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Business Survival Series, part 1 of 4:Business Reassessment
Business Smarts 2020
Business Reassessment
In Partnership with…
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A Non-ProfitEconomic Development Corporation
http://rsbdc.org
INTRODUCTIONS(Poll questions)
• New or existing business
• Type of business• Primary job skill or
function• First HCEDC event?
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Business Reassessment
Business Reassessment
http://rsbdc.org5
Workshop Objectives• Understand key economic
trends and disruptions and how they’re impacting your business
• Identify ways to reassess and redefine your business to survive this crisis and better prepare for future ones
Business Reassessment
Business Reassessment
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Key Economic Trends and Disruptions –Pre-COVID
Globalization
2008 Recession
Technology/Internet
Business Reassessment
Manufacturing/retail to serviceLevel playing field
(Acceleration of) cost cutting
Lower pricesNew/disrupted distribution
channels
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Pre-COVID Trends and Disruptions -Impacts
Cost Cutting
• Staffing: From full-time to contract workers and outsourcing; lower wages, reduced benefits; automation replacing workers
• Inventory: Online and service businesses have low or no inventory costs
• Rent: Online and service businesses have low or no rent
Business Reassessment
http://rsbdc.org8
Pre-COVID Trends and Disruptions -Impacts
Internet has…•enabled new methods of product delivery•created a global marketplace•created a new advertising channel•squeezed supply chains•squeezed margins•squeezed out retailers
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Distribution Channels Disrupted
COVID Disruptions –U.S. Consumer Spending
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Source: 1010Data (Exabel)
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COVID: Accelerating the Changes and Impacts
Who’s Benefitting:•Technology services
• Online product and service providers• Remote communications• Delivery and drive-up services• Tech infrastructure services
•Necessities and Emergency Services
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COVID Disruptions – Food Delivery
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Source: 1010Data (Exabel)
GROCERY DELIVERY
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COVID: Accelerating the Changes and Impacts
Who’s Suffering:•Traditional Retail•Entertainment (except stay-at-home)•Traditional Restaurants•Travel•Non-essential Health and Beauty…
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COVID Disruptions - Retail
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Source: 1010Data (Exabel)
COVID Disruptions - Restaurant
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Source: 1010Data (Exabel)
COVID Disruptions - Travel
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Source: 1010Data (Exabel)
http://rsbdc.org16
Response Strategies
Reassess your business to:• survive this crisis• be better prepared for future crises• turn problems into opportunities
Business Reassessment
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Assessment
PersonalReadiness
Idea
MarketOrganization
Financial
Your Entrepreneurial Assessment
Business Reassessment
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Your Entrepreneurial Readiness
• Emotional readiness
• Personal work style
• Skills and resources
Business Reassessment
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Your Personal Finances
• Household budget• Personal financial
statement• Equity/collateral• Credit
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Balance Sheet
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Assets – Liabilities = Net Worth
Home Equity MortgageCollateral Education LoansSavings Vehicle Loans
Credit Cards
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Income and Cash Flow
• How long can you survive on little to no income?
• Assessment of money coming in
• And money going out
Business Reassessment
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Personal Credit
Business Reassessment
Know your credit reportwww.annualcreditreport.com
www.SMARTmarketingpartners.comwww.SMARTmarketingpartners.com www.NBRChamber.orghttp://rsbdc.org23
Your Entrepreneurial Assessment
Assessment
Personal Readiness
Idea
MarketOrganization
Financial
Business Reassessment
www.SMARTmarketingpartners.comwww.SMARTmarketingpartners.com www.NBRChamber.orghttp://rsbdc.org24
Is there (still) an unmet need?• Product• Price• Place• Promotion
Your Business Idea
Business Reassessment
www.SMARTmarketingpartners.comwww.SMARTmarketingpartners.com www.NBRChamber.orghttp://rsbdc.org25
Assessment
Personal Readiness
Idea
MarketOrganization
Financial
Your Entrepreneurial Assessment
Business Reassessment
www.SMARTmarketingpartners.com www.NBRChamber.orghttp://rsbdc.org26
Reassessing Your Market
Business Reassessment
MarketA group of people or institutions that possess purchasing power, authority and willingness to purchase.
Target Market/Customer ProfileGroup of people to whom a company markets its products and/or services to satisfy their specific needs.
Market SegmentationProcess of dividing the total market into relatively similar groups.
www.SMARTmarketingpartners.comwww.SMARTmarketingpartners.com www.NBRChamber.orghttp://rsbdc.org27
Reassessing Your Competition
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Reassessing Your USP
Unique Selling Proposition (USP)What sets you apart from the others
Business Reassessment
www.SMARTmarketingpartners.comwww.SMARTmarketingpartners.com www.NBRChamber.orghttp://rsbdc.org29
Assessment
Personal Readiness
Idea
MarketOrganization
Financial
Your Organization
Business Reassessment
www.SMARTmarketingpartners.comwww.SMARTmarketingpartners.com www.NBRChamber.orghttp://rsbdc.org30
Identifying Skill Needs and Gaps
• Identify the key processes of your business
• What skills do you need to accomplish them?
• Identify the ones you don’t possess
• How will you “bridge the gaps”?
Business Reassessment
www.SMARTmarketingpartners.comwww.SMARTmarketingpartners.com www.NBRChamber.orghttp://rsbdc.org31
• Owner• Employee• Advisor/Board Member• Outside resources
Evaluation of Skill Sets
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Who will do the work?
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Assessment
PersonalReadiness
Idea
MarketOrganization
Financial
Your Entrepreneurial Assessment
Business Reassessment
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Response Strategies –SWOT Analysis
Business Reassessment
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SWOT Analysis Example 1: Fitness Center
Pre-COVID situation:•Hudson County personal fitness and training center•In business 10 years, loyal customer base•Target audience: BtoC age 40+ yrs, upscale area•One-on-one in-person training sessions•Rents 1st floor of large facility to conduct trainings•1 full-time trainer (owner), 1 p/t assistant•Business discontinued during COVID shutdown
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SWOT Analysis: Fitness Center
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Strengths• Experienced, subject matter expert• Age “niche” (40+ year olds)
Weaknesses• Local, constrained by geography• Delivery limited to in-person• One-on-one model limits scale oppty’s• High rent and overhead costs
Opportunities• Offer virtual training (overcomes
COVID, expands geogr. reach)• Offer group trainings (further
scales customer base & revenue)• Explore BtoB (corporate oppty’s)• Share space for F2F to save cost
Threats• Increasingly crowded local competition• Owner overextended – trying to do all
marketing, admin and training himself
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Business Reassessment Q&A Panel Discussion
Business Reassessment
Questions? Comments? Feedback?
SBDC at New Jersey City UniversityHudson County Community College Continuing
Education & Workforce DevelopmentUCEDC - HCEDC
http://rsbdc.org75 Chestnut Street, Cranford, NJ 07016908-527-1166 www.ucedc.com
Keith [email protected]
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http://www.ucedc.com/mailto:[email protected]
Michelle [email protected]
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mailto:[email protected]
Slide Number 1Slide Number 2Slide Number 3Slide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8COVID Disruptions – �U.S. Consumer SpendingSlide Number 10COVID Disruptions – Food DeliverySlide Number 12COVID Disruptions - RetailCOVID Disruptions - RestaurantCOVID Disruptions - TravelSlide Number 16Slide Number 17Slide Number 18Slide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24Slide Number 25Slide Number 26Slide Number 27Slide Number 28Slide Number 29Slide Number 30Slide Number 31Slide Number 32Slide Number 33Slide Number 34Slide Number 35Slide Number 36Slide Number 37Slide Number 38