Strategic Planning Tips

What If All Small Companies Did Strategic Planning

2009-03-03T20:00:00.003-08:00

Writen by Lance Winslow

What if all businesses even small companies did better strategic planning? What if they had better tax advice? What if the tax laws were simplified enough that they could figure them out without paying an accountant or an attorney? What if they could save the money and do it themselves and use that capital to better serving the clientele, new customers and expanding to meet more demand? What if City Hall, code enforcement and all the array of inspectors were simplified on one form with one inspector? What if the small business person knew what they were getting into before they were hammered with incessant rules and regulation and stuff they never heard of, things which end up costing them thousands and thousands of dollars? What if all businesses even the small ones had business plans of all aspects of their future business before it started? What if small businesses could see into the future and know of law changes, which could threaten their very livelihood? What if small businesses knew in advance what type of lawsuits might be filed against them by the parasite scoundrels of the law; lawyers? What if all small companies did strategic planning? Do you know where you are going and how you will get there? Think on this.

Lance Winslow

How To Get More Business During The Winter Months

2009-03-03T20:00:00.001-08:00

Writen by John Satterfield

Business seems to drop, slow or even stop during the winter months. As tourist traffic slows or stops during the winter months so does the incomes of many local business owners. The first step in overcoming this problem begins in your brain (don't they all?)

To begin with, don't see these slow months as a dead time. See them for what they are , a time to build customer relationships and prepare for the busy season to come. There are a few things that you might try to cushion the slow season. Below you'll find a list of strategies that just might work for your business.

1. Hold a class or Informational seminar-- Invite all your customers to come in for an educational session. Make sure that you have some nice deals for them on related items so that they can spend some money with you. It may well be worth considering doing the class for free. (gasp!) Some of the types of things that come to mind are Fishing, crafts, investments, flower arranging, interior decorating, travel tips, Information about certain surgerys, back pain relief, parenting, writing workshops and on and on

2. Work up package deals that will be available during the "on" season but sell them now=get money now. Remember that money now is always worth more than money later! Here's a great idea for a resort. Pay us $250 now and we'll give you a two night stay and a boat rental (with 4 hours guided) and a picnic lunch. Just make your reservation any time in the year 2004. I've seen this exact package sell over 20%! If you offered this to 1000 prospects and sold 200 You would gross $50,000! Could $50,000 now tide you over for a few weeks?

3. Tune up your advertising. Start using benefits and offers to get up to 500% more return on investment from your advertising. I'll show you how for free if you call me. 870 213-7032

4. Learn to use word of mouth to up your sales. Call me.

5. Send press releases

6. Run a contest

7. Distribute Coupons

8. Use give aways to generate traffic and be prepared to sell. (give aways could consist of informational materials)

9. Pre-promote an "On" season special or event (ok this one is not going to get you winter dollars but it will be a productive use of your time

10. Don't forget the locals! Find something they'd like to invest in. This is the Thursday before Valentine's Day and I have not seen any resorts or hotels doing the "Romantic Getaway" deal

There are dozens of tips and strategies that will increase your winter dollars. You just have to implement some of them to profit. OH! Want to know an awesome secret? You can do the above all year long! Cool. Very cool.

Any Questions?

John M. Satterfield
870-213-7032
www.hypnosisucanuse.com
Marketing Coordinator Long Term Care White River Health System and Small Business Consultant

About The Author

John M. Satterfield C.Ht is a certified hypnotherapist and a corporate marketing director. He lives in Mountain View Arkansas wife is Mary Gale, Cocker Spaniel is Sir Lancelot

Hypnosispower@yahoo.com

How To Prepare A Business Plan

2009-03-02T20:00:00.003-08:00

Writen by Bill Darken

Firstly, let's define a small business plan. A small business plan is a summary of how a business owner, manager, or entrepreneur intends to organize an entrepreneurial endeavor and implement activities necessary and sufficient for the business to succeed. It is a written explanation of its business model.

Business plans are used internally by management and are also used to convince outsiders such as banks or venture capitalists to invest money into a small business.

Business plans often quickly become out of date. One common belief within business circles is that the actual plan may have little value, but what is more important is the process of planning, through which the manager gains a greater understanding of the business and of the options available.

Here's An Example Of A Business Plan

Most business plans can be seen as a collection of 'sub plans' including a marketing plan, financial plan, production plan, and human resource plan.

The business plan has many forms. There is a format that is typical:

* Executive summary

- explains the basic business model

- gives rationale for the strategy

* Background

- gives short history of company (unless it is a new company)

- provides background details such as:

age of company

number of employees

annual sales figures

location of facilities

form of ownership including

- sole proprietor

- partnership

- entrepreneurial startup

- private corporate startup

- publicly traded corporation

- limited liability company

- public utility

- Non Profit Organization

- background of key personnel including

owners

senior managers

head scientists and researchers

* Marketing & Sales

- the macro environment

- the competitive environment

- the industry

- the customers priorities

- product strategy

- pricing strategy

- promotion strategy

- distribution strategy

* Production and Manufacturing/Operations

- describe all processes

- production facility requirements - size, layout, capacity, location

- inventory requirements - raw materials inventory, finished goods inventory, warehouse space requirements

- equipment requirements

- supply chain requirements

- fixed cost allocation

* Finance

- source of funds

- existing loans and liabilities

- projected sales and costs

- break even analysis

- expected return

- monthly pro-forma cash flow statement

* Human Resources

- assign responsibilities

- training required

- skills required

- union issues

- compensation

- skills availability

- new hiring

Other specialized sections such as product research and development, legal strategies, marketing research, or inter-company collaborations, are added to deal with unique features or characteristics of the business or its markets.

This article has been supplied courtesy of Bill Darken. Bill often writes and works closely with Small Business Answers who can help with more information on small business plans. If the link is not active, you can paste this one into your browser - small-business-answers.com/ This site is dedicated to supplying the latest news and articles on small business to assist people progressing and to help with information and news. You can also look for small business loans information at small business finance. If this previous link is not working you can paste this link into your browser, loans-only.com/

What Is Your Value Proposition

2009-03-02T20:00:00.001-08:00

Writen by Peter Wright

Value proposition is what an organization does, that will cause their clients to realize tangible benefits through the use of their product or service. Value proposition is more than just the service you provide; or how you sell, service, or distribute it. It's how you string all those components together, to best serve your clients and deliver them real value. Value proposition can be both a description of how your organization adds value today, and also a concrete statement of your vision for the future.

Without a clearly articulated, well understood, statement of value proposition, it's impossible for you to describe a compelling vision and strategy for your company, or create effective segmentation, or distribution strategies. And, if you can't tell your employees how your company adds value for clients, how can employees be expected to add value in everything they do?

Understanding value proposition is not just an exercise for profit oriented companies. Many health care organizations for example have the burden of regulation, and complex value chains that are more difficult to describe. It's here that many organizations struggle, because managers often perceive that anything they are doing now, falls squarely within their value proposition.

Value proposition is much more than an elevator pitch or a slogan, but it is important that you can boil your value proposition down to a concise and compelling statement. It's often when companies try to articulate their statement of value proposition in a way that others can understand it, that the tough questions begin to surface. www.planningbootcamp.com

During years of developing business plans with North America's largest companies, Peter Wright has created many tools, models, and practices that are highly applicable to strategic planning and business planning that professionals can offer clients, and employers. Peter used his experience to develop The Business Planning Boot Camp series.

Inventory Accuracy In 60 Days

2009-03-01T20:00:00.001-08:00

Writen by Paul Deis

INTRODUCTION

Do you have inventory accuracy problems? Typical symptoms:

Lots of inventory errors
Surprise backorders, unplanned shortages, "lost material"
Nobody believes the records-- numerous calls to "check" on availability
Air freight bill exceeds the national debt
Nasty financial reporting "surprises"
Lack of consensus on importance of accuracy
Lack of consensus on how to measure it
Inability to reconcile inventories, cycle counts
Error causes largely unknown
Weak/no company tradition of data accuracy
New systems/software implementation causing more confusion

Solution recommendations are presented as follows

ORGANIZE PROJECT

Results are usually best when there is a bit of a crisis atmosphere established. Business as usual won't usually serve to get serious inventory accuracy problems fixed within two months. Sometimes a humbling blow, such as losing millions in an inventory "write-down", or an unfavorable "write-up" by a customer, is helpful to shatter the status quo and energize an organization to begin work in earnest on a solution. Top level executive action works best to motivate and mobilize people. At a minimum, perception of a costly problem is needed, with some realization of a need to correct it.

This article is also available on our website: PROACTION - Generating Best Practices. It is an excerpt of a paper originally written by George Miller, Founder of PROACTION. It has been modified and updated by Paul Deis, PROACTION CEO.

Try to tie company goals and objectives to project objectives, to help ensure that people "buy-in" to the project and will be measured and rewarded on the results.

Once the initial goals are attained, don't just declare victory and go home. Set up a lower key ongoing maintenance effort to ensure that the problem stays fixed and that further improvements are made.

An Executive Sponsor is needed, someone with the clout to keep resources and attention focused on the problem until completion. Results are usually directly proportional to the strength and commitment of the executive sponsor. Sometimes it's not possible to get a sponsor until a case is made that there's a problem.

A Project Leader and Multi-Disciplinary Team is required, preferably from Operations, Materials, Finance, Distribution and possibly, Process and Design Engineering (depending upon the problems identified). In a large organization, a full time project leader may be needed. People will be needed for inventory verification, cycle counting and reconciliation. The amount of manpower needed is dependent upon organization size, complexity and magnitude of the problem. For example, one 500,000 sq. ft. process plant with about 4000 items and 30+% inventory accuracy needed a full time coordinator, four full time cycle counters and two part timers for six months, tapering off after that. Often, consultants and corporate auditors participate to make projects more successful.

A Project Plan is needed, incorporating recommendations from this paper and other company-specific activities. This plan, along with a running list of accuracy related issues and actions, should be used to drive the project and focus efforts on activities needed to attain accuracy goals. Issues should be identified, put on a master issues list, assigned to appropriate personnel to solve, then discussed and tracked at every weekly meeting for the duration of the initial improvement project.

The plan should contain specific activities, responsibilities and dates. It needs to be followed and managed competently. Unless carefully managed, a substantial amount of project time will be spent trying to figure out what the problems are, and getting resources assigned to them.

Choose Your Battles

Realize that there are limited resources available, and that these cost money, so prioritize by tackling issues offering the best payback and those that can be won.

Actual examples:

For one company, it was very hard to keep track of color concentrates, since they were ladled out of barrels, were kept out on the floor, and didn't cost all that much anyway. So, these and other similar items were placed on "two bin" order control and expensed, eliminating a whole class of inventory record problems with little more than a stroke of a pen.

Another firm had three storerooms. The first one contained fabrics for airline seats and was very well organized and well run, so minimal effort was expended to improve it. The second one was a poorly controlled raw material storeroom with a short-timer supervisor about to retire. Material lead times were only a few days, so the effect of errors was less serious. We elected to wait out his retirement, which was only a couple of months away. The third storeroom contained purchased parts and specialty fabrications. Lead times were long, costs were high and the consequences of errors were serious, so we elected to initially focus on this area. To narrow scope even further, we initially concentrated only on items needed within the lead time horizon and ignored obsolete and excess materials.

The VP, Finance in still another manufacturing company agreed to waive physical inventories for areas demonstrating that accuracy goals were being met, freeing up resources for more productive purposes.

In general, controlled storerooms are the easiest to improve, since they are often physically restricted areas, have supervision more oriented to accuracy concepts, transactions less subject to process-related errors and they can be more easily counted. Then attack work-in-process areas, which are generally more challenging.

One team uncovered dozens of accuracy issues. These were prioritized so that problem-solving resources could be focused on the best payback items with the greatest chances of resolution.

A few companies we worked with have gotten almost immediate payback by conducting location audits. Simply check each location and compare it to your records. Physical locations not in the records may be exciting windfalls. The opposite case is cause for a corrective cycle count adjustment. This approach requires far less resources than a physical count inventory.

Most companies observed weren't able to reconcile all errors, especially in the beginning. They were advised not to even try. It's like attempting to bail out the ocean, because errors were being made faster than inventory balances could be corrected, let alone diagnosed and reconciled. So, they focused on eliminating the principal CAUSES of errors initially. Every time a cause is identified and corrected, it may likely eliminate dozens, hundreds or even thousands of future potential errors. This concept may be difficult to sell to some accounting personnel, who have been conditioned to balance every debit and credit to the penny. Choose your battles!

DEFINE INVENTORY ACCURACY

What It Isn't

We have often been told by representatives of various companies that their inventory accuracy was high, even "world class," 95, 98 or even 99+%, when in fact, there were surprise backorders, unplanned material shortages and unexplained excess inventories. When asked about inventory accuracy, shop floor and stores personnel would just smile and tell us their inventory horror stories.

So why does this happen? There are different ways of measuring it. For example:

One firm thought their inventory records were outstanding because they were accurate within $20,000 for a $6MM inventory, or 99.7% accurate, they boasted. Well, it turned out that this was merely an arithmetic sum of the financial errors and that the absolute value of the individual errors was actually $900,000. Even this sounded like 85% accuracy.

But, operations people know that products are built with specific components and that customers are shipped specific products or services, not dollars. When other factors like posting cut-offs, location errors and part number errors were considered, it was calculated that accuracy was actually only 66%!

Inventory accuracy is the probability of finding the right items in the right location and quantity that the books say are there. 66% accuracy means that 34% of items surveyed had quantities, locations or part numbers significantly differing from "book" records. Looking at it another way, for a ten item order, there would be only a 15% probability of finding all parts corresponding to what the books said was there. Is that any way to run a business? By the way, it's sad to say that 66% is about average.

Another reason for the accuracy credibility gap is that people delude themselves, occasionally even lie. The author once had to fire someone who was falsifying counts. The sad news came out of a routine audit designed to check the effectiveness of the cycle counting system. More often, people just rationalize that things are much better than they really are. Example:

What It Is

95% accuracy is said to be the minimum acceptable level to run a formal system. Our experience is that 95% is a lot better than the average company, but it's nowhere near what is required to run a world class operation, where 98 or 99+% is more appropriate. Going from 66% to 90% is easier than going from 90 to 95%, which is easier than going from 95 to 97%. When a company sets a goal of 95, 98 or 99+% inventory accuracy, what should that mean? We usually recommend the following accuracy criteria, subject to company special requirements:

Quantity of book to reconciled physical inventory to be accurate, for example, within 1% for "A" items, 3% for "B" items and 5% for "C" items. These targets should reflect relative value of the material and the limits of counting process capabilities. Most firms compare physical to reconciled book quantity error vs. book quantity to measure accuracy, for convenience of computations. Sometimes we recommend comparing the calculated error to the weekly or monthly usage quantity, because it's statistically more valid, especially in a high-volume, low inventory environment.

Item identification must be correct, or it counts for two errors, since if it isn't what the records stated it was, then it must be something else. Unless inventory people are very thorough and knowledgeable about item identities, these errors often go unrecognized until detected by an inspector, production operator, or even a customer. We recommend item verification before storage or movement to the next process station. It is helpful to post item specifications and photos and train employees in their use to reduce such errors.

Item must be physically in the exact "book" location or it is considered an error. If you can't find it, that's even worse than not having it at all, because it cost money and it's taking up valuable space. Make sure you define item locations neither too detailed nor too general. If too detailed, it will be burdensome to maintain the records and control material.

Timeliness of records - Must be posted by some deadline, such as immediately when moved, within an hour, or by the end of the shift when transaction was physically executed. This greatly improves the timeliness of information and improves "cut-off" control for reports and reconciliations.

Accuracy percentage = (number of items sampled meeting above criteria/all items sampled) x 100. We sometimes convert performance measures to error parts per million (PPM), to make measurements more compatible with companies' quality systems.

MEASURE ACTUAL PERFORMANCE

Why It's Difficult

This too, is more difficult than it sounds. Many companies are simply unable to reconcile book to physical inventory because they:

Have multiple, incompatible inventory systems.
Can't master the timing "cutoffs" for count reconciliation.
Poorly define and enforce material and transaction flow procedures and policies.
Don't have people assigned to and/or schooled in inventory records reconciliation.

Initial Survey

You'll need an initial survey to assess the level of accuracy. This is recommended, even if there is an ongoing system in place, to help verify how well it is working. To assess the level of inventory accuracy, pick a representative and statistically valid sample of items, crossing different product lines, processes and areas. Consult an expert in QC or SPC (Statistical Process Control) if not sure how to do this.

Make sure you have agreement on what is to be measured and how. Get agreement on the measurement criteria (see section II, above). If there is more than one inventory system, agree on which one(s) you will be reconciling to. Be aware of how these systems are updated and enlist the cooperation of those involved in their operation and maintenance.

Better results will be obtained if all transactions are posted before counting, especially if the inventory system is in poor working order. This helps eliminate a very common source of errors, "cut-off" timing. In particular, watch out for items in staging areas, QC, Shipping, Scrap, Bond, etc. It's best to do the survey while operations are shut down, since it further reduces the chance of transaction cut-off problems.

For improved objectivity, it is recommended that people who are removed from "ownership" of the current system be used to audit or even supervise this survey. Bias may be inadvertently or intentionally introduced otherwise.

The survey should be used to help establish "baseline" accuracy by area- for instance- "Store Room #1, "Shipping Area", QC Hold #3", "Disk Assembly," and "Total." Publish the results after careful verification, then discuss and act on them. The initial survey often helps to establish the dialogue that propels successful projects. It is possible that some diagnostic work can be done during the survey, but in general, we have found that diagnostics are problematic at best for a poor inventory system without baseline figures, good procedures in place and regular cycle counts.

FIX THE SYSTEM

Institute Improved Policies and Procedures

Procedures are often in need of a major overhaul. Many are poorly documented, unworkable or cumbersome. The project diagnostics, team meetings, cycle count results, conference room pilot and employee suggestions can all funnel information to the people who revise procedures.

Identify every single transaction and procedure potentially affecting inventory accuracy. Review and, if necessary, enhance, simplify and document them, then thoroughly train all applicable personnel in their use. Keep simple concise procedures available for employees' ready access. Have employees practice/drill in procedure use. An inventory system test or "demo" database is a good tool to practice with.

New procedures/changes should be reviewed with users in advance, thoroughly tested and documented prior to implementation.

Procedures should cover all aspects of inventory transactions: receiving, inspection, stores, issues to floor stock, production, substitutions, transfers, scrap, rework, return to vendor, completions to stock, shipments.

Set Up Basic Inventory Movement Structure and Controls

Most companies lack a common understanding on how inventory transactions- material and paperwork - should flow. One of the first evident symptoms of this is an almost total inability to reconcile cycle counts of active items, due to transaction "cut-off" problems attributable to unpublished/unenforced transaction document flow times. Forget about a full cycle counting program until this is corrected. First, establish, implement and enforce:

Inventory "transaction flow map" showing all work centers/cells/stores areas, material and paper flows, transaction types and account numbers, so that people will know what should happen. When people see a graphical depiction of system flow and have it explained to them, it often helps them to decode the mysteries of a system.

Flow times - How long it should take to receive a part, move it to stores, issue it, move it between operations. Publish these flow times, post them, and get people accustomed to working with them. Highlight transactions missing flow time targets.

Cutoff times - How long it should take to post a transaction after it physically occurred. Publish and highlight similar to the above item.

Drop points - Where material and transaction documents should be placed. Mark these areas plainly to reduce confusion. Painted lines on the floor, signs, sometimes even fences, may be needed to get the point across.

Logging and batch controls, especially for key "gateway" transactions such as receiving and shipping. Comparing daily posted transactions to the logs often helps detect missing or erroneous data. Logs can also be useful in reconstructing "crashed" systems.

Write Cycle Counting Procedure

Cycle counting should be the principal ongoing performance measurement, diagnostic and problem-solving approach, basically "SPC for inventory control." It is a procedure to help determine if the other inventory procedures are working. The procedure needs to fully reflect the overall systems flow and timing. For instance, if inventories are updated daily by MIS, it may be necessary to adjust for unposted transactions prior to completing reconciliation.

In a high-volume repetitive production in a backflush environment, It is necessary to log production occurring between backflushes and to know precisely when these were performed. In addition, knowing the whereabouts of discrepant material routed for inspection and alternate processing, but still unposted, is vital, since counts of material in the area may omit it.

Consignment inventory rules sometimes need revision to facilitate cycle count reconciliation as well.

Run a Control Group

Once the program is underway, team members often want to quickly start an ambitious, large scale program of cycle counting. Some people come running out of cycle counting seminars, flushed with enthusiasm, wanting to use their new tools immediately to vanquish the demons of inventory error. In general, don't. Why? Because in most cases the infrastructure isn't yet in place to support an effective cycle counting system. Make sure it is in place BEFORE starting regular cycle counting, or you're in for some big disappointments and loss of credibility.

In the meantime, use the initial survey population as a "control group" to help regularly and frequently assess the propagation of errors. Count and reconcile these items over and over again until you start to get the hang of what's wrong. Chances are, this will be a very tough chore initially, because of the many things wrong with the system. Don't be surprised if you can't identify many item error causes with certainty in the initial period. As you count them more frequently, there will be shorter intervals between counts, increasing the likelihood that error causes can be isolated. As the basic controls identified above are established, they will eliminate many errors and make it simpler to identify those that remain. Make sure that problems are posted to the issues list, prioritized, assigned for resolution, discussed at meetings, completed, documented and resolved.

At some point, when the team feels that they have basic controls in place and have mastered control group diagnostics, they can turn the cycle counts loose on a larger scale.

When the control group is running in the mid 90% accuracy range, it's time to turn on large scale cycle counting. Companies trying to turn it on too early may get swamped by massive numbers of irreconcilable errors. Some even compound the errors when they start posting corrections before they've got reconciliation/posting procedures working satisfactorily.

Most error causes can be found and resolved during the initial control group period.

Make Physical Changes

Paint lines on floors to indicate drop points and department boundaries. Record tare weights on all containers used in weigh counting. Use bar code or other accurate, efficient data acquisition methods. Deploy counting scales where appropriate. Isolate obsolete inventory for final dispositioning. Assign designated drop points for discrepant or "hold" status material. Ensure that there is adequate and appropriate material handling and storage equipment. Sometimes something as simple as lines on the floor, a fence or a gate can make a significant difference. Consider a move to a process-related flow, which may greatly simplify material/inventory control.

A comprehensive facility location system is essential for success in locating material quickly and efficiently when it is needed All inbound and in-transit material should be directed to locations, or they should be assigned upon arrival. If the location system is simple enough, materials might be automatically routed. Reduce the number of possibilities to make mistakes. The location codes should be plainly marked all around the facility, so that there is no confusion about the location. Isolate/purge excessive, obsolete and damaged inventory.

CONCLUSIONS

As with most major change efforts, inventory accuracy needs strong, continuing management support to change the culture and practices.

Very little happens in some companies until top management makes poor results unacceptably uncomfortable to those failing to deliver.
Even after that, things sometimes don't improve until meaningful performance measurements and improvement mechanisms are implemented.
Strong project leadership is the next most important factor, along with a sound approach and an implementation plan.

The price of continued inventory accuracy success is eternal vigilance. When programs lose "mindshare," results often quickly deteriorate.
Inventory accuracy is a permanent state of mind, not a quickie, one-time project. Periodic backsliding needs constant attention. This is one area where zealots and dictators are needed!

Successful inventory accuracy efforts often have five phases:

1. Realization that there is a problem
2. Agreement on a solution approach
3. Problem-solving phase
4. Records correctionv 5. Ongoing cycle counting/maintenance

Inventory accuracy doesn't really improve by counting things. It only improves when basic systems, procedures and training improve.
Identifying issues and resolving them so that they never occur again is the key to achieving accuracy goals.
Leadership and peoples' attitudes are the two most important factors for success.

There are some significant differences in attaining inventory accuracy in non-discrete, process, repetitive, cellular and project-oriented enterprises.

Learn them well and adapt to their needs. Realize also that most companies are a mix of different environments, so mix approaches if warranted.

ABOUT THE AUTHORS Paul Deis, CFPIM, is CEO, PROACTION. He brings over 25 years of consulting and senior executive experience to his work, including detailed work with nearly 60 companies. Prior to acquiring PROACTION, Paul's experience includes running a small ERP software company, leading other consulting businesses, prior work with PROACTION, Manager at Deloitte & Touche, VP Manufacturing at Raypak, Inc., where he was very successful with an early Lean management initiative. Our website: PROACTION Generating Best Practices.

George J. Miller, CFPIM, is Founder of PROACTION. Prior to selling the company to Paul Deis, George had worked with dozens of companies in assignments involving productivity, quality and service improvement, business systems, change management, acquisitions, and others.

Change Checkpoints And Improvement Milestones

2009-02-28T20:00:00.001-08:00

Writen by Jim Clemmer

"When you arrive at a fork in the road take it." Yogi Berra, major league baseball Hall of Fame player and coach

Many paths lead to higher performance. The high performance route is individual and unique for every person, team, and organization. There is no one or best way. What works for me, or anyone else, may not work for you. We can't follow someone else's path. We need to blaze our own trail.

While no route is exactly the same, successful organization change and improvement efforts cover similar territory. Highly successful organizations have passed most of these change checkpoints and improvement milestones as they move toward ever-higher performance levels:

__ Clear and compelling reasons for changing and improving

__ Balanced focus on people, management, and technology

__ Strong ethic of self-determination

__ Comprehensive and balanced improvement model

__ Clear and compelling picture of our preferred future

__ Three or four core values

__ Definitive statement of purpose, business we're in, or why we exist

__ Rich and continuous customer/partner performance gap data

__ Intense exploring and searching for new markets and customers

__ High levels of experimentation, pilots, and clumsy tries

__ Robust process for disseminating team and organization learning

__ Three to four strategic imperatives for each annual improvement cycle

__ Direct links between all improvement activities and strategic imperatives

__ Comprehensive and balanced improvement plan

__ Improvement planning structure, process, and discipline

__ Well designed, proven approach to process management

__ Clarity on the preferred types and focus of all teams

__ Well trained team leaders and members

__ Intense levels of technical, management, and leadership skill development

__ Simple customer/partner, innovation, capabilities, improvement, and financial measurements

__ Active feedback loops that foster learning and improvement

__ Flat, decentralized, and team-based organization structure

__ Systems that serve and support customers and partners

__ Extensive and continuous education programs

__ Effective communication strategies, systems, and practices

__ Partner-designed reward and recognition programs within a vibrant appreciation culture

__ Strong development of change champions

__ Support for local initiatives

__ Annual progress reviews and improvement assessments

__ Frequent celebrations of major breakthroughs and small wins

__ Annual refocus and planning for the next year's improvement cycle

Management teams can use this list in a variety of ways. It could be a simple checklist for the development of improvement strategies and plan. They might have everyone on the team rate how well the organization and/or team is doing in each area now. Or they might have everyone rate the improvement urgency of each of these 31 areas. Another possibility is to have everyone do both rating exercises to provide performance gap data.

Jim Clemmer is a bestselling author and internationally acclaimed keynote speaker, workshop/retreat leader, and management team developer on leadership, change, customer focus, culture, teams, and personal growth. During the last 25 years he has delivered over two thousand customized keynote presentations, workshops, and retreats. Jim's five international bestselling books include The VIP Strategy, Firing on All Cylinders, Pathways to Performance, Growing the Distance, and The Leader's Digest. His web site is http://www.clemmer.net/articles.

Your Business Will It Have A Happy Ending

2009-02-27T20:00:00.001-08:00

Writen by Brent Dees

"Begin with the end in mind," says Stephen Covey in his book Seven Habits of Successful Living. Those who have created a successful business know it does not happen without planning, hard work, and a little luck. Yet most have no plans for leaving their business, ever.

Entrepreneurs are optimists, but all of us will stop work one day. The truth is that most business relationships do not have a happy ending. The question is: Will it happen as I want or will it just happen?

Research in the UK indicates that 75 percent of small to medium-sized businesses have no exit strategy. In Canada, 92 percent of entrepreneurs say it is a good idea to have an exit strategy, but only 44 percent actually have one. In the US, more than 20 percent of small industrial business owners had not even thought about exiting their businesses. Even professionals like physicians, dentists, and veterinarians are ill prepared for exiting their practices. A survey of this group indicated that 96 percent believed that poor planning left them unable to exit their businesses on their own schedule.

Life shows us that we have to depend on ourselves. Yet we continue to believe someone else will someday take care of us. We will live on Social Security and income from the business that we created. The idea that your business will strive on to provide you income after you are no longer there is to believe that you have money in a Social Security account. Your company will not work for you after you are gone and there is no money in your account with Social Security. Still, we believe. It is time to look at reality.

You will leave your business in one of four ways. I call it the "The Four Ds of Leaving:" death, disability, divorce and departing. To have a successful business, you must plan for all Four Ds.

For the individual each one of the Four Ds has special demands on family, income, taxes and transfer of control of assets. The concern of the business is different. Your business is a separate entity and your concerns for family and income will conflict with the business desire to continue. The solution to the problem is mutually fair agreements and enough money.

Fair agreements that take in the concerns of all parties negotiated at the beginning of a business relationship will allow the participants to handle transitions when relationships change. And relationships will change. The agreements, commonly called buy/sell agreements, are used to handle the Four Ds. Unfortunately, many buy/sell agreements only address death at the urging of a life insurance agent. At the meeting, you arbitrarily decide how much insurance you can afford and how much your company is worth, when in fact you do not know.

Death is not as likely to end the business relationship as disability. If the person is important to the business, the financial strain is felt as keenly by the business as by the family who depended on the income. If the business is faced with choosing between survival or paying the disabled partner, it will survive.

You can imagine the torn feelings if a disability occurs, but what if the partners cannot get along? How do we split a partnership without financially ruining each other? It may be complicated by many personalities, some may not even be a part of the dispute, yet may be affected financially.

You may all be happy working together, but your partner or you may decide to leave for another opportunity or simply to take life easier. Who is going to do the work? What is owed the leaving partner? Where is the money coming from?

A number of questions cannot be handled in this article, but there are certain things that must be done: - The business needs to be incorporated into a formal relationship that legally recognizes that you and your business are separate entities - Devise a method determining the value of the corporation that can be done at least annually and will qualify under IRS standards - Develop an employee benefit plan that will assist with the departure of each partner in case of death, disability, or retirement - Finally, if we cannot get along or simply want to leave, who gets the company and who gets paid off and in what manner? If you think these decisions are hard now, try to make them in the heat of the moment. You have to think as if you are the one who wants to leave as well as the one who wants to stay. It is not easy.

The "Great American Dream" is to create a business of your own; to bring it to life and make it successful, financially. A truly successful business is one that makes you financially independent. How you leave will determine your financial success and that of your family. Just as building a successful business takes planning, hard work, and a little luck, so does leaving it.

Brent Dees, CFP, CSA is president of Brent Dees Financial Planning, http://www.brentdees.com, and a coach to small business owners, teaching the Focus Four system of personal and business goal-setting.

Going Public The Disadvantages

2009-02-26T20:00:00.001-08:00

Writen by Joel Arberman

While going public is often touted as a cure-all, surefire way to gain funds for a company, it's not without its drawbacks. If a company is not in a good position to go public, the decision may actually hurt the corporation more than it helps. Even as money flows in from the offering, the costs of setting up and maintaining a public corporation are high, and should be taken into consideration before such a drastic step is taken.

Even before a corporation actually goes public, the costs are high. It's not uncommon for a company to spend a year beforehand just to get the company in shape and gather necessary documents. Day-to-day activities become difficult as employees struggle to perform preparation work and their normal duties. Since investors want to see a company in excellent financial health, every aspect of the corporation must be examined in advance. If a company decides to go public and the offering is unsuccessful, it loses legal and underwriting expenses in addition to the lost capital.

For many business owners, the biggest costs of going public are personal losses. Privacy vanishes in a flurry of disclosure requirements, allowing investors, competition, and the general public to peer into previously confidential details of the company. Cost of sales, net income, major customers, and management salaries become available to anyone who cares to look. In some cases, these disclosures could give a substantial competitive advantage to competitors, especially those that haven't yet taken the step of going public.

Those disclosures can also mean huge expenses after a company decides to go public. Quarterly and annual SEC filings are required, and regular tax preparation becomes more complicated than before. Additional legal and accounting staff may be necessary to keep up.

When a company decides to go public, decision-making privileges are quick to go. Instead of making instinctual, unilateral decisions, shareholders must be considered and it may be necessary to consult with the board of directors. The kind of decision-making that made the company successful can give way to actions borne out the desire to minimize immediate risk and maximize shareholder revenue. Unhappy shareholders can drive down the company's value, damaging employee morale, personal wealth, and company reputation.

If insiders of a company fail to hold onto a majority of the corporation's shares, the loss of control can be even greater. While this can be mitigated by limiting the number of shares made available, it's a costly option to a company that is attempting to raise money. Some corporations going public prefer to offer voting-restricted shares. Such restrictions reduce raised capital in a more subtle way. Investors pay less for shares with fewer privileges, so the total funds raised are lower, even though a large number of shares is being offered.

Despite the drawbacks, many corporations find that going public is the most effective way to expand a business quickly without the use of traditional debt financing. For those that have carefully considered the positives and negatives, the transition can be smooth and prosperous for everyone involved.

Joel Arberman is the Managing Member of Public Financial Services, LLC. We help private companies through the process of becoming publicly traded via an initial public offering (ipo) or direct public offering. Learn more at Public Financial Services.

Mobile Car Wash And Auto Detailing Manager Training Program Case Study

2009-02-25T20:00:00.002-08:00

Writen by Lance Winslow

When setting up a mobile car wash business or an onsite mobile automotive detailing service business, you must plan for the future when you will be running multiple vehicles. You must also have in place a program to monitor the progress of your training so you can constantly be adding vehicles to keep up with the customer demands. I recommend that you use either profit sharing managers for each unit plus salary or hire independent owner operators as independent contractors.

As you design this system you must consider your objectives such as, the need to;

1.) Train operator to run truck unsupervised

2.) Train operator in basic trouble-shooting

3.) Show operator how to increase productivity and profit by doing it our way

4.) Instill a sense of pride in operator

As well as making especially sure to properly evaluate operator's administrative and computer knowledge, then help them discover missing information, which they are lacking, no sense in trying to teach someone word processing if they are a computer wiz or the duties of a middle manager if they are coming from a large corporation and either were a middle manager or were an area manager for a group of middle managers in their previous job.

Next you must establish a set of goals for your training procedures. Here are a set of goals we used and you may wish to review these goals to see if they fit your altered business model and in doing so come up with your best set of goals for your mobile car wash or auto detailing company.

GOALS:

"We will train every owner/operator, manager or franchisee until they are efficient in operating their unit(s) unsupervised. We will train a team member until they are ready for action (up to three full training sessions) unless they drop out or fail. We will not pass an operator until we are confident that they can perform all necessary duties required to exceed the minimum original pro forma of $5,500 net income per month with minimal assistance from corporate. Sufficient training now will save us thousands of dollars in labor in the future from regional directors and office staff."

I sincerely hope this helps you in designing a perfect training system to allow your small business to expand as your customer base continues to swell. Think on this.

Lance Winslow

Sales Planning And Business Plans

2009-02-25T20:00:00.001-08:00

Writen by Lance Winslow

Writing a business plan can be tricky when all the books on the subject fail to keep updating their editions. One significant factor is the sales planning in business plans, yet few books show examples of how to explain online sales which will contribute to your over all stores sales in your retail outlet. Additionally many service companies take orders online and dispatch their units from there. Even Dominoes Pizza often takes credit cards over the phone, many companies now allow online ordering.

Investors and bankers need to understand that you are cutting edge in your new business before they will either loan or invest dollars to you. You need to have a plan for this and you need to carefully communicate it in your business plan. Below please find a sample online sales description to give you some ideas of how to write this up in your business plan. This sample is from a simple business; a mobile car wash franchised outlet. You will print this out and then take a legal pad and make notes of how you will do your online sales. Use this sample and modify it to best fit your plans for the future. You will then formulate your own website sales and online sales section of your business plan to help you in the road ahead. Think on this.

- - - - - - - - - - - - - - - - - - - - - - -

Web Site Sales

Customers will be able to order car wash services via the Internet and The Car Wash Guys web site. This information will be instantly paged to us and the money can be paid with a credit card using Cybercash.

Credit Card Sales

We will entice all customers to use our credit card system as their method of payment. This speeds up customer contact time and leaves more time to wash cars. By charging people's credit card, they can be sold booklets of car wash tickets in advance. This way cars can be washed without having to make change or waiting for people to write checks. It also helps because people are more apt to buy additional services when using plastic money instead of paper money.

We will put additional trucks in areas where credit card usage is highest, eliminating excess employee pilferage. We will have safe encrypted storage to prevent identity theft of these credit card numbers, because we realize the FTC is impotent in protecting the consumer.

Lance Winslow

How To Achieve Ecommerce Success You Gotta Plan

2009-02-24T20:00:00.001-08:00

Writen by Heidi Richards

Before becoming a netpreneaur, I was an entrepreneur. First, I owned a successful child care center which grew to capacity in less than two years. When I sold that, I bought a little flower shop that had less than 300 customers and grew it to what it is today, one of the most successful, award winning companies in South Florida with more than 7,000 customers who purchase from us on a regular business. To better serve our customers, we took our business to the Internet. We still have a brick and mortar storefront, yet everyday we receive more and more customers via the Internet.

How about you? Do you or did you have a traditional business or professional practice? Is it successful? Unless you were born under the star called "LUCKY," you probably did lots of planning. A business plan, a marketing plan, maybe even a succession plan for what to do with your business when you were through.

You may have heard the statistics that half of all small businesses fail in their first year and of those, only 25% make it through to five years. According to youngbiz.com it can be even less for e-businesses.

Build it and they will come! Not! You can have a terrific site, with lots of bells and whistles and if people don't know you exist, you never get any visitors, let alone customers.

Planning is the key to success in business. Amazon.com had a plan, Bill Gates had a plan, eDiets had a plan, and I'll bet they still do. Once a business launches on the net, you will need a marketing plan to be successful. Your biggest challenge will be to find time to plan. However, if you don't find time now, you will find yourself with plenty of it (time, that is) later on, and no business to speak of.

Unlike a business, generally created to get financial backing from investors, Netpreneurs create marketing plans for themselves. Where do you start? First you have to ask yourself these questions. Where do you want to be in 1 year, 5 years, 10 years? How many customers do you want or better yet, how much money do you want to make? Who are your customers? Do you know what they want, need and expect? Can you give it to them? What are your competitors doing? What are you doing that is different? How will you promote your business?

Now Create your Website marketing plan.

Put it in writing! Not only do you have to plan, you have to write it down! Take a notebook or idea book and write the following: your vision, mission strategies, goals and the time frame you wish to accomplish these goals. Keep this notebook next to your computer to refer to. It will help you stay focused.

What is your vision for your business? Your vision is what you want your web site to accomplish. Write your vision statement in your notebook. The vision statement for my flower shop is to "Make a reasonable profit via the Internet by providing a quality product, delivering exceptional service, at a price my customers will pay."

What are your goals? What do you believe you can accomplish that may be a bit of a stretch but doable? If the goals are too easy, you are not getting the most out of your planning process. And you could be losing money. Can make a profit of 20% in 3 months? Can double your customer base in 6 months? If so, write it in your notebook.

What steps do you need to take to achieve your goals? How much do you have to sell to achieve your goals? You must first know your profit margin to determine this figure. Then you have to figure out how you are going to find the customers to make your goals come true.

What are your marketing strategies? Start with those goals you know you can attain. How will you reach your market? Are you going to use search engine optimization, email, newsletters, networking, advertising on related sites, advertising in trade magazines, or write an article to submit to online publications? Participate in online forums, message boards and newsgroups. Include your URL (Internet address) in your signature file.

What is the time-frame for accomplishing your goals? Create a time-line for every goal in your notebook. Next to each goal, write down the starting and ending dates of when you plan to accomplish that goal as well as what type of marketing strategies you are using.

Are you keeping track of your marketing results? If you are doing any advertising whether it is online or offline, track the results. You can track online advertising using ad tracking software such as adtrackz.com, to track all the links you place online. Analyze web site statistics to find out how visits found you. For offline advertising, place codes or words in your advertising to keep track. Your online order forms should have a place to enter the code. To learn how customers found us, we use a numeric code on all advertising/marketing materials.

What is your return on investment? How much money did the marketing strategy cost? How much money did you take in? Subtract the second figure from the first and that is your profit (or loss).

Keep track of those marketing campaigns that worked and those that didn't. Do more of the first. Reevaluate the second. Can you change one thing in the strategy and achieve different results? Try it! Add new strategies to the mix.

Stay focused on your goals. Nothing feels better than accomplishing a goal. Except maybe, all the money you are going to make when you do!

© 2004 - Heidi Richards is the author of The PMS Principles, Powerful Marketing Strategies to Grow Your Business and 7 other books. She is also the Founder & CEO of the Women's ECommerce Association, International www.WECAI.org (pronounced wee-kī) an Internet organization that "Helps Women Do Business on the WEB." She can be reached at www.HeidiRichards.com.

Marketing Audits The Perfect Strategic Tool

2009-02-23T20:00:00.001-08:00

Writen by Dawid Malherbe

Marketing audit, the missing link?

In order to survive in today's highly unpredictable and competitive environment, business leaders cannot leave one stone unturned in their search for excellence! The marketing audit may just be the missing link!

A marketing audit is an invaluable instrument to help an organization to establish its unique competitive position and to identify its superior skills, resources and capabilities. This is a prerequisite for achieving a sustainable competitive advantage for your product, business unit and/or business.

Conducting a marketing audit is one of the best and most sensible decisions an entrepreneur and businessman (or women!) can make.

What is a marketing audit?

Philip Kotler describes a marketing audit as a - comprehensive, systematic, independent, and periodic examination of an organization's or business unit's marketing environment, objectives, strategies, and activities with a view to identifying problem areas (and opportunities) and recommending a plan of action to improve the organization's marketing performance.

The definition clearly confirms the strategic and operational relevance of a marketing audit, making it an indispensable research instrument dissecting, analyzing, assessing, proposing, and advising.

About the audit process

The audit process should be thoroughly planned so that auditing time and cost are kept to a minimum, since carrying out a marketing audit can be quite expensive. It is usually done by highly skilled, experienced, and specialized marketing professionals. Kotler's cardinal rule when conducting an audit is: "Do not rely solely on the organization's managers for data and opinions. Employees, customers, retailers, agents, and other stakeholders must also be interviewed and be involved in the process."

Asking the "right" questions is in actual fact the key to conducting a successful marketing audit. Questions unlock an individual's or a group's creative instincts and serve to stimulate the thought processes. If the right questions are asked in the right manner, refreshingly new marketing insights and ideas come to the fore.

The marketing audit also provides the auditor with a clearer picture of the organization's marketing function and business environment. It will help him/her to identify the strengths, weaknesses, opportunities, and threats of an organization's internal and external (marketing) environment.

Some final thoughts

Unlike a financial audit, a marketing audit has a strong dualistic character. On the one hand it has a scientific and structured side, and on the other hand it has a "chaos" side that invites and provokes intuitive, creative and "out-of-the-box" thinking.

I believe that the marketing audit process should encourage "out-of-the-box" thinking, since competitive advantage rarely comes from sameness. When businesses offer the same product and service to the same market by performing the same kind of activities no business will prosper in the long run. Information obtained from a thorough and skillfully conducted marketing audit will enable management to develop a market focused strategy that is directed by its unique capabilities, ensuring sustainable competitive advantage for their product, business unit and/or business.

Lastly, the marketing audit plays an important role in developing a (successful) strategic marketing plan. A well conducted marketing audit can provide corporate and marketing decision-makers with quality information that is relevant, practical and constructive. As a strategic instrument, the marketing audit is indispensable when developing a marketing strategy.

Dawid Malherbe lives with his wife and two daughters in Franschhoek, South Africa, from where he operates his marketing consultancy. To learn more about marketing audits and ways to improve your business's market focus, contact him at info@crestamarketing.com, or visit http://www.crestamarketing.com

High Performance Mastery Top 7 Principles For Transforming Your Business From Mediocre To Great

2009-02-22T20:00:00.001-08:00

Writen by Denise Corcoran

In the words of motivational speaker, Les Brown -- "You don't have to be great to get started, but you do have o get started to be great." Where do you start to transform your business from mediocre to great?

Below are your top 7 essential ingredients for cultivating greatness within your own business:

1. KNOW WHAT YOUR BUSINESS STANDS FOR AND LIVE THOSE VALUES.
More than ever, today, customers don't just ask "what products do you offer?" They also ask "what values do you stand for?" What values does your business stand for? What practices have you developed to live those values daily?

2. KNOW YOUR COMPELLING "WHY."
Viktor Frankl, the great Austrian psychiatrist, said it best: "Success, like happiness, cannot be pursued; it must ensue ... as the unintended side effect of one's personal dedication to a cause greater than oneself." For what "transcendent" purpose does your business exist? How does your business make a difference in your customers' lives?

3. ALWAYS SEEK THE EDGE.
In 1954, Roger Bannister did the seemingly "impossible" and ran the first 4 minute mile. When asked how he did it, he said "It's the ability to take more out of yourself than you've got.'" How can you "take more out of yourself than you've got" to achieve the seemingly impossible in your business?

4. DARE TO BE DIFFERENT.
Contrarians are the change agents in the business world. These wealth-building businesses are not simply "executing better" -- they're radically changing the rules of the success game in their field or industry. Where in your business can you break the rules? How can you set yourself apart from the crowd in your industry?

5. FIND MODELS OF GREATNESS.
Within every industry, every geography, every career path, there are examples of greatness everywhere. Find those people, those businesses that inspire you the most. What is it about them you would like to emulate? What changes can you make today to be like them?

6. KNOW THE END IN MIND.
Great businesses **decide** their future. They are not dictated by it. They know exactly where they want to be, by when, how, and then persist in getting there. What decisions have you made about your business future? What do you need to decide differently in order to have a great outcome?

7. COMMIT TO PERSONAL GREATNESS.
Your business is a direct reflection of where you are at. It only grows as quickly as you do. To build a great business, you must commit to your own personal greatness. How do you define personal greatness for yourself? What changes can you make to unleash your own greatness?

Denise Corcoran - CEO, The Empowered Business (tm) - assists CEOs, executives and business owners in taking a quantum leap from the ordinary to extraordinary from unrealized dreams to mastering their destiny from slow growth to exponential results. A business & leadership coach, strategic consultant and Master NLP Practioner, Denise's unique "inside out" approach provides deep transformation and lasting change in you, your organization and your results. Her latest e-book: "The Mindset of Greatness: 21 Principles to Becoming an Unstoppable Woman ... Oprah Winfrey Style!"

Subscribe to her monthly ezine - The Empowered Business (tm) - and learn the legendary secrets of top business achievers. http://www.EmpoweredBusiness.com

A Systematic Approach To Continuous Lead Generation

2009-02-21T20:00:00.003-08:00

Writen by Kevin P. Dervin

Lead generation is the lifeblood of any small business. Without leads you don't get new business. Without new business you go away. It's as simple as that.

Being the best at what you do does not counts for very much if you don't know how to consistently generate new leads. Think about it... even the best in your industry will go out of business if they can't generate a consistent supply of leads that they can convert into new clients.

The key to your small business marketing success is having a lead generation system. Notice the use of the word "system".

Do you take a systematic approach to generate a constant supply of leads for your small business? Or are you guilty of trying marketing campaign after marketing campaign looking for the one that will finally deliver the clients? This is a classics small business marketing mistake. You believe a particular marketing tactic or campaign is supposed to to result in a new client or clients. But that's not right. Your marketing should result in producing leads or prospects.

Let's establish a working definition of Marketing - the active use of strategies and tactics to generate a consistent supply of high-quality leads for your business.

You see I believe small business marketing is a system. And as long as we're defining terms, a "system" refers to an organized or established procedure. So if we put those together then your marketing system is an organized or established procedure for using strategies and tactics that generate a consistent supply of high-quality leads.

Unfortunately, many small business owners don't approach marketing this way. Instead, they're switching back and forth from one marketing idea to the next looking for the one that will finally deliver the "mother lode" of new clients.

The "Flavor of the Month" might be a great idea when you own an ice cream shop. But, for a small business marketing approach it's a terrible idea. So many small business owners are creating marketing campaigns that usually don't have anything to do with the previous campaign and won't have anything to do with the next campaign. This scatter-gun approach simply doesn't work.

Take some time to document the series of steps you'll use to create continuous lead generation. Take a look at what has worked well and not so well in the past. What can you learn from those experiences. The more systematic the approach you take to you lead generation, the more consistently you'll produce high-quality leads.

About the Author:

Kevin Dervin is the owner of KPD Marketing, and Authorized Duct Tape Marketing Coach business. If you find this article useful, you'd probably enjoy Kevin's FREE eZine called the Marketing Coach. Subscribe at http://www.kpdmarketingcoach.com and receive a FREE report that reveals 7 Steps to Small Business Marketing Success.

The Magic Of Exponential Business Growth

2009-02-21T20:00:00.001-08:00

Writen by Ewen Chia

Is there a 'magical' way to exponentially grow your business?

It's about the timeless business principle known as "Re-investment".

Look, one of the most exciting times for any new business is the time when effort begins to pay off. Finally, the sales are coming in and you have profit to show for all your hard work. It is very tempting during this time to splurge those profits...

But you've to resist this urge and stop!

You do deserve a reward. You deserve the greatest reward of all: a highly profitable, growing and thriving business with LONG-TERM stability. You deserve to take your business from where it is to where you dream it to be.

Again, one quick and easy way to close that gap between reality and desire is simply by re-investing a potion of your profits back into your business.

It's the same for any business offline, and it'll be the same for any successful business online.

Let's look at why this is so.

Every business requires a minimum budget to get off the ground. Likewise, every business requires an expanded budget in order to grow and increase profitability. Remember that your budget covers more than 'operating expenses' and advertising. It is also there to cover the purchase of new software, fund new projects or your continuing education.

Keeping this in mind, what are some areas you can reinvest in:

* Increased Reach and Exposure

When you begin with a small budget, your advertising options are naturally somewhat limited. Once you have the money to re-invest you can begin testing new channels to deliver your message. This may mean placing an ad in an ezine you couldn't afford to before, or even taking your efforts offline to print and radio advertising.

* Expanded Tactics and Improved Testing

You have the opportunity to try out new approaches. You also have the opportunity to increase your current ad spend in existing campaigns and test the results. This is critical especially in pay per click advertising. For example, your minimum daily budget for a Google Adwords campaign affects the number of times your ad is seen and clicked on. A simple increase in your daily budget may turn a mediocre campaign into a winner.

* Rapid Growth Through Efficiency

There are any number of tools you can invest in to improve how you organize your business, how you manage customer service and even how much tracking of sales and traffic you can accomplish.

Anything which shortens the time you spend on the detail work of your business means more time to focus on the activities which improve your bottom line.

* Improved Products

You must constantly strive to create new products and improve on existing ones in order to remain competitive. Perhaps your first product didn't quite fit your vision? Perhaps your web page could use a tune up? You can re-invest in improved graphics, improved design and other multi-media enhancements. This not only makes your product more attractive, it also increases its value and what you can charge for it.

The principle of business reinvestment is really about profitable growth through momentum and careful planning.

A business is very much like a seedling you want to grow into a tree. It requires air, sunlight, water and food. You tend to it and nurture, even when the immediate benefits aren't obvious.

This is because you know the tree WILL one day bear fruit all year round.

When you tend to your business with the same care, every cent you invest will return to you ten-fold and bear profit for years to come.

If you've been doing this, great...

If not, maybe it's something to think about, starting right now.

About The Author

Ewen Chia is the CEO of Instant Marketing Secrets Inc, delivering real-time uncensored marketing content to help marketers skyrocket their traffic, sales and profits. Sign up for more profit-pulling marketing letters, tips and strategies instantly here:

http://www.InstantMarketingSecrets.com

What Is Your Msp

2009-02-20T20:00:00.002-08:00

Writen by Leanne Hoagland-Smith

For many consumers and producers, MSP is an acronym for Manufacturer's Suggested Price. Today, I would like you to consider a different definition for these commonly used letters Marketing, Sales and Profitability.

In a previous article, "Do You Know and Plan for the 3-R's for Your Business" ( Ezine Article.com directory at http://ezinearticles.com/?id=48344 ), the focus was on Relationships, Referrals and Revenue. One of the most consistent challenges for any business owner is the actual implementation of the strategic business plan that builds the 3-R's. The MSP of Marketing, Sales and Profitability helps to overcome that issue.

Since relationships are the first R, the necessary action is to construct a Marketing Plan to increase relationships. This plan should be specific to your company and not the "shadow" of a company that you admire. Many business owners and executives attempt to "copy" someone else's brand identity and fail to establish their own identify. Marketing plans require research and evolve from a solid vision, values and mission statements.

The second R of referrals generates the greatest amount of Sales. Sales plans and marketing plans are closely related and need to be aligned to ensure that potential opportunities are realized. Within the Sales' plan, specific goals are necessary to ensure that the marketing plan is effective. For example, how many "mailers" are necessary to secure an appointment? How many appointments result in a second appointment? How many second appointments turn into a sale? Knowing your numbers is critical to the sales process and more importantly your own internal motivation.

Revenue is the third R and is a partner of profitability. Some companies work on the philosophy of high sales and low profitability while others use an opposite approach. Profitability is an absolute necessity and should be examined on a regular basis.

Today's business world is complex, but still retains the simplicity of earlier marketplaces. If you know your MSP, you will be able to build the 3-R's.

Leanne Hoagland-Smith, M.S. President of ADVANCED SYSTEMS, is the Process Specialist. With over 25 years of business & education experience, she helps her clients to implement and realign processes to build sustainable change. By uniting systems, strategies and people to create loyal internal customers, Leanne delivers ROI solutions that affect sustainable change in 4 key areas: financials, leadership, relationships and growth & innovation within a variety of industries. As co-author of M.A.G.I.C.A.L. Potential: 7 Capacities for Living an Amazing Life Beyond Purpose to Achievement due for 2005 release, Leanne speaks nationally to a variety of audiences. Please contact Leanne at 219.759.5601, leanne@processspecialist.com or visit http://www.processspecialist.com/organizations.htm if you are seeking amazing results.

Permission to publish this article, electronically or in print, as long as the bylines are included, with a live link, and the article is not changed in any way (grammatical corrections accepted).

Your Winning Season

2009-02-20T20:00:00.001-08:00

Writen by Christy Geiger

Are you winning your game?
Are you playing at peak performance?
Do you feel like you are sometimes on the court, but more often on the bench, in the bleachers, or (even worse) at the concession stands?

There is a concept called PATTERN LANGUAGE. "Pattern Language" means taking language and concepts that are already familiar to you and applying them in a new environment so as to quickly and effectively communicate a new concept or message. Coachville, LLC/YOUR WINNING SEASON Coaching Company is using the Pattern Language of sports in such a way that it will dramatically improve your results in business and in life.

Dave Buck, the CEO of YOUR WINNING SEASON, says: "In my 10 years as a professional coach I have noticed that most people even those who seem to be successful on the surface have an awkward feeling that they are falling behind in reaching their goals. Every day, no matter how long or how hard you work, the to-do list just gets longer. It's like being on a losing team in a season that never ends! By using sports pattern language and seeing yourself as the Player-Coach of a highly visible sports team, you can dramatically improve your results AND your level of fulfillment."

When you approach life like you do the preparation for a winning season in sports, you are clearer, focused and prepared to win the games, and ultimately the season. Coachville/YOUR WINNING SEASON Coaching Company teaches 7 keys to have a winning season in your life and business so you can play your season with CLARITY, FOCUS and a STRATEGY to WIN!

To start thinking as the Player-Coach of your own game, ask yourself the following:

1) WHAT IS MY GAME? In life we do play a game. Your game is what you are focused on, what you want to win. Maybe your game is an aspiration to be a professional speaker, maybe it is earning a certain income, or maybe it is something else. When you know exactly what game you are playing, you have the CLARITY that is needed in order to really play full out, excel to the next level and win. Write down the game you are playing and intend to win this year. As Wilson Mizner said, "In order to excel, you must be completely dedicated to your chosen sport. You must also be prepared to work hard and be willing to accept destructive criticism. Without 100% dedication, you won't be able to do this."

2) WHY ARE YOU PLAYING? Answering this question gives you the focus you need to compel and motivate you to work hard. No athlete is going to spend the time and energy without a clear purpose! Why are you playing? What is it that you want to accomplish by playing this game?

3) ARE YOU WINNING? If yes, great! Keep doing what you are doing. If not, what is happening? Assess and design your strategy for a winning season. For example, an athlete might say "we are loosing because we don't have enough players", "we are weak", or "we are not ask skilled as the competitor". But, what is it for you? Write down 3 things that will be critical for you to start doing so that you can win the games and have a winning season. (i.e. more training, team development, networking, more focus/discipline, etc.) What will it take for you to be competitive in the game, playing hard and pushing for the win? How can you play full out?

This is just the beginning of designing your Winning Season, but it is an important beginning because every game starts with:

CLARITY the specific game that you are playing,
FOCUS the reason why you are playing, and
STRATEGY the things you need to do to stay in the game.

Wayne Gretzky said, "We miss 100% of the shots we don't take." Take your shot: if you pick a game, focus on what it takes and work your strategy, you will score. So, know your game, focus and plan and enjoy a winning season this year!

Christy Geiger is a strategic planning coach and the owner of Synergy Strategies, a business and life-coaching company that works with IBOs and corporations to implement their thousands of great ideas in ways that will maximize time, energy and effort! Through solid vision, goal and strategy planning, clients are able to maximize their personal effectiveness and accomplish their mission! Visit http://www.synergystrategies.com

The Best Promotional Strategy Around Giving To Receive

2009-02-19T20:00:00.001-08:00

Writen by Craig Wood

Well, it's almost that special time of the year which seems to come more quickly every year.

That's right paying the council rates.

But seriously, have you decided what you are going to give your clients/customers/suppliers or simply friends of your business for Christmas?

Christmas can obviously be a very busy time for us all and it tends to be upon us in no time, however, it can also be an excellent time for thanking those people who are integral to your business.

A Christmas card is a great way to send a simple message to those people you want to thank, however, if you want to go that one step further, here are a few suggestions.

1. A Christmas Hamper

You don't have to prepare the biggest hamper to get the best results. A few years ago I sent hampers to my "A-grade" customers which contained a stress ball, a bottle of wine, a fruit cake and some nice chocolates, all packed in a flower pot!! Total cost - $32 each.

I delivered the hampers myself and my customers were thrilled. They'd never before received a gift from a business consultant before usually just a card.

2. Donations for Customers

A really thoughtful and well-meaning gift can be to donate something on behalf of your customers. A simple certificate prepared to confirm that "$5 has been donated to the "Save the Craig Woods' Sanity Fund" on behalf of John Smith" can speak volumes.

Your customers feel touched that they have done something that can help and the kudos for you, for thinking of the idea can be huge. By all means, still send the Christmas card and another little gift, if you like, but a donation shows people that you also care about others.

3. Gold-Class Tickets

I'm talking about cinema tickets here.

Imagine a lovely night at the movies, lying in your reclining soda, champagne and nibblies at your side, watching the latest movie with wife/husband/lover/person you met in the foyer.

This is something that people can use at their leisure and once again shows your customers that you are thinking about them and want them to have a good time.

You really get the royal treatment with these tickets and though they may cost a bit (i.e. approx $75 for 2 tickets) they may be just the think for your top customers who are spending significant amounts with you.

So there you have it a few ideas to wrap your minds around if you have not yet thought of anything for the people who make your business a success.

Now as Christmas is almost upon us I want you and your families to be happy and keep safe over this period and look ahead to 2006 to see what ideas you can implement to make your business an even bigger success.

And I'll be there to help you all the way!

Here's to your Christmas!

Craig Wood has been a business consulant for 20 years, assisting home based business owners to ensure theirs is one of the best home based businesses it can be.

See why home based business owners are rushing to receive Craig's monthly tips and strategies by visiting http://www.homebusinessknowledge.com

Leveraging Technology For Organisational Excellence

2009-02-18T20:00:00.001-08:00

Writen by Amarendra Bhushan Dhiraj

Technology & HR-Leverage one for the other: "Technology and HR are enablers of business. Integration of the two would mean not only harmonious co-existence but also leveraging one for the other. Leveraging of technology for HR would mean digitizing the mundane HR activities and automating the back office and transactional activities related to recruitment, performance management, career planning, and succession planning, training and knowledge management. Leveraging HR for technology implies managing change associated with technology by way of communication, training, hiring, retraining, stakeholder analysis and conscious keeping. Thus they can play complementary roles."

Technology and HR both have one thing common i.e., both these are enablers of business.

In recent times, technology has become synonymous with information technology, as hardly any other technological development of the past would have impacted all spectrum of business as information technology has impacted. Irrespective of the kind of business you are in i.e., services or goods, commodity or branded, trading or manufacturing, contemporary or traditional deployment of information technology in one form or the other is a foregone conclusion. To manage and deploy technology in an effective way, all business Organizations would need knowledge workers. Managing of these knowledge workers is the responsibility of HR function. Hence the integration of technology and HR is an absolute must.

Having understood technology and HR in the present context we must understand integration in this context. Integration would not only mean harmonious co-existing but would also mean one enhancing and complementing the other i.e., technology is used to enhance effectiveness of HR and HR functions helps in adopting and managing change which technology deployment brings in.

Leveraging technology for HR

HR management as a function is responsible for deliverables like business strategy execution, administrative efficiency, employee contribution and capacity for change. All these are accomplished through what HR people do i.e., staffing, development, compensation, benefits, communicate organization design, high performing teams and so on. In majority of these areas technology is being deployed.

e-Recruitment

Recruitment is one area where all the companies worth their name leverage IT. There are two different models of e-recruitment, which are in vogue. One is recruitment through company's own sites and the other is hosting your requirement on the other sites e.g., monster .com, jobsdb.com, jobsahead.com, naukri.com, and jobstreet.com and so on so forth. The first models is more popular with the larger companies who have a brand pull for potential employees e.g., G.E., IBM, Oracle, Microsoft, HCL, ICICI, Reliance, Mindtree consulting etc. Other companies prefer to go to the job sites. Some are adopting both.

E-recruitment has gone a long way since its start. Now these sites have gone global. Sites like jobsahead.com and monster.com have established global network, which encompasses separate sites for jobs in Australia, Denmark, Belgium, and Canada etc. Job seekers are able to search job by region or country and employers target potential employees in specific countries. For example, 3 Com recently posted a company profile on the Ireland site that highlights the contributions of 3 com's Irish design team in its global projects.

In the early days e-recruitment was plagued with flooding the employers with low-quality bio-data's. Again technology has come as a savior. Now pre-employment testing like the one introduced by Capital One, a US based financial company, help in filtering the applicants. These tools test online e.g., applicants for call centers. 'Profile International' a Texas based provider of employment assessments, has developed tools that allow instant translation of assessment tests between languages. Further developments like video- conference specialized sites, online executives recruitments and combining online and offline methods are leading to more and more companies adopting e-recruitment at least as a secondary recruitment method. Arena Knights Bridge, a US based IT company conducts video based interview of its prospective employees and only short listed employees are met in person. Even Cisco was to launch the same.

Employee Self Service

Employee self-service is perhaps one utility of IT, which has relieved HR of most of mundane tasks and helped it to improve employee satisfaction. Employee self services is a plethora of small activities, which were earlier carried out by employee through administration wing of HR. These are travel bookings, travel rules information, travel bills, leave rules, leave administration, perk administration, etc. Earlier all these rules and information were in the custody of HR. Every user employee was expected to reach out to HR and get it done. Now with deployment of ESS in most of the companies, employee can request for travel related booking online, fill his/her T.E. bills, apply for leave, log time sheet and see his perks value disbursed and due etc. E.g., in Ballarpur Industries Ltd. leave administration is completely digitized in its corporate office. It is working towards digitizing travel related activities, perks and even compensation management and performance management administration. 'Digitize or outsource all the mundane and routine focus only on core and value add' - Vineet Chhabra V.P. PDC BILT.

Communication

Communication which is most talked about management tool has always been a gray area in HR management. In large companies with vast geographical spread communicating with all employees had really posed formidable challenge to HR professionals. Technology has again come for rescue. Starting with telephones, faxes, e-mails and maturing into video conferencing, net cast, web cast etc. communication is one area of HR, which has been greatly benefited by technology. Mouse & click companies like Oracle, IBM has an intranet which caters to most of the information needs of its employees. Brick & Morter companies like BILT also have made a foray into deploying intranet for internal communication, which has corporate notice board, media coverage, and knowledge corners.

Knowledge Management

Another area of HR, which is leveraging technology, is employee development. Programmed learning (PL) i.e. learning at its own pace is one of the most effective ways of adult learning. Use of technology for this purpose can't be over emphasized. Aptech Online University and 'The Manage mentor' are some of the Indian sites, which are in this business knowledge management, which is an integral part of any learning organization, which cannot become a reality without technology. Companies can harness the knowledge of its employees by cataloging and hosting it on the intranet. Talk to 'Big-5' or not 'so big' consulting companies you will find that main stay of their business is the knowledge repository. Technology has enabled them to retrieve it swiftly. In the competitive environment where speed is the name of game technology driven Knowledge Management constantly provides a strategic advantage.

If you look at HR module of ERP solutions like people soft, SAP, Oracle and Ramco they provide you with a comprehensive package which helps in man-power planning, recruitment, performance management, training and development, career planning, succession planning, separation and grievance handling. A transaction happening in all these areas are digitized and form a closed loop ensuring employee database is always updated. E.g. a joining letter of a new employee is system generated. It will be printed only when all mandatory fields of information are entered. Similarly a transfer order or a separation letter is issued from the system only if that transaction has been carried out in the system.

For career planning, success planning, skill and competencies matrix methods are used by most of these systems. They search an employee with the required skills first in the in-house database of employees. Once put in practice in letter & spirit, this system not only enhances business results by matching the right candidate for right job but also improves retention of employees.

Processing payroll, churning out time office reports, providing HR-MIS are some other routine activities of HR which have been off-loaded to technology.

Leveraging HR for Technology

All HR professionals, preaching or practicing, learning or experimenting, teaching or studying have experienced leveraging technology for HR. But most of us come across a situation where we need to leverage HR for technology. Let us understand what do we mean by this.

Whenever technology is deployed afresh or upgraded it involves a change. The change may be at the activity level e.g., applying for leave through the intranet or at the mental model level e.g., digitizing the process succession planning which have been HR professionals forte. The people have always registered adopting change. This is one area where HR professionals are to deliver i.e., become change agents and lead the process of technology and change adoption. The resistance to change is directly proportional to speed of change. Now speed of change has increased and hence resistance.

Just to take an example, most of ERP implementation in the world have not been able to deliver all the expectations. Some of these have failed to deliver at all. While analyzing the cause of failure it has been observed that 96% of failures are because of people related issues and only 4% are because of technology.

It is the people who make the difference; hence HR should exploit its expertise to facilitate the adoption of technology. I would like to put together some of the thoughts on what HR should do for this.

At the time of recruitment, stop hiring for skills rather hire for attitude and a learning mind. Skills of today are no longer valid tomorrow. Managing ever changing change is the only criteria for success.

Functional or technical skills can be acquired during the job. Hence recruitment in the technology era needs to undergo a paradigm shift i.e., from a skill/competency based it needs to be attitude and learning mind/ ability based interview. That would translate into hiring for skills for future. In IBM every employee has to fill in his/her individual development plan where the employee commits its learning one/two new skills every year thus remaining competitive every time.

If we look at the chemistry of resistance to change it is either a skill issue or a will issue. To address the will issue we need to work at a comprehensive solution starting from recruitment (as discussed earlier), reward, compensation and leading to organization culture which promotes change. A living example is 3M, a US based company, where innovation is way of life, where 10% of revenue must come from new products every year. For them change becomes way of life.

To address the will issue further organization need to prepare a communication strategy which creates a 'pull' for the technology. For example, in Ranbaxy, when they went for SAP implementation they anticipated resistance. To address this they started a house journal, which was aimed at educating the employees on the benefits, which will result from adoption of ERP, SAP. This created a need rather a potential need or a latent need was brought out. Adoption of ERP did not become much of a problem.

At times adoption of technologies is perceived as a threat by the employees e.g., automation leading to reduction in workers, office automation leading to retrenchment of clerks etc. HR needs to be associated with the technical adoption right from the beginning till the end. At the selection of technical stage if HR is associated, it can map the skills required and create a pull during implementation and adoption. Post adoption it can release the excess non-re-allocatable employees.

To understand this process more clearly we can take example of ERP implementation. ERP is taken as an example as this is one technology adoption which effects employees across the org. irrespective of function and position. Any other automation may have affected only a segment of organisation. ERP implementation in any organization goes through the following stages.

1. Selection of package
2. Business analysis
3. Solution design
4. Configuration and customization
5. Conference room piloting (CRP)
6. Go-live and production

At each stage HR has to play a role, which will help in mitigating resistance to change.

During selection process, the change agent can understand the business benefit ERP would bring. This would help him to draw a comprehensive communication plant aimed at creating a 'pull' for the change. The communication plan may use its various weapons from the armory. The obvious examples are Newsletters, Newsflash. In-house journal, addressing by the top management, web cast, open house sessions, meetings formal and informal.

During the business analysis phase implementation team is supposed to analyse the existing business processes. At times this leads to surfacing of some data which is not very desirable by the process owners, leading to resistance at this stage, HR has to be again proactive and carry out a detailed stake-holder analysis. Such an analysis should give a lead to potential areas of problem and potential champions of change.

Solution design involves defining 'To-be processes' i.e., the way business would be carried out in future. At this stage HR has to play the role of catalyst to turn the heat on. The idea is to ensure to make maximum out of an opportunity of package enabled business transformation. HR can play a role by arranging to educate and train the right people on best business practices, just before this phase.

During the configuration and customization HR has to keep on beating the drum, the customization of a standard package is a big no-no. Similarly, during the conference room plotting (CRP) it should help in identifying the right persons to be involved in CRP. A thorough testing at this stage would result in lesser pain at the time of going live. This is also time to focus on training of end users, the employees who are going to use the system once implemented. Training- retraining training to ensure all the prospective users are comfortable with usage of software before the system goes live.

During the go-live stage HR has to work over time to keep the motivation levels high. This is the time when management starts loosing patience as one glitch after the other keeps appearing and virtually bringing the business to halt. At this stage, HR has to play 'conscious keeper' for the top management once into product relocating the surplus is a challenge for which it has to be prepared before it.

This examples makes it clear that involvement of HR during the entire life cycle of technology is valuable. ERP is not an isolated case. It is true for any other technology adoption only finer details may vary. Hence HR must play a proactive role rather than being just a silent spectator or mere executers of the wishes of business or chief technology officer in case of technological changes.

Having set the case in different perspective, it seems only logical to leverage technology for HR and vice-versa.

About the Author

Mr. Amarendra B. Dhiraj is a frequent speaker at internationally renowned global events, CEO/CTO/CIO Roundtables, Technology Conferences and Symposiums. He hosted and organized the Executive Technology Leadership Forum. He specializes in strategy, innovation, and leadership for change. His strategic and practical insights have guided leaders of large and small organizations worldwide.

Amarendra Bhushan has been named to lists of the European Management Guru and is named as "Europe's youngest management Guru" and one of the "Top most influential business thinkers in the world". http://www.theerce.com, http://www.indogreek.org

How To Develop A Successful Board Of Advisors And Why You Should

2009-02-17T20:00:00.003-08:00

Writen by Eric Graham

In today's rapidly changing and highly competitive markets, many privately held companies are creating outside advisory boards to give owners and CEOs fresh, knowledgeable advice.

Even for small businesses, setting up an advisory board can give you a significant advantage over competitors that are relying solely on internal talent. An experienced and well-connected board of advisors can help your business grow and prosper in ways you've never imagined.

What is a Board of Advisors?
An advisory board is an outside group that is informally organized to provide business owners and corporate leaders with support, advice and assistance. While formal boards of directors have legally defined responsibilities and fiduciary duties, advisory boards have no formal power or binding legal authority. They serve at the pleasure of the business owner or CEO.

Benefits of an Advisory Board
There are several advantages that companies with advisory boards have over their competition. A board offers your business:

An unbiased outside perspective.
Increased corporate accountability and discipline.
Enhanced CEO and management effectiveness.
Greater credibility with investors, vendors and customers.
Help in avoiding costly mistakes.
Rounding out skills and expertise lacking in current management team.
A sounding board for evaluating new business ideas and opportunities.
Enhanced community and public relations.
Improved marketing results and effectiveness.
Strategic planning assistance and input.
Centers of influence for networking introductions.
Crisis and transition leadership in the event of the death or resignation of the CEO.
Help anticipating market changes and trends.

Steps to Creating an Effective Board of Advisors:

Analyze the strength and weaknesses of your current management team.
Look for critical areas of expertise and knowledge that your company could use help with such as marketing, legal, finance, eCommerce, and research and development or information technology. If your company is planning on going public within the next few years, seek out advisors who have successfully taken companies down that path.

Set clear, written goals and objectives for your board of advisors.
Getting maximum value from a board of advisors begins with clear objectives and goals. Board members must know why they have been asked to serve and what is expected of them.

Before establishing the board, the CEO and senior managers should sit down and ask some of the following questions:

1. What are the main areas we need advice and guidance in?
2. What specifically do we need the board members to do for us?
3. Who are a few potential candidates for board membership?
4. How do we avoid giving away too much control to outsiders?
5. What will be the powers and limitations of the board?
6. What will setting up the board cost initially? Annually? Will it be worth the cost?

Determine the size and structure of your board.
Advisory boards range in size from two members to over thirty. The right size depends on many factors, such as your company's size, complexity, stage of development and individual skills needed. My experience and research has found that for most small to mid-sized, growing companies or start-ups, a 5 to 7 member advisory board is an ideal size. Smaller firms can start with just one or two members and add new members as they grow.

Recruiting Candidates
Determining whom you invite to join your board is one of the most critical decisions in setting up a board of advisors. Often a business owner's first instinct is to ask friends, family members or professional advisors to sit on their board. This is usually a mistake. Unless your friend or family member is a recognized authority in an area of expertise lacking by your management team or a highly successful entrepreneur, they are probably not the wisest choice.

Another reason to avoid asking family or friends to join your board is lack of objectivity. Often advice from a friend, family member or management insider is sugar coated to protect relationships. An outside advisor can give you a much more objective and honest assessment of the situation.

Using professional advisors such as your lawyer, banker or accountant as board members has it's own pitfalls. These advisors are already working for you and may not be as objective as you need, due to having an interest in generating future business from your company.

Some critical action steps for recruiting a dynamite board of advisors are:

Develop a candidate profile. After you have determined the areas of expertise your company is in need of, create a profile of candidates that successfully fit these needs. Take care to address knowledge and skills that your company will need to meet projected growth and future challenges.
Seek out experts. Search online and offline for experts and proven leaders that meet your candidate profiles. Contact them and begin discussions about possible board membership.
Ask for recommendations. Solicit recommendations from the experts you speak with that cannot serve on your board, of collogues of theirs that they feel would be a good fit for your needs. Begin networking with your attorney, accountant and other professional advisors. Once you have successfully recruited an advisor, he or she can often lead you to another good candidate.
Find your candidates motivation. Most of your candidates are not going to be motivated by money alone. In fact, if money is their primary reason for joining your board, they may not be what you are looking for. The most effective board members are motivated by the challenge and intellectual stimulation of building successful companies. They serve because they are already high achievers and enjoy the challenge.
Have variety in your board. Try to include experts and successful entrepreneurs from several different disciplines. Often board members who are successful marketers, CEOs and business owners from different industries can bring a fresh perspective to your business. These individuals can often help you incorporate best practices from other industries, into your own industry, creating revolutionary changes and opportunities.
Look for a proven track record. Find the leaders in their field. The best board candidates are successful CEOs, business owners, professionals, university professors and consultants who have achieved success in their own businesses and careers.
Clearly communicate your goals and objectives. Invest time in talking to and meeting with potential members. Communicate to them what your goals and objectives are. Let them know that you are not looking for "yes men" and that you want advisors who will challenge you and hold you accountable for your businesses growth.

Board Compensation
Board members expect and deserve to be compensated for their time, efforts and advice.
Typical advisory board compensation includes a stipend from $5,000 to $25,000 per member, per year. Some companies pay their board members per meeting, with payment ranging from $500 to $3,000 per meeting, with a monthly retainer of $500 to $2,500. Companies should also cover transportation, meals and lodging for members when attending meetings.

Most successful boards also give or require members to buy stock or some form of equity in the company. This gives the board members equity participation and a vested interest in the growth of the company.

Pitfalls to Avoid
Some potential problem areas to avoid when setting up or working with your advisory board are:

Members missing meetings. Because board members are usually running successful businesses of their own, they may not always be available for every meeting. However, board members should be made aware that attendance of board meetings is important and expected. If a member is chronically absent, the value of their membership on the board should be reviewed.
Insecurity of senior managers. Some company insiders may feel intimidated or threatened by the involvement of outsiders. The CEO or owner must make every effort to communicate to his staff the benefits and importance of having a board of advisors.
Incompatible personalities. This is a challenging situation, because most members of your board will be strong willed, achiever types, who have gotten where they are by taking charge. Many will have strong convictions about their opinions and may find it hard to defer the leadership of the meetings to the CEO. You must determine when a member's personality is "too strong" and becoming disruptive.
Excessive number of board members. Because of their strong personalities, if you have too many members on your board, the more assertive members often dominate the debates, depriving you of the contributions the quieter members may have made.
Lack of CEO communication. Withholding company information or not regularly communicating with the members of your board of advisors destroys trust and effectiveness. Regular communication between meetings is essential to maintaining an effective board.
Inadequate compensation. As I mentioned, you do not want compensation to be the determining factor in a candidates membership on your advisory board, however successful individuals of the caliber you seek expect to be fairly compensated for their time and knowledge.

Keys to Board Effectiveness

If you build it, use it. Owners and CEOs who invest the time and money in creating a board should be committed to soliciting and using its advice on important issues and decisions.
Value their input, even when they disagree with what you want to do. Sometimes a board is at it's most valuable when it recommends against a course of action the CEO wants to take. If you recruit a good board, often they have already been down the path you are on, and their experience (and past failures) can help you to avoid costly mistakes.
Communicate with your advisors. Keep the members of your board informed about what is happening in your company and industry. Counsel with individual members on the phone at least monthly and send them information well in advance of your meetings, to help them prepare and keep the meetings productive.
Hold regular meetings. Most boards meet once per quarter. However, boards should meet more often during times of rapid growth or if company needs merit additional oversight and guidance.
Have an objective for each meeting. Your board members are busy people and their time is valuable. Make the most out of your meetings with them, by having a clear agenda and objectives for each meeting. Make sure to cover the most important items of business first, in case the discussions take longer than planned or some members have to leave early.

Annual assessment of board performance.
Periodically assessing the board's effectiveness is a critical factor in ensuring a good return on investment. Each year the board should set performance goals and define their criteria for success. At the end of the year the CEO and the board should assess it's performance, compared to its goals and criteria for success.

Over 80 percent of all private companies are operating without a board of advisors or board of directors. Odds are your competitors do not have one. Because of this, developing a board of advisors can give your company a distinct advantage over your competition. This is particularly true for start-ups and family run businesses.

There is tremendous value in receiving objective, knowledgeable advice from a board of advisors who share in the financial and equity growth of your business. I encourage you to begin recruiting your advisory board today!

Internationally recognized as a leading authority on eCommerce and website conversion, Eric Graham is the founder and CEO of several highly successful online and offline companies.

His services as a speaker, consultant and author are in high demand due to his knack for solving problems and significantly increasing the bottom line for his clients.

Eric may be available to serve on your Board of Advisors. For more details vist: http://www.web-site-evaluations.com/board-advisors.htm

Eric is also the publisher of the eCommerce Mastery newsletter. Visit http://www.web-site-evaluations.com/ecommerce-mastery.htm today to sign up for a free subscription.

A Look Inside The Strategic Mind

2009-02-17T20:00:00.001-08:00

Writen by Valarie Washington

The strategic mind is an unrolling canvas of ideas and thoughtsshapes and forms, maps and pathways. Constantly churning the mind is sensitive to movements around it, interpreting the factors and elements swirling about but not controlled by them. Seeing, planning, rehearsing, revising, they can incorporate new ideas easily and fluidly instead of rejecting or discarding them. They question not for questioning sake but to add and grow the depths of their knowing.

Because they zero in on their goals so clearly and have a focused determination, they think themselves well into the future planning many steps ahead. They don't wait for the universe to support them or supply them with answers. They go forth into the world collecting information, searching, processing, and asking more than what can ever be asked of them.

Always thinking, where am I? Where am I going? How will I get there? Questions marks float about and they grab them tightly, but only for a little while before letting go. The only limits in view are self imposed and usually temporary for they are on a journey without end.

A tape runs continually

No matter how good things are, success is a moving target.
No matter how bad things are, failure is not an option.
Anything worth any amount of time requires a plan.
If the world didn't change we'd only need one plan for a lifetime.

The pursuits of the strategic mind challenge all notions of defeat and welcome the opportunity to risk for the sake of curiosity and a passion for learning. The stories from the strategic mind unfold from beginning to end in full complete images not in small pieces or parts. At the first site of a block or wall they see the light above it and the path around it. Because most things are possible they keep seeking a way. For every action a counter action is considered. They keep reviewing the tape until it reveals a clear path to the end. This mind does not measure failure by how often it is right or wrong, but by whether or not it is left behind.

Since failure is not on option, the only thoughts left are how to succeed in spite of change, obstacles, and disappointments that are sure to come. Time is spent pondering only those things that they can control and they have the ability to control more things than most. They find hidden keys to unlock closed doors and build bridges of curiosity over doubt. If it has ever been done they are certain that they can do it. If it's never been tried, there must be a way. In a quest for relevance the mind is turned toward what has to be done differently to beat change at its own game.

The visions are deliberate and focused without being fixed or limited. They see long range, but don't get too lost in thoughts of the future. Their task is how to create many possible futures in spite of circumstances and constraints. They see long range, wide angled pictures painted in vivid color. They think big and far, and high and wideno limits.

They have the ability to reason through the multiple choices and develop primary responses. They can easily navigate several paths all leading to their ultimate goal. Energy is never wasted but is all spent on discovery. There is an end in site but this is not the time to rest.

They are miles ahead of change. They consider options, trends and predictionsbefore making one move. It is often difficult to tell exactly what they are thinking but they are always deep in thought. Quiet and still they are not easily thrown off balance by small challenges of the day. When everything around them is in chaos they simply make slight adjustments and changes in their position but they never leave the course.

And all of this happens in the strategic mind before one word is ever spoken.

When they open their mouths to speak, they do so with an unsettling conviction and a sense of authority that is so descriptive everyone catches the vision. They can support their positions with sound reasoning and are still open and flexible enough to add to or take away as they share information with others.

The goal of the strategic thinker is to raise the stakes of possibility and participate fully in making the future happennot only for themselves but all those around them.

Wouldn't you like to meet a few strategic thinkers?

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If You Dont Focus Innovate And Evolve You Die

2009-02-16T20:00:00.002-08:00

Writen by Mark Rosenberger

After 128 years of business, a household word, Montgomery Wards, Inc., closed their doors forever and filed bankruptcy.

With 258 stores and 28,000 employees in 30 states, Wards fell victim to competition from service-driven retailers like Wal-Mart, Home Depot and Circuit City. Wards claimed a "poor retail environment" for the failure. Interestingly, Wal-Mart and Home Depot didn't shut down. (Editorial sarcasm).

Wards is a perfect example of a company that thought it was in the retail business and missed the fact they're in the service business.

Perhaps they rested on their laurels. After all, 128 years in business is rather noteworthy in today's ever evolving economy. And clearly, size nor name recognition saved this organization from distinction.

The 28,000 employees will soon be looking for work. Why? Because the organization missed the mark. They remained retailers when the competition had evolved to a more personal, service oriented approach. And I'm willing to bet that most of the employees are "stunned," "surprised," "confused". They thought the old way of doing business was just "fine".

Perhaps this can be a wake up call for every business. What exactly does your business do? The quick answer is generally, "we make, manufacture, service the best darn 'Gismos' in the universe".

The focus is on the "stuff". The focus needs to be on the outcome.

Sure you might "make, manufacture, service the best darn Gismos in the universe" but if the end result isn't happy, satisfied customers who enthusiastically spend more of their money with you while telling friends, family and associates, you're destined for short term success, at best.

Remember, Wards was in the "retail business". Now their inventory is being liquidated at 40% to 50% savings.

A further wake up call might be on the horizon. If the U.S. economy moves toward a slow down, customers are going to be harder to find and still harder to keep. Following years of rapid growth, stunning sales with record profits, most organizations have felt little need to focus on customer retention, customer satisfaction, keeping customers, customer loyalty, customer service, customers for life or any of the current "service" mantras.

In fact, talk to just about any executive and they'll tell you their organization is "committed" to customer loyalty. Give them a few more minutes and they're likely to brag about the level of service their organization is currently providing. And just look at the numbers-they must be doing something right.

But just wait. The companies that spent the time to build and grow a powerful workforce with a focus on excellence and service will be light years ahead of the game as competition increases.

In other words - "Good times can camouflage poor performance".

So what's this mean to you and me?

First, FOCUS, Re-Focus and continue to RE-Focus. What is your company in business to do? What role does your department play in the process? How can each player move performance to the next level? Keep answering and re-answering these core questions.

Second, EVALUATE, Re-Evaluate and continue to RE-Evaluate. Take a hard look at the service offered by your company, your department, your team from the customers' eyes. Be on the lookout for opportunities to take performance to the next level.

Evaluate opportunities to enhance performance internally with your important Trapeze Buddies - the people you count on most often to complete a task, function or provide you with information so you can get your job done.

And never assume that "no news is good news". Your customers are talking - it just might not be to you.

Third, INNOVATE, Re-Innovate and continue RE-Innovating. Buggy whips sold well in their day but if you're in the buggy whip business today, you're short on customers.

Innovation is essential for continued, long-term growth. Look for innovation opportunities in the following areas: 1. Enhancing your core product or service; 2. Saving customers time or money; 3. Reducing customer's headaches and hassles; 4. Helping your customers gain a competitive advantage.

The rules of the game keep changing but one universal truth is this: the job of every business is to attract and keep satisfied customers. Period.

Mark Rosenberger, CSP helps companies transform employee performance, productivity and sanity. He is a sought after speaker, performance strategist and author of six books. Do you count on certain people to make your life work? Discover how to be caught more and dropped less, plus achieve more than you ever thought possible - download the FREE Trapeze Buddy e-book at http://www.NoSplatZone.com

Restaurant Business Planning

2009-02-16T20:00:00.001-08:00

Writen by Bill McRea

Like any eager chef or businessperson with a nose for great food, you're surely excited to get working on your restaurant, and to satisfy palates all over town. Of course, there will be bills to pay, papers to sign, a few accountants needed to keep everything in order and, oh yes, the business plan.

You can write a killer restaurant business plan as long as you remember your goals, and what will make your restaurant special. To get started, take note of the following business plan recipe.

The Icing on the Cake Most business people don't have time to read a complete business plan, so they settle for the cover letter and executive summary. Make a polite, terse, but exciting cover letter; and make the summary stand out by writing it as concisely, and in as excited but not childish a tone as possible.

The Base Otherwise known as the description of your company, describe your restaurant by outlining its mission and vision.

Combine All Ingredients It's time to describe your restaurant! What will you serve? Who are you catering to? How are you going to market your restaurant and sustain it? What is your price range? Will you be having sales? Specials? Combos?

Mix Well Describe your operational procedure, how your restaurant will be managed, and how its team is organized. Your restaurant will most likely have a hierarchy of authority, so outline this completely. Remember, a business plan isn't only for analysts or investors it's for you to keep your restaurant up and running, to remind everyone who is in charge of what, and to remind everyone who's boss at any one time. Your business plan is your reference material if anything goes wrong.

Bake in a Preheated Oven Have someone analyze the current restaurant industry. Describe your competition. This industry analysis part of the business plan is your chance to show how different your restaurant is from all the rest.

Remove from Heat Here's the "Just in Case Part." How do you intend to develop your restaurant in the long term? What are your projections for the next year, two years, five years, and so on? How much will your restaurant be earning? Will it lose anything? What is your exit plan, just in case things go wrong, money goes down, stocks lose their value, and you need to pay your employees?

Whip up that letter, cook up that business plan, and follow the recipe for the perfect start to your business. Serve that business plan cool, and you'll be serving all the town in no time.

Bill McRea is the publisher of Knowninfo a premium website dedicated to providing Information, Marketing Strategies and great eBooks like How to Start A Successful Restaurant Business. Visit our site daily for updated information, and unique products.

Strategic Critical Factors Jump Start

2009-02-15T20:00:00.003-08:00

Writen by Paul Lemberg

Here's a curious question: Do all your daily efforts push your business towards your objectives?

For most businesses, the answer is no - executives and employees spend a fair amount of time doing things which don't really make the business more successful. When you stop to consider it, there are only generally a limited number of areas - like sales or product development - which make your business succeed. With insight and analysis you can select these things, the critical success factors.

Guaranteed: your business will succeed or fail depending on how you approach your unique set of critical success factors. Understanding these factors and paying 100% attention to them is a sure way to add power to your efforts and jump start towards a new level of performance. Here's how.

Step 1: Identify your critical success factors

The first step is to identify your special set of critical success factors. You may have thought this through in the past; you may think you know them intuitively. When asked "What matters?", many executives reflexively say things like sales, customers, people, or product development. These are all good answers, and they may be correct answers, but you will want to think deeper and broader.

Below is a list to start you thinking. It is set in no particular order and contains only the most obvious factors. Review the list and circle areas you believe are critical to your enterprise. You may have to add other, more specific or subtle factors to the list to describe the critical influences on your business' success.

Distribution - this could be direct sales, telesales, third- party sales, etc.
Lead generation
Customer satisfaction
Referrals
Research
Product development
Production, including quality, costing, run-rates, etc.
Sufficient investment capital, sufficient working capital
Customer support / technical support
Quality assurance
Sales process / sales life cycle
Market research
Customer education
Sales compensation
Recruiting
Personnel retention programs
Expense management
Intellectual capital development
Training
Marketing communications
Logistics
Employee equity
Executive leadership
Training and development
Corporate goals / strategic objectives
Values and beliefs
Mission/purpose
Individual accountability
Productivity & effectiveness metrics
Internal communications
Strategic and tactical planning
Executive team
Board of directors/advisors

Be specific when you identify your factors. Don't say "people" when the issue is recruiting, employee satisfaction, training or compensation. Don't say "marketing" or "sales" when the issue is lead generation.

Test your assumptions by imagining a decline in a particular factor. How would that impact your business? Now imagine an improvement in that factor. How would that impact your business?

In selecting factors, limit your list to no more than seven. Why seven? Cognitive theory suggests that human minds are efficient at juggling from five to nine separate trains of thought - the average and oft- quoted number is seven. Our plan is for you to keep your eye on the ball, you want to limit the balls to those you can keep your eye on.

Step 2: Establishing the measurements

Your next step is to establish a measurement scale for each critical factor. Some of these measures will be quantitative; some qualitative. Sales is an easy one: dollars of revenue measured against budget. Leads generated is also easy - how many? You can further break down sales by product and leads by sources, or you can stick to the consolidated numbers. Choose the measure which best reflects your understanding of howthe issue affects your business.

Everything is measurable, you just need the right system. How can you measure your effectiveness in sales compensation? You could establish a compound metric which includes total compensation as a percentage of sales revenue, juxtaposed against goal attainment.

Marketing communications is also difficult. One way to measure this is to subjectively assess the quality of your marcom pieces; you could also measure whether you have the total complement of marcom pieces you require. Or, measure whether prospects respond to your marcom efforts. Most likely you will combine all three to get one measure.

A final example is measuring your efforts in the area of your Board of Directors / Board of Advisors. Measures include: do you have one? Are all the board seats filled? Is the board effective for your intended purpose? Measuring the Board factor would likely blend each of these.

Step 3: Setting the baseline

Once you've established a measurement structure for a factor, the next step is setting a baseline.

Each factor should be set against a normalizing scale ranging from 1 to 10. Subjectively this can translate into non-performing(1), poor (2-3) , mediocre (4-5), good (6-7), great (8-9), and outstanding (10).

If your sales run-rate is $10 million, determine whether that is a 1, a 5, or a 10. Your answer depends of course on whether you consider performance against budget, performance against stretch goals, or performance against "home-run-out-of-the-park" goals. If your baseline for Board of Directors is two unfilledboard seats - is that a 5 (mediocre) or a poor (2-3)? Only youcan decide. Although this ultimately is a subjective process,you want to make it as objective as possible.

Step 4: Set new goals

Next, create a "gap" between where you are - your baseline - and your target for that factor. You already have a sales plan, so your gap exists between your current revenue and your budgeted revenue.

You may consider your baseline a 5, and your target an 8. Implicit in this 1- 10 scale are judgements about your intentions: will reaching your budgeted revenue put you at 8 (almost great) or 10 (outstanding)?

Where do you want to peg your efforts? If you've assessed your employee training at a 4 (mediocre), are you shooting for a 7 (good) or a 9 (great)? You can see from this how your measurement structure and goal system will impact how you allocate your company's resources and energy.

Step 5: Closing the gap

You now have a baseline and a target for each factor. Between them they define a factor gap - your challenge is to close it. Each gap becomes the focus of a meditation which asks the question: What will close the gap between our current level of this factor and our desired level? What possible actions will raise that measurement?

You may have intuitive responses to these questions, and when appropriate, trust your gut. If need be, back that gut response with research - but only when cost effective.

(Sometimes the most cost effective research is implementation, particularly in simple matters.)

Use any idea generation process you are comfortable with. Develop several possible initiatives to raise the level of that factor. With luck your ideas will work together and harmonize in terms of impact or implementation requirements. If you create competing ideas, select the best alternatives. Choose based on return on investment, required resources, scheduling conflicts, time to impact, total cost, and likelihood of success versus risk of failure.

Depending on the specific factor, and the size of the gap, you may plan to close it in stages or shoot the gap all at once. You can launch one initiative at a time, or implement several initiatives in parallel. You may find my GamePlan methods useful in designing your gap-closing programs.

Once you launch your gap-closing initiatives, continually measure your results. Report your progress to participants and stakeholders, and post it publicly.

Step 6: The Ben Franklin Rotation Program

As a young adult, Ben Franklin identified thirteen virtues he aspired to. In order to implement these virtues in his life he devised a "Plan for Self Examination", a program whereby he focused his attention, one virtue at a time, for one week at a time, rotating through the entire list four times a year.

He kept a detailed log of the actions he took to develop the virtues in himself, along with his personal results.

I've adapted Franklin's concept and called it the Ben Franklin Rotation Program. At any point in time, you will have in place a program for improving every one of your critical factors. But in any given week, your primary attention will be on only one factor.

Using Franklin's principles, at the beginning of each week, focus your mind - or collective mind of your management team - on improving that week's factor. What new actions can you take, what new attitudes can you adopt, what new or renewed approaches are available - which will enhance your performance in that one specific area? Do that "thing" wholeheartedly for the entire week.

Franklin also shows us how to track your progress in this venture. Create a score sheet detailing your Critical Success Factors. This sheet should detail each factor, its measurements, your current 1-10 rating and your target rating, along with your next action steps for improving that rating.

Each factor also gets a weight, which enables you to develop an overall score. Each week, re-rate all the factors on the score sheet, and graph your progress. You may also graph the overall score. Publish the score sheet and the graphs. You can establish a reward system based on individual progress, or, using the factor weights, you can develop a bonus structure which incentivizes total progress.

This simple system will focus your attention on improving each one of your critical success factors. With carefully selected factors, you insure both rapid performance increases and balance in your company.

Visit www.paullemberg.com/tooalsandtips.html if you would like an MS Word file containing score sheet templates which will help you in this process, or if you would like a list of Ben Franklin's virtues.

Paul Lemberg is the president of Quantum Growth Coaching, the world's only fully systemized business coaching program guaranteed to help entrepreneurs rapidly create More Profits and More Life for entrepreneurs. Guaranteed.

Learn about our Business Coaching Franchise.

Visit Paul's Website for help with your Business Development Strategy?

New Product Development

2009-02-15T20:00:00.001-08:00

Writen by Jason Gluckman

New product development is one of the most important components of product policy and product management. Product lines and products are appraise and are positioned effectively. Brand decisions are taken wisely. For a higher level of growth, a firm has to look beyond its existing products. A progressive firm has to consider new product development as a cardinal element of its product policy.

Innovation is the essence of all growth. This is especially true in marketing. In an age of technological advancements, change is a natural outcome -- change in food habits, change in expectations and requirements. Any business has to be vigilant to these changes taking place in its environment. People always seek better products, greater convenience, newer fashion and more value for money.

A business firm has to respond to these dynamic requirements of its clientele and these responses take the shape of new products and new services. Through such a response, the firm reaps a good deal of benefits. New products become necessary from the profit angle too. Products that are already established often have their limitations in enhancing the profit level of the firm. Profits from products decline as they reach the maturity stage of their life cycle. Thus, it is necessary for business firms to bring in new products to replace old, declining and losing products.

New products become part and parcel of the growth requirements of the firm and in many cases, new profits come to the firm only through new products. New products can be broadly classified into two groups: new products arising out of technological innovations and new products arising out of marketing oriented modifications. The first group involves innovations leading to intrinsically new products with a new functional utility behind them. The second group involves mere marketing oriented innovations in existing products; it gives rise to new versions of the existing products.

Product Development provides detailed information on Product Development, New Product Development, Product Design And Development, Product Development Processes and more. Product Development is affiliated with Enterprise Risk Management.

Business Plans And Marketing Schemes

2009-02-14T20:00:00.001-08:00

Writen by Todd Lange

The corporate community makes use of different terms in talking about business planning - business strategy, sales planning, marketing strategy, business plans, and marketing schemes. But as different as these terms sound or spell, they cover same principles -- how to improve sales and getting the company "out there". Efficient business plans and marketing schemes need to be strong, cost-effective, and most of all, realistic. As such, an efficient business plan considers several important factors: products, services, market size, competitor activity, marketing, and production costs.

Since a business's' selling point and source of income are the kind of products and service it offers, it is logical to pay these much attention. Product and service evaluation should be part of all business plans and marketing schemes a company formulates. Product evaluation involves product testing, improving quality control, product design, and marketing. In product testing and quality control, it is important to ensure that the company's product is all it claims to be. For example, if company A wants to claim that its product washes off stains in less time than the leading brand B, it must test and improve its product A against product B. Doing this allows company A to adjust the formulation of product A to beat product B. The testing process can also serve as proof if the company A puts advantage of product A in their advertisements.

Business plans and marketing schemes are not complete without including service assessment. A company's employees can make or break the business by attracting or turning consumers and possible clients off. The company may consider hiring the services of a mystery shopper who can pretend to be a customer to get a more objective service evaluation. The mystery shopper has the advantage of anonymity and the staff would treat him as an ordinary customer. The company's head honcho will not get the same results because, naturally, the staff would act their best with the big boss around. Let us again take the example of A and B and make them competing groceries. If company A hires a mystery shopper to visit both stores, A gets the benefit of assessing its own store and that of its competitor. Company A, with the help of the evaluation, can fire unproductive employees, reward the good ones, and implement new courtesy policies that beat that of B's. Statistics show that customers are more likely to support business with efficient and courteous staff over a competing business that offers the same products. Thus, by improving service, a company has the benefit of being more cost-effective (firing unproductive employees) and increasing sales.

Expansion is one goal of entrepreneurs. It could be physical expansion or putting up new stores, or an expansion in terms of market size. Market size expansion has a great deal to do with effective marketing. It is essential for business plans and marketing schemes to have provisions for advertisements. There are several ways in which a company can advertise its services and products: paid email-reading sites, promos, print ads, radios, televisions, and other audio and visual media. Consulting statistics about the media habits of its target market, a company can identify what medium is more effective. Though taking risks is part of business, it helps to be realistic and supported by fact.

Business plans and marketing schemes play important roles in the success of a business. Business analysts affirm this by saying that by coming up with new business plans and marketing schemes regularly, businesses prevent being stagnant and are able to continuously deliver good services and products. Over time, these are the businesses that last.

For more valuable information on Business Plans and Marketing, please visit http://www.business-plan-business-plan.com

Free Tips On How To Write A Successful Business Plan

2009-02-13T20:00:00.003-08:00

Writen by Steve Hill

I am often asked the same two questions. Do I need a business plan? What should I include in my business plan? I am going to answer these questions when writing this article.

Do I require a business plan?

For most businesses the answer to this question would be yes. For the majority of new businesses and ones which require investment by way of a loan or a business partner, a business plan is a must. Any potential investor will want to see for example, your future growth projections before they commit to invest.

This is the type of business which does not require a business plan:

A business which is happy to stay as it is and which has no plans to expand.

A business which never has a need to take out a loan.

A business which is a one man band and is self-sufficient, without the need of any outside help.

This type of business is rare. Most businesses therefore will require a business plan.

It is one thing being aware of your need to formulate a business plan, the problem is most people have no idea of how to go about creating one.

The business plan will aim to show its readers all about your aims for your business and how you are going to reach these targets. You need to have a strategy firmly in place before even attempting to write the plan. You should know the direction you are going to take, the investments you are going to make in staff, equipment and machinery. You need to have business goals and an idea of when each target is likely to be met.

In most cases a business plan is used to try to attract people to invest into your idea and business. It is your sales copy in effect and therefore if you create a professional, well laid out and strong business plan, people are more likely to take you seriously and to invest.

On the other hand if it is rushed, poorly written and basically a weak business plan, you are unlikely to receive the backing you are looking for.

What should be included in my business plan?

People who read your business plan will not only want to know about the business itself, they will also want to know about you. Give them a brief summary of your history and what you have achieved in the past. Write down all of your ideas and really sell the positive side of your character to them. The fact that you are really hard working and that you thrive under pressure. You love a challenge and can not only work well as part of a team but also on your own.

Describe the market place that your business is a part of, the competition and also the opportunities for growth in that market.

Give them financial figures including running costs, projected earnings, projected growth forecasts and also any financial history the business might have had.

Show them that you are flexible in that you have a plan B if plan A does not come to fruition.

Sell them your ideas by telling them why you are setting up the business for example, and where you dream it will be in five years time.

Include a mission statement explaining what you are attempting to achieve with your business.

I hope this information has helped give you an idea of how to write a successful business plan. Good luck.

Stephen Hill helps to promote a number of websites including:

stuttering therapist

cheap ringtones

aviation cleaning products

Know What You Want And Make It Happen

2009-02-13T20:00:00.001-08:00

Writen by Kevin Sinclair

How is your life and/or your business doing? Is it stagnating, boring, going nowhere? Have you become obsessed with meeting those loan repayments or trying to just survive until the next fistful of money comes in? Are you having trouble maintaining your positive expectancy about life and/or business?

Too many of us are living this way and it has to change! The Government won't do it for us, nor will our family or friends. So what steps do we need to take to make life worth living and our businesses into exciting ventures?

The way to live satisfying lives is to simply dream up the things that we want to do and then make them happen. A simple statement but so few of us can put it into practice!

You can put it into practice if you take these steps NOW! First, find yourself a quiet, comfortable location where you will be free from disturbances. Ensure that you have paper and pen handy as you will need to write some things down.

Brainstorm Ideas

Now, let's do some brainstorming. For the next ten to fifteen minutes, write down all the things you'd like to do. A few rules for this exercise are in order. Don't evaluate as you write! For example, if you'd like to go overseas on holidays for twelve months - don't stop and think whether you can afford it. Just write it down. Evaluation can occur later. At this stage, write down all the things that you'd like to do assuming there was nothing that you couldn't do.

Prioritise Ideas

When you have finished brainstorming, you will have a list of the things you would like to do - and hopefully it will be a long list! Your next step is to review your list and sort it into priority order. Again, do not evaluate any of these items as to feasibility, etc. while you are ranking them. At the top of a fresh sheet of paper, write the thing you would like to do most. Underneath that, write what you'd next like to do most. Continue doing this until you have sorted your list into order of most wanted to least want to do. Also, put beside each one when you would like to do it by.

Take a short break before proceeding to the next step.

Evaluation

Now, look at the top three items on your list and ask yourself the question: "What is stopping me from doing these things? It will help to clarify things if you write down these reasons. For example, if your number one choice is to go overseas for twelve months, your reasons for not being able to do so could be:

+ can't afford it;
+ can't leave my business unattended; and
+ afraid I won't like it when I get there.
You've got to remember that you are looking at the three things you'd like to do most! So you're not going to let reasons like that stop you from doing them, are you? Now spend some time thinking about what you can do to overcome these reasons. Again, brainstorming without evaluation can help. Write down all the things that come to mind that could overcome these obstacles. You might write down things like:
+ sell the business;
+ cut back on personal expenditure to save the money so can afford it;
+ get more information about where I want to go;
+ hire a manager to run my business while I'm away;
+ sell the house and use proceeds to pay for the trip;
+ increase my business so that I make more money; etc., etc.

Once you have a list of solutions (no matter how silly some may be), you can then evaluate them. Remember, sometimes it is the modification or extension of a silly idea that holds the solution. From this evaluation process, form a plan of how you could do what you most want to do.

Do a Plan of Action

Your final step in this process is to put your plan into action - and do it now! Don't wait for a more opportune time - the best time is always NOW!

However, don't let your big plans stop you from doing some of your smaller plans now. Pick a couple of activities you can do within the next month that won't cost you money. DO THEM! You will feel like a different person for having done so.

Okay, but can you apply this process to your business? You surely can. Instead of asking yourself what you would like to do, instead ask what can you do that will make your business more attractive to your customers so they will do more business with you?

Again, use brainstorming to help you. Follow all the steps above and you will come up with some great ideas that will help you to revitalise your business. Also, don't forget that the best source of ideas is from your customers. Ask them what they want - then give it to them provided you can do so at a profit. If you can't do it at a profit, brainstorm ideas on how you can do it at a profit. Always aim for continuous and never-ending improvement in your service to your customers.

You will see the difference doing things can make to your life and business!

Kevin is the owner of myws.ksinclair.com, a site that provides information and articles on how to succeed in your own home or small business.

Failing To Plan Is Planning To Fail

2009-02-12T20:00:00.001-08:00

Writen by Mark Flanighan

Ok most of us have heard this statement, possibly even have it on a poster on the wall or even used it within internal training sessions to your staff. But I find this one of the most ignored business statements there is. You would be surprised how many businesses start without a business plan written down in an organised form, covering all of the business issues. The truth is, had many of these businesses took the time to do this; chances are many may never have been started in the first place. Take for example marketing. A business owner might in his head know what he wants to sell and how much he is going to sell if for, but never once considers it would take money to promote or market his services or product.

A structured business plan would have shown this. Take banking charges, seasonality or products, Christmas time when businesses shut down, holiday time when potential customers are away on holiday are all factors that should be written into a structured business plan. When the question is asked the answer nearly always is, "I do have a business plan, it's just not written down but in my head". When you consider every function that is a business function it is hard to believe that anyone could keep all that information neatly within one's mind. There are a group of businesses that are even worse than that. Those that have spent valuable time putting together a master business plan just to have it in a drawer or on a shelf never to be seen or used. Why waste all that valuable time for no return?

A business plan should be drafted as a working document, should contain every function to the business and must be set up in a way to be flexible to changes. It should be a working document in that it can be transported for others to see, is in easy understandable language; contain everything about your business so surprises are limited. And as it is extremely unlikely that everything will go to plan, you should allow flexibility within your figures. Then within your business plan, diarise to review this business plan every so often depending on the nature of the business. If it does better than expected adjust the plan to suit, if it is not so well, again adjust your new plan to suit. A business plan allows you to control your business rather than business controlling you. When you consider the planning that goes into the family holiday for 2 weeks, it is sometime astonishing of how little planning goes into something that could mean the lifeline to the business owner, its staff and everyone connected to it.

Mark is web master for Breakdown Recovery is a Business Consultant and Retail Consultant

Strategy

2009-02-11T20:00:00.001-08:00

Writen by Elizabeth Morgan

Stated in simple terms, strategy is a complete plan designed specifically for attaining the objectives of the firm. The objectives indicate what the firm wants to achieve; the strategy provides the design for achieving them. It is the strategy that decides the success at the business unit level, which in turn decides the total corporation's success. The linkage between strategy and overall corporate success is indeed direct and vital. And in this linkage lies the significance of strategy.

Since realizing the objectives is the purpose of strategy, it is only logical that strategy takes its direction and cue from the objectives of the firm. Strategy is not a nebulous idea. It is a well-outlined game plan. And there are definite ways of formulating it. Basically, the formulation of a strategy consists of two steps: Selecting the target market and assembling the marketing mix.

The essence of the strategy of any firm can be grasped from the firm's target market and its marketing mix. The target market shows to whom the firm intends to sell the products; the marketing mix shows how the firm intends to sell. Together, they constitute the strategy platform of the firm.

To say that target market selection is a part of strategy development is an understatement. It does not fully bring out the import of the inseparable linkage between the two. When the selection of the target market is over, an important part of the strategy of the firm is already determined, defined and expressed. In effect, target market selection boils down to deciding- what parts of the market are we going to serve? What parts of the market do we choose not to serve? And, what is the logic of selecting a particular segment? In other words, it is basically a question of balancing the attractiveness of the various segments with the objectives of the firm and with the resources of the firm.

Strategy provides detailed information on Strategy, Business Strategy, Strategy Games, Marketing Strategy and more. Strategy is affiliated with Strategic Planning Info.

Strategic Planning Goes Beyond Who Does What By When

2009-02-10T20:00:00.002-08:00

Writen by Leanne Hoagland-Smith

A Strategic Planning Exercise

There is a locked room with one window that is wide open. Bill and Hilary are dead on the floor. Within the room, is a chair, a table next to the chair and some water and broken glass around the chair and table. How did Bill and Hilary die?

Maybe you already know the answer to this story. Or possibly you are thinking that the killer entered through the window, dropped down the heating vent, or.

First, take a moment to identify the problem. As you attempted to identify the problem, possibly you thought about Who killed Bill and Hilary? or What killed Bill and Hilary? Yet, is not the problem how did Bill and Hilary die?

Then the hardest part of this simple exercise is to challenge all of your assumptions. The facts are very few and yet was your initial answer based upon facts not in evidence? Did you make assumptions in your effort to determine how did Bill and Hilary die? For it is these assumptions that will potentially lead you down a path towards an incorrect solution.

I use this simple exercise as the beginning icebreaker when I work clients through the strategic planning process. Strategic planning goes beyond whom does what by when because this structured process is all about challenging your assumptions.

What assumptions are you making about your business from your clients to your employees, the economic climate, and your competition as well as future growth opportunities? Possibly, could these assumptions be keeping you from hitting your targets and not reaching your desired business results?

Even forward thinkers such as Bill Gates have made assumptions. During the beginning of the PC revolution, Bill Gates was quoted, as saying 640K ought to be enough for anybody. At that time all the graphics and audio common in today's PC use was not even envisioned. Bill made the assumption that the status quo was going to continue.

Returning back to the Bill and Hilary story, what assumptions did you make? Most people fail to realize that they immediately made an assumption about Bill and Hilary being people. The facts do not support that assumption, but the belief systems of the potential problem solvers interfere with solving this simple problem.

A solid and executable strategic planning process challenges the assumptions of those involved because when you are so busy working in the business your assumptions keeping you from working on the business. When you begin to gather all the information from market share to future market and product growth and you have removed the assumption filter, your mind is now open to all the potential opportunities that before you couldn't truly envision.

During the last 10 years as an executive coach who works with small businesses to multi-billion dollar organizations, I have come to realize that the world would have more success if more people would take the time to create an executable strategic plan. And this plan could be much better operationalized when all assumptions are challenged.

So the question to you is what assumptions are you making about your business? Oh and by the way, Bill and Hilary died from being exposed to air, as they were goldfish.

Leanne Hoagland-Smith coaches small businesses to large organizations and high school students to entrepreneurs to double performance by closing the gap between today's outcomes and tomorrow's goals. Please feel free to contact Leanne at 219.759.5601 or visit http://www.processspecialist.com/ and explore how she can help you from the free articles to the improvement tips.

One quick question, if you could secure one new client or breakthrough that one roadbloack, what would that mean to you? Then, take a risk and give a call at 219.759.5601 to experience incredible business.

Mention that you read this article and receive a complimentary 60 minute coaching session.

Selling Your Business The Hardest Sale You Will Ever Make Amp 9 Keys To Making It Count

2009-02-10T20:00:00.001-08:00

Writen by Ashley Thomson

the 9 Keys to maximizing The Price and Minimising the Stress

They say the three most stressful times in a person's life are when they get married, buy a house and change jobs. Well, try selling a business It's your baby, the thing you have built over 15 years. You have put your heart, soul and an incalculable number of hours into it. Now you are going to sell it.

There are many things you need to do and consider, but these seven areas are of immense importance when it comes to finding a buyer, selling the business and getting the most value for it.

1. Think about who would want to buy your business

Do you have employees that have the management ability and the mindset of an owner and the ability to access capital to pay for the business? If these people aren't working for you now, do you have time to recruit them and teach them the business with an understanding that they might take over?

What about your suppliers, customers or competitors? They might be looking for an opportunity to enter your part of the industry.

Finally, you can go to the general market. Contact a broker that has experience in your type of business or advertise it yourself through the classifieds.

2. Remove Yourself from the Business

Many businesses are based around the owner. Customers are used to dealing with you. Suppliers have long relationships with you. Your team trusts you. All these relationships need to be transferred to your other staff or the new owner. Start planning early!

3. Setup the Business as if you are going to Franchise it.

Who wants to buy a business that relies solely upon the current owner - the person who wants to sell and walk away from the business? A well-systematised business is attractive to prospective buyers who see the potential to own a business that runs smoothly using systems and, importantly, can run without their personal input. A business that can be run under management attracts a premium price when it comes time to sell.

4. Lock in your Senior Staff The most Important People in the Business

If your senior staff aren't in a position to be buying the business, you need to lock them in some way. Best thing to do is talk to them and keep them fully informed. Keep them up-to-date with developments in the sale process and make sure they understand where they will fit in after a successful sale. Consider introducing bonuses contingent on a successful sale.

6. The Customer Database - Your Pot of Gold

This is what will add value to your sale price. Think about it from the buyer's perspective, they are buying a business that with the hope that the customers continue to deal with them. By developing a detailed database of your customers you will be giving them more confidence that they can manage the client relationships after you have gone.

7. Formalise Everything Agreements

Get all loose agreement in writing. Start with your employment agreements. Develop up-to-date agreements that lay out the terms and conditions under which your staff are employed. Put agreements in place with your suppliers and customers as well. These should include trading terms, pricing contracts and any other 'verbal' arrangements.

8. Ensure you have the Best Looking Financials

You should aim to be able to show three years of constant growth, with healthy-looking financials. Clean up any personal items that could be questionable as business expenses this will improve your profit figures. Clear up all outstanding debtors this will improve your cashflow figures. Reduce any excessive spending and make the business look as profitable and attractive as possible.

9. Get a Business Coach to give you an Outsiders Perspective

Clients often come to me looking for someone outside the business to assist them with the eight steps above. They are GREAT business managers, but may never have been through the business sale process before. An experienced business coach will not only provide you with advice to keep you on the right track, but also the motivation and confidence to see the project through.

Many people wake up one day, fed up with their business and then hurriedly attempt to sell it. This doesn't work. Plan it two to five years in advance so that you get the best outcome. Follow the nine steps above and you will be rewarded for the many years you spent building your business.

Ashley Thomson is a Platinum level business coach with Action International. He has coached over 50 different clients with many having sold their businesses for great results with his help. Visit his website at http://www.actioncoaching.com/ashleythomson/ for more information.

I Dont Need A Business Plando I

2009-02-09T20:00:00.001-08:00

Writen by Eve Jackson

I get asked that question a lot. In fact, after "how do I start a business?" it's probably the most asked question by new clients. I decided the best way to describe why you might decide to write a business plan is to tell you a few stories about a client of mine. The name and business are fictional. We're going to call him David and he's going to have a mechanic shop. The stories I'm going to tell you over the next few months are a combination of things that have happened to me and to some of my clients.

David's smart. He's got a memory like a steel trap. And he's ambitious. He wants to start a small mechanic shop with the inheritance his dad left him, and he's been very busy trying to get it started. But he's also young and in a bit of a hurry. The way he sees it, he doesn't need a business plan and anytime he's asked about it he just taps his head and says, "I don't need one. I've got it all up here." Besides, he likes freedom. He's a fly-by-the-seat-of-your-pants kind of guy. He doesn't want to be tied to what some piece of paper says.

His mother-in-law, Ellen just shakes her head. She's owned a bookkeeping service for the last twenty years, which she started because she wanted to be able to stay home when her kids were small. But David thinks, of course she'd see it that way. She's a bean counter and everyone knows how they are about details. Besides, he's already let her talk him into incorporating his business. The way he saw it, he didn't need to waste his money on it, but it was done. No way was he going to waste any more money on getting a business plan.

A few weeks later, David opened his shop for business. What a day that was. He'd been too excited to sleep the night before, and it ended up being an awfully long day because he didn't have any customers. Not a single one. He'd spent the day cleaning the shop and organizing his tools and sometimes just staring at the phone, trying to will it to ring. Oh well, he thought, what can I expect? The shop's brand new and nobody knows about it. Someone will call tomorrow. By the end of the week, with no calls except from friends and family (who he was beginning to suspect his mother-in-law had told to call), he was starting to worry. He was also starting to run out of cash.

He barely scraped together the cash for his lease at the end of the sixth month. He didn't think owning a business would be this expensive. Besides, he'd figured he'd have lots of customers by now, but the truth of it was he didn't have enough to keep him busy for even half a day. David decided he'd better go see his banker. It shouldn't be too be much of a problem to get the money, he figured. He had a good credit rating.

When the usual "how are you, I'm fine" was over, David got right down to business. He didn't need much money. He figured $10,000 should do it. "Sounds good," Shaun said when he was done talking. "Let's take a look at your business plan." And when he said, "Oh I don't have one. I've got it all up here," she smiled and said, "We need to have one before we can proceed with a loan. Come back and see me when you do."

As much as he hated to do it, he knew he had to borrow some money from someone. When none of his friends could help him beyond a few hundred dollars, he approached his mother-in-law. "Well," she said, "I can do that for you, but I have one condition. I want to give me half an hour of your time to listen to why I think you need a business plan." David agreed. He was getting desperate. Here's what she said:

Almost half of small business startups fail in the first year.
The main reasons they fail is because they lack management, lack planning, have insufficient financing and lack marketing.
You can address all those reasons with a business plan:
- Business plans help with lack of management with financial analysis, guide your decision-making, and outlining specific goals.
- Business plans help with lack of planning by outlining the means to meet specific goals.
- Business plans help with insufficient financing because financial institutions and private investors won't lend you any money without one.
- Complete business plans include a marketing plan addressing lack of marketing.
There are other reasons for writing a business plan:
- Business plans help you monitor your progress.
- Business plans give you something to compare your end of period results with.
- Business plans help identify weak areas where you can improve.
- Business plans help you avoid making the same mistake over and over again.
- Business plans help keep you on track.
- A good business plan includes a feasibility study, so you should know before you start whether your business can succeed.
- Many self-help books proclaim goals are more easily met if they're written so business plans help you identify and reach your goals.
David was convinced. He accepted his mother-in-law's offer to help him write his business plan. After it was done, he went back to the bank and got his loan.
So, how is David's business doing? I'm not going to tell you anything today beyond that he's still in business, but I will tell you more, I promise. We're going to use David's business as a case study with more articles about him every month. Stay tuned for more stories about David's business and find out how he's doing.
Eve Jackson owns and operates Details Small Business Solutions, a company dedicated to helping small business do big business with communication and image consulting. Details SBS designs corporate identity packages, press kits and websites. We write business plans and copy for press kits, websites and direct mail sales letters. You can view our website at http://www.DetailsSBS.com and contact us at info@DetailsSBS.com.

Great Ceos Knife The Competion With Killer Strategy

2009-02-08T20:00:00.001-08:00

Writen by Joseph Plazo

Have you just been promoted CEO/Director or General Manager? Congratulations and welcome to the world of strategizing! Now you can doze early, wake late, play golf, cancel meetings and go to Bahamas. On company time!

But I bet you're nervous. While your old job focuses on specialized tasks, your new position frees your mind to explore the business' macro perspective. You'll be steering the ship from the captain's chair. Creating a vision will be your mandate. And strategizing will take about 110% of your working hours. Does that much freedom cause abnormal wetting of the pants? If so, resign. If not... read on. You got a lot of strategizing to do.

So what exactly is strategy? Most managers define it vaguely as "a plan".I see it more precisely as a grand design to employ means and resources to achieve specific ends.

The CEO is paid handsomely to create a fit between assets and objectives. This balancing act is the soul of strategy.

Now there are good CEOS and better CEOs. The manner by which the CEO lays down strategy determine's his stripes. You want to be a good CEO to keep that job and its fat perks. That means you must excel at strategizing.

What makes good strategy? As you will soon be aware, the world's greatest CEOs dominated the market when their strategy exhibited:

* CONSISTENCY. Strategy is consistent with external trends and internal resources. The CEO makes realistic assumptions and plans based on achievable aims and with the capital available.

* FOCUS. Strategies ensure that extant resources home onto specific targets. The CEO offers clear and decisive objectives.

* BALANCE. The resources demanded by proposed strategy is balanced with the resources the company owns or can attain.

* FLEXIBILITY. Strategy integrates contingencies to allow maneuvers and evasive action.

* SURPRISE. Strategy generates surprise and allows the rapid, stealthy attack of unprepared opponents.

* SECURITY. Excellent strategy secures resource bases and vital operating points of the enterprise.

* FIT. Startegy finds a good balance between risk and reward.

* PROACTIVE. Strategy maintains the initiative and shuns reactionary responses.

Now get out there and justify that six figure salary of yours! STRATEGIZE!

An enthusiast of NLP, Joseph R. Plazo, Ph.D offers leadership executive coaching and helps people find great jobs in the Philippines.

Annual Planning Process

2009-02-07T20:00:00.003-08:00

Writen by Grant Ferguson

Do you have a formal planning process in place that is consistently implemented each year?

The dynamics of life as well as in business suggests that very few things remain stationary. That's a good thing because the lack of change leads to stagnation. Will Rogers summed up the danger of staying in one place too long, "Even if you are on the right track, you will get run over if you just sit there."

The annual renewal of a formal plan serves as the key to unlock the benefits of a dynamic life. For example, a yearly Organizational Strategic Analysis offers the following solid returns on your investment:

Provides an invaluable knowledge base for improving performance
Generates best thinking from organization members, customers, and clients
Condenses and filters information to provide a practical starting point for a comprehensive Organizational Plan of Action
Answers the question "where do we stand now?"
Defines "what's next?" and "where do we go from here?"

If strategic planning is so critical to the health of an organization, why do so many businesses fail to plan? There are numerous reasons, but here's the most frequent answer: many organizations simply lack a predefined and integrated Organizational Strategic Analysis and Planning process.

A fine example of this excellent process is LMI's Organizational Strategic Analysis, which includes a workshop that not only generates best thinking, but it also creates that all-important "buy-in" and feedback.

Even though life is dynamic, it will pay the "price" we "demand." That requires us to set that price (i.e., we define the "where" we want to go) and to make that demand (i.e., we define the strategic steps to get us to the "where").

Organizational Strategic Analysis is the process by which we collect the information required to set the price and we begin to see how the demand could be made. After the information has been gathered and filtered, an annually updated Organizational Plan of Action firmly establishes the price and puts in place the tactical steps by which the demand will be made.

Do you have the strategic analysis and planning process in place to ensure that life pays the full price you demand?

http://www.achievefocus.com/blog1/ A bit of background...I love helping people achieve focus to accomplish more in life. My passion is developing leaders of leaders. Through enhanced productivity, I'll show you how to turn your goals into gold. Using a unique process, you'll enjoy the kind of balanced life that others only dream.

I welcome the opportunity to assist you, or your friends and associates. Just let me know.

Balanced Scorecard Strategy Map

2009-02-07T20:00:00.001-08:00

Writen by Ramki M

With the help of balanced scorecard strategy map, it is very easy to design the organization goals and build business strategies. Balance scorecard and strategy map are interrelated with each other. Strategies map is the foundation to design business strategies or perspective. Using strategy map, you can design the strategies and using balanced scorecards you can build business models.

Strategy Mapping

Strategy mapping deploy the concept of balancescorecard developed by Kaplan and Norton. Balanced scorecards is a business strategic approach which covers four important business perspectives (financial perspective, non-financial perspective, internal process, value proposition. The advantage of strategy maps understands the target market, improving the efficiency of strategic planning.

Business Strategic Mapping Balance Scorecard

Business Mapping helps organization to achieve results through business process improvement. Strategy map is the key to improve the business performance. First determine your strategy then map it. The balance scorecards strategy map is an incomparable tool for communicating strategy. The balanced scorecard strategy map will show how an organization its objectives into results. One should learn to how to design, build strategy map and balanced scorecard to accelerate your organization performance.

Scorecard Strategy Map

The expanded Scorecard Strategy Map concept, paired with the Balanced Scorecard, offers a new way to manage. Balanced scorecard commences with taking companies perspective and converting into strategy map. The strategy map gives you a graphical representation of the strategies. A strategy map also provides which aspects of their strategy are succeeding and where they are falling short.

The main area the strategy mapper will concentrate on main objectives, cause and effect relationship, strategic initiatives and finally metrics and measurable to assess your business success. Balanced Scorecards are part of the measurement system the factor of a management system that is used to focus, align, and balance the organization's goals and objectives to accomplish long-term strategic objectives.

Business Strategies should create values to the shareholders. The strategy mapping is a complete whole-systems design tool. The strategy map provides clarity as to roles and responsibilities across the organization that are required to bridge the gap between strategy formulation and getting results at the execution level.

Strategic Value Proposition

The strategy map commence with a strategic goal, is followed with a strategic value proposition and ends with a cause and effect systems map that chart what needs to be done to achieve results. Designing strategy map and creating balanced scorecard performance metrics that tightly link operational targets to strategic goals.

Ramki is with Axsellit Technologies Axsellit Software delivers professional, benefit-enriched business solutions. Axsellit Technologies provides Strategy Map and Balance Scorecard Software.

Positioning For Success How To Remain On Top In A Competitive World

2009-02-06T20:00:00.001-08:00

Writen by Jennifer Mccarron

Thanks to legendary Ad man Rosser Reeves, most business professionals understand the need for a Unique Selling Proposition (USP) - a reason why people should choose to do business with you over any of your competitors. However, when they are asked what this reason is, you will often hear similar standard answers. We offer a quality product. We're dependable. And, our service is outstanding. Did I mention that we really care about our customers?

While these statements may be true, overused claims of this type fail to differentiate you from your competition. Think about it. Have you ever heard someone say they didn't have a quality product? That they did not provide excellent service? Or, that they really don't care about their customer?

It's not enough to make general claims in this competitive world. Businesses need a unique and specific message in order to stand apart from the rest. Take Domino's Pizza. They don't try to make the best pizza, have the most toppings, or offer the best price. Instead, they focus on getting homemade pizzas in our hands as quick as possible. They are fresh, hot, and at your door in 30 minutes. These wise pizza makers effectively "positioned" themselves in the minds of the consumers. Their message is very specific, very quantifiable, and very successful.

The term positioning, as coined by Al Ries and Jack Trout in the 80s, gained popularity as businesses began to see that effective positioning equaled increased profit. The concept involves concentrating on a unique idea that defines the company in the minds of the consumer. Even if a company has better product or service, the money will land where there is a "perceived" advantage. In their classic book entitled Marketing Warfare, they proclaim that, "The battle takes place in the mind. There are no facts in the human mind only perceptions. The perception is reality."

In order to win this battle, we must make our market feel as if selecting our product or service over others is the logical decision. Unfortunately, in this quest, many feel compelled to offer new products or services. They invest time and money to find "the one" idea that will be the catalyst for success. What they fail to see is the uniqueness that is often already present within their own business.

In Differentiate or Die: Survival in Our Era of Killer Competition, authors Jack Trout and Steve Rivkin urge readers to take the time to know their business and the advantages they currently possess. These may include advantages offered within your procedures, your leadership or management, or even your history. You may find that you are unique in the area in which you specialize or the market upon which you focus. Or, you may realize that specific characteristics of your products, services, or staff are unlike any others.

Just as important as your inward study is your external knowledge and honest evaluation of your competition. What are they saying, doing, and offering? Business owners typically know the major competitors that are chipping away at their bottom-line, but often have overconfidence in their own messages and underestimate competitive threats.

Armed with the knowledge of your own advantages and the claims of your competition, you can formulate a powerful position. Were you the first? Do you try harder? Do your methods offer advantage? Whether it's one specific fact or several factors that set you apart, make sure that your market is armed with clear reason(s) for selecting you.

With a clear position established, back it up with benefit-centered communications. It's human nature to make our choices based upon what we will receive. So in order to stay on top, you need to go beyond mere product or service explanation and make it clear exactly how your customer will benefit. What will buying your product or service do for your customer? Will it eliminate worry? Will it make their life easier? Will it solve their problem(s)? Will it make or save them money?

It's a competitive world, and without differentiation companies can easily get lost. Take an honest look at your competition and at your company. Are you sending a specific message that will ensure that you are perceived as the right choice? Effective positioning is a powerful marketing strategy; use it to stand apart and above the rest.

This article was published by Business Builders, a marketing outsourcing company that believes very strongly that the best way to gain loyal clients is to offer them the tools needed for success. Their Web site, http://www.businessbuildersnet.com, offers many additional free resources as well as valuable products for purchase on their product site: http://www.easyaspiemarketing.com

Social Planning

2009-02-05T20:00:00.002-08:00

Writen by Martin Hahn

Most Western countries have a high degree of industrialization and modernization which results in a lot of prosperity. This prosperity, in turn, results in a society in which all citizens can be seen as 'not poor'. This trivial fact is not something which can be seen as a miracle or a natural phenomenon, but as a result of planning. In turn, the society as a whole must be organized in such a way that guarantees can be given to its citizens for their individual well-being. This egalitarian principle in Western countries is conceptualized in the term 'welfare state'. It is not the intention of this article to provide a historical account of the emergence of the welfare state, but the main goal is to discuss an important catalytic factor in the emergence of the welfare state: social planning.

Social planning is not synonymous to governmental planning because it is a broad term which is relevant for numerous kinds of planning. Almost every form of planning, whether it is education planning, health planning, business planning or science planning, all have clear and definite social characteristics. For this reason, a social planner can have different academic backgrounds: sociologist, economist, business administration, public administration, etc.

What is social planning? Planning can be seen as a process in which a definite number of steps in time are undertaken which will result in a strategy necessary to cope with a certain problem. Take, for instance, a housewife who wants to cook her family a nice dinner. She will first decide what sort of meal she will prepare. She will make a list of the necessary ingredients and she will go to the nearest supermarket and buy these ingredients. Back home she will cook the meal which will be ready around dinner time. Her family can enjoy a warm home cooked meal made with fresh ingredients. This is all the result of planning albeit a simple form of planning.

Unfortunately, the social reality in which we live in is a lot more complex and confusing. So, to solve all those complex problems, the planner has developed numerous techniques and methods of planning. In general, all planners tend to agree that there are two kinds of planning. The first type of planning is called substantial planning. This form of planning is connected with highly specialized planning in a certain sector or area. For instance education planning, spatial planning, business planning, etc. are forms of substantial planning. The second type of planning is procedural planning. This type of planning is concerned with general characteristics of the planning process. The central question of this form of planning is: how can I shape a planning process? This article is about the latter form of planning rather than a specialized method of application of planning. A logical consequence of procedural planning is that planning must be seen as a process. And this process is a process of analysis, anticipation, design, action, and application.

Planning as a 'learning process'

Planning is not an activity which can be seen as a process which is uncontroversial. The science of planning is still growing and the concept of planning is numerous. Every planner has his own way of looking at planning and this has resulted in a 'jungle' of planning definitions and concepts. Fortunately, this fact has given a strong impulse to the growth of the science of planning. In the beginning, planning was solely a technical and industrial engagement. But recently planners realized that planning should be seen as a social activity. For this reason, sociologists developed a strong interest in the systematic analysis of planning. A significant consequence of this approach of planning is that the learning aspects of planning have been recognized. So, the concept of planning as a 'learning process' can be seen as the most recent approach of planning. This form of planning has integrated certain aspects from the system theories, cybernetics, and the communication and social theories.

A major characteristic of the system theories is that the social reality is seen as a system which consists of subsystems. If we know that the reality consists of subsystems, then it is possible to make models. Models actually mirror the reality which consists of subsystems. Take, for instance, a mouse who is trying to escape from the claws of a cat. The mouse itself has a dynamic system; it is possible for the mouse to constantly change its system. In order to escape from the cat, the mouse can run into various directions which, in turn, depend on its sight, smell, and hearing capacities. So, the mouse possesses a dynamic system. For planning, however, a dynamic system is not enough because the social reality is also changing constantly. The consequence of the changing social reality is that our analysis of the situation is easily outdated and irrelevant.

There are two strategies to cope with this problem: using forecasting techniques which can be incorporated in the planning process and/or the incorporation of feedback mechanisms in the planning process. The latter strategy is actually an aspect which has been derived from cybernetics. So, it can be stated that planning is a learning process since new ideas, changes in the reality, and experience are all incorporated in the planning system by feed-back mechanisms. It is actually information (the learning aspects of planning) which is incorporated in the planning process; without information we cannot function properly.

There is one final aspect which must be incorporated in the planning system: participation. It is actually an aspect of the communication and social theories. Planning is usually not an individualistic activity, especially when the problem to be solved is complex and when a lot of people are involved. So, participation of others in the planning process is very important since it is essential to make a good and successful plan rather than an unrealistic plan.

Planning as a decision-making process

In most cases, planning is highly related to decision making. Decisions are constantly being made in reality without any difficulties at all. Decisions can be made by simple intuitions, but it can also be made by a deeper analysis of a problem. An example of an intuitive decision: which hand do I use writing a paper or what is the best position for me to get into sleep in bed at night, etc. This kind of decision making happens automatically; there is no need for a deeper analysis. The planner, however, is not a person who believes that all his problems can be solved with intuitions. If this is the case, a dangerous situation might arise for the planner himself or for the people who are affected by his plans. A sensible social planner realizes that the social reality is a complex reality. For this reason, the social planner will base his plans on rational analysis. It must be mentioned that a social planner is also a human being who is not perfect.

Planning is about decision making. In turn, decision making is based on analysis; this means that a certain part of the reality must be subdivided into a certain number of parts. These parts can be analyzed which means that all the consequences of all the problem-solving alternatives must be screened. However, it is impossible to make a complete analysis of the entire reality which is too complex in nature.

Usually, there is not enough time, money, and intellectual capabilities to solve a social problem in a total manner. This does not mean that that an incomplete analysis is useless because it will clarify the problem a lot more and there is no doubt about the usefulness of an incomplete analysis. In order to clarify this, an illustration can be given. Imagine there are two alternative plans available and it is absolutely necessary that one option is chosen. In addition, it is known that the results of plan A are less satisfying than the results of plan B. The chances that plan B will succeed is only 40%. But it is also known that in case plan B is successful, then the results at the end is much better than the results of plan A. Which plan do you have to choose? The following calculations will provide more clarity. Suppose the success of plan B will be given the value of 1 and the failure of plan A will be given the value 0. In case plan A succeeds, a value of 0.7 can be given, but if plan B fails, a value of 0.2 can be given. The expected value for choosing plan A can now be calculated:

(0.8 x 0.7) + (0.2 x 0.0) = 0.56

For choosing plan B, the calculation is:

(0.4 x 1.0) + (0.6 x 0.2) + 0.52

So, in this case plan A should be the obvious choice.

Planning, forecasting, and policy making

It was already mentioned that the process of planning includes anticipation. This process of anticipation or forecasting is actually the process of predicting the future. Planning and forecasting cannot be separated from each other, but cannot be separated from the process of policy making. The process of policy making can be defined as the search for certain means in order to reach an acceptable goal in the future. In other words, problems we have today must be eliminated in the future and it is our task to find means to achieve this goal. Planning in this case must be seen as a supporting factor of policy making consisting of the following processes: preparation, consideration, decision, execution, evaluation, and feedback. The relationship between planning, forecasting, and policy making is useful because governments, politicians and policy makers need all these instruments.

If you would like to get custom-made advice about your planning problems, please feel free to email me at martinmim21@hotmail.com My name is Martin Hahn Ph.D. and I am an industrial sociologist with more than 20 years experience in teaching, management consulting, and corporate training. All requests will be handled professionally and your planning problem will be handled in strict confidence.

Strategic Planning

2009-02-05T20:00:00.001-08:00

Writen by Jennifer Bailey

Strategic Planning entails the making of schemes to be adhered to by an entire organization. This pertains to the entire organization's achievement and progress over a certain period of time in the future. It also takes into account the way industry conditions change with the times - in areas such as technology and communications.

The particular nature of the organization, as brought out by its leadership, its culture, complexities in its environment, its size and other specific aspects prevalent there, determine its Strategic Planning mode. Thus, there arise a number of models, approaches and perspectives of Strategic Planning. These may be based on goals or issues or other criteria.

An organization's planners may well know the components of a Strategic Plan. Still, in order to clarify and elucidate the organization's plans and verify that the individual plans of the key persons concerned comply with the common plan, the Strategic Planning process is well worth considering. Strategic Planning serves many purposes:

It helps cultivate a feeling of ownership of the plan among the participants in planning.

It helps bring focus on the key priorities of the organization, and thereby ensures the most optimum effective use of the organization's available resources.

It sets and establishes realistic and achievable goals for a period of time in keeping with the organization's capacity.

It forwards such goals and objectives defined to every constituent of the organization. Following these, progress can be measured from time to time.

It redefines the organization's purpose.

It establishes a mechanism for informing about changes in goals and objectives, when made.

Strategic Planning provides detailed information on strategic planning, non-profit strategic planning, strategic business planning, strategic media planning and more. Strategic Planning is affiliated with Strategy Games.

Strategic Planning Process

2009-02-04T20:00:00.002-08:00

Writen by Jennifer Bailey

The Strategic Planning Process starts off with an evaluation of the organization's performance of business. The specific issues which are to be addressed by the plan identified. These may be the key areas of business, which are of utmost importance in the organization's functioning. Determination and clarification of the roles of every participant in the process must be made, and the information relevant to the process is to be provided at the very onset of planning.

Ascertaining the mission of the organization is the next step. Together, the vision on what the organization is hoped to become in future is also to be declared.

Next, the situation on the ground, as it is presently, is taken into considerationthe identification of the greatest areas of need in the organization is made using ratings. Priorities are established-- crucial 'value areas' where any improvement made would translate to significant results are determined.

Thereafter, the correct plan of action to work upon the identified area(s) is developed. Strategies, goals and objectives are formulated specifically for this purpose. Completion is achieved by summing up and putting down everything on paper- incorporating all the multiple strategies, goals and objectives set up.

Finally, implementation of the plan chalked out is of prime importance. Unless plans are actually carried out they become useless on paper. The monitoring and reviewing of the execution of plans and progress achieved is important too. After regular intervals of time the performance, based on the plan, should be scrutinized to indicate success and failure. Necessary modifications should be made to the plans if they are not delivering the desired results.

The Strategic Planning Process, if successful, will help an organization react more quickly to emerging opportunities and ensure faster decision-making than competitors, thereby keeping the organization leagues ahead of competitors.

Strategic Planning provides detailed information about strategic planning, non-profit strategic planning, strategic business planning, strategic media planning and more. Strategic Planning is the sister site of Limited Liability Company Advantage.

Seven Deadly Sins Of Goal Setting Part I

2009-02-04T20:00:00.001-08:00

Writen by Ginger Marks

The new year is nearly upon us. It is time once more to visit the issue of goal setting. What are you planning to accomplish next year that you haven't previously? Do you see yourself as the top salesperson at your company? Do you desire to successfully increase your customer base; promote your business or maybe you simply want to save and plan for a vacation in some exotic locale?

We all have the best intentions when it comes to getting things done. However, for most of us there just aren't enough hours in the day. At times you may have wondered at the end of the week where all that precious time went. Believe me, you are not alone.

Goal setting, whether for mundane daily tasks or a billion dollar operation is an activity familiar to everyone. The larger our operating domain, the more important it is that we "get it right".

So just what can you do to effectively guarantee you achieve your goals? How do you successfully complete your tasks efficiently and effectively? I will attempt to effectively respond to these questions by helping you avoid some of the pitfalls of goal setting.

1. Failure to create a plan Does that sound a bit strange? Actually 2 out of 3 people who have trouble in this area merely haven't taken the time to consider the actions necessary to achieve their goals.

2. Lack of or poor organization Step back and look at the big picture. Think about what you wish to accomplish and how to complete the task within the time frame you have allocated. Consider all the aspects that will come into play. Draw on your resources whether they are materials or a human that will effectively guarantee your objectives are accomplished.

3. Fear of the loss of control This one is a big problem for many of us. How often have you had the thought, if I could just have someone else do this simple task only to discount that thought because you don't believe it would be completed as effectively and efficiently as you could do it yourself. If you expect your business to grow beyond what you are able to accomplish yourself you have to be prepared to share responsibilities. Other qualified individuals or companies can assist you when the timing is right to take your business to the next level. You have to learn to balance increased production with increased overhead.

These are just the first few snares to avoid when initiating your goal planning. Successful goal planning is an integral part of business development. In Part II we will discuss the last four pitfalls of goal planning, how to overcome and succeed.

Ginger Marks is the founder of DocUmeant, Your writing assistant. For more information, visit her website at DocUmeant.net. She is also the Copy Editor for Ladies First Magazine. http://ladiesfirstmag.biz/ is your first stop for business articles, profiles and resources for and by female entrepreneurs.

Dont Sweat Over Business Plans Use A Swot To Pinpoint Practical Ways Of Growing Your Business

2009-02-03T20:00:00.001-08:00

Writen by Brian James

Stop and think before you attempt to construct plans for your business. Take stock to consider the full range of external and internal factors that will impact on your success. This will enable you to be far more effective by concentrating on the correct elements that will drive your business forward at greater speed. A comprehensive SWOT analysis will help you to achieve this aim.

So what is a SWOT?

SWOT is an acronym for Strengths, Weaknesses, Opportunities and Threats. It is a review of micro and macro factors affecting your business. None of us operate in a vacuum and we all need to take account of several influencing elements with all our marketing activities.

How to produce your SWOT

Start by considering the external environment that will produce opportunities and threats. This includes factors such as political, economy, social, technology, environmental and legal. For example, the UK political environment is stable at present. There are terrorist threats, however, that remain particularly while the Iraq crisis continues. Some of these factors may have an impact on your business.

The UK economy and interest rates are stable. Inflation remains below 2%. These factors could influence your borrowing requirements, funding plans and dividend policy.

Social factors are continuing to be influenced by increasing corporate and personal social responsibility. People are more aware of health related issues in the home and within the workplace.

There may be technology, environmental and legal issues that also have an impact on your business.

Next, consider your internal environment that will indicate your strengths and weaknesses. These elements include customer, supplier, intermediaries, competitors and other stakeholders, for example, shareholders. Customer satisfaction levels are important to you gaining more ongoing business and them passing on referrals. When is the last time you conducted a customer survey? If some time ago, the chances are that the climate of customer satisfaction may have changed. Here are some key measures:

Price competitiveness
Quality of service
Range of services
Strength of relationship
Delivering results
Reliability

Consider the links you have with suppliers. What scope is there for negotiating volume deals or gaining more marketing support from them? You may be able to work with other business intermediaries who offer kindred products and services to yours. I have witnessed spectacular growth from businesses that work together in an alliance partnership.

What intelligence do you have of your key competitors? Do you know their relative strengths and weaknesses? This information is vital for you to differentiate yourself effectively. For example, one competitor may have wider expertise but much higher overhead costs. You could probably compete directly on price with your core services.

All of the above information will enable you to complete an analysis grid showing your key strengths, weaknesses, opportunities and threats. You can then use this to develop an informed marketing plan that will produce more sustainable revenues and profits.

You can register for our free resource area by visiting http://www.brianjamesgroup.com/DownloadAssistant/default.asp

Brian James is published author of the breakthrough book "Don't Work for Your Business Make Your Business Work for You" with an Amazon.co.uk 5-star rating and credited by the Chamber of Commerce.

Brian is creator of the breakthrough Triple M marketing methodology and founder of the Sales & Marketing Academy, an expanding membership programme for ambitious business owners providing ongoing advice, coaching and mentoring support.

Brian has worked with blue-chip and small to medium sized companies across many sectors. Some of the larger organisations he has worked with include the Prudential Group and British Telecom. He currently operates as Chairman of the Brian James Group a business advisory Group for owner managed businesses

Innovators Role At Hard Times

2009-02-02T20:00:00.002-08:00

Writen by Burak Fenercioglu

One Research Scientist at the Hewlett-Packard (HP) Imaging Systems laboratory said Carly Fiorina was a marketing person put in change of engineers who cared nothing about the art and beauty of technology. She just wanted saleable stock to bring to market. He exhorts that when she walked into the HP Labs for the first time, she said that their new company slogan was "Invent." Then, she told them that the technology industry would never again be as exciting and profitable as it was in the '90s. That they'd all need to grow up now and face that fact.

This was not the first time; a CEO had preferred cash to innovation. Carly's pitfall was taken care of, anyway. She has a point, though, while saying innovators need to have business sense. Especially when time is not that right for long-term R&D projects. Here is a list of five things innovators need to be sure that they are in place in order to make innovation worthwhile.

1. Innovation needs to reflect the company's macro and micro visions. Every company has one macro vision. Microsoft wants every computer's operating system to be running their software. Cisco says every network needs to be based on Internet Protocol and running over their products. It is not difficult to grasp that one sentence that defines why that company exists. Micro vision is a lot more difficult to get as it is a sophisticated message delivered to the market. Depending on innovator's access to the product marketing team, it may lead you to the right answer or to a dead end. No matter how organic and difficult the micro vision is; important move would be to look at the core values micro vision stands for. The question innovators need to answer is what are the trends that are unlikely to change over 5 years and build their dream over it.

2. Innovation is needed for competitive advantage, not for fun purposes. This is hard to get most times but innovation has a meaning for the company. Definitely that meaning is not fun or to show how geek of an R&D team the company has. The real meaning is; innovation puts company ahead of its competition. Innovator may not be excited with what s/he has at the end of the day because of the level of his/ her involvement with the project. However, as long as strategic value is delivered for the company, the job will be considered fully done. Innovation is to forge you ahead, not to excite its innovator where it will only be appealing to his/ her equivalents.

3. Innovation has two ends. Number 1 is innovating for the next-generation needs with an edge. Number 2 is making existing technology cheaper and/ or simpler. It is not so clever to follow sophistication over simplicity, because the winner is always the latter. Delivering sophisticated technology in a simple way is the greatest thing, an R&D team can deliver; if strategy is set as number 2. The truth is, Number 1 is enticing to an innovator but needs more time to deliver, while number 2 is boring but more effective for strategic purposes. Companies with R&D labs need to have a nice mixture of both to keep the excitement level at acceptable rates.

4. Every innovation has a time. The important thing is to flesh it out at the right time. If it is delivered early, it is called pupa. Company needs to hold onto the technology until it is the right time. 18 months early release is good enough for a pupa technology to be announced. If innovation delivered to the market is too late, it will be called a tardy so integration to the solutions without any big announcements is necessary. Innovators are supposed to read the time well.

5. Innovation's core source is evolving. For a long time, North America has been considered as the HQ of innovation. However, both Europe and Asia are striving to be more involved in the process. Understanding where the idea bulbs are is extremely important to an innovator.

Today's corporate world is asking innovators to make the connection between innovation and business on their mind. No matter how hard it is; they need to assume this new role to move their company to the next stage.

Burak Fenercioglu is a freelance writer. He is working for a computer network security company for over 4 years. His articles are about ideas, innovation, strategy and can be found at http://burakfenerci.blogspot.com

Business Plans Have You Ever Seen One That Worked

2009-02-02T20:00:00.001-08:00

Writen by Jim Stewart

Well have you? Personally, I'd say "Yes, but" But what you may ask? Well, firstly the business plan wasn't written from the back forwards. In other words it wasn't written as a result of a statement like "We need to get $X thousand/million from the bank/lenders." Secondly, it wasn't written because someone (I hope it wasn't a consultant) said "A small business of our size should have one." Thirdly, once written it wasn't put on the shelf and forgotten for the rest of the year. And, finally, no one expected things to happen exactly, and I mean exactly, the way the plan predicted.

A business plan that starts with a look at what's going to happen in the industry and then at how the competition are positioned, helps highlight opportunities and threats. Combine this with an honest assessment of the small business's own strengths and weaknesses and you're on the way to developing a fairly logical strategy. Using that to develop three financial forecasts -- a "best case", a "worst case" and a "most likely case" helps keep people's feet on the ground. It also helps if the assumptions made in each case are carefully recorded. Compare this approach to starting to write a plan knowing what the final financial numbers have to look like and you can figure out, fairly quickly, which of the two plans is most likely to "work."

A good reason to write a business plan is to figure out the answer to a question - like "What would we have to do to increase our profits in each of the next 3 years?" People will be more motivated to approach the process in a logical, thoughtful way than if we're doing it because "we should have one." Part of the answer is working out what the small business will have to do -- for example buy plant and equipment, add people, and change the way things are done. Those things would probably be written down somewhere anyway -- with, once again, all of the assumptions made -- so why not put them in a plan? If the money we'll have to spend and the people we'll have to hire are related to the increases in profits they'll help to generate, it becomes easier to see them as investments instead of expenses.

Plans that work are dog eared. Why? Because they're pulled out regularly and reviewed. During the planning sessions the "big" goals -- increase sales by $500K -- are broken down into smaller actions -- introduce a new product, hire new sales people. Action plans -- with SMART (specific, measurable, attainable, realistic and time related) objectives -- are developed and written right into the business plan. Someone is designated as the "champion" for each action. She/he is responsible for getting it done. It's easy to check, for example once a quarter, whether well defined actions like these have been completed. At the same time actual developments in the economy, industry and marketplace are compared to the assumptions and the strategy updated. Financial results are compared with the forecasts and adjusted if necessary. These are "no blame" sessions -- if there are performance problems with some individuals they're dealt with separately -- just an opportunity to update some projections with reality.

Why aren't these guilt filled, finger pointing sessions? Because the people who did the planning know that they can't predict what the weather will be tomorrow, what the stock market will do next week or how their favorite sports team will finish the season. They measure how well their business plan has worked by how close their estimates came to reality. If any of us could exactly predict the future -- well, I wouldn't be writing this and you wouldn't be reading it.

I tell myself that one of the advantages of getting older (there have to be some surely) is that you gain a lot of practical experience both good and bad. A couple of the things I've noticed, along the way, are related to business plans. Firstly, the companies that I've been involved with which had good business plans always made more profit than those which didn't. Secondly, those small businesses hadn't written their plans to meet some predetermined outcome; they'd written them to help answer key questions affecting the future of the company. Finally the owners had a realistic approach to forecasting the future and, most importantly, they made their plan come to life.

Before becoming CEO of the Canadian subsidiary of a multi-national corporation, Jim gained over 25 years' business experience in major corporations (including subsidiaries of Pitney Bowes, Xerox and ITT) in Canada and Internationally. His orientation and expertise saw him spend much of his time starting and growing new or existing businesses. Since 1997, he has specialized in helping the owners of small and medium size enterprises, successfully achieve their growth objectives. Three of the companies with whom he has worked have received Business Achievement Awards. In 1995, Jim completed an MBA in the Executive Program at the University of Toronto, finishing on the Dean's List. He also holds a Bachelor of Commerce degree from the University of South Africa. Visit Jim's web site http://profitpath.ca/ for more information.

Franchise Agreements Cash Flow And Royalty Payments

2009-02-01T20:00:00.002-08:00

Writen by Lance Winslow

One of the biggest concerns in franchising for a franchise company is cash flow. And that means a franchisor must pay careful consideration to royalty payments from its franchises and franchise outlets. Not only is it important to receive the money, but it also is smart to make sure that the money is due, when the franchisee can pay it and when the franchising company will need it. If a franchisor collects its royalties at the end of the month, when rent is due then the franchisee may have to choose between rent or royalties.

In carefully considering the cash flow we needed for our franchising company and the ability of our franchises to pay the fees owed, we modified our franchise agreements to best fit solving this issue for all parties concerned. Below you will find a copy of the clause that I inserted into each and every franchise agreement;

2.2 Continuing Fees

2.2.1 Royalties

The royalties for each truck/unit will be $100.00 per month. This royalty fee is due and payable in full on the seventeenth (17th) calendar day of each calendar month. These royalty payments are to be paid for every truck and trailer unit Franchisee operates. Payments of continuing royalty fees are not refundable and must be made via bank wire or such other electronic funds transfer procedure as Franchisor may require.

The royalty fee may not be uniform for all franchises now being offered by the franchisor. Franchisor reserves the right to trade services for royalties upon our mutual consent. Franchisor reserves the right to administer National and International accounts and collect all monies. Franchisor may subtract out the royalty fees and/or the promotional fund fees that Franchisee pays Franchisor before forwarding any monies due the Franchisee. Payments to the Franchisee will be settled monthly.

-------- ------------ -----------

As they say; cash is king. Every franchising company needs cash to accelerate faster and faster into the market as they extend their brand-name and grow their companies. And it is not easy to manage a rocketship. All franchisors would be well advised to consult with a CPA and an experienced franchising attorney to best strategize how to accomplish this goal. I hope you will consider this in 2006.

Lance Winslow

Reap The Benefits Of Rabbitlike Reflexes Invest In Flexible System

2009-02-01T20:00:00.001-08:00

Writen by Stafford Sterner

The problem is all too common. An expensive capital investment, which looked like the smartest thing you ever did a few years ago, no longer meets your company's needs. It could be computer systems, manufacturing equipment, fleets of vehicles or material handling systems, but the problem remains the same. Material handling is my field, but you should be able to take the following suggestions and apply them to your own situation.

If your material-handling system no longer meets your needs, there is a very good chance that you are a victim of inappropriately long-term goals. Unfortunately, and much to your surprise, those goals have changed. It's still a good system; it's just not the right system for you now.

It would be nice if you could anticipate exactly where you are going to be in 10 years, then build an expensive, custom designed system to help you get there - nice, but almost impossible. That's why I, contrary to many in my industry, recommend short-term planning. For reasons too complex to go into here, the optimum lift of material handling systems is about four years. In the first year, if you are careful, the system pays for itself. For the next two years you can enjoy the profitability of a paid-for, still efficient system. The last year should see you back in the planning stage, looking ahead to the next system.

But there's more to the concept of short-term planning than simply planning for a shorter period of time. It also involves positive preparation for the necessity of constant change.

Looking for change

First of all, recognize that change is inevitable. It will come, and if you can't foresee the details, you can at least anticipate general trends. For example:

Business is better or worse than expected. This can be because of changes in the economy as a while, your specific market or the success of a particular product. The designed capacity of your material-handling system is now either too much or too little.

A major change in the way you do business: Your regional business has gone national and you need to open new distribution centers. OR you decide to consolidate several distribution centers, to lower costs of integrate operations of an acquired company. OR employee demands cause a rise in labor costs and you are forced to rethink any number of labor-intensive operations. OR you have decided to eliminate the middle man and sell directly to customers rather than a few dozen dealers.

News from the outside world: Changing conditions of war and peace cause fluctuations in the defense market. Terrorism brings new government regulations and big changes in specific markets like import/export and cargo handling. Even something like a new road or the closing of a railroad line can cause you to re-examine your material handling situation.

Run like hell, then totally change directions

A dog is chasing a rabbit. The dog is bigger, stronger, and faster on the straight-away. More often than not, however, the rabbit survives because it is able to change directions while the dog skids into a tree or off a cliff. In business, you're either leading the pack or falling behind, and staying ahead has at least as much to do with being able to change directions as with raw speed and power.

This is not the place to discuss keeping your entire organization flexible, but if you need 19 vice presidents' signatures on a requisition, your current business plan does not allow you to change direction fast enough to compete today.

Flexibility can be designed into a system in two ways:

Planning never stops.

The evaluation and planning process should be ongoing. Your personnel should constantly be evaluating the performance of the current system as well as reviewing new equipment on the market and changing factors in the marketplace and the world at large. The earlier the change in direction is begun, the less drastic is has to be.

Design a changeable system.

Some systems are easier and less expensive to change than others, and this flexibility can be built in from the beginning. An investment in excess capacity may cost a little, but it is less expensive and disruptive to your business than not having enough capacity down the line. Modular systems such as stackable shelving units or scalable software that allows for the addition of workstations can facilitate growth or redesign as needed. Finally, the use of refurbished rather than new equipment in certain parts of the system can shorten payback periods and make frequent change more economical.

You can't always plan for specific changes, but you can plan on this: Change will be necessary, and sooner than you think.

Stafford Sterner is President of SJF Material Handling, Inc. Sterner has more than twenty years experience in the material handling industry and sales and marketing management. In business for over 20 years, SJF Material Handling, Inc. is a Winsted, Minnesota-based full service provider of new, used and renewed material handling equipment. They also provide complete design, layout, engineering, profiling, set up, installation and testing for entire facilities. Visit SJF's website at http://www.SJF.com

Understanding The Importance Of International Business

2009-01-31T20:00:00.001-08:00

Writen by Kadence Buchanan

International business is all business transactions-private and governmental-that involve two or more countries. Why should one be interested in studying international business? The simplest answer is that international business comprises a large and growing portion of the world's total business. Today, almost all companies, large or small, are affected by global events and competition because most sell output to and/or secure suppliers from foreign countries and/or compete against products and services that come from abroad.

More companies that engage in some form of international business are involved in exporting and importing than in any other type of business transaction. Many of the international business experts argue that exporting is a logical process with a natural structure, which can be viewed primarily as a method of understanding the target country's environment, using the appropriate marketing mix, developing a marketing plan based upon the use of the mix, implementing a plan through a strategy and finally, using a control method to ensure the strategy is adhered to. This exporting process is reviewed and evaluated regularly and modifications are made to the use of the mix, to take account of market changes impacting upon competitiveness. This view seems to suggest that much of the international business theory related to enterprises, which are internationally based and have global ambitions, does often change depending on the special requirements of each country.

Another core issue is the company's growth and the importance of networking and interaction. This view looks at the way in which companies and organisations interact and consequently network with each other to gain commercial advantage in world markets. The network can be using similar subcontractors or components, sharing research and development costs or operating within the same governmental framework. Clearly, when businesses formulate a trading block with no internal barriers they are actually creating their own networks. Collaborations in aerospace, vehicle manufactures and engineering have all sponsored the development of a country's or a group of countries' outlook based on their own internal market network. This network and interaction approach to internationalisation shows the substance of being able to influence decisions when knowing how the global network players work or interact.

For example, a crucial market network is that of the Middle East. Middle East countries are rich, diverse markets, with a vibrant and varied cultural heritage. This means that although there has been a harmonisation process during the past few years, differences still exist. Rather than business being simpler as a result, it should be recognised that because of regulations and the need those countries have to restructure as they enter the global market, performing any kind of business can be highly complex. It should be remembered though that the Middle-Eastern countries have a low-income average and like to have their cultural differences recognised. Those firms that will or have recognised these facts have a good chance of developing a successful marketing strategy to meet their needs. Fortunately some firms have realised these important differences and reacted adequately when strategic decisions had to be made regarding their penetration to this kind of markets.

Kadence Buchanan writes articles on many topics including Education, Kids And Keens, and Science

Success In The Restaurant Business

2009-01-30T20:00:00.003-08:00

Writen by Bill McRea

If you own a restaurant or you're thinking of operating one, then planning for its long-term future is probably a big concern of yours. Just like any business, the restaurant industry is full of challenges and changes that affect of its' lifespan. To ensure its continued success, a well-thought out plan is definitely a must!

The restaurant business needs a market analysis before its set-up and during its operations in the market. The said market analysis would generally tackle various factors in the target market such as: age; gender; occupation; income; and education among others. By identifying these factors, the people running the business will have an idea on how to serve their customers and thrive in competition with other restaurants catering to the same target market.

To do forecasts of the restaurant industry's long term future, it is important to first analyze the current situation of the business. In fact, there is a need to study its operations and various conditions as it progressed from "Day 1" to the present. And this can only be done through assessing and updating of the restaurant's business plan.

For starters, it is best to identify the various factors involved:
1. Business summary highlights
2. Company history
3. Analysis of Marketing strategies through the years product, price, place, promotion
4. Detailed comparison of competitors
5. Complete products and services offered and its evolution to what is available at present
6. Sales strategy and forecasts
7. Quality assessment of management and operations
8. Study of financial plan, records of profits and loses, and the like
9. Others

Change is constant, and to ensure the long-term success of the restaurant industry, then changes in various areas of society have to be factored in present conditions and future forecasts. These are said to include the fluctuations in variables affecting the target market and in everything else that the business encompasses.

Moreover, a business plan that caters to the long term future of the restaurant industry must be conceptualized.

A good restaurant business plan will entail the following:
Outline of company's goals
Competent understanding of the company's niche
Organized plan that allows room for growth
Incorporates changes and other societal conditions
Viable and realistic financial plan
Other pertinent data

Specific answers to the following questions must be answered by the forecasts:

1. What are the market trends in the restaurant industry?
2. How are these trends changing?
3. What is the future market trend forecast based on population growth?
4. What are the predicted characteristics of the target market in the long term future of the business?
5. How is the restaurant seen to evolve with various changes in the market?
6. What are the product and service changes seen down the road?
7. How have the competitors evolved?
8. What are the financial projections?
9. How will financial support be strengthened and maintained?

Various marketing strategies will help in ensuring the long term success of a restaurant. Many restaurants have actually implored the use of some of these marketing tools.

A. Use of In Store marketing
Launching of products
Promotional items and discounts in the store
Posters, flyers, leaflets
Restaurant design
B. Use of community marketing
Community programs and charity work
Promotions for locals
Sponsorship of local events
C. Use of Media
Press releases in magazines and newspapers
Product features
Advertorials
Advertisements and commercials (if applicable and within budget)
Celebrity testimonials and/or client testimonials
Billboards
Brand exposure through sponsorship

Aside from the above-mentioned marketing strategies; it is important to take note that the quality of products and services must be maintained and developed. In fact, to ensure long term success, there must be brand equity and a strong loyal customer base.

To recap the long and laboring process; ensuring the long term future involves updating the business plan of the restaurant industry, quality control of products and services, brand development, application of various marketing strategies, and the like.

Staying in the restaurant industry may prove to be a very satisfying and rewarding experience. On the other hand, mismanagement and incompetent analysis of the market may also lead to huge financial losses. Thus, every step taken in this competitive industry must be carefully weighed and properly implemented.

Bill McRea is the publisher of Knowninfo a premium website dedicated to providing Information, Marketing Strategies and quality eBooks like How to Start a Successful Restaurant Business!

An Annual Strategic Planning Process For Small Businesses

2009-01-30T20:00:00.001-08:00

Writen by Robert Norton

Is Your Annual Strategic Planning Process Done? Strategic Planning Not Just For Fortune 2000 Companies PART II

In the last issue we discuss the need for a strategic plan, even in small companies, and the key questions that all managers, and even other employees must be able to answer for optimum results in your company.

The Strategic Planning Process I Recommend:

Team Meeting #1 - Brainstorming the "WHAT" Most likely here the CEO puts the first stake in the ground, proposing "WHAT" the objectives are for the coming year. This is just a starting point for discussion really though. It might be as simple as a percentage growth goal, or as complex as a bunch of new market niches and/or product combinations to explore. There is much discussion about what is achievable, how and why or why not. This needs to be a safe environment to brainstorm, say anything and challenge everything. Your culture must not only allow, but must encourage dissent and heated discussion. Without this you will be growing a team of "yes men" (and women) that are there to simply validate what the CEO wants. At this point we are getting the team's input on "What" we want to achieve this year. This can be a bottomless pit of time and discussions and at some point the CEO needs to decide on limits. Details should not be discussed unless they make the objectives impractical. This is more of a brainstorming meeting and can easily take several hours. I like to call these "Summits" and do them offsite to get people away from distractions and enhance creativity. If you can afford it make it a paid weekend foliage or ski trip with this meeting being the focal point of the weekend and lots of time for people to bond personally too. The quicker this gets done the better your team is really the more alignment in thinking anyway. However are you pushing the envelope of creativity and options? If this stretches out to several meetings without some clear agreement on the "what" then you should probably bring in an outside facilitator or advisor.

Individual Department First Draft Developed - The team now goes away and individually prepares what they think is achievable for their department written down in terms of quarterly goals and priorities. This is 1-3 pages per department, not anything big, as it is still dynamic and just a proposal. Sometimes a list of potential projects and priorities, things to try and larger items for discussion is even sufficient at this stage. Avoid schedules at this stage, as you will most likely rearrange order and priorities. These senior people will seek out and meet with others to discuss dependencies, timelines and how they will accomplish some goals fairly informally. This off-line work should build enough confidence and framework to go to the next step and surface any conflict to be brought to the group for discussion.

CEO Challenge and Review - CEO and most department heads should probably meet one-on-one to flush out these first drafts before meeting #2.

Team Meeting # 2 Validating "It" Can Be Done - Each team member now presents their goals to the team and explains the risks, resources needed and rough timeline (quarters) for objectives (if there is good communications the managers have already compared timelines offline to coordinate this some). They should also make it clear WHY these are the right objectives for the company this year. Obviously financial costs and the resulting financial performance should be estimated.

By now the goals and priorities should be fairly clear, if not go back to step one and narrow the discussion to repeat the process it should go quicker. Otherwise you should be simply working out more details and specifics. Ideally this will happen offline between managers and their people.

More Detailed Department Plan Each department head, or team member, now works up the next level of detail with resources, needed, timelines and metrics for success and benchmarking progress. This is prepared to present to the entire group. As in step #2 team members meet as necessary with others to work out dependencies and get final input. They may even present what they have to the other department head too.

Team Meeting #3 Agreeing on the "HOW" and "WHEN" The team now meets to review an integrated plan with all department goals dovetailed to show they have a complete plan and understand how they will tie into other department's goals and objectives too. If this process does not help and flush out most of your plan you have bigger problems and probably need some major changes and/or outside help to get through it. Don't worry about making the document fancy, sometimes PowerPoint slides and Excel sheets with timelines and metric goals will do fine. The level of detail you require must be a function of the experience of the individual department head. The more experience they have, and the more trust you have for them, the less detail is required in the plan. However, as the company gets bigger and more people need to read the plan you may need to write more detail. Do worry about the team understanding it well. The value is not the written plan. The value you created during this process is what is in the heads of your team at the end. You have stretched their minds to a new level and thee minds should not easily return to just a day-to-day focus with good oversight. Adjustments will happen frequently in young companies and less frequently as the company gets more experience and more predictable.

We never plan to fail, only fail to plan. Don't make that mistake. Always have an annual plan.

After this plan is in place monthly meetings, or a specific section of regular staff meetings monthly, should be reserved to benchmark progress against this written plan. Things will change but everyone must be informed because others are depending on other departments to achieve their goals too. Good managers will alert other managers in real-time about significant changes that affect them. This is the sign that a manager is executive material and is thinking about the big picture and overall vision of the company, not just their area.

I would normally make this process happen during the holidays to get productivity from your team during slower times, but this will depend on your business. There is no magic to an annual cycle and you might want to use your tax year if your business is very seasonal.

Bob Norton is the author of four books on starting and running companies and entrepreneurship. He runs the exclusive Advanced Entrepreneurship CEO Boot Camp to help CEOs and senior executives cut years off their learning curve. He also coaches CEOs at growth oriented technology companies with between $500K and $50MM in sales on how to get to the next level. He can be contacted at: Bob@CLevelEnterprises.com. See http://www.CLevelEnterprises.com and http://www.StartupPlanet.com.

6 Changes You Can Make To Increase Business Profits

2009-01-29T20:00:00.003-08:00

Writen by Marcia Yudkin

I read once that something like 30 percent of all drinkable water gets wasted on the way to the consumer by leaky pipes. Likewise, your business may be letting potential revenue drip away, to be lost forever, all over the place. Use this checklist to make sure you are taking best advantage of all the opportunities for earnings that would be arriving safely if you only plugged up those holes.

1. Improve your followup. According to the National Sales Executive Association, only about two percent of sales occur on the first contact. Eighty percent of sales require at least five contacts before the transaction occurs. That means that if you put out your sales message just once or twice, you're barely out of the gate. Those who might eventually buy are hardly even beginning to pay attention. You must repeat that message again and again before it wakes up busy people to what you are offering.

2. Put your marketing activities on schedule with a plan. I see a lot of businesses bedeviled by the "feast or famine" syndrome, where they stop marketing when times are good and therefore have no pipeline in place bringing them new leads when the economy slows down. They get busy marketing, but there's a time lag before new business comes in, and when it does, they stop marketing once more, keeping the cycle going. Instead, invest time or money in creating a marketing plan that tells you what to do each week or month to keep business continually flowing in. If it's too much for you to handle, hire assistants or outsource it to hungry but competent colleagues.

3. Increase your personal productivity by working at your most creative times. Once I incited a firestorm of criticism on CompuServe's PR Forum by revealing that I hardly ever spend more than one hour writing a press release. Other PR professionals opined that I couldn't possibly create decent work that quickly. Well, I do, and here's my secret: following a process that creativity researchers will tell you is used by top scientists and inventors, I absorb all the facts and define the challenge for myself, then go to sleep, take a walk or step into the shower. Within a day, my unconscious mind brings me a "Eureka" experience with a terrific headline. The rest of the press release pours out right after the headline. Had I sat down to try, try, try to write that document, it would take triple the time and not reach the same quality.

4. Stop unproductive marketing activities, boosting your profits. Advertising pros know that most advertising doesn't work, but they continue to spend like crazy because part of it does. If you can identify which marketing efforts of yours are not giving you a return, and stop spending money and energy on those, you'll be earning more from what you spend. Admittedly, it can be difficult sometimes to pinpoint what actually brings in customers and clients. However, if you begin asking each new buyer how they heard about you and keep track of the answers, patterns almost always emerge. One graphic artist learned through this kind of research that nearly all her clientele came from word of mouth and none from her ads in the local business journal. Of course, the opposite discovery could have happened, too. Don't assume, find out!

5. Market more often to your customer base - much more often. Hardly anyone stays in touch with existing and past customers often enough. They think they might be "bothering" their clientele by letting them know about new products, opportunities to buy before a price increase, success stories of other customers like them, and so on. Nope, it's not so. On the contrary, staying in touch ensures that you stay in the awareness of people who have done business with you before, so that when they need you again, they come to you rather than go to your competitors.

6. Hire help for mechanical tasks or a virtual assistant to help manage communications. Feeling overwhelmed? If you can make, let's say, $100 an hour doing what you do best, you should not be spending too much energy on routine things like stuffing envelopes, doing errands like going to the bank and the copy shop or putting together slides for your upcoming lecture. Instead, pay someone $25 an hour to get those to-do's accomplished and free you up to get more high- paid work accomplished. An exception to this principle is when you do the repetitive tasks as a break or rest from money-making activities that tire you out.

Increasing your productivity means increasing the income from your business without spending more hours working. Get started on at least one of the above today!

Marcia Yudkin is the author of 6 Steps to Free Publicity and 10 other books. She runs a private member site, MarketingforMore.com, which supports business owners who are growing their businesses. Learn how to avoid the most common pricing mistakes in her free report, "Charge More & Get It," available from http://www.marketingformore.com/survey.htm .

Strategic Planning In The Business World

2009-01-29T20:00:00.001-08:00

Writen by Leon Chaddock

Strategic planning is a method of planning events in a strategic manner in order to accomplish the goal at hand. This type of planning works by looking at the whole picture you then figure out how you are to get from one place to another. Probably the most important example of strategic planning is that which is done in the military. In this example, we could say that the strategy is to overtake an area while the tactical planning is how you will fight each battle. The strategy is the plan to get through the whole picture.

Now, take this to the leave of business strategic planning. Strategic planning can work in a number of ways in a business environment. For example, you may want to make a plan to get the business from one level to the next. Depending on what that is, you can make a plan that the business will follow to achieve the end results. Here are some ways in which this type of planning can be put into place.

Financial aspects such as profit, loss, increasing sales or lowering costs.

In human resources, you can devise a strategic plan to recruit new hires, to promote individuals, to staff a location quickly.

Also, you can use strategic planning in your business marketing plans. How you will market, where you will market, and how much you will spend in those areas are all determined through the strategic planning.

Like any other thing in business, though, you also have to have back ups when it comes to your strategic plan not working. This will help you to find the right choices each time. Because you will have something in place to handle things when they go bad, you will feel more confident about your plans. Strategic planning is something that any company or business can use quite effectively.

For more information please see http://www.strategic-planning-info.co.uk

Talking Head Business And Marketing Plans

2009-01-28T20:00:00.003-08:00

Writen by Tom Isaacson

As one frequently hired to write, edit, or review business planning packages I've followed the progress of current thinking on matters of plan content and size with interest.

The rapid transfer of information by online and wireless means has conditioned us to expect talking head presentations delivered in sound byte bursts. Under such conditions plans adhering to rigid guidelines emphasizing X pages on Y subjects written in droll "biz-speak" will increasingly lose appeal. Thus planners must strive to produce customized output that guides diverse audiences through engaging stories to quick buy-ins of desired conclusions and solutions.

All of which can tend to leave presentation preparers struggling to find a plan for the plan. Available tools run the gamut from experts, online examples, software packages, informative web sites and books to courses, consultants and more. The multitude of recommendations flowing from this resource mass can prove confusing.

So, how does one come up with winning presentations in a period where the old rules are outdated and new guidelines are rapidly evolving? In my opinion success requires that responsible parties view each project with a mindset comprised of the following Concepts and Considerations:

Concepts

End Someone's Pain:
It's been said before. A business needs to solve something of significance and all plans must tell that story.

Compel:
A good story told professionally is mandatory. Stimulate your audience and cause questions you want to answer to be asked. This should initiate verbal exchanges, which is generally a very good thing.

Reason Why:
Always, always be sure you know the reason why you're including something in your plan. The reason why will always have at its heart a customer benefit.

Always Market:
Absolutely everything about a plan is a marketing device tout them as frequently and professionally as possible.

Simplify Numbers:
The executive summary and body of a plan should provide bottom lines only. Use one table in the ES and as few as possible in the BP body. They must say much with as little folderol as possible and appear simple. Your audience needs to focus on your business case not how you did your math.

Be Minimalist:
Use clear and concise language never overstate anything and attempt to eliminate passive words and statements.

Be a Business:
Nothing sells like sales. If possible be in business before writing a plan you'll know more when you're operational and it shows.

Watch Your Language 1 - Tech Talk:
Stay real as defined by your audience - inside terms can go over their heads and leave them in your dust.

Watch Your Language 2 - Sensationalism:
Let business performance or a skilled press agent create the sensational. Include the amazing, astounding, marvelous only if from an unimpeachable outside source and do so very sparingly.

Watch Your Language 3 - Buzz | Lingo | Acronyms:
Limit buzz, never use lingo or slang without qualification and watch out for acronyms. Hyping the hip can be confusing and is usually just plain wrong.

Stay On Task:
Know your subject and stay with it - don't wander.

Highlight The Customer:
Business customers are everything. Treat them like the gods they are or soon will be.

Use Creative Repetition:
Don't be repetitive but state the same key details frequently through creative wording and emphasis.

Be Brutal:
Never, ever allow a senseless error to make its way into a final plan or presentation. Become fanatic about math, logic and language accuracy.

Tie It Together:
Make sure all presentation materials are taken from a unified plan. The executive summary, plan body, appendices and presentation slides need not tell the entire story as stand-alones, but together must capture absolutely everything pertinent.

Ask Your Own Questions:
Know what your audience will ask and what you want them to ask. It is critical that all key subjects are covered.

TEST | TEST | TEST:
Run your plan by as many different people as possible before taking it live. Seriously, your mother, grandparents, kids, friends and "whoever" can help. Be certain of what they do and do not understand.

Considerations:

Executive Summary:
Two pages maximum, 15 concise paragraphs, one key table or chart, one on-point quotation (maybe), all of which briefly summarize the entire plan. This is your elevator presentation and it must generate an invitation to provide a full presentation.

Plan Body:
Eight pages that expand ES details, touch on all key subjects, provide needed highlights and inform enough to secure audience buy-in.

Appendices:
Provides necessary support and nothing more.

Presentation Slides:
Carefully prepared set of graphics configured to subtly add color and life to a presentation. Must be no more than 10 slides that augment, not repeat, written materials. Extra slides should be available to cover questions or other issues that the audience may wish to see or that you may want them to see if the "mood" is right.

Product or Service Demo:
Go live with the real thing. Impress and dazzle with a live demo and let your audience get their hands on what you have to offer. This must be a guaranteed success.

Ultimately there are as many ways to prepare planning documents and presentations as there are people or enterprises needing them. I'm hopeful the preceding assists in establishing a proper mental checklist for potential plan preparers before writing or selecting tools or specialists takes place.

The author is a management professional with more than 25 years experience in business development, growth, and marketing. He has worked in such diverse industries as temperature control, industrial gases, materials handling, medical devices and implants, food distribution, and agriculture as a senior manager for start-ups, foreign owned corporations, and giants such as Bristol-Myers Squibb.

Its The Business Stupid

2009-01-28T20:00:00.001-08:00

Writen by Kevin Dwyer

Bill Clinton's campaign headquarters was adorned with the words, "It's the economy stupid!" James Carville, Bill Clinton's political strategist in the 1992 election, placed a sign over his desk in the Little Rock headquarters: 'It's the economy, Stupid!' For a campaigner fixed on a need for a central theme, the sign encapsulated a pointed response to the question 'What is the campaign about?'."

The leaders of many organisations need to remember something similar as they get involved in day to day decision making. Perhaps a direct steal, "It's the business stupid!" would work. The need for clarity of purpose is relevant in day to day business and is also relevant when confronted with people bearing consultant tools. That goes double for consultants.

Many consultants tend to forget what the tool was created for and use the tool because "at this point in the analysis, this is the tool that needs to be used". The problem also befalls many people in businesses who have been trained to use tools at a business analysis course or some other training programme.

A simple example which I see all the time in my consulting experiences in Fiji is the SWOT analysis tool. SWOT standing for Strengths, Weaknesses, threats and Opportunities. A simple tool used at some stage by most organisations in analysing their business.

Too often the tool is used as a showpiece in a presentation or a business plan rather than an analytical tool to assist in developing strategies for the business.

In its proper use, an organisation will analyse its strengths as its resources and capabilities that can be used as a basis for developing a competitive advantage. Examples include patents, strong brand names, a good reputation among customers, cost advantages from proprietary know-how and exclusive access to high grade natural resources and favorable access to distribution networks.

On the other hand weaknesses are the absence of certain strengths. Examples include lack of patent protection, a weak brand name, poor reputation among customers, high cost structure, lack of access to the best natural resources and lack of access to key distribution channels.

An external environmental analysis may reveal certain new opportunities for profit or improvement. Examples include, an unfulfilled customer need, arrival of new technologies, loosening of regulations and removal of international trade barriers.

Changes in the external environmental also may present threats to the organisation. For example, shifts in consumer tastes away from the organisation's products, emergence of substitute products, new regulations, and increased trade barriers.

The analysis is used to then develop four different strategies.

One strategy is to pursue opportunities that are a good fit to the company's strengths. Another strategy is to overcome weaknesses to pursue opportunities. Another strategy is to identify ways that the organisation can use its strengths to reduce its vulnerability to external threats. And finally strategies may be explored to establish a defensive plan to prevent the organisation's weaknesses from making it highly susceptible to external threats.

In using the tool this way and by being brutally honest about what really are our strengths, weaknesses and opportunities and threats real strategies can be developed to improve the performance of the organisation.

Too often however, I find three glaring errors. The most common error is that after doing the SWOT analysis, no use is made of the analysis to develop strategies. The effort put into the analysis is usually substantial involving a team of people for a few hours at least. To not develop strategies form the analysis is to waste the effort that went into the analysis.

Another error is that the analysis output is totally inconsistent. The strengths look as if they were written by a management team with rose coloured glasses. The weaknesses are numerous and look like they were written by dis-satisfied employees as they contradict in detail the supposed strengths. This kind of analysis is a waste of time too.

The third common error is that analysis is completed without a clear idea of what goals the SWOT is being determined for. The SWOT of an organisation fixated on profit versus the same organisation fixated on safety is likely to be very different and yet another waste of time.

Completing a SWOT analysis without the view that it is being done to reach my business goals by developing and executing a set off strategies is analysis by numbers rather than intent. The tool becomes the end point rather than the process by which I develop strategies, tactics and plans to reach my goals.

Many other consulting tools are misused by people in organisations and by consultants. When we forget to think about our business in enough depth and use tools to make a nice presentation rather than to understand our business and take informed decisions about our business, we run a stupid business.

Kevin Dwyer is a Director of Change Factory. Change Factory helps organisations who do do not like their business outcomes to get better outcomes by changing people's behaviour. Businesses we help have greater clarity of purpose and ability to achieve their desired business outcomes. To learn more or see more articles visit http://www.changefactory.com.au or email kevin.dwyer@changefactory.com.au ©2006 Change Factory

Translation Service Companies Benefits Of Going Multilingual For Your Business

2009-01-27T20:00:00.001-08:00

Writen by Fred Zacharias

You've got a good quality product that converts in sales right? You pretty much have your niche tied around your pinky finger and know the ins and outs of every little detail with regards to your market demands. What if you could use what you already have, and instantly (well not quite instantly) gain access to a whole new potential market that is craving to buy YOUR product!

Trouble is, this market doesn't speak or read your language! So even in the odd case they land on your site, they cannot purchase anything. Click, click, is the sound that will be made as that potential customer moves on from your site to one that speaks their language.

Why is this important? Sure you probably think that in your market, you get most of your sales. You may be right depending on which markets you serve. But what if you found out that non-English speaking nations contribute upwards of 50% and more of total global commerce sales made online? Got your attention?

By having a strategy to go into new markets, you don't have to start from scratch. You just need to localize your product and find market participants that have a need for it. Then you sell, sell, sell! Of course it's not that simple, but going international can be considered one of the great latent profit potential pools available to your already established business.

Excellent foreign language translation guides and articles can be downloaded from our web page.

http://www.translationserviceguide.com

Business Development Strategy Next Years Planning

2009-01-26T20:00:00.001-08:00

Writen by Paul Lemberg

I'm amazed at how each year slips by just a little more quickly.

Only a few weeks ago I was running the San Juan River in Utah - blazing sunshine and ninety degrees in the shade. Now it's Fall already. And hey, I live in Southern California - in some places it's almost winter. Friends of mine back East are talking about 30 degree temperatures - or colder. Even snow flurries.

Blink - and it will be November, then Thanksgiving, and right its heels - New Year's. All of which is great if you love to ski, or snowshoe...

Which brings me to every businessperson's favorite indoor sport - planning.

Each year around this time I urge clients to dust off last year's business plan and compare it to what is really going on. Because many people - believe it or not - forget what they committed to for the year. Oh - they know their sales and profit projections - but most people don't pay close enough attention to the other issues. Things like market development, new customer growth, distributor relationships, customer services improvements, even new products: all the things that make it possible for a businesses to grow and prosper year after year.

If you haven't done so recently, now is a great time to review this year's results, and plan for the coming year. Take a look at how you are doing compared to how you hoped you would do. It doesn't matter what month you are in - just compare your results to date to this month last year. And if you've already built next year's plan, you may want to consider it in a new light.

The typical approach to planning goes like this:

Start by setting a goal for next year's sales growth.

This figure is often arrived at by multiplying last year's results by some acceptable factor. In business school they taught us to use 10% if we didn't have a better idea. This ten percent shows up again and again - I think it has something to do with having ten fingers. Standards vary from industry to industry - ranging from 5% to 25% . But in today's economy, many people will consider it a win if they just remain even with where they were last year.

Next, add solutions to a few key problems you've been meaning to address. Follow this by some enhancements to your product line - and there you have it - instant plan!

Those of you who've read my book know that I encourage people to think differently.

Here's a process I've used with all kinds of clients; it has led to some truly inspiring - and profitable - results:

Step 1

What do you - in your heart of hearts - want to accomplish this coming year? The key words here are "want to do." Not what do you think will happen, not what will the market let you do, but what do you want to do.

When you answer this question, it does help to think about things like money - revenue, profits, cash-flow (as if anyone wouldn't) - but also consider other non-monetary details as well.

Think about what new products or services you'd like to introduce, what markets you'd like to branch into, how you'd like to improve your relations with customers, how many new distributors you'd like to add, how you will make thing better for your employees, partners, even your community, and of course, what lifestyle and "work- style" changes you'd like for yourself.

For each of the targets and goals you are about to set - why do you want to set these targets. Make sure your reasons strongly support you.

Step 2

Learn what you can from whatever has happened over this past year. This is something many of us simply don't do.

For example, make this year the year you act on the knowledge that it takes three months to train a new distributor, not the four weeks you generally plan for. You'd be surprised at how many entrepreneurs repeat variations on the same mistakes over and over again.

Deliberately capturing the lessons of the past year, and thinking about how to use that new knowledge can provide major opportunities to boost profits.

Step 3

Set targets which will inspire you and your team and get out of bed every morning (even when it's snowing.)

Instead of using that 10% multiplier - or 25% or whatever - come up with growth numbers that you believe in and which will make it all worthwhile. Say you are committed to 35% growth. But you've never had more than 15%. Well how are you going to do that? What would it take? Is it possible? If you believe it is, but you don't know how yet, don't worry. You'll tackle that in a minute.

Step 4

Now is the time to review changes in your market.

Are there new factors - changes in customer buying behavior, shifts in the demographics, new issues in your industry and fresh competitor activity? Consider how these changes will make it easier or harder to achieve your bold targets.

Do any of these changes cause you to rethink the targets you've set? If so, go back and make adjustments you feel are necessary.

If you'd like a list of the kinds of questions I ask businesses, send an email to stratq@lemberg.com.

Step 5

Figure out how to reach the targets in Step 3.

How can you achieve the targets you just set? Do you know how? Will that plan work? You may have to work backwards using the Merlin Method. (For those of you who don't know, Merlin was a wizard who was born old and lived his life getting younger. What he called seeing the future was really just looking into his own past.) So use this idea to create action plans.

This is the method I use successfully with my consulting clients to transform their businesses. I'll give you a quick overview:

Visualize those bold targets as already met. Looking back from the future to the present, ask what was the final step or milestone you achieved before completing the goal? And what was the step before that? And before that? All the way to the present day. Check for reasonableness.

That's your action plan.

Believe me, this works! Do this for each of your targets and goals, then execute that plan, and you can almost guarantee a breakthrough year.

In a future article, I'll write more about the critical success factors you need to review.

Best regards,

Learn about our Business Coaching Franchise.

Visit Paul's Website for help with your Business Development Strategy?

Why You Need A Business Planning System Not A Business Plan

2009-01-25T20:00:00.003-08:00

Writen by David Coffman

When someone mentions business planning we have been conditioned to think about writing a business plan. There are hundreds of books and articles, tons of software, an army of consultants, and a multitude government programs to help you write a business plan. There are virtually no resources to help you set up what today's business environment really demands a continuous, ongoing planning system.

A commonly accepted theory is that for a business to survive and prosper it must be flexible and nimble. It must be able to turn on a dime as conditions warrant. Having a written five-year plan is not part of this picture. In fact, trying to follow a long-term plan during rampant change is not logical. It is applying linear thinking to a non-linear situation. It just doesn't work.

Having a formal, written business plan is so accepted as being crucial to success that there haven't been many studies or surveys to test this premise. If business plans were such a wonderful thing, there would be a significant and conclusive difference between businesses that have them and those that don't. Interviews of 100 founders of companies on 1989s "INC 500" list of fastest growing private companies in the U.S. found only 28 percent had "full-blown" business plans. The 1993 AT&T Small Business Study found that 59 percent of small businesses that grew over the previous two years used a formal business plan. A 1994 survey of the country's fastest growing companies found 23 percent lacked a business plan. "The Relationship between Written Business Plans and the Failure of Small Businesses in the U.S.," by Dr. Stephen Perry, surveyed 152 failed and 152 non-failed small businesses in 1997. He found that 64 percent of the non-failed firms had no written business plan. He also found that non-failed firms had more extensive written plans than failed firms, 23 percent compared to 9 percent, respectively.

As you can see the results of studies and surveys are all across the board and don't prove anything. Clearly, a significant percentage of successful businesses don't have written business plans. None of these studies reveal the nature of the process that created the plan. Was it the result of an annual process with occasional updates or an ongoing, continual process? As Professor Albert Shapero said, "Companies that plan do better than companies that don't, but they never follow their plan."

The focus needs to be on the PROCESS not on the plan. If a continual, ongoing planning process is in place, a written business plan is just not important. Writing a business plan without a planning system in place is a massive effort that is done very infrequently. Many businesses write three to five year plans and update them annually. The plans are reviewed periodically during each year to analyze the plan vs. actual variances. Little, if any, thought is given to strategy between the annual updates. Strategy should be the focus everyday. Setting up a planning system allows and sometimes forces you to focus on strategy.

A planning system consists of two functions. One is a goal setting and attaining process, and the other is a trend watching or environment scanning process. Setting up a planning system takes several steps. The first and foremost task is to set aside or make time for planning on a regular, ongoing basis. It must become part of your routine, not an occasional event that can be easily postponed. In the evaluation phase, the owner or management team and the company are analyzed. From the analysis, key or critical areas of the business are identified. These areas are filtered down to focus on the most important ones. Performance measures are determined and systems to gather and process the necessary data are set up, if needed. A base of current performance is used to set goals.

Now the regular, ongoing stuff begins. Strategies are formulated, tested, implemented, monitored, and reworked until the goals are achieved. Each planning session is split between working on strategies and trend watching. As goals are achieved, the goal setting and strategy formulation process begins again.

Let's put the focus back where it belongs on continuous, ongoing planning instead of writing business plans. As Karl Albrecht said in his book Corporate Radar, "The majority is not always right, the conventional wisdom is not always wise, and the accepted doctrine could well be flawed. The more fashionable an idea, the more it is likely to be exempt from critical evaluation. Breakthrough thinking sometimes calls for contradicting the most widely held assumptions and beliefs."

David E. Coffman CPA/ABV, CVA has authored a number of articles, reports, white papers, and books about small business valuation and planning topics. He founded Business Valuations & Strategies in 1997 to work exclusively with small businesses in these areas. His "Power to Prosper Small Business Planning System" is available at http://www.bus-val-strat.com

Get Maximum Gain From Your Contractor License Course

2009-01-25T20:00:00.001-08:00

Writen by Margaret Phillips

There are two approaches to gaining knowledge about the building trade industry. One method you can use it to go to contractor license school. The other is through practical experience and on the job training. To really stand out in your chosen trade, requires both.

When going to contractor license school, you have to learn the contractor license course, which includes a extensive assortment of subjects related to the construction industry. This means you have to choose which one of the 43 classifications of contractor license you would like to specialize in.

The contractor license course are classified into 3 major groups, Class A, Class B and Class C. Class A is for general engineering contractor, Class B is for general building contractor and Class C is for specialty contractor.

Class C includes the following sub classifications:

- Insulation and acoustical, lathing and plastering, boiler, hot water heating and steam fitting, plumbing, framing & rough carpentry, refrigeration, cabinet, mill work and finish carpentry, roofing, low voltage systems, sanitation system, concrete, sheet metal, drywall, electrical signs, earthwork and paving
- Solar, electrical (general), general manufactured housing, fencing, steel, reinforcing, flooring and floor covering, steel, structural, fire protection, swimming pool, glazing, tile (ceramic and mosaic), warm-air heating, ventilating and air conditioning, water conditioning, building moving and demolition, water well-drilling
- Ornamental metals, welding, landscaping, lock & security equipment, masonry, construction zone traffic control, parking and highway improvement,
- Painting and decorating, pipeline and limited specialty

The contractor license course includes the Class C Limited Specialty sub classifications, which include the following:

- Awnings, central vacuum systems, concrete-related services, drilling, blasting & oil field work, elevated floors, synthetic products
- Hardware locks & safes, machinery & pumps, metal products, paperhanging
- Doors, gates & activating devices, pole installation & maintenance, pile driving/pressure foundation jacking, pool & spa maintenance
- Prefabricated equipment, scaffolding, sand & water blasting, siding & decking, service station equipment & maintenance, tree service
- Sign installation, window coverings, suspended ceilings, trenching, wood tanks, air & water balancing, hydroseed spraying, construction cleanup
- Weatherization & energy conservation and non specialized

Dealing with such a wide variety of subjects could be a major headache. You need to be able to plan ahead and decide which direction you want to go with your contractor license course. Here are some tips to make your contractor license course work for you:

1. Decide which contractor license course will best fit your skills and interests. If you have experience installing roofs, then take that one to gain more knowledge. If masonry is your forte, then go for that type of contractor license course.

2. Time management should be a priority. Make sure you give yourself enough time every day to get your studying done for your contractor license course.

3. Don't restrict yourself to the material they present to you in the contractor license course. Make use of your local library for additional reading material or go online for more research. Connect with other contractors and share opinions and experiences about construction problems.

4. Make use of case studies to further improve your studies. These cases can greatly supplement your contractor license course.

The study material in the contractor license course is not necessarily the freshest information. As a future contractor, you should strive to be up to date with the latest practice and newest materials used in your trade. Consumer reviews and the Contractors State License Board are good resources on the state of the industry.

You customers only want the best from the contractors they employ. By anticipating the needs of consumers, and improving and modifying the contractor license course, will bring a lot of business in the future and build a stronger construction industry.

Carl Lewis is a freelance writer and contributor to Contractor License Tips. For more contractor license resources please visit Contractor License Tips.

Making Roi Simple And Useful

2009-01-24T20:00:00.001-08:00

Writen by Jim Deyo

Ask yourself these questions. When you make any "investment" in your business, do you just "do it because you have to," or do you figure out what it's really worth? Do you struggle once in a while choosing between two alternatives? When you hire a new employee, do you calculate what you have to get back? How about when you spend your own time doing something? Can you explain to your customers the specific value of what you sell to them? Does your business "think" in terms of ROI?

If you're answering any of these (or similar) questions the wrong way, you might be selling yourself short. Keeping your eye on the return on every "investment" you make is critical to the long term success of your business. If that was hard to do, or took you a lot of time, you'd have a good excuse not to bother. But, it's not hard, you can do it in a few minutes, and it will give you a very different perspective on choices you think about every day.

Let's take the mystique out of Return On Investment - it's just not as complicated to calculate as it may seem. Small business owners have to deal with ROI questions a lot more often than they think and the concept doesn't have to be as difficult as a financial analyst, or a CPA makes it sound. So, let's define in simple terms what ROI really is.

Investment: The amount of money you have to spend to do something - anything, really, like buying a truck or a building, starting a new product line, hiring another employee, or even deciding whether or not to spend your valuable time on some project. This investment can be cash that you have on hand, or money that you borrow.

Return: The income, or cash stream that you expect to receive over some reasonable, predefined time period, because you made the investment.

ROI: The average interest rate that you will earn over your predefined time period for trading the money you have today for the income you will earn in the future.

A Good Deal: The present value of the income you get in the future exceeds the investment you make today.

When you think about ROI, it's important to remember that you have to equate the value of the investment you are making today with the value of the cash you will receive in the future. In other words, you have to think about the present value of those future cash flows, because they are not worth as much in the future as they would be if you had them today - if you had them today, you could invest them and earn interest. So, in ROI calculations, the discount rate is the assumed interest rate you have to earn on those future cash flows to equal the investment you are making today.

Think for just a moment about what the discount rate in the ROI calculation really means. Assume that you have $100,000 to invest and that you have three investment alternatives. You can invest the money in government bonds and get a "risk free" return of about 4.5%. If you prefer to invest the $100,000 in the stock market, you're taking on more risk, so you need a higher return - maybe 8% to 10% to compensate you fairly. Now, what if you want to invest the money in a new product line? If you can get 4% with no risk and 10% by going into the stock market, what return do you need to risk losing all of your $100,000 - maybe 15% to 20%?

ROI represents a very useful thought process that should be applied to a lot of the decisions small businesses have to make. Doing the calculations and knowing the numbers is not nearly as important as just thinking in terms of ROI. Investments are not always those big deals where we actually write a check. Sometimes they are as simple as how people are going to spend their time, or the additional income you might realize from selling more of your product or service. We have choices about what people do, how they spend their time, and what things we are going to emphasize; applying the ROI thought process makes it easier and more efficient to choose between the alternatives that you have. And, if you invest ten more minutes looking quickly at the two examples below, you'll see that there is an easy way to get a handle on the ROI of virtually anything you do.

Every business has a different tolerance for risk and will make different assumptions about what the investment potential of different choices might be. The point, though, is that we too often don't think about ROI and quite often don't look at the actual numbers. Don't allow your business to be one that doesn't take the time to look at this appropriately.

If you would like to access an easy to use ROI Model to calculate the return on one of your investments, just sign up for our free trial and be our guest.

Jim Deyo is the President of Business Advisor Online, an internet based service that provides small businesses with the ideas they need to grow and the resources they require to make the right decisions. As a former Sr. Vice President with a major banking institution, Jim worked extensively with small and medium sized companies and has over 30 years experience in commercial and consumer lending, accounting, finance, marketing, and strategic planning. Visit the website at http://www.businessadvisoronline.com and sign up for a six week free trial of the service, or e-mail Jim at jimdeyo@businessadvisoronline.com.

Stretch Goals Pushing The Limits Of Your Companys Comfort Zone

2009-01-23T20:00:00.001-08:00

Writen by Jim Deyo

Are you satisfied when your business achieves average results? If you could be the "best" in your industry, but the industry only realizes average results, would you be satisfied with that? If your answer to either of these questions is "yes," don't waste your time reading more of this; if the answer is no, at least look at this example.

In 1960 the Soviet Union shocked the world by putting Yuri Gagarin into orbit around the earth. Then they did it again eight months later. The United States' anemic response was to put Alan Shepard into a sub-orbital flight in 1961 and to put John Glenn into orbit in 1962. We were seriously behind in the space race. Then in 1962 President John Kennedy announced that the United States would "put a man on the moon by the end of this decade and return him safely to the earth."

But, here's the most startling thing about that announcement - we had no idea how we were going to do it! We hadn't built a space capsule that would make the trip. We didn't have a rocket big enough to get the capsule into earth orbit, let alone send it to the moon. We had never docked two things together in space. No human being had ever walked in space. We had never orbited anything around the moon - we hadn't even crashed anything into it.

All of these tasks had to be mastered before we could be successful and we hadn't done any of them. And yet here was the President of the United States proclaiming that we were going to get to the moon in less than eight years. Kennedy has been applauded by history for the vision and the strategic thinking he showed in setting this national objective. But it was also a "stretch" goal, if there ever was one; and that's not the way most businesses work in the real world.

Before we get into stretch goals, however, let's put something on the table - they are not for everyone. The real issue for any business is why bother with them at all - why do you need the aggravation of being on the cutting edge? What's so bad about being "average" especially if you're comfortable, making the living that you want to make, and leading the life you want to live? So here's the second opportunity to stop reading; if being average is where you are, the rest of this is probably not going to impress you much.

Most businesses are very "incremental" about what they do. Businesses managers look back at what they've accomplished over the past few years, make a quick assessment of the way the economy looks, and say to themselves "5% seems about right." It's hard to break old habits. Going for stretch goals normally involves taking risks and we've conditioned ourselves to avoid that, unless we are sitting on a "burning platform" and the risk of following the path we've always been on is obviously greater than the risk of doing something different

But, here's the problem with being incremental - there is always someone else "out there" who sets the curve, who redefines the way your business is being done, and who has an idea that shakes things up. You may not even know it's happening;"the landscape is littered with businesses and industries that "didn't see it coming." So, while you are sending the message to your people that they can perform at the same comfortable, do-able, non-threatening pace that they always have, someone else is doing a better job and setting you up for a broadside that you may not see coming until it's too late.

Don't tell yourself this is a "big company" problem - it has nothing to do with size. Smaller businesses fail every day, because they became too comfortable with what was going on around them and didn't look down the road. Small business owners and managers are no less prone to freezing up in the face of change than large corporate managers. Too many times, when changing the strategic focus, or creating a new product line, or moving to another location, or taking some other bold step was the "right" answer, small businesses ended up failing, because they kept doing the same things instead.

A stretch goal is something that you've never done before and that you don't know how you're going to accomplish. It's new, it's different, it's radical, it's hard - maybe it's always been considered "impossible." Like going to the moon, you think it can be done, but you don't know how you're going to do it. Sometimes you can't prove to others that it can be done by pointing to someone else who has done it before - because it hasn't been done before. And, even it has been done by someone else, it hasn't been done by you!

So, again, why bother with stretch goals; because very few businesses set them, fewer still actually achieve them and they are a way to differentiate your business and create real competitive advantage. It's human nature to want to take the path of least resistance and challenging your business with a culture of stretch goals is difficult. If you are facing a crisis, it's easier - you either stretch, or you fail. If the platform is not burning, though, and the crisis is either not staring you in the face, or is far enough over the horizon to not worry about - it's hard to get people's attention!

Achieving stretch goals doesn't happen without someone leading the process; too much change has to take place and change never happens without someone making it happen. But, when you lead by setting and achieving stretch goals, the people you are leading can be happier for two reasons - your company is a lot more of an interesting place to work and they'll feel as though they made a contribution and are part of something. Those two benefits are a lot more important in the long run than paying your people a few bucks more.

The power of stretch goals is that they force you and everyone in your business to reorient themselves and to think differently. They force you to work backwards from the goals you have set and to think about what you have to do to achieve them. You can't just do things the same way that you've always done them. It's not a linear progression of just doing the same thing, but doing more of it to succeed. You have to think about every facet of your processes and determine what has to be done differently to achieve your goals.

Take a few minutes and think through a real stretch goal for your own business - 50% sales growth for the next three years, a 25% increase in your margin, a significant geographic, or product expansion, doubling your inventory turnover - anything that is difficult and that some people would say can't be done. Now work backwards from that goal and think through all the things you would have to change to make it happen.

In the end, what you are really after is a culture for your business that separates it from the pack and that gives you an edge that others can't find. Having a stretch goal mentality will help you get there. It's not going to be painless and it's not going to happen over night; but, when you work toward creating an environment where people think in terms of what could happen, instead of what always does happen, you've accomplished something that most companies never even think of, let alone do!

About The Author: Jim Deyo is the President of Business Advisor Online, an internet based service that provides small businesses with the ideas they need to grow and the resources they require to make the right decisions. As a former Sr. Vice President with a major banking institution, Jim worked extensively with small and medium sized companies and has over 30 years experience in commercial and consumer lending, accounting, finance, marketing, and strategic planning. Visit the website at http://www.businessadvisoronline.com and sign up for a six week free trial of the service, or e-mail Jim at jimdeyo@businessadvisoronline.com.

Consulting Firmswhen And How To Hire

2009-01-22T20:00:00.003-08:00

Writen by John Fisher

I've got a consultant on retainer but he only comes in so often and if I need more than what we've agreed to it always costs more than I can budget. How often I have heard this statement. It goes back to the question we should have asked in the first place- " What services does my company need and can an individual consultant fill those needs or is there an organization out there that can multi-task ?"

Many companies have to make their managerial staff and/or administrative people take on multiple roles in order to be able to cover everything required of them. Especially in the industries where they have to comply with regulatory issues. Economically it may not be feasible for them to hire a consultant that works on a retainer system or that is actually a Subject Matter Expert limited to a specific area of expertise. They are also dealing with issues of finding the right "fit" with a firm that can offer multiple services under one entity.

In actuality there are many more options out there than most are aware of but to find them and determine whether they fit your specific needs or not requires doing several things. First you must determine as exactly as possible what your needs are. Than come up with a series of questions for prospective service providers that depending on their answers will; satisfy you as to their actual expertise, if they have the ability to handle whatever workload they might agree to, establish at least a rudimentary feeling for reliability and will their philosophy and work ethic mesh with yours.

If (and after) you determine that you can progress further with acquiring a service provider you should ask for fairly detailed drafts and/or explanations of what the end results will be when the consultant and/or service provider has completed the tasks you will hire them to perform. Once satisfied with all of these things you than need to look at the economics of hiring an outside contractor.

The reason I have placed the money issues last is two-fold, if you have not accomplished the above described screening process and reached a satisfactory agreement than you are going to more than likely going to spend money and be unsatisfied with the results. If you have completed the screening procedure and you and the provider are comfortable with the working relationship the money spent, even if you think it a bit too much will be worth it because you almost always be satisfied with the results, and if something is not satisfactory you can feel more comfortable with the fact that it will be fixed with the minimum of time, expense and turmoil.

The downside (if there is one) to this process is the time and effort you will be investing up front in order to locate and pre-qualify a service provider. However I feel that that investment is one of the wisest you can make and still accomplish your goals.

John Fisher is a Consultant, Speaker, Author, Educator and Trainer in the Safety and Health industry. http://www.atozconstructionsafetytraining.com

Purchasing Consultants

2009-01-22T20:00:00.001-08:00

Writen by Damian Sofsian

Businesses operate in circumstances which are caused as a result of macro- and micro-economic factors. Macro-economic factors are due to myriad forces such as political stability and unforeseen natural calamities upon which businesses have little or no control. For instance, businesses have little control over oil price hikes caused as a result of war in certain parts of the world.

Micro economic forces are those which act upon the industry or firm. Businesses may react by seeking and allocating internal resources to prompt a strategy to solve them. In most cases, a business may not have the resource as the firm itself runs with optimal resources. Management consultants pitch in for such situations with their valuable expertise and resources. They have resources according to the industry and function. Purchasing consultants have expertise in the areas of supply chain management of different industries.

In most of the organizations, purchasing reports to operations. Hence most of the management consultants who have operations expertise consulted on problems related to purchasing. Purchasing consultancy evolved from the need for IT in purchasing function and the transition from tactical to strategic function. As IT was integrated into the business functions, firms needed to know the level of automation and the different systems available in the market.

Globalization and competition forced the purchasing from a transition role to a strategic role: from cutting costs to managing suppliers, from confrontational behavior to collaborative. This necessitated strategies to engage the suppliers, evaluate them based on the new criteria, and help firms formulate strategies to go global.

Manufacturing firms spend more than half of their operating costs on materials and parts. Hence most of the consultants focus on manufacturing industries. For instance, the automobile industry with many tiers of suppliers for parts and modular supplies presented great scope for cost reduction and supplier involvement in new product development. They provide consultancy in contract management, ecommerce strategies.

The cost of consulting prohibits small and medium enterprises to hire consultants. There are online services to post the problem so that consultants are pulled to the firms, thereby eliminating search costs.

Purchasing Software provides detailed information on E-Procurement Software, Purchasing Consultants, Purchasing Management Software, Purchasing Outsourcing and more. Purchasing Software is affiliated with Free Budgeting Software.

Create A Business Plan

2009-01-21T20:00:00.003-08:00

Writen by Dave Lavinsky

When enterprising individuals sit down to create a business plan for the first time, they need to check a few points. There are abundant guidelines to help them on their track, but none to warn them against the wrong policies. It is essential to avoid these mistakes in order to create a business plan that will truly take your business forward.

You should resist an undue optimism when you create a business plan. Make very conservative estimates while predicting future sales, profits, capital requirements and timelines. It is the rare business plan that accurately anticipates how much resources and time will be required. Exercise extreme caution while predicting the future costs, or you might have to discard the plan midway.

Avoid the technical jargon; your language should be simple and easy to understand. Don't gloss over the weak points; list them so that you can correct them in the future.

When you create a business plan, don't get carried away by the future projections. Put limits on the long-term projections. Rather, focus more on the projections for the current year. The long-range goals should be defined and then broken down into small-term objectives that are consistent with the larger picture.

Inventions rarely make for good business; so don't depend unduly on the uniqueness of your product or service. Refrain from making false and grand projections. Present a realistic picture of your business. Try not to play all roles, get highly focused specialists to ensure the best results.

Always start with the essential financial, accounting and software know-how. This will help you retain your grip over the enterprise. Wonderful concepts sound great and look even better on paper. But never base your business plan on them. Perform adequate market research and test market the prototype before you decide to launch it.

Execute your carefully prepared business plan and get successful.

Since its inception, Growthink Business Plan Development has developed over 350 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. Growthink has become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know. For more information on this topic please visit http://www.growthink.com/businessplan/ or visit our venture capital placement site at Growthink Venture Capital.

Important Facts About Strategic Planning

2009-01-21T20:00:00.001-08:00

Writen by Ross Lincoln

Every person has a goal; regardless of what areas of their lives it is being associated. A goal will remain a goal unless it was successfully achieved. Many would ask why some people are successful and some are not. Well, the answer lies on strategic planning.

Strategic planning is the process of developing strategies and defining objectives to reach a particular goal or set of goals. If you labeled your planning as "strategic" then you must expect that it would perfectly operate on a grand scale. It will achieve success in a broader field.

It is very different from "tactical" planning which focuses more on individual detailed tactics of activities. "Long range" planning however projects current programs and activities into a modified outlook of the outside world where it describes the phenomenon that will likely occur.

Strategic planning is creating more desirable results in the future through influencing the external world, and adapting current actions and programs to achieve a more favorable result in the outside environment.

There are different reasons why most people are doing strategic planning.

1. To acquire the capability in obtaining the desired objectives.

2. To fit well on both the organization's core competencies and resources, and to the external world. Make sure that your plans are appropriate and feasible.

3. To acquire the capability in providing competitive advantage that is sustainable within the organization.

4. To prove that it is flexible, dynamic, and adaptable even to changeable situations.

5. To be sufficient in providing favorable results without cross-subsidization.

These advantages will not be realized without its methodologies. Strategic planning depends on STP (three-step process) process. "S" for situation where it was been thoroughly evaluated, "T" for Target where goals and objectives are defined, and "P" for path where the routes of goals and objectives are clearly mapped.

However another alternative approach can also be used. It is known as the Draw-See-Think-Plan procedures. "Draw" creates the desired image and achievements. "See" evaluates current situation and detects gaps between ideal situation and current situation. "Think" develops specific actions that must be done to bridge the gaps between ideal situation and current situation. "Plan" lists down required resources for the execution of activities.

Strategic planning is also considered a set of creative and logical steps.

1. It clarifies the objectives to be achieved. These objectives are ranked according to the level of its importance. It can either be TRO (Top Rank Objective), 2nd Rank Objective, 3rd Rank Objective and so on. The lower rank objectives answers the "How" question while higher rank objective answers the "why" question. However TRO is exempted because the objective here is defined.

2. It gathers and analyzes the information. It includes internal assessment on resources, and external assessment which include environmental scanning. Morphological analysis is used by both internal and external assessments. SWOT analysis can also be incorporated to assess the aspects of environments and organizations that are essential in achieving the strategic plan objectives.

3. It evaluates objective feasibility in the SWOT view. SWOT is the acronyms which stands fro Strengths, Opportunities, Weaknesses, and Threats.

4. It develops strategy involving SWOT.

5. It develops action programs creating a more attractive strategy.

To summarize everything, strategic planning provides overall strategic direction on the core management of the company. It gives a more specific direction in areas such as marketing strategy, financial strategy, human resource strategy, organizational development strategy, and deployment information technology strategy to achieve success.

Ross Lincoln makes it quicker and easier for you to create profitable business ideas, develop your marketing strategy or start brainstorming on any topic. For a free trial of the ultimate innovation software, please visit http://www.ideacenter.com.

Napoleonic Lessons For Google Amp Microsoft

2009-01-20T20:00:00.001-08:00

Writen by Jawad Shuaib

Napoleon Bonaparte was arguably the most strategic mind set to war. As we shall see later, his strategic brilliance, however, is equally applicable to the competitive world of Business; and in this case, Microsoft's rivalry with Google.

A little history

Microsoft, the world's largest software vendor, has been around for quite a long time. Its target market is mainly selling operating systems and office applications for the desktop computers. Microsoft products are sold to computer manufacturers, i.e. Dell Computers, who in turn install and ship Microsoft software package to the consumers. So in a sense, consumers end up writing Bill Gates a $100+ check without ever knowing it. This is how Microsoft became to dominate the computer desktop industry and turned Bill Gates into modern day Henry Ford.

Google, on the other hand, is a relatively new company. It blossomed during the dot com boom, and eventually came to dominate the online search engine business. Today, Google attracts more than 200 million unique queries on its search engine every day; statistically speaking, each query generates 12 cents for the companythat is 8 zeros multiplied by 12! Google, for the most part, profits through its search based advertisement technology known as Adwords. Adwords makes online advertisement approachable in terms of easiness and affordability. Adwords, combined with a similar technology called Adsense, made Google endless amounts of cash. Google, today, is the undisputed champion of the online world.

How they became enemies

"When you set out to take Vienna, take Vienna" - Napoleon

Until recently, both Google and Microsoft were living in harmony. The masses used Microsoft's Internet Explorer to surf Google's search engine. However, internet's seemingly unstoppable growth since the early 2000 began to attract the attention of many industries. Microsoft executives clearly saw Internet as the next big thing; possibly a market worth pursuing. Meanwhile, Google continued to make unprecedented strides within its search engine market. Having generated enough cash, however, Google took a different direction; founded by technology enthusiasts, Google began to enter various markets unrelated to its search business. Rumors began to spread that Google is building an online "free" Operating System and various other tools such as an alternative version to the dominating Internet Explorer. This, as you might have guessed, ticked off Microsoft, and it took the bait and decided to roll its war drums against Google. Microsoft, by the way, is not the only company that feels threatened by its presence. Other internet giants, such as AOL, Yahoo! and eBay, are also feeling the heat ever since Google embarked on its journey towards dominating any market of technological interest. Google innovated in markets that already existed and, surprisingly, came about to dominating them. For Microsoft, it was a threat worth neutralizing. Today, Google has its hands in web search, email, online videos, calendars, news, blogs, desktop search, photo sharing, online payments, social networking, instant messaging, WiFi, word processors, web hosting, web browser, search tool bars, spreadsheets, discussion groups, maps and more.

Before long, Microsoft, AOL, Yahoo! and eBay maneuvered to encapsulate Google's ever-growing strength. Over two hundred years ago, Emperor Napoleon, the Google of his day, found himself in a similar situation. Russia, Prussia, Austria and Britain had decided to go to war.

The drums of war

"Never interrupt your enemy when he is making a mistake" Napoleon

Microsoft's take on this war is quite different from that of Google. Eric Schmidt, Google's chief executive, has repeatedly alleged that the online market is not a zero-sum game; in other words, it is possible for two or more players to dominate a large share of this market. Microsoft is not used to this. In the past it has decisively eliminated any competition, and taken the throne for itself. Consequently, Microsoft has publicly declared an all out war on Google.

Ironically, Google is the company that is on the attack; it has been aggressively pursuing Microsoft's market. However, using clever tactics, it has intimidated Microsoft to appear as the aggressor, while Google quietly carries on with its business. In other words, Google has lured Microsoft into a rash attack; when it ends up in disaster, Microsoft will have only themselves to blame, and everyone around them will blame them, too. Google will win both the battle of appearances and the battle on the field. Very few strategies offer such flexibility and power.

It takes more energy to take land than to hold it. Throughout history, defensive tactics have won more battles than the aggressors. After the first wave of siege, the aggressor loses the advantage of surprise attack and leaves himself exposed to a counter attack. The defender can clearly see his strategy and take protective action. Napoleon's most celebrated victory, the battle of Austerlitz was a counter attack, defeating a larger army with a kill ratio of 15 to 1. A defensive position has become the perfect way to disguise an offensive maneuver, a counter attack. Google has repeatedly asserted that it is not interested in competing with other businesses; it is a web search business only. They have used this facade to make Microsoft's concerns with the company seem paranoid; a clever move that worked. The fact remains that Google is a powerful secretive company, driven by smart people, and for a cause.

Do No Evil

"In war the moral is to the physical is as three to one"- Napoleon

In his day, most emperors preferred to hire mercenary armies simply because maintaining a healthy army of their own came at too much of an expense. Napoleon reversed this setback by recruiting young French loyalists more eager to fight for a greater France than for the money. As a result, during battle, French soldiers swiftly defeated much larger mercenary armies. My point? Bring people together around a cause and you create a motivated force.

With a 60% stake in the U.S. web search market, one might expect Google to have mottos of the kind "Let Google do the searching" or perhaps "Search fast, search Google". On the contrary, Google's motto is a simple "Do No Evil". Recently, web search companies were asked by U.S. intelligence agencies to transfer private data on user searches over to them; while other web search companies concurred with them, Google saw it as evil and denied. This decision alone drove Google's shares dwindling down several points on the NASDAQ, but Google remained true to its "Do No Evil" maxim. Google has come to be seen as a company driven not by the incentive of making money, but rather by the pursuit of knowledge through technological innovation; as a result, the company has used this justification to convince its competitors that it is not interested in defeating competition, but rather providing easier access to information for everyone, and hence making the world a better place. Google keeps its business silent and only attracts attention to the technological goodies it has brought to the masses. In fact, Google's Machiavellian tactics have worked so well that most of its users do not even know how or if Google makes money.

Google's army of 7000+ employees are loyal to the company. Over at Microsoft, the employees, especially senior executives, feel caged within the company; leaving Microsoft for Google might bring a lawsuit from the company, as it did for Kai-Fu Lee. To Microsoft's credit, Google is simply reaping fruit from the hype that Microsoft once enjoyed. Sooner or later, the quality and quantity of potential employees will inevitably decrease in size as the excitement around Google is neutralized.

Mobility through decentralized command

"Separate to live, unite to fight" - Napoleon

Genghis Khan, like Napoleon, was a master of mobility in war. In a very short period of time, his empire stretched from Korea all the way to Europe. Neither two conquerors could have expanded like they did if it weren't for mobility. Mobility was the key to decisive maneuvering during battle. Varying in size, from 15, 000 to 30, 000 men, each corps was a miniature army headed by a miniature Napoleon. Fluid, Fast, and Nonlinear. At the battle of Ulm, Napoleon completely surrounded the Austrian army within a few hours; cutting off any channels of escape or reinforcements. The Austrian emperor was forced to surrender an army of 30, 000 soldiers.

For a large company like Google, the hierarchy within the company is quite small. Google organizes employees in teams of three to five people. Each team is self directed, while the middle managers provide the required resources to support development within the teams. As a result, Google has fashioned a powerful self-directed decentralized approach towards product development. The consequence of such an arrangement is that there is no keystone employee or manager within the company. It is almost as if the company could run on its own even if it were divided into several smaller pieces. Forbes magazine described the phenomena this way: "Innovation will flourish for as long as the masses are running Google. When management forcefully steps in, the pace of change will slow." Microsoft, on the other hand, has a well known bureaucratic problem. There are over 12 layers of middle managers between executives and the developers. As a result, the company takes the course that its top managers set for it. Instead of allowing innovation to originate from developers, it flows from top level managers to code-monkeys at the lowest base. This is quite common in other companies as well. The natural tendency of a top manager in any company is to want to control the group, to coordinate its every movement, but that ends up tying the company to the past and to the slow moving armies in history. It takes strength of character to allow for a margin of chaos and uncertainty-to let go a little-but by decentralizing army and segmenting it into teams; company managers gain in mobility what they lose in complete control. A critical step in creating an efficient chain of command is assembling a skilled team that shares the same goals and values; once this is achieved, the top managers at Microsoft can contentedly allow the teams to think and direct on their own. As Joel Spolsky puts it, "The goal of any business owner should be to break his/her job into functional pieces that can be replicated over and over."

"The goal of any business owner should be to break his/her job into functional pieces that can be replicated over and over." Joel Spolsky

Google Achilles:

"Four hostile newspapers are more to be feared than a thousand bayonets" - Napoleon

Napoleon demanded unprecedented loyalty from his men. When in 1815, Napoleon escaped from Elba and returned to the mainland, King Louis XVIII sent the Fifth Regiment, led by Marshal Michel Ney who had formerly served under Napoleon in Russia, to fight him at Grenoble. Napoleon approached the regiment alone, dismounted his horse and, when he was within earshot of Ney's forces, shouted "Soldiers of the Fifth, you recognize me. If any man would shoot his emperor, he may do so now". Following a brief silence, the soldiers shouted "Vive L'Empereur!" and marched with Napoleon to Paris. The strength of his image echoed in the hearts and minds of, both, his allies and enemies. He described this himself as "I have destroyed the enemy merely by marches" Whatever a company's strength might be, it is actually a potential weakness, simply because the company relies on it: neutralize it and the company is vulnerable. A company's task is to put its competitor in a situation in which it cannot use its advantage. Google's advantage is its brand.

"Public opinion is the thermometer a monarch should constantly consult" - Napoleon

The Wall Street judges Google's worth in terms of its shares value in the stock market. As of July 29, Google is trading at $388.12 per share, the highest bid/share I have ever heard. However, Google's out of the charts performance in the stock market is a weakness in disguise. Wall Street isn't thrilled with Google's secretive style of management, so the investor loyalty could be swayed quite easily. Google will lose its extraordinary command of the NASDAQ as soon as conditions stop favoring them. Google might have a strong user base, but its investor loyalty is at dismay. Without Wall Street's backing, Google will lose its share not only in the stock market, but in the public relations department as well. Google feeds off its brand, so any successful attack on its image will cripple the company even when it continues to generate cash.

Google depends on its hype. But hype does not stick around forever.

What Can Microsoft Do

"To extraordinary circumstances we must apply extraordinary remedies" - Napoleon

Google is successful not just for its technological innovation, but also for the command structure that makes this innovation possible and. Hence, to solely attack Google's technology is a mistake since Google will always manage to innovate with quick decisiveness, as it has in the past. Google's Achilles heel is its Adwords system; its money machine. Without it, Google can neither grow nor innovate.

The general rule for defeating any large army is to launch the attack on as narrow a front as possible. Whereas a defender must defend all their borders, an attacker has the advantage of being able to concentrate their forces at one place. By releasing, what seems to be a product every week, Google has stretched too thin. Aside from search and email, Google products are essentially at the mercy of another competitor, say Microsoft. Microsoft, with its MSN Search, cannot possibly defeat Google in search business, it is Google's core business and the company will protect it however possible. Sun Tzu stated this in the Art of War as "Put your enemies in a spot where they have no place to go, and they will die before fleeting. If they are to die then, what can they not do? Warriors exert their full strength. When warriors are in great danger, then they have no fear. When there is nowhere to go, they are firm, when they are deeply involved, they stick to it. If they have no choice, they will fight to death."

"Put your enemies in a spot where they have no place to go, and they will die before fleeting. If they are to die then, what can they not do? Warriors exert their full strength. When warriors are in great danger, then they have no fear. When there is nowhere to go, they are firm, when they are deeply involved, they stick to it. If they have no choice, they will fight to death" The Art of War

Microsoft should adopt a partial non-competitive strategy. Instead of publicly and pragmatically target Google's main business, it should, with surgical precision, covertly attack products Google doesn't pay much attention to. Google's policy to let beta products become widely accepted organically is a weakness waiting to be exploited.

There are many non-conferential strategies Microsoft can adhere to:

1. The giant can enter markets that Google would never tackle; Microsoft's success in the gaming and music industry strengthens this point. Furthermore, Microsoft can let its allies (i.e. Yahoo!, AOL, eBay etc) confront Google in markets Microsoft wouldn't want to.

2. Google, with its recent release of Open Source project hosting, has subtly brought on its side a smart culture of developers who already dislike Microsoft. This form of passive strategy is what Google is best at. CEO Eric Schmidt once stated that a company's success lies in its programmers. Microsoft can hire more talented engineers. If there are two equally intelligent students competing for the top position, all they have to do is study 5 minutes more than the other would. Taking that one extra step in hiring employees will have a significant impact on the company's business.

3. Be more reserved. An attack kept silent has a better chance at succeeding than one that is clearly perceived and understood by the enemy. As Niccolo Machiavelli puts it "No enterprise is more likely to succeed than one concealed from the enemy until it is ripe for execution."

"No enterprise is more likely to succeed than one concealed from the enemy until it is ripe for execution." - Machiavelli

4. Decentralize product releases. Instead of passing product decisions through a layer of eleven managers, let the product innovation come from the engineers responsible for designing them. A much more effective road that Microsoft can take is to provide seed capital for other startups releasing products competitive to Google. This has several advantages. Startups are more focused and motivated. Microsoft wouldn't have to expend excess resources into startups since they can also rely on other VC's. Since startups can think and manage themselves, this will decentralize innovation and also rid Microsoft off its 11 layers of management.

5. As mentioned previously, Google's vital organ is its ad delivery mechanism. If Microsoft successfully releases a better system for delivering advertisements, it will decisively capture Google's hold on ad publishers. Due to Microsoft's huge hotmail user base, the company has an excellent opportunity at delivering more targeted advertisements.

6. Lastly, Google focuses a very small team, usually 3 to 5 engineers, on its beta products. Microsoft can take advantage of this by focusing more resources on similar products. Even though, smaller teams innovate faster, larger, more resourceful teams, have a better chance at success. A successful product requires the collective effort of more than just the engineering department.

"Between a battle lost and a battle won, the distance is immense and there stand empires" - Napoleon

Conclusion

Napoleon's tomb In the end, despite his genius, it was Napoleon who became overwhelmed by counter forces and lost. Unprecedented success often causes blindness. My advice for Google is to continue its rapid innovation but also put a tap on its uncontrolled product releases. As for Microsoft, despite the company's several ill conceived tactics, it has a lot of potential for improvement and much to learn from its rival, Google.

Notes:

(1) Some excerpts were taken from "33 Strategies of War".

(2) Despite the critical tone of this article, I can't help but think how dull the tech world would be without either of these companies. I will gladly take down any part of this article if anyone at, either company, is disturbed by it.

(3) I didn't write this solely for the purpose of comparing Napoleon's strategies with that of Google or Microsoft. I wanted to write a piece that gave a strategic analysis for both companies. I wish I could've written some more on this subject, but thought most readers would fall asleep. I can't write, I am an engineer.

(4) Any research on this article was done through Google. The article itself was written on Microsoft Word.

I am a jobless undergraduate studying Electrical Engineering at Ryerson University, Canada. My interests include military and corporate strategies, business, economics, history, religion/philosophy, politics, logic, technology, programming, electronics, mathematics, neurology, quantum physics, and cosmology. If you wish to contact me, I can be reached at biohazard@gmail.com, or python_kiss@hotmail.com and my website address is http://www.shuzak.com

To see this article with photos, go straight to http://shuzak.com/Personal/Napoleonic-Lessons-for-Google-and-Microsoft.php

How To Plan For Business

2009-01-19T20:00:00.001-08:00

Writen by Michael Harrison

When thinking of starting a new business the realisation that the initial idea is leading in this direction is sometimes a long slow process. What is more it is human nature that you will feel the need to talk it over with friends and family. My suggestion is to delay this conversation as long as possible and keep your thoughts to yourself.

There are some situations where a group of colleagues feel they can stage a 'management buyout' or break away to form a competitive business.

This is different, they will need to be working as a team and truly understand their objectives and circumstances so that they can create a comprehensive business plan. They will need to explain what they are trying to achieve to their families as it will affect everyone. I have been through this and it is very different from being an individual starting a business, which I have also done.

If you think back to a previous article where I said do not underestimate your experiences the previous paragraph illustrates the point because I mention two personal experiences almost as a 'throw away' and yet they are experiences exclusive to me which many will not have encountered.

Do you have any such treasures in your locker? You may be able to draw on them.

So when you are thinking about starting your business think it through carefully. When you feel you are clear in your own mind on what you want to offer and what you think will be necessary start the business you must creat a business plan. Then you should start to discuss it, but not with family or friends because you will almost certainly get a negative response.

They will have many un-recognised motives for such a response, envy -"I didn't think of that". Fear - "what if it goes wrong?" They are not you, but this corrosive reaction will affect you and could deter you.

Your discussion will be best held with someone who you trust totally and who is able to be objective and assess 'the business proposition'. Is there a Market? How are you going to satisfy the market? What is the start up funding? How will you finance it? Etc.

These are major factors for objective consideration and how well you have thought them through and planned in will have a direct bearing on your ultimate success. You may have to change your thinking and re-work some plans so best to keep it objective.

When you have been through this and got it bedded down to your satisfaction you then must involve those who are likely to be directly affected by your new business - particularly your family.

Tip of the week:

Take satisfaction from every accomplishment because it will be some form of learning experience and today's accomplishments were yesterday's impossibilities.

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Resource Box: Article by Michael Harrison, Author, Publisher and Business Consultant. Learn from an expert: Go to: http://www.be-your-own-business-expert.com/
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**Attn: Ezine Editors / Site Owners / Webmasters / everyone** Feel free to reprint this article in its entirety in your ezine or on your site as long as you leave all links in place, do not modify the content and include our resource box as listed above. You can use other articles similarly from http://www.be-your-own-business-expert.com/Articles.html

Michael Harrison is an author, publisher and business consultant specialising in helping business owners and individuals to realise and release the full potential of their situation. He has helped many people to improve their business situations and advised and supported individuals to embark on new directions in their careers.

Simplified Demolition Projects Translate To Real Cost Savings

2009-01-18T20:00:00.002-08:00

Writen by Connie Black

Recycling really works, leads to simplified demolition projects On-Site Portable Crushing Portable on-site concrete crushing yields win-win situations with simplified demolition projects and reduced construction costs.

Portable crushing units have unique state-of-the art features including Tier 2 Emission Standards, Covered Conveyors, Calibrated Belt Weighing Systems, Screening System, Dust Control Systems, Magnetic Separators, Muck System and Bucket Scales on Loaders.

Major benefits of On-Site Portable Crushing:

(1) Maintaining ownership of waste

(2) Eliminating landfill costs

(3) Eliminating new aggregate costs

(4) Getting recycling credits

(5) Eliminating transportation costs

(6) Eliminate downstream liability

Each and every portable crushing project is permitted by Cherry with local and state air quality regulators. We have crushed over 1,369,239 tons of material at our client's facilities.

The portable track-mounted operation can crush to DOT specifications materials such as quarry rock, concrete, brick and asphalt. Materials commonly produced for clients include 1 ¾ ft. minus Road Base, 2 x 3 inch Ballast Rock and 3x5 inch Bull Rock.

This is material that does not have to trucked off-site and you realize even more cost savings from using the crushed material in your own construction project.

We have proven that savings up to 75% can be realized utilizing this system versus the typical project where the material is transported to a landfill and new aggregates are purchased.

Connie Black - Cherry Demolition, Houston Texas
Cherry Companies
6131 Selinsky
Houston, Texas 77048

PH: 713-987-0000
Fax: 713-987-0622
http://www.cherrycompanies.com

Inventory Accuracy Hints

2009-01-18T20:00:00.001-08:00

Writen by Paul Deis

Does your company need to improve inventory accuracy?

Often, writings on inventory accuracy improvement focus on techniques, such as cycle counting. While this is a very important item in the toolkit of the inventory or materials professional, cycle counting is only mainly a measurement and diagnostic tool. Think of it as SPC (Statistical Process Control) for inventory accuracy. You probably aren't going to cycle count your way to inventory accuracy, without also making major improvements in the material handling, transaction control, reporting and feedback process. For many companies, using cycle count adjustments to correct inventory record errors is like trying to bail out the ocean with a spoon, since errors may be made far faster than they can be economically corrected.

So what should you do?

An effective inventory accuracy program should consist of the following elements:

Inventory accuracy measurement criteria (metrics) - including item/part number identification, quantity and unit of measure, location and posting timeliness. Some companies also measure other related data, such as customer/contract number, configuration/revision letter, lot, serial number, grade and expiration date. I have visited companies claiming to have 95, 98 or 99+% record accuracy that quickly shrinks to mid-double digits when we apply our uncompromising criteria objectively. Sometimes companies have invalid criteria, sometimes they deceive themselves, sometimes their employees deceive them, sometimes unconsciously or unwittingly.

A clearly defined material and document flow, with control and tracking points identified. These should be clearly marked out in the shop and employees should be thoroughly indoctrinated. A simple flow chart of the desired system is an excellent educational tool. It should include material, document and transaction routing, "drop points," flow times, logging, batch controls, reports and auditing.

Adequate facilities, space, storage and material handling systems and other equipment. Good housekeeping practices are a must. It might be necessary to physically secure the inventory with fences, gates and locks, if floor discipline cannot be achieved otherwise. Make sure that there is a place for everything- materials, equipment, documents, and of course, people. Use signs and markings to make these obvious.

Effective policies and procedures for material handling, storage, identification, packaging, labeling, data collection, counting and transactions. Use good forms and tools to structure work properly.

A training/certification/assessment program for all people who handle or track inventory, or who are in a position to influence how well that works. Consider PROACTION's Inventory Accuracy Seminar. Use APICS materials.

An ongoing assessment and diagnostic program, such as cycle counting. Such programs may be administered in any one of several organizations within the company, as long as the manager in charge is sensitive to the needs of inventory accuracy and earnestly dedicates the needed effort to the program. That being said, we believe that 3rd party oversight, by an internal or external audit group or an outside consultant, is needed to keep the program on track.

Effective inventory transaction cut-off control and reconciliation procedures, including accounting for all transaction documents. Don't dare even THINK about real cycle counting until you get control of this, although it is recommended that you start early with a small control group, to debug the process and begin error diagnostics. Expand to a larger cycle count program only after you know what you're doing.

Transaction control system to post transactions and provide inventory status to all departments needing it, preferably via an on-line computer system. Bar code and other automated data collection systems are desirable, if cost-effective, but are no means mandatory to run an accurate system. Visual control systems, such as Kanban, 2-bin, pallet squares, etc, can sometimes reduce or even eliminate the need for most transactions and automated systems, in the proper circumstances.

So, you may be thinking, all of this is fairly straightforward-- why isn't everyone doing something like this successfully? It's actually much harder than it lookswhy:

Attitude: Not everyone agrees that inventory accuracy is important. I say: Are you satisfied with the alternative? It requires a high degree of consensus on the approach, responsibilities and "ownership." In extreme cases, company executive leadership may need to step in to help change the culture and oversee required changes.

Discipline is needed, day after day, year after year. This is not a one time cleanup job that management can declare victory for and just go home. It requires that someone be at least a part time "Accuracy Czar," to keep the effort focused and permanently active.

Implementation Ideas

Setting up the system:

Issue executive directive on need for inventory accuracy and accountability. Formally announce improvement and maintenance program. Establish management authority and accountability for data accuracy/integrity.

Create transaction and facility flow charts. Train everyone involved.

Fix and use part numbers (make sure BOM structured properly), locations.

Write inventory stock keeping and transaction procedures and training materials- train everyone involved.

Publish a data integrity policy and work these concepts into company procedures and training.

Review the adequacy of facilities and equipment to store and handle material. Make needed improvements to support the material control approach agreed upon-- Space, racks, shelves, bins, conveyors, fences, gates, fork lifts, ladders, scales, etc.

Develop performance measures. Publish them regularly, on paper, bulletin boards, hold people accountable, with appropriate rewards an punishments, reflected in performance reviews, compensation, praise, etc. Use tools, such as cycle counting/Statistical Process Control.

Establish an objective auditing program.

Operational Recommendations

Use PROACTION recommended data accuracy criteria and cycle counting procedures
Keep flow charts on nearby walls- refer to them when needed
Maintain locator controls as practical
Use appropriate storage mediaRacks, shelves, bins, pallets
Make judicious use of automation where feasible -- conveyors, automated Storage and Retrieval Systems (AS/RS), automated data collection, such as bar coding, automated counting/weighing scales, automatic baggers, pallet wrappers, etc.
Use standard container sizes, weights, quantities. Mark weights and standard quantities on containers.
Use authorized sealed cartons- Recounts of these sealed cartons not usually necessary
Use visual control methods- KanBan squares, clear plastic calibrated containers, etc.
Post transactions as real time as is practical
Put most frequently used items in the most accessible place. Store at point of use, if practical and controllable.
Practice excellent housekeeping.
Be careful with descriptions, units-of-measure.
Purge obsolete, discrepant, unneeded material.
Use good labeling practices.
Label, track, monitor shelf life items.
Array material for easier access and counting.

Inventory Tracking Approaches

Perpetual- computer or manual transactions
Discrete issues control
"Backflush" issues control
"2-bin", min-max or kanban control, visually driven
"2-bin", min-max or kanban control, perpetual inventory driven
Job lot control
Out of control (not recommended)

Verification Methods

Control group (start with this)
Periodic inventories
Cycle counting
Location audits
Transaction review

WIP Inventory

Maintain excellent housekeeping
Report transactions as timely as possible, including scrap, adjustments, exceptions
Use hook or station numbers on production lines
Use standard container sizes, weights. Mark weights and standard quantities on containers.
Have standard bins, racks marked
Minimize WIP, remove all material not needed for X hours
Mark quantities on sealed containers
Assign workers responsibility for monitoring certain items
Use feeder lines, cells, make as needed and keep parts on line where practical

This article is also available on our website: PROACTION Generating Best Practices. It is an excerpt of a paper originally written by George Miller, Founder of PROACTION. It has been modified and updated by Paul Deis, PROACTION CEO.

ABOUT THE AUTHORS Paul Deis, CFPIM, is CEO, PROACTION. He brings over 25 years of consulting and senior executive experience to his work, including detailed work with nearly 60 companies. Prior to acquiring PROACTION, Paul's experience includes running a small ERP software company, leading other consulting businesses, prior work with PROACTION, Manager at Deloitte & Touche, VP Manufacturing at Raypak, Inc., where he was very successful with an early Lean management initiative, and dozens of projects in the areas of enterprise software, operations management,crisis resolutions, in a wide variety of industries, business types, and scales. Our website: PROACTION Generating Best Practices.

George J. Miller, CFPIM, is Founder of PROACTION. Prior to selling the company to Paul Deis, George had worked with dozens of companies in assignments involving productivity, quality and service improvement, business systems, change management, acquisitions, divestitures, expert witness testimony, and others.

Vendor Relations Strategies Sample Outline

2009-01-17T20:00:00.003-08:00

Writen by Lance Winslow

One of the quintessential parts to any business is your supply chain. To insure that the supplies are there when you need them; in this new day and age of "just in time" distribution where very little sits on warehouse shelves until you order it you will need excellent vendor relations. Without the help of your vendors a small customer need turns into a astronomical problem and if you cannot solve it or serve your customer, you will indeed lose that customer to someone else who will. Someone who has constantly maintained a close relationship with their vendors in fact and can get what they need quickly with a simple phone. You say; "you wish it was that easy!" Yes, I hear you, yet I have seen over the years that with the proper vendor team, you can do anything, build anything, create anything and move forward faster than any competitor ever dreamed of. How do I know? Well, I built a multi-state franchise company with no outside investors from the smallest of small businesses, that's how.

Now then do you have a vendor relations policy, strategy or manual? We do and have for some time having learned the lessons the hard way and developing a strong set of team partners, which included every single one of our company's vendors. Below is an outline to assist you in developing your vendor strategy plan. Now remember my business is much different than your business. We are in the mobile car wash business so you will need to slightly modify this outline and then put pen to paper for about 3-4 paragraphs per item in the new outline you create by copying and modifying this one. When completed you will have all you need to build the next SpaceShip One. Think on this.

VENDOR RELATIONS

I. PLEASANTNESS

A. Treat Vendors Like You Want Customers To Treat You

B. Franchisor As Vendor

C. Suppliers List, Help Them

II. MISCELLANEOUS ITEMS

A. Tires

B. Gas

C. Conditioned Water

D. Laundry Mats

E. Health Food Stores

F. Lunch

G. Telephone Service

H. Internet Provider

I. Cellular Company

J. Wells Fargo

K. Hose Company

L. Etc.

III. TRADING

A. Lunch

B. Haircut

C. Gym

D. Tune-Ups

E. Be Fair

F. Have Fun

G. Refer Clients

H. Invite Co-Op Advertisers

I. Try To Trade Everything

J. Follow Through

K. Ask to Leave Flyers On Counters

IV. PAYMENTS

A. In Advance

B. In Cash

C. Call If Late

D. Drop Off Money

E. Personal Visits

F. C.O.D. - U.P.S.

G. Arrangements

H. Free Car Wash For Late Pay

I. Don't Say 'Check Is In The Mail'

Lance Winslow

The Typical Approach To Capital Formation Is Often The Wrong Approach

2009-01-17T20:00:00.001-08:00

Writen by Mike Myatt

The architecture of your corporate capital formation strategy should be engineered by design and not something that is evolved to by default over time. However all too common is the enterprise that organizes itself improperly out of the gate by making the wrong choice of entity, issuing the wrong type, class and amount of stock, seeking equity investments either from the wrong sources or at the wrong time, utilizing the wrong form of debt financing and the list goes on

I conducted an informal pole not too long ago with the goal being to try and understand how entrepreneurs choose to organize their companies. The following five questions were posed to a group of bright, successful and sophisticated entrepreneurs and the answers received ranged from the sublime to the ridiculous, to the very enlightened. The answers displayed below are representative of the most common responses:

1. How did you select the your entity structure? "I asked my accountant which form of entity to use and he said that a Sub S would be the best choice for minimizing my tax burden."

2. How did you organize your capital structure? "My attorney just told me to issue 100 shares of common stock."

3. What was your capital formation plan? "I had a little cash saved up and I figured once I had been in business for a while and established some revenue I'd get a bank loan."

4. What was your valuation strategy? "I didn't really have a valuation strategyI thought it would take care of itself at the right time."

5. What was your exit strategy? "I didn't really have an exit plan per se, I just thought I'd survey my options when the time was right and see what produced the best return."

The truth is I've seen companies make all the wrong choices in their formative stages and yet still do well. However these companies that have succeeded in spite of themselves had the luxury of having the time and the money to reengineer their business at a later date. The sad reality is that most companies don't have the time or the capital to unwind critical mistakes in their strategic financial plans.

My advice is simple Do not fall into the trap of working with a small "mom and pops" accountant or attorney; rather seek out the highest caliber professional advisors when developing your corporate financial plan. Time spent in the development of a sound strategic financial strategy will help your company secure capital at the best terms, rates and conditions thereby allowing your company to scale by leveraging the lowest blended cost of capital into the best valuation resulting in the highest return on equity.

Mike Myatt is the Chief Strategy Officer at N2growth. N2growth is a leading venture growth consultancy providing a unique array of professional services to high growth companies on a venture based business model. The rare combination of branding and corporate identity services, capital formation assistance, market research and business intelligence, sales and product engineering, leadership development and talent management, as well as marketing, advertising and public relations services make N2growth the industry leader in strategic growth consulting. More information about the company can be found at http://www.N2growth.com

Bvi New Memorandum Amp Articles Of Association For Old

2009-01-16T20:00:00.001-08:00

Writen by Peter Beighton

On 1 January 2007 all BVI companies formed under the Old Act (International Business Companies Act (Cap 291)) will be automatically re-registered under the New Act (BVI Business Companies Act 2004). There is an opportunity to re-register under the New Act during 2007. This means that it will be necessary to consider adopting new Memorandum and Articles of Association relevant to the applicable laws. It's important not just for good housekeeping reasons but the M&AAs will need to be up to date under the new legislation when an institution such as a bank requires sight of them. Whilst reviewing the M&AAs there is also the opportunity to remove bearer share provisions if they are not required, a move which will ultimately save US$750 in annual Government Tax.

We recommend the above action so that every BVI company's M&AA does not contradict and is fully consistent with the law that now applies. ILS can effect these changes efficiently and cost effectively. Visit www.ils-world.com

Peter Beighton is the Sales and Marketing Manager at ILS, a company which establishes and administers onshore and offshore companies and trusts.

Building From The Core The Secret To Exponentially Growing Your Business With Momentum

2009-01-15T20:00:00.002-08:00

Writen by Denise Corcoran

Why have only 7% of all businesses hit double digit growth during the past 10 years, while 93% have plateaued or are struggling?

Why are 3 out of every 4 business growth strategies failing today?

These startling statistics drive home the same message for both large and small businesses. The "old-style" growth strategy -- ie., launch ... sell as rapidly as possible ... diversify ... go international ... pursue the next hot opportunity ... repeat as necessary -- no longer works.

What do the handful of today's high growth businesses know that the others don't? What's their secret to creating impressive profit gains -- even in no or slow growth times?

============================================

TODAY'S #1 BUSINESS GROWTH MISTAKE:

"Growing your business BEYOND your core ... not FROM your core."

============================================

In order to experience double digit growth in today's economy, you must learn and master the following 2 principles:

HIGH GROWTH PRINCIPLE #1: To start, you must KNOW what your core is. Your "core" consists of 2 elements:

** Knowing what business you are ** really ** in
** Knowing your core business strengths, competencies, assets (also known as your competitive edge)

As basic as the above sounds, it is amazing how many companies have never taken the time to define their "core."

HIGH GROWTH PRINCIPLE #2 : For strong sustainable business growth, focus *only* on opportunities ADJACENT to your core. Ideal adjacent opportunities are 1 step away from your core.

You can move adjacent to your core in such ways as: new related customer segments, geographies, products/services, value chain steps (forward or backward) and channels.

The difference between an "adjacency move" from other growth opportunities is the extent to which it draws on your customer relationships, technologies, skills or core competencies.

EXAMPLES OF SUCCESSFUL ADJACENCY MOVES: Dell employed its direct sales model -- successful with computers -- to market hand held computers and printers. Nike applied its core success formula with athletic shoes to one sport after another - from basketball to tennis to soccer to golf.

THE BOTTOM-LINE: Those businesses who grow FROM their core experience *exponential growth.* Such growth is systematic, high leverage, high return. Those businesses who grow BEYOND their core are at high risk of *failure* and 3 out of every 4 expansion efforts will misfire.

Subscribe to her monthly ezine - The Empowered Business (tm) - and learn the legendary secrets of top business achievers. http://www.empoweredbusiness.com/Newsletter_signup.html

Erp Role In Selling Your Midsize Business Microsoft Great Plains And Crm Example

2009-01-15T20:00:00.001-08:00

Writen by Andrew Karasev

If you own the mid-size business and actively work in it as executive manager or lead, say marketing, you probably know exactly what needs to be done on the daily basis to keep it running. However, in many cases this business critical knowledge exists in your head only. This means that if you would like to sell your business it has little value without your participation. So, ahead of the selling time you should "formalize" the business to make it work within the systems and rules, independent of people. Let's consider the parts we will need.

Functional Diagram. Well one may think that he doesn't have to reinvent the wheel, but we think that this is the only possible way to start from the top level of formalization. Functional diagram should show the process of getting new customer as a prospect, the sales process up to the closing, then customer order executing. And this diagram should reflect the interaction of your departments and key employees/positions.

Sales Control. When you want to formalize sales you are looking for the system, which allows you to distribute leads to your sales people and then have a tight monitoring of the closing rates and the quality of the closed prospects by salesperson. This system will allow you to create formal position: Sales or Marketing director, who can generate new business for the company through this Sales automation system. In our opinion this is 60% of the formalization success.

Order Execution. You need standard ERP to control order fulfillment. Usually such a system is implemented on one of the Accounting applications platforms. In the case of small and mid-size business, we would encourage you to map to your functional diagram, described above and clarify all your needs with the consultant, who will help you with the implementation. Order Execution automation will allow you to introduce another formal position Controller.

CRM/ERP market. You could find variety of the systems on the market. Here you need to stick to the quality rules. When you implement the computer system you should probably take the leaders on the market and be sure that they will stay or get additional market share in the future. In the case of mid-size business in our opinion you should be selecting between two leaders: Microsoft Business Solutions with its ERP: Great Plains, Navision, Solomon, Microsoft CRM, and Best Software with their MAS 5000

Microsoft Great Plains & CRM. These two systems are integrated and allow you to implement Sales Control and Order Execution, if you decide to stake on Microsoft brand.

You can always have us help you with the implementation & customization. Call us: 1-866-528-0577, 1-630-961-5918.

Andrew Karasev is Chief Technology Officer in Alba Spectrum Technologies USA nationwide Microsoft CRM, Microsoft Great Plains customization company, serving clients in Chicago, California, Texas, New York, Georgia, Arizona, Louisiana, Michigan, Florida, Canada, UK, Australia, South Africa and having locations in multiple states and internationally ( http://www.albaspectrum.com ), he is Dexterity, SQL, C#.Net, Crystal Reports and Microsoft CRM SDK developer.

Take A Systems View To Ensure Your Business Stays Healthy

2009-01-14T20:00:00.003-08:00

Writen by Dan Strakal

How are you feeling today? Good, not so good, great? Let me ask the same question in a different way: How is your gastro-intestinal system functioning today? What about your lymphatic system? How's the old circulatory system flowing along? Are all your bodily systems aligned, in sync, and cranking at peak performance?

In order to get everything done perfectly and on time, your body must use many systems that effectively work side by side. Just as it is important to take a systems view when it comes to your body's health and well-being, it is equally important that you have a clear understanding of your business and its organizational systems.

Taking a systems view is the best way to assist employees and your customers to do their best when it comes to the business. As such, keep the following in mind and make sure to:

1. Identify how your current workflow and work culture are affecting your business and your employees' performance

2. Determine if there is or is not alignment between your businesses'

-- Goals and objectives
-- Performance measures
-- Rewards/incentives
-- Job/work/or process designs
-- Available tools and equipment
-- Expectations and capacity

4. Identify both barriers and leverage points in your business. These include things such as

-- Key political players and stakeholders
-- Issues affecting the larger business environment and markets
-- Pressures on key players, the business, the audience, managers, etc.
-- Expectations around projects
-- Workplace/project constraints including deadlines, your budget, any political issues, regulatory issues/requirements, product and program launch logistics and communications, quality issues, safety concerns
-- Consequences (both good and bad) of implementing or not implementing solutions

5. At every opportunity, explain the benefits of taking a systems approach to your employees and others involved in your business (vendors, suppliers, customers, regulators, etc.)

-- Help others see the value of addressing the knowledge and insight gained by looking "at the bigger picture"

-- Show how leverage points and overcoming constraints can be used to positively affect a business performance issue

If you want to keep your business efficient, effective, and functioning at peak performance, it is important to make sure you and your employees understand there are many systems that interact and need to be aligned. Spending the necessary time and effort to identify such systems and linkages will go a long way toward keeping your business healthy, wealthy and wise.

Dr. Dan Strakal has been an expert on the changing workplace, job transition, and career development for nearly 20 years. He acts as a trusted client advisor and consultant within the corporate sector, government agencies, civic organizations, small businesses, and educational institutions. He also provides business, executive and career consulting, coaching and workshops for individual clients and is the coauthor of and contributor to two books, Better Job Search in 3 Easy Steps and Better Job Skills in 3 Easy Steps. Dan is often called upon by the national and international media as an expert and has appeared in The Wall Street Journal, Self Magazine, SmartMoney.com, Computerworld, Diversity Inc. Magazine, Chief Information Officer (Australia's Magazine for Information Executives), the Radio America Program: News You Can Use, KBS Radio Canada and many other media outlets. He is on the Board of Directors of the Career Planning and Adult Development Network and is a Platinum Member of the Career Masters Institute. More info at http://www.capable-consulting.com

How To Write The Right Business Plan

2009-01-14T20:00:00.001-08:00

Writen by Charlene Rashkow

A concrete idea is the first and most important step in regard to any new venture, but there are definitely other distinct components necessary for propelling a business to success. The first is coming up with a good business plan. Although there are many uses for a business plan, the most obvious reason is for the purpose of attracting the attention of investors, financiers or loan companies.

Where Should You Start?

Getting started on a business plan may at first seem like an overwhelmingly difficult challenge but with the proper preparation you can have a great plan together without too much difficulty. One of the best ways to start is by keeping copious notes that refer to every aspect of your new venture. Even if the thoughts that occur to you seem insignificant, keep your ideas in a simple notebook so that when you're ready to put your plan together, all your ideas are in one place.

Description Of Your Business

A description of your business will come under the overview or summary section. Included in this section you will define what your company is about, what it does and what it hopes to achieve. Offer data that explains why you believe you will reach your goals, why you believe you are a sound investment, and why your company has what it takes to make a dent in the marketplace.

This section should also include where you're presently at in your business, your goals and your future intentions as well as your growth potential. As you move forward with your plan be prepared to make revisions.

Product Information

A Product/Service section should include all the details pertaining to your particular product or service. These can include everything from the benefits of your product to the uniqueness of the product to how this product will make a difference in someone's life. This section is very important since a wise investor will quickly see whether there is an inherent return on the money he or she invests.

Marketing Strategies

An extremely important part of a business plan is your marketing strategy. In this section you will explain how you intend to reach your target audience. Keep in mind that it is precisely what it claims, a marketing strategy. Therefore you will be presenting ways in which you plan to promote your business. Whether it's through a web site, press release, advertisements, sales letters, television, radio, direct mail, newspaper or magazines, give precise examples.

The marketing strategy section gives you the opportunity to show how you intend to get the word out. It is the perfect tool you'll need for convincing someone of your ability to reach your target audience.

Competition

You don't have to be afraid of sharing who and what you may be competing against since your business will have a specialty all its own. So be sure to research your competitors. Give examples as to whether your competitors business is growing or diminishing and why.

Perhaps your business is so unique you have no competition, which of course makes you an even more attractive possibility for a loan. In that case you must define why you think this newer service or product will be a success.

Bios

If you have a team of people involved in your organization, they are the most important resource of your company therefore you should include their strengths and experience in addition to what role they'll play in your company. Include bios of all the key decision-makers as bios show an investor how you and your team's experience will help grow your new venture.

Target Market

If you're targeting a specific market here is the place to illustrate who and what that specific market will be. Spell it out in detail. Will it be to the private sector or government contracts? Are you seeking retailers or wholesalers? Are you searching for distributors? If the target market is unlimited, meaning you have no limitations regarding age, profession,income levels or gender, make sure to explain that as well.

The Financial Section

The financial section of your plan is the one that will receive the most detailed scrutiny and investigation. As a beginning place you should ask yourself the following questions: How much money will I need for my start-up venture and how much money will I need to stay in business? Be sure to include complete financial assumptions, statements and projections. A Banker, Investor or Loan Company will carefully review your future forecasts and earning potential so don't skimp on the financials. These calculations will either invite investors or turn them away. It is highly recommended that you utilize the services of an accountant to make sure your financials are done correctly.

In Conclusion

A well put together plan will ensure that you'll be taken seriously, so before you submit your plan to venture capitalists or investors, be sure you convey yourself as dynamic, professional and enthusiastic. Highlight your key points and be prepared to answer any and all questions a potential investor might ask.

Obviously, this is only a brief summation of what a business plan requires. You can include other sections as you progress, but start with these and add as you move forward. Remember, your presentation is of the utmost importance and can mean the difference between attracting the right investor or failing to be heard.

Charlene Rashkow brings 15 years of experience as a freelance writer/consultant. She has successfully helped companies and individuals reach their objectives by writing outstanding web site content, press releases, bios, articles, proposals, business plans, marketing strategies and all other forms of marketing, business and personal material. You may reach Charlene by visiting her web site at http://www.allyourwritingneeds.com or writing her directly at info@allyourwritingneeds.com

Whats In A Business Plan

2009-01-13T20:00:00.002-08:00

Writen by Robert Thatcher

Ideas can start anywhere. This can happen when a person is driving or when one is just sitting down and noticing something that nobody has thought of. Given that opportunities don't happen very often and being the first counts, the individual can begin to put it on paper and work on the details.

If the person wants to start up a business but does not have enough money to make it happen, then that individual should look out for investors. In order for these people to be interested in this dream, a business plan must be drawn up before it can go any further.

Investors read a lot of business plans monthly and since it is hard to decide on which to accept, one should make sure that the document stands out by making it simple and brief for these people to understand.

It must have something concrete that will show how successful it can be compared to other proposals. This must have projections and figures that people can read. It must have a model explaining in detail how revenue will soon pour in.

Another thing that must be present in the business plan is the marketing aspect of the project. How will this reach the market? What steps will be taken should it not work out in the beginning? Will distributors be able to sell it? Who will benefit from this product? What is the gender and age group will this cater to?

It should also have a sales plan. It should explain how this product will be distributed. Will it be done directly or through another source? How much will it cost to make such a product? What is the manpower needed to make the operation work?

Should the person have a variety of products in store for the business, one can already determine and claim that a certain product will be the core line of the venture. This will be the key that will lead the growth in sales.

Since it all boils down to money, the document must show how much is needed for this to work in the first year of operation. It is best to show these in phases so the investors can see at point how the business is dong and where the money for this project be used. Most importantly, how long before the investment will pay off.

Investors may not have the time to read one's business plan even if this has been mailed weeks before the scheduled presentation. To overcome this, one should put it in slides so that a visual presentation similar to the one on paper can be viewed by these people. The summary of the business plan should state clearly what the person wants to happen.

Simplicity is the best way for people to understand the business plan. By putting down important details that these expect to find, there is no doubt that investors will want to put out money and make the person's dream a reality.

One should remember that some of the most successful businesses today started with humble beginnings. Some started out with practically nothing but through patience and hard work, the sacrifices have paid off.

If the individual has a dream, one should make it happen. If the person doesn't, perhaps in time someone else will.

Robert Thatcher is a freelance publisher based in Cupertino, California. He publishes articles and reports in various ezines and provides business plan resources on http://www.aboutbusinessplans.info