Session 2-17 - NxLeveL



Session 2-17

Introduction to Your Business Concept

Having chosen your best business idea, you now need to strategically define your business concept and cerate a mission statement that will express what this business will achieve and why.

The mission statement is one of the most important parts of your business plan. It sums up your values, your vision, and the purpose of your business. It’s helpful to begin by working on each element of the mission statement individually.

A. Your Business Values

Your business values are a reflection of the personal mission statement that you drafted during your NxLeveL® Guide for Business Start-ups reading. Business values establish the philosophy of your business and describe the way employees and customers will be treated. Doing business ethically and being honest are typical values. You should incorporate a basic set of values to into the mission for your business.

1. What values would you like your business to be known for?

B. Your Vision

The vision of your business will define and shape its future. Base your vision statement on your business values and where you want the business to be 2 to 3 years in the future (e.g., stage of growth, position in the community, etc.).

2. What is your vision for the future of your business?

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C. Purpose of Your Business

You should determine the purpose of your business in two ways. First, you should us an internal measure of success. Second, the only external purpose of any company is to serve the customer.

Try to integrate your values and vision when defining the purpose of your business. Together, they provide the framework for your business concept. (Example: I love worms. The internal purpose of my business is that it will give me a chance to work with worms. The external purpose of my business is to provide quality worms to fishermen in the area.)

3. What is the purpose of your business, internally and externally?

D. Your Mission Statement

A mission statement sums up all of the above elements: values (the philosophy of how you are going to do your business), vision (where are you going with your business), purpose (what does your business do to satisfy your internal measure of success and serve the customers).IT should be short and focused (no more than 35 words). It is stated in the present tense, in positive terms, and without qualifiers (Example: Vuplinex Consulting helps its small-business clients to succeed by providing them with honest, ethical, affordable project implementation assistance in such areas as management training, merchandising, and business planning.”)

Many companies proudly display their mission statement in a place visible to customers and suppliers. Of course, posting it is easy. The challenge is to live up to it!

Write a one-sentence mission statement about your business, comprising no more than 35 words, If necessary, write a longer statement and cut it down to size by removing adjectives, adverbs, and words between commas.

4. My business mission statement is:

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E. Your Marketing/Branding Slogan

A marketing slogan is a short, clever and often humorous translation of your mission statement. It is meant to convey a single, simple thought about your business that is useful to your customers. A good marketing slogan is one of your best packaging tools, if used consistently.

Look through a number of magazine advertisements for the catchy phrases many large corporations use. Examples include General Electric Corporation (“Progress Is Our Most Important Product”) and VISA (“It’s Everywhere You Want To Be “). The NxLeveL® Entrepreneurial Training Program you are currently taking has established as its slogan: “Helping Entrepreneurs Reach the Next Level of Success...” Slogans are often used as tag lines in advertising, placed immediately after the company name so that the name and the slogan remain connected.

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5. The marketing or branding slogan for my business is:

F. Naming Your Business

A good name can increase a business’s advertising and promotional appeal. Your business name is the first contact with your customer, and as we all know, it’s the first impression that counts. Consider the following when naming your business.

• It should be selected with your customer in mind

• It should be catch and easy to remember

• It should not contain your surname

• It should be unique

• It should be tasteful, catchy, easy to remember.

• It should be selected with your customer in mind.

• It should be easy to spell and pronounce

• It should be short.

• It should consistent with the type of business

• It should suggest product benefits.

Once you have selected a name, the next step is to determine whether or not the name can be used legally. This usually entails submitting your business name for tradename and/or trademark searches.

6. Brainstorm a list of potential business names and select the best one. (You may also use your mission statement as a framework for developing your business name, i.e., what message do you want your name to convey?)

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G. Your Business Goals and Objectives

Goals are targets, or desired outcomes, for your business. You should consider your short-term goals (within one year) and those that are 2 to 3 years into the future.

Goals are usually measured in dollars and other tangible desired outcomes and are related to functions (rather than individuals) within the business. Each goal must be stated in a quantitative manner that allows you to track progress towards the goal. In other words, every goal is measurable. Goals must also be compatible with the mission statement and with each other.

Goals and objectives can be set for any aspect of your business, but are commonly set within the following areas:

• Sales volume

• Owner Compensation

• Number of employees

• Assets

• Customer satisfaction

• Owner time commitment

• Profit

• Market Share

When setting goals and objectives ask the following questions:

• What will I do?

• How will I do it?

• Who will do it?

• Why should I do it?

• When will I do it?

• What will the outcome be?

7. Using the chart on the following page, write down three to five short-term (within one year) business goals. (Include a goal that addresses when and how you plan to start your business.) Then fill in the objectives that will guide you in reaching your goals.

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|SHORT TERM GOALS and OBJECTIVES (Within One Year) |

|Goal #1 |

|Objectives |What |When |Who |

|  |  |  |  |

|  |  |  |  |

|  |  |  |  |

|Goal #2 |

|Objectives |What |When |Who |

|  |  |  |  |

|  |  |  |  |

|  |  |  |  |

|Goal #3 |

|Objectives |What |When |Who |

|  |  |  |  |

|  |  |  |  |

|  |  |  |  |

8. Set longer-term goals for your business (two to five years in the future). Remember: each objective should relate to your goals, and should describe what needs to be done, when it needs to be done (a deadline), and who is responsible for doing it.

|LONG TERM GOALS and OBJECTIVES (Two to Five Years) |

|Goal #1 |

|Objectives |What |When |Who |

|  |  |  |  |

|  |  |  |  |

|  |  |  |  |

|Goal #2 |

|Objectives |What |When |Who |

|  |  |  |  |

|  |  |  |  |

|  |  |  |  |

|Goal #3 |

|Objectives |What |When |Who |

|  |  |  |  |

|  |  |  |  |

|  |  |  |  |

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H. Describing Your Business

At this point, you should be able to describe many aspects of your business in a general way.

Remember, you may change many of your assumptions as you proceed through this workbook. Here are a few questions to consider while summarizing your thoughts about your business:

9. What are your primary products or services of your business?

10. Why do you believe that there is a market for these products or services?

11. How do you intend to operate the business? Who will be involved? How much of your time will be spent in the business?

12. What kind of growth are you projecting for your business?

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