Congratulations on receiving the Optimised B Box Set, the first set in a very special collection of information and training for start ups and/or small –medium businesses.

This collection is called the Optimised Business Cube, and consists of 6 core considerations including business

basics, strategy, finance, people/HR, marketing, and communication. The six are integrated, yet can be separated out according to your business and training needs. We hope you find the B Box Set valuable and if you have any questions, please do not hesitate to contact us. This box set has been written and instructed in ordinary everyday language to help you put together a killer business plan. Happy writing!

E: optimisedexperts@gmail.com W: www.optimisedbusiness.com

Rubik’s Cube® used by permission Rubik’s Brand Ltd

Business / Contents

Overview

1. Preparation

2. Planning

3. Value Proposition

4. Competitive Advantage

5. Vision/Mission

6. Legal

7. Compliance

8. Business Structure

9. Infrastructure

Business / Overview

Rebecca Tereu PGDipMgt

Hello there, and welcome to the beginning of your journey with Optimised Business. My name is Rebecca and I am the founder/CEO of Optimised. There are two things you need to know about me: 1. I am extremely passionate about business, and love to help people build theirs 2. I have the knowledge, experience, and qualifications to help make that happen. Overall I hope you find this programme valuable, and if you have any questions, please do not hesitate to contact us.

Introducing the B Box Set This package is all about foundations. If you are serious about starting, building and growing your business, then this is a great place to begin. I was always taught that the foundations of any structure needed to be built correctly if you wanted the building to stand sturdy in the future. The same can be said about business, and yet so many appear to skip these steps - inevitably finding out the hard way when their business crumbles. Right now you have an opportunity to create something fulfilling, profitable and sustainable. So, don’t skip the steps – as boring as some of it may seem – because they are there to ensure your business doesn’t join the statistics.

About

Business / Preparation Do you have what it takes? Time to ask some hard questions. First up : YOU. Do you really believe you have what it takes?

Going into business is not as easy and romantic as many people make it sound. It can make or break you – literally.

Consider the following checklist and be honest with yourself.

Are you willing to; Start before 9am and finish after 5pm every day, potentially 6-7 days a week Work at least 60-70 hour weeks Be self disciplined enough to actually go to work – even when the sun is shining Receive no holiday pay Receive no sick pay Receive no work benefits

Is your business viable?

Be exhausted most of the time Miss out on valuable time with family and friends Go into debt and risk loosing everything Have no guaranteed income to pay your bills (and live!) Have to deal with IRD ALL the time Have no guaranteed security for your future

But wait!! Don’t let this list put you off, unless it really does hit you where it hurts. I wish someone had of told me these things when I first started out! It wouldn’t have stopped me, but maybe I would have been more prepared and equipped.

Don’t be afraid of a little hard work. Go in with eyes wide open and consider all angles. The ostrich buries its head in the sand because it thinks it’s the best idea. The lesson: Don’t be an ostrich.

Viability is the biggest question mark in start up businesses that are often ignored in favour of a great idea. The point of this B Box package is to help you determine whether or not your business is viable. And if it isn’t , what if anything can be done about that.

Business / Planning Every business needs a Business Plan. I’m sure you’ve heard of them? Those scary looking documents that you think will take you hours to read and a PHD in business to understand?

Then you’re told you have to write one and that’s when you really start feeling the burn. It can be quite overwhelming and a bit of a killjoy! This is the primary reason many businesses fail to invest in this necessary step, and consequently fail to plan for success.

The truth is, business plans can be simple or complex depending on you and your business. With a little bit of help, you are quite capable of producing a fine looking business plan yourself I assure you. And if you really just can’t bring yourself to do it, for goodness sake get a professional to draw one up for you. It’s better to have one than not!

For those who are ready and willing to give this a go themselves, the following information is designed to help you get started. You will also find a Basic Business Plan template downloadable in PDF format to help get you started.

While we will begin to look at Planning here in the red Business box, you will find that most of the content you will need to create in your business plan is covered within all six sides of the Optimised Business Cube (Business, People, Financial, Strategy, Marketing and Communication). Therefore it is quite a good idea to download the other 5 sides of the Cube if you wish to maximise this opportunity to write a killer business plan. A FREE Start-up Business Plan template is available for you to download on the www.optimisedbusiness.com site.

Use the following table as a checklist and make the most of the provided Template to get started on your Business Plan.

Business / Planning

Contents of a Business Plan Cube Input

1. Executive Summary and Background

This includes a brief description of your business background if applicable, and information that describes your current position, competitive advantage, and growth plans

2. Business Strategy

This is where you describe your business goals and objectives in a 1-5 year plan. You must include information on tactics, SWOT, E-commerce and technology, Core values, and risk reduction.

3. Market Research

You can’t start a business without researching your market. This section is where you describe the market opportunity, market structure, size and outlook, target markets and future markets.

4. Competitor Analysis

Knowing who your competitors are and what your competitive advantage is, is vital. Researching your competitors strengths and weaknesses and recording it in your business plan is important.

5. Financial Plan

This is a biggie. From start-up costs, funding sources, and breakeven analysis, to profit and loss forecasts, cashflow forecasts, and balance sheet forecasts. It all needs to be in here.

Business / Planning

Contents of a Business Plan Cube Input

6. Marketing Strategy

Detail your 4 P’s (Product, Price, Place, Promotion), forecast your launch budget and your overall marketing budget for the duration of your business plan.

7. Business Structure

Detail the structure you have decided to set up for your business, whether it be Sole Trader, Partnership or Company. If it is a Partnership, be sure to include details of that partnership.

8. People

This is where you describe your proposed management structure, introduce your current team, describe your HR strategy, especially recruitment and retention, and discuss vacancies.

9. Legalities and Compliance

Basically a checklist to make sure you have registered with IRD, the companies office (if app), and for any licences/permits, trademarks or patents. Also GST and employer registration as well as insurances.

10. IT, place of business and equipment

Detail your lease premise (owned or leased). Explain your IT and equipment requirements including details about purchasing assets or leasing them.

Core Values You need to decide what your Core Values are going to be in your business . Business values may differ slightly to personal values in as much as you also need to consider how they will affect and benefit your customers. It’s not just about you in other words. You also need to consider how these values will help ensure success for your business in the future. Core Values are closely aligned with Vision and Mission Statement, but not to be confused with.

Some great examples of Core Values;

Every value you consider, check them off against this;

Is it critical for business success now and in the future?

Will it benefit my customers and how?

How will this motivate myself and my staff?

Business / Value

ZAPPOS.COM 10 CORE VALUES 1. Deliver WOW Through Service 2. Embrace and Drive Change 3. Create Fun and a Little Weirdness 4. Be Adventurous, Creative, and Open-Minded 5. Pursue Growth and Learning 6. Build Open and Honest Relationships with Communication 7. Build a Positive Team and Family Spirit 8. Do More with Less 9. Be Passionate and Determined 10. Be Humble

GOOGLE CORE VALUES 1. Focus on the user and all else will

follow. 2. It’s best to do one thing really

really well. 3. Fast is better than slow. 4. Democracy on the web works. 5. You don’t need to be at your desk

to need an answer. 6. You can make money without

doing evil. 7. There’s always more information

out there. 8. The need for information crosses

all borders. 9. You can be serious without a suit. 10. Great just isn’t good enough.

Value Proposition

So what is a value proposition?

I like the way Investopedia puts it;

“A value proposition is a promise by a company to a customer or consumer segment. It is an easy-to-understand reason why a customer should purchase a product or service from that specific business. A value proposition should be a clear statement that explains how a product solves a pain point, communicates the specifics of its added benefit, and states the reason why it's better than similar products on the market. The ideal value proposition is concise, and it appeals to a customer's strongest decision-making drivers”. Key takeaway points;

Easy to understand

Clear Statement

Focused on the Why (customers should choose you)

Why/How it solves the problem

Communicates added benefit

States the reason why it is the best

It is concise

Appeals to the customers ‘yes’

Business / Value

Learning how to capitalise on your value proposition and core competencies requires more advanced training which will be provided in the advanced Rubik cube of business coming soon.

Extra Takeaway points; Value Propositions can be written in (short)

paragraph form or bullet points. Whatever you think will appeal to your target market.

Make sure your value proposition is unique to you and your business.

Don’t be afraid to boldly differentiate from your competitors

Don’t use marketing buzz words – everybody’s seen/read these and they don’t hold much value!

Communicate your value proposition within 5 seconds of the customer reading it.

Core

Competencies

Consider also your CC. These are defined by a specific set of skills or

techniques that deliver additional value to your

customer. They are difficult for your

competitors to imitate and therefore add more value to your business.

Competitive Advantage

What is Competitive Advantage?

“A condition or circumstance that puts a company in a favourable or superior business position” (dictionary definition)

Your competitive advantage further defines your core competencies, as you drill down into specifics and uncover your business edge over rivals. They are conditions based – meaning, they can be attributed to for example; cost structure, brand, quality of product offerings, distribution network, intellectual property and customer support. Ideally they are sustainable.

There is no point in you just saying that your product or service is better, or competing in a price war when your costs remain the same. This is not an advantage nor is it sustainable.

There are two types of competitive advantage;

Comparative Advantage – You offer the same goods or services but are able to procure those goods or services at a lower cost than your competitors, enabling you to pass on those lower costs to the customer.

Differential Advantage – You offer something your competitors don’t. Differential advantages can be driven by more advanced technology, patent-protected products or processes, superior personnel, or a strong brand identity.

So what makes you better than your competitor?

Business / Competitive

Decide what your competitive advantages truly are and keep this at the forefront of your business mind when creating a strategy. More on this within the Strategy Box.

Business / Competitive

Cost Advantage

Some examples;

Business / Vision : Mission

Vision and Mission Statements The vision and mission statements are at the heart of every business. Each have a specific role in communicating both the big picture, and how that big picture is going to be accomplished. The two can sometimes be confused so keep this in mind when writing your statements;

Vision – Why you are here and what you wish to become.

An overall statement or big picture goal pertaining to the future.

Mission – What you do and the benefit and value of that action.

Is linked to the overall operations and business of the organisation. The Mission puts the Vision into practice.

Examples of Vision Statements;

“To build the largest and most complete amateur radio community site on the internet” eHam.net

“To make Steele County the place of choice to live, work, play and grow in southern Minnesota”

“To become the world-wide leader in retailing” Walmart

Examples of Mission Statements;

“To help people save money so they can live better” Walmart

“Steele County government is dedicated to delivering effective, efficient, respectful public service with integrity, and accountability, using both proven and innovative methods”

Business / Legal What’s in a name?

One of the very first tasks you will need to consider is what to name your business.

It is also one of the very first mistakes you can make if your not careful and fail to see the strategic importance of such a task. Many new business owners make the mistake of naming their business according to personal epiphanies, and while personal identity, values, and clever ideas are important in establishing and satisfying YOUR idealisms, they may not have the same effect on your customer.

The trick here is to put yourself in your customers shoes.

Is it attractive to your customer?

Does it make your customer interested and inclined to buy your product or service?

Will your customer have some idea about the product or service by looking at the name?

Does it make sense to your customer?

Is it easy for your customer to remember your name?

These are just some simple questions that you should ask yourself before making a final decision about your business name.

Always put your customer first.

Put yourself in their shoes and ask the key questions according to their perspective.

Business / Legal What’s in a name?

I’ll give you an example. When I was 20 years old I decided to start a Mobil Dj service.

I got together with some very creative friends and we came up with the name XANUDEI.

We thought we were very clever because the name encompassed everything we wanted it to,

it had meaning, and of course it sounded cool (especially if you knew how to pronounce it).

Now, as someone who knows nothing about my company let me put you to the test with a few

more simple questions;

1. Does the name make sense to you?

2. Does that name alone give you any indication of the service?

3. Can you pronounce that name easily? Or is it difficult to get your tongue around?

4. Do you know what the name means and the significance behind it (and do you even really care?)

5. If I asked you to remember the name and spell it out the next day (say in Google search for example or to find my website), would you be able to?

6. Does the name sound vaguely familiar? Like maybe the name of a brothel? (of course not but I’ll get to that point shortly)

If you answered no to some, if not all of those questions, then welcome to my point. I could spend the remainder of this page explaining the genius behind the name, but that also reinforces my point. You shouldn’t have to explain in great detail what your business is about because customers have very short attention spans especially in this day and age where instant demand meets instant supply.

Choose a name that appeals to your customer, is easily recognisable, understandable, searchable, and if you want to be clever and use a descriptive word, then make sure its in the English dictionary and has relatable significance to what you are doing.

This is just the beginning - there is of course much more to creating brand significance and strategy, but most of that is covered in the Marketing Box.

Do your homework

So you have a brilliant name that is absolutely perfect for your business?

STOP right there. Don’t get too attached just yet! You have some homework to do first!!!

First stop : Google

Begin by entering your whole business name and parts of your business name in and see what results come up.

As a rule, if there are any businesses with the same name then steer well clear and go back to the drawing board. I know its hard, especially if you believe your name is PERFECT, but you will thank your strategic-self later.

If you are absolutely determined to explore that rule above, here are a few extra things to consider when using the same name as someone else

Are you in the same industry as them? – if so then steer clear. If not then consider how much market share and brand presence the other business has. If they are in a different industry but are a big player (and everyone knows their name) then steer clear.

Have you decided whether your business will go international or stay local (in your country)? - If you are staying local then consider keeping your name if its not the same industry (unless it’s a very popular /well known brand then again - steer well clear).

Are they local or international? - If they are local then again, check what industry they are in. If it’s a completely different industry you could consider retaining your name. Otherwise back to the drawing board. If they are international then again - check the industry and also their market share in your country. If they have significant presence in your area, even if it is a different industry, then steer clear.

Do they have part of your name but not all? – Take everything above into consideration. Use your common sense and consider smart branding.

Branding can make all the difference when deciding whether or not to go ahead with a name that another business partially uses. The use

of colour, graphics and font in your logo/brand can assist your customer in remembering and differentiating between you and your counterpart.

Business / Legal

Get registered!

Second stop : Legalities

You’re not out of the woods yet! Now you need to check the legal side of things. Depending on which country you reside in will depend on where you need to look and what boxes you need to tick.

In New Zealand there are two sites I would suggest visiting;

1. The Companies office www.companies.govt.nz

Enter your name in the quick search tab to find out if someone has already registered your name.

If so, then it’s back to the drawing board. (Remember the Brothel comment we made earlier? Well as it turns out

‘Xanudei’ was already registered as a brothel in one of our major cities! Both businesses were in the entertainment

industry and although providing two very different services, ‘name association’ is also a major factor to consider).

2. The Trademark website www.iponz.govt.nz

Many businesses trademark their brand, so if you already have a brand/logo be sure to double check.

Some businesses also trademark words so again – its wise to double check or else risk serious legal

ramifications. (Imagine going toe to toe with a multi-billion dollar business like Coca Cola? We nearly did when

naming our community event “Christmas in the Park”. As it turns out they own those exact words and we would have

known that (and saved a lot of $ rebranding) if we bothered to check this website. Lesson learned!

It is wise to ensure these legalities are double checked before you begin. Otherwise you

could loose everything - long after you’ve built everything!

Business / Legal

Compliance Considerations Probably the least interesting part of completing a business plan, but nonetheless one of the most crucial parts. Depending on whether you are operating as a sole-trader, partnership or company will depend on which boxes you will need to tick for the following;

Registered with the Companies Office

Registered with Inland Revenue

Registered for GST

Registered as an employer

Applied for patents or trade marks

Trade marked my business name and logo

Applied for licences and permits

Applied for verification with the following standards bodies and regulators specific to my industry:

There are also a bunch of laws you will need to observe and comply with – some more than others depending on your industry. But in general, these are the laws you will need to familiarise yourself with;

Consumer Laws

Having a good understanding of consumer laws gives your customers peace of mind and builds trust in your business. There are different laws that apply to different kind of businesses. Click Here for an overview in NZ. You will need to understand the Fair Trading Act and the Consumers Guarantee Act.

Health and Safety

Having great health and safety (H&S) practices is just part of having a great business. A new law has been introduced called the Health and Safety at Work Act 2015. It is important that you take time to understand what this means for your business. To find out what your particular business needs to do to comply with this law, Click Here. Otherwise there will be more detail about how this will effect you and your employees in the P Box Set.

Business / Compliance

Compliance Considerations - continued

The Environment

Depending on what industry your business is in and what products and services you provide, will depend on how carefully you will need to observe environmental compliance. The Environmental Protection Authority manages the EEZ, Hazardous Substances, Emissions Trading, and Resource Management to name a few. The Resource Management Act may be important for your business. To find out more Click Here.

Importing and Exporting

If you’re planning to become an importer or exporter, there are obligations you’ll need to meet. The New Zealand Customs Service and the Ministry for Primary Industries (MPI) need to clear business or commercial goods for import and export, and document what’s coming into and going out of the country. To find out more Click Here.

Employment regulations

All employees in NZ are covered by the Employment Relations Act (2000) and other legislation including the Privacy Act, The Holidays Act, and the Minimum Wage Act, so if you have employees or are thinking about employing, you will need to familiarise yourself with what all this means. Click Here for more information.

Business / Compliance

While it is always good to familiarise yourself with the do’s and don’ts of law and compliance, where possible engage with professionals to ensure your business functions above board.

Business / Structure Legal structure

Depending on which country you live in there are different options available for setting up your business structure.

You need to choose the structure that best suits your business, which isn’t as simple as it sounds , but your department of internal affairs should be able to assist you in choosing the right one if you need further help.

In New Zealand the Inland Revenue Department has compliance officers available to come and help you with these decisions and to ensure you are setting yourself up correctly. I would imagine most countries have these free services and advise making the most of them as they are there to help.

o The IRD website is ; www.ird.govt.nz

o Specific help for start up businesses ; http://www.ird.govt.nz/yoursituation-bus/starting/

o Alternatively you can hire a consultant to help you make these decisions for the future. We would be happy to help!

The following page has been designed to help you with your initial thoughts and plans using simple easy to understand language.

In New Zealand there are three primary structures to choose from;

1. Sole Trader

2. Partnership (you can also have a limited partnership)

3. Company

Get all the help you can during these beginning stages. It’s much harder to go back and change these things once you’ve already started!

Business / Structure

Sole Trader

Is an individual who carries out business (trading) without having to follow any formal or legal processes to establish it.

As owners of the business they are responsible for managing the affairs of the business, and are free to employ staff to work with them if desirable.

Sole Traders are entitled to all the profits of the business but also liable for all debt and business taxes.

Partnership

Is where two people or more run the business together. Partners pay tax on their own share of the partnership.

There is often a formal partnership agreement in place (advisable) which states the conditions of profit and liability.

Partnerships share responsibility for running the business, share in the profits, and also share in the debt and liability.

Company

A company exists as a formal and legal entity in its own right. It is separate from its shareholder(s) or owner(s).

The company owns the assets and liabilities of the business and is responsible for any debts

The Shareholders liability for losses is limited to their share in the company.

Click on the icon to watch a short video clip about business

structures in NZ

Business / Structure Accounts, Taxes, & Insurance

When setting up your business structure, make sure you have a good solid system set up for your accounts that make way for your tax obligations. The right insurances are also important.

Accounts

More detail about this subject can be found in the F Box Set, but when setting up the structure of your business it is important to get your accounts set in order right from the get-go. Practical tips like setting up a separate tax account, purchasing a simple accounting programme like MYOB or even XERO if you want to access everything online. Learn what you can and can’t claim as a business expense, try not to take too many drawings if you’re operating a company and don’t skint on an accountant, especially when it comes time to do your end of year tax returns. Issues with record keeping and accounting practices is the number one reason small to medium size businesses fail. Don’t become part of the statistics!

Taxes

Let’s face it, nobody really likes this word, but there is no getting around it – or should I say them.

What you pay and when you pay it depends on how much you earn, your business structure and whether or not you have employees. You will need to learn all about Income Tax, Provisional Tax, GST, ACC levies and a range of employer taxes if you employ. Basically you will have to pay tax for yourself, your business and on behalf of your employees, so it’s a GREAT idea to familiarise yourself with your tax obligations and set up systems to make it easier for you. Again, most of this stuff is covered in more detail within the F Box Set but if you need urgent help with this area of your business, my advice to you is SHOUT FROM THE ROOFTOP. In other words, get help asap.

Insurance

Detail your business insurance arrangements to show you’re mitigating the risks to your business continuity. Business insurance may include:

Premises insurance, Contents insurance, Asset / Vehicle insurance, Employer’s liability insurance (in case of workplace accidents), Public liabilities cover (third-party injury or death), Professional indemnity insurance (cover against claims arising from your professional advice), Business interruption insurance, Front of business insurance (covering repairs to front of premises), Legal expenses insurance and Stock insurance.

Organisational Structure Getting your infrastructure right is important. It gives the business stability, demonstrates professionalism, and enables growth.

There are many different examples of organisational structure to look at and consider for your own business. It really does depend on what kind of business you have and what industry you’re in. In this tutorial we will endeavour to example simple structures .

For example, a COMPANY may have the following structure;

Shareholder(s)

Directors(s) – Managing or Governing

Chief Executive Officer (CEO)

Chief Financial Officer (CFO)

Chief Operations Officer (COO)

Middle/Division Management

Team Leaders

Team

This is what we call a Hierarchal Structure – a top down management model. You may prefer a more round table approach.

Establishing a structure like this will depend on whether you are a larger company, or a smaller/family owned company. You may not have need for all the fancy titles and positions, but as a company legally speaking, you will have shareholders and directors, and of course somebody will need to steer the boat.

In your business planning, establish how large your company is likely to be, then create the core infrastructure accordingly. You can always add new divisions and positions at a later date. More information on structures and infrastructure in terms of people and positions will be available in the P Box Set.

Business / Infrastructure

Shareholders

Board of Directors

CEO

CFO COO

Division Mgt Division Mgt

Team Leader Team Leader Team Leader Team Leader Team Leader Team Leader

Team Team Team Team Team Team

Hierarchal Structure

Organisational Structure cont.

Partnerships can be similar to Companies, except at the top of the table are your Partners as opposed to Shareholders and Directors.

There are silent partners and there are managing partners.

As the partners are personally liable for the business, you will often find they are quite involved in the business.

If you are in a partnership, make sure the terms of your agreement are clear and you each know what part you play in the business.

Agree on the type of infrastructure you wish to have for your business right from the beginning. Each partner can may wish to take on a managerial role. For example Partner A could take on CEO, Partner B could take on CFO and Partner C could take on COO, depending on their professional strengths and skill base. There are lots of different variables to consider, this is just one example.

Sole Traders are a different kettle of fish altogether. The owner of the business is the operator, board, and manager. The buck well and truly stops with them, including liability and tax obligations.

Sole Traders are usually small business owners and are happy to incorporate their business earnings into their personal tax return.

Sole Traders are able to employ people and are eligible for business tax deductions. They can use their own personal IRD number if they wish to register for GST.

As a sole trader, you can set an infrastructure in place similar to the diagram in the previous slide, however if the business starts to grow and expand, consider converting the business into a company.

Business / Infrastructure

Partner A - CEO Partner B - CFO Partner C – COO

Team Team Team

Information was attained from the following sources;

www.business.govt.nz

www.companies.govt.nz

www.ird.govt.nz

www.epa.govt.nz

www.iponz.govt.nz

www.investopedia.com

www.google.com

Special acknowledgements to;

NZ Inland Revenue

Business.govt

Starbucks

Zappos.com

Google

eHam.net

Walmart

Steele County Government

Business / References