Family and Business Management: How Do you Get Started Annie’s Project January 9, 2007 Coweta...

Family and Business Management: How Do you Get StartedAnnie’s Project

January 9, 2007

Coweta Oklahoma

Mission Statement

Once the goals have been determined all decision makers need to sit down and mesh them into one statement.

This statement should not be long or address any one goal specifically

It should tell anyone reading it why you are involved in this business.

Mission Statement

Should reflect your valuesDescribe what you want the business to beProvide the basis for long-run plans

Questions to Ask Yourself

Why are you in business? What products will you produce?Where will you sell the product?Do you have the ability to produce that product?How much profit do you expect to receive?How much debt will you incur?How long before you expect to be debt free?Who is involved?

Business Plan

Goals and Mission Statement Key Planning Assumptions Operations, organization and Management Financial Plan Marketing Plan

Goal Setting

What activities do you do that are completely spontaneous?Family vacation?Home improvements?Careers?Having Children?

Goal Setting

A goal is a statement of what an individual or family wants to achieve.

Through goals we identify our aspirations for the future.

Goals change with circumstances and time and must be reevaluated.

Goal Setting Steps

Assess where you have been in the past.Assess your resources and planning

restrictions.Develop a general management plan. Identify and establish specific goals.Prioritize goals. Implement plans to achieve goals.Measure progress and reassess goals.

SMART Goals

S Specific

M Measurable

A Action-oriented

R Reasonable

T Timely

Prioritizing Goals

Which goals are most important for family well-being? Which short-term goals, if achieved will help achieve

long-term goals? Which short-term goals are in conflict with long-term

goals? Which short-term goals do not support any long-term

goals? Which goals are so important that they should be

achieved even if it prevents reaching other goals?

Implementing Goals

Managers must map out goals.Make sure all involved know the goals.Anticipate problems and plan to overcome

them.Do not ignore conflicts or restrictions.

Goal Setting Pitfalls

Making goals too loftyTrying to do too many things at once.Overemphasizing quantitative aspects.Vulnerability to unexpected events.Failing to use all information.Failing to include all decision makers. Ignoring good plans.

Steps to Problem Solving

Define the Problem:What is the problem?What is or should be/could be happening?What needs to be determined?What do you want to decide?Why?

Steps to Problem Solving

Examine the Problem Situation:What do you what to achieve with the decision?What do you want to preserve with the decision?What do you what to avoid with the decision?

Steps to Problem Solving

Consider Alternatives:How can you meet the criteria you have set?What are the possible courses of action?

Identify the Best AlternativeDoes your list of criteria suggest that one

alternative is best?

Steps to Problem Solving

Implementing the Decision:What could go wrong with the solution chosen?How can significant weaknesses be overcome?

Evaluating the Consequences

Goals and Mission Statement

Helps identify why the business will exist and what it will achieve.

Goals need to be SMART Identify possible problems and plan to

overcome them. Include all decision-makers in the process

Key Planning Assumptions

List all family and business resourcesLandLaborCapitalManagement

Identify restrictions and constraints.Total debt you can take onZoning restrictions

Operations, Organization and Management Important to determine what roles each one

involved will playList each decision-makers duties and

responsibilities Identify the most appropriate legal

arrangementSole proprietorshipPartnershipCorporationLLC

Financial Plan

Initial Financial RequirementsHistorical and Projected Financial StatementsRisk AssessmentBreakeven Analysis

Marketing Plan

A written marketing plan helps producers consider:Production costsAvailable alternativesRisk managementMarket outlook

Helps evaluate marketing alternatives.

What is a Problem?

What are problems that you face?

Problems are issues that cause Family or Business goals not to be met.

What is Success?

How would you define success?

Success is when the most important family or business goals are being met.