Youth Worker Training and Consulting Agency - Essay Example

Business Plan: Present, Interact, Share & Exchange (P.I.S.E CONNECTION, INC. Elevator Pitch P.I.S.E. CONNECTION, INC. provides and presents information for the postmodern youth worker by providing workshops, speaking engagements, consulting and seminars to disseminate relevant information pertaining to all kinds of issues of Christian adolescents and teens. Among other things, the thematic areas covered include Relational skills, Teambuilding, Interpersonal Communication, Ongoing Personal Development, Understanding Family Dynamics, Understanding Youth Culture and Community Building. The company provides personalized services to its customers by ascertaining what the customer and their youth groups need and thereafter design a tailor made program that fits their needs rather than generalities that are sometimes presented at large conference settings such as Youth Work Central, or the National Youth Workers Convention. The founder possesses a Masters of Arts Degree in Human Services: Christian Ministries and is currently working on an MBA in Management & Leadership. In addition, he has 30 years’ experience in youth ministry as a volunteer, youth counselor, and a youth director. Currently, she is the district youth directress for East Florida & Bethany Children and Youth Department, which consists of 23 churches. Dr. Earnest Whitley is the only partner in the company. He possesses a Ph.D. in psychology; he is a consultant and a professor in areas of individual, family and group counseling and psychotherapy. Table of Contents Contents Elevator Pitch 2 Contents 3 1.0.The Business Concept 4 2.0.Founding or Management Teams 6 3.0.Capital Requirements 7 4.0.Industry/Market Analysis 8 4.1.Life Cycle of the Industry 9 Brand Loyalty 10 5.0.Product/Service Development Plan 10 5.1.Company’s Position in the Value Chain 10 5.2.Creation of Value for the Customers 10 5.3.Revenue Streams and Cost Drivers 11 5.4.Weaknesses of the Business Model 11 Business Competitive Strategy 12 6.0.Operations Plan 13 7.0.Organization Plan 13 8.0.Financial Plan 14 Estimation of Sales and Revenues 14 The Role of the Balance Sheet 17 9.0.The Legal Form to Be Used By the Business 18 References 19 1.0. The Business Concept My startup venture is a “Youth Worker Training & consulting Agency.” I will provide and present information in terms of the scope or overall perspective of youth ministry for the postmodern youth worker by providing workshops, speaking engagements, consulting and seminars to disseminate relevant information pertaining to all kinds of issues of Christian adolescents and teens. Youth ministry for the most part has failed to grasp the hearts and minds of the young people of the church, resulting in falling away of our youth. In an attempt to curb the decline of youth church affiliation, churches have looked for ways to keep their youth in the churches. One strategy has been hiring youth pastors or workers (Goreham, 2004). Although there are passionate, highly motivated youth worker who have been working with children for years, most of them are not equipped to provide the skills adolescents and teens need to navigate through the difficult obstacles they face in this contemporary highly advanced globalized technical broadband connected world. These technological realities put teens in touch with the world and world in touch with the teenager. This exposure provides far more cultural stimuli than the parents and youth workers ever could have dreamed at their age. This change in their culture along with the many different family dynamics that youth, today, find themselves, has led to the development of a different kind of a young person requiring a different kind of youth worker. We are not proposing different workers, just different methods (Mueller, 1999, p.138). P.I.S.E. CONNECTION, INC. will provide personalized service to its customers. This will be delivered by coming to you and addressing the issues that are specific to you and your youth group rather than generalities that are sometimes presented at large conference settings such as Youth Work Central, Youth work-practice or The National Youth Workers Convention. Some of the topics we cover are Relational skills, Teambuilding, Interpersonal Communication, Ongoing Personal Development, Understanding Family Dynamics, Understanding Youth Culture and Community Building. Jesus has a passion that no child is lost (Matthew 18: 12-14 NKV), therefore, youth workers must be in tuned with today’s youth and their culture to be able to reach them where they are and are willing to keep an open mind when it comes to their worldview. Behold, children are a heritage from the Lord, the fruit of the womb a reward (Psalm 127:3 NKV). We are charged to train our children while they are young so that they will not depart from it when they are old (Proverbs 22:6, KJV). Mission To providing prayerful, uncompromised professional consulting and training services in order to assist our clients achieve their goals and objectives; we will deliver guidelines and regulations, the industry’s best practices and the highest standard of fiduciary responsibility. Vision To be one of the leading international consulting and training agency in youth ministry for youth workers Core Values Positive change Leadership Sustainability Passion Innovation And the LORD answered me, and said, write the vision, and make it plain upon tables, that he may run that readeth it.  For the vision is yet for an appointed time, but in the end it shall speak, and not lie: though it tarry, wait for it; because it will surely come, it will not tarry." Habakkuk 2:2-3 (KJV). 2.0. Founding or Management Teams Research supports the team approach to entrepreneurial startups, and teams have a much greater chance for success than solo efforts according to Allen (2012, p. 15; Dess, & Miller,1995), but because of insufficient resources, PISE CONNECTION will start out with two people, my partner Dr. Earnest Whitley who has a PhD in Psychology, has experience that includes working as an Organizational Development Consultant, a college professor and in private practice, in the areas of individual and family and group counseling and psychotherapy. He has also consulted in business development and has developed workshops and seminars in business development, management and marketing for small businesses. I have 30 years’ experience in youth ministry as a volunteer, youth counselor, youth director currently district youth directress for East Florida & Bethany Children and Youth Department, which consists of 23 churches. I have a Masters of Arts Degree in Human Services: Christian Ministries and currently working on A MBA in Management & Leadership. Understanding that in order to seriously undertake this venture, there are certain legal and accounting information that is needed prior to startup and not having the resources to hire in-house professional help such as an attorney an accountant, we will rely on building relationships with professionals on an “as-needed” basis.  Bankers and insurance agents although vital, will not be members of the initial startup team.  Outsourcing with independent contractors will be our staffing choice starting out with only the two founding members. 3.0. Capital Requirements PISE CONNECTION, INC. will start out as a home based venture simply because of the capital requirement to go any other direction. Switching costs for the buyer and access to distribution channels will be another uphill battle for PISE as you get back to brand loyalty and this is a very close, closed niche industry. This is also difficult because established firms hold patents on products and processes that PISE require leaving them with the ability to keep us out or make it very expensive, which will be another way of keeping us out. This market size may not be a viable venture for a small part-time entrepreneur to undertake. The first three years estimate of sales of $500 dollars per workshop with an average of three workshops, a month, is $54,000 dollars. Expenses approximately $48,000, with a $15,000 start up. Even with this bleak outlook, PISE still has hope as we are reminded of Jeremiah 29:11 NKV. “For I know the plans I have for you," declares the LORD, "plans to prosper you and not to harm you, plans to give you hope and a future.” 4.0. Industry/Market Analysis Theodore Levitt originally developed the idea of a product life cycle in the 1965 Harvard Business Review article “Exploit the Product Life Cycle.” Maintaining growth or maturity is extremely important for an organization to have a sustainable revenue stream. To avoid potential decline, it must continually adapt and reinvent its products and services. Organizations that regularly reinvent themselves are healthier than those that don’t (Levitt, 1965). In researching the industry for religious youth worker training & consulting was indeed an eye opener, especially as far as the return on investment is concerned. “When looking at the forces that tend not to change such as brand equity ad intellectual property and forces that are dynamic, such as the number of potential buyers or changing demographics; and the aggregate strength of the market forces” (Allen, 2012), this is not an industry that one would venture into on a small scale which PISE CONNECTION would have to do, but this would not be a strategic business move. There are not enough customers who would be willing to spend enough money on our product or service at startup to provide sales revenue that would cover PISE’s expenses for services provided. There are a number of National Youth Conferences that are hosted in key cities around the country every year on a major scale and there are those that provide conferences year round like the Wilds Christian Association, Inc., who use the unique benefits of Christian camping in North Carolina and New England. This year-round camp hosts over 20,000 campers per year, and has been for forty-plus years for youth workers, youth, adults and families. The OC 14 (Orange) Youth Conference (who is out front) is April 30th – May 3rd is expecting over 5,000 people this year and the rates are groups of 1-14 people, $239, $259, $279, $299 & $399, per person. The rate depends upon when you register. There is another grouping for 15 or more with different prices. These prices cover registration and materials only. There are many other groups who are major competitors of Orange such as Catalyst, D6, AflC, Association mission youth retreats and student mission, which is in Brazil this year and Simply Youth Ministry Conference (SYMC), among others. Then you have the ones who provide annual conferences in their own region, Christian Education Ministry Resources and Training seminars in addition to other faith-based entities. It all depends on the need and the budget of the customer. 4.1. Life Cycle of the Industry The youth workers, youth ministry training industry, is in it differentiation and competition stage where those who enter must either find niches that have not been served or differentiate themselves enough to attract enough customers to be successful (Allen, 2012). The largest threat of this stage is commoditization where products and services have thin margins and are sold on the basis of price and not brand. Porter’s Five Forces Entry into the Youth Worker and Youth training workshops and conferences Industry is difficult as this is a very close niche industry presenting challenges for the entrepreneur entering the market (Dobbs, 2014). PISE finds itself in a vicarious situation. Financially, we can only enter on a small scale making it difficult to compete with standard fees of larger more prominent established firms therefore; our fees would have to be higher just to cover expenses. Brand Loyalty Brand loyalty is critical in a business enterprise. In motivational marketing experts say that programs that assist in building loyalty of the customers can help make sure that customers do not switch to another brand (Building brand loyalty, 1998; Wood, 2000).To get customers to switch to try something new requires an extensive marketing campaign, which requires an extensive budget that is not something PISE can afford at startup. 5.0. Product/Service Development Plan 5.1. Company’s Position in the Value Chain Value chain analysis and evaluation provides a starting point for a business enterprise to recognize its demands and advent (Durisova, 2010, p.65). Value chain analysis is cost management method that entails the process of decomposing processes from the company suppliers to the final consumer into relevant activities as a strategic way of cost management. PISE CONNECTION, INC. is located at the top of the value chain and is its own supplier/producer, manufacturer and distributor of its products and services.  With this elimination of the middle man, it increases its capabilities while lowering risk-taking vulnerabilities, and cost, but may require more time commitment for the entrepreneur.  5.2. Creation of Value for the Customers The creation of value entails innovations that establishes or raises the consumer valuation of the benefits of consumption (Priem 2007, p. 220). Value will be created for the customer by segmentation, which will allow PISE CONNECTION, INC., to closely tailor its product to the needs, desires, uses and paying ability of the customer.  It will also allow the company to concentrate their resources, money, time and effort on a profitable market, which will grow in numbers, usage and value (Economic times, 2014). 5.3. Revenue Streams and Cost Drivers Customers will pay for services, hourly or on a project basis with transaction fees, which will be the initial revenue stream.  Although Allen (2012) states “the reliance on one revenue stream is dangerous,” that point is understood that is why continued planning, development and implementation of other products and services will be an ongoing activity at PISE CONNECTION.  The key cost drivers for this company are direct costs such as logistical expenses and from marketing, advertising and the production and copying of hand- out materials and specialty items such as pens, pencils, note pads, tote bags, etc. for each participant. 5.4. Weaknesses of the Business Model Listed below are some of the weaknesses of this business model: 1. Having only one source for a revenue stream. 2. The difference in importance of the value of youth ministries for the different churches, pastors, youth ministry leader and youth workers. 3. Because of the differences of the populations of youth ministries in the various churches, you are unable to set firm fee structures. 4. The sporadic nature of scheduling workshops for this particular market. 5. The time and cost associated in developing a product are unrecognized compensation. 6. The logistical issue is revolving around travel, lodging, food, and space and equipment needs. Business Competitive Strategy A company must adopt a set of competitive advantages sustainable and essential for the customers, satisfying their needs so that that they are willing to pay for the value in order to compete effectively in the global environment. Chain” (Gertner, 2013). The main aim of coming with a competitive strategy for the business is to relate the business to its environment. The relevant company’s environment is broad and it encompasses economic and social forces. However, the objective of a company’s environment is the industries or industry in which it operates (Porter 2008, p.3). The Competitive advantage that PISE will have over most of the entrepreneurs in this market is that it is not a “one size fits all” product.  PISE will design and tailor its product especially for each consumer distinct need.  The subject matter will be of their choice, the time frame, length of presentation and location will all be under the customer control.  We strive to make their experience with us not only one that addresses the particular needs of their youth and youth workers, but that will also deliver convenience and cost effectiveness.  However, realizing the weaknesses of this venture, this scripture comes to mind Matthew 6:31-33 NKJ) “Do not worry then, saying, ‘What will we eat?’ or ‘What will we drink?’ or ‘What will we wear for clothing?’ “For the Gentiles eagerly seek all these things; for your heavenly Father knows that you need all these things. “But seek first His kingdom and His righteousness, and all these things will be added to you. One of the most common errors in starting a business is to base actions on superficially attractive but practically inadequate information. Skimping on research will almost certainly result in pain later on and the fantasy will rarely survive contact with reality (Walker, 2011). 6.0. Operations Plan An office will be designated in our home for the business location.  We will purchase all the equipment needed to start such as computers, printer, office supplies, phones, etc. 7.0. Organization Plan PISE CONNECTION INC. Company will commence its operation with two people, my partner Dr. Earnest Whitley (Ph.D. in Psychology) and I (Masters of Arts Degree in Human Services). Other professionals will be hired on need basis due to inadequate resources; these include an attorney and an accountant for initial start-up. This is illustrated in the below organizational structure. 8.0. Financial Plan   Ideally, the goal is to create a mix of resources that will enable us to operate with enough cash to cover all the cash outflows without investment capital until PISE’s services produces a positive cash flow.  The plan is to keep the overhead or fixed costs, as low as possible. Since we will be operating out of the home, we will have to make sure that the monthly household budget that accounts for the income and the household expenses is adequate because maintaining the household expenses will be vital to the success of the business. Any strain on our personal budgets can cause a financial risk to the business.  It is also important to make sure our personal credit history is intact because PISE has not established a business credit history, lenders and suppliers will use our personal credit history to determine our terms of credit in the future. Estimation of Sales and Revenues Years sales forecast Year 1 2 3 Workshop Sales $18,000 $24,000 $24,000 Workshops Training Packets , & Consulting Fees   $21,600 $28,800 Total ($) $18,000 $45,600 $52,000   Pro-Forma Income Statement PISE CONNECTION, INC. (For 2014 through 2016) Revenue                                              Year 1                         Year 2                         Year 3 Gross Sales                                          18,000                         45,600                         52,000 Less sales return and allowances              0                                  0                                  0 Net Sales                                             18,000                         45, 6000                      52,000 Cost of Sales     Material costs                                 5,000                           6,000                           7,000 Gross profit (loss)                               13,000                         39,000                         45,000     Operating expenses     Selling expenses               Salaries                                     0                                   0                                  0               Advertising                               0                                   0                                  0 General/Administrative                                   Salaries & wages                         0                                  0                                  0             Utilities                                   3,600                           3,700                           3,800             Office supplies                        5,000                           6000                            7,000             Equipment maintenance          2,000                           2,000                           2,000             Total general/administrative    19,600                         19,700                        24,800                         Expenses Total Operating Expenses                   19,600                         19,700                         24,800 Net Income Return Taxes                   -6,600                          19,300                         24,800             Taxes on income                         0                                2,900                           3,030 Net Income after taxes                       -6,600                          16,400                         17,170                                              Forecast Start-Up Needs Asset Quantity Amount  Desks 2 $  400.00 Chairs 2      250.00 Phones 2     450.00 Office Supplies   5,000.00 Lab top & Projector 1 2,100.00 Computers 2 1,400.00 Printers 2  600.00 Photocopier 1 400.00 Scanner 1 400.00 Travel   4,000.00 Total             15,000   The Role of the Balance Sheet   A balance sheet shows what is owned (assets), what is owed (liabilities), and what is left (owners’ equity) (Spurga, 2004). It provides a concise snapshot of a company’s financial position. It measures the financial standing, or even the net worth or owners’ equity, of a company at a given point in time, typically at the end of a calendar or fiscal year (Balance Sheet, 2014).  The balance sheet is one of three important financial statements intended to give investors a window into companys financial condition at a specific point in time. Most companies manage their balance sheets to ensure that the capital of the business is not eroded and that any gains paid out to staff or shareholders are paid out of profits rather than capital (Hobson, 2011). “Therefore take no thought, saying, what shall we eat? Or, what shall we drink? Or, Wherewithal shall we be clothed? (For after all these things do the Gentiles seek :) for your heavenly Father knoweth that ye have need of all these things. But seek ye first the kingdom of God, and his righteousness; and all these things shall beadded unto you.” (Matthew 6:31-33 KJV). We must give our lives totally to God and seek His righteousness, then all the things that the Gentiles (those in the world) are seeking will be added to us. 9.0. The Legal Form to Be Used By the Business    The legal form of business that PISE CONNECTIN, INC will use is a C-Corporation. A corporation is a legal entity in and of it, existing only in contemplation of the law (Piper, 2010). It is chartered or registered by the state and can survive the death of the owner(s) or the owner’s separation from the business. It can be sued; it can sue, acquire and sell real property, and lend money. The owners of the corporation are its shareholders, who invest capital in the corporation in exchange for shares of ownership. Like limited partners, shareholders are not liable for the debts of the corporation and can lose only the money they have invested. According to Allen (2012), C Corporations advantages are: 1. Limited liability, as owners are liable for its debts and obligations only to the limit of their investment. 2. Ownership in a corporation is easily transferred 3. Enjoys more status and deference in business circles 4. Allows for entrances in the public equity markets Disadvantages of C-Corporations: 1. More complex to organize 2. Subject to more governmental regulation 3. Cost more to create 4. Is considered a person for tax purposes Filing myself, the Cost to Corporate will only include the cost of filing the Articles of Corporation and general business license fee totaling $300.00. Social Responsibility This is an ethical theory that states that an organization has an obligation to act or undertake activities that may of benefit to the entire society. As such, it is a duty for every business entity to perform so as to create a balance between the ecosystem and economy (Castka & Balzarova, 2008). 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