Class Discussion in Preparation for John Teeples
prepared by: Doug Martin
To: Steven Williams, Fellow Students
From:
J. Douglas Martin
Date: Thursday, November 09, 2000
Re: Class discussion in preparation for future guest lecturer John Teeples (Teeples will join the class in the next couple of weeks).
Meeting Date: Thursday, November 09, 2000
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Attendees: |
Steven Williams |
Auburn University Professor |
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J. Douglas Martin |
Student |
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Lance Davis |
Student |
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John Feekes |
Student |
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Thomas Rhoden |
Student |
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Zac Wolfe |
Student |
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Hutch Peden |
Student |
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Ingram Thornton |
Student |
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Jamie Howell |
Student |
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Harlan Price |
Student |
1. General
1.1 The meeting was held to give the students a feel for various topics of focus to be addressed when starting a business. The professor generated such discussion by going over an online tutorial published by the SBA and applying it to a new construction business. During the discussion the class occasionally got off the subject onto small tangents.
2.
Description of Business
2.1 Commercial Construction
2.2 General Contactor
2.3 Partnership (not Inc., etc.)
2.4 Selling: service (not goods)
2.5 New Business (not Takeover, Expansion, Franchise, Etc.)
2.6 Why?
2.6.1 Want to be own boss
2.6.2 Want to make money
2.7 How?
2.7.1 Develop a niche.
2.7.1.1 What is going to make it unique?
2.8 Location
2.8.1 City: Columbus, GA
2.8.1.1 Industry
2.8.1.2 Expectation of growth
2.8.1.3 Perceived advantage over competition
2.8.1.4 Closest big town to home
2.9 Building
2.9.1 Need some storage place
2.9.2 Need office for meetings
2.9.3 Disadvantage: overhead
2.9.4 Where in town should it be?
2.9.5 How big should it be?
3. Marketing Plan
3.1 Williams: “Lemmie digress just a minute.”
3.1.1 Discussion of decorative concrete business
3.2 (Back to previous discussion) Start bidding on public work
3.3 Try to get on private bid lists
3.4 Get a banker and a bonding company
3.5 Understand Competition
3.5.1 Who are my top five competitors?
3.6 Advertising?
Note: The class had to accelerate its discussion in order to finish within scheduled class time.
4.
Management Plan
4.1 Background in the business
4.1.1 Managing construction projects
4.2 Weakness
4.2.1 Not used to smaller projects
4.2.2 Not used to doing own accounting work. (Potentially)
4.2.3 Initially: Duties not clearly defined
4.3 Which partner is putting in the most money?
4.4 Where will we get personnel?
4.4.1 Plan of hiring/firing
4.5 What is our plan to get subcontractors to work for us (new company)?
5.
Financial Management Plan
5.1 Salaries
5.2 Must know lawyer and his/her cost
5.3 Personnel issues
5.3.1 Ability to gear up quickly
5.3.2 Trustworthiness of employees
5.4 Licenses and permits
5.5 Equipment rental and purchase
5.6 Accountants
5.7 Utilities
5.8 Insurance
5.8.1 Builders Risk
5.8.2 Liability
5.9 Supplies
5.9.1 Fax, computer, cell phone, paper, truck, business cards, Etc.
Note: Ask John Teeples what it took him (financially) to start up, or what he thinks it would take to start up a similar business today.
5.10 Operating costs (direct from Williams’ SBA outline)
5.10.1 Personnel
5.10.2 Insurance
5.10.3 Rent
5.10.4 Depreciation
5.10.5 Loan payments
5.10.6 Advertising/ promotions
5.10.7 Legal/ accounting
5.10.8 Misc. expenses
5.10.9 Supplies
5.10.10 Payroll expenses
5.10.11 Salaries/ wages
5.10.12 Utilities
5.10.13 Dues/ subscriptions/ fees
5.10.14 Taxes
5.10.15 Repairs/ maintenance
Note: The class had brought up all of the SBA operating costs (5.10) in its discussion prior to hearing the list.