In the November 2009 issue of Business/News & Views®, David Weatherholt brings us good news about the economy in a thorough analysis of the quarter’s economic indicators. In his editorial, Dave writes on entrepreneurs, heroes and the power of necessity.
Amanda Cullen writes about relationship marketing and how developing relationships with your customers encourages them to buy more and refer more.
David Weatherholt brings on the top franchisors in the state of Alaska: Jerry Kinn, owner of the Carl’s Jr. franchise and Michael Davidson, owner of 18 McDonald’s franchises to talk about the business of franchise.
These friendly competitors discuss the top ten franchise businesses, the benefits of franchising and the changing face of the franchisor.
Is franchising a good fit for your entrepreneurial spirit? How do you get started in franchising? Listen to find out!
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How many of you have ever heard of a superhero needing a business plan? The reason you haven’t is not because they don’t need them. The real reason superheroes most often succeed with their entrepreneurial pursuits is because they hire business planning superhero consultants. They get and expect super results because they aren’t looking for the easiest or the cheapest ways. It’s because they know the nine essential personality traits of a business plan superhero consultant.
These are the nine essential personality traits that are critical to success in business planning. The first is the ability of the consultant to look at you as an individual. Can they look you in the eye and meet you face-to-face? Are they able to be genuine when asking you questions about your desires, hopes and passion for your business? Make sure you are comfortable with your consultant and able to communicate effectively. Be sure your values and theirs are compatible.
Does the potential consultant superhero have a background in finance? When hiring someone to lead you in your business planning, you want a person who can develop meaningful financial projections. This means knowing what investors and lenders look for in solid business ventures. The financial section of your business plan provides the most critical data within your plan. It is necessary to hire someone who has the capacity to fulfill this need in your business plan. When you start with solid market projections and use this data to drive the pro forma financial projections and the breakeven analysis, you can begin to see the value of working with a person who has a solid financial background. The success of your plan hinges on the ability to link market data to strategic financial performance.
Has your potential superhero consultant had any business experience? It is so important for your consultant to have been involved in a start-up business in the past. Have they had any businesses themselves or been involved with other ventures which have grown into successful and thriving businesses? They must understand this as well as customer relations. Is your potential superhero consultant prepared to answer such questions as how the mind of your customers affects whether they will buy your product or service?
Another essential personality characteristic necessary is experience with quality goods and services. Has your potential consultant been involved in companies that have stood the test of time? And do they have experience with both large and small organizations?
What are their academic credentials? Real world experience is important but so is education. What degrees do they hold? Do they have a graduate degree and any professional certifications? Check them out and see what they have done with their education.
Largely a forgotten talent, it is important that your potential superhero consultant have experience with business plan writing. Can they write? Can they provide samples of plans they have written? What are some examples of other documents that they have written?
Are they reliable and ethical? Do they understand the real world and deadlines? Get a feel for how down-to-earth and grounded in experience they are. Can they help implement the plan? Do they provide high quality work? Can they provide benchmarks that are practical and consistent?
The last and final talent separates many an amateur writer from a truly gifted business-planning consultant that is the ability to do competent and reliable market research. Does your potential consultant have knowledge and ability to conduct effective and accurate market research? Will they provide you with accurate data that will be critical in assessing the competition and aid in the growth of your business?
Success in business requires planning, focus, execution, hard work and a little luck. Business planning is a key component of any business’s success. For example a properly developed breakeven analysis will provide a visual picture of the risk and reward your idea or concept faces. This is why choosing the right consultant is so important. When you choose one that is a superhero, you know his skills are based on strong business philosophy, financial analysis, and projection experience. The real superheroes have an understanding of broad general business concepts and a rich array of industry specific knowledge. This alleviates the possibility of industry-specific blind spots, and allows your superhero consultant to objectively analyze the industry and provide innovative solutions. Getting a high quality business plan starts with hiring a business planning superhero consultant!
David Weatherholt talks with Dan Sullivan, Mayor of Anchorage, about the relationship between government and small business. Throughout the decades, government regulation has been pilloried, but without some key legislation, our business environment would be unstable, recessions would be less predictable and small businesses would find it difficult to thrive.
Dan Sullivan shares his business background and the similarities between running a business and a municipal government.
Later in the show, Amanda Cullen, of Zoo in a Jungle Marketing, explains relationship marketing and how small businesses can develop strategies to build relationships with their customers. Strong customer relationships lead to stronger loyalty, more numerous customer referrals and higher profits.
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Alaska Municipal Government, Small Business and Customer Relationships
Many of you know that starting a business takes hard work, long hours, low pay, and a lot of sacrifice. In fact, only five of every ten businesses will survive their first five years. It’s easy to look around and see examples of dying businesses and even ones that are thriving. However, these are extremes and easy to notice. What the public (and new business owners) don’t get a chance to see are the business owners who are plodding along, making small inroads, and making their dreams happen because they had a fantastic business plan.
Most successful entrepreneurs are highly motivated, focused and full of intention. Having a thoughtful and professionally written business plan will tip the odds in your favor. There are fifteen “must haves” for a good business plan. Each one takes time and thoughtful reflection to be done well. The first is a qualified business-planning consultant. When you hire a fully qualified business-planning consultant much of the stress of wondering whether you are fully informed about your market, product and future earnings will be alleviated as you turn over that task to a professional.
The second “must have” for a business plan is an executive summary and business concept. The executive summary is a statement of purpose and general overview of your plan: concept, product/service, market, operations, management, your company and the industry. Your business concept includes your mission statement, your background, current status, and future plans.
When describing the industry your business calls home, it is important for you to look for the characteristics, the participants and the trends that make your business unique.
The product or service you provide is often the focal point of any business. What is needed is a simple
explanation of the product features, the customer benefits, the stages of development, and future products and/or services.
Next describe the facilities in where your business will be located. You will describe the business location, any special transportation routes or vehicles needed, what the labor pool or employees consists of, and the availabilities of utilities to meet your needs.
Marketing is a key component to business success. Analysis of target markets will bring many important insights. When you profile target customers to understand the total person and their motivation for wanting a product or service like yours, you begin to understand how you can best serve that customer’s needs. Looking at market share, trends, and growth potential is an important part of the process.
A large portion of a thorough marketing summary includes the competition analysis for your business. What is your competitor’s profile? How does your product or service compare with that of your competition? Do you occupy a particular market niche? Is it possible that you share a segment of the market with another company or business? Finally, what are your strengths and weaknesses in relation to those of your competition? When working on the marketing piece of your business plan, a good one will have market penetration goals. It will cover pricing and packaging of your product or service. In addition it will include advertising, public relations, and promotions.
When planning the business structure and organization of your business, the management and ownership of the business are crucial. What type of business structure will you work from? Will you be an LLC, S-Corp, C-Corp, partnership, or sole proprietorship? The list goes on and is worthy of some investigation. Who will manage your company? Is there a board of directors? Who owns the business? Are you or your business a member of any supporting professional assistance programs? Answering these questions will give you a clear picture of how your business will run.
Financial data and projections of your company are critical for assessing the outcome of your business. What is the source of funding for a start-up? Does it come from an owner, partners, stockholders, loans, or venture capital?
What do you plan to do with the money that is allocated? What are your business’s needs for start-up costs? Does the money you plan to have from the beginning cover your plans for expansion of the business? Will there be new construction? It’s also important to think about what equipment you need to successfully begin running your business. Do you have a budget set aside for your needed marketing campaign? Do you have enough working capital to draw from for any of these scenarios? For projected or pro forma financial performance, do you have detailed assumptions, a pro forma balance sheet, a pro forma income statement, or measures of performance?
In the final section of your business plan you will include supporting documentation which will add support to your plan. There are four areas to this: company and product/service support material, legal support materials, market support materials, and business structure and organization. When providing the company and product/service support material, the product and equipment specifications sheets may be helpful. In addition, photos of product, equipment, or facilities can be included.
This article has provided a template for creating a great business plan. Now start evaluating your mission, purpose, values, and motivation for launching or expanding a business. Then begin writing. Once it is complete, your business will have a schedule and plan, strategy and road map to the future. This will enable the plan to grow and change with your business as it becomes more successful.
On his radio show “Getting Down to Business,” David Weatherholt talks with Bob Poe, gubernatorial candidate for Alaska. Poe discusses his views on the relationship between government and small business– what it looks like currently and what he thinks it should be. This is a great opportunity for small businesses in Alaska to hear the candidate talk about issues affecting their livelihoods.
Also, David speaks with the deputy director of the SBA about the changes enacted last week by the SBA program. Finally, David introduces the show with a history of recessions, how government intervention has helped or hurt the economy and why we no longer call them “economic panics.”
All considered, this episode of “Getting Down to Business” is full of essential knowledge for small businesses.
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An informative monthly newsletter loaded with solid advice and down-to-earth lessons on how to succeed in your marketplace. Our goal is to stimulate your creativity and provide the courage and knowledge you need to move to the next level in your business.
Editor David Weatherholt brings you business ideas, economic news and views from across the business community. We're proud to bring you advice you can use.
There are hundreds of thousands of small businesses. Each one of them has owners that spend their days working hard, trying to find the formula for success. Most of them could use good, solid business advice. Weatherholt & Associates, LLC is a consulting firm that helps these businesses discover their own personal formula for success.
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