Transitioning Your Business Plan Into A Live Venture

Intermission: “I’ve Written Intermission: “I’ve Written the Business Plan, Now the Business Plan, Now What?”What?”A guide to narrow your activities when converting a well-researched business idea, into a sustainable start-up

04/08/23 Lawrence Elliott Ball (C) 2010-2011 1

Lawrence Elliott Ball, Undergraduate FellowThe Institute for Entrepreneurship, Leadership, and Innovation

Month 1Month 1Protect your intellectual property◦Incorporate your business◦Trademark, Register, and Copyright

any Logos, DBA’s, Slogans, etc◦Patent any business processes,

designs, inventions, pieces of intellectual process that drives business

◦Try using services like LegalZoom to simplify the process

04/08/23 2Lawrence Elliott Ball (C) 2010-2011

Month 2-4Month 2-4Define your “Sweat Equity”What are your strengths and

weaknesses?What questions do you still have?What help do you truly need?Launch a pilot program


ExerciseExercise s: What is Sweat s: What is Sweat EquityEquity

“… a varying mix of human, intellectual, social, cultural, and financial capital…that when coordinated correctly… can contribute to a company’s success”

Campus CEO: The Student Entrepreneur's Guide to Launching a Multimillion Dollar BusinessBy Dr. Randal Pinkett

Definition: Time, effort, and hard work used to ensure the success of the business


Sweat Equity Cont’dSweat Equity Cont’d• Human Capital: Knowledge & Skills• Social Capital: Valuable Relationships• Intellectual Capital: Inventions,

access to a knowledgebase, membership in societies, associations, professional groups

• Cultural Capital: Insight and understanding of the marketplace or business terrain

• Financial Capital: Access to capital or investments


Month 5-6Month 5-6• Revisit your plan

– Tune-up your Market & Industry Research• Has your target market grown or? retracted?• Has the industry changed a great deal• Are your competitors thriving or struggling, if so,

why

– Find a trusted savvy individual to critique your financial assumptions and 3-year+ projections (are they truly realistic?)

– Revisit your mission and vision state and internalize the quality of your business and brand


Month 7-9Month 7-9• Secure your

Team– Recruit individuals

willing to work to make the business successful

– Determine the values of your organization, and how you will treat partners as a manager

– Find allies with other startups that may need your services (and vice versa)

• Secure your Finances– Pool your capital and

create strict policies for managing “necessary” expenses

– Decide how much you CAN or CANNOT pay yourself

– Find the right banking organization and have both a savings and checking account


Month 9Month 9Start your “Capital Budgeting Campaign”◦Depending on your venture type, you

may need to raise a significant amount of money for startup and cash on hand

◦Capital Budgeting is how you mix loans, equity, personal or family/friend contributions, and depreciation expenses (for equipment) together for your overall funding source


LoansLoans• Loans require interest to be repaid

– What is the total principal– What is the interest rate– What is the repayment period, and

frequently do you make payments• A lower total % of loans funding your

business make it easier to manage cash flows and promote higher short term profits

• Tradeoff: not enough total capital may stifle your companies growth rate


EquityEquityEquity is a controlling interest in

a company sold for cash◦Requires a legal agreement◦The value of someone’s share relates to the financial health of the organization

No interest payments affect cash flows

Tradeoff: normally results in long and complicated agreements


Month 10-11Month 10-11Return to your Business Plan and follow your plan for starting up◦Complete your business identity:

stationary, product packaging, website, marketing materials

◦Follow your marketing plan for advertising and promoting – solidify your “distribution point” whether e-commerce site or storefront


Month 12Month 12• Launch your venture, open your doors,

and remember the 4M’s

“Meticulously Monitor, Modify, and Manipulate…” – Your quality of products and services– Your price point and competitive edge– Your industry/market position and emerging

trends– Your use of technology to automate tasks– Your Business Plan based on “hits” and “misses”Create your OWN metrics to grow your business


Developed by:Developed by:Lawrence Elliott Ball•2005 Atlantic Fellow, Merrill Lynch •2009-2010, Undergraduate Fellow, Howard University ELI Institute•Principal, Meshu Creative ServicesContact Me:[email protected]
