October 27th, 2011  Posted at   Strategic Planning

I was watching a recent episode of CNBC’s “The Big Idea”. I really like the show as they always have a lot of inspirational and educational leaders from the business community. Hosted by Danny Deutsch, they do their best to provide a variety of differing personalities in regards to how you can succeed in business.

In the episode that I am referring to, they talked a lot about criticism and help from others. What they specifically were referring to is trying to get the points across that if you are an aspiring business person or entrepreneur, do not be afraid to seek help.

I have learned this in my own business. As with all businesses, I developed a business plan. I developed a model by which my company would run, how it would run, how it would profit and so on. After I finalized the plan I really wanted to know if my business plan was viable. In other words, is it realistic and are the numbers accurate or did I make a mistake with them just to appease myself with what I wanted to see.

So how did I finally realize my plan was a good one? Very simple, I obtained some help in the form of business critics. I contacted various members of S.C.O.R.E., the counselors to America’s Small business. I contacted the specific members in my area who were experts and knowledgeable about business plans. I asked them if they would review my plan to make sure I covered all of the bases, and that the numbers were somewhat realistic.

In all I contacted about 50 members, of which, about 40 of them agreed to look it over, with the other 10 not being able to, due to either time constraints or they did not have the expertise in my area of business. What came next was a flood of valuable information that helped me enhance my plan.

I received phone calls and emails from all of the counselors with such criticism (both good and bad) that it propelled me to make changes and fine tune the plan. I was told to do more research on my marketing techniques and be descriptive, up through, how I needed to outline a more decisive exit strategy.

Historically speaking, I have never been one to take such criticisms. As a former software engineer, to be told what you are doing is wrong, or won’t work, doesn’t sit well with most people who have developed software for a living. Those in the same line of work know what I mean.

What I found from all of this criticism was such a great wealth of knowledge, that it helped me fine tune the plan, make it better, and have me realize that, yes, others do know more than me and are willing to share that knowledge.

If you are an aspiring entrepreneur or are already in business, and you need to find some ways to increase sales, employee productivity or a number of other things, get the help of those in business that are currently successful. Many times a set of eyes on something that are not emotionally attached to it will give you a more clear vision of where to go. Contact S.C.O.R.E. (score.org) counselors in your area. I know it helped me, and I am sure it will help you also. Read more… »

October 27th, 2011  Posted at   Small Business

There are some very compelling reasons for writing a business plan for small businesses. The challenge is that the misconceptions about what needs to go into a small business plan scare most owners and entrepreneurs away.

If you are like most small business owners or managers, you are incredibly busy, if not borderline overwhelmed. The idea of taking hours of valuable time to write a plan for your business may not seem worth it. But the data proves differently.

When writing a business plan for small business, focus on what really needs to be done, and what really needs to be measured. The plan does not have to be a 15 or 20 page document. In fact, it should only be one or two pages maximum. You should also have a yearly budget or financial plan as well. You really do not need to go overboard and do tons and tons of research about the market, and the opportunity, especially if you are already in business!

To write your plan, you will need a few things to get started. If you can assemble any of your sales and financial information for the past couple of years, that would be a bonus. You will need a notebook and writing instrument, possibly a laptop or a computer, and yourself. Then, basically find a quiet place to sit down for about an hour, and think about your business, and where you want it to go, and how you think you can get it there.

Let’s start with where you want your business to go. This is just a fluffy way of saying your vision for your business. Set a timeline for your vision; say 18 months or up to 5 years out. Then think about what your sales would be if everything goes as planned. What are your primary products or markets, and where will you do it.

Here’s an example: Within the next 3 years, grow MS Cut to $750,000.00 in sales providing industrial routing and cutting services to manufacturers and distributors in the Indianapolis market. Read more… »

October 27th, 2011  Posted at   Small Business

If you’re looking for investors you need business plan help. Keep these three tips in mind.

The Business Plan Is One Management Task That Cannot Be Delegated

Investors do not like to hear “I have consultant writing the business plan,” or the ever-popular “My accountant is doing the projections for me.” These specialists can be invaluable in assisting you with the project, not in taking it over and making the project their own. Far be it from us to not recommend hiring a consultant to help you. You don’t not want to get into a situation where you cannot explain part of the business plan to an investor because you were not involved in writing it.

Business Plans Written By Committee Seldom Look Pretty

It is always a good idea to obtain business plan help from the other key members of your management team–your marketing expert, your finance guru, the guy who brings the bagels in the morning–but it is not a good idea for each of these people to go off and work on their own independent drafts of the business plan, to somehow be assembled into one document later. What you will end up with is, well, a mess. A better method is to work off one draft, upon which each person is allowed to suggest comments or make edits. Some word processing software even lets you track each person’s changes in different colors, so you can tell which person commented that your brilliant marketing strategies were “lame”.

“Made Fresh While You Wait” Works Better in Dining than In Business Planning

A trend today is to send an Executive Summary of a business plan to potential investors before sending out the full document. Besides saving printing and postage costs, this allows the entrepreneur to determine if the investor is at all interested before revealing too much about the company. And you can sometimes get more timely responses from investors if you ask them to read 3 pages rather than 50. Entrepreneurs anxious to get financing, though, are just writing the business plan summary, and then finishing the business plan only when the investors express interest. How do you write a summary of something that doesn’t yet exist? The Executive Summary is supposed to highlight the key aspects of your plan. It reads better if you actually have some aspects that can be summarized. Read more… »