Going From Idea to Operations - A Simple Framework for Building a Business

Going From Idea
to Operations
A Simple Framework For
Building Your New Business

OUR DESTINATION
● Complete & accurate Business Plan
● Fully vetted business model
● Fully operational company

WHERE ARE THE STICKING POINTS?
● Making the commitment?
● Where do I start?
● How do I make the time?
● How do I structure it?
● How do I get funding?
● How do I promote it?
● Who would buy it?

WE'RE GOING TO FOCUS ON...
● List of of "things to keep in mind"
● Keeping it simple
● Breaking down hurdles
● The big picture

WHAT IT CAN DO FOR YOU
● Minimize overwhelm
● Easy-to-manage chunks
● A starting point for each chunk
● Bridge gaps to continue momentum
● Prevent duplicate effort (building blocks)
● Save time & money

WHAT IT CAN'T DO
● Provide a detailed process
● Be a one-size-fits-all
● Specific scenarios

WHERE IT CAME FROM
Real Estate Brokerage...got distracted, it faded
Renovate Historic Homes...distracted, faded
IT Consulting...distracted, faded
Reputation Management...distracted, faded
SMB Marketing Consulting...sold it!
Mobile App Development Platform...sold it!
Duh!? Build it to sell or hand off.

Stage 1: Record
Leave a Trail of Breadcrumbs

GOAL: JOURNAL PACKAGE
● One entry for each work day
● What did you learn today?
● What did you accomplish today?
● How will you build on accomplishments?
● Review it frequently
● Can be written or video (YouTube private)

Stage 2: Ideate
Lay the Foundation

GOAL: PEACE OF MIND
● How long will it take?
● Create a startup budget
● Create a startup goal (number or event)
● Can you pay for startup expenses?
● Household bills covered during startup?
● What is your "Why"? (motivator)

GOAL: LIST OF HYPOTHESES
http://goo.gl/qp0v1 (hbr.org)

SNAPSHOT A 10,000 FOOT VIEW
● What is your product?
● Who are your customers?
● How will you deliver the product?
● How will you connect with customers?
● How will you generate revenue?
● What important resources do you need?
● What partnerships do you need?
● What are the critical delivery activities?
● What are the costs?

GOAL: TEAM PACKAGE
● Document co-founder roles
● Is your family on the same page?
● List potential Board of Directors
● Who will be on your Advisory Board?
● Administrative service providers?

Stage 3: Discover
Find a Product-Market Fit

PROVE OR DISPROVE YOUR GUESSES

GOAL: PROFITABLE BUSINESS MODEL
http://goo.gl/0ZSis (Udacity.com)

WARNING: DON'T GET BURIED
Gist:
● Be a "student" not a "salesman"
● Searching for what {you don't know}2
● Ask "live" customers (100+)
● Validate you are solving their problem
● Demonstrate they will pay you
● Ensure market is large enough*
● Keep it simple...

Stage 4: Underpin
Define the Company's Core Functions

GOAL: CULTURE PLAN
● Do you want to instill a specific culture?
● How will you empower employees?
● How will you train employees?
● How will you develop leaders?
● Will you encourage "20% time" projects?
● Internal culture aligned w/ external brand?
ZapposInsights.com

GOAL: PRODUCT ROADMAP
● Expand on Validation results
● Is your product fully documented?
● How will your product improve over time?
● How will you innovate?
● Will you offer additional products?
● Are there complementary partners?
● Can you create "packaged offerings"?

Expand on Validation results
http://goo.gl/be2mW (HubSpot.com)
GOAL: CUSTOMER PERSONAS

CLOSE SALES, DELIVER THE GOODS

GOAL: SALES & DELIVERY PLAN
● Expand on Validation results
● Do you need a dedicated sales team?
● Do you need a dedicated support team?
● In-house staff or outsourced?
● How will you process sales?
● What payment methods will you support?
● What are your payment terms?
● How is the product delivered?
● Will after-sale support be provided?

GOAL: ENTITY & ASSET PLAN
● Will you use an LLC, S-Corp, C-Corp, etc?
○ http://goo.gl/lqrR1 (AzCommerce.com)
● Do you have an asset protection plan?
○ Lodmell.com
● Filing a trademark, copyright or patent?
○ http://goo.gl/S2qGx (Uspto.gov)
● Are you aware of all tax regulations?
○ http://goo.gl/JzruD (AzCommerce.com)

Stage 5: Assemble
Put the Puzzle Together

Score.org
SteveBlank.com
Expand on Validation results
GOAL: MARKETING PLAN

GOAL: PERSONNEL PLAN
● What are the job descriptions?
● How will you attract candidates?
● How will you qualify candidates?
● What will you ask during interviews?
● Do you have specific personality needs?
● Certification or degree requirements?
ZapposInsights.com

GOAL: CONTRIBUTION PLAN
● Do you want to give back?
● How will you engage in your community?
● Financial donations?
● Community service?
● Who will you donate to?
● Sale-based contributions?
○ ie. Toms.com
● Staff-wide or corporate level only?

GOAL: WORKSPACE PLAN
● Do you need manufacturing facilities?
● Where will the workspaces be?
● Easy access to needed resources & staff?
● Do you want a specific "feel" in the office?
● Will you support telecommuting?
● Will you require specific "in office" hours?
● Will you buy or lease the office? furniture?
● How will you stock office supplies?

Stage 6: Scale
Drop the Hammer

GOAL: BUSINESS PLAN
● Roll it all into the coveted Business Plan
● Create an operational org. chart
● Hire a CEO or go Owner/Operator?
● Hand over the Business Journal Package
● You've built an effective business system
● Let the system do its thing
● Enjoy the ride!

Going From Idea to Operations - A Simple Framework for Building a Business

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Going From Idea to Operations - A Simple Framework for Building a Business