to help you with the school-wide business venture contest.
6. Projected Profit & Loss. Also called Income Statement, or Pro-forma Income Statement, if you want to be formal about it. What this means in actual work is doing a list of salaries first, then expenses. When those two are done, you combine them with the sales forecast from assignment 3, add some text explanations, and you have Profit & Loss. Due by 10 a.m. May 13

1. Basic business numbers
2. Guy Kawasaki on The Art of the Start

Seth's Blog: Nine steps to Powerpoint magic

• Summary (could also be called "Executive Summary.") Text topic. Should include all of the information detailed in Assignment 1: the Opportunity and you're welcome to add to that as well. If you're working with Business Plan Pro, I like it to include the Highlights Chart. Pictures are welcome. You could also use what you did for Assignment 4: Summary Memo and bundle that into the plan. Edit this portion, so it isn't redundant; you probably used your assignment 1 as a beginning draft for assignment 4. I expect you to read and edit the final so you make it readable for me.
• Market Analysis. Text topics and at least one table. Should include all of the information detailed in Assignment 2: Market Analysis. Pictures and pie charts and bar charts are welcome.
• Strategy. One of more text topics. Ideally you've got something along the lines recommended in the reading, strategy as a combination of identity, market, and strategic focus. There's an outline example here, and you can click on it to jump to the Heart of the Plan material available online, which you also have in that Heart of the Plan section of the PAYG book in the readings. In addition, the Heart of the Plan video included in class 11 videos also covers that same material. Pictures welcome.
• Competitive Edge. Also called Secret Sauce. Text topic. Pictures welcome. For more on this, it should come up in class 5 on marketing strategy -- ask me about it if it doesn't -- and you should ask our guest speakers as well. Also, read Secret Sauce on the web.
• Startup Plan: Exactly as in Assignment 5: Startup Plan. That's at least one text topic and two tables, one for startup costs and another for startup funding. The best way to handle the text topic is to make sure that it includes the most important assumptions and explains how you intend to raise the money required (loans, investors, personal savings, etc.)
• Sales Forecast. Exactly as in Assignment 3: Sales Forecast. That's sales and cost of sales for the first 12 months and then added up into year 1, and then for years 2 and 3 of the plan as well. And it includes a text topic that explains your assumptions, and, ideally, a couple of business charts as well.
• Projected Profit & Loss. Exactly as in Assignment 6: Projected Profit & Loss. At least one text and a table; business charts would also be nice. If it's obvious how you make money then you don't need to elaborate, but for some of the more innovative new technology plans, if how you make money isn't obvious, then please make sure you talk about the business model.

• Cash flow. That requires some interaction between the profits, which you already have, and the balance sheet, which you don't necessarily have. If you're using Business Plan Pro, it's almost automatic. If not, there's a lot of detail available in the appropriate sections of the Plan as you go book and the hurdle book.
• Business offering (describing your product or service). This goes well as after the summary and before the market analysis.
• Company description: ownership, facilities, and so on. Goes well right after the summary, before the business offering section.
• Business model (as noted in the Projected Profit & Loss point above, only if it isn't obvious).
• Financial plan: description of funding sources, return on investment for investors, exit strategy.

1. Business planning requires a lot of flexibility. Every business plan is unique to the business and its specific situation.
2. There are a lot of resources out there that can help you do this. This is a good time to use some initiative. Particularly since your readings include two books on how to do a business plan.

1. Personnel plan, table, listing your projected salaries and wages and such for the first year broken into 12 months and then summed for the year; and then annually for the second and third year.
2. Profit & Loss, which should include totals from the sales forecast and the personnel plan, and also list expenses, for the first 12 months, then summed for the first year; and then annually for the second and third year.

• I'm not going to take attendance, but I'm going to be disappointed if you skip a lot of classes. And I'm also disappointed if you come to class and don't participate in discussion.
• I can't guarantee that I won't be offended if you're in class doing IM, Twitter, work for some other assignment, Facebook, or anything else. You're welcome to bring a laptop and take notes on it, but I'm a laptop addict myself and I'm quite guilty of not paying attention during a business meeting because I'm doing email. As a personal note, I really like twitter -- follow me as Timberry -- but I know it can be distracting. Because I suffer from the same online bad habit I'm noting here, I'm more likely to know it if you're doing it, and that will then be more likely to affect your grade.
• A good comment, a good question, an example at the right spot in the discussion, all of those can help your participation.
• Participating in the end-of-the-course business plan can make a big difference in your grade. It's not inconceiveable that you could have a C+ or B- in your business plan and then take an active part in the winning team, and end up with an A. On the other hand, I like to think that I can tell from the presentation for the contest when one or more of the group members weren't actively involved.
• Please don't email me your reason for not attending class. You're an adult now. I assume when you're not there that you had a good reason. I don't take attendance and there is no such thing as an excused absence.

1. Startup costs, as explained on pages 161-165 of the plan as you go book. Or you can click here for the online version.
2. Startup funding, as explained in the online example.

1. An explanation. Not a lot of words, necessarily, but at least a paragraph or two explaining the main assumptions. Why is it this and not double, or half of this? If you built it based on some assumptions (good idea), like for example chairs and tables and occupancy in a startup restaurant, then please share those assumptions with me.
2. Sales by month for the first 12 months of your plan, summed into a total for the first year, and by year for the second and third year. These should usually (but not always) be broken into units and price (revenue) per unit.
3. Direct costs by month for the first 12 months of your planned, summed into a total for the first year, and then by year for the second and third year.

• The chapter on Sales Forecast in the Plan As You Go book. Beginning of page 131, continuing through page 154. Also online, just click here.
• The Forecast Your Sales chapter in Hurdle: the Book on Business Planning. Also online, just click here.

Note: this is built into Business Plan Pro, so if you have the software the mechanics are very smooth. If you don't have the software, and you're doing it yourself, click here for do-it-yourself instructions.

This is a three-page-maximum PDF file or (preferably) BPDX file. Send it to me by email please, with the file attached. It should include a paragraph or so each for the following topics:

1. Summary: an introductory paragraph. Summarize the most important points. Only one paragraph please.
2. Ideal target: a profile of one ideal target customer (or organization). Use your imagination. Describe the ideal target customer including why he or she buys, what his or her problem is, how old, economic status, family status, favorite media, where you find this person to send a message -- but only in a paragraph or so, so write richly.  A picture is a good idea.
3. Market segmentation: most markets divide into meaningful groups. When I was consulting with Apple Computer in the 1980s, for example, we divided the personal computer market into segments including consumer, small business, large business, government, and other. For a local restaurant, segments might include families, university students, high school students, older people. For the college prep business I used as an example for assignment 1, segments were high school students, parents, and counselors/teachers.Create a table showing how the market divides into segments, as suggested by this illustration:

   
   
   (Click on the illustration for a larger view)

   Please don't get freaked out by the table. It's a simple spreadsheet, years from now into the future along the top, segment names on the side, and totals along the bottom. This isn't a course in market research. You're allowed to make educated guesses, as long as they make sense. And there is a detailed explanation of the table and how it shows segments, including even the compound average growth formula in the last column, in the Hurdle Book online in the section called Your Target Market Forecast. I've also added specific instructions on this site.

   If you can -- it's automatic if you're using Business Plan Pro -- include a pie chart of your market segmentation, something that will look like this:

   
   
   (You can click on the illustration for a larger view)
   

   You can probably see how that links directly back to the present year market segmentation, the first annual column in your market forecast table. And remember, if you're not using Business Plan Pro, you can still do this in Microsoft Excel, or Works, or iWorks. And the chart, while a nice addition, is not essential.

1. Market needs:  All marketing should be based on underlying needs. For each market segment included in your strategy, explain the market needs that lead this group to buy your product or service. Did the need exist before the business was there? Are there other products or services or stores that offer different ways to satisfy this same need? Do you have market research related to this market need?It is always a good idea to try to define your retail offering in terms of target market needs, so you focus not on what you have to sell, but rather on the buyer needs you satisfy. As a shoe store, for example, are you selling shoes or are you satisfying the customer needs for covered feet? Are there additional underlying needs, such as style and prestige for fashion footwear, or padding for runners, or jumping for basketball players, that relate to selling shoes? Are kids buying status with their basketball shoes?
2. Market trends: What factors seem to be changing the market, or changing the business? What developing trends can make a difference? Market trends could be changes in demographics, changes in customer needs, a new sense of style or fashion, or something else. It depends on what business you are in.For example, a building supply store might note the trend toward remodeling older homes instead of buying new homes, or a trend toward more rooms in larger houses, despite smaller families, because of home offices, dens, and exercise rooms.A grocery store might note a trend toward Asian foods or spicier foods, or toward fresher, healthier foods, or development of a new shopping area in a different part of town.A credit and investment counselor might note demographic trends, such as baby boomers aging, leading to a greater need for estate planning and retirement planning. Look to market trends as a way to get ahead of the market, to know where it is going before it gets there.
3. Market Growth: Ideally you cite experts: a market expert, market research firm, trade association, or credible journalist. But this isn't a class in market research. You have only three pages total, including the table and chart, so be brief.
4. Competition: Mention the main competitors, and the strengths and weaknesses of main competitors. You don't have a lot of space, but you might consider their products, pricing, reputation, management, financial position, channels of distribution, brand awareness, business development, technology, or other factors that you feel are important. Or maybe what's important is what segments of the market they operate in? What seems to be their strategy? How much do they impact your products, and what threats and opportunities do they represent?  Be brief.

Important additional details:

1. You can do this in Business Plan Pro, Word and Excel, Microsoft Works,  iWork, or any other tool that you like.
2. If you do it in Business Plan Pro, you can attach the Business Plan Pro BPDX file to an email. Otherwise, however else you do it, your final step is to get it into a PDF file format that takes up a single page maximum.  If you've produced it as something physical on actual paper, get it scanned into PDF to submit it.
3. Put your name on the filename, but not on the page as it appears printed.

Fine copper looms. An existing business, a real business. Click here for full-size.
Import/Export
Knowing which political party. A website to help young people figure this out.
Seattle Nanny Service
Mi Amor Coffee Shop
Men's Underwear Retail
Foul Smell Detector

Later: Some additional submissions:

• Social Media Cleaning
• Green events
• Specialty retail
• The Glover System
• DVD place

Do you want to suggest business ideas, or ask for feedback on an idea? Use the comments area here to add suggestions, or express interest -- maybe joining into a group? .

• Feedback: if you turn an assignment in on time I'll look at it and give you some feedback -- not a grade, but comments, possibly corrections, often praise, all indications of how this particular assignment will look as part of the business plan at the end.
• Risk: I'm human, so I'm influenced in an obvious way. I want my effort to review the assignments to help you. If you don't turn them in, or if the final business plan ignored my feedback, then I'm going to unconsciously lower your grade. And since this is all in the unconscious, I'm not sure how much.

1. Identify and explain a problem or need that your business idea would solve.Remember you don’t have to limit yourself to true needs, because wants and intangibles – prestige, good looks, business success, etc. – are also valid.
2. Explain how your hypothetical new business fills the need or satisfies the want.
3. Describe the ideal customer, or user, or target market company. Ideally you invent or dream up a specific person, with age, gender, economic stratum, job (or not), media usage, preferences; or a company, with industry type, size, location.

1. You can do this in Word, iWork, PowerPoint, Keynote, or any other tool that you like. Draw it by hand if you want.
2. However you do it, your final step is to get it into a PDF file format that takes up a single page maximum.  If you've produced it as something physical on actual paper, get it scanned into PDF to submit it.
3. Put your name on the filename, but not on the page as it appears printed.

1. Reviewing last class. You may already be behind. Notes, resources, a lot of information.
2. The survey. Only 6 students have taken it so far. Missing a bunch.
3. Questions: syllabus, assignments, and so on. Books, and book options

1. Discussion: Who is Guy Kawasaki? Guy Kawasaki book. What does he mean by make meaning? What does he tell us about starting up?
2. Discussion: blogs, twitter, sources of information.
3. Slides: new business ideas
4. Discussion: Somebody wants to start a business, and wants your money: what do you want to know?
5. Slides: finish the entrepreneurship overview
6. Discussion: ideas vs. opportunities
7. Discussion: businesses you know

1. Assignment coming: One-page business description.
2. The Quest for Adventure.
3. Joanna Van Vleck. The Trunk Club.

Last class today. Attendance is required as we review the last 7 business plans. Presentations and questions and answers.

I was very pleased with the presentations we saw last Wednesday. That was very good work. The high quality of all four made me proud.

I've been reminded by the registrar to remind you to please complete the course evaluation forms using Duckweb. Here's what they say:

UO's online course evaluation system is now open for Spring 2009 evaluations.  An e-mail has been sent to students in each of your classes announcing the opening of the system and asking them to log into DuckWeb to participate.  Reminders will be sent throughout the evaluation period to students who have not completed all of their evaluations.

Course evaluations will be open until 7:00 a.m., Monday, June 8 (the morning Final Exams begin).  Reports will be released to faculty after all grades are collected (anticipated date:  June 19).  More details and FAQs can be found on the Registrar's home page at registrar.uoregon.edu.

I hope you all do that, by the way, it looks like a welcome improvement over the old manual system with pencils, so I hope they get better results.

I will be working on grades after the Venture Quest event this coming Friday morning.

1. Review issues from previous class.
   • Discussion of business types, needed but in the readings.
   • Discussion of names and naming, needed but in the readings
   • Assignment 1: file problems, reading directions (sorry), reviewing what we've got.
   • Grading discussion: your own plan vs. group plans.
2. Slides: Know Your Market
3. Class example in Business Plan Pro:
   1. Open Business Plan Pro, then open the sample Business Plan Pro file. It should already have its settings.
   2. Open the outline view
   3. Show the topics and tables for the Market Analysis  chapter
   4. Show how topics can be added or deleted.
4. Review student ideas submitted for today's assignment. Select one, or work with students to select one. Use that as an example. Try to develop:
   1. Segmentation scheme. How would you divide up this market? What kinds of groupings would be useful.
   2. Basic demographics: numbers in each segment. Use the market analysis table from Business Plan Pro.
   3. Market growth, market trends. Add those topics into the mix.
   4. Show how you can select and create the PDF file, when done.
5. Discussion: market numbers as creativity. Especially segmentation.
6. Discussion: truth in surveys. Example of the employment numbers in February of 2009.
7. Discussion: business decision making.

• 3 Weeks, Chapter 10, Branding
• 3 Weeks, Chapter 12, Spread the Word
• Kawasaki, Chapter 8, the Art of Partnering
• Kawasaki, Chapter 9, The Art of Branding

• PAYG, Chapter 3, pages 83-92.

• The Lundquist School of Business Code of Ethics
• The minimum business plan Business Plan Pro starting file. This is a data file, an empty business plan, to be downloaded onto a Windows-compatible computer or Parallels or the equivalent on the Mac, and run with Business Plan Pro.
• Seth Godin's Really Bad PowerPoint essay.

• Three (3)  Weeks to Startup, Chapter 3, About Your Market

• The Plan-As-You-Go Business Plan, Chapter 5, Pages 210-218

Simple and practical market research is a vital part of most business plans. But the real value of telling your market story is to help you know and understand your market—the heart of your plan— and to help you shape your business, your products, and your services in the ways that will maximize your chances for success.

Slide 4-2: What's the Problem?

Does your product or service offer a solution to a problem affecting your potential customers?

Slide 4-3: What's the Solution?

If you have established what the problem is, how does your service or product solve it?

------------------

What motivates your customers?

• Hurdle: The Book on Business Planning, Chapter 11: Forecast Your Sales (www.hurdlebook.com)

• Three (3)  Weeks to Startup, Chapter 10, Branding
• Three (3)  Weeks to Startup, Chapter12, Spread the Word
• The Art of the Start, Chapter 8, The Art of Partnering
• The Art of the Start, Chapter 9, The Art of Branding

• The Plan-As-You-Go Business Plan, Chapter 3, pages 83-92

• The Art of the Start, Chapter 1, The Art of Starting  (TIM, are we pulling Guy's book out of this curriculum?)

• 3 Weeks to Startup, Chapter 1: Concept Kick Start
• The Art of the Start, Chapter 2, The Art of Positioning  (TIM, are we pulling Guy's book out of this curriculum?)

• The Plan-As-You-Go Business Plan, Chapter 3, The Heart of the Plan

• 3 Weeks to Startup, Chapter 2, Need to Know
• 3 Weeks to Startup, Chapter 4, Make it Legal
• Just Getting Going, Building, or Planning to Fly (Web only)
• Trunk Club: 4 Trunk Club Lessons for Entrepreneurs (Web only)
• Trunk Club: Startup Success Story (Web only)

• Nice Summary excerpt of book on business structure
• For guest speaker background, look up www.thetrunkclub.com
• OR, do the google search on the Trunk Club

• Three (3) Weeks to Startup, pages 23-26, Startup costs
• The Plan-As-You-Go Business Plan, pages 161-165,  Startup costs

But more about that later, first, for other people wanting to use what I've done here to help with teaching a similar course, the question is: what's in this for you, and how can you use it? So here is the answer, in steps.

1. This site is implemented in Wordpress, which is a free blogging platform.
2. What I'm offering to you is not a product, not for sale, and not productized; it's a head start, a completed site that you can use, if you want, to create your own. It's as if I gave you the Word document and you modify it.
3. I'm not selling it, I'm giving it to you, so for obvious reasons I'm not supporting it either.
4. Wordpress, however, has huge resources for support, and offers you for free a Wordpress blog site that you can use with this source material as your starting point. The information on that is at www.wordpress.com. I don't sell it, I don't get a commission, I just like and recommend it because it's free, and relatively easy.
5. So the first step for you is to go to www.wordpress.com and register a domain name (like yourname.wordpress.com) and start a wordpress blog. That's free, and well documented on the site.
6. Your next step is to get my exported file from this site, and import it into yours. I'm able to export the entire site into a wordpress-compatible file that you can get from me and then import into your own Wordpress site. After that, you can have a relatively easy job of editing it and making it your own. You will have complete control of everything on it, so you can:
• Change the banner. Use the Wordpress interface for that, and the help and instructions they provide.
• Change the assignments, syllabus, instructions, requirements, or any other part of the site, whatever you want, using the Wordpress editing interface, which I find relatively easy and intuitive to use.

I am working on developing more curriculum including many more professor notes, downloadable slides, exercises, and so on. That will be completed next September and released in Orlando at the annual convention of the Association of Small Business Development Centers (ASBDC. In the meantime, however, if this is useful to you, you can click here and use the specific facilities of whatever brower you use to get the exported file that you will import into your own site.