Small Start-up Business Project Management

1 The Project PERFECT White Paper Collection 01/08/12 Page 1 of 11 Small Start-up Business Project Management Eric Tse Abstract This article introduces how Business starters can use Project Management to start up their Small businesses. First we identify the minimal set of tools that is good enough for Small Business starters to use. Then we map Project Management tools to our Business Start-up process to identify opportunities we can exploit Project Management . Finally we can create or borrow tools that adhere to the process mapping. There are lots of work can be done in the future for this program, including educating the public basic Project Management concepts, introducing or creating Project Management tools to the user and ensure they develop habit of using them. Introduction Entrepreneurs and Small businesses are important to economy. This article is to determine what Project Management skills and tools suitable are optimal for Small Business starters to ramp up Business , manage operations, deliver tailored or bespoke products to customers, and manage innovation and growth.

2 We assume readers have basic knowledge of Project Management although we will ultimately hope broader audience can benefit from using lite Project Management skills. This may also be a starting point for a program introducing Project Management to Small and micro businesses, or even to the wider public. The ultimate goals for the program may be: - Introduce Project Management to the wider public, start with Small Business owners - Start-up Business users can simplify and manage their life and tasks using tools or knowledge provided - Enable Small Business owners to be more organized and systematic so as to reduce stress and anxiety - This article refers to two literature sources, one is a paper from Turner (Turner, 2011) in PMI Journal, and another is the Small Start-up Business program from a College in Ontario, Canada. The problem statement and scope of this article would be: - To what extent do Small micro Business use Project Management both in their mainline Business and to manage innovation and growth?

3 - What elements of the Project Management are important for Small micro Business ? - A Business Start-up Process The Project Perfect White Paper Collection 01/08/12 Page 2 of 11 - How Project Management fit, map, or morph into Business Start-up Process The following would not be in scope: - Details of innovation Project Management . - Lower Level Description of tools and content generated from the morph of Project Management and Business Start-up process. - Project Management ABCs - Operation Management and Project Management Morphing Strategy To develop the skillsets, knowledge, and tools, first we will define Project Management Light (PML), derived from PMBOK referencing Turner`s literature. Then we will define a Small Business Start-up Process, for this paper we use the process used by Ontario Self Employment Benefit Program. Afterwards, we will start morphing some of them (demonstrated by the orange area). There are many different ways of morphing the activities and process.

4 We will use table mapping methods commonly used in Business and system analysis to start to complete the scope of this article. Project Management Lite (PML) (Turner, 2011) Characteristics - We would expect simplified Project planning and control systems, with simplified reporting mechanisms. - We would not expect to see them adopting some of the standard methodologies. - We also expect to see people fulfilling several roles on projects, especially in smaller companies. The Project Perfect White Paper Collection 01/08/12 Page 3 of 11 - Microsized companies do not employ specialist Project managers, and so projects are managed by people with other primary roles, and Small and micro-sized companies do not tend to use the recognized tools and techniques of Project Management . - uses laissez-faire Management and egoless team structures - Use of Project Management Operations Management (This is very important but details about Project and operation Management morphing will be out of scope) Innovation and growth: (Innovation Process is too complicated to be in scope in this article.)

5 Also not every Start-up Business innovates. We will talk about Innovation Process Project Management in another article. However for the growth, we will talk about Business Start-up Process.) Lite Project Management PMLite Content (Turner, 2011) PMBOK practices PMLite Remarks Client requirements The need to define client requirements as an essential first step. Communication Management Road map or milestones High level schematic plan. to provide an overall vision of how the Project would be completed Work breakdown or activity lists Define the activities required to do the work Agile or scrum Uses laissez-faire Management and egoless team structures; also requires all the team members to be able to do all the work, so it requires homogeneous work and homogeneous teams. Responsibility assignment matrix they don't need that formality Scope and resource schedule Simple form of scope or resource schedule. Some have a simple resource schedule, with dates against their activity list.

6 Others also have a resource schedule with dates against the involvement of named resources. Team building No Formal Team building is needed. Risk and issue Management Need risk Management . The most important Project Management functionality they applied. Commercial Project Management Simple appraise the value of projects, Buy or hire, Buy-or-do it yourself, contract Management . Domain knowledge Basic domain knowledge in their work. Microsoft Project Too complicated. Perhaps Excel is good enough The Project Perfect White Paper Collection 01/08/12 Page 4 of 11 Project Office No Need Cost Management Very Simple Financial Cost, Sales and Tax Tracking. No Earned Value Analysis Quality Management Use Manage Client Requirement Integration Management No Need Life-cycle and stage gates No need Program and portfolio Management No need except for innovation. Will talk about Innovation in other paper The above table shows what elements of the Project Management are important for Small micro Business .

7 company profile After the elements of PM Lite are identified, we develop a company profile . This company profile includes the elements they will be using in the Business Start-up process that is specific to the company . company : TSE and TSE Business and Technology Consulting requirements analysis milestone planning work breakdown and activity lists responsibility assignment matrix work schedules (and checklist and Gantt charts) PM software for work scheduling and control (micro-soft Project ) PM software for resource scheduling (but not resource schedules per se) Kick off meetings Risk Management (but not issue Management ) Scope Management Cost Management Commercial Management Project Management and Business Start-up Process SO how we can tie Business Start-up Process and Project Management Together? How we are going to use Project Management techniques to manage our Business Start-up process? There are at least two dimensions I can think of in terms of mixing them two together.

8 One is Business Start-up as a Project ; another is Business Start-up Process Items and PMLite mapping. For the first one, it is to put the whole Business startup process into The Project Perfect White Paper Collection 01/08/12 Page 5 of 11 a master Project Management schedule. The second one is the for each item inside the process, identify PM concepts or items that would be useful to help executing the tasks. Some of the items can me a Project itself. Business Start-up as a Project For this example, we choose the Microsoft Project start up template as an example to illustrate how we can put Business Start-up process into a Gannt Chart, Schedule or work breakdown structure. This process has a lot of action item executable to start up the Business . Each item has duration, start date, end date, resource, dependencies etc. 1 Phase 1 - Strategic Plan 23 days 01/01 02/02 2 Self-Assessment 3 days 01/01 05/01 3 Define Business vision 1 day 01/01 01/01 Manager 4 Identify available skills, information and support 1 day 02/01 02/01 3 Advisor, Manager 5 Decide whether to proceed 1 day 05/01 05/01 4 Manager 6 Define the Opportunity 10 days 06/01 19/01 7 Research the market and competition 1 day 06/01 06/01 5 Advisor 8 Interview owners of similar businesses 5 days 07/01 13/01 7 Owners 9 Identify needed resources 2 days 14/01 15/01 8 Advisor.

9 Peers 10 Identify operating cost elements 2 days 16/01 19/01 9 Accountant 11 Evaluate Business Approach 4 days 20/01 23/01 12 Define new entity requirements 1 day 20/01 20/01 10 Manager 13 Identify on-going Business purchase opportunities 1 day 21/01 21/01 12 Manager 14 Research franchise possibilities 1 day 22/01 22/01 13 Manager 15 Summarize Business approach 1 day 23/01 23/01 14 Manager 16 Evaluate Potential Risks and Rewards 7 days 21/01 29/01 17 Assess market size and stability 2 days 21/01 22/01 12 Advisor 18 Estimate the competition 1 day 23/01 23/01 17 Advisor 19 Assess needed resource availability 2 days 26/01 27/01 18 Advisor 20 Evaluate realistic initial market share 1 day 28/01 28/01 19 Advisor 21 Determine financial requirements 2 days 26/01 27/01 15 Advisor 22 Review personal suitability 1 day 28/01 28/01 21 Manager 23 Evaluate initial profitability 1 day 29/01 29/01 22 Manager 24 Review and modify the strategic plan 2 days 30/01 02/02 23 25 Confirm decision to proceed 0 days 02/02 02/02 24 26 Phase 2 - Define the Business Opportunity 27 days 03/02 10/03 27 Define the Market 13 days 03/02 19/02 28 Access available information 1 day 03/02 03/02 25 Advisor 29 Create market analysis plan 2 days 04/02 05/02 28 Advisor 30 Implement market analysis plan 5 days 06/02 12/02 29 Advisor 31 Identify competition 2 days 13/02 16/02 30 Advisor 32 Summarize the market 2 days 17/02 18/02 31 Advisor 33 Identify target market niche 1 day 19/02 19/02 32 Advisor The Project Perfect White Paper Collection 01/08/12 Page 6 of 11 34 Identify Needed Materials and Supplies 7 days 20/02 01/03 35 Select a Business approach (from "Evaluate Business Approach" above)

10 2 days 20/02 23/02 28SS, 33 Manager 36 Identify Management staff resources 1 day 24/02 24/02 35 Manager 37 Identify staffing requirements 1 day 25/02 25/02 36 Manager 38 Identify needed raw materials 1 day 26/02 26/02 37 Manager 39 Identify needed utilities 1 day 27/02 27/02 38 Manager 40 Summarize operating expenses and financial projections 1 day 01/03 01/03 39 Manager 41 Evaluate Potential Risks and Rewards 6 days 02/03 09/03 42 Assess market size and stability 2 days 02/03 03/03 40 Manager 43 Assess needed resources availability 2 days 04/03 05/03 42 Manager 44 Forecast financial returns 2 days 08/03 09/03 43 Accountant 45 Review and modify the Business opportunity 1 day 10/03 10/03 44 46 Confirm decision to proceed 0 days 10/03 10/03 45 Advisor, Peers, Lawyer, Accountant 47 Phase 3 - Plan for Action 21 days 11/03 08/04 48 Develop Detailed 5-Year Business Plan 21 days 11/03 08/04 49 Describe the vision and opportunity 1 day 11/03 11/03 46 Advisor 50 List assumptions 1 day 12/03 12/03 49 Advisor 51 Describe the market 1 day 15/03 15/03 50 Advisor 52 Describe the new Business 1 day 16/03 16/03 51 Advisor 53 Describe strengths, weaknesses, assets and threats 1 day 17/03 17/03 52 Advisor 54 Estimate sales volume during startup period 1 day 18/03 18/03 53 Advisor, Accountant 55 Forecast operating costs 1 day 19/03 19/03 54 Advisor.