The 30 Minute Business Plan: A Quickstart Guide To Planning A Business | Steve Burnside, MBA | Skillshare

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The 30 Minute Business Plan: A Quickstart Guide To Planning A Business

teacher avatar Steve Burnside, MBA

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

9 Lessons (29m)
    • 1. Intro

      2:08
    • 2. Get The Most out of This Course

      2:24
    • 3. What Is MASS

      1:27
    • 4. Aquire

      2:40
    • 5. Money In

      6:23
    • 6. Significant

      4:29
    • 7. Spend

      2:55
    • 8. The Honest Truth

      2:49
    • 9. Will It Go?

      4:06
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About This Class

Welcome to The 30 Minute Business Plan: A Quickstart Guide To Planning A Business. As a business owner and M.B.A. I have worked with a significant number of entrepreneurs to help them discover their business plan.

In The 30 Minute Business Plan: A Quickstart Guide, we will use my "M.A.S.S." model in order to quickly and easily vet out business ideas and determine if they could actually make money. 

This course is perfect for any entrepreneur, or future entrepreneur, that needs a quick and easy way to start planning their business.

By the end of this course, you will have the tools you need to easily determine how a potential business could make money, as well as be able to easily explain the business to friends, family (or even the bank). 

With over 19,000 students online and hundreds more in person, I am committed to helping people start and grow businesses to make a better life for themselves and their families. I want to personally invite you to this awesome course that will give you easy-to-use tools to find a business that is right for you. 

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Transcripts

1. Intro: Welcome to business fundamentals. The 30 minute business plan. My name's Steve Burnside. I'm excited to be your instructor for this course as wouldn't give you a little introduction and what to expect. I created this course because I realized, you know, a lot of people have great business ideas. They just don't really know how to get them on paper and get them on paper easily. Ah, lot of times you look up business plans and business planning books and they're so extensive that people don't really have time to go through that whole plan to figure out if a business is going to work or not. So I developed my mass model that's m. A S s model to really just quickly and easily get ideas on paper to see if a business idea is even profitable. I remember driving down the freeway with my wife on, were newly married at the time, and I'm one of those people that would always have a ton of business ideas, that entrepreneurial spirit in me, which I'm sure most of you have. And when we were driving down the one highway in California and I was spouting out business ideas and she looked at me and said, Can you just tell me the business ideas that you're actually somewhat serious about? And, uh, I remember looking at her saying, Yeah, yeah, I can do that. Well, what I was essentially doing in my younger years was just processing these business ideas with her to figure out if any of them could potentially work. So now what we can do is we can actually use this mass business model that you're going to learn and in 30 minutes or less, really get the core fundamental pieces of a business so that you can know if that business is going to work as well as communicate that to other people around you, your friends, family, spouse, maybe your kids. And you're gonna be confident moving forward to the next step with your business. You know me will probably ask you pretty early on to rate this course. My goal and my heart is that this would be a five star course for you. If you feel like for any reason you can't give this course five stars, please reach out to me before you leave a review. I love to see if we can work that out before you leave your of you. So with that being said, we're gonna go ahead and go to the next class, where really were on talk about what? You need to be successful in this course. 2. Get The Most out of This Course: to be successful in business fundamentals. The 30 minute business plan, What I'm really asking people to do is be honest with themselves. One of the most difficult things about entrepreneurship is just being honest with yourself about whether or not an idea is good or bad. What you also need to understand is this class is catered towards people that are really wanting a quick and easy way to get a business on paper. This is not going to be that extensive 50 page business plan that you have to write up to get the loan at the bank. This is that first step business plan for you to figure out if a business will fly. Okay, I don't want you to come into this thinking in 30 minutes. We're gonna be able to write this extensive crazy business plan because that's not the reality. But I do want to empower you with tools that you can feel like you could move to the next level of a business, and that's what the 30 minute business plan does is gives you the tools to do that. It gives you the resource is to build to communicate about your potential business to those around you, so you can have good conversations and it's going to talk about those important factors in your business. OK, that is that is so important in a business that you know, it's amazing how many businesses I talked with. They don't even have these core principles established. So once again, what you're gonna need to be successful in this is is honest, truthful dialogue with yourself and those around you, you know, the other thing is, it's great if you have a business idea right now. If you don't hopefully through this course, you'll get a business idea. You'll be inspired. It's definitely helpful if you download the attached mass business model pdf that I have attached to this lesson, and you can go along with us if you have an iPad and I've had pro or or some sort of tablet that you can use a pen or pencil with. You can always download that onto your tablet and take notes with us right on that tablet. And the other thing I would ask you to be successful in this course is to use The resource is available. I check my messages almost every week day. So if you have other questions, please feel free to reach out to me through the uni direct messages. I'm happy to answer questions. I love talking to business owners and entrepreneurs and helping them start and grow their business. So with that being said, let's jump in to the mass model. 3. What Is MASS: So by now you're probably wondering, what is this mass business model? You've probably heard it three or four times, and you're probably saying yourself, Steve, please tell me what is the mass business model? And it's a very easy four square business model and hopefully have downloaded the PdF. But as you can see on the screen, it's a four square business model that looks at four of what I believe are the most important elements of a business to figure out if that business is viable or if the business can go. So the first M stands for money, and that means money in. So how are we making money? The A stands for acquisition or acquiring customers? How are we going to acquire those customers but first s stands for spend? So where is our money going once we get it in the second s stands for significant or significant people in your life? Most the time when you talk about entrepreneurship. Business models very rarely have ever heard people talk about the significant people in your life your spouse, your kids, your friends and how this business would impact them. Honestly, I believe mawr small businesses live or die because of us, of spouse relationships, of kid relationships, child relationships. And it's so important to talk about that. So that's that second s so m A S s. 4. Aquire: Now we're gonna look at the A, which is a choir, so that how do we acquire customers? We're gonna look at all of those ways that okay, if I have a certain business, so right, we're kind of doing this overview of this mass model, so I know how I'm going to make money in this business. But how am I going to find customers to pay me that money? And that's where you'll really have to look at. Who are your current connections? Do you have any potential referral partners in that space? Referral partners are often people that are doing a similar type business or or ah, a complimentary tight business that might have connections for you. So, for example, if I you know, let's go back to kind of the barbershop hair stylist, um, type scenario, I would want to make as many friends with people that, um, you were restitutions and had nail salons, and all of that is possible because those clientele would be my clientele. If I'm doing, if I want to do, I t work for businesses, then I want to meet all of the copier guys and the phone service guys everybody that's in that business could be a great referral partner. Third is going to be networking groups. There's a lot of different business networking groups out there, So getting an idea of what networking groups are around you, you can actually normally find those online in often, I mean most the time they'll give you a list of people that are in those networking groups . So you could kind of make a determination if being connected with those people, if you could help them and they could help you. So that's gonna be a really powerful tool and then advertising and marketing. So you know, advertising and marketing You Really? How do you How are you going to advertise or market your business on Facebook or on Google ? Or maybe print ads? I'm a big fan of the of digital advertising, so we'll be talking about that later. But really thinking about is, Do you have a type of business that you could acquire clients and customers through advertising and marketing? Now the answer to that is yes, really. The bigger question is you know, how are you going to advertise? How are you going to market yourself? Do you have the tools necessary, Teoh be advertising on Facebook or on Google, or you don't have to hire somebody to help you with that. Um, do you have the tools available to you? Do you know how to build a website? Do you need to find something that can help you build a website? All of that is in. How are we going to acquire customers? We're gonna look at our current connections are referral partners. If we don't have referral partners, gain a list of people together, that could be potential referral partners going out meeting them. Networking groups, advertising and marketing. 5. Money In: All right, So now let's go briefly through every section of the mass business plan model. Once you progress, can and do, ah, high level overview of each section. And then later on in this course, we're actually gonna do real life examples. Or if we were working together on certain business plans, um, how we would actually implement this and you'll see it's super easy to implement so easy you could actually do this with a napkin at the restaurant you're eating out when you have a business idea. So that's the goal of the mass business plan is to give you a riel life understanding of what it would take to run a business, how it would go and that your business plan would actually be able to fly. So it's like a m money in. That's the first part of the mass business plan. So this is pretty basic. How does your business make money doesn't make money with one time fees. So, for example, if I went and washed your car and you gave me, you know, $50 toe wash your car and that was it, our transaction was over. You paid for a service that would be a one time type feet if we were talking about a retail store. You walk into a retail store, maybe you're buying a new TV. You hand them $1000 to buy a new TV, you walk out with the TV, and that's it. Those air one time transactions the second is recurring with a limit, so that might mean that you have a recurring revenue model. But that recurring model there's some sort of upper limit with how much money you can receive. So, for example, this is very common in consulting type environments. Um, I might own a an agency, for example, that does Facebook advertising for people. And when I'm doing that Facebook advertising, I know every client. I'm going to spend five hours with a month, and so I know I can get a recurring revenue out of them of X amount of dollars. But I am limited by the number of hours in a month. Nothing by myself than I, you know, have to determine how many hours a month I wanna work and that can determine how many clients I can have. And I can have them all on recurring revenue. But there is an upper limit because there is still a time component attached to those types of businesses. Now doesn't saying it's good or bad. It's just that's the reality of it. You see this a lot with recurring with a limit. Now I could increase my limit right by hiring somebody. But then I also bring on cost. So I have to start thinking about that cost benefit of hiring somebody. And if they have the average working month has 173.33 hours. So if they have 173 hours on average, if I can get more clients to fill their their bucket of time, how much time do I save? How many clients do I need to break even all of that good stuff, then we have recurring unlimited, so this is most commonly seen in the software sector. So you pay for some sort of software service. Um, you know, even if it's Google Drive or it might be, you know, if you're a business owner, you might be paying for QuickBooks where they essentially haven't. Unless there's a technically unlimited supply right, they could sell QuickBooks licenses as many licenses as air available out there, and they sell that, especially QuickBooks online, for example. Right now, they've built a infrastructure in a model, and now they can sell as much of that as they can on a recurring, unlimited basis. There's no riel ceiling now. Some of you might argue that you do have to have some sort of stealing cause there's customer support and things like that, and that is true. But for the sake of what we're talking about, that really becomes a extremely scalable model with that recurring unlimited. Interestingly, what I've I've seen, this type of model happened mawr in models that used to be one time. So where we live locally and I've seen this across California, we're starting to see car washes that are offering a monthly service right so they can technically sell as many monthly unlimited car washes as possible. What's interesting about that model is the car wash station on Lee work so fast. So there is an actual upper ceiling of how many cars can process through. But there's not an actual ceiling of how many memberships they can sell now. They would end up losing memberships. If every time you came to the car wash, you couldn't get a car wash because it was 30 or 40 minutes of wait time. But the concept here is that they're having people take money out of their pocket every month. They can technically sell an unlimited amount of those services because you paying them is actually based on whether or not you make it or not. It's not based on the work I'm doing for you. And that's why this is a different example than, say, if I owned the Facebook agency, where the work that we're doing for somebody determines whether or not they're going to pay us or not. In the same token, something like a car wash their paying every month, and then it's based on them whether not they go to the car wash or not. And you know most those people, even if they miss one month, will be back the next month in it. In all of that, I've seen it also happening with, um, with barbershops, the barbershop I go to. I pay one flat feed right now. I think it's $25 a month and I'm I'm eligible for unlimited haircuts. I could go on every day and get a haircut if I wanted, so they could technically sell unlimited numbers of those, um, recurring passes. But you know, once again they only have a limited amount of resource is. But it's up to me the book, the time that I can make it so those were really three of the types of how we make our money. One time recurring fee. Recurring unlimited. Most of the ways you look at making money will fall into one of those categories. If you are, you know, if you have ah, along you know what they call mow and blow service right where you mow lawns and and and trim the edges and all of that. Ah, lot of those people used to be on a one time, and now there's a recurring with a limit. And to increase that limit, people bring on staff to be able Thio more lawns. So there you go. There's the 1st 1 money in 6. Significant: and the final s is significant. And I think this is important cause I've never seen anything like this in a business model business planning model. And when I was putting together this mass model, one thing I realized I recognized in business startups that I've done is that the impact on your family, your friends? Your life is normally very. There's a lot of impact is extremely significant. And so I want to use the word significant on this slide to talk about. How does this start up we're talking about? How does this impact significant others in your life? Um, if you start talking to business owners, entrepreneur solo preneurs, especially ones that have tad businesses that are taking them away for, you know, 60 70 80 hours a week, most of them will tell you horse stories about how it hurt their marriage, ruined their marriage, hurt their relationships with their kids, all of that stuff. And so it's very important we look at what we believe we can see because you can't see everything in the start up phase. I mean, that's obvious, but we have to do our best to try Teoh future guests. Teoh What kind of impact is this going to have on my spouse, my Children, my friends, my community groups that I'm a part of? Maybe you're part of a church or ah, community organization. Is that going to impact that, um, current clients? I mean, if you're trying to start up a business, maybe you have another business or you're working for another business. How is that going to impact them and being very up front and honest about that? You don't ever want to get into a situation where your, um, your current boss or your current clients are upset or frustrated at you because they don't feel like they're getting the attention paid to them. Um, once again, this is a huge element. I would say the reality of it is if you if you're starting a business having your spouse onboard now this is just a random stat. I'm making up in my head. But I would be willing to wager you'd have a 50 to 60% better chance of that start up going with 100%. Your spouse's onboard your significant others on board than the other way around, because what ends up happening is You have this start up and you have this baby that you're caring for, right? This business that you're caring for And then all of a sudden, one day you are spending 40 hours with it, 50 hours with 60 hours with it, and it becomes this divide between families. It's like I have this baby and I'm stressed out about it. I know everything about it, and then your spouse is sitting over here going like I don't know why you're so obsessed with this thing. I've watched it tear relationships apart. I've watched I've talked to many business people that have told me I should have thought this stuff through because now my relationship with my kids is not great. Now, there grown up and going off to college. And you know that the entrepreneurial excuse is normally I'm doing this for my family. Um, And in doing it for your family, are you hurting your family? And I'm just trying to be honest in this, because once again, I've never heard this really talked about in a business plan that if you come up with this business plan in the next couple slides, I want to show you how to kind of put some meat to the bone here. But if you come up with this plan and you come up with the fact that it's going to take you 300 hours a month, you know, to make this thing happen, you really need to rethink it. You know, is this really something that's going to be viable long term now? Um, John Maxwell, who is Ah, motivational speaker. Ah, makes a great point, he says. You know, life is not normally, you know, 50 50 or is there is no real work. Life balance is really more of what he's talking about, he says. You know, there's times in life where work does get amplified. There's more work that has to be done, and so time gets taken away from the family. But that has to be counterbalanced with times where you're away from work or there's less work time, and there's more family time to make up for that. So in a start up mode, having that conversation with your significant other year, your kids, your you're friends of Hey, we're starting this thing up. I think I have a 68 month ramp up. So in those 68 months, it's going to be crazy for me. But here's the plan. Here's how we're going to get past that. Here's how we're gonna bring balance. You know of, we're gonna bring more family time back into our life. Um, all things that you really need to think about. 7. Spend: So now that we have talked about acquire, let's talk about s which is spend and that's where we're going to about where does our money go? So we've talked about where we're getting our money and how much you know how we're making our money. But now we also have to really have an honest look at where our money is going to go. So we're going to talk about COGSA, which, as you get into business, if you've never run a business before, never done a balance sheet, you can start learning some of these terms. But COGSA is short for cost of goods sold. So if you're going to start a guitar store, you know, how much money am I going to have to put into inventory? What is going to be my cost of the goods that I'm going to sell now? Some of you out there that are ah, you know, into maybe you're a c p. A. Out there. You might be looking at me going well, cause that's not exactly how that goes for our point here. We're going to say, you know, the overall inventory structure is cost of goods sold on a balance sheet. We're going to really look at individual itemized stuff as's faras cost of goods sold. But don't worry about that. I just want to use terms one thin broadly here so you can get a good idea of what your of really what your true expenses are going to be. So we have that cost of goods sold so that inventory level we're gonna talk about coss, which is cost of services sold. So if you're there's some cost for you to deliver a service, even when we're talking about like, say, Facebook marketing or Facebook advertising, If I'm trying to build that kind of business, there's gonna be software that I'm gonna need to be able to run reports for businesses or for my clients. There's going to be a computer I'm gonna have to have, which is actually more under equipment. But there's there's a level of services that it's going to cost something Teoh to actually deliver that service. So you want to think about all of the expenses and costs associated with that cost of services sold. Now, once again, you, ah, CPS out there are probably ah, putting your hand in your forehead right now. That's okay. I just Really When I said that the cost of services sold and then I you know, I brought up equipment. They're going, That's a different line item. And it's true when you look at your balance sheet, that is a different line item. But I want you once again to make this easy to make you go. OK, here's everything that's going to be associated with the service that I'm selling. Okay, Um, then we're gonna have employees, subcontractors potentially rent if you have to have a storefront. I mean, there's all sorts of different. I just put etcetera down there because there's really but it hundreds of thousands of Let's call it unlimited ways. You could spend your money that's gonna be including advertising. How much money and advertising are you gonna have to spend? You have a $10 day budget, $100 a day budget, You know, What are all those things? That where is the money going to go? Okay, so that s spend Where is our money going to go 8. The Honest Truth: which is the honest truth. The honest truth is this little paragraph that I would encourage all of you to dio when you are thinking about a business or when you think about adding ah, new service to your business. This is what you need to ask yourself. In order for this business to be successful, I need to make blank amount of dollars per month to make that same amount of money per month. I will need blank number of clients. Each client will take about blank number of hours. So you're filling in the blanks here, right? This will leave me enough time to build my business as well as build my personal relationships and home life. Now that is Ah, huge, huge statement. So I put a little question mark it in there, even though this isn't a question, as it stated, but it really is the big question. So I'm trying to turning that statement into a question a little bit. So does that leave you enough time to build your business as well as your personal relationships in your home life? So it's go through that again in order for me to build this business will kind of take that example. We said earlier in order me to build this business to be successful, I need to make Let's just call it $8000 per month to make $8000 per month, I will need 80 clients, and each client will take about four hours. Okay? And then I have to assess, based on the numbers that it will that leave me enough time to build my business as well as your personal relationships in your home life. That is what the mass model is all about is about quickly and easily in under 30 minutes. Being able to chart it all out and be able to have this honest conversation with yourself about if this business can actually go his regardless of, you know, if you think it can go, there are pieces of your life that you are not willing to sacrifice, and you have to make sure that this plays into that. Um, that is the honest truth. So there you go. That's a quick overview of the mass business model that actually concludes this section. You are were there were in the home stretch. We're going to do some examples of what the mass model looks like. And I'm excited to hear your questions and what you have to say about how this model has helped you. I do once again check the, uh, the instructor, the questions that come over. So definitely, if you have a question about any of these pieces of the model, feel free to reach out to me. If you're doing your own model and have questions about what should go where, feel free to reach out to me there also, and with that, we're going to jump into the next section. 9. Will It Go?: So now we have to ask that really poignant question of Will it go this business idea, this business model that you have, will it actually be able to work? So we want to actually get a piece of paper out. We want to start really scribbling down some numbers here because after you have this that mass business small the m A s s once you kind determined those things. This is where the bullet kind of hits the bone, right? So first, we won't talk about what is the amount of money I need to make each month like I just need you to put down. Like what? What's the amount of money that I need to take home every month for a lot of us? That is what our W two, uh, check is from our employer right now. I would put your your pre your gross amounts, not your net, because you're still gonna have to pay those taxes. And for many of us, especially, is, um, you know, if you're independent, if you don't become a corporation, well, even if you dio there's expenses, you're going tohave in taxes, that arm or than the taxes you pay, so you know that top line number is good. I'd actually add a little bit more, but let's say that you make $72,000 a year of your job. Right now. It's easiest, right? 6000. There may be right 6500 to account for a little bit of extra overhead. Um, but also you could take into account. Am I? You know, my living above my means. Are there things I can cut? Like if I really am passionate about this business, what can I cut like, what do I actually need to make each month to survive? Then let's look at your monthly expenses, Can we? And this is really, you know, probably your monthly expenses on the home front and on your personal life. But this is also going to be those added monthly expenses that we talked about with where your money is going to go, right. So now we kind of have this home expense, plus this expense that's going to be the added expense of owning the business. The next line there is what is your average revenue per client? What do you expect? The average amount of money that each quiet is going to give you a month, Is it? $300 is a $3000 is a $30,000 somewhere in between all of that. But we have to know the average revenue per client, then based on that, so we have now you're amount you need to make each month. We have your total expenses. We're gonna add those two together. Then, if we divide that number by your average revenue per client, that will tell you the number of clients that you need. So to make the math using because we worked with the number 72,000 you know, let's say let's just take that 60,000 number, which is $6000 a month if we didn't add any any other expenses to that? If we just said I need to make $6000 a month and the average client is going to pay me $600 a month, well, then I know that I need to get 10 clients at $600 a month to make sixth put $6000 in my bank bank account Right now, Once again, that's not taking into account those other expenses, so that number would actually be higher as far as the number of clients I need, but just want to give you the basic math there, then what we need to look at is the average time per month per clients K. What is the average amount of time you're gonna have to spend with each clients to make the revenue the average revenue that you're hoping each client gives you? So once again, this will be very different. Depending on the type of client you have the type of business we're talking about. If you're a lawn mowing service, you might say, Hey, I want to mow their lawn twice a month. It takes me an average of an hour Each time there's 15 minutes of set up, 15 minutes of tear down. So it's really three. You know, it's about three hours a month. Poor clients and each client is gonna pay me $200. Okay, great. So now you have that average time per month per client. You know the average number of clients you need. So if you take or not, the average number climbs, but the number of clients you need so take the number of clients you need times that by the average time per month, perk Wiant. And that will tell you how many hours a month that you are anticipating upfront working and that will take us to the next line.