Control Systems & PLC's

Travel Step

How to Evaluate the Financial Power of Any Business Idea - in 5 Easy Steps

Once you get an inkling of a business idea in your head, it is very tempting to jump right into investing your time and money.

But, to help you avoid putting your time and money behind the wrong idea, I've developed a simple 5-step process for evaluating the financial potential of your business idea.

I use a real-world example to illustrate how to complete the process - my friend Jim, an expert in corporate strategic planning who actually used my process before deciding which way to take his new consulting business.

The Challenge: How to make a living from knowledge of strategic planning.

Step One – Define the need to be satisfied or problem to be solved.

From his experience as a member of several corporate strategic planning committees, Jim had learned that many companies end up dissatisfied with the outcome of their planning because they improperly define the key issues, select the wrong committee members, and don’t show discipline in implementing their results.

Step Two – Determine the different revenue-producing opportunities that arise from solving the identified need/problem.

Jim used his experience, personal interests and some research to identify three possible initial revenue-producing opportunities:

#1 - Write a strategic planning workbook.

#2 - Create and market a one-day strategic planning workshop.

#3 - Sell strategic planning consultation.

Step Three: Part One - Determine the resources* required to bring each opportunity to life.

#1 – Writing Workbook

Needs:

Writing Skills

Money to Print Books - est. $10,000

Distribution channels

#2 – Presenting Workshop

Needs:

Knowledge of live, interactive training methods

Promotional literature and plan

Starting capital - est. $5,000 - $15,000

* Common resources include: money, industry contacts, technical knowledge, a mentor, time, and space.

  

#3 - Sell Planning Consultation

Needs:

Knowledge of several target markets (industries)

A proposal-generating and follow-up system

Direct selling skills

Step Three: Part Two - Evaluate Needed Resources vs. Available Resources.

1. Jim is a novice writer, and may have to hire a “ghost writer” which would cost up to $5,000 additional.

2. Start-up costs for a live workshop series can be substantial. A joint-marketing partner would be very attractive.

3. Jim has never started and run the complete planning process. He would need some practice running the whole planning process.

Step Four - Determine the Expected Financial Return for Each Opportunity

#1 - Writing Workbook

This type of book could sell for $49.00 retail, with 45% minimum discount for wholesale cost. This leaves $26.95+ of revenue per book. A 200-page book would cost about $5 - $7 each to print, which leaves $21.95 - $19.95 each per book in profit.

#2 – Presenting Workshops

Workshop can be sold for $495 per person for one-day, less a materials cost of $15, leaving $480 revenue per person.  Costs: advertising - $2,000 per location; room and a/v rental - $1,000 per location; travel and administrative support - $2,000 per location for a total of $5,000. 11 participants would cover all costs.

 

#3 – Selling Consulting

Experienced strategic planning consultants can charge $200 per hour, or about $1,500 per day of consulting. New consultants usally can bill out only 40% of their time (known as "billable time" in consulting). Presenting a "Fortune 500" appearance will require monthly expenses of around $2,500 - for rented space, promotional expenses and travel.

Step Five - Compare the Resources Required and the Expected Return of Each Opportunity.

You can use a 1-3-5 scale for initial evaluation (1= low level of resources or return;   3 = medium level of resources or return; 5 = high level of resources or return).

When one revenue opportunity is selected, you must determine through experience and research actual dollars of cost, sales and profit.

Opportunity #1 - Write Workbook

Resources: 1 (3) 5 Return: (1) 3 5

Opportunity #2 – Present Workshops

Resources: 1 3 (5) Return: 1 (3) 5

 

Opportunity #3 – Sell Consulting

Resources: 1 (3) 5 Return: 1 3 (5)

<p><b><a href="http://www.bizstarters.com/pages/ultimate.html">Learn how to master your own business - in just a few weeks</a></b></p>

About the Author

Jeff Williams

Jeff is an award-winning entrepreneurial coach and CEO of Bizstarters.com, selected by Kiplinger's as "The Best Entrepreneurial Website For People Over 50".

Launching his first business at age 40, he and his Virtual Incubator coach's network have coached more than 4,000 Boomer entrepreneurs through the business start-up process,

Jeff is the author of eight workbooks, guides and DVDs on starting a business after 40, including his latest offering, The Ultimate Boomer Business Start-Up Guide available through Amazon.com and Bizstarters.com.

Access a diverse offering of free resources on how to launch a great Boomer business.

what is a (belly dancing) "reda" back and front step ?

I am learning to belly dance (Egyptian aka Oriental style) and I tutor a friend in it. Our teacher has asked us to learn the reda back and front step or at least that is what she called it. I have no idea what that is and I keep trying to search for it but I come up with nothing. I know how to do the back reda step but I'm not sure as to exactly what the forward traveling step consists of. Any thoughts would be greatly appreciated!

I do mainly tribal fusion but I have done some Egyptian and I've never heard of a step called a Reda.
I can only think it is a step favoured or developed by Mahmoud Reda.

"Nelly Mazloum and Mahmoud Reda are noted for incorporating elements of ballet into belly dance, and their influence can be seen in modern Egyptian dancers who stand on relevé as they turn or travel in a circle or figure eight" http://en.wikipedia.org/wiki/Belly_dance
I thought he was more folkloric...

http://webcast.bibalex.org/Home/Biography.aspx?ID=avxMqj3VQu/L+Yv3lHY0LA==

Perhaps watching some of his youtube videos would jog your memory

http://www.youtube.com/results?search_query=Mahmoud+reda&aq=f

Abundance ( Drum Step 2010 )