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All small business people manage issues that are beyond their areas of expertise. Interior designers need to manage finances. A CPA firm needs marketing. But how can you know you’re making the right decisions? You need a mentor who can help you “Learn How to Fish.”
Learn the benefits of business mentoring for you and read the full article here: Learn How to Fish
The diversification principle has long been accepted as an important investment strategy. Can the diversification principle be applied to your business as well?
In this article from the January 2010 Business/News & Views®, I advocate that businesses should start thinking differently about their business structure. It is dangerous to put all your financial eggs in one basket, just as it is dangerous to have only one stock in your investment portfolio.
For my recommendations on how to start this analysis and implement the changes you need, read the full article: Diversify Your Business
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.
Having a great strategy is only the first step of a successful business. Dave’s show this week is about putting legs on your strategy and giving you tips for effective implementation.
Dave’s guest is Dwain DeVille, author of The Biker’s Guide to Business. Dwain is an entrepreneur coach and asks, “What do entrepreneurs and business leaders have in common with bikers?” The answer? More thank you think!
In the news, Dave alerts small businesses to the opportunity of applying for grants and stimulus money. Someone has to get it. Why not you?
Listen or download here:
Dave calls on all “Getting Down to Business” listeners to devote some time to long-term business planning. And, of course, he gives them advice and tools to plan effectively. Gerhard Vierthaler with Value Strategy Group explains the SWOT analysis to Dave’s listeners. SWOT stands for Strengths, Weaknesses, Opportunities and Threats and is a long-term planning analysis tool.
Long term planning becomes especially important during a recession. So, pull up a chair and let Dave give you Advice You Can Use.
Listen or download below:
Dave believes the market analysis is the most important part of the business plan. He tells listeners what they need to include, what banks are looking for and what they need to know to ensure success.
Dave’s guest is Amanda Cullen of Zoo in a Jungle Marketing. This marketing firm specializes in small business marketing, and Amanda has a unique marketing philosophy for small business.
Listen or download below:
Banks aren’t the enemy of small business, as Dave proves in this “Getting Down to Business” podcast. Dave takes listeners through the history of banking and how you can negotiate with them successfully for your business.
Relevant to today’s topic, Dave interviews Andrew Riddell, Vice President Business Banking Manager at Wells Fargo.
Listen or download below:
In this wrap-up of the “Getting Down to Business” series on crafting a business plan, Dave Weatherholt gives listeners his final advice and tips for an effective business plan.
Listen and download and below:
In this very first episode of “Getting Down to Business,” David Weatherholt interviews Russell Ball, owner of Alaska Computer Brokers.
Dave also talks about the entrepreneurial spirit, the need for a business plan and the importance of balancing the free spirit of the former with the orderliness and planning of the latter.
Listen to the podcast now, or download it:
Nuts and Bolts of Business Planning
Dave also tells us about the seven critical areas a business plan needs to address:
January 2009’s Business/News & Views® focuses on helping your business make plans for the new year and evaluating the economic outlook of 2009. There is also a helpful article on the seven deadly sins of web design.
Read Now: Business/News & Views® – January 2009
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