Business Buzz

Adding to the Conversation?

2012-02-29T18:20:00.002-05:00

Several people have asked me about blogging – what’s the point – what should I say – do I need one – and of course how can I start one? So I thought I would offer some reasons for blogging, what they might contain and how to get started.

Why Blog?

This really depends on you… maybe you can use it as a way to communicate with friends and family or as a creative outlet for your talents. Perhaps you have extreme knowledge of a particular subject and can offer some insights to others. You may want to start a blog to enhance your business by letting the world know what your business is and what you are doing or to draw in customers. If you like to write then blogging is for you.

Starting a Blog

Getting started couldn’t be easier – within a few minutes you can set up a theme for your blog and start writing. eBlogger and the increasingly popular Wordpress will lead you through this free and easy process. Sure you can pay for extras but the basics are free.

And then…

Another question I am often asked is – can I make money doing it? The answer is a resounding yes…

Get that blog started and in the next few weeks I let you know how to start earning some pennies that might grow into a bundle of cash.

Moving In On The Market - Claiming Your Space!

2012-02-29T18:19:00.000-05:00

The competitive analysis is number five on our business plan table of contents. Most companies fail to adequately investigate and analyze the competition. Failure to fully investigate the competition can be the single reason a company fails to thrive. Proper analysis provides the framework from which to build and formulate your strategic plan and to settle your place or position in the market.

In order to know your competitors you must first identify them. You need to understand what they offer and how this may speak to your target market. Perhaps the easiest way to get a global look at the competition is to rate them according to some key metrics. For example – you might look at reach or distribution, customer focus, cost and access. You should rate your own company against the competition (or how you expect your company to rate.) The more metrics you use the better your overall understanding of the competition will be. A thorough review may provide clues to possible future “potholes” that you can plan to avoid or exploit. At the end of the exercise you will have a competitor profile from which to plan your market strategy. A good or comprehensive profile will show the strengths and weaknesses of competing companies - when compared to your knowledge of what your customer needs/wants – it can offer you the competitive edge.

Your profile of each competitor should consider at the very least: location, background, financial health, product, market, brand, strategy and key personnel strength and style. You may also want to check the competition’s media buy, this will give you their target market and also help strategize your own media plans. Finally, providing a thorough analysis in your business plan will show possible investors that you are thorough and know your competition.

Without a competitive analysis – it’s just a roll of the dice....

Get to Know Your Customers and Keep an Eye on PESTS!

2012-02-29T18:17:00.002-05:00

Part IV of our business plan looks at customer analysis and market targeting. Knowing your customer is one of the most important functions of marketing. Only through a complete understanding the customer can you begin to offer services to meet their needs or conversely – know if your product is “buyable” to your target population. A customer analysis, is essentially a study centered on the “buyer” and an integral part of any business plan.

Perhaps the first question to ask is “what is the total market size for the product?” Where, and the details of “who” - are the next critical questions. Where is the market location, and what are the preferences and socioeconomic status of the target customer are critical to know. If the sale of your product is already underway – an analysis of who has purchased the product and where/how will help to focus in on your target population. Have you received any feedback on how the product might be improved? It is necessary for you to correctly understand your customers in order to create and develop a profile for targeting purposes. This is important if you are seeking investors since they usually ask for a complete profile of your niche target customers.

Businesses usually target many consumer categories or segments, and each consumer segment should be well developed. You will need to know who the decision makers are – are they your direct target? or will they confer with others before making a purchase. The decision processes - before, during and after purchase -should be included in the customer analysis.

The Target

The best companies manage to meet customer needs over a long period of time. Revenues and profits result from one thing – finding customers who are willing to pay for products or services that they need or meet their needs. Understanding the target customer is therefore, critical. Knowing and meeting your customer needs will help grow a long-term relationship that can endure and create a long standing loyalty.

Don’t Forget the Pests!

Businesses sometimes forget to look at the big picture (macroenvironmental factors.)

Political Factors - Include government regulations and legal issue. For example: Tax policies; employment laws; trade restrictions or tariffs.
Economic Factors – These impact the buying power of your customers. For example: interest/exchange/inflation rates.
Social Factors – These factors impact the size of current and potential markets. For example: health awareness, population growth, career emphasis, safety emphasis.
Technological Factors – These factors can reduce or remove barriers to access or increase productivity. Some examples are: rate of technological change; research and development climate; automation.

All the above factors need to be presented in your business plan to some degree in order to show that the company is knowledgeable of its markets and is viable for possible investors.

3 Simple & Compelling Reasons to Form A Corporation

2012-02-29T18:16:00.000-05:00

I was discussing the fun task of doing my 2010 taxes with some friends recently when the subject turned to “business ownership.” I was surprised to find the number of friends that were working as consultants or freelancers but had not “incorporated.” Since I have recently been working with a company that forms corporations on-line (making the chore very simple), I was asked why anyone would want to spend the money to incorporate. I immediately thought the opposite – why on earth would anyone risk their personal assets for the sake of spending a couple of hundred dollars on the protection and flexibility that incorporation brings. Incorporation offers separation between the business and its owners which is known as the “corporate veil” with that in mind here are my top 3 reasons to incorporate…

Limited Liability

No matter what state you live in, there are provisions in law that offer the incorporated protection of personal assets. Should your company get into trouble, have a “sue happy” client or get into debt, thanks to the “corporate veil” you have some protection for your personal assets and generally, they cannot be taken to satisfy corporate obligations.

Corporations are responsible for their own acts and debts – they can enter into contracts, own property, sue and be sued. A properly established corporation – operated separately and honestly offers the individual or sole proprietor personal asset protection. Without this protection your current and future assets are ripe for the picking.

Tax Flexibility

Tax pass through entities such as Corps and LLC’s typically have a fiscal year the same as the personal tax year. C-Corps can set their own their own tax year dates. Financial management can make great use of this flexibility and can offer great tax savings. Tax requirements change every year with additions and repeals – however the greater flexibility allows for better money management and most commonly lower taxes. IRS stats tell us that individuals deducting business expenses on their personal tax returns are the highest audited group. Corps earning less than $2 million a year is the lowest audited group. Naturally you should consult a tax advisor to find out what is best for you.

Credibility

Whether you are freelancing or selling widgets, you gain instant credibility with a well named business. It separates the professional from the hobbyist. Operating your business as a company is more attractive to creditors, investors, banks and prospective customers. Referrals and recommendations are more “sticky” if you have a company.

For me, an LLC was the best choice because it requires the least amount of “corporate chores.” There is no need to hold regular meetings of shareholders or board of directors – so less paperwork! With an LLC I can put shares into a living trust and I can deduct operating losses (to a certain extent) against my regular income. Should I decide in the future that I want to offer employee benefits; as an LLC, I can elect to be treated as an S or C- corporation for tax purposes.

Know your COMPANY, your COMPETITION and your CUSTOMERS….

2012-02-29T18:14:00.000-05:00

Make sure that you are armed with the right information before starting this section:

Know your COMPANY – conduct a SWOT analysis – know your strengths and weaknesses!
Know your COMPETITION – gather info on the successes and failures of others – you can learn from their mistakes increasing the odds of success!
Know your CUSTOMERS – who they are and what they want is critical information – a mistake here is “make it - or break it.”

The Industry Analysis is where you explain your position in the market. Always use topnotch references to support your position - this will add trust and weight to your analysis. Highlight the areas you want to emphasize with a graph or chart that is visually striking.

The items listed below naturally lead one to the other, they don’t need to be itemized, however, it is often helpful for the reader to know that you have provided a thorough analysis. You can combine overview and trends or market size and your position or any combination that works to provide interesting reading. Remember this doesn’t need to be a book we want the whole thing to be about 5 pages plus chart/graphs.

I have provided some very simple examples to help with writers block….

What a Brilliant Idea!!!

2012-01-09T12:09:00.001-05:00

In the next section of our business plan (Part II) we cover the company overview. This part really needs some loving care – if the reader gets past here - we are well on our way!! A fail here will put your business plan in the trash – especially if you are looking for funding. This part needs to convey what sold you on the business in the first place!

II. Company Overview

Company Profile

Company Vision/Mission Statement

Past Accomplishments

This is the place to set out the basics of your company and discuss your vision and overall goals. This section tells the reader who you are, what you are currently doing and where you plan to be in the future. The main reason your company exists (besides making money) is to provide a service or product to the marketplace that will either meet a need/desire, fill/enhance a niche or solve a problem – or perhaps all three.

The company Profile should be two or three paragraphs at most with a basic history of the company and the core message of what the company does. You should include the basic structure of the company and its core competencies. If someone reads these paragraphs they will know who you are.

Next in line is the Vision/Mission statement. The mission explains the guiding theme of your company -what you do – I provide X to Y in support of Z. The vision reaches into the future explaining what the outcome might be. You can mention the goals/milestones/objectives you have or “see” for the company in the future.

Now we have Past Accomplishments this is where you get to tell the story of the company. If you already have notable accomplishments they belong here – we want to leave this section upbeat with either accomplishments or highlights that demonstrate the successful side of the business.

In the next section we get a little deep into Industry Analysis. Don’t worry – it is easy if you take it step by step! We would love to hear from you – please feel free to leave a comment or send us an e-mail – it will help us improve the information we offer. We won’t ever try to sell you anything – promise!

Executive Summary First or Last?

2012-01-03T11:51:00.000-05:00

The first item on our table of contents (TOC) is the Executive Summary (ES.) The ES is a summary of your business plan and although it is first on the list - most people leave this until last because while working through the other elements of the business plan - you can see your most important aspects appear. Since this is the opening of your plan you need to be sure that you have included all the important elements. IMO this should be left until last because you need to get this right and interesting enough to ensure that the rest of the plan is not dismissed – especially if you are using it to ask for funds.

So what should the ES include? The usual suspects are included such as your business name, location, and product – then you should include the purpose of the plan. You might want to have a couple of standard ES – depending on the purpose. Of course you need to include items such as forecast sales and profits (generally for 3 years) and an explanation as to how you arrived at these. It is important to speak plainly, a bank or lender will be used to seeing fluff and unreal expectations and are less likely to put money up for unsubstantiated ideas.

As I said depending on the purpose your ES might look different. So what different purposes might those be? Here we get into the plethora of plans that you might need such as a strategic plan, an operations plan, an annual plan or a plan that seeks funding. Each ES should say what the intention of the plan is – if you are looking for money say so, and what you will give in return. Don’t forget to explain your niche or why you have the competitive edge. Stay focused – the ES doesn’t need to be a book ! Todays ES is concise and should be about one page in length. This may sound quick and easy but as Mark Twain once said “I have made this letter longer than usual, only because I have not had time to make it shorter.” So keep it short and sweet – remember you want them to read the whole plan – this is just the introduction. Like the trailer to a movie!

Tomorrow we will look at the basics of part II of our TOC – the Company Overview (Mission etc.) Also take a few moments and see what you can find on the web – think of some successful (of course!) companies and check out their business plans. OK we are on our way! Like I said earlier -you can do this! –no investment except a little time is required – what is the point of buying business plan software? That’s not to say that a good consultant is not worth their weight in gold – shameless plug! Until tomorrow….

Great News!!!

2011-12-26T15:25:00.001-05:00

Form-A-Corp a great small business that I suggested you use to get “incorporated” and start that new business you have been thinking about has won a Intuit small business grant to get growing! Big business with unlimited advertising and marketing budgets such as that “zoom” group have it made it tough to be heard. With grant help from great companies like Intuit – small business can at least put a few dollars by to spend on increasing the volume. Check out their blog!

Don’t forget to support small business – they are trying to grow and need your business while offering local jobs! The big companies are downsizing and trimming their workforces. Just saying….

So let’s get that Business Plan started!

2011-12-26T11:32:00.000-05:00

Below is a list of the items that should be included in your business plan – the basics if you will. Over the next couple of weeks we will discuss each item in more detail. This isn’t hard folks – but it may take you a little time to get some of the information together. I will offer hints and tips at each stage as you work your way through. If you are new to this it might take a few hours to pull it all together – but don't worry you will get there. Your business plan can help get funding but most importantly it shows the way forward and is a critical step to growing your business.

Don’t forget if you have a question – either leave a comment or send an e-mail – I will make sure you get an answer!

I. Executive Summary

II. Company Overview

Company Profile

Company Vision/Mission Statement

Past Accomplishments

III. Industry Analysis

Market Need

Market Fundamentals

Market/Industry Overview

Market/Industry Trends

Relevant Market Size

Unique Qualifications

IV. Customer Analysis

Customer Needs

Target Customer Profile

V. Competitive Analysis

Direct Competitors

Indirect Competitors

Competitive Advantage

VI. Marketing Plan

Products and Services

Branding and Promotions Plan

Distribution Plan

VII. Operations Plan

Key Operational Processes

Business Milestones

VIII. Management Team

Management Team Members

Management Team

Gaps

Board Members

IX. Financial Plan

Revenue Model

Financial Highlights

Key Assumptions

Topline Projections

Funding Requirements/Use of Funds

Repayment Strategy

Get these pieces set up in a word document as a table of contents (you can cut and paste) and we will be ready to go!

Business Plan Buzz

2011-12-14T11:52:00.000-05:00

Have been away for a couple of days - during which time several folks have asked if there is a business plan template I can share for free. Of course each type of business has very different aspects that need to be emphasized but generally there are basic steps or pieces you should have in every business plan.

In the next couple of days I will put together a template that outlines each of the “pieces” you need and then we can discuss each piece a little more in depth so that you have a full understanding of what is needed whether it is to get funding, have a way forward or to know what to expect if your hire a consultant to help you.

Don't forget to get that business you dreamed of started!!!

As always shoot me a question if you have something on your mind!

An old buzzword resurfaces....

2011-12-08T15:35:00.000-05:00

In these new economic realities, companies are looking at ways to save a penny as they hunker down for the uptick. An oldie but goldie has resurfaced as a means to plan for the lean times. The Strategic Plan has returned to guide the way.

Strategic Planning

Definition: A systematic process to plan for the overall course and direction of an organization for the purpose of optimizing its future potential. It involves a comprehensive business review and analysis of an organizations’ mission, vision, goals and objectives. It essentially tells you what you have and what you need if you are going to reach your company goals. In order to have a valuable strategic plan – you need to look at 5 basic areas:

Performance Management

Developing a strategy is essential but only the implementation of the strategy itself will deliver long-term benefits to the business. You will need metrics, data collection processes and systems to monitor and manage the business performance of the organization. In lean times ROI becomes key and it is worth going back to basics to ensure you are collecting the info you need. Cutting the chaff from the wheat will save time and money.

Governance

The integrity of an organization is particularly central to the health of its stability and economic growth. Corporate Governance insures that outcomes are in line with plans, and sets corrective actions to realign deviations. Making sure you have the talent that is capable of defining goals, guidelines and organizational identity is key to successful planning – these are the foundation layers.

Organizational Design

Meeting organizational goals, in line with the organizational mission and vision cannot be accomplished unless an organization is planned and designed. Organizational design includes designing the flow of work in organizations, grouping of tasks, and planning the relations between entities, all to define an effective communication and coordination, ensuring the growth and success of an organization

Change Management

Perhaps the most difficult part is improving organizational effectiveness. Planning and designing is crucial, yet actual results often don't come up to expectation. Changes can get mired in execution, changes that are made don't last, and costs become overwhelming.

Business Process Management

The application of knowledge, skills, tools, techniques and systems that will lead to enhancing efficiency and effectiveness, maximizing utilization, and minimizing errors and bottlenecks present in organizational processes. Education and encouragement are key.

Your company may have some excellent talent and galvanizing them to action with a single strategic view may be all you need to turn the volume up. Sometimes, you may need some outside help, a good consultant can tailor the help you need to minimize the costs while bringing in just the right expertise needed to expedite the plan. Either way – a strategic plan may be in your future as we hunker down for the long haul.

A little more buzz

2011-12-05T13:14:00.002-05:00

Advertising Age has a free webcast tomorrow - definitely worth a listen... sign up now.
Become a Social Media Marketing Maestro: Tips for Leading Your Orchestra through Active Listening & Engaging Content

Event Date: December 6, 2011 at 1:00 PM ET

Social media has definite correlations with branding, messaging and engagement – which just happen to be three primary marketing domains. Although tenets and best practices are still being written for marketing in social media, a number of companies – including IBM and Zendesk – have pioneered this uncharted territory with much success, as well as a few lessons learned along the way.

Join PR Newswire & Ad Age for this FREE webinar as we engage IBM & Zendesk’s marketing leaders in an insightful discussion on how they’ve utilized active listening techniques and brand-generated multimedia content to connect with social audiences, inform their marketing strategy and drive results.

During this webinar, we will discuss:

• The importance of listening to your Social Echo
• How to integrate social media into existing business practices
• Why high-value content matters
• How to overcome the challenges that accompany marketing in real time

All registrants will also receive a complimentary white paper. Register now!

Building the Buzz

2011-12-04T11:48:00.000-05:00

Getting your company or product noticed can be tough for small business start ups! Without a big budget for advertising and marketing – you may have to rely of word of mouth. The word of mouth of today is very different to what it was even 10 years ago. Facebook, Twitter, and LinkedIn plus a hundred other social networking mediums have made our friends closer than ever before and word of mouth is instantaneous. It seems the 6 degrees of separation theory is now 5 degrees.

The following information is from WIKI:

Facebook's data team released two papers in November 2011 which document that amongst all facebook users at the time of research (721 million users with 69 billion friendship links) there is an average distance of 4.74.

The LinkedIn professional networking site operates on the concept of how many steps you are away from a person you wish to communicate with. The site encourages you to pass messages to people in your network via the people in your 1st-degree connections list, who in turn pass it to their 1st-degree connections.

Users on Twitter can follow other users creating a network. According to a study of 5.2 billion such relationships by social media monitoring firm Sysomos, the average distance on Twitter is 4.67. On average, about 50% of people on Twitter are only four steps away from each other, while nearly everyone is five steps away.

So go ahead and ask your friends to spread the word – it just may be your best “free” marketing strategy.

Back to Basics

2011-11-16T11:06:00.000-05:00

Maybe your business is in the start-up stage, or maybe you have been running along for many years. As your company grows and evolves things get added. The more people you hire the more complex your organization becomes. It is important to do a “basics” check every year. Companies are growing breathing entities and it is easy to head off into to new horizons and lose sight of the fundamentals.

Amazing software products can fire information at you - in real time - and in highly professional looking charts or dashboards, but is it valuable information? Are you collecting and reporting information that will help you make decisions about the future or learn from the past? Or are you just producing a bunch of reports because you can? I have sat in many meetings and watched nodding heads as beautiful presentations of information were trotted out. I asked many of the nodding heads what they use the information for – most thought it really was for the benefit of someone else in room, few thought it offered them any real direction or value. If the reports in your meeting are only relevant to one or two departments, then time and money is being wasted.

As you move through the various stages of growth – it is important to step back and look at the basics of your business. What information am I collecting and what information do I need to collect? Will this information help my company or my staff get the job done or fulfill a requirement? As your company grows layers of bureaucracy are born which can impede growth if they are not examined for value.

What is Business Intelligence?

2011-11-10T15:03:00.000-05:00

You have business intelligence right? You and your colleagues are a pretty smart and experienced bunch – isn’t that business intelligence? The answer is “maybe” if you are using your intelligence to really know your business and have access to current details from which you can base your decisions.

“BI” is a buzzword that is often thought to involve the purchase of some highly complex software program - but the truth is business intelligence can be something as simple as a spreadsheet. Companies are often completely out of touch with the information or data that is flowing through the company. Sometimes the most important information is not even collected or the most base and fundamental pieces of information are not “put together” to provide a cohesive picture. Common sense really - you don’t have to be a technology wizard to understand the principles behind business intelligence – however, it is quite amazing how many companies are run on “gut” and luck.

BI is a way to gain insight into business that can provide valuable and timely information that can help make business decisions and positively effect and influence the enterprise. Over the next few weeks we will break down practical ways to ensure your business is “intelligent.” Please feel free to ask questions or comment on anything you read here. See you tomorrow.

Dreaming the Dream

2011-11-08T16:11:00.000-05:00

Perhaps you have a business already and are now thinking about a business plan, or perhaps you have yet to start a business. Either way beginning your plan requires a little dreaming. Where will you be in five years time? Can you see yourself doing this? This is the time to determine your objectives, dream the dream. The business plan is the way forward – do you have to follow it? Of course not. Does it have to be set in stone? No - it’s a working “idea” that sets the stage and lays out possible “viability” of the dream.

There are 3 distinctive types of the basic business plan. The working plan, the presentation plan and the strategic plan. Each plan can be different depending on your purpose for creating it. They all tend to have similar elements however, they each look at your business from a different perspective – what you are doing – what you want others to know about what you are doing and what you plan to do in the future. Many phenomenal businesses have started without a business plan – but all have come to embrace one or all of the types of plans I have mentioned.

If you don’t have a company yet, try FormACorp.Com they will get you going quickly. Looking for more ideas or some software to help with a business plan try Entrepreneur.Com for excellent business plan tips. Oh and don’t forget there are always consultants (Fathom) to help. Of course, you don’t need anything if you have the vision and the drive!

Business Plan Anyone?

2011-11-08T13:15:00.000-05:00

Outside View

It makes a lot of sense to hire a consultant when making a business plan. A consultant is not vested in any of the ways you are currently doing business, they will look for those things that are working and those that are not and weave them into a plan forward. Do you have a business plan? If not where are you going? Many business owners follow the bright shiney object of the day, a chaotic and unfocused way to make a living and one that without a huge helping of extreme luck will end with the business closing. Taking the time to set up a business plan helps your company move forward strategically.

Plan A or B?

Don’t get stuck in a plateau, making a plan can push you through to new heights. A strategic business plan (or two) can provide you with a map to the hidden treasure. It will help you pick your way through opportunities for the greater good, and won’t leave you second guessing a “missed” opportunity. Decide who you are and what you want and plan for success.

2011-11-08T11:30:00.000-05:00

Finally Fathom has decided its time to share its thoughts with the world. This is our first blog and just a note to get us up and running. As we join the blog world we expect to share some interesting perspectives and ideas with you. We hope you like what we say and can find some useful information to help your business grow. Watch this spot ... for our first real blog!