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8905875395732000Setting up a businessTraining Session Plan6 sessions of 2 hours eachVersion 2.1Session & TimeWho?What?ObjectiveRequirementsProcessGetting ReadyBeforehandPlanning the courseTo arrange a course including:VenueFacilitatorsMentorsCourse promotionCourse feePeople interested in running a courseWorkbook copiesPeople interested in running a course should meet and decide on:Course dates – it is 6 sessions of 2 hours each, which is ideally run over 6 weeks (to allow participants time to do research between sessions), but it could also be run intensively over a weekend.Venue – could be run with several groups (of around 6 participants) in a larger venue, or as a smaller course of one or two groups in homes. Needs table(s) & chairs. You may like to provide refreshments.Course Facilitators – these people will present the course material. They do not need to be business people themselves as the material is fully provided and explained. Having several facilitators keeps a good variety in the presentation.Mentors – these people sit with participants in their groups, and assist with the exercises where needed. It is best if they are experienced in business, and ideally can continue to support the participants after the course to some degree.Promotion of the course – decide on your methods - emails, flyers, announcements, web page etc. Set up your application process – eg will you do this online or using paper application forms? Course Fee - you may choose to charge a fee for the course, to cover providing the course workbooks, venue hire, refreshments etc. How will you collect this in advance, or will you allow people to pay on the day?BeforehandPreparation for Course Facilitators and Group MentorsTo ensure that everyone is fully prepared to deliver the training materialSections of each session allocated amongst facilitatorsThis Training Session PlanWorkbookSlide packEnsure everyone has read the workbook, understands all the material in it, and can answer questions from participants on it.Course Facilitators should work through this Session Plan, deciding who will deliver which section. They should ensure they fully understand how they will deliver their sections, and the slides or flipcharts they will use. Print off a Training Session Plan for each Facilitator with allocations. You may also wish to print off copies of the slides for annotation.[Tech tip for facilitators – slides are numbered in this guide, and on the bottom right of each slide – to navigate quickly during presentation, you can type the slide number and press enter, which will jump to that numbered slide. In later versions of Powerpoint, if you press F5 it starts the slide show from the beginning, but if you want to start from a later slide - in normal view, select the slide you want on the left, and press Shift and F5 and it starts the slide show from that point.]BeforehandPreparation of Participant packsTo prepare packs of material for each participant includingPrinted course timetablesName badgesNumbers of participants bookedWorkbooks, timetables, notepads, pens, name badges, and folders for everyoneSlide packCertificates (for session 6)Feedback formsProduce a timetable for the course, including the day and time each session will be held (based on the template provided).Prepare packs for each participant – a folder containing their copy of the Workbook, a notebook and pen, the timetable for the course and a name badge.Facilitators and Mentors should also have name badges prepared.Add the names of anyone involved in delivering the course to Slide 3 – Introductions.Print off the posters for the training venue.You may wish to prepare completion Certificates with participants names on to give out at the end of the course in session 6.You may wish/need to prepare feedback forms for each session.On the dayPreparation of the venueTo set up the venue for the groupVenue access before the courseTables & chairsFlipchart & stand, flipchart pens, and blutack to stick sheets upProjector screen (or blank wall)ProjectorLaptopCable to connect laptop to projectorLaptop power cablePower extension lead if necessaryCatering if any refreshments are being servedPrepare the room by laying out tables and chairs for groups of 6-8 participants, so that everyone can comfortably see the projector screen, the flipchart, and the facilitators as they present the course. It is best if groups have an even number of people as some of the exercises are carried out in pairs.If there are going to be multiple groups, try to arrange the room so that each group can work together, whilst minimising the disturbance from the other groups.Make sure that you are familiar with any arrangements to evacuate the building in case of fire, and the location of toilets so that you can advise people of where to go.Set up the flipchart, the projector screen and projector. It is helpful if there is somewhere to stick completed flipchart pages up to refer back to – such as a wall where blutak is allowed, or spare flipchart stands, the back of a door, or some other creative solution such as string and pegs.Make any arrangements necessary for refreshments, and clearing away at the end.Set out the packs you have prepared, and the name badges.Stick up the posters for the venue, adding arrows and room names as appropriate.Session 1: Your business ideas1.1 - 10 min(0:00-0:10)[you may need a bit more time here if filling in any forms – it should be possible to catch up the time]Welcome & introduction to the courseTo settle everyone into the course, and to establish expectations on how people will get the most out of the course.To introduce the Arthur Rank centre and the Christian content of the course.Slide 1 – Welcome Slide 2 - PracticalitiesSlide 3 - IntroductionsSlide 4 – What this course isSlide 5 – Objectives of this courseWelcome everybody to the course and thank them for coming. Explain where fire exits and toilets are, and the timings of the course. Explain mobile phone policy. If you have any forms you must complete (e.g. as a condition of the course funding), hand them out now and help people complete them if there are any unclear questions.Introduce the Facilitators, and the Arthur Rank Centre who produced this course (mention here the Christian reflections within the course marked with a cross). Explain what the course is. Go through the objectives of this course.1.2 – 5 min(0:10-0:15)Making groups[skip this if only one group]To divide participants into groups of 6-8 with a mixture of business experienceSlide 6 – Organise yourselves into groupsExplain that the training involves some group work, and it works best if groups have a mixture of experience in them. Ask people to divide themselves into the four corners of the room based on their experience of business. Then reorganise them into smaller mixed groups by picking out people from each of the corners, so that each group has a range of people who already run a small business to people who have never set up a business before.1.3 – 10 min(0:15-0:25)Introductions within groups [combine with 1.4 if one group]For people to meet others in their groupSlide 7 – Introduce yourselvesExplain that they will stay in these groups for the course.Ask the people in each group to introduce themselves to one another, by giving their name, what they hope to get out of this course, and their biggest worry about setting up in business.1.4 – 5 min(0:25-0:30)Hopes and concernsTo understand exactly what people want out of the training in their own words.To reassure any with concerns and create a hopeful, enthusiastic group.Slide 8 – Flipchart exerciseFlipchart – headed ‘Hopes and Concerns’Ask each group to tell you one or two of their main hopes for the course, and also one or two of their main concerns. Write these up clearly on the flipchart. Stick the finished sheet up on the wall, We will all work towards achieving the hopes and minimising the concerns.[you may want to keep the Hopes and Concerns flipchart page, or take a photo of it, so that you can revisit them at the end of the course]1.6 – 5 min(0:30-0:35)Course programmeTo ensure a full understanding of when each session will be and what it will coverTo encourage commitment to the work.Slide 9 – Course programmePrinted course programmes in people’s foldersExplain how the course will work - when each session is, its timings, and what it will cover (this is detailed on the course programme in people’s packs).Emphasise the importance of committing to do the homework research and exercises to the success of the course.1.7 – 10 min(0:35-0:45)Successful vs failed businessesTo start to think through what makes businesses successful or failures.To not be disheartened if they have had a failed business already.To realise that successful entrepreneurs often have several failed businesses behind them.Slide 10 – Flipchart exerciseFlipchart – headed Success & FailureNow we’ll do Ex 1 in the workbook together, as a warm-up / brainstorming exercise.Put the first column heading ‘Business’ on a flipchart (leave space for two more columns). Ask ‘Who do you know who has a successful business?’ – ideally someone they know personally but could be someone famous, or a local business they like. Write names on the flipchart. Write the second column heading ‘Why’, and ask each participant who responded ‘Why is their business successful?’ and write up a few answers. Ask ‘Was it their first idea?’ and write ‘first’ or ‘later’.Draw a line under those answers, and change pen colour to indicate we are now discussing failed businesses. Ask ‘Does anyone know anyone who has failed in a business? – What was the business? Why did they fail?’ and write a few up.Ask ‘Do you know what have they learnt about making a successful business?’ and write any points up.Explain that successful entrepreneurs often have several failed businesses behind them.1.8 – 5 min(0:45-0:50)What is a business?To start to think about what is important in a successful business, and what they therefore need to work toward.Slide 11 – How business works - diagram of biscuit-maker’s business (from page 4 of workbook)Put up Slide 11 - the biscuit-maker’s businessAsk the group to explain bits of what it means – what makes each loop important? Are we are looking for more or less money in that loop? What are the main influences on the amount of that money?Ask the group if they can relate any reasons for success or failure in Ex 1 to this diagram – draw out a few examples.1.9 – 10 min(0:50-1:00)Products and servicesTo start thinking about different types of businesses by using the subtypes Products and Services.To get enthusiastic about how many good business ideas there are out there.Slide 12 – Flipchart exerciseFlipchart - headed Products and ServicesTo be successful, a business has to do something that someone else wants enough that they are willing to pay enough for it. Explain ‘products’ and ‘services’ (from page 7)Ask for examples of products and write them up.Ask for examples of services and write them up.Allow participants to copy the examples into Ex 2 in their workbooks.1.10 – 15 min(1:00-1:15)What is YOUR business? Part 1 – what do people need?To generate a list of needsTo realise that people need a huge number of things.Slide 13 – What do people need? (diagram of biscuit-maker’s business with loop indicated)Slide 14 – Workbook Ex 3 – What people need.We are now going to generate a list of business ideas. A lot of participants will already have a business idea they want to work through, but everyone should have a go at all the exercises, even if they already have an idea - for their next business idea, to have ideas to compare, and to learn the method so they can help others come up with ideas.Put up Slide 13 – Biscuit-maker’s diagram.We will start with the lower right-hand loop – people will only pay for something they want or need, so let’s start by thinking about what things different types of people need. Turn to Ex 3 in their workbooks, read the paragraph next to Ex 3, and have a go at generating as many needs as possible (either in the workbook or in their notepad).When time is up, ask them to leave enough room to have filled 2 pages worth, as their first bit of homework.1.11 – 10 min(1:15-1:25)Charities and social enterprisesTo realise there are options for helping people who can’t pay and to point participants to sources of information.Awareness of different models.Page 9 of workbookSlide 15 – What if people can’t pay for their needs?Businesses are only successful if people are willing and able to pay enough for their products or services. Explain several models to work with people who cannot pay enough, such as charities, business cross subsidisation, social enterprises, and cooperatives. There is some info on page 9 of the workbook, and some references in the appendix to some excellent online resources. This course will be useful for any organisation that trades (buys and sells anything).1.12 – 10 min(1:25-1:35)What is YOUR business? Part 2 – what do I have the abilities and resources to do?To generate a list of abilities and resources.To realise that they can do a huge number of things.Slide 16 – My abilities and resources (diagram of biscuit-maker’s business with ingredients & equipment loops indicated)Slide 17 – Workbook Ex 4 – What do I have the abilities and resources to do?Put up Slide 16 – biscuit-maker’s businessPoint to the ingredients, and the equipment, and the biscuit-maker doing skilled work in the middle, and explain that we are moving on to these loops – which are our abilities and resources.Explain abilities and resources (pg 10) – what can you (or those working with you) do? And what have you got access to (or could borrow)? This could include things like access to a group of willing volunteers. Give people 5 mins to have a go at Ex 4 using the five questions in the paragraph next to the box to stimulate thoughts.1.13 – 20 min(1:35-1:55)What is YOUR business? Part 3 – new business idea generationTo generate a list of business ideas to choose from.To expand our thinking on what we are able to do.To further extend our lists of matches so that we have a wider choice about what we might to do.Slide 18 – Business idea generation (Venn diagram from page 7)Slide 19 – Workbook Ex 5 – New business ideasPut up Slide 18 – Business idea generation.Explain each circle in turn (slide is staggered) ‘what other people need me to do’, then ‘what I am able to do’, and of those ‘what I want to do’ – and where they intercept is a potential successful business - ‘kerching!’Give people 10 minutes to compare the two lists they’ve made, to come up with some business ideas in Ex 5.Ask participants to pair up with someone in their group, and spend 5 mins looking at each other’s lists of what they have the abilities and resources to tackle, to encourage one another, and see what else they might be able to think about doing and to extend their list in Ex 5.1.14 – 2 min(1:55-1:57)HomeworkCome up with a business idea to use for this course.Slide 20 – Session 1 HomeworkEx 6 – Think about the choices you’ve madeContinue with exercises 3, 4 and 5 to generate a list of business ideasRun their shortlist by their friends this week – do they need to meet up with them in the pub, or have someone over for coffee or dinner? Complete Ex 6 – Think about the choices you’ve made.Next week everyone will need to have one idea that they can use to work through on the course – even if they don’t end up actually doing it!1:15 – 3 minFeedback formsGet participant feedbackSlide 21 - Feedback formsHand out feedback forms and ask people to complete them and hand them in on their way out.After Session 1Facilitator feedback & clear upMake any improvements necessary to the pleted feedback formsFacilitators should have a quick meeting after the session to review the feedback forms and agree any changes necessary for the next session.Venue clear upSession 2: Customers and competitors2.1 – 5 min(0:00-0:05)Welcome backTo welcome people back and explain the agenda for this sessionSlide 22 – Welcome backSlide 23 – Session 1 homework wasSlide 24 - AgendaWelcome people back to the coursePut up last session’s homework and ask people (generally) how they got on with it.Run through the agenda for session 2.2.2 – 10 min(0:05-0:15)What is YOUR business? Part 4To make sure everyone has selected an idea to work through as the basis for the rest of the training, and to share this with their group.Confidentiality.Slide 25 – What is your business idea?Everyone needs to have selected one of their ideas to serve them for the rest of this training. It may not be their last, only or final idea, and it will be OK to make a mistake, but it will give them experience of working through a business to assess its viability.Ask participants to share their business idea briefly with their group. Emphasise that they should keep things shared within their group confidential unless they ask permission to share the information.2.3 – 15 min(0:15-0:30)Why do I buyTo build a clear understanding of the factors that encourage customers to buy from youSlide 26 – What makes a customer buy? (diagram of biscuit-maker’s business with lower right hand loop indicated) Slide 27 – Flipchart exerciseFlipchart headed ‘What makes a customer buy?’Slide 28 – Workbook Ex 7 – Why do I buy what I buy?Put up Slide 26 - they can now replace the biscuit maker in the centre of the picture with their own business idea - and use the picture to think through whether their idea will work.The first loop we need to check is the one on the lower right – ask ‘what makes the customer in the right of the picture buy his biscuits from this biscuit-maker?’Flip chart the answers (ensure that the list includes quality and price). Circle the item related to price - we want as many people to each spend as much as possible. Ask for ways in which customers would be willing to spend more (perhaps by improving other items on the list).3 mins to try Ex 7 – Why do I buy what I buy?We will be exploring this later this session, and for homework.2.4 – 30 min(0:30-1:00)‘Better’To think through the factors that make you better than your competitorsSlide 29 – Flipchart exerciseFlipchart of 5 types of betterSlide 30 – examples from an earlier courseSlide 31 – Workbook Ex 8 – How can you make your product or service better?We need to make our product or service ‘better’ – more suited to what customers really want, for the whole of their ‘customer journey’ right through from first call to aftercare. This is a very simple concept but not every business does it brilliantly.Flipchart the 5 types of better (from the paragraph next to Ex 8) and get people to come up with a few examples for each (have a few prepared in case they get stuck).[Slide 30 – examples from an earlier course]20 minutes to work in pairs on Ex 8 – use the numbered points next to the exercise to help guide your thoughts.2.5 – 10 min(1:00-1:10)Customer profileTo think through who your customers might beSlide 32 – Workbook Ex 9 – Customer profileIn many areas of our business planning, we need to think through who our customers might be – for example to target our advertising effectively.Explain customer profiling.5 mins to have a go at Ex 9 now – there are some useful questions in the paragraph to the left of the exercise.2.6 – 10 min(1:10-1:20)What have my competitors got right?To learn from our competitors – what have they already learnt and get right?Slide 33 – Who are my competitors?Slide 34 – Workbook Ex 10 – What have my competitors got right?In Ex 9 we identified the type of people who might buy our product or service. The last question asked how they currently have their needs met. Anyone who is meeting the similar needs of our customers, even if it’s in a different way, is our competitor. For example, if our customers’ needs are ‘an overnight stay in our village’ then our B&B is competing not only with other B&Bs in the area, but also the village pub with rooms, and the hotel up the petitors are in business because they have got some things right for their customers – not everything – but we can learn on the cheap from their hard-won experience! This is what Ex 10 is all about.We now need to identify all of our competitors, make a list of them all, and then go out to seek what they have learned. This will be either in person, or online. Look at Ex 10 – the paragraphs next to it has some questions to think through, about what your competitors have got right.Start Ex 10 and complete it for homework – you may need to visit your competitors premises or do online research.2.7 – 10 min(1:20-1:30)Specific competitor researchTo carry out a full survey of all competitorsSlide 35 – Workbook Ex 11 – Specific competitor researchOnce you have identified your competitors, and tried to work out why they are successful, you need to do some specific detailed competitor research, looking in particular at pricing, and their strengths and weaknesses.Ex 11 lays out a table you could use to make sure you have been thorough in your research. It’s essential to carry out a comprehensive analysis of your competitors so that you know where your business would ‘sit’ in the market – by which we mean do you plan to undercut your competitors on price, sit mid-market or go for the upper end of the market? Is there stiff competition (in which case how will you beat them?) or no competition (if so, why – is there really a need for your product or service and are people prepared to pay what it costs?).Start Ex 11 with what you already know, and complete it for homework – you may need to speak to your competitors, or a similar business elsewhere, and do some online research.2.8 – 15 min(1:30-1:45)Explanation of homework on customer researchPlanning for customer researchTo prepare for homework which is to carry out customer research by speaking to real customers, and to find out exactly what they want or need.Slide 36 – What do customers actually want?Slide 37 – How will I carry out Ex 12 – ‘Better’ as my customers see itSlide 38 – Pair exercise – planning for customer researchThe homework for this session is ‘market research’ and is vitally important to a successful business. The best quality information comes from talking directly to people.In Ex 8 we thought about how to design your product or service to better need your customers’ needs. This was theoretical! Until we actually talk to our potential customers, we won’t know what they actually really want and value and would pay more for - we are just guessing! So many businesses do this – they forget to talk to their customers or their potential customers – they just design their product or service based on what they guess customers might want.How can we find customers to talk to? In Ex 9 we thought about who our customers might be and wrote a customer profile – this should help us to work out where to ‘find’ our customers to do our research. For example if our customers are local people visiting a market, we should go on market day, stop people and ask questions. Or if our customers are only online and we cannot talk to them directly, we may have to read reviews of competitor products and work out what customers value.The homework is Ex 12 which is ‘Better as my customers see it’. You need to ask your customers what is important to them, and what do you have to get right to be better than my competitors. It is vital that you do it, so the next two exercises are to prepare.10 mins to work in pairs - make plans for how to carry out your homework to find out what your customers really want, and maybe talk to competitors too if feasible. Where will you go? When? Who will you ask? What will you ask? Where else could you find useful information?2.9 – 10 min(1:45-1:55)Practising for customer (and competitor) researchTo provide the opportunity to practise asking their questions and gain enough confidence to do itSlide 39 – Pair exercise – practising for customer (and competitor) researchMany people will find direct research a difficult thing to do – to walk up to strangers and begin a conversation – but it is a key business skill, and it is vitally important to your business that you develop the skill - it will get easier with practice.3 mins each to practise opening the conversation, with one person playing the stranger, and then swapping roles, until you feel more comfortable with what you are doing.[If both people in a pair find their business is unsuitable for direct questioning of either customers or competitors, they can use this time to continue planning their research and how they will find real opinions.]2.10 – 2 min(1:55-1:57)HomeworkEnsure everyone knows what they’ll be expected to do before the next session.Slide 40 – Session 2 homeworkEx 10 – General competitor researchEx 11 – Specific competitor researchEx 12 – ‘Better’ as my customers see itFinish Ex 10, Ex 11 and Ex 12 to get a comprehensive picture of the competition, and what their customers really want. You may also want to look up any relevant BOPs (Business Opportunity Profiles) which are documents about a business sector available in libraries (and for a small fee online) – see Appendix G.Next session we will look at planning how our business will operate.2.11 – 3 min(1:57-2:00)Feedback formsGet participant feedbackSlide 41 - Feedback formsHand out feedback forms and ask people to complete them and hand them in on their way out.After session 2Facilitator feedback & clear upMake any improvements necessary to the pleted feedback formsFacilitators should have a quick meeting after the session to review the feedback forms and agree any changes necessary for the next session.Venue clear upSession 3: Marketing and planning3.1 – 15 min(0:00-0:15)Welcome backSlide 42 – Welcome backSlide 43 – Session 2 homework wasSlide 44 – Research feedbackSlide 45 – agendaWelcome people back and ask them how they got on with their customer and competitor research. Take feedback from one or two people about how it went, and ensure they bring out what they learnt and how they think they benefited. Ask the groups to discuss their research results together for 10 minutes, using the questions on the slide.Explain that today is about marketing and planning your business. 3.2 – 15 min(0:15-0:30)Calculating the marketSlide 46 – ‘Total accessible market’ and ‘Market share’Slide 47 – Flipchart exerciseFlipchart headed Calculating the marketSlide 48 – Workbook Ex 13 – Calculating the marketExplain ‘total accessible market’ and ‘market share’ (page 19 of workbook). Ask for a volunteer participant to use their figures (someone who has identified a number of direct competitors), and go through Ex 13 – Calculating the market - parts 1-3 with their numbers.Check whether this market share is achievable, and do Ex 13 part 4 with them to forecast how quickly they can build up to their market share.Give participants 5 min to calculate their own market share.3.3 – 20 min(0:30-0:50)Advertising strategySlide 49 – Advertising strategy optionsAppendix BSlide 50 – Workbook Ex 14 – Advertising strategyHow are you going to reach your future customers to achieve your market share? Explain advertising strategy (page 20 of workbook and Slide 49). Refer to Appendix B - tips and ideas on marketing, sales and designing your promotional materials and website.Give participants 10 min to complete Ex 14 and the advertising actions box below it.3.4 – 30 min(0:50-1:20)Developing a process mapBy using the biscuit maker example, explain how process mapping works, and can be expanded to plan how to operate ‘better’ for customers.To enable each person to start to develop their own process mapSlide 51 – Process map for baking biscuitsSlide 52 – Flipchart exerciseFlipchart – Missed stepsSlide 53 – Examples from an earlier course – Missed stepsSlide 54 – What customers see as betterSlide 55 – Flipchart exerciseFlipchart – Doing better table (part pre-written)Slide 56 – Workbook Ex 15 – Doing better tablePut up Slide 51 – Process map for baking biscuits.Explain what a process map is.Ask whether there are any steps missed out.Write these up on the flipchart, heading it ‘Missed Steps’.Put up Slide 54 – What customers see as better – these are the results of the biscuit-maker’s customer research.Like the biscuit-maker, we each have a list of ‘better’ from our customer research. The next exercise shows us how to tailor our processes around our customers. We compile a table from our process flow. For each process step we think how we can do it ‘better’ (from our customers perspective), and what equipment, people and skills will be required.Reveal the Flipchart – Doing better table (which is mostly completed but missing a few bits). Ask what is missing, bearing in mind what customers see as better (on Slide 54), and write these into the flipchart.Working things out on paper is cheaper than making expensive mistakes in real life, and makes it easier to spot any missing steps or potential improvements for the customer experience.For the flipchart exercise, create two columns - write out the Biscuit maker’s Process Map (from page 21) in the first (you may wish to pre-fill this), and head the 2nd column ‘Doing Better’. Put up Slide 54 – What customers see as better. Go through each ‘better’ point and get the group to identify how to make that happen against the relevant process steps. For example ‘good taste’ might require Step 1 (Buy Ingredients) to specify ‘high quality, fresh ingredients’, and Step 7 (Turn biscuits) to specify ‘cook for exactly 8 minutes at 200C’. ‘Does not go stale quickly’ might require step 11 (Deliver biscuits) to specify ‘Deliver within 1 day’.5 minutes to have a go at your own process map – by doing the first column of Exercise 15 – the ‘Doing better’ table.10 more minutes to think through the last 3 columns – what would ‘doing better’ look like? What tools or equipment will each step need? What people or skills will each step need?Complete for homework – could you find friends who will help you to act out your process steps, and spot anything you’ve missed?3.5 – 10 min(1:20-1:30)Keeping costs downTo think through our costs carefully.Slide 57 - Diagram of biscuit-maker’s business with the two loops highlighted Slide 58 – Workbook Ex 16 – Keeping it simple and inexpensiveReflect back on the diagram of the biscuit-maker, and the two loops on the left and top - ingredients and equipment.Ask how much do we want to spend on them?What will happen if they’re too high? (lose money, loan too big to pay back)What will happen if they’re too low? (problems with poor quality or breakdowns, could put supplier out of business)Now for a quick chance to get a second opinion if there are any areas where business costs could be reduced, whilst still ‘doing better’. 5 mins to do Ex 16 – Keeping it simple and inexpensive.3.5 – 10 min(1:30-1:40)Planning the businessTo start to plan set up actions and costsSlide 59 – Biscuit-maker’s action listSlide 60 – Workbook Ex 18 – Planning the businessNow we need to start putting some costs against how we will run our business. Homework will be completing our process planning, and writing an action list of what we need to do, and the costs involved. Put up Slide 59 – Biscuit-maker’s action list. Here is an example, from the workbook.Go through the kinds of things to think through (from words on pg 25). Ex 17 will be homework.10 mins to have a go at Ex 18 - using the checklist to the left of the exercise. Some (but not all) of them will have a cost – buying equipment, installing equipment or services, renting premises, legal fees, licences etc. Use the suggestions you’ve come up with from your Participant example pleting the cost column will be vital homework, ready for session 4.3.6 – 15 min(1:40-1:55)Key risksTo identify key risks and plan ways to prevent or mitigate them.Slide 61 – Identifying the key risksSlide 62 - Workbook Ex 20 – Key risks and how to avoid themExplain how planning can help us manage risk (page 27).Put up Slide 61 – Identifying the key risksExplain likelihood vs impact, and how to identify the key risks – decide on likelihood (high, medium or low) and impact (high, medium or low) and focus on the high-highs, and the high-medium/medium-highs.Give 5 mins for participants to write their key risks (first column of Ex 20 – Key risks and how to avoid them).Give 5 mins to identify ways to prevent or mitigate those risks (second column of Ex 20).Spend 3 mins working in pairs to review your list and add any ideas. Complete for homework.3.7 – 2 min(1:55-1:57)HomeworkTo have done enough preparation on your business’s finances to have figures to work with next session.Slide 63 – Session 3 homeworkEx 17 – Initial planningEx 18 – Planning the business (set up costs)Ex 20 – Key risks and how to avoid themCosts researchPrices researchIn session 4 we will be looking at all the costs associated with our business – the start up costs (which will include all the costs of setting up that you list in Ex 18), and also the running costs, and we will also start to look at your plete Ex 17 and Ex 18, researching all your set up costs. eBay is a good place to find equipment costs (new and used).You also need to come back with as many expense figures as you can to use initially to work on – if you need premises, find out some sample rents, if you are manufacturing, find out the costs of your materials, and if you are employing anyone, what are normal rates of pay?You also need to think through what prices you might charge for your products or services, and what your product range might include (eg biscuits, cakes and cookies) or your range of services will be (eg a 2 hour visit, an overnight stay).Also complete Ex 20 thinking about key risks.3.8 – 3 min(1:57-2:00)Feedback formsGet participant feedbackSlide 64 - Feedback formsHand out feedback forms and ask people to complete them and hand them in on their way out.After session 3Facilitator feedback & clear upCompleted feedback formsFacilitators should have a quick meeting after the session to review the feedback forms and agree any changes necessary for the next session.Venue clear upSession 4: Income and costs4.1 – 10 min(0:00-0:10)Welcome backSlide 65 – Welcome backSlide 66 – Session 3 homeworkSlide 67 – AgendaAssumptions sheetWelcome people backAsk them how they got on with their homework – process maps, doing ‘better’, planning and cost research.Take feedback from one or two participants about how it went.Explain today’s agenda – we are starting to get stuck in to the financials, and will continue this next session.Get people to start an ‘assumptions’ sheet on a piece of paper. This is for them to note down any figures they are using but need to verify later. For example, they may not know all the costs involved yet, but by using some made-up numbers they will be able to follow through all the calculation examples in this course. It is useful to note which are ‘made up’ or ‘to check later’ numbers so you can see where you got the numbers from in your calculations, and update them later on to give the real answer.4.2 – 10 min(0:10-0:20)Set up costsTo reach a total figure for us to set up our business.Slide 68 – How much will it cost to set up your business?Review Ex 18 – Planning the businesssSlide 69 – Workbook Ex 19 – Set up costs totalHow much will it cost to set up your business?Look at the actions we identified last session in Ex 18 – Planning the business. Homework included completing the cost column.Add them up to get your set up costs. Note these are not running costs – we will cover those later – and they don’t tend to repeat.Note – this won’t be enough to start up – we will be looking at this in the next session on cashflow, but we will also need enough money to keep us going as well as set us up. Don’t worry too much whether something is a set up cost or an operating cost – they will all be included when we do our cashflow. Give people 5 mins to add up their set up costs and put the answer into Ex 19 – Set up costs total. If they have not got all their figures yet, it is OK to use estimates and keep a note them on the assumptions sheet.4.3 – 5 min(0:20-0:25)Finance step by stepTo build confidence that we will take things slowlySlide 70 – Making the numbers add upSlide 71 – Finance step by stepExplain Mr Micawber’s statement and that it’s an important basic business principle. More businesses fail because people don’t understand their finances than for any other reason. If you are uncomfortable around finances, please stick with us over the next sessions and give the course your best – business finances are not something you should delegate – you need to understand and have a good grip on what’s coming in, what’s going out, and when. Business finances are not so daunting if we take them one step at a time.Explain what the letters stand for on the coin diagram:R = Revenue (ask what other names people know for R – Sales (yes, but strictly you might make 3 sales, generating ?150 of revenue), or Income (yes, but income also includes other non-trading things like loans received).C = Costs (F = Fixed & V = Variable)P = Profit4.4 – 20 min(0:25-0:45)RevenueTo calculate our total sales revenues from all our products/services.Slide 72 – ‘Basic units of sale’ Participant example gridSlide 73 - Flipchart exercise Flipchart – Biscuit RevenuesSlide 74 – Multiple products or services - Farmhouse bakery sales forecast (from page 31)Slide 75 – Workbook Ex 21 – Calculating RevenueExplain ‘basic units of sale’ (page 32) and give examples of ‘typical’ or ‘everyday’ units. Use the suggestions you’ve come up with from your Participant example grid.Explain that we will use the ‘basic units of sale’ throughout the finance section, so it is important people know which one(s) they will be using, and keep it consistent.On the flipchart, build up a step by step version of Ex 21 using the biscuits figures in italics, to reach a monthly revenue figure.Explain how to build up multiple products or services – Slide 74 – Farmhouse bakery sales forecast is an example (rows appear one by one).Explain how your market research will be useful here (page 32) – how many units per month are you expecting to sell and at what price?Give 10 minutes for people to try Ex 21.4.5 – 15 min(0:45-1:00)Fixed costsTo categorise our costs as fixed or variableTo total our monthly fixed costs.Slide 76 – Workbook Ex 22 - Fixed and variable costsSlide 77 – Workbook Ex 23 – Fixed costsHomework last week included thinking about your costs. Let’s get them down on paper. Give 3 mins for people to start writing their running costs into the left hand column of Ex 22.Introduce Fixed and Variable costs (page 33)Give 2 mins for people to decide if their costs are fixed or variable and write this into the right hand column of Ex 22.Give 2 mins for people to copy across all their fixed costs into the left hand column of Ex 23.Explain how to convert costs into monthly costs.Ex 23 to be completed for homework, and is totalled for Ex 24.4.6 – 5 min(1:00-1:05)People costsTo begin to develop a shared vision about using business for goodSlide 78 - Diagram of biscuit-maker’s business with bottom left loop highlightedPeople and skills costs are reflected as the bottom left hand loop.One of the ways our businesses can help our communities to thrive is in the way we employ (or subcontract to) others.Discuss fair working wages, and managing employees. (Note that one of the big challenges for some business start-ups is ensuring that those producing a product or delivering a service are generating an income most of the time. Where demand is uncertain it may be possible to use self-employed people or contractors that only have to be paid when there is work to do)4.7 – 15 min(1:05-1:20)Ideal variable costsTo calculate our ideal variable costsSlide 79 – Workbook Ex 25 – Ideal variable costs (first column)Slide 80 – Calculating variable cost per unit of sale (ideal)Flipchart exercise – cost per unit of saleSlide 81 – Workbook Ex 25 – Ideal variable costs (remaining columns)Slide 82 – Workbook Ex 26 – Total ideal cost per unit of saleOutline how the next section goes through how to calculate our variable costs (top of page 34) – cost per unit (gives ideal cost), adjust for wastage (gives realistic cost), multiply by quantity.Give 3 mins for people to write their variable costs from Ex 22 into the left hand column of Ex 25.To calculate cost per unit we need to know how much each item covers – explain the ingredients example (bottom of page 34). Leave Slide 80 up on the screen. Ask for some more examples, and put these on the flipchart, and calculate the cost per unit of sale for each.Give 10 mins for people to write the price, pack size, cost per, amount per unit of sale, and calculate their cost per unit of sale in Ex 25. Ensure facilitators check everyone has done this exercise correctly, as it can be confusing.Give 1 min for people to add these up and put the total into Ex 26 – Total ideal cost per unit of sale.4.8 – 20 min(1:20-1:40)Realistic Variable costsTo factor in wastage to our ideal variable costs to make them realistic variable costs.Slide 83 – Realistic variable cost calculations (biscuits)Participant example gridSlide 84 – Workbook Ex 27 – Variable costsNow we’ve got our cost per unit, we need to allow for any wastage or spoilage. Give examples (from 2nd para on page 35). Use the suggestions you’ve come up with from your Participant example grid.Slide 83 - goes through Ex 27 one step at a time, using the figures from the biscuit example (on pg 36).Give people 5 mins to calculate their realistic variable cost per unit.To calculate monthly variable costs (V), we need to multiply our realistic cost per unit by the number of units we are making (Q). For this initial calculation assume we make and sell the same quantity each month – so for Q, use the same monthly sales quantity you used in Ex 21 for Revenue.Explain how V changes depending on Q – and that it will build up as our sales build up.4.9 – 10 min(1:40-1:50)Total operating costsTo total operating costsSlide 85 – branching diagram of costsSlide 86 – Workbook Ex 28 – Operating costs totalPut up Slide 85. Revise the types of costs we have covered using the branching diagram (Total costs split into Op costs + Set up; Op costs split into Variable costs + Fixed costs).Explain that total operating costs each month = fixed costs plus variable costs (but not set up costs). Obviously as variable costs go up, our operating costs will go up.Give people 2 mins to add their F to their V in Ex 28 to get a monthly figure.4.10 – 5 min(1:50-1:55)ProfitTo calculate operating profit for the first time.Slide 87 – Calculating operating profitSlide 88 – Revenue, costs and profitSlide 89 – Workbook Ex 29 – Operating profit per monthExplain that Operating Profit = Revenue – Operating Costs.Go through biscuit maker’s Operating Profit calculation. [note Fixed costs here represent a figure for e.g. rent, rates and bills, and variable costs are from the previous example on Slide 82]Give people 3 mins to calculate their Operating Profit for Ex 29.Explain that next week we will look at whether this profit is enough, and how to improve it if your business is not currently coming out as viable.4.12 – 2 min(1:55-1:57)HomeworkTo check your figures ready for more complex financials next session.Slide 90 – session 4 homeworkGo through your figures, researching anything you were missing and revising your totals – to finish Ex 22, Ex 23, Ex 24, Ex 25, Ex 26, Ex 27 and Ex 28.Next session we will be looking at profit, cash flow, start up costs and breakeven, using the figures you come up with for homework.4.13 – 3 min(1:57-2:00)Feedback formsGet participant feedbackSlide 91 - Feedback formsHand out feedback forms and ask people to hand them in on their way out.After session 4Feedback & clear upCompleted feedback formsFacilitators should have a quick meeting after the session to review the feedback forms and agree any changes necessary for the next session. Venue clear upSession 5: Profit, cashflow and breakeven5.1 – 10 min(0:00-0:10)Welcome backSlide 92 – Welcome backSlide 93 – Session 4 homework wasSlide 94 - AgendaGo over any questions from last week about revenue and costs. We will be using the figures in this session, to think about profit, cash flow, start up costs and breakeven.5.2 – 15 min(0:10-0:25)How much profit do you need?To realise that profit has to be big enough to cover several things.To think about equipment replacement.To consider your survival budget.To understand how to deal with your own salary when presenting financials.Slide 95 – Four things profits should coverSlide 96 – Workbook Ex 30 – Equipment & facilities replacement planSlide 97 – Survival budget exampleAppendix F – Survival budgetAsk people if their profit came out positive.Put up Slide 95 and explain that a positive profit is a good start but may not be enough – it has to cover:Equipment maintenance & replacement – we will do Ex 30 in a moment.Business development costs – better equipment, bigger stocks of raw materials or goods for sale, new website, product development costsYour salary – we will look at the Appendix on Survival Budgets shortly.Any business loan repayments – but how do you know how much they will be? We will cover this by doing a cash flow forecast next.Give people 5 mins to have a go at Ex 30.Put up Slide 97 and go through the Survival Budget examples in Appendix F. Explain that by calculating your profit without your own salary in, you can see how much the business is generating clearly. But to apply for funding you may need to include it – either at survival budget level, or at full salary level.5.3 – 45 min(0:25-1:10)CashflowTo calculate our start up costs by using a cashflow forecast.Slide 98 – How much money does a business need to start up?Slide 99 – Start up costs (coin picture from page 38)Flipchart – predrawn cashflow diagram (bottom of diagram on pg 38, ready to fill in)Big Bank statements – 3 for people to hold up.Slide 100 – Bank statements to cash flowSlide 101 – Cashflow forecast exampleParticipant example gridSlide 102 – Biscuit-maker’s cashflowSlide 103 - Ex 31 – Basic cashflow analysisSlide 104 - Ex 32 – Start up costsAsk people how much money does a business need to start up? Is it just the set-up costs? Draw out that you need enough to keep you going until the point your business can cover its own costs. Put up Slide 99 – Start up costs = Set up costs + Initial operating costs.How do you calculate initial operating costs? Do a cash flow forecast. Don’t be scared – it’s not that difficult and it’s really useful – maybe the most useful thing in any business plan.Explain what cashflow is (pg 38) and how it relates to what’s on your bank statement.Ask for 3 volunteers to come up – give each a Big Bank statement to hold up. Ask them what happened in their month, and fill them in on the flipchart as they tell you, explaining your layout as you go.Put up Slide 100 – Bank statements to cash flow – and reiterate what you’ve just done.Explain what a cashflow forecast is (top of page 39) and put up Slide 101 – Cashflow forecast example. Talk through what the person who wrote this forecast thinks will happen in April, May and June.Ask if people can see how much they will need to borrow (the ?30 in May). Ask why. Ask how they could avoid needing it.Discuss timing, and things to watch out for. Use the suggestions for types of revenue receipts you’ve come up with from your Participant example grid.Explain how businesses use cashflow forecasts (bottom of p 39). Put up Slide 102 – Biscuit-maker’s cashflow. Introduce the concept of using a section for sales units at the top of your cashflow. Explain how to show delays in getting in cash. Explain each row (animated to appear one by one) – S is total of Ex 18. F is rent, rates and bills. X is realistic variable cost. L start in month 1 and are based on a loan of ?2000. First Ob is ?2000 loan. Cb shows you need an extra ?903 (worst position is Month 5) so should have borrowed more like ?3000.Give people 10 mins to have a go at Ex 31 – Basic cashflow analysis.Give people 2 mins to fill in Ex 32 – Start up costs.Explain once you know your Start up costs you can see what you need to borrow, and get a quote online for loan repayments.5.4 – 20 min(1:10-1:30)WhittlingTo improve the viability of businessesSlide 105 – ‘Whittling’ - diagram of jigsaw pieces (from page 29)Slide 106 – diagram of coin stacks (from bottom of page 41)Flipchart – whittling brainstormSlide 107 – Whittling brainstorm – some possible answersSlide 108 – Workbook Ex 33 - WhittlingPut up Slide 105. Explain the concept of whittling (bottom of page 41).Put up Slide 106 as a visual aid to:On the flipchart, brainstorm ways of:Increasing RevenueReducing the Variable costs of ‘doing’Reducing the Fixed costs of ‘being’Reducing the Start up costs – Set up costs + time to get money inPut up Slide 107 which has some possible answers the group may have come up with.Give people 10 mins on Ex 33 - Whittling.5.5 – 25 min(1:30-1:55)BreakevenTo calculate the minimum sales we need to make to cover our costs.Slide 109 – branching diagram (answers appear one by one)Slides 110-113 – Biscuit-maker’s breakeven point (multiple slides build up the picture)Slide 114 – Calculating breakevenSlide 115 – Workbook Ex 34 – Breakeven pointPut up Slide 109. Revise the types of costs we have covered using the branching diagram (Total costs split into Op costs + Set up; Op costs split into Variable costs + Fixed costs).Put up Slide 110 – Biscuit-maker’s breakeven point and explain that the biscuit-maker needs to know his breakeven if he just makes biscuits. Explain what breakeven is (from page 43).X axis - the distance sideways is the amount of biscuits soldY axis - the distance up the graph represents the moneyVariable costs - Remember that his supplies (variable costs) worked out at 25p per pack of 10 biscuits, once he had adjusted it for wastage. Get people to work out V for 0 packs, 100 packs, 200 packs and so on up to 500 (answers appear one by one at ?25, ?50, ?75, ?100 and ?125)Slide 111 - Fixed costs - fixed costs (rent, rates & bills) are ?700, and ask people to work out F for 100 packs, 200 packs etc - trick question! They are all the same at ?700.Slide 112 - Total costs - this is Fixed plus Variable, and get them to call out the totals (answers ?700, ?725, ?750, ?775, ?800 and ?825)Slide 113 - Sales line - he sells the packs at ?2.50 each – (build up the tension) - when will he break even? How many packs does he need to sell before he covers his fixed costs? Get them to call out the answers (?0, ?250, ?500, ?750 - not quite, ?1,000 - yes, his sales revenue is higher than his total costs!, ?1250)Breakeven point - where sales revenue reaches total costs - looks to be (dotted line appears down to the X axis) at just over 300 packs. Anything to the right and he makes money, anything to the left and he loses it. So all sales over that level are making him profit. He’s covered his fixed costs, so he can keep the contribution made by each pack over that - ask what the contribution is (answer - the ?2.50 selling price minus the 25p variable cost = ?2.25 per pack). Run through the numbers on Slide 114 – Calculating breakeven - another way of calculating breakeven is: B/E = Sales Price/GM% - so for this example Gross Margin % is ?2.25/?2.50 = 90%, so B/E=?2.50/90% = ?778 in sales, which at ?2.50 per pack of biscuits works out at 311 packs/month.Give people 5 mins to do Ex 34 – breakeven point.5.6 – 2 min(1:55-1:57)HomeworkTo attempt a cashflow forecast.Slide 116 – Session 5 HomeworkHave a go at cashflow for their business – either Ex 31 (simple one) or page 7 in Appendix H has a larger blank cashflow – turn to it and show the forecast/actual column format.Next week we will have time to troubleshoot any issues that arise when you have a go at your cashflow and breakeven, and then we’ll move onto legal structures, sources of business finance and business plans.5.7 – 3 min(1:57-2:00)Feedback formsGet participant feedbackSlide 117 - Feedback formsHand out feedback forms and ask people to complete them and hand them in on their way out.After session 5Facilitator feedback & clear upCompleted feedback formsFacilitators should have a quick meeting after the session to review the feedback forms and agree any changes necessary for the next session.Venue clear upSession 6: Launching your business6.1 – 5 min(0:00-0:05)Welcome backSlide 118 - Welcome backSlide 119 – AgendaWelcome people back for this final session of the course.Explain the agenda for today includes plenty of time to go over anything people have questions about now they have had a go themselves.6.2 – 25 min(0:00-0:30)Going over cashflow, breakeven and profitabilityTo iron out any issues that have come up when attempting the homework.Slide 120 – Session 5 Homework wasHow did people get on with calculating their own profitability and breakeven? How did they find cashflow forecasting? Can they see how much start up funding they need?Go over any issues (split into smaller groups if necessary).6.3 – 15 min(0:30-0:45)Improving viabilityTo increase the profitability of each business where possible.Slide 121 – Review Workbook Ex 33 - WhittlingHow did people get on with Ex 33 – Whittling?Work in pairs for 10 mins to try and improve one another’s profitability.6.4 – 10 min(0:45-0:55)Our business viability nowTo find out how the course has helped peopleSlide 122 – Our business viability nowAsk people to demonstrate how the course has affected their thinking about starting their business between the beginning of the course and the end:If it’s a large group get them to move to the corners of the roomWas Non-Viable, still Non-Viable – remind them that finding it out on paper was much less painful than in real life, and encourage them that most successful entrepreneurs are not on their first idea.Was Non-Viable, now Viable – ask them what changed (probably refining their plans through whittling)Was Viable, now Non-Viable – ask them what changed (probably more accurate research and planning)Was Viable, still Viable – celebrate!If it’s a smaller group, draw this out in the group rather than getting people to move.6.5 – 25 min(0:55-1:20)Investment, loans and company structuresTo introduce the places people might obtain start up funds for their business, and the pros and cons of each.To consider which legal form to set up as.Slide 123 – Sources of FinanceAppendix E – Sources of FinanceSlide 124 – Company structuresWorkbook Section 6 – Into Business!Appendix G – Useful linksGo through the various sources of finance from Appendix E.Focus on what information each might require for a loan.From Section 6 of the workbook, explain the differences between setting up as a:Sole traderPartnershipLtd companySocial enterprise or Charity (or both)Signpost people to the useful links – particularly if they are considering setting up a social enterprise.6.6 – 15 min(1:20-1:35)Top tips for running your own small businessTo think about running the business really well.Slide 125 – Top TipsWorkbook Section 6 – Launching your business!Ask people to work in pairs – read through the 9 points on Slide 125 – and decide which are their top 3, and why.Each pair shares with the group what they chose, and why. (Of course, all are important, this is just a way to help people really think them through)6.7 – 10 min(1:35-1:45)Business plansTo understand what’s in a business plan, and who they are for.To feel ready to write their own business plan based on the work they have already done in this course.Slide 126 - Appendix H – Business PlanSlide 127 – Why write a business plan?Turn to the Business Plan in the Appendix. Explain that they have already done all of the work to fill it in, by completing the exercises on this course.Ask why it is important to complete a business plan – e.g. Know where to start, how you’re going to do it all, when you’ll need money, and how much.Look professional and competent to investorsDemonstrate you’re in control and fully plannedGive people 5 minutes to look through the Appendix, and check if they have any questions about how to fill it in.6.8 – 5 min(1:45-1:50)ConclusionTo look back on the course, and forward to the future.Slide 128 – Flipchart exercise Flipchart – Hopes and Concerns (from Session 1)Explain that we’ve now completed the workbook, and we might want to set up the business we’ve been working through, or we might want to use our new business planning and assessment skills to look at some other ideas, before we decide which to go for.Revisit the hopes and concerns sheet from the first session to see whether we’ve met the hopes and reduced the concerns.Ask if there are any final questions people want to ask.If you are holding any kind of follow-up, give out the details.6.9 – 7 min(1:50-1:57)Certificates & celebrationTo celebrate the completion of the course.Slide 129 – CertificatesCertificates for each participantCelebratory drinksHand out certificates to everybody (up to you whether you do this up front like a degree ceremony, or less formally).Celebrate the completion of the course!6.10 – 3 min(1:57-2:00)Wrap up and Feedback formsClose the courseGet participant feedbackSlide 130 – Thank you!Slide 131 - Feedback formsThank people for coming on the course.Hand out feedback forms and ask people to complete them quickly now and hand them in on their way out.After session 6Facilitator feedback & clear upCompleted feedback formsFacilitators should have a quick meeting after the session to review the feedback forms. Venue clear up. ................
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