1.
Plan your exit when you start the business. Will you sell your company, pass it on to children, or take it public?
2.
Take time to understand how your chosen exit affects business planning. Will family members need to be trained to replace you, for example?
3.
Consider the cost of each strategy—loss of the ability to keep financial information private if you sell or go public, for example.
4.
Be aware that your investors will have their own exit strategies. Be prepared to discuss their desired timetable for exiting your business, how they see it happening and their expected return on investment.
5.
Plan well ahead for a satisfying life when you leave your current business. Consider starting another business, teaching, volunteering—or becoming a philanthropist.
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Tampilkan postingan dengan label business. Tampilkan semua postingan
Senin, 11 Mei 2009
5 Tips for Using Colleges and Universities to Help Your Business
1.
Volunteer your company to be a business school case study. You’ll learn much about your company in the process and get good ideas for the future.
2.
Obtain management and technical assistance from one of more than 50 Small Business Development Centers. Check the U.S. Small Business Administration web site at www.sba.gov for locations.
3.
Participate in special programs. Many colleges and universities sponsor venture capital forums, entrepreneurship centers and family business programs.
4.
Work with the business school to offer internships to graduate students.
5.
Find out what expertise is on a business school’s staff. You may find just the right person to hire as a consultant or serve on your board.
surce: www.score.org
Volunteer your company to be a business school case study. You’ll learn much about your company in the process and get good ideas for the future.
2.
Obtain management and technical assistance from one of more than 50 Small Business Development Centers. Check the U.S. Small Business Administration web site at www.sba.gov for locations.
3.
Participate in special programs. Many colleges and universities sponsor venture capital forums, entrepreneurship centers and family business programs.
4.
Work with the business school to offer internships to graduate students.
5.
Find out what expertise is on a business school’s staff. You may find just the right person to hire as a consultant or serve on your board.
surce: www.score.org
Selasa, 17 Februari 2009
Looking for New Business Ideas
When looking around for business ideas, bear in mind that these could be based on any of the following approaches:
A manufactured product where you buy materials or parts and make up the product(s) yourself.
A distributed product where you buy product from a wholesaler/MLM, retailer, or manufacturer.
A service which you provide.
You should narrow your search to specific market or product areas as quickly as possible. For example, the "food business" is too broad a search area. Do you mean manufacturing, distribution or retailing, or do you mean fresh, frozen, pre-prepared etc. or do you mean beverages, sauces, confectionery etc.? It is better to pursue several specific ideas (hypotheses) rather than one diffuse concept which lacks specifics and proves impossible to research and evaluate. Generally, you should always aim for quality rather than cheapness. Be very cautious about pursuing ideas which involve any prospect of price wars or are very price sensitive; of getting sucked into short-lived fads; or of having to compete head-to-head with large, entrenched businesses.
To locate ideas, observe consumer behavior:
What do people/organizations buy ?
What do they want and cannot buy ?
What do they buy and don't like ?
Where do they buy, when and how ?
Why do they buy ?
What are they buying more of ?
What else might they need but cannot get ?
Also, look at changing existing products or services with a view to:
Making them larger/smaller, lighter/heavier, faster/slower
Changing their color, material or shape
Altering their quality or quantity
Increasing mobility, access, portability, disposability
Simplifying repair, maintenance, replacement, cleaning
Introducing automation, simplification, convenience
Adding new features, accessories, extensions
Changing the delivery method, packaging, unit size/shape
Improving usability, performance or safety
Broadening or narrowing the range
Improving the quality or service.
source:www.planware.org/businessplantips.htm
A manufactured product where you buy materials or parts and make up the product(s) yourself.
A distributed product where you buy product from a wholesaler/MLM, retailer, or manufacturer.
A service which you provide.
You should narrow your search to specific market or product areas as quickly as possible. For example, the "food business" is too broad a search area. Do you mean manufacturing, distribution or retailing, or do you mean fresh, frozen, pre-prepared etc. or do you mean beverages, sauces, confectionery etc.? It is better to pursue several specific ideas (hypotheses) rather than one diffuse concept which lacks specifics and proves impossible to research and evaluate. Generally, you should always aim for quality rather than cheapness. Be very cautious about pursuing ideas which involve any prospect of price wars or are very price sensitive; of getting sucked into short-lived fads; or of having to compete head-to-head with large, entrenched businesses.
To locate ideas, observe consumer behavior:
What do people/organizations buy ?
What do they want and cannot buy ?
What do they buy and don't like ?
Where do they buy, when and how ?
Why do they buy ?
What are they buying more of ?
What else might they need but cannot get ?
Also, look at changing existing products or services with a view to:
Making them larger/smaller, lighter/heavier, faster/slower
Changing their color, material or shape
Altering their quality or quantity
Increasing mobility, access, portability, disposability
Simplifying repair, maintenance, replacement, cleaning
Introducing automation, simplification, convenience
Adding new features, accessories, extensions
Changing the delivery method, packaging, unit size/shape
Improving usability, performance or safety
Broadening or narrowing the range
Improving the quality or service.
source:www.planware.org/businessplantips.htm
Before Starting to Write a Business Plan
Before any detailed work commences on writing a comprehensive business plan, you should:
Clearly define the target audience
Determine its requirements in relation to the contents and levels of detail
Map out the plan's structure (contents page)
Decide on the likely length of the plan
Identify all the main issues to be addressed.
Shortcomings in the concept and gaps in supporting evidence and proposals need to be clearly identified. This will facilitate an assessment of research to be undertaken before any drafting commences. Bear in mind that a business plan should be the end result of a careful and extensive research and development project which must be completed before any serious writing of a plan should be started. Under no circumstances should you start writing a plan before all the key issues have been crystallized and addressed.
For more tips and suggestions, check the white paper on Writing a Business Plan and Free-Plan our free 150-page Business Plan Guide and Template (Word format). Also, refer to the 30-point Checklist for Preparing a Business Plan.
source:www.planware.org/businessplantips.htm
Clearly define the target audience
Determine its requirements in relation to the contents and levels of detail
Map out the plan's structure (contents page)
Decide on the likely length of the plan
Identify all the main issues to be addressed.
Shortcomings in the concept and gaps in supporting evidence and proposals need to be clearly identified. This will facilitate an assessment of research to be undertaken before any drafting commences. Bear in mind that a business plan should be the end result of a careful and extensive research and development project which must be completed before any serious writing of a plan should be started. Under no circumstances should you start writing a plan before all the key issues have been crystallized and addressed.
For more tips and suggestions, check the white paper on Writing a Business Plan and Free-Plan our free 150-page Business Plan Guide and Template (Word format). Also, refer to the 30-point Checklist for Preparing a Business Plan.
source:www.planware.org/businessplantips.htm
How to Assess New Business Ideas
Having built up a moderate list of new business ideas, these must be evaluated so that a short-list of preferred options with the greatest potential and lowest risk can be assessed in greater depth.
One way of evaluating ideas would be to use a simple scoring system using gut-feel with a limited number of criteria such as personal fit, degree of risk, funding need and so on - see a comprehensive list of factors at Getting New Business Ideas.
Before scoring individual ideas, run through the criteria and set what you feel should be minimum desirable scores for each. The resultant total could be used as your overall minimum threshold. If some ideas don't achieve satisfactory scores, drop them and look for better ones.
Once your short-list has been developed, you will need to start devoting substantial time to assessment, research, development and planning. For a start, you could pursue the following tasks:
Discuss products/services with prospective customers
Assess the market using desk & field research
Analyze your competition
Consider possible start-up strategies
Set ball-park targets and prepare first-cut financial projections
Prepare a simple action plan
Critically examine ideas from all angles
For more insights into these tasks, see Getting New Business Ideas.
Bear in mind that the incubation period for a new business can easily last several months or even years. Don't rush into the first feasible idea without letting it incubate or develop in your mind for a reasonable period. There might be a tendency to get all fired up and enthusiastic such that your heart is starting to rule your head. Instead, stand back and think!! Do not be afraid to seek external assistance from professional advisers or from enterprise support organizations which are virtually everywhere. These include SBDCs in the US, Enterprise Agencies & Business Links in the UK, County Enterprise Boards in Ireland, EC BICs throughout the EU and so on...... For help with converting your preferred business idea into a business plan, see Getting New Business Ideas and Writing a Business Plan.
source:www.planware.org/businessplantips.htm
One way of evaluating ideas would be to use a simple scoring system using gut-feel with a limited number of criteria such as personal fit, degree of risk, funding need and so on - see a comprehensive list of factors at Getting New Business Ideas.
Before scoring individual ideas, run through the criteria and set what you feel should be minimum desirable scores for each. The resultant total could be used as your overall minimum threshold. If some ideas don't achieve satisfactory scores, drop them and look for better ones.
Once your short-list has been developed, you will need to start devoting substantial time to assessment, research, development and planning. For a start, you could pursue the following tasks:
Discuss products/services with prospective customers
Assess the market using desk & field research
Analyze your competition
Consider possible start-up strategies
Set ball-park targets and prepare first-cut financial projections
Prepare a simple action plan
Critically examine ideas from all angles
For more insights into these tasks, see Getting New Business Ideas.
Bear in mind that the incubation period for a new business can easily last several months or even years. Don't rush into the first feasible idea without letting it incubate or develop in your mind for a reasonable period. There might be a tendency to get all fired up and enthusiastic such that your heart is starting to rule your head. Instead, stand back and think!! Do not be afraid to seek external assistance from professional advisers or from enterprise support organizations which are virtually everywhere. These include SBDCs in the US, Enterprise Agencies & Business Links in the UK, County Enterprise Boards in Ireland, EC BICs throughout the EU and so on...... For help with converting your preferred business idea into a business plan, see Getting New Business Ideas and Writing a Business Plan.
source:www.planware.org/businessplantips.htm
Quotations to Inspire Better Business Planning
Here are some quotations to motivate and inspire the planning and development of your business:
Rise early, work hard, strike oil. (J Paul Getty)
The person who doesn't scatter the morning dew will not comb grey hairs (Irish proverb)
A chicken doesn't stop scratching just because worms are scarce (Grandma's Axiom)
A wise man turns chance into good fortune. (Thomas Fuller. Gnomologia, 1732)
A great fortune depends on luck, a small one on diligence. (Chinese proverb)
Luck is a dividend of sweat. The more you sweat, the luckier you get (Ray Kroc)
I'm a great believer in luck and I find the harder I work, the more I have of it. (Stephen Leacock)
Success is more attitude than aptitude. (Anonymous)
If, at first, you don't succeed, try again. (Proverb)
If, at first, you do succeed, try to hide your astonishment.(Los Angeles Times Syndicate)
There is nothing more difficult...than to take the lead in the introduction of a new order of things. (Niccolo Machiavelli)
If you want truly to understand something, try to change it. (Kurt Lewin)
Do not follow where the path may lead. Go instead where there is no path and leave a trail. (Ralph Waldo Emerson)
You cannot travel on the path until you become the path itself. (Gantana Bouddha)
There is no top. There are always further heights to reach. (Jascha Heifetz)
For the wise man looks into space and he knows there is no limited dimensions. (Lao-tse)
It is not best that we should all think alike; it is a difference of opinion that makes horse races. (Mark Twain)
It's not because things are difficult that we dare not venture. It's because we dare not venture that they are difficult. (Seneca)
It is a myth, not a mandate, a fable not a logic, and symbol rather than a reason by which men are moved. (Irwin Edman)
Great spirits have always encountered violent opposition from mediocre minds. (Albert Einstein)
Every wall is a door. (Ralph Waldo Emerson)
source:www.planware.org
Rise early, work hard, strike oil. (J Paul Getty)
The person who doesn't scatter the morning dew will not comb grey hairs (Irish proverb)
A chicken doesn't stop scratching just because worms are scarce (Grandma's Axiom)
A wise man turns chance into good fortune. (Thomas Fuller. Gnomologia, 1732)
A great fortune depends on luck, a small one on diligence. (Chinese proverb)
Luck is a dividend of sweat. The more you sweat, the luckier you get (Ray Kroc)
I'm a great believer in luck and I find the harder I work, the more I have of it. (Stephen Leacock)
Success is more attitude than aptitude. (Anonymous)
If, at first, you don't succeed, try again. (Proverb)
If, at first, you do succeed, try to hide your astonishment.(Los Angeles Times Syndicate)
There is nothing more difficult...than to take the lead in the introduction of a new order of things. (Niccolo Machiavelli)
If you want truly to understand something, try to change it. (Kurt Lewin)
Do not follow where the path may lead. Go instead where there is no path and leave a trail. (Ralph Waldo Emerson)
You cannot travel on the path until you become the path itself. (Gantana Bouddha)
There is no top. There are always further heights to reach. (Jascha Heifetz)
For the wise man looks into space and he knows there is no limited dimensions. (Lao-tse)
It is not best that we should all think alike; it is a difference of opinion that makes horse races. (Mark Twain)
It's not because things are difficult that we dare not venture. It's because we dare not venture that they are difficult. (Seneca)
It is a myth, not a mandate, a fable not a logic, and symbol rather than a reason by which men are moved. (Irwin Edman)
Great spirits have always encountered violent opposition from mediocre minds. (Albert Einstein)
Every wall is a door. (Ralph Waldo Emerson)
source:www.planware.org
Never Outsource your Business Plan
Here's the summary of a planning tip contributed by Intuitive Life: A Business Weblog by Dave Taylor:
A book I'm reading recommends that businesses consider outsourcing their business plan development because they'll "get a better business plan, faster, and at lower cost" than doing it in house. This is absolutely wrong-headed thinking: if you outsource your business plan process, your company will be more likely to fail, not less.
It's the process of creating the plan that's important not the end document. When you share your business plan with an investor or venture capital firm, they want to see something coherent and learn about a smart business, but just as importantly, they want to know that your team can sit in a room and hammer out a single, unified vision of your company, one that covers all the major bases, from marketing to defending your intellectual property, cost of sales analysis to partnership ideas. And yet, pop over to Google and you'll find hundreds of companies advertising that they'll write your business plan for you, that they'll "help you clarify your business goals" and that they'll "help you get funded with a rock-solid business plan." Reject these companies. All of them. The only part of business plan creation you can safely outsource is unbiased analysis. Once you're done with your plan, it can be a darn good idea for you to run it past a professional business startup consultant, because they can give you the investor's view of your plan. Expect to pay at least $1000 for this service.
It's really like a Zen Koan because the journey is the reward. If you think that having a beautiful printed business plan, perfect bound and with color illustrations is going to impress an investor more than one that your team has sweat over, fought over, and hammered out over time, you're wrong. It's the implementation, not the idea that investors are paying for: if you can't even own your business planning process, the odds of you getting your product out the door, executing on your plan and generating a return on investment are pretty darn low.
So here's some free advice from a serial entrepreneur and management consultant who's been there and read hundreds of business plans: write your own business plan. Fight your own fights with your partners, argue about sources of revenue, debate income projections, and force yourselves to figure out enough of Word and Excel to capture that moment of your company's life. Because business planning is all about process, not destination.
source:www.planware.org
A book I'm reading recommends that businesses consider outsourcing their business plan development because they'll "get a better business plan, faster, and at lower cost" than doing it in house. This is absolutely wrong-headed thinking: if you outsource your business plan process, your company will be more likely to fail, not less.
It's the process of creating the plan that's important not the end document. When you share your business plan with an investor or venture capital firm, they want to see something coherent and learn about a smart business, but just as importantly, they want to know that your team can sit in a room and hammer out a single, unified vision of your company, one that covers all the major bases, from marketing to defending your intellectual property, cost of sales analysis to partnership ideas. And yet, pop over to Google and you'll find hundreds of companies advertising that they'll write your business plan for you, that they'll "help you clarify your business goals" and that they'll "help you get funded with a rock-solid business plan." Reject these companies. All of them. The only part of business plan creation you can safely outsource is unbiased analysis. Once you're done with your plan, it can be a darn good idea for you to run it past a professional business startup consultant, because they can give you the investor's view of your plan. Expect to pay at least $1000 for this service.
It's really like a Zen Koan because the journey is the reward. If you think that having a beautiful printed business plan, perfect bound and with color illustrations is going to impress an investor more than one that your team has sweat over, fought over, and hammered out over time, you're wrong. It's the implementation, not the idea that investors are paying for: if you can't even own your business planning process, the odds of you getting your product out the door, executing on your plan and generating a return on investment are pretty darn low.
So here's some free advice from a serial entrepreneur and management consultant who's been there and read hundreds of business plans: write your own business plan. Fight your own fights with your partners, argue about sources of revenue, debate income projections, and force yourselves to figure out enough of Word and Excel to capture that moment of your company's life. Because business planning is all about process, not destination.
source:www.planware.org
SWOT before Planning your Business
A SWOT analysis is an assessment of the Strengths, Weaknesses, Opportunities and Threats facing a new or established business. It should always be conducted prior to the compilation of a detailed business plan. A realistic and unbiased SWOT analysis could form the basis for the strategies to be followed throughout the plan. A failure to determine SWOTs could result in a plan which is unclear, misguided and lacking focus and direction.
Strengths and weaknesses are essentially internal to the organization and relate to matters concerning resources, programs and organization in key areas.The objective is to build up a picture of the outstanding good and bad points, achievements and failures and other critical features within the company. If a startup is being planned, the strengths and weaknesses are related mainly to the promoter(s) - their experience, expertise and management abilities - rather than to the project.
The threats and opportunities are external to the company and relate to the industry and marketplace in which the business operates; changes or trends in competition, technologies and so on.
Once the SWOT review is complete, the future strategy may be readily apparent or, as is more likely the case, a series of strategies or combinations of tactics will suggest themselves. Use the SWOTs to help identify possible strategies as follows:Internal External
Build on strengths Exploit opportunities
Resolve weaknesses Avoid threats
If the business is seeking significant growth, it is important to fast-forward and assess SWOTs as they might exist a year or two hence. This will help ensure that strategies are ambitious and robust and that emerging issues are anticipated. Have a look at the discussion on SWOTs and related matters in Developing a Strategic Business Plan (and especially Sections 1.3 to 1.5).
The resulting strategies can then be filtered and moulded to form the basis of a realistic strategic plan - see Devising Business Strategies for further insights into the development of strategies and the free Online Strategic Planner for creating a 3-page strategic plan. Here is a sample strategic plan compiled using the planner. A plan along these lines should be incorporated into a business plan and it would, in effect, become the foundation for all the assessments, actions, projects and programs detailed throughout the plan.
source:www.planware.org
Strengths and weaknesses are essentially internal to the organization and relate to matters concerning resources, programs and organization in key areas.The objective is to build up a picture of the outstanding good and bad points, achievements and failures and other critical features within the company. If a startup is being planned, the strengths and weaknesses are related mainly to the promoter(s) - their experience, expertise and management abilities - rather than to the project.
The threats and opportunities are external to the company and relate to the industry and marketplace in which the business operates; changes or trends in competition, technologies and so on.
Once the SWOT review is complete, the future strategy may be readily apparent or, as is more likely the case, a series of strategies or combinations of tactics will suggest themselves. Use the SWOTs to help identify possible strategies as follows:Internal External
Build on strengths Exploit opportunities
Resolve weaknesses Avoid threats
If the business is seeking significant growth, it is important to fast-forward and assess SWOTs as they might exist a year or two hence. This will help ensure that strategies are ambitious and robust and that emerging issues are anticipated. Have a look at the discussion on SWOTs and related matters in Developing a Strategic Business Plan (and especially Sections 1.3 to 1.5).
The resulting strategies can then be filtered and moulded to form the basis of a realistic strategic plan - see Devising Business Strategies for further insights into the development of strategies and the free Online Strategic Planner for creating a 3-page strategic plan. Here is a sample strategic plan compiled using the planner. A plan along these lines should be incorporated into a business plan and it would, in effect, become the foundation for all the assessments, actions, projects and programs detailed throughout the plan.
source:www.planware.org
When Writing your Business Plan
Twelve things to do when writing your business plan:
1.Create a framework for the plan e.g. table of contents.
2.Identify possible appendices, attachments etc.
3.Estimate page lengths for each key section.
4.List main issues and topics to be covered within key sections.
5.Assign work programs based on the framework and lists.
6.Draft all key sections in a logical sequence.
7.Check the preliminary draft for completeness and plug gaps.
8.Stand back and take a detached overview of the draft.
9.Let an outsider or adviser critique the latest draft.
10.Redraft, fine tune and spell check.
11.Write the executive summary and plan's conclusion.
12.Get an independent assessment of the final draft.
source:www.planware.org/businessplantips.htm
1.Create a framework for the plan e.g. table of contents.
2.Identify possible appendices, attachments etc.
3.Estimate page lengths for each key section.
4.List main issues and topics to be covered within key sections.
5.Assign work programs based on the framework and lists.
6.Draft all key sections in a logical sequence.
7.Check the preliminary draft for completeness and plug gaps.
8.Stand back and take a detached overview of the draft.
9.Let an outsider or adviser critique the latest draft.
10.Redraft, fine tune and spell check.
11.Write the executive summary and plan's conclusion.
12.Get an independent assessment of the final draft.
source:www.planware.org/businessplantips.htm
Business Planning - Why you need a business plan
If ever there was a key skill you’ll need in your business – it’s planning.
You can still be your own boss if you’re not the most organised of people, but you’ll find it a very tough slog.
No matter how good or bad you are at forward planning, a solid business plan is arguably the most important business-related document you will ever create. It’s highly recommended for anyone starting a venture, as a way of ensuring you plan the kind of business you want to create.
If you’re going to need financial support from a bank, a private investor or you need to attract a business partner, it’s an absolute essential.
Your business plan need only be a few pages long, containing key information about the business. Don’t worry too much about the format; focus more on getting the information right and the correct message communicated.
Here’s a suggested list of contents:
1. Objectives: What do you want to achieve from your business? List key goals including a financial overview
2. Executive review: An overview of what the business will do and how. Include the legal structure, who will work in the business and what roles they will fulfill. Potential investors will use the information in this section to decide if the rest of the plan is worth looking at
3. Market analysis: How many businesses already offer this product or service, and where does your new venture sit in the marketplace?
4. Demand analysis: Who are your potential customers and how likely is it they will buy from you? Are you at the premium end, the budget end or somewhere in-between?
5. Environmental analysis: What impact will your venture have on the environment, and how can you minimise that?
7. Analysis of the competition: To launch a successful venture you need to offer something different. So work out what’s already out there and identify the gap that’s open to you.
8. Marketing strategy: Once you know the message you want to give out, show how you will do that. Don’t get into too much detail but give an overview of strategy
9. Success factors: What things must happen to make the business a success? Listing them in the business plan keeps them top of your awareness
11. Finances: List your likely costs and predicted revenue. This is normally done for three years. Remember most people underestimate costs and overestimate revenue
12. Conclusion: Sum up your business plan in a few sentences.
Remember that a busines plan should be a living document. It’s no good to you if you complete it and stick it on a shelf. Even when you are running your business, get in the habit of reviewing your plan at least once a quarter.
source:www.bytestart.co.uk
You can still be your own boss if you’re not the most organised of people, but you’ll find it a very tough slog.
No matter how good or bad you are at forward planning, a solid business plan is arguably the most important business-related document you will ever create. It’s highly recommended for anyone starting a venture, as a way of ensuring you plan the kind of business you want to create.
If you’re going to need financial support from a bank, a private investor or you need to attract a business partner, it’s an absolute essential.
Your business plan need only be a few pages long, containing key information about the business. Don’t worry too much about the format; focus more on getting the information right and the correct message communicated.
Here’s a suggested list of contents:
1. Objectives: What do you want to achieve from your business? List key goals including a financial overview
2. Executive review: An overview of what the business will do and how. Include the legal structure, who will work in the business and what roles they will fulfill. Potential investors will use the information in this section to decide if the rest of the plan is worth looking at
3. Market analysis: How many businesses already offer this product or service, and where does your new venture sit in the marketplace?
4. Demand analysis: Who are your potential customers and how likely is it they will buy from you? Are you at the premium end, the budget end or somewhere in-between?
5. Environmental analysis: What impact will your venture have on the environment, and how can you minimise that?
7. Analysis of the competition: To launch a successful venture you need to offer something different. So work out what’s already out there and identify the gap that’s open to you.
8. Marketing strategy: Once you know the message you want to give out, show how you will do that. Don’t get into too much detail but give an overview of strategy
9. Success factors: What things must happen to make the business a success? Listing them in the business plan keeps them top of your awareness
11. Finances: List your likely costs and predicted revenue. This is normally done for three years. Remember most people underestimate costs and overestimate revenue
12. Conclusion: Sum up your business plan in a few sentences.
Remember that a busines plan should be a living document. It’s no good to you if you complete it and stick it on a shelf. Even when you are running your business, get in the habit of reviewing your plan at least once a quarter.
source:www.bytestart.co.uk
Ten tips on how to start your own business
If you want your new solo business to flourish, it makes good sense to review these tips on how to start your own business.
As a soloist starting your own business today, you have the advantage of being able to learn from those who have gone before. The business success statistics are well known: a staggering 40% of all new businesses fail within the first 12 months. Within five years, more than 80% will have failed.
Here’s ten ideas on how to start your own business and avoid that fate.
1. Define your unique point of difference
Why will a customer come to you instead of anybody else? Are you better, more accurate, cheaper, more convenient, easy to install? Whatever your unique difference is, this is the question that, once answered, becomes the basis of all of your marketing messages.
2. A powerful vision
Why are you in business in the first place? What’s the inspirational dream that convinced you to go out on your own? There may be times when you doubt yourself, but if your vision is strong, it will be the thing that sees you through those times.
3. Repeatable, scalable systems
Any activity that occurs more than once in your business needs a system or process so it gets performed exactly the same way, every single time. This consistency means that you can handle extra volumes in the most efficient way, and that the customer gets the same experience (hopefully a great one!), every time they do business with you.
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4. Love the numbers
You may not be an accountant, but you must have an overwhelming interest in the numbers side of your business. You don’t have to create the reports - outsource by all means - but you definitely need to look at your cashflow, budget and profit and loss on a monthly basis. And if you don’t know what it all means, get your bookkeeper to sit with you each month and explain your financial position.
5. Always add value to the customer’s experience
No matter what service or product you provide, you can be guaranteed that someone out there is trying to do it differently, better, or cheaper than you are. You must consistently focus on adding great value to your customers – always try and delight them in some way. Then they’ll never feel inclined to take their business elsewhere.
6. Continually add to your skills and knowledge
A business can only grow as quickly as the person who owns it. Your investment in your own development is super important. When you learn new skills and come across new ideas, you apply them in your business which in turn drives evolution and innovation.
7. Plans
The purpose of planning is simply to work out how to spend your time, money and other resources effectively. Without considered plans you may find yourself spinning your wheels, jumping from one priority to the next, or simply being undecided. Plans allow you to:
prioritise activities
step back from the day to day issues and take a longer term view, and
anticipate problems before they arrive
8. Product innovation
All products have a defined life cycle. People’s needs change, and so must your products or services. Solo businesses have a tendency to retain unchanged products and services for too long. Be conscious of reframing, restructuring, or refreshing your offer on a regular basis.
9. Surround yourself with the right support
Successful business owners know what their skills are. They also know exactly what skills they don’t (and probably will never) have. Believe me, you are not ‘saving money’ by doing it all yourself, you are wasting time. Outsource those things that aren’t your specialty, and use that time to go and get some new business!
10. Stay close to your customers
The best people to give you feedback about how you are going are your customers. Successful soloists regularly ask their customers for feedback and ideas for improving what they do. And more importantly, they follow through on the feedback they get.
source:www.flyingsolo.com
As a soloist starting your own business today, you have the advantage of being able to learn from those who have gone before. The business success statistics are well known: a staggering 40% of all new businesses fail within the first 12 months. Within five years, more than 80% will have failed.
Here’s ten ideas on how to start your own business and avoid that fate.
1. Define your unique point of difference
Why will a customer come to you instead of anybody else? Are you better, more accurate, cheaper, more convenient, easy to install? Whatever your unique difference is, this is the question that, once answered, becomes the basis of all of your marketing messages.
2. A powerful vision
Why are you in business in the first place? What’s the inspirational dream that convinced you to go out on your own? There may be times when you doubt yourself, but if your vision is strong, it will be the thing that sees you through those times.
3. Repeatable, scalable systems
Any activity that occurs more than once in your business needs a system or process so it gets performed exactly the same way, every single time. This consistency means that you can handle extra volumes in the most efficient way, and that the customer gets the same experience (hopefully a great one!), every time they do business with you.
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4. Love the numbers
You may not be an accountant, but you must have an overwhelming interest in the numbers side of your business. You don’t have to create the reports - outsource by all means - but you definitely need to look at your cashflow, budget and profit and loss on a monthly basis. And if you don’t know what it all means, get your bookkeeper to sit with you each month and explain your financial position.
5. Always add value to the customer’s experience
No matter what service or product you provide, you can be guaranteed that someone out there is trying to do it differently, better, or cheaper than you are. You must consistently focus on adding great value to your customers – always try and delight them in some way. Then they’ll never feel inclined to take their business elsewhere.
6. Continually add to your skills and knowledge
A business can only grow as quickly as the person who owns it. Your investment in your own development is super important. When you learn new skills and come across new ideas, you apply them in your business which in turn drives evolution and innovation.
7. Plans
The purpose of planning is simply to work out how to spend your time, money and other resources effectively. Without considered plans you may find yourself spinning your wheels, jumping from one priority to the next, or simply being undecided. Plans allow you to:
prioritise activities
step back from the day to day issues and take a longer term view, and
anticipate problems before they arrive
8. Product innovation
All products have a defined life cycle. People’s needs change, and so must your products or services. Solo businesses have a tendency to retain unchanged products and services for too long. Be conscious of reframing, restructuring, or refreshing your offer on a regular basis.
9. Surround yourself with the right support
Successful business owners know what their skills are. They also know exactly what skills they don’t (and probably will never) have. Believe me, you are not ‘saving money’ by doing it all yourself, you are wasting time. Outsource those things that aren’t your specialty, and use that time to go and get some new business!
10. Stay close to your customers
The best people to give you feedback about how you are going are your customers. Successful soloists regularly ask their customers for feedback and ideas for improving what they do. And more importantly, they follow through on the feedback they get.
source:www.flyingsolo.com
Financing Your Business In 2009 by Joseph Lizio
There are many criteria that banks require in approving loans for businesses. What usually comes to mind first is credit, given today’s financial crisis. While credit is extremely important, there are many other factors in addition to credit scores that businesses must be aware of and account for when seeking capital for business growth. The following outlines a company’s ability to repay or service a new debt facility. Banks and other financial lenders will not just give you money because you think you need it; you have to be able to pay for it as well.
You must be able to repay your new debt – both the principle amount and the interest. Now, there are many structures to business debt like interest only (which I do not recommend), balloon payments, quarterly payments, etc. Still, you have to generate enough income from the business to service the payment amount. Further, not only do you have to generate enough money to pay the P & I, but you usually have to have a little bit more – usually 25% to 50%.
Why? This additional cushion provides the bank with assurance that your business could have a down period and still cover their payment.
Now to the numbers: To determine if your business could service a $100,000 business loan, begin with your net income. To this amount, add back depreciation (this is a non-cash accounting anomaly) and any and all interest payments that you already make and your taxes. This should be the net amount that your business has to cover your total debt service – this is essentially your earnings before interest, taxes, depreciation and amortization (EBITDA) or your actual cash profits from your operations.
For the remainder of this analysis, we will ignore taxes. The interest on your loan is an operating cost – meaning it reduces your taxable income. However, the principle portion that you pay comes straight out of your net income – after all other obligations are paid including local, state, and federal taxes. The reason we will ignore taxes is to make this analysis simple and demonstrate why banks and other financial lenders require higher debt service ratios.
At 8% for 48 monthly payments, a $100,000 loan would require a monthly service of $2,442 or $29,296 per year (straight amortization for simplicity purposes). Assuming that your business does not have any other debt, you would have to, at the least, earn this amount over and above all other business costs – over your EBITDA. However, most banks want to see a debt service ratio of 1:1.25x to 1:1.5x – meaning that you need to generate EBITDA between $3,053 and $3,663 per month in this case.
Should your business have other debt that is not being paid off with this new facility, add that amount to your debt service minimum payment above. You will then have to cover up to 1:1.5x all your debt obligations.
Further, banks do "what if" analysis on this debt service requirement. Take your operating profit (EBITDA) and reduce it by 10% and 20%. After these calculations, does this new income amount still cover the original payment amount of $2,442? If not, no loan. Again, banks want to ensure that your business could survive a down turn and still make its payment obligation to them.
Keep in mind that the above analysis is based on past financial (past results of your business). While the lender will make every attempt to forecast future projections, it does not significantly rely on expectations of what your business will or may do.
While this is a very basic analysis, I hope you get the gist of what banks look for when underwriting loans. Should your business not be able to meet these requirements, then negotiate a lower payment through interest reduction, loan amount reduction, or balloon payments or reevaluate your need for a loan. If you can’t pay for it, you don’t need it.
Additionally, there may be many other ways to finance your growing business. The most widely used for working capital loans and advances are accounts receivable financing (factoring), purchase order financing, and business cash advances. These types of facilities can help bridge the gap between cash outlay and revenue.
source:www.businessknowhow.com
You must be able to repay your new debt – both the principle amount and the interest. Now, there are many structures to business debt like interest only (which I do not recommend), balloon payments, quarterly payments, etc. Still, you have to generate enough income from the business to service the payment amount. Further, not only do you have to generate enough money to pay the P & I, but you usually have to have a little bit more – usually 25% to 50%.
Why? This additional cushion provides the bank with assurance that your business could have a down period and still cover their payment.
Now to the numbers: To determine if your business could service a $100,000 business loan, begin with your net income. To this amount, add back depreciation (this is a non-cash accounting anomaly) and any and all interest payments that you already make and your taxes. This should be the net amount that your business has to cover your total debt service – this is essentially your earnings before interest, taxes, depreciation and amortization (EBITDA) or your actual cash profits from your operations.
For the remainder of this analysis, we will ignore taxes. The interest on your loan is an operating cost – meaning it reduces your taxable income. However, the principle portion that you pay comes straight out of your net income – after all other obligations are paid including local, state, and federal taxes. The reason we will ignore taxes is to make this analysis simple and demonstrate why banks and other financial lenders require higher debt service ratios.
At 8% for 48 monthly payments, a $100,000 loan would require a monthly service of $2,442 or $29,296 per year (straight amortization for simplicity purposes). Assuming that your business does not have any other debt, you would have to, at the least, earn this amount over and above all other business costs – over your EBITDA. However, most banks want to see a debt service ratio of 1:1.25x to 1:1.5x – meaning that you need to generate EBITDA between $3,053 and $3,663 per month in this case.
Should your business have other debt that is not being paid off with this new facility, add that amount to your debt service minimum payment above. You will then have to cover up to 1:1.5x all your debt obligations.
Further, banks do "what if" analysis on this debt service requirement. Take your operating profit (EBITDA) and reduce it by 10% and 20%. After these calculations, does this new income amount still cover the original payment amount of $2,442? If not, no loan. Again, banks want to ensure that your business could survive a down turn and still make its payment obligation to them.
Keep in mind that the above analysis is based on past financial (past results of your business). While the lender will make every attempt to forecast future projections, it does not significantly rely on expectations of what your business will or may do.
While this is a very basic analysis, I hope you get the gist of what banks look for when underwriting loans. Should your business not be able to meet these requirements, then negotiate a lower payment through interest reduction, loan amount reduction, or balloon payments or reevaluate your need for a loan. If you can’t pay for it, you don’t need it.
Additionally, there may be many other ways to finance your growing business. The most widely used for working capital loans and advances are accounts receivable financing (factoring), purchase order financing, and business cash advances. These types of facilities can help bridge the gap between cash outlay and revenue.
source:www.businessknowhow.com
Senin, 16 Februari 2009
Sources of Capital for New, Start-up Businesses by Joseph Lizio
As the economy continues to face credit challenges, small businesses, especially new, start-up companies are finding it even more difficult to find the capital they need to take their ideas and concepts and turn them into viable businesses.
Private equity firms and angel groups are no longer actively seeking new investments. They are more concerned with preserving and protecting their current portfolios. Further, private investors, like your neighbor or local doctors, accounts, lawyers, are not investing in local companies as their investments and retirement portfolios (usually the main source of their investment capital) have taken such large hits that any new investments are just out of the question.
Bootstrapping, by far the greatest source of capital for new businesses, is drying up fast. Credit card issuers and backers are pulling programs, tightening approvals and reducing limits. Friends and families are struggling just to survive themselves and do not have the disposable income to investment in your company.
Taking loans from retirement accounts are nearly impossible today as the market values of these assets have drop so dramatically over the last two quarters. There just isn’t the value there to take a loan against.
SBA backed loans remain just a difficult and costly to obtain as always. These loans still need to be underwritten by traditional lenders who are not making any loans at all as well as be underwritten by the SBA who has followed the banks’ course in tightening standards.
So, what are new, small businesses to do?
A few suggestions are as follows:
First, start smaller and work your way up. Small scale operations mean smaller capital needs. Thus, the small amount of capital a new entrepreneur does have (savings, home equity, retirement plans) can be used to jump start a business if it is designed on a smaller scale.
Micro-Loans: Micro-loans are loans for small organizations or start-up companies that do not qualify for regular loan facilities. These loans usually range from $500 to $25,000 and take up to five weeks for approval and funding.
Personal Loans: There are still a few companies that make personal loans from $10,000 to $100,000 provided the borrower has excellent (and I mean excellent) credit and a demonstrated ability to make the loan payments.
Asset Based Facilities: If your business has some proven track record, even if it is just for a few months, and has generated some financial assets like accounts receivables or credit card receipts, you may qualify for capital against those assets.
Account Receivable Factoring can help speed up your cash flow while you wait for your customers to pay you. You can then access working capital that can be used to generate new business, cover current liabilities obligations, or make payroll. There are companies that will factor receivables as low as $200.
Included with Accounts Receivable Factoring is Purchase Order Financing. If your business has an order to be filled but does not have the money to complete the order (e.g. buy supplies or equipment or hire needed labor) Purchase Order financiers will provide the funds needed based on that order.
Business Cash Advances, while not really a loan, can provide working capital against FUTURE credit card sales. The funds can be use for any purpose and could provide the capital your business needs to get it through these troubled times.
Equipment: Do you own some equipment outright? If so, you can sale that equipment (including tools and machinery) to a leasing company. Then, lease the equipment back from the lessor. You get the cash you need now and still benefit from possible tax deductions of the lease payments and other costs.
Where there is a will, there is always a way. These may not be the cheapest financial products in the market but for most business owners and start-ups, these may be the only option.
When seeking capital in this market, try to keep in mind that it is only temporary. The markets will turn around and lending standard will loosen. So, what you seek now should only suffice enough to get your new, start-up business through this down period.
Copyright 2009 - BusinessMoneyToday.com
Joseph Lizio holds and MBA in Finance and Entrepreneurship and has a strong commercial lending background. In his current venture, Mr. Lizio is the founder of www.businessmoneytoday.com - a site designed to help business owners find and obtain capital to grow their businesses.
source: www.businessknowhow.com
Private equity firms and angel groups are no longer actively seeking new investments. They are more concerned with preserving and protecting their current portfolios. Further, private investors, like your neighbor or local doctors, accounts, lawyers, are not investing in local companies as their investments and retirement portfolios (usually the main source of their investment capital) have taken such large hits that any new investments are just out of the question.
Bootstrapping, by far the greatest source of capital for new businesses, is drying up fast. Credit card issuers and backers are pulling programs, tightening approvals and reducing limits. Friends and families are struggling just to survive themselves and do not have the disposable income to investment in your company.
Taking loans from retirement accounts are nearly impossible today as the market values of these assets have drop so dramatically over the last two quarters. There just isn’t the value there to take a loan against.
SBA backed loans remain just a difficult and costly to obtain as always. These loans still need to be underwritten by traditional lenders who are not making any loans at all as well as be underwritten by the SBA who has followed the banks’ course in tightening standards.
So, what are new, small businesses to do?
A few suggestions are as follows:
First, start smaller and work your way up. Small scale operations mean smaller capital needs. Thus, the small amount of capital a new entrepreneur does have (savings, home equity, retirement plans) can be used to jump start a business if it is designed on a smaller scale.
Micro-Loans: Micro-loans are loans for small organizations or start-up companies that do not qualify for regular loan facilities. These loans usually range from $500 to $25,000 and take up to five weeks for approval and funding.
Personal Loans: There are still a few companies that make personal loans from $10,000 to $100,000 provided the borrower has excellent (and I mean excellent) credit and a demonstrated ability to make the loan payments.
Asset Based Facilities: If your business has some proven track record, even if it is just for a few months, and has generated some financial assets like accounts receivables or credit card receipts, you may qualify for capital against those assets.
Account Receivable Factoring can help speed up your cash flow while you wait for your customers to pay you. You can then access working capital that can be used to generate new business, cover current liabilities obligations, or make payroll. There are companies that will factor receivables as low as $200.
Included with Accounts Receivable Factoring is Purchase Order Financing. If your business has an order to be filled but does not have the money to complete the order (e.g. buy supplies or equipment or hire needed labor) Purchase Order financiers will provide the funds needed based on that order.
Business Cash Advances, while not really a loan, can provide working capital against FUTURE credit card sales. The funds can be use for any purpose and could provide the capital your business needs to get it through these troubled times.
Equipment: Do you own some equipment outright? If so, you can sale that equipment (including tools and machinery) to a leasing company. Then, lease the equipment back from the lessor. You get the cash you need now and still benefit from possible tax deductions of the lease payments and other costs.
Where there is a will, there is always a way. These may not be the cheapest financial products in the market but for most business owners and start-ups, these may be the only option.
When seeking capital in this market, try to keep in mind that it is only temporary. The markets will turn around and lending standard will loosen. So, what you seek now should only suffice enough to get your new, start-up business through this down period.
Copyright 2009 - BusinessMoneyToday.com
Joseph Lizio holds and MBA in Finance and Entrepreneurship and has a strong commercial lending background. In his current venture, Mr. Lizio is the founder of www.businessmoneytoday.com - a site designed to help business owners find and obtain capital to grow their businesses.
source: www.businessknowhow.com
Senin, 09 Februari 2009
Simple Startup Tips
When going into business for yourself start out simple. In most states, the first step to starting your business is simply to register in your county for a fictitious business name, also called a “dba” (for “doing business as”) registration. This is very common. If you want to be “Dawn’s Design” or “Acme Furniture” or “Joe’s Diner,” or whatever, the registration makes you a legal business.
I did this in California a couple of times for $35 a pop, and once in Oregon, more recently, for $25. Normally you go to the county seat and establish that nobody else is using the name, then register it. In most states you will have to do a legal advertisement too, but they have forms in the registration office and local papers make this easy. Then, you go to your bank and take out a bank account with the new name, and you’re in business.
You may also need a business license, this would depend on local laws. Some areas require it, some don’t. Most don’t, actually.
If you will be running your business from your home the laws depend on the city rules, normally, zoning laws, and local licensing requirements. You could call your town hall or the chamber of commerce to ask. When I ran a home office business in Palo Alto in the early 1980s, you were not allowed to put a sign outside your house or take commercial deliveries. Otherwise, the city didn’t care.
As you look at these details, the best source of real help at an affordable cost is your local Small Business Development Center (SBDC). These are funded by federal, state, and local funds, and there are almost 1,000 of them throughout the country. They vary by state, but I know New Hampshire has an excellent program. Definitely one of the better ones.
Because SBDCs are publicly funded, they tend to offer business counseling for relatively low rates. I recommend them highly. You can find a list of SBDCs at our website.
source: http://articles.bplans.com/business-articles
I did this in California a couple of times for $35 a pop, and once in Oregon, more recently, for $25. Normally you go to the county seat and establish that nobody else is using the name, then register it. In most states you will have to do a legal advertisement too, but they have forms in the registration office and local papers make this easy. Then, you go to your bank and take out a bank account with the new name, and you’re in business.
You may also need a business license, this would depend on local laws. Some areas require it, some don’t. Most don’t, actually.
If you will be running your business from your home the laws depend on the city rules, normally, zoning laws, and local licensing requirements. You could call your town hall or the chamber of commerce to ask. When I ran a home office business in Palo Alto in the early 1980s, you were not allowed to put a sign outside your house or take commercial deliveries. Otherwise, the city didn’t care.
As you look at these details, the best source of real help at an affordable cost is your local Small Business Development Center (SBDC). These are funded by federal, state, and local funds, and there are almost 1,000 of them throughout the country. They vary by state, but I know New Hampshire has an excellent program. Definitely one of the better ones.
Because SBDCs are publicly funded, they tend to offer business counseling for relatively low rates. I recommend them highly. You can find a list of SBDCs at our website.
source: http://articles.bplans.com/business-articles
Putting a Computer Security Policy in Place
A friend of mine setting up an online printing operation e-mailed me a few weeks ago to ask for advice on setting up formal computer security policies to keep his business safe from intrusion. We went back and forth on the obvious ones—keep antivirus subscriptions current; enable a properly configured firewall; block access to the darker parts on the Internet.
The more we e-mailed, it became clear to both of us that it's a real predicament for startups that do business on the Internet to ever be safe from hacker attacks. The nature of Web-based threats, drive-by malware downloads, and clever social engineering attacks make it nearly impossible to be fully secure. Having acknowledged that, we narrowed down some must-do items that could help to minimize exposure to risk.
• Invest in anti-malware protection and make sure signature databases are current. When evaluating security software, ask about approaches to "whitelisting" (application control), "behavior blocking," and the use of "herd-intelligence."
• Stay on top of high-priority patches for Web server and desktop software programs. Be vigilant about software that gets installed on employee computers and stay away from programs without auto-update mechanisms. Pay special attention to patching known vulnerabilities in applications that are constant hacker targets. Some examples include Adobe PDF, Adobe Flash Player, Apple QuickTime, RealPlayer, and WinZip.
• Diversify browser usage and make it a policy for employees to use certain browsers for certain sensitive transactions. Microsoft's Internet Explorer, a popular target for hackers, should be avoided for high-value transactions.
• Adopt strong password policies. A strong password should be between 8 and 20 characters and must combine random upper- and lower-case letters, numbers and symbols. The longer and more complex your password is, the harder it is to crack using dictionary-based hacking tools.
source:http://www.businessweek.com/smallbiz/tips/
The more we e-mailed, it became clear to both of us that it's a real predicament for startups that do business on the Internet to ever be safe from hacker attacks. The nature of Web-based threats, drive-by malware downloads, and clever social engineering attacks make it nearly impossible to be fully secure. Having acknowledged that, we narrowed down some must-do items that could help to minimize exposure to risk.
• Invest in anti-malware protection and make sure signature databases are current. When evaluating security software, ask about approaches to "whitelisting" (application control), "behavior blocking," and the use of "herd-intelligence."
• Stay on top of high-priority patches for Web server and desktop software programs. Be vigilant about software that gets installed on employee computers and stay away from programs without auto-update mechanisms. Pay special attention to patching known vulnerabilities in applications that are constant hacker targets. Some examples include Adobe PDF, Adobe Flash Player, Apple QuickTime, RealPlayer, and WinZip.
• Diversify browser usage and make it a policy for employees to use certain browsers for certain sensitive transactions. Microsoft's Internet Explorer, a popular target for hackers, should be avoided for high-value transactions.
• Adopt strong password policies. A strong password should be between 8 and 20 characters and must combine random upper- and lower-case letters, numbers and symbols. The longer and more complex your password is, the harder it is to crack using dictionary-based hacking tools.
source:http://www.businessweek.com/smallbiz/tips/
Rabu, 21 Januari 2009
The Samurai Executive: Ancient Warrior Tips for Business Success Today
Many senior executives, CEOs, and managers have grown jaded over the past 20 years. In their search for a measurable way to accelerate performance, they’ve worked with their umpteenth consultant, and they’ve studied and tried to adopt the umpteenth Next Big Thing organizational theory, knowing even as they do that it lacks the meaning and depth they seek and will fade out of style in a year or two, just like the others before it.
Those who have learned of samurai principles, however, use ancient leadership techniques rather than following the latest fashionable trends in management theory. The ancient samurai ideas have been proven to be more substantial and more effective than reading any of the 35,000 new management books published annually. These ancient techniques may surprise you with their relevance in today’s business world; they simply deal more authentically with real organizational issues than pop theories do.
The samurai warrior functions as an excellent metaphor for leaders throughout the millennia. Unlike some other great leaders and leadership methodologies, the samurai system was well-documented and they were able to survive as an organization for a very long time. Until they were overwhelmed by technology and Western influence, they were able to repel every invader with their timeless, culture-crossing techniques.
As a leader in your organization, consider the following ancient leadership truths. Implementing them could help you lead organizational change, develop strategy, and create and manage great teams.
Death: Weak management teams are those that are not taught how to “die” properly. You needn’t literally commit suicide or start taking out your colleagues in the name of organizational improvement, but consider this: Few people who’ve lived through a heart attack or other serious illness continue to invest their energies in office politics when they recover. Just the prospect of physical death is transformative, pulling back a curtain to bring attention to what truly matters. Everything unimportant falls away.
In modern management, when people have been taught to “die” properly, they execute their work more bravely and are less consumed by the distractions of political infighting and other typical cultural implosions. To train your managers for death, you must all first look at the ugly realities of your culture. What is not being said? What is it in your organization that needs to die in order for it to move forward? Together, the group must bring into the open whatever is old and dysfunctional: misbehavior, pet projects, turf wars, hidden agendas, backstabbing, and so forth. With the ugly stuff exposed, you and your team can begin the journey to find out how committed the group is to “commit suicide” to those ego-driven agendas and create a new destination.
Bravery: Bravery is essential, not only on the battlefield, but also in communication. A lot of training and coaching fails to challenge executives on this idea; as such, many fail, even losing the company, because their people withhold difficult truths or spin reality for the boss’ sake. By the time the CEO gets crucial information, it may have been so politically sanitized that there’s no content left, and no one’s brave enough to stand up and say, “No, here’s what’s really going on.” Weak CEOs might even fire or threaten those who bravely stand up and speak the truth if it doesn’t line up with what they want to hear, thereby creating an environment that perpetuates weakness. Good CEOs, however, want to know, because even if they don’t like hearing the truth, they know it’s more dangerous not to know, so they seek out those people who will give them straight answers.
If you lead by example, you should be able to instill bravery in your people by admitting what you don’t know and encouraging your people to support you. Let them know that you expect the truth and reward those who exhibit bravery by taking risks. After awhile, when people see that there are no ill consequences for saying something that would have remained unspoken before, they become braver and more accountable.
Honor: Few CEOs evaluate a candidate’s capacity for honor when they hire, but they should. If integrity is not fostered, dishonor can flourish in an organization’s culture, ending with subpoenas, handcuffs, bankruptcies, and furious stockholders. Dishonor prevails when leadership shuts people down instead of making them accountable for policies, or micromanages instead of leading an empowered, open, and honest culture.
When leaders who lack integrity get data back that shows they’re not leading well, the honorable reaction of “What do I have to do to change and get better?” is rare. Instead, a leader without honor will question the data or the data takers, too out of touch to realize that he or she is the problem. When leaders set a dishonorable example, it isn’t long before their people start seeing that and a single bad idea begins to affect the entire executive team. From Watergate to WorldCom, there are too many modern examples of what happens when leaders create an environment that lacks honor.
Leaders who embrace the ancient samurai truth of honor live their values, not confining them to a coffee cup slogan or the company brochure. And if those values are violated, their sense of dishonor leads them to either leave the organization or take action to fix the problem. They simply do what they say and say what they do.
Life Balance: The samurai were taught to explore the world beyond battle and business, studying arts as diverse as poetry, painting, and horticulture to achieve balance in their lives. Only those with this balance were considered effective leaders, strategists, and warriors. In our world, you rarely find executives who have the time and discipline necessary to pursue other interests that have nothing to do with their work. If you can make the time, though, you’ll learn, as the samurai did, that you are inspired to new levels of innovation and creativity. The balance extends to the approach you take to the issues and challenges you face in business. You will align the power of the arts with the art of power.
Follow the way of the warrior to business success: These ancient samurai truths are much more than merely good ideas that worked for warriors 12 centuries ago. They are proven to have worked, not just over the past two years in a bestseller, but for the past 1200 years. Although today we know that the truths have a substantial scientific basis in anthropology and evolutionary genetics, these arts were lost because our culture’s beliefs and physics changed with time. But an ever-deeper exploration of the history of humanity teaches us that some truths are unchanging. And, bottom line, organizations that adopt the samurai techniques see their leadership development and their culture changes go from a 70-100% failure rate to an over 90% success rate. Shouldn’t your organization be one of these samurai success stories?
source:www.myarticlearchive.com
Those who have learned of samurai principles, however, use ancient leadership techniques rather than following the latest fashionable trends in management theory. The ancient samurai ideas have been proven to be more substantial and more effective than reading any of the 35,000 new management books published annually. These ancient techniques may surprise you with their relevance in today’s business world; they simply deal more authentically with real organizational issues than pop theories do.
The samurai warrior functions as an excellent metaphor for leaders throughout the millennia. Unlike some other great leaders and leadership methodologies, the samurai system was well-documented and they were able to survive as an organization for a very long time. Until they were overwhelmed by technology and Western influence, they were able to repel every invader with their timeless, culture-crossing techniques.
As a leader in your organization, consider the following ancient leadership truths. Implementing them could help you lead organizational change, develop strategy, and create and manage great teams.
Death: Weak management teams are those that are not taught how to “die” properly. You needn’t literally commit suicide or start taking out your colleagues in the name of organizational improvement, but consider this: Few people who’ve lived through a heart attack or other serious illness continue to invest their energies in office politics when they recover. Just the prospect of physical death is transformative, pulling back a curtain to bring attention to what truly matters. Everything unimportant falls away.
In modern management, when people have been taught to “die” properly, they execute their work more bravely and are less consumed by the distractions of political infighting and other typical cultural implosions. To train your managers for death, you must all first look at the ugly realities of your culture. What is not being said? What is it in your organization that needs to die in order for it to move forward? Together, the group must bring into the open whatever is old and dysfunctional: misbehavior, pet projects, turf wars, hidden agendas, backstabbing, and so forth. With the ugly stuff exposed, you and your team can begin the journey to find out how committed the group is to “commit suicide” to those ego-driven agendas and create a new destination.
Bravery: Bravery is essential, not only on the battlefield, but also in communication. A lot of training and coaching fails to challenge executives on this idea; as such, many fail, even losing the company, because their people withhold difficult truths or spin reality for the boss’ sake. By the time the CEO gets crucial information, it may have been so politically sanitized that there’s no content left, and no one’s brave enough to stand up and say, “No, here’s what’s really going on.” Weak CEOs might even fire or threaten those who bravely stand up and speak the truth if it doesn’t line up with what they want to hear, thereby creating an environment that perpetuates weakness. Good CEOs, however, want to know, because even if they don’t like hearing the truth, they know it’s more dangerous not to know, so they seek out those people who will give them straight answers.
If you lead by example, you should be able to instill bravery in your people by admitting what you don’t know and encouraging your people to support you. Let them know that you expect the truth and reward those who exhibit bravery by taking risks. After awhile, when people see that there are no ill consequences for saying something that would have remained unspoken before, they become braver and more accountable.
Honor: Few CEOs evaluate a candidate’s capacity for honor when they hire, but they should. If integrity is not fostered, dishonor can flourish in an organization’s culture, ending with subpoenas, handcuffs, bankruptcies, and furious stockholders. Dishonor prevails when leadership shuts people down instead of making them accountable for policies, or micromanages instead of leading an empowered, open, and honest culture.
When leaders who lack integrity get data back that shows they’re not leading well, the honorable reaction of “What do I have to do to change and get better?” is rare. Instead, a leader without honor will question the data or the data takers, too out of touch to realize that he or she is the problem. When leaders set a dishonorable example, it isn’t long before their people start seeing that and a single bad idea begins to affect the entire executive team. From Watergate to WorldCom, there are too many modern examples of what happens when leaders create an environment that lacks honor.
Leaders who embrace the ancient samurai truth of honor live their values, not confining them to a coffee cup slogan or the company brochure. And if those values are violated, their sense of dishonor leads them to either leave the organization or take action to fix the problem. They simply do what they say and say what they do.
Life Balance: The samurai were taught to explore the world beyond battle and business, studying arts as diverse as poetry, painting, and horticulture to achieve balance in their lives. Only those with this balance were considered effective leaders, strategists, and warriors. In our world, you rarely find executives who have the time and discipline necessary to pursue other interests that have nothing to do with their work. If you can make the time, though, you’ll learn, as the samurai did, that you are inspired to new levels of innovation and creativity. The balance extends to the approach you take to the issues and challenges you face in business. You will align the power of the arts with the art of power.
Follow the way of the warrior to business success: These ancient samurai truths are much more than merely good ideas that worked for warriors 12 centuries ago. They are proven to have worked, not just over the past two years in a bestseller, but for the past 1200 years. Although today we know that the truths have a substantial scientific basis in anthropology and evolutionary genetics, these arts were lost because our culture’s beliefs and physics changed with time. But an ever-deeper exploration of the history of humanity teaches us that some truths are unchanging. And, bottom line, organizations that adopt the samurai techniques see their leadership development and their culture changes go from a 70-100% failure rate to an over 90% success rate. Shouldn’t your organization be one of these samurai success stories?
source:www.myarticlearchive.com
Don't Overlook Search Engine Marketing Fundamentals
If you are looking to get more from your search engine marketing investment, take the time to evaluate and fine-tune your campaigns. You may have overlooked some fundamental tactics that can measurably improve your results. Here are a few to get you started.
Tactic 1: Expand your keyword list.
Brainstorming an intuitive set of keywords related to your products or services is the best way to start your campaign. You can easily expand your intuitive list by using the search engine's keyword tool or other tools available on the Internet like Wordtracker, HitWise, and Keyword Discovery. Bid on as many relevant keywords as you can. Expanding your keyword bidding list will allow you to get more traffic for less if you bid on less popular yet relevant keywords.
Tactic 2: Promote specific products or product categories separately.
Search engines like Google and Yahoo allow you to create several ad groups inside your campaign. This also allows you to use specific keywords and ad copy targeted to each product or category you want to promote. Each click-through should direct your visitor to the specific product you are promoting. You'll find out that you can get higher click-through rates when your ads contain the specific keywords you are targeting in an ad group. You may also find that smaller, more targeted keyword groups are easier to manage.
Tactic 3: Advertise locally.
If your business is focused on a particular geographic area, use keyword terms such as city, state, or metro area to attract those searching for nearby providers. You may find out that adding a particular location to your list of keywords can turn out to be less expensive and bring you more targeted customers.
source:www.businessweek.com
Tactic 1: Expand your keyword list.
Brainstorming an intuitive set of keywords related to your products or services is the best way to start your campaign. You can easily expand your intuitive list by using the search engine's keyword tool or other tools available on the Internet like Wordtracker, HitWise, and Keyword Discovery. Bid on as many relevant keywords as you can. Expanding your keyword bidding list will allow you to get more traffic for less if you bid on less popular yet relevant keywords.
Tactic 2: Promote specific products or product categories separately.
Search engines like Google and Yahoo allow you to create several ad groups inside your campaign. This also allows you to use specific keywords and ad copy targeted to each product or category you want to promote. Each click-through should direct your visitor to the specific product you are promoting. You'll find out that you can get higher click-through rates when your ads contain the specific keywords you are targeting in an ad group. You may also find that smaller, more targeted keyword groups are easier to manage.
Tactic 3: Advertise locally.
If your business is focused on a particular geographic area, use keyword terms such as city, state, or metro area to attract those searching for nearby providers. You may find out that adding a particular location to your list of keywords can turn out to be less expensive and bring you more targeted customers.
source:www.businessweek.com
Demonstrating Your Company's Commitment to Sustainability
As we head into 2009, new examples of wind and solar energy initiatives are popping up everywhere. More and more companies are looking for ways to reduce energy spending and create a corporate culture dedicated to improving the environment while still focusing on business.
Such changes should take place internally and also be reflected externally with your company's brand in mind. As a small-business owner, you should make certain the message and the media you use are aligned to show exactly what is important to your company and how it relates to the overall community. If, for example, you are thinking of outdoor advertising such as billboards, consider alternatives to bright LEDs, because they raise questions about safety and light pollution. Instead of print advertising, consider Web options to reduce the amount of paper waste created by corporate mailers.
Always remember that the tools you use say a lot about your business and its commitment to the environment.
source:www.businessweek.com
Such changes should take place internally and also be reflected externally with your company's brand in mind. As a small-business owner, you should make certain the message and the media you use are aligned to show exactly what is important to your company and how it relates to the overall community. If, for example, you are thinking of outdoor advertising such as billboards, consider alternatives to bright LEDs, because they raise questions about safety and light pollution. Instead of print advertising, consider Web options to reduce the amount of paper waste created by corporate mailers.
Always remember that the tools you use say a lot about your business and its commitment to the environment.
source:www.businessweek.com
Reducing Lighting Costs
As more of us look for ways we can reduce our energy consumption, both individually and within our businesses, indoor lighting is becoming a major issue. For small businesses, the following tips can be easily implemented with quick results:
• Explore your options. New fluorescents are available that are brighter, consume less power, and last longer. Using adapters, you can mount them on existing fluorescent infrastructure.
• Don't go overboard. Many businesses have lighting systems installed that produce more light than needed. There are simple lighting guidelines that measure the needed light for different work environments. You can also have your space evaluated by a lighting technician.
• Harness the power of the sun. It might be worthwhile buying solar panels and feeding energy back to the grid. Doing so can provide tax breaks and allow you to market your efforts to make your business "green."
source: www.businessweek.com
• Explore your options. New fluorescents are available that are brighter, consume less power, and last longer. Using adapters, you can mount them on existing fluorescent infrastructure.
• Don't go overboard. Many businesses have lighting systems installed that produce more light than needed. There are simple lighting guidelines that measure the needed light for different work environments. You can also have your space evaluated by a lighting technician.
• Harness the power of the sun. It might be worthwhile buying solar panels and feeding energy back to the grid. Doing so can provide tax breaks and allow you to market your efforts to make your business "green."
source: www.businessweek.com
How do you start a business?
1) Base a business on what you know
Create an idea for a business based on what interests you and what you know. If you are not passionate about the business, customers and prospects will sense it.
2) Target your market
Keep an eye out for unmet needs. If your community lacks a product or service that you have the ability and willingness to provide, you might be onto a kernel of a business idea. Talk to prospective customers, experts in the field and leverage every available resource. If possible, conduct online surveys, phone interviews and face-to-face discussions to sharpen your idea.
3) Be flexible
Once you have an idea, be prepared to modify it — flexibility is critical to being a small business owner. Ask any owner — a few unexpected experiences likely brought them to their destination.
4) Create a short business plan
“Your business plans should spell out who you plan to sell to, what they will pay for products and/or services, how your offering is unique, how you will reach customers and how you will turn a profit,” says Susan Sobbott, president of OPEN from American Express. Five pages is enough, she says, and the process of creating this document will help to polish your idea further and create a plan to get started. Network with members of the local chapter of the National Association of Women Business Owners (www.nawbo.org) in your area or visit a Small Business Administration’s Women’s Business Center (www.sba.gov) to help with research for your business plan.
SOURCE:www.msnbc.msn.com
Create an idea for a business based on what interests you and what you know. If you are not passionate about the business, customers and prospects will sense it.
2) Target your market
Keep an eye out for unmet needs. If your community lacks a product or service that you have the ability and willingness to provide, you might be onto a kernel of a business idea. Talk to prospective customers, experts in the field and leverage every available resource. If possible, conduct online surveys, phone interviews and face-to-face discussions to sharpen your idea.
3) Be flexible
Once you have an idea, be prepared to modify it — flexibility is critical to being a small business owner. Ask any owner — a few unexpected experiences likely brought them to their destination.
4) Create a short business plan
“Your business plans should spell out who you plan to sell to, what they will pay for products and/or services, how your offering is unique, how you will reach customers and how you will turn a profit,” says Susan Sobbott, president of OPEN from American Express. Five pages is enough, she says, and the process of creating this document will help to polish your idea further and create a plan to get started. Network with members of the local chapter of the National Association of Women Business Owners (www.nawbo.org) in your area or visit a Small Business Administration’s Women’s Business Center (www.sba.gov) to help with research for your business plan.
SOURCE:www.msnbc.msn.com
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