Category Archives: Forecasting and Budgeting

Creating your Formula for Startup Success @ CSUF Startup Incubator

marc-pakbaz-csuf-startup-incubator

Mark Pakbaz will be giving a talk at the CSUF Startup Incubator soon. We hope to see you there!

Register now for this immensely important talk for entrepreneurs and business people of all kinds by going to THIS PAGE.

Dr. Marc Pakbaz’s talk will take place on Wednesday, February 8 at 6pm at the CSUF Startup Incubator in Placentia (120 South Bradford Ave., we are in the back of the building).

Numbers Talk

We are surrounded by numbers. Everything seems to be measurable by numbers, everything!

Everything seems to be projectable, everything!

  • How can we see the past, the present and more importantly, the future in numbers?
  • How can we apply these rules to our businesses?
  • How can we use numbers to measure our businesses?
  • How can we predict the future of our businesses with numbers?

These are the questions that Dr. Marc Pakbaz will answer. Ultimately, after this seminar, Business owners and Executives will be able to vividly visualize the future of their business.


Dr. Marc Pakbaz Profile

Dr. Marc Pakbaz is a serial entrepreneur and a business consultant.

Dr. Pakbaz has owned and sold 2 companies, after facilitating their turnaround from an unsuccessful and unprofitable company. He became then a specialist of “fixing failing business” and developing and executes a plan to prepare companies to be “sellable”. Continue reading

How the Falling Birth Rate in the U.S. Affects Business

Falling baby pandas (yes, we know it’s a stretch)

The birth rate in the United States is at the lowest ever recorded, according to new data released in November by the Pew Research Center.  This has important and long-term implications – political, social, and economic.  It also affects how marketers will try to sell their products and services.

The yearly number of births per 1000 women between 15 and 44 years old dropped to 64 births per 1000.  For comparison, the birth rate in the United States peaked in 1957, at 122.7 births per 1000.  When the economy was strong, the United States experienced a baby boom.  Now, as the economy limps along in its recovery, twenty-somethings may still delay becoming a parent due to high student loans or a difficult job market.  The steepest decline in birth rate was among Hispanic women, who have been hit particularly hard by the recession.

The United States has been the envy of the developed world because its birth rate has generally been high enough to replace people, due in large part to immigrants and their children.  The reason you want to have a stable or growing population is so the younger workers can support the older members of the population as they age.  Countries dealing with falling birth rates, like Japan, are very worried about how to tackle this social issue.

If Americans are having less babies, this means businesses that sell products or offer services catering to young families will have to adapt or risk losing revenue due to decreased number of babies being born.  Schools, childcare centers, and children-related businesses will need to adjust their game plan if their core consumers are less than before.

By contrast, companies that specialize in products or services catering to the elderly population are likely to do quite well.  Services would include healthcare, meal delivery, transportation, and more.

The average age of a working American will increase, and this will affect workplace dynamics.  Some worry about whether this will mean decreased productivity or innovation, without lots of energetic, young counterparts putting pressure from below.

Birth rates generally bounce back after economic downturns and there is no reason to expect that people won’t begin having babies at a higher rate.  Nevertheless, even a temporarily depressed birth rate can have significant consequences long-term.

For entrepreneurs, the falling birth rate offers opportunities and risks. Knowledge of this trend could prove powerful.

John Bradley Jackson
Director, Center for Entrepreneurship
jjackson@fulleton.edu

[image: daodao]

2013 Small Business Outlook for Orange County

The Orange County Register recently asked eight influential members of the business community what they expected for the OC economy in 2013. Here’s one response you might find interesting from Center for Entrepreneurship Director, John Bradley Jackson:

John B. Jackson

director, Center for Entrepreneurship, Cal State Fullerton

While the federal government officials may fear a “fiscal cliff” with increased budget deficits, small-business owners may face a “fiscal prairie.” The outlook is flat, dry and dusty. For the small-business owners who survived the last four years, most are out of cash, have little access to new capital, have downsized to bare bones and remain desperate for revenue.

Because of this fiscal prairie, small-business owners are selling their businesses in record numbers. For entrepreneurs with cash and courage, it is a buyers’ market. Many of the small businesses are priced at salvage value. There are bargains galore.

Need help With Creating Financial Controls?

Need help with creating financial controls and better accounting practices?

Have CSUF student consulting help — they can do the things that you have wanted to do but have not had the time to do.

Student Consultants are standing by.

Contact Cymedina@fullerton.edu

Travis Lindsay
Center for Entrepreneurship


Need Help With Accounting and Financial Challenges?

CSUF Business Students can help with budgeting, purchasing, collections, payroll, taxes, controls, financial reports, cash management and banking relationships.

Contact Charlesetta Medina at 657 278 8243 or email her at cymedina@fullerton.edu.

Visit http://business.fullerton.edu/centers/cfe/sbi.htm

New Venture Sales Forecasting

Forecasting sales at for a new venture requires in-depth research along with educated guess work. There is no substitute for knowing your customers and why they will buy your offering. Buyers will choose your product over the competition because it is different or better. They buy for their own reasons and not yours.

Presuming your offering is competitive and is desired by the target market, here are the basic steps in developing a sales forecast:

• Develop a profile of your target market: Who are your customers and why do they need your offering?

• Determine the trends in your industry: What is unique about the purchasing cycle in your space? Are there any anticipated future trends such as changes in government regulations, economic changes, or environmental changes?

• Define the size or boundaries of your market: This market sizing could be by geography such as North America, by vertical such as health care, or by technology such as Apple users.

• Identify your competitors: Which competitor supplies your customer today? What is the sales volume? What is the channel of distribution?

• Estimate an average sales price for your offering: This price should be conservative and may increase or decrease in years two or three. Note that discounting may be needed in year one.

• Calculate monthly sales: Prepare sales estimates by month. Be sure to assess how seasonality may impact your sales cycle; this includes holidays, summer versus winter, or specific industry buying trends.

• Compare your annual forecast to other similar companies: Consider using Risk Management Association (RMA) data to determine if your forecast is reasonable? If it varies from the industry norm how will you explain this variance to investors or bankers?

• Be prepared to change and modify this forecast: As you build your financial plan, it is normal for your forecast to change. Stay flexible.

New venture Sales forecasting is a best guess, but if you know your customer it is an educated guess and you are the best one to do it.

John Bradley Jackson
Director
Center for Entrepreneurship

[Image: Wikibon]