Presentation on theme: "Developing Your Institutional Plan Joan Gillman Director, Special Industry Programs Small Business Development Center UW Madison School of Business 608-262-9982."— Presentation transcript:
Developing Your Institutional Plan Joan Gillman Director, Special Industry Programs Small Business Development Center UW Madison School of Business
Small Business Answer Line Statewide Help! (800) Mon - Fri: 8:30 am - 4:30 pm
Planning The secret of success is to be ready for opportunity when it comes Disraeli
Planning Plans are nothing. Planning is everything! Dwight D. Eisenhower
What is a business/institutional plan? The finest memory is not so firm as written ink. Lao-Tse 1.A short written document. 2.A working model of your business. 3.A process of learning more about your business. 4.A tool to communicate to staff and BOD.
EAB Institutional Plan u The Mission/Vision u The Market – What is your business? – Who are your existing and/or potential customers and what motivates them to enroll in your institution? – How do you let customers know you are in business? – Who are your competitors and how are you different from them? u The Management – Who is in your management team and what each ones strength? – Who is on your advisory board?
EAB Institutional Plan u Conduct a SWOT analysis (strengths- weaknesses-opportunities-threats) – Write 3-5 goals from the SWOT analysis for strengths/weaknesses and how your institution will address them. 3-5 goals for opportunities-threats and how you will address them. – Include a time line for completion and metrics for success -evaluation/measurement.
EAB Institutional Plan u Future Think – Describe your institution 5 years from now and how it will be positioned in the market place.
EAB Institutional Plan u The Institutional Plan should be roughly three (3) pages. Accredited schools should adapt their corporate/accreditation institutional plan to fit the above requirements and have the Institutional Plan focus on its Wisconsin operation and students.
Mission Statement Worksheet u Customers u Products and/or Services u Markets u Economic Objectives u Beliefs, Values and Aspirations u Distinctive Competence u Competitive Advantage u Public Image u Concerns for Employees
Upstarts definition evolves... u Upstart is a publishing company. u Upstart publishes useful and applicable business management books for small business owners. u Upstart profitably publishes useful and applicable how-to material for motivated small business owners, would-be owners, and organizations interested in making small business owners succeed.
UW-Madison SBDC Mission u To enhance the success of small business owners and managers in our three county service area of Dane, Sauk and Columbia counties and to encourage growth in our economy. u To be a valuable and innovative resource for business, recognized by the business and economic communities as a major contributor to the economic health of our service area. u To achieve our mission through practical, customer- focused management education, training, counseling and networking.
The Market The number of people and their total spending (actual or potential) for your product/service within the geographic limits of your distribution ability.
The Market – What is your business? u What business are you in? u Why will you succeed in this business? u What is your experience in this business? u Why is your business profitable? u What is happening in the industry? Convince the reader (and yourself) that you have a solid knowledge of the business and industry.
What are you selling? Product or service: Perfume Features: Expensive Aromatic French Benefits: Hope Status Love
Who are your existing and/or potential Customers? u Consumers u Businesses u Manufacturers u Institutions u Government
Market Analysis u Find potential customers who want/need your product. u Identify customers who are ready to buy. u Let the customers know that you can fill their need. u Find the customers who will pay---you!
What motivates them to enroll? Your customers point of view u Benefits u Features conveying benefits u Competitive advantage of your products or service u Needs or desires they satisfy u Check insights with customers Whats in it for me?
Product and/or Service u What are you selling? u What are the benefits of your products and services? u What benefits are you selling? u What is special about your products and services? u Which products are rising stars? Cash cows? In decline or investments in owners ego? u Whats different about your goods and services? u What are your advantages over the competition? u Why will people buy from you?
Features versus Benefits Sample Features: Size Shape Weight Made of cotton Used by Laura As seen on TV Green Sample benefits: Convenience Safety Guaranteed Needs no replacement Surety Sex appeal Brings love, wealth and happiness
BASICS BASIC MOTIVES DONT CHANGE There are always the general wishes to become an attractive person, to love and be loved, to be part of exciting groups, to be viewed positively, to create a desirable home environment, to be a productive worker, to be in the know.
BUT...The ways to satisfy these wishes change over time and differ among market segments
You have to know: u Who are the individuals in your target market? u What, when and why do they buy from you? u What benefits do you provide them?
Target Markets Geographic u Distance u Time u Traffic patterns u Topography u Social & cultural factors
Target Markets Consumer Demographics u Age u Income u Social Class u Gender u Employment u Education u Residence u Family Status u Race u Religion
Target Markets Psychographics u Values, Interests and Lifestyles u Benefits u Hobbies u Reading u Occasions u Usage Rates u Loyalty
Keys to Marketing Success u Good product or service u Meeting a perceived need u Enough potential buyers u Advantageous timing u Brand name awareness u Differentiation u Saleable at a profit u Persuasive communication
How do they know about you? Promotions Advertising Publicity Public relations Word of mouth
Promotion The means by which a customer obtains information to make a purchase decision about your product.
Promotion Examples u A web site u Brochures u Press releases u Direct mail u Seminars u Conference presentations u Trade show displays u Radio/TV appearances u Ads in trade journals
Promotion u What is your advertising budget? u How do you promote your business? u Do your markets know what business you are in?
Competitors Direct: Indirect:
Marketing Competition Compare to your competition on: u Quality and performance u Warranty-guarantee u Service u Selection u Convenience-availability u Price
Marketing Competition Compare to your competition on: u Quality and performance u Warranty-guarantee u Service u Selection u Convenience-availability u Price You cant compete on all these areas and make a profit!!
Competitive Research u Advertising u Yellow Pages u Patronize u Ask your customers u Ask your suppliers u Start a file for each competitor, clippings, notes, copies of ads, filings, legal proceedings. Shop the competition. u The scouting reports. u Strategic alliances.
The Price/Quality Grid High Price Low High Quality Low Price
Management Functions u Planning u Organizing u Staffing u Leading u Communicating u Controlling u Innovating
Management u Who comprises the management team? u What are their qualifications? u Board of Directors u Advisors, consultants and others
What is a SWOT Analysis? Internal:External: StrengthsOpportunities WeaknessesThreats
Industry Analysis u Major players u Size of the market u Environment – Technological developments – Economic Developments – Regulatory Developments – Demographic Developments u Major trends
Goals S pecific M easurable A chievable R elevant & R easonable T imely
Future Think u What is your institution going to look like in 3-5 years. u How are you going to get there?
Assignment u Finish the Business/Institutional Plan BE SUCCESSFUL AND HAPPY, GO FORTH AND PROSPER