In the time it takes you to drink your morning coffee, you can start a business.
There's nothing as fragile as a great idea - especially a great business idea. With that in mind, how do you develop a new business idea so that it not only gains momentum, but actually takes on a life of its own? You have to make the commitment - stick with it and follow through.
Of course, that's easier said than done. Life happens, and everyday circumstances can stop you dead in your tracks. That's why it's essential to have a foolproof plan to keep you going despite your lack of time, knowledge or resources.
According to a survey by Yahoo! Small Business and Harris Interactive, 66 percent of American adults say they've considered starting a business. But many never take the leap.
Know this: Getting started is not about knowing exactly what to do. There's plenty of expert advice within your reach about the nuts and bolts of all aspects of business - from writing the plan to implementing marketing strategies to finding capital. But having the right information doesn't guarantee you'll put it into practice.
The art of the start is really about setting yourself up with a system that provides clear direction and keeps you moving forward no matter what challenges you face.
Lack of inertia is the number one killer of great ideas. Take a clue from Newton's first law of motion: Bodies in motion stay in motion. What does physics have to do with getting started? Keep yourself in motion, and you'll attract the necessary circumstances, situations and people to answer your questions, solve your problems and support you in building your business.
Staying in action doesn't have to overwhelm you, and it doesn't have to dominate your time. All it takes to keep your business in motion is 10 minutes a day.
1. Choose a Business That Fits You. You probably already have your dream business idea. Just be sure it's something there's a market for. Whether it's a franchise, retail or homebased business, choose a model that appeals to your personality traits, talents, skills and lifestyle preferences.
Lon Cohen has always been passionate about music. In 1979, he moved to Hollywood to pursue his dream of becoming a rock star. Today, at 49, he laughs about it: "When my red spandex pants didn't fit anymore, I took a job working for a guy who rented [out] guitars."
Starting at $9 an hour, he worked his way up to manager and began building a guitar collection of his own. Eventually, he had so much gear that, he says, "it made sense to start a business doing the same thing [as my boss]." Lon Cohen Studio Rentals was born.
2. State Your End Goal. You have to know where you're going in order to get there. Stating your end goal - the ultimate result you're looking to achieve - gives meaning to what you're doing and why. Writing it down so it sounds as if it were happening now not only keeps your intention right there in front of you, but it also makes your success real in the present moment. This is a great motivational tool, especially on the days when life gets in the way.
Cohen's end goal: being able to say, "I have a well-respected, profitable guitar rental company, which gives me freedom to do more of what I want."
3. Identify the Milestones That Make Up Your End Goal. Milestones are the markers that measure advancement on the road to your final destination. As you imagine yourself having already reached your end goal, you'll see the mileposts along the journey. Make a list of these incremental achievements. Don't limit yourself to what you think is possible at this point, and don't worry about how you're going to accomplish everything. These milestones become the basis for youraction plan.
Cohen's list included milestones such as:
Having a beautiful showroom and storage facility in a prime location
Hiring honest, reliable and experienced employees
Being able to offer rental, storage, cartage and tech services
Having a fleet of new vehicles and trucks
Having clients (including world-renowned musicians) come to him through word-of-mouth
4. Choose One Milestone From Your List. You've got to start somewhere. Choose one milestone as the place to begin, and focus on it. This can help keep you from feeling overwhelmed and reduces the chance of you scattering your energy in too many directions.
Cohen's one milestone: having a beautiful showroom and storage facility in a prime location.
5. Identify the Tasks Required to Achieve Your Milestone. Each milestone is made up of a series of individual tasks - small and simple activities plus big and somewhat daunting objectives. Make a list of all the obvious, practical and seemingly impossible tasks you need to accomplish to reach your milestone. Don't worry about how you're going to make them happen.
Cohen's list of tasks included:
Get a facility.
Remodel the layout to fit his needs.
Design and furnish the interior.
Purchase the necessary repair, tech and soundproofing equipment to accommodate the expansion.
Set up customized computer systems to manage every aspect of the business.
6. Choose One Task From Your List. Simplify again by choosing one task from your list. Focusing on one task at a time continues to channel your energy in a single direction.
Cohen's one task: Get a facility.
7. Break Your Task Into 10-Minute Actions. By breaking down your task into a series of 10-minute actions, you're essentially creating steps so simple, there's no room for procrastination. You may not have time to write your entire brochure at once, but you can sit down and identify three ways consumers will benefit from your product.
Why 10 minutes? Because it is feasible-and you are more inclined to do something when it's likely you'll succeed.
By asking himself the following questions, Cohen was able to break down his task into 10-minute actions.
Q: Can I get a facility in 10 minutes?
A: No.
Q: What do I need to do before I can do that?
A: I need to look at some available buildings and see my options.
Q: Can I do that in 10 minutes?
A: No.
Q: What do I need to do before I can do that?
A: I need to find a commercial real estate agent.
Q: Can I do that in 10 minutes?
A: No, because I don't know any.
Q: What do I need to do before I can do that?
A: I need to look in the Yellow Pages or get a reference.
Q: Can I do that in 10 minutes?
A: Yes. I can call Jim who just re-located his business and ask for his agent's number.
8. Schedule Your 10-Minute Action. Schedule your 10-minute action for a concrete date and time, as you would any other appointment. It's easy to forget yet another to-do on your already long list, so write it down in your day planner, Palm Pilot or BlackBerry.
9. Take Action Without Fail. When your 10-minute action appointment rolls around, keep it! Keeping your agreement with yourself is as important as keeping one with your biggest client. It reinforces your integrity and commitment to your business. If there's a conflict you can't work around, reschedule for a date and time you can keep. Remember, you'll never have "enough" time, and you'll always have 100 things that need to be done yesterday.
10. Commit to 30 Days of Action. It takes 30 days of consistent action to see measurable progress. You may think 300 minutes could hardly make an impact. But remember your physics lesson? Being in motion for 30 days straight generates momentum and creates a domino effect. One action produces a result that leads to another and another. Before you know it, you've jumped three steps, or five or six, ahead of where you thought you'd be.
And uncanny things start to happen - people present themselves, opportunities show up, resources find you. Action triggers the unpredictable and unexpected. Don't be surprised when one small action propels you into a quantum leap.
Cohen used this 10-step system to reach his milestone. He secured a funky, beautifully decorated facility, fully equipped for rental, cartage, storage and tech services, and it's located in a prime spot. So he began to focus on his next milestone: having clients (including world-renowned musicians) come to him through word-of-mouth.
"My approach was 'if you build it, they will come.' I had the facility, trucks, computers, and equipment. I started calling anyone and everyone I could think of and invited them down to see it," Cohen says. "Those people started telling people, and the next thing I knew, I got a call from a competitor who was going out of business. He sent all his clients to me."
The power of the small step is that it can take you from getting started to running a full-fledged business.
Twelve years ago, Cohen began his guitar rental business as a solo operation from home. His annual sales were $50,000. Today, he has a 6,000-square-foot facility in North Hollywood, eight employees and projected 2006 sales of $750,000. His clients include some of the top names in music, including Paul McCartney, Eric Clapton and Rod Stewart.
Lon Cohen Studio Rentals was built one step at a time, with steady increases and milestone victories. And as with most businesses, the journey wasn't always easy. "There were countless times I wanted to quit," Cohen says. "I'd get overwhelmed by the chaos and frustrated by all the problems. I felt afraid as I stared at the figures and thought about the financial risk, stressed about how it was going to turn out. But I committed, took small steps and learned as I went along. I was determined to get through."
This is a case in point for how to get started. Know your end goal, take action, and keep going, no matter how bumpy the ride gets. It's also a testament to the spirit of every entrepreneur - commitment, perseverance and the courage to go after one's dream. "As I think back on it, I'm pretty amazed," says Cohen. "I was a guy who played guitar in a band and knew nothing about starting a business. But I did have a clear picture of what I wanted the business to look like, and I kept focusing on the freedom it would give me." Today, that strategy has paid off tenfold.
What to Do When You Want to Give Up
Any successful entrepreneur will tell you that starting a business isn't always a smooth ride. Doors close. People object. Stuff happens. Here are some 10-minute actions you can take when you feel like throwing in the towel and walking away from your dream.
Calm Yourself Down. Breathe. Count to 10. Go for a walk. Do something that will take you out of your emotional reaction and give you perspective on your situation.
Read Your End Goal Statement. Remind yourself of what you're creating and why. This tends to jump-start your motivation because you've written it in the present tense, as if it were happening now.
Change Your Focus. Make a list of the positives. This could include what you have achieved, the contacts you have made or how much you have grown through the process thus far.
Look for the Opportunity. Ask yourself, "What is this situation trying to teach me?" Challenges can be the most valuable form of feedback. Any setback, glitch or crisis can be used as an opportunity to help you move forward.
Get Support. Hire a coach. Find a mentor. Consult an expert. Talk to an objective person (someone who believes in you) who can help evaluate the situation, answer your questions or guide you in finding the right solution.
Creative Ways to Find 10 Minutes
Your day is already scheduled with everything you should do and need to do. Making time for something you want without compromising other tasks can be difficult, but it doesn't have to be. Here are some creative ways to find 10 minutes to start building the business you've always dreamed about.
Try to wake up 10 minutes early, and use the time as soon as you wake up.
If you take public transportation, use the time during your commute to work. If you drive, take 10 minutes in the parking lot before you head into the office.
Make time for your task while your computer is booting up.
Take 10 minutes during your lunch hour or afternoon coffee break.
Use any time you're on hold on the phone.
Use the time during the commercials of your favorite TV show.
When your kids are napping or after they go to bed, spend 10 minutes on a task.
Use the time while dinner is cooking.
Take 10-minute breaks from watching your kids in the evening - alternate child-care shifts with your spouse.
Taken From (http://www.freshthinkingbusiness.com/start-a-business.html)
Thursday, 30 June 2011
How to be the Person Others Follow
Leaders are hard to find. They exhibit a unique blend of charisma, vision and character traits that attract people to follow them. They exhibit the other nine characteristics around which this article series was developed.
Leaders recognize the need to attract followers. Follower ship has recently been studied as a key to understanding leadership. To follow, people must feel confidence in the direction in which the leader is headed. They are enabled and empowered to do their part in accomplishing the stated objectives.
Further, leaders people follow are accountable and trustworthy. If progress towards accomplishing the goals ceases, the leader takes responsibility to analyze the problem – he doesn’t search for people to blame. So people can have confidence that their efforts won’t be punished if they take reasonable and responsible risks.
Followers need to believe that, at the end of the journey, they will be recognized and rewarded for their contribution. The leader must help followers answer the question, “What’s in it for me”? Successful leaders are honest about the potential risks inherent in the chosen path. They communicate, not just the overall direction, but any information followers need to successfully and skillfully carry out their responsibilities.
Occasionally, the leader is the person who is in charge, the founder of the business, the CEO, the president or department head. Leadership qualities combined with positional power magnify the ability of an individual to attract the all-important followers. In fact, business owners can count on a certain amount of respect and follower ship based on their ownership and title. Longevity, too, plays a role in attracting and retaining followers. People who have followed the leader for ten years will continue to follow unless they lose trust in the leader’s direction.
Taken From (http://humanresources.about.com/od/leadership/a/leader_follower.htm)
Leaders recognize the need to attract followers. Follower ship has recently been studied as a key to understanding leadership. To follow, people must feel confidence in the direction in which the leader is headed. They are enabled and empowered to do their part in accomplishing the stated objectives.
Further, leaders people follow are accountable and trustworthy. If progress towards accomplishing the goals ceases, the leader takes responsibility to analyze the problem – he doesn’t search for people to blame. So people can have confidence that their efforts won’t be punished if they take reasonable and responsible risks.
Followers need to believe that, at the end of the journey, they will be recognized and rewarded for their contribution. The leader must help followers answer the question, “What’s in it for me”? Successful leaders are honest about the potential risks inherent in the chosen path. They communicate, not just the overall direction, but any information followers need to successfully and skillfully carry out their responsibilities.
Occasionally, the leader is the person who is in charge, the founder of the business, the CEO, the president or department head. Leadership qualities combined with positional power magnify the ability of an individual to attract the all-important followers. In fact, business owners can count on a certain amount of respect and follower ship based on their ownership and title. Longevity, too, plays a role in attracting and retaining followers. People who have followed the leader for ten years will continue to follow unless they lose trust in the leader’s direction.
Taken From (http://humanresources.about.com/od/leadership/a/leader_follower.htm)
Before the Business Plan
Business plans are excellent and necessary. Far too few of us self-employed and freelance people use them.
They force us to spell out our objectives. We have to assign numbers to our expectations and assign a time-line to our goals. They become our road map and keep us on track.
But I suggest that you can't make a business plan that is worth anything until you've done your homework.
And that means knowing what you want to do and how you want to do it. And determining that there is sufficient demand for your product to generate enough income to cover your costs and allow a profit.
In other words, before the business plan comes research.
If a body of knowledge already exists, it makes sense to tap into it and save you some work. The US Bureau of Labor Statistics and other such sources, for example, publish a great deal of demographic information. Some of it is very useful.
But it is also likely that as a creative sole-proprietor, meaningful statistics don't exist about your specialty.
Many micro-businesses target a very specialized niche. And many owned by creative types exist to sell a product or service that don't follow well-worn prototypes.
It is particularly difficult for such people to find meaningful published data.
If you fall into these categories, you'll have to generate your own information.
Don't limit your research to purely business data. You are building a life as well as a business.
Are the demands and conditions of your proposed business compatible with the life you want to create?
For example, illustrators often work on short deadlines - meaning that sometimes they have to work far into the night to complete a project on deadline. Plus, some clients are demanding and some do not pay on a timely basis. After all of that, can you still "love it" enough?
Or, maybe your business is such that sales fluctuate during the year. How will you make it through the lean months? Can you handle the uncertainty of a fluctuating income?
So, how do you find information?
First, if other people provide services similar to yours, talk to them. You will gain a lot of information quickly. Their answers to your questions will save you a lot of legwork and open your eyes to factors you may not have considered.
Try to talk to at least five or six people so you can get a range of viewpoints.
You can find them through trade associations, schools, word-of-mouth. If the locals are reluctant to share information - perhaps because they see you as direct competition - look for similar people in a different locale.
Second, create the information you need.
Mimic and simplify what large businesses do. Reduce their methods down to a level that is practical and affordable.
For example, perhaps you want to survey potential clients and customers to get feedback.
If you are a creating a micro-business on a shoe-string, it may not be affordable nor practical to commission a focus group. But you may be able to speak to potential targets informally or use direct mail to send a simple survey.
Eventually you'll have to 'put your toe in the water.' Try it out in a small way - so you won't lose much if it doesn't work - and observe the results. Then experiment and modify as needed. Once it works to your liking you can plunge right in.
This approach, known by the technical term "trial and error," can be applied to any facet of your business.
After all, even the largest producers test market new products before rolling them out.
Put some parameters around your efforts. Decide, in advance, how much time you want to allow and how much you want to budget.
Then test, test, test.
Use trial and error for every aspect of your business. Experiment with different ways of packaging your services, different rates and prices, different types of marketing, etc.
You'll soon find that certain approaches work better than others. Eventually your experience and data will suggest viable strategies.
And then you'll be ready to create your business plan
Taken From (http://www.articlecircle.com/business/before-the-business-plan.html)
They force us to spell out our objectives. We have to assign numbers to our expectations and assign a time-line to our goals. They become our road map and keep us on track.
But I suggest that you can't make a business plan that is worth anything until you've done your homework.
And that means knowing what you want to do and how you want to do it. And determining that there is sufficient demand for your product to generate enough income to cover your costs and allow a profit.
In other words, before the business plan comes research.
If a body of knowledge already exists, it makes sense to tap into it and save you some work. The US Bureau of Labor Statistics and other such sources, for example, publish a great deal of demographic information. Some of it is very useful.
But it is also likely that as a creative sole-proprietor, meaningful statistics don't exist about your specialty.
Many micro-businesses target a very specialized niche. And many owned by creative types exist to sell a product or service that don't follow well-worn prototypes.
It is particularly difficult for such people to find meaningful published data.
If you fall into these categories, you'll have to generate your own information.
Don't limit your research to purely business data. You are building a life as well as a business.
Are the demands and conditions of your proposed business compatible with the life you want to create?
For example, illustrators often work on short deadlines - meaning that sometimes they have to work far into the night to complete a project on deadline. Plus, some clients are demanding and some do not pay on a timely basis. After all of that, can you still "love it" enough?
Or, maybe your business is such that sales fluctuate during the year. How will you make it through the lean months? Can you handle the uncertainty of a fluctuating income?
So, how do you find information?
First, if other people provide services similar to yours, talk to them. You will gain a lot of information quickly. Their answers to your questions will save you a lot of legwork and open your eyes to factors you may not have considered.
Try to talk to at least five or six people so you can get a range of viewpoints.
You can find them through trade associations, schools, word-of-mouth. If the locals are reluctant to share information - perhaps because they see you as direct competition - look for similar people in a different locale.
Second, create the information you need.
Mimic and simplify what large businesses do. Reduce their methods down to a level that is practical and affordable.
For example, perhaps you want to survey potential clients and customers to get feedback.
If you are a creating a micro-business on a shoe-string, it may not be affordable nor practical to commission a focus group. But you may be able to speak to potential targets informally or use direct mail to send a simple survey.
Eventually you'll have to 'put your toe in the water.' Try it out in a small way - so you won't lose much if it doesn't work - and observe the results. Then experiment and modify as needed. Once it works to your liking you can plunge right in.
This approach, known by the technical term "trial and error," can be applied to any facet of your business.
After all, even the largest producers test market new products before rolling them out.
Put some parameters around your efforts. Decide, in advance, how much time you want to allow and how much you want to budget.
Then test, test, test.
Use trial and error for every aspect of your business. Experiment with different ways of packaging your services, different rates and prices, different types of marketing, etc.
You'll soon find that certain approaches work better than others. Eventually your experience and data will suggest viable strategies.
And then you'll be ready to create your business plan
Taken From (http://www.articlecircle.com/business/before-the-business-plan.html)
Wednesday, 29 June 2011
Top 10 Tips For Effective Time Management
Effective time management is crucial in today's modern business world and should be a key-element in the strategy of every company. Creating a better structure of the company by integrating the different aspects can be an efficient way of doing this. Using business management software will enable your company to streamline the daily tasks through integrated business management and time management software .
Here are some tips for effective time management of your business:
1. Improve your marketing: Marketing communication using data provides you with a great method to target customers through e-mail and promotion based on the sales activity, keep track of performance and history and create sales opportunities.
2. Streamline sales: Make your sales process more efficient by managing invoices, quotes, forecasts and orders, analyses profitability as well as organizing manufacturing and stock-based planning.
3. More efficient purchasing: Make your purchasing more efficient by using stock- based sales forecasts and keep supplier information, product delivery details and price comparisons for future reference.
4. More manufacturing control: Take control over manufacturing processes by using production schedules, manage contractors and help maintain margins and recover overhead costs.
5. Stock management: By using more cost-effective management of stock you can allocate stock to sales orders, maintain detailed information about the stock (like size, weight and cost) and easily manage incoming or outgoing goods.
6. Customer Service: Effectively manage your customer service by scheduling your service calls and visits, record the servicing details and parts history, and manage customer warranties.
7. Improved integration between departments: By improving the integration of the different departments of your business you can save time, your employees can access the data they need quickly and efficiently.
8. Performance reports: Reports can be defined by the user to display the relevant data they need, analyses trends or monitor and compare performance, keep everyone up to date.
9. Flexible and convenient: customize the system to meet the specific needs of your company.
10. Reduce the need for paper: With everyone able to find the information they need there will be less need for printing.
Deploying an integrated system can effectively enable you to manage costs, increase efficiency and give you a competitive edge. In today's marketplace reduced product life cycles, higher levels of service and increasing compliance pressure are common, and businesses have to adapt to meet the needs, using an integrated management system makes sense. Furthermore, companies are under increasing pressure to demonstrate their responsibilities through effective quality management, sound environmental practices and safety.
By using fully integrated software you can achieve better time management and more efficiency whatever the size or sector of your business. Making the data available to your marketing, sales, purchasing and servicing departments can reduce the normally time-consuming processes and manage people, projects, strategy and outcomes. Business management software gives you a strategic perspective to work from and provides you with a competitive advantage.
The results of your projects and jobs are detrimental to your success and important for your reputation. Sales and operations planning solutions can empower executive- level decision making and financial and operational plans by enabling the process of business management.
Every business follows a process. It becomes very important to give a definite framework to the business so as to manage it effectively. One of the most powerful ways to improve your business process is to use integrated business management and time management software.
Taken from (http://www.isnare.com/?aid=885251&ca=Business+Management)
Here are some tips for effective time management of your business:
1. Improve your marketing: Marketing communication using data provides you with a great method to target customers through e-mail and promotion based on the sales activity, keep track of performance and history and create sales opportunities.
2. Streamline sales: Make your sales process more efficient by managing invoices, quotes, forecasts and orders, analyses profitability as well as organizing manufacturing and stock-based planning.
3. More efficient purchasing: Make your purchasing more efficient by using stock- based sales forecasts and keep supplier information, product delivery details and price comparisons for future reference.
4. More manufacturing control: Take control over manufacturing processes by using production schedules, manage contractors and help maintain margins and recover overhead costs.
5. Stock management: By using more cost-effective management of stock you can allocate stock to sales orders, maintain detailed information about the stock (like size, weight and cost) and easily manage incoming or outgoing goods.
6. Customer Service: Effectively manage your customer service by scheduling your service calls and visits, record the servicing details and parts history, and manage customer warranties.
7. Improved integration between departments: By improving the integration of the different departments of your business you can save time, your employees can access the data they need quickly and efficiently.
8. Performance reports: Reports can be defined by the user to display the relevant data they need, analyses trends or monitor and compare performance, keep everyone up to date.
9. Flexible and convenient: customize the system to meet the specific needs of your company.
10. Reduce the need for paper: With everyone able to find the information they need there will be less need for printing.
Deploying an integrated system can effectively enable you to manage costs, increase efficiency and give you a competitive edge. In today's marketplace reduced product life cycles, higher levels of service and increasing compliance pressure are common, and businesses have to adapt to meet the needs, using an integrated management system makes sense. Furthermore, companies are under increasing pressure to demonstrate their responsibilities through effective quality management, sound environmental practices and safety.
By using fully integrated software you can achieve better time management and more efficiency whatever the size or sector of your business. Making the data available to your marketing, sales, purchasing and servicing departments can reduce the normally time-consuming processes and manage people, projects, strategy and outcomes. Business management software gives you a strategic perspective to work from and provides you with a competitive advantage.
The results of your projects and jobs are detrimental to your success and important for your reputation. Sales and operations planning solutions can empower executive- level decision making and financial and operational plans by enabling the process of business management.
Every business follows a process. It becomes very important to give a definite framework to the business so as to manage it effectively. One of the most powerful ways to improve your business process is to use integrated business management and time management software.
Taken from (http://www.isnare.com/?aid=885251&ca=Business+Management)
Monday, 27 June 2011
10 benefits to running your own business
People do not work for themselves to get rich; there’s lots of research that disproves that common belief. Greed is rarely a motivation for taking the risk of free enterprise. Here are the real benefits:
1: Freedom – No boss means no petty rules, no asking permission to visit the dentist and the freedom to set your own goals.
2: Vision – You want to leave your mark on the world and change something. Running your own business enables you to do this to a greater extent than you could as an employee.
3: Control – You’re in the driving seat and no one can come and close down your department as part of some global restructure. Your destiny rests in your hands alone.
4: Choice – There are no policies that dictate the car you drive, the software you use or the colour of the office wall. Your own organization can reflect your personal taste and style.
5: Ambition – Your ambition is only limited by your ability to grow your business. Equally, if you want to stay small, you can.
6: Safety net – There are lots of insurance products out there that can provide you with a financial safety net. Long term sickness or your sudden death need not mean poverty for your family.
7: Work at home – It’s likely you’ll start a new business from home. That means you can get up at 0855 and be at your desk for 0900!
8: You choose your team – As you’re the boss, you get to hire the people you want and not be stuck with who the boss hires to work with you.
9: Long holidays – Providing you can organize your business to allow it, you can take as much time off as you want, whenever you want.
10: Flexible – You can adapt quickly to new opportunity. You no longer have to feed ideas up the line for other’s to make the decision.
Taken From (http://www.robertashton.co.uk/articles/20060731_13)
1: Freedom – No boss means no petty rules, no asking permission to visit the dentist and the freedom to set your own goals.
2: Vision – You want to leave your mark on the world and change something. Running your own business enables you to do this to a greater extent than you could as an employee.
3: Control – You’re in the driving seat and no one can come and close down your department as part of some global restructure. Your destiny rests in your hands alone.
4: Choice – There are no policies that dictate the car you drive, the software you use or the colour of the office wall. Your own organization can reflect your personal taste and style.
5: Ambition – Your ambition is only limited by your ability to grow your business. Equally, if you want to stay small, you can.
6: Safety net – There are lots of insurance products out there that can provide you with a financial safety net. Long term sickness or your sudden death need not mean poverty for your family.
7: Work at home – It’s likely you’ll start a new business from home. That means you can get up at 0855 and be at your desk for 0900!
8: You choose your team – As you’re the boss, you get to hire the people you want and not be stuck with who the boss hires to work with you.
9: Long holidays – Providing you can organize your business to allow it, you can take as much time off as you want, whenever you want.
10: Flexible – You can adapt quickly to new opportunity. You no longer have to feed ideas up the line for other’s to make the decision.
Taken From (http://www.robertashton.co.uk/articles/20060731_13)
Sunday, 26 June 2011
Top 13 Benefits of Social Media Marketing
There’s a lot of fuss surrounding social media these days. If you still haven’t jumped on the bandwagon and aren’t sure why so many people are making such a big deal about it, here are 13 benefits of social media for your business and you from Success magazine.
For Business:
Establish a Brand and Raise Awareness
Since the majority of the population is already visiting social media sites like Facebook, Twitter and YouTube, getting your brand name all over those networks can help let people know that you’re around. If you have yet to create a company image online, social networks are the place to do it.
Create a fun YouTube video that entertains and informs. Funny videos tend to make their way around the Internet a lot faster than any other kind, so when making a video, keep in mind that you want it to be interesting enough for your target audience to want to share. Using Facebook and Twitter to create a fun online community that your customers will want to visit will boost brand loyalty and drive traffic to your Website, allowing you the chance to make more online sales.
Spy on the Competition
Follow your competitors on Twitter and Facebook and you’ll be able to see what they have up their sleeve. Just make sure to provide a better deal than whatever they have going on.
Pitch Products in a More Human, Interactive Way
Since people visit social media sites to get personal rather than be bombarded with ads, discuss your business in a fun way and engage your customers with questions. Ask their opinions and entice them to respond back. This way you’re making a valuable connection that will help grow your number of return customers.
Bring Attention to Your Products
Featuring a product on a social media site is one of the fastest ways to bring attention to it. Offer a promotion along with it for your online community members and watch your sales skyrocket.
Increase Customer Loyalty And Trust
Speaking to your customers in a personal way will make them feel like they are talking to a friend, not a company. This will help build their trust in you, which will make them do business with you rather than your competition. It will also improve the chances of customer recommendations.
Listen to Your Customer’s Opinion
Social media sites are an awesome way to see what your target audience is saying about your company or your products. Take their constructive criticism and use it to enhance your product to better meet their needs.
Conduct Market Research
Listen to what your customers say about your products and track what links they click on and you’ll begin to see what your customers like and respond to. People love to express their opinions on social media sites, which will allow you to hear the truth. Then you can use your new-found information to tweak your product or service to please them as well as continue to post more information and links that they will enjoy.
Strengthen Customer Service
Social media networks allow your company to answer your customers’ questions and concerns directly in a timely manner. This will improve customer satisfaction and also save you money on long distance customer service phone calls.
For You:
Build Your Personal Reputation
Social networks allow you to get your name out to the world and talk about things that matter to you. This will help you build a good online reputation, which is critical nowadays if you’re looking for a job or even a new business contact.
Find a Job
Jobs are posted every minute on social networks like LinkedIn and Twitter along with the links or information you need to apply for them.
Showcase Your Talents And Establish Yourself as an Expert
If you’re passionate about a certain subject, whether it’s work-related or a hobby, the Internet is a great place to show off your knowledge. Soon people will be coming to you for the breaking information on that topic, and talking about you to friends.
Enhance Your Business Contacts and Enhance Personal Relationships
Through professional sites like LinkedIn, you can build your number of business contacts and enhance your reputation as an expert in your industry. You can also connect with those long-lost high school and college classmates, old colleagues, and out-of-town family members.
Share Information with Like-Minded People
Connect with other professionals in your field to share information. Where else would you be able to connect with industry professionals across the globe to swap stories and advice?
For Business:
Establish a Brand and Raise Awareness
Since the majority of the population is already visiting social media sites like Facebook, Twitter and YouTube, getting your brand name all over those networks can help let people know that you’re around. If you have yet to create a company image online, social networks are the place to do it.
Create a fun YouTube video that entertains and informs. Funny videos tend to make their way around the Internet a lot faster than any other kind, so when making a video, keep in mind that you want it to be interesting enough for your target audience to want to share. Using Facebook and Twitter to create a fun online community that your customers will want to visit will boost brand loyalty and drive traffic to your Website, allowing you the chance to make more online sales.
Spy on the Competition
Follow your competitors on Twitter and Facebook and you’ll be able to see what they have up their sleeve. Just make sure to provide a better deal than whatever they have going on.
Pitch Products in a More Human, Interactive Way
Since people visit social media sites to get personal rather than be bombarded with ads, discuss your business in a fun way and engage your customers with questions. Ask their opinions and entice them to respond back. This way you’re making a valuable connection that will help grow your number of return customers.
Bring Attention to Your Products
Featuring a product on a social media site is one of the fastest ways to bring attention to it. Offer a promotion along with it for your online community members and watch your sales skyrocket.
Increase Customer Loyalty And Trust
Speaking to your customers in a personal way will make them feel like they are talking to a friend, not a company. This will help build their trust in you, which will make them do business with you rather than your competition. It will also improve the chances of customer recommendations.
Listen to Your Customer’s Opinion
Social media sites are an awesome way to see what your target audience is saying about your company or your products. Take their constructive criticism and use it to enhance your product to better meet their needs.
Conduct Market Research
Listen to what your customers say about your products and track what links they click on and you’ll begin to see what your customers like and respond to. People love to express their opinions on social media sites, which will allow you to hear the truth. Then you can use your new-found information to tweak your product or service to please them as well as continue to post more information and links that they will enjoy.
Strengthen Customer Service
Social media networks allow your company to answer your customers’ questions and concerns directly in a timely manner. This will improve customer satisfaction and also save you money on long distance customer service phone calls.
For You:
Build Your Personal Reputation
Social networks allow you to get your name out to the world and talk about things that matter to you. This will help you build a good online reputation, which is critical nowadays if you’re looking for a job or even a new business contact.
Find a Job
Jobs are posted every minute on social networks like LinkedIn and Twitter along with the links or information you need to apply for them.
Showcase Your Talents And Establish Yourself as an Expert
If you’re passionate about a certain subject, whether it’s work-related or a hobby, the Internet is a great place to show off your knowledge. Soon people will be coming to you for the breaking information on that topic, and talking about you to friends.
Enhance Your Business Contacts and Enhance Personal Relationships
Through professional sites like LinkedIn, you can build your number of business contacts and enhance your reputation as an expert in your industry. You can also connect with those long-lost high school and college classmates, old colleagues, and out-of-town family members.
Share Information with Like-Minded People
Connect with other professionals in your field to share information. Where else would you be able to connect with industry professionals across the globe to swap stories and advice?
Saturday, 25 June 2011
The Ten-Step, One-Day Strategic Plan
You don’t have to kill a tree or shut down the office for a week to create a successful strategic plan. In fact, you can create a successful plan for your business in just one day. It doesn’t have to be an overwhelming or a monumental task. It doesn’t have to be perfect or fancy. Just grab a few key people in your organization, turn off the phones and let’s get started.
Step One – Be the best.
The result of a well-developed and executed strategic plan is to develop a competitive advantage. Just what is a competitive advantage? Business lingo aside, it is simply the answer to: What can your company potentially do better than any other company?
Understanding your competitive advantage is critical. It is the reason you are in business. It is what you do best that draws customers to buy your product/service instead of your competitor’s. Extremely successful companies deliberately make choices to be unique and different in activities that they are really, really good at and they focus all of their energy in these areas. You may decide to incorporate your competitive advantage into your mission and/or vision statements.
Step Two – State your purpose.
A mission statement is a statement of the company’s purpose. It is useful for putting the spotlight on what business a company is presently in and the customer needs it is presently endeavoring to serve. It also serves as a guide for day-to-day operations and as the foundation for future decision-making. To write a mission statement, answer the questions: What is our business? What are we trying to accomplish for our customers? What is our company’s reason for existing?
Step Three – Visualize the future.
A strategic vision is the image of a company’s future – the direction it is headed, the customer focus it should have, the market position it should try to occupy, the business activities to be pursued, and the capabilities it plans to develop. Forming a strategic vision should delineate what kind of enterprise the company is trying to become and infuse the organization with a sense of purposeful action. Think big! To write a vision statement, answer this question: What will our business look like in 5 to ten years from now?
Step Four – Take an inventory.
The SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis helps you look critically at your organization. It is a tool to help produce a good fit between a company’s strengths and its opportunities.
Assess your strengths and weaknesses by answering these questions: What do we do best? What do we not do best? What are our company resources – assets, intellectual property, and people? What are our company capabilities (functions)?
Assess your opportunities and threats by answering these questions: What is happening externally that will affect our company? What are the strengths and weaknesses of each competitor? What are the driving forces behind sales trends? What are important and potentially important markets? What is happening in the world that might affect our company?
Step Five – Profile your customers.
If you want to move your company from being successful to wildly profitable, you need to meet your customers’ needs and wants better than your competitors do. Develop a customer profile by answering: What are our customers needs, motivations, and characteristics? How do we uniquely provide value to our customers? What should we improve to grow our customer base?
Step Six – Write your goals and objectives.
Goals and objectives are like stair steps to your mission and vision. Realistic goals and objectives are developed from the SWOT analysis and customer profile. Objectives set the agenda, are broad, and global in nature. Write two to five objectives that give action to your mission/vision and will take a few years to achieve. Then, develop goals to achieve each objective. Goals should be measurable, quantifiable, and support your objectives. Think about achieving them in a one-year timeframe. Effective goals must state how much of what kind of performance by when is to be accomplished and by whom. Make sure both your goals and objectives build on your strengths; shore up your weaknesses; capitalize on your opportunities; and recognize your threats.
Step Seven – Assess your resources.
Now that you have completed your goals and objectives, it is time to do a resource assessment. One of the biggest stumbling blocks to all well laid strategic plans is time and money. As with every business, budgets are never big enough to do everything you want to do. Prioritize key goals by asking: Do implementing the goals make financial sense? Do you have the human resources to achieve your plan?
Step Eight – Take action.
Tactics set specific actions/action plans that lead to implementing your goals and objectives. Basically write a to-do list for each goal. A quick way to develop your tactics is to answer this question: What roadblocks exist to achieving my goal? Use the answer to develop action items for each goal. Assign responsibilities and deadlines to ensure implementation. A great method to get buy-in from your staff is to assign a goal to each employee. Ask him/her to write the action plan and be responsible for making sure each task is accomplished.
Step Nine – Keep score.
In step six, you wrote goals that were measurable. Put these measurements and targets on a scorecard (in Excel), which acts as an instrument panel guiding your company towards achieving your vision. With the scorecard, you can actively track your progress on a monthly basis.
Step Ten – Make strategy a habit.
A leader devoted to the successful implementation of the strategy and plan is key. The plan needs to be supported with people, money, time, systems, and above all communication. Communicate the plan to everyone in your organization. Hold a monthly or quarterly strategy meeting to report on the progress toward achieving the goal. Don’t forget to take corrective actions when needed and adapt as the environment changes.
Taken From (http://entrepreneurs.about.com/od/businessplan/a/10stepstrategic_2.htm)
Step One – Be the best.
The result of a well-developed and executed strategic plan is to develop a competitive advantage. Just what is a competitive advantage? Business lingo aside, it is simply the answer to: What can your company potentially do better than any other company?
Understanding your competitive advantage is critical. It is the reason you are in business. It is what you do best that draws customers to buy your product/service instead of your competitor’s. Extremely successful companies deliberately make choices to be unique and different in activities that they are really, really good at and they focus all of their energy in these areas. You may decide to incorporate your competitive advantage into your mission and/or vision statements.
Step Two – State your purpose.
A mission statement is a statement of the company’s purpose. It is useful for putting the spotlight on what business a company is presently in and the customer needs it is presently endeavoring to serve. It also serves as a guide for day-to-day operations and as the foundation for future decision-making. To write a mission statement, answer the questions: What is our business? What are we trying to accomplish for our customers? What is our company’s reason for existing?
Step Three – Visualize the future.
A strategic vision is the image of a company’s future – the direction it is headed, the customer focus it should have, the market position it should try to occupy, the business activities to be pursued, and the capabilities it plans to develop. Forming a strategic vision should delineate what kind of enterprise the company is trying to become and infuse the organization with a sense of purposeful action. Think big! To write a vision statement, answer this question: What will our business look like in 5 to ten years from now?
Step Four – Take an inventory.
The SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis helps you look critically at your organization. It is a tool to help produce a good fit between a company’s strengths and its opportunities.
Assess your strengths and weaknesses by answering these questions: What do we do best? What do we not do best? What are our company resources – assets, intellectual property, and people? What are our company capabilities (functions)?
Assess your opportunities and threats by answering these questions: What is happening externally that will affect our company? What are the strengths and weaknesses of each competitor? What are the driving forces behind sales trends? What are important and potentially important markets? What is happening in the world that might affect our company?
Step Five – Profile your customers.
If you want to move your company from being successful to wildly profitable, you need to meet your customers’ needs and wants better than your competitors do. Develop a customer profile by answering: What are our customers needs, motivations, and characteristics? How do we uniquely provide value to our customers? What should we improve to grow our customer base?
Step Six – Write your goals and objectives.
Goals and objectives are like stair steps to your mission and vision. Realistic goals and objectives are developed from the SWOT analysis and customer profile. Objectives set the agenda, are broad, and global in nature. Write two to five objectives that give action to your mission/vision and will take a few years to achieve. Then, develop goals to achieve each objective. Goals should be measurable, quantifiable, and support your objectives. Think about achieving them in a one-year timeframe. Effective goals must state how much of what kind of performance by when is to be accomplished and by whom. Make sure both your goals and objectives build on your strengths; shore up your weaknesses; capitalize on your opportunities; and recognize your threats.
Step Seven – Assess your resources.
Now that you have completed your goals and objectives, it is time to do a resource assessment. One of the biggest stumbling blocks to all well laid strategic plans is time and money. As with every business, budgets are never big enough to do everything you want to do. Prioritize key goals by asking: Do implementing the goals make financial sense? Do you have the human resources to achieve your plan?
Step Eight – Take action.
Tactics set specific actions/action plans that lead to implementing your goals and objectives. Basically write a to-do list for each goal. A quick way to develop your tactics is to answer this question: What roadblocks exist to achieving my goal? Use the answer to develop action items for each goal. Assign responsibilities and deadlines to ensure implementation. A great method to get buy-in from your staff is to assign a goal to each employee. Ask him/her to write the action plan and be responsible for making sure each task is accomplished.
Step Nine – Keep score.
In step six, you wrote goals that were measurable. Put these measurements and targets on a scorecard (in Excel), which acts as an instrument panel guiding your company towards achieving your vision. With the scorecard, you can actively track your progress on a monthly basis.
Step Ten – Make strategy a habit.
A leader devoted to the successful implementation of the strategy and plan is key. The plan needs to be supported with people, money, time, systems, and above all communication. Communicate the plan to everyone in your organization. Hold a monthly or quarterly strategy meeting to report on the progress toward achieving the goal. Don’t forget to take corrective actions when needed and adapt as the environment changes.
Taken From (http://entrepreneurs.about.com/od/businessplan/a/10stepstrategic_2.htm)
Friday, 24 June 2011
How to Identify a Real Wholesale Supplier
When choosing the right wholesale supplier, you should know how to locate wholesalers that can provide you the product you need. Finding wholesalers can be time consuming and exhausting, especially if you want to sell different products. You need to locate and deal with different suppliers since suppliers have their own kind of products to offer. So dealing with them requires different procedures and tactics, but the most important thing is you should be able to find those who can meet your standards and requirements.
There are different factors and points to consider when choosing your wholesale suppliers:
In every business deal, you should know who you are dealing with. For this reason it is important to consider a supplier that can provide you with company information. It is important to know the details and essential information about a certain company. You need this information as well when checking the legitimacy and background of the supplier. Most importantly you need this information in case of problems with the product or services, you will know how and where to contact your supplier.
Company information can also serve as your warning signs and basis if you are dealing with a legitimate supplier. You should be cautious with the information they provide. Stay away from suppliers who only provide e-mail address especially those who uses free email domain. Always ask for physical address and phone number because these can be verified easily.
If you are considering selling branded items, it is important to check that your wholesaler is actually selling the original brands and not the fake items. Remember trading fake or replica goods is illegal, so better stay out of trouble by not dealing with suppliers that are selling fake goods. There are factors to easily identify if your supplier is selling fake or not like price of the goods, location of where the items will come from. If you really want to sell branded items better contact the manufacturer directly or ask for their authorized distributors.
If you are searching for wholesaler online, you need to be extra careful since there are lots of scammers online that are waiting for people whom they can victimize. So it is very important to check first if the company is real by doing your research. If you can, visit the company personally to know more about them. You can also ask for references so you could do a background check yourself.
Taken From(http://ezinearticles.com/?How-to-Identify-a-Real-Wholesale-Supplier&id=6376659)
There are different factors and points to consider when choosing your wholesale suppliers:
In every business deal, you should know who you are dealing with. For this reason it is important to consider a supplier that can provide you with company information. It is important to know the details and essential information about a certain company. You need this information as well when checking the legitimacy and background of the supplier. Most importantly you need this information in case of problems with the product or services, you will know how and where to contact your supplier.
Company information can also serve as your warning signs and basis if you are dealing with a legitimate supplier. You should be cautious with the information they provide. Stay away from suppliers who only provide e-mail address especially those who uses free email domain. Always ask for physical address and phone number because these can be verified easily.
If you are considering selling branded items, it is important to check that your wholesaler is actually selling the original brands and not the fake items. Remember trading fake or replica goods is illegal, so better stay out of trouble by not dealing with suppliers that are selling fake goods. There are factors to easily identify if your supplier is selling fake or not like price of the goods, location of where the items will come from. If you really want to sell branded items better contact the manufacturer directly or ask for their authorized distributors.
If you are searching for wholesaler online, you need to be extra careful since there are lots of scammers online that are waiting for people whom they can victimize. So it is very important to check first if the company is real by doing your research. If you can, visit the company personally to know more about them. You can also ask for references so you could do a background check yourself.
Taken From(http://ezinearticles.com/?How-to-Identify-a-Real-Wholesale-Supplier&id=6376659)
Beat The Crowd With Winning Cover Letters
Far too many people underestimate the importance of resume cover letters. In a sense, a well written cover letter works like an agent on your behalf. It tosses a sales pitch for you to the employer, explaining why you should be at the top of the list for interview calls. Taking the time to write a cover letter tells the employer you are willing to go above and beyond; not just simply slap a resume in an envelope and mail it.
Not All Resume Cover Letters Are Created Equal
No two resume cover letters should ever be the same; each one should be uniquely tailored to the job for which you are applying. A generic cover letter is insulting to an employer and will quickly find its way into the trashcan. When writing cover letters keep the following tips in mind:
Address resume cover letters to an actual entity, not just a generic "To Whom it May Concern" or "Personnel Director." If you are not sure who to address, find out and then make sure you spell their name correctly. Do not just assume.
State who referred you or how you found out about the job opening. "Linda McCain mentioned that you might be hiring a new computer programmer soon." or "I learned about your opening for a Sales Associate from your posting in the San Francisco Sun and would like to discuss a few ways I can contribute to your team."
Resume cover letters should discuss how you can help the employer, not about why you need the job. The employer has posted a job opening because they need that position filled and they need the best candidate to fill it. Convince them why you are that person.
Make Yourself Stand Out from the Crowd
Demonstrate you know something about who the employer is and what they do. If you don't know anything about the company, find out what products or services the company offers, their competitors; any recent or upcoming changes. Employers will be impressed with your knowledge, especially if their company services a specialty niche that isn't well known.
Do not discuss salary requirements in resume cover letters. If the job posting requests that you respond with salary information, simply state in your cover letter "I would be pleased to discuss my salary history in an interview." Then quickly move on to what you can offer them in terms of your talent and skills.
Give an exact date when you will follow-up to discuss an interview. Don't depend on the employer to follow-up with you.
Keep it Short and to the Point
Do not say 'enclosed please find my resume.' This wastes valuable space in resume cover letters you can devote to highlighting why you are perfect for the job.
State what you need to, but don't draw it out. Keep resume cover letters to one page, preferably about four short paragraphs.
Neatness Counts
Proofread your resume cover letters and then ask someone else to proofread as well. Don't eliminate yourself from the candidates called for an interview because of a simple typo or mis-spelled word. Don't rely on your computer's spell check. It does not always catch everything.
Make sure your letter is neat. If at all possible, spend a little extra and print it on nice, professional paper. Make sure there are no wrinkles, folds or smudges.
Following a few simple rules can help your resume cover letters stand out from all the rest and get you in the door for an interview and on your way to that great new job!
Taken From (http://www.businessfinancearticles.com/article3044.html)
Not All Resume Cover Letters Are Created Equal
No two resume cover letters should ever be the same; each one should be uniquely tailored to the job for which you are applying. A generic cover letter is insulting to an employer and will quickly find its way into the trashcan. When writing cover letters keep the following tips in mind:
Address resume cover letters to an actual entity, not just a generic "To Whom it May Concern" or "Personnel Director." If you are not sure who to address, find out and then make sure you spell their name correctly. Do not just assume.
State who referred you or how you found out about the job opening. "Linda McCain mentioned that you might be hiring a new computer programmer soon." or "I learned about your opening for a Sales Associate from your posting in the San Francisco Sun and would like to discuss a few ways I can contribute to your team."
Resume cover letters should discuss how you can help the employer, not about why you need the job. The employer has posted a job opening because they need that position filled and they need the best candidate to fill it. Convince them why you are that person.
Make Yourself Stand Out from the Crowd
Demonstrate you know something about who the employer is and what they do. If you don't know anything about the company, find out what products or services the company offers, their competitors; any recent or upcoming changes. Employers will be impressed with your knowledge, especially if their company services a specialty niche that isn't well known.
Do not discuss salary requirements in resume cover letters. If the job posting requests that you respond with salary information, simply state in your cover letter "I would be pleased to discuss my salary history in an interview." Then quickly move on to what you can offer them in terms of your talent and skills.
Give an exact date when you will follow-up to discuss an interview. Don't depend on the employer to follow-up with you.
Keep it Short and to the Point
Do not say 'enclosed please find my resume.' This wastes valuable space in resume cover letters you can devote to highlighting why you are perfect for the job.
State what you need to, but don't draw it out. Keep resume cover letters to one page, preferably about four short paragraphs.
Neatness Counts
Proofread your resume cover letters and then ask someone else to proofread as well. Don't eliminate yourself from the candidates called for an interview because of a simple typo or mis-spelled word. Don't rely on your computer's spell check. It does not always catch everything.
Make sure your letter is neat. If at all possible, spend a little extra and print it on nice, professional paper. Make sure there are no wrinkles, folds or smudges.
Following a few simple rules can help your resume cover letters stand out from all the rest and get you in the door for an interview and on your way to that great new job!
Taken From (http://www.businessfinancearticles.com/article3044.html)
Build A Team For UR Business
Creating the right team is imperative to your success. A team is comprised of people who can bring necessary skill sets to the venture. A team is different from partners. Partners are financially and legally tied to the venture while team members are brought in to create and continue the process. Team members can be employees or sub-contractors.
These are people you can control - you get to pick them. You can use their services for as long as you like. If they don't work out as planned, you can find a different team member or you can find a place on the team where this person can be more effective.
Creating the right environment for the team is equally important. People will give their best when they feel that their services are being valued and that they are entrusted with producing a part of the success of the venture. Team members must have the same values as that of the venture and they must follow the same code of conduct consistent with your desired outcome. They must truly want the venture to be a success and feel that they are a part of that success. They must work well with the other team members.
Differences are encouraged only if they are presented in a positive fashion, recognizing the efforts of the others. Each team member must give more than they are asked for in their areas of expertise. This does not mean extra hours; it means working with heart and soul, working with the creative minds flowing, working with a positive mental attitude, and working together with the others so that all are winners.
What ideas do you have that will create a positive, successful team? How can you create this team and have each person feel that they are as important a part of the success of the venture as you are? Study successful entities to find out how they treat their team members. Find out what motivates team members in successful entities to keep them successful - is it money, power, trust, fear, etc.? Thinking these things out before you create the team will help you in putting together the right team for your venture.
You should write out all the positions of your team and keep updating it as you grow as when you grow you will need to change out some positions on your team. This is a big mistake that people make as they grow. They keep the same team members that were effective when they were small and they do not re-evaluate the need for replacing members who have not grown to levels where they are now needed. Therefore the overall team growth is limited by the lack of ability of one or more members. Just like upgrading your peer group, always be open to and active in upgrading your team members.
You must strive to place the right people on your team. This goes for all positions you pay for, including lawyers, accountants, advisers, sub contractors etc. Be clear on what is a must upfront and make the positions open as specific as possible.
If you are just starting out then make your team as simple and complete as possible. Just be sure that your team members are able to excel and have knowledge in the industry and direction you are going in. The last thing you want to do is to have to micromanage your team members. If you find you are doing so you have made a mistake and replace them right away.
Your team members must be proactive to your needs and outcome. If not replace them or place them in a position where they can be more effective. Please always keep in mind that in most cases you are paying for their services in one manner or another. Never pay a team member 100% upfront for their services as this always gives them something to aspire to. Placing the right team members in the right place will make your endeavor soar.
Taken From (http://www.businessarticles.org/build-a-team.htm)
These are people you can control - you get to pick them. You can use their services for as long as you like. If they don't work out as planned, you can find a different team member or you can find a place on the team where this person can be more effective.
Creating the right environment for the team is equally important. People will give their best when they feel that their services are being valued and that they are entrusted with producing a part of the success of the venture. Team members must have the same values as that of the venture and they must follow the same code of conduct consistent with your desired outcome. They must truly want the venture to be a success and feel that they are a part of that success. They must work well with the other team members.
Differences are encouraged only if they are presented in a positive fashion, recognizing the efforts of the others. Each team member must give more than they are asked for in their areas of expertise. This does not mean extra hours; it means working with heart and soul, working with the creative minds flowing, working with a positive mental attitude, and working together with the others so that all are winners.
What ideas do you have that will create a positive, successful team? How can you create this team and have each person feel that they are as important a part of the success of the venture as you are? Study successful entities to find out how they treat their team members. Find out what motivates team members in successful entities to keep them successful - is it money, power, trust, fear, etc.? Thinking these things out before you create the team will help you in putting together the right team for your venture.
You should write out all the positions of your team and keep updating it as you grow as when you grow you will need to change out some positions on your team. This is a big mistake that people make as they grow. They keep the same team members that were effective when they were small and they do not re-evaluate the need for replacing members who have not grown to levels where they are now needed. Therefore the overall team growth is limited by the lack of ability of one or more members. Just like upgrading your peer group, always be open to and active in upgrading your team members.
You must strive to place the right people on your team. This goes for all positions you pay for, including lawyers, accountants, advisers, sub contractors etc. Be clear on what is a must upfront and make the positions open as specific as possible.
If you are just starting out then make your team as simple and complete as possible. Just be sure that your team members are able to excel and have knowledge in the industry and direction you are going in. The last thing you want to do is to have to micromanage your team members. If you find you are doing so you have made a mistake and replace them right away.
Your team members must be proactive to your needs and outcome. If not replace them or place them in a position where they can be more effective. Please always keep in mind that in most cases you are paying for their services in one manner or another. Never pay a team member 100% upfront for their services as this always gives them something to aspire to. Placing the right team members in the right place will make your endeavor soar.
Taken From (http://www.businessarticles.org/build-a-team.htm)
Wednesday, 22 June 2011
Common Business Plan Mistakes
What are the most common mistakes when writing a business plan? Here is my list of the ones to make sure you avoid. While including the necessary items in a business plan is important, you also want to make sure you don’t commit any of the following common business plan mistakes:
Putting it off.
Too many businesses make business plans only when they have no choice in the matter. Unless the bank or the investors want a plan, there is no plan.
Don’t wait to write your plan until you think you’ll have enough time. “I can’t plan. I’m too busy getting things done,” business people say. The busier you are, the more you need to plan. If you are always putting out fires, you should build firebreaks or a sprinkler system. You can lose the whole forest for paying too much attention to the individual burning trees.
Cash flow casualness.
Most people think in terms of profits instead of cash. When you imagine a new business, you think of what it would cost to make the product, what you could sell it for, and what the profits per unit might be. We are trained to think of business as sales minus costs and expenses, which equal profits. Unfortunately, we don’t spend the profits in a business. We spend cash. So understanding cash flow is critical. If you have only one table in your business plan, make it the cash flow table.
Idea inflation.
Don’t overestimate the importance of the idea. You don’t need a great idea to start a business; you need time, money, perseverance, and common sense. Few successful businesses are based entirely on new ideas. A new idea is harder to sell than an existing one, because people don’t understand a new idea and they are often unsure if it will work.
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Plans don’t sell new business ideas to investors. People do. Investors invest in people, not ideas. The plan, though necessary, is only a way to present information.
Fear and dread.
Doing a business plan isn’t as hard as you might think. You don’t have to write a doctoral thesis or a novel. There are good books to help, many advisors among the Small Business Development Centers (SBDCs), business schools, and there is software available to help you (such as Business Plan Pro, and others).
Spongy, vague goals.
Leave out the vague and the meaningless babble of business phrases (such as “being the best”) because they are simply hype. Remember that the objective of a plan is its results, and for results, you need tracking and follow up. You need specific dates, management responsibilities, budgets, and milestones. Then you can follow up. No matter how well thought out or brilliantly presented, it means nothing unless it produces results.
One size fits all.
Tailor your plan to its real business purpose. Business plans can be different things: they are often just sales documents to sell an idea for a new business. They can also be detailed action plans, financial plans, marketing plans, and even personnel plans. They can be used to start a business, or just run a business better.
Diluted priorities.
Remember, strategy is focus. A priority list with 3-4 items is focus. A priority list with 20 items is certainly not strategic, and rarely if ever effective. The more items on the list, the less the importance of each.
Hockey-stick shaped growth projections.
Sales grow slowly at first, but then shoot up boldly with huge growth rates, as soon as ‘something’ happens. Have projections that are conservative so you can defend them. When in doubt, be less optimistic.
Taken From (http://articles.bplans.com/writing-a-business-plan/common-business-plan-mistakes/31)
Putting it off.
Too many businesses make business plans only when they have no choice in the matter. Unless the bank or the investors want a plan, there is no plan.
Don’t wait to write your plan until you think you’ll have enough time. “I can’t plan. I’m too busy getting things done,” business people say. The busier you are, the more you need to plan. If you are always putting out fires, you should build firebreaks or a sprinkler system. You can lose the whole forest for paying too much attention to the individual burning trees.
Cash flow casualness.
Most people think in terms of profits instead of cash. When you imagine a new business, you think of what it would cost to make the product, what you could sell it for, and what the profits per unit might be. We are trained to think of business as sales minus costs and expenses, which equal profits. Unfortunately, we don’t spend the profits in a business. We spend cash. So understanding cash flow is critical. If you have only one table in your business plan, make it the cash flow table.
Idea inflation.
Don’t overestimate the importance of the idea. You don’t need a great idea to start a business; you need time, money, perseverance, and common sense. Few successful businesses are based entirely on new ideas. A new idea is harder to sell than an existing one, because people don’t understand a new idea and they are often unsure if it will work.
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Plans don’t sell new business ideas to investors. People do. Investors invest in people, not ideas. The plan, though necessary, is only a way to present information.
Fear and dread.
Doing a business plan isn’t as hard as you might think. You don’t have to write a doctoral thesis or a novel. There are good books to help, many advisors among the Small Business Development Centers (SBDCs), business schools, and there is software available to help you (such as Business Plan Pro, and others).
Spongy, vague goals.
Leave out the vague and the meaningless babble of business phrases (such as “being the best”) because they are simply hype. Remember that the objective of a plan is its results, and for results, you need tracking and follow up. You need specific dates, management responsibilities, budgets, and milestones. Then you can follow up. No matter how well thought out or brilliantly presented, it means nothing unless it produces results.
One size fits all.
Tailor your plan to its real business purpose. Business plans can be different things: they are often just sales documents to sell an idea for a new business. They can also be detailed action plans, financial plans, marketing plans, and even personnel plans. They can be used to start a business, or just run a business better.
Diluted priorities.
Remember, strategy is focus. A priority list with 3-4 items is focus. A priority list with 20 items is certainly not strategic, and rarely if ever effective. The more items on the list, the less the importance of each.
Hockey-stick shaped growth projections.
Sales grow slowly at first, but then shoot up boldly with huge growth rates, as soon as ‘something’ happens. Have projections that are conservative so you can defend them. When in doubt, be less optimistic.
Taken From (http://articles.bplans.com/writing-a-business-plan/common-business-plan-mistakes/31)
Tuesday, 21 June 2011
Administrative functions in a business environment
Administrative functions in a business environment are handled by services managers. They also have the responsibility to coordinate and direct the support services so that organizations can operate efficiently.
These administrative functions are performed by different types of managers according to their level of responsibility and authority. In a business environment, administrators are assigned common set of functions to meet the organization's goals which are:
Planning
The most important administrative function in a business environment is planning. Planning is defined by the decision made at the initial level at which the administrator has to decide what to do to fulfill a goal. What are the different ways and means to do it and who are the right person to perform that job. In planning, the first step is to arrange the functions, people or components involved into a proper working order. The next thing is to find out the specific steps the people involved must take to complete the job. The planning part should also include the details of the equipment, time and manpower needed for a particular job.
The planning administrator should identify the entire problem that can arise due to circumstances so that solutions can be provided immediately if the problem comes up. The resources and manpower, skill availability to complete a particular task is also checked in this part. The planning phase should clearly specify the order in which sub tasks have to be performed to complete a job successfully. By deciding the order in which the plans have to be carried out, a complete plan of action has to be decided before hand. Overall, a plan of action specifies the tasks in an order for a particular period of time. If the planning is done by taking certain steps in the right direction then it is possible to complete the task without interruptions so that it is possible to complete the given task most efficiently and effectively:
At first step, all the actions have to be identified along with the resources required so that all the problems are identified before starting the work.
A planned time line sheet to complete the tasks in an order.
Define the priorities for various tasks so that it helps in mapping the path from where the organization is to where it wants to be.
Depending upon the nature of the problem to be handled, the planning can be both short-range and long-range.
Organization
Organizing means the administrator has to identify various jobs and the right person which can perform those jobs efficiently. The administrator has to identify which can take the responsibility and can manage a team of people to complete a job. Such responsible persons are further grouped together to create departments or divisions. Such different departments are combined together or inter related to each other to create a bigger division. Such departments interact with each other in an organized manner to complete various tasks. The organized divisions should coordinate with each other so that different tasks can be performed easily.
In organization, the administrator has to define the responsibilities and authority clearly so that there is no crossing of lines while working in coordination. The concept of delegation of authority is very important in an organized department. It helps the people to perform better because it includes assigning responsibility to a person to complete a task. The delegated person has sufficient authority to manage the resources to do a particular task and also has the right to decide how that task will be completed with time.
Staffing
This administrative function is very important in a business environment because it deals with filling up of job positions in an organization. The job positions should be filled by taking care of the requirement, time and the type of man power required. The administrator should check the staffing needs from time to time so that number of employees are always sufficient and up to the mark. The staff requirements are identified by the staffing administrators and then suitable job descriptions are designed. The recruitment process is also organized at different levels by these administrators to screen the candidates so that suitable candidates are recruited.
Directing
It is very important for organization because it deals with handling people in such a way so that they help in every possible way to achieve the goals of the organization. To make the direction efficient, it is important that the allocation of resources is done very carefully. It also helps the system to perform better by providing a complete and effective support and backup system at the backend. Such administrators look after the preparation, analysis, negotiation, and review of jobs related to the purchase or sale of equipment, materials, products and services. The administrators fulfilling the direction role should have strong communication skills and has the conviction to judge and convince people in a positive way. They have to keep a perfect balance between the requirements and financial status of the organization.
Controlling
Controlling is the function which deals with the continuous evaluation of the organization goals. If the goals are not achieved then controlling administrator has to detect potential or actual difference in the achieved and original plan of the organization. This helps in improving the system for betterment so that deviation in the goal achieved is minimum. By controlling information management it is possible to measure the performance of the system and to apply corrective actions to increase the efficiency. There are many types of controlling functions which are associated with evaluations in organizations. Some of the examples are: evaluation of marketing efforts, evaluation of employee performance and program evaluations.
Budgeting
After the jobs are planned and resources are organized, the next important administrative function in business environment is to manage the funds efficiently. Budgeting administrators are responsible for analyzing the requirements of funds for the resources and man power to achieve goals and tasks. All the financial statements are monitored and checked from time to time to avoid any financial problems. All types of financial statements like balance sheet, income statement and cash flow statements are prepared, checked and managed by the administrator.
Taken From (http://www.aot.edu.au/business-articles/159-business-administration-articles.html)
These administrative functions are performed by different types of managers according to their level of responsibility and authority. In a business environment, administrators are assigned common set of functions to meet the organization's goals which are:
Planning
The most important administrative function in a business environment is planning. Planning is defined by the decision made at the initial level at which the administrator has to decide what to do to fulfill a goal. What are the different ways and means to do it and who are the right person to perform that job. In planning, the first step is to arrange the functions, people or components involved into a proper working order. The next thing is to find out the specific steps the people involved must take to complete the job. The planning part should also include the details of the equipment, time and manpower needed for a particular job.
The planning administrator should identify the entire problem that can arise due to circumstances so that solutions can be provided immediately if the problem comes up. The resources and manpower, skill availability to complete a particular task is also checked in this part. The planning phase should clearly specify the order in which sub tasks have to be performed to complete a job successfully. By deciding the order in which the plans have to be carried out, a complete plan of action has to be decided before hand. Overall, a plan of action specifies the tasks in an order for a particular period of time. If the planning is done by taking certain steps in the right direction then it is possible to complete the task without interruptions so that it is possible to complete the given task most efficiently and effectively:
At first step, all the actions have to be identified along with the resources required so that all the problems are identified before starting the work.
A planned time line sheet to complete the tasks in an order.
Define the priorities for various tasks so that it helps in mapping the path from where the organization is to where it wants to be.
Depending upon the nature of the problem to be handled, the planning can be both short-range and long-range.
Organization
Organizing means the administrator has to identify various jobs and the right person which can perform those jobs efficiently. The administrator has to identify which can take the responsibility and can manage a team of people to complete a job. Such responsible persons are further grouped together to create departments or divisions. Such different departments are combined together or inter related to each other to create a bigger division. Such departments interact with each other in an organized manner to complete various tasks. The organized divisions should coordinate with each other so that different tasks can be performed easily.
In organization, the administrator has to define the responsibilities and authority clearly so that there is no crossing of lines while working in coordination. The concept of delegation of authority is very important in an organized department. It helps the people to perform better because it includes assigning responsibility to a person to complete a task. The delegated person has sufficient authority to manage the resources to do a particular task and also has the right to decide how that task will be completed with time.
Staffing
This administrative function is very important in a business environment because it deals with filling up of job positions in an organization. The job positions should be filled by taking care of the requirement, time and the type of man power required. The administrator should check the staffing needs from time to time so that number of employees are always sufficient and up to the mark. The staff requirements are identified by the staffing administrators and then suitable job descriptions are designed. The recruitment process is also organized at different levels by these administrators to screen the candidates so that suitable candidates are recruited.
Directing
It is very important for organization because it deals with handling people in such a way so that they help in every possible way to achieve the goals of the organization. To make the direction efficient, it is important that the allocation of resources is done very carefully. It also helps the system to perform better by providing a complete and effective support and backup system at the backend. Such administrators look after the preparation, analysis, negotiation, and review of jobs related to the purchase or sale of equipment, materials, products and services. The administrators fulfilling the direction role should have strong communication skills and has the conviction to judge and convince people in a positive way. They have to keep a perfect balance between the requirements and financial status of the organization.
Controlling
Controlling is the function which deals with the continuous evaluation of the organization goals. If the goals are not achieved then controlling administrator has to detect potential or actual difference in the achieved and original plan of the organization. This helps in improving the system for betterment so that deviation in the goal achieved is minimum. By controlling information management it is possible to measure the performance of the system and to apply corrective actions to increase the efficiency. There are many types of controlling functions which are associated with evaluations in organizations. Some of the examples are: evaluation of marketing efforts, evaluation of employee performance and program evaluations.
Budgeting
After the jobs are planned and resources are organized, the next important administrative function in business environment is to manage the funds efficiently. Budgeting administrators are responsible for analyzing the requirements of funds for the resources and man power to achieve goals and tasks. All the financial statements are monitored and checked from time to time to avoid any financial problems. All types of financial statements like balance sheet, income statement and cash flow statements are prepared, checked and managed by the administrator.
Taken From (http://www.aot.edu.au/business-articles/159-business-administration-articles.html)
8 Tips for Naming a Business
Your company name is a critical part of your overall corporate identity. It should reflect something important about who you are, or what you do. The name of your business will appear on your letterhead, your promotional materials, and website. Choosing the right name is an important factor in communicating the right message about you and your business.
1. Think About What You Want Your Business Name to Convey
Some businesses may do better to project a small, hometown or "mom and pop&" feel, but others will do better with a larger, more corporate image. Service-oriented businesses often benefit by choosing a name that includes or describes what the business does. Example: "Bright Electricians," "Friendly Pet Sitters," and "Caribbean Caterers" are names that tell the consumer something about the business just from the name of the business. But "Bright Ideas," "Pet Lovers Lane," and "Caribbean Feasts" are vaguer names that offer little information about what the business does.
2. Think About Advertising Potential
When consumers are looking for a product or service (particularly online) your name may be what draws them into your website instead of another one. When choosing a business name think about who you are marketing to not just what you are selling. Example: If you were looking for someone to restore a family heirloom would you be more likely to choose "Freida Heirloom Restorations" or "Value Heirloom Repairs?" And, if you wanted to donate clothing locally would you choose "The Children Clothing Charity of Northern Virginia" (a local name) or "Kids Who Need Clothes?"
3. Choose a Name that Consumers Can Remember
The more obscure your business name is the harder it will be to remember. Since word-of-mouth advertising is still how many businesses get new customers using a name that is difficult to remember, pronounce, or spell is not good for marketing purposes. This is particularly true for Internet-based businesses and companies that rely on a website for sales.
4. Being Too Creative Can Hurt Your Business
While it may seem creative to misspell words it does not always work to your advantage. "Taste-tea Beverage Company" looks clever on paper but it still sounds like "tasty" when said out loud. Unless you have a business with a store front where people can see your creative spelling like this may confuse potential customers. It will also make it harder for people to find you in the Internet.
5. Think About Acronyms
It is advisable to look at the acronym of your business' name (an acronym is made up of the first letter of each word in a phrase). Even if you do not use an acronym you may find consumers will still refer to your business by the initials. A poorly chosen business name (i.e., Awesome Sewing Services) can result in unfavorable acronym recognition but a clever name can lead to an acronym consumers remember easily (i.e., most people refer to American Telephone and Telegraph, Inc. simply as AT&T).
6. Do Not Trade On Existing Business Names
Using parts of other well-known business names and trying to appear that you are somehow connected to another company will not help you gain the trust of consumers. In fact, it may even get you into legal trouble.
7. Forget Names Using AAA To Get More Attention (It Does Not Work)
Before the Internet consumers turned to paper telephone directories to find information. Many business owners began their company's name with the letters "AAA" to be one of the first listings in a telephone directory category. Today's consumers are more likely to use the Internet to find a product or service and using three A's at the beginning of your name will not help. Search queries are not returned alphabetically but by relevance and how well your website, blog, or listing has been indexed. Tip: To get your business to show up in a search engine query you need to use Search Engine Optimization (SEO) techniques when building your website or blog.
8. Think of Your Business' Long-Term Growth
If you plan to expand your business in the future choose a name that will not limit your growth. For example, someday you plan to open a full-scale landscaping business but you start small by offering basic lawn care services to make contacts. The name “Linda’s Lawn Mowing Service” only reflects start-up services and won’t make sense when the business expands.
TAken From (http://bx.businessweek.com/small-business-administration/view?url=http%3A%2F%2Fwomeninbusiness.about.com%2Fod%2Ffinancialliabilityissues%2Ftp%2F10-tips-dont-get-sued.htm)
1. Think About What You Want Your Business Name to Convey
Some businesses may do better to project a small, hometown or "mom and pop&" feel, but others will do better with a larger, more corporate image. Service-oriented businesses often benefit by choosing a name that includes or describes what the business does. Example: "Bright Electricians," "Friendly Pet Sitters," and "Caribbean Caterers" are names that tell the consumer something about the business just from the name of the business. But "Bright Ideas," "Pet Lovers Lane," and "Caribbean Feasts" are vaguer names that offer little information about what the business does.
2. Think About Advertising Potential
When consumers are looking for a product or service (particularly online) your name may be what draws them into your website instead of another one. When choosing a business name think about who you are marketing to not just what you are selling. Example: If you were looking for someone to restore a family heirloom would you be more likely to choose "Freida Heirloom Restorations" or "Value Heirloom Repairs?" And, if you wanted to donate clothing locally would you choose "The Children Clothing Charity of Northern Virginia" (a local name) or "Kids Who Need Clothes?"
3. Choose a Name that Consumers Can Remember
The more obscure your business name is the harder it will be to remember. Since word-of-mouth advertising is still how many businesses get new customers using a name that is difficult to remember, pronounce, or spell is not good for marketing purposes. This is particularly true for Internet-based businesses and companies that rely on a website for sales.
4. Being Too Creative Can Hurt Your Business
While it may seem creative to misspell words it does not always work to your advantage. "Taste-tea Beverage Company" looks clever on paper but it still sounds like "tasty" when said out loud. Unless you have a business with a store front where people can see your creative spelling like this may confuse potential customers. It will also make it harder for people to find you in the Internet.
5. Think About Acronyms
It is advisable to look at the acronym of your business' name (an acronym is made up of the first letter of each word in a phrase). Even if you do not use an acronym you may find consumers will still refer to your business by the initials. A poorly chosen business name (i.e., Awesome Sewing Services) can result in unfavorable acronym recognition but a clever name can lead to an acronym consumers remember easily (i.e., most people refer to American Telephone and Telegraph, Inc. simply as AT&T).
6. Do Not Trade On Existing Business Names
Using parts of other well-known business names and trying to appear that you are somehow connected to another company will not help you gain the trust of consumers. In fact, it may even get you into legal trouble.
7. Forget Names Using AAA To Get More Attention (It Does Not Work)
Before the Internet consumers turned to paper telephone directories to find information. Many business owners began their company's name with the letters "AAA" to be one of the first listings in a telephone directory category. Today's consumers are more likely to use the Internet to find a product or service and using three A's at the beginning of your name will not help. Search queries are not returned alphabetically but by relevance and how well your website, blog, or listing has been indexed. Tip: To get your business to show up in a search engine query you need to use Search Engine Optimization (SEO) techniques when building your website or blog.
8. Think of Your Business' Long-Term Growth
If you plan to expand your business in the future choose a name that will not limit your growth. For example, someday you plan to open a full-scale landscaping business but you start small by offering basic lawn care services to make contacts. The name “Linda’s Lawn Mowing Service” only reflects start-up services and won’t make sense when the business expands.
TAken From (http://bx.businessweek.com/small-business-administration/view?url=http%3A%2F%2Fwomeninbusiness.about.com%2Fod%2Ffinancialliabilityissues%2Ftp%2F10-tips-dont-get-sued.htm)
Monday, 20 June 2011
Are you alert for fraud in your business?
For a small business, the effects of fraud can be devastating. I once met a fellow whose bookkeeper made the payroll tax deposits for his business to her own account. He didn’t just lose the cash, he had huge debts for payroll taxes plus interest and penalties! It was questionable whether he would survive this disaster.
I recently attended a class on Searching for Fraud. The instructor was a former SEC auditor. He pointed out that civil fraud, unlike criminal fraud, doesn’t require intent. Reckless behavior resulting in a financial loss to others can be a civil fraud.
Public companies are now in the process of complying with new rules under the Sarbannes-Oxley Act to document and implement internal controls to protect corporate assets from fraud. The independent auditors have been directed by the American Institute of Certified Public Accountants in Statement on Auditing Standards 99 to not just rely on audit checklists but to actively discuss where fraud might occur for a client and how they might find it. Thinking is required!
What about small, private businesses? Most small businesses don’t have their financial statements audited. Many don’t even have their financial statements prepared by a CPA firm. They generate their records and financial reports using computerized accounting software. Computerized accounting software enables a business to do its record keeping with fewer people, eliminating “checks and balances” that once existed with large accounting staffs. In other words, most small businesses are highly vulnerable to fraud, because no one is looking!
Here are some suggestions to help protect your business from fraud.
A very basic control for any business is for the unopened bank statement to be delivered to a person outside of accounting (often the CEO), who can inspect the cancelled checks for irregularities. Do you know these vendors? Do the amounts paid seem appropriate? Are all cash receipts being promptly deposited? The bank account(s) should be reconciled monthly.
Interim financial reports should be generated no later than the 15th of the following month. The CEO should be analyzing the (timely-prepared) corporate financial statements. Does the cost of sales seem appropriate for the level of sales? Does the inventory balance look in line for what is on hand?
Never sign blank checks for bills to be paid when you’re away from the office.
Be alert when an employee has an unexplained improvement in lifestyle that doesn’t fit with his or her family income level.
Someone other than the accounting office should be opening the mail. Tax notices should go to the CEO.
Consider having a consultant or auditor review and test your internal controls.
The survival of your business and your reputation with investors and creditors depends on your business being run as a "tight ship."
Taken From (http://www.profitadvisors.com/alert.shtml)
I recently attended a class on Searching for Fraud. The instructor was a former SEC auditor. He pointed out that civil fraud, unlike criminal fraud, doesn’t require intent. Reckless behavior resulting in a financial loss to others can be a civil fraud.
Public companies are now in the process of complying with new rules under the Sarbannes-Oxley Act to document and implement internal controls to protect corporate assets from fraud. The independent auditors have been directed by the American Institute of Certified Public Accountants in Statement on Auditing Standards 99 to not just rely on audit checklists but to actively discuss where fraud might occur for a client and how they might find it. Thinking is required!
What about small, private businesses? Most small businesses don’t have their financial statements audited. Many don’t even have their financial statements prepared by a CPA firm. They generate their records and financial reports using computerized accounting software. Computerized accounting software enables a business to do its record keeping with fewer people, eliminating “checks and balances” that once existed with large accounting staffs. In other words, most small businesses are highly vulnerable to fraud, because no one is looking!
Here are some suggestions to help protect your business from fraud.
A very basic control for any business is for the unopened bank statement to be delivered to a person outside of accounting (often the CEO), who can inspect the cancelled checks for irregularities. Do you know these vendors? Do the amounts paid seem appropriate? Are all cash receipts being promptly deposited? The bank account(s) should be reconciled monthly.
Interim financial reports should be generated no later than the 15th of the following month. The CEO should be analyzing the (timely-prepared) corporate financial statements. Does the cost of sales seem appropriate for the level of sales? Does the inventory balance look in line for what is on hand?
Never sign blank checks for bills to be paid when you’re away from the office.
Be alert when an employee has an unexplained improvement in lifestyle that doesn’t fit with his or her family income level.
Someone other than the accounting office should be opening the mail. Tax notices should go to the CEO.
Consider having a consultant or auditor review and test your internal controls.
The survival of your business and your reputation with investors and creditors depends on your business being run as a "tight ship."
Taken From (http://www.profitadvisors.com/alert.shtml)
How to Decide on the Role of Your Homebased Office
When deciding on a home office, you might want to consider exactly what you will use it for. You will need to determine in which section of your house you will establish your office and what items you will place in the room. Will your family use your office? You and your family may all have digital cameras that require using your computer. Some of your family may want to spend time playing computer games on your computer -- while others may want to watch.
Perhaps you have an absorbing hobby that requires you to use a computer. If you have children, they will be probably need to use your computer in the evenings to do their homework. Your family-friendly office will need enough space for your family. You should have enough room for two to sit at the computer, because kids like to share things like playing games.
If that's the case, then you need to establish a central location in the house for your office so the whole family has access to it. Establishing a section of the lounge or sitting room might be a good place, unless you have another spare room. If the children are still young, you may want to keep your home office somewhere safe from curious kids, so using a central room away the from main playroom is an excellent choice. Besides a computer, you'll probably need a scanner and printer, some shelving or storage space for office supplies and equipment.
On the other hand, if you work a job, you might -- on occasion -- bring home work that requires you to spend long hours either at the computer or at a desk or table. Or maybe you will use a home office solely for running a home business; if so, then a more private place in your home would be best.
If you have a young family, they'll probably want your attention while you are trying to work. If this is the case, you really need a place where you can work undisturbed. You may also need a private office to interview prospective clients in person or on the phone.
Your office will need plenty of space if you are planning a family-friendly office. If you plan to work in the office as well as let the family in there to play or share your time, then you may want to have a second computer for them to use while you are working on yours. They will be delighted with their own "space" and will often play there contentedly and quietly while you are busy.
Depending on how well you focus on your work, you may also want to install a television to entertain the kids while you get some work done. Make sure your office has plenty of comfortable seats, a sofa or beanbags so your kids will be less likely to sit on your lap all the time. If your children are older, they will certainly need their own computer and work desk. It's better to have their computer in the general office so you can keep an eye on what they are doing while you are working.
You will need to have enough drawers or shelving for everyone to store their stuff; if each person "owns" a shelf, then their stuff won't get mixed up with yours. Open shelving can look untidy, so perhaps a cupboard with shelves in it will be good for storage. Otherwise you could use color-coded baskets or tubs on the shelves.
If you are using a spare bedroom for your family-friendly office, you could use the built-in wardrobe closet for storage space -- or you may prefer to use it to store your computer; this way you can shut the doors without having to turn off you computer if you need to leave the room with young kids still in there. Your work will be protected from curious little fingers.
If your children are older, you may simply use a corner of your lounge or rumpus room to store your office. But if your work office is solely for work and not for family, then you will certainly need to keep it in a room separate from the family room.
Apart from a computer, scanner and printer, your work office may need a filing cabinet with a lockable drawer, along with a phone line or two and a fax machine. Depending on the work you plan to do in this office, you may need a separate table and chair and a sofa chair for those times you need a break from the computer. If you plan on spending long hours at the computer, you will need a comfortable work chair, too. Don't forget the heating and cooling systems to keep you comfortable while you work...
Taken From (http://home-based-business.bestmanagementarticles.com/a-40488-how-to-decide-on-the-role-of-your-homebased-office.aspx)
Perhaps you have an absorbing hobby that requires you to use a computer. If you have children, they will be probably need to use your computer in the evenings to do their homework. Your family-friendly office will need enough space for your family. You should have enough room for two to sit at the computer, because kids like to share things like playing games.
If that's the case, then you need to establish a central location in the house for your office so the whole family has access to it. Establishing a section of the lounge or sitting room might be a good place, unless you have another spare room. If the children are still young, you may want to keep your home office somewhere safe from curious kids, so using a central room away the from main playroom is an excellent choice. Besides a computer, you'll probably need a scanner and printer, some shelving or storage space for office supplies and equipment.
On the other hand, if you work a job, you might -- on occasion -- bring home work that requires you to spend long hours either at the computer or at a desk or table. Or maybe you will use a home office solely for running a home business; if so, then a more private place in your home would be best.
If you have a young family, they'll probably want your attention while you are trying to work. If this is the case, you really need a place where you can work undisturbed. You may also need a private office to interview prospective clients in person or on the phone.
Your office will need plenty of space if you are planning a family-friendly office. If you plan to work in the office as well as let the family in there to play or share your time, then you may want to have a second computer for them to use while you are working on yours. They will be delighted with their own "space" and will often play there contentedly and quietly while you are busy.
Depending on how well you focus on your work, you may also want to install a television to entertain the kids while you get some work done. Make sure your office has plenty of comfortable seats, a sofa or beanbags so your kids will be less likely to sit on your lap all the time. If your children are older, they will certainly need their own computer and work desk. It's better to have their computer in the general office so you can keep an eye on what they are doing while you are working.
You will need to have enough drawers or shelving for everyone to store their stuff; if each person "owns" a shelf, then their stuff won't get mixed up with yours. Open shelving can look untidy, so perhaps a cupboard with shelves in it will be good for storage. Otherwise you could use color-coded baskets or tubs on the shelves.
If you are using a spare bedroom for your family-friendly office, you could use the built-in wardrobe closet for storage space -- or you may prefer to use it to store your computer; this way you can shut the doors without having to turn off you computer if you need to leave the room with young kids still in there. Your work will be protected from curious little fingers.
If your children are older, you may simply use a corner of your lounge or rumpus room to store your office. But if your work office is solely for work and not for family, then you will certainly need to keep it in a room separate from the family room.
Apart from a computer, scanner and printer, your work office may need a filing cabinet with a lockable drawer, along with a phone line or two and a fax machine. Depending on the work you plan to do in this office, you may need a separate table and chair and a sofa chair for those times you need a break from the computer. If you plan on spending long hours at the computer, you will need a comfortable work chair, too. Don't forget the heating and cooling systems to keep you comfortable while you work...
Taken From (http://home-based-business.bestmanagementarticles.com/a-40488-how-to-decide-on-the-role-of-your-homebased-office.aspx)
Creating A Business Image That Counts
Many things can contribute to creating the business image that you want and they should all be considered before you rush into having anything printed to promote your business.
Start with the very name you call your business. When deciding on the name consider just what the image is that you are trying to convey e.g. fun, serious, sensitive, caring, knowledgeable, etc. Don't have the name too long or too difficult to pronounce or spell.
As well as a short name, if possible it should also give an idea of what the business is about. This will help your potential customers to recognise and remember your service/product. You can also create an image or 'branding' by supporting the name with a logo (a graphic or drawing) to help customers visually recognise you. A logo does not have to be complicated - it can simply be your name, which is written in a particular way e.g. Coca Cola just uses the name of the product written in a specific style.
In most countries you have to legally register your business name. In Australia registration allows you to have an individual name for your business that is not identical or similar to another business name within the State where it is registered. The cost of registration is around $70 in most Australian States.
As you may not get your first choice of a name, the registration form allows for alternative suggestions. Do not make the name of your business too long. It is difficult to fit in computer fields, and you may find clients end up abbreviating it.
Registration will not necessarily protect the rights of the name from being used by other businesses especially if they create a company or add another word in front of the name.
In Australia, the registration lasts for three years and can be renewed. The Certificate of Registration you are given must be displayed in a prominent position at the place of business or outside every location where business is conducted under that name.
The registered name also must appear on all stationery such as letterheads together with the ABN (Australian Business Number).
It is important that you do not commence using the name you have chosen, or have it printed on anything, until you receive notification that it has been accepted for registration (you will receive a Certificate with your business name attached). You cannot claim any expenses in relationship to your business until you have a registered name (unless you trade only using your actual name)
Business cards are a cheap and most effective way to promote and advertise your business and are an invaluable networking tool. Each business card should contain the business name, persons name, title, address, phone, fax, email and web address. If the name of your business is not self descriptive, put a couple of words to explain what your business does, e.g. Gabogrecan Enterprises - Art Commissions, Tourist and Fashion Product.
Your card should be designed with the image you want to create, in mind. Colour, style and size of fonts, logo and the quality of card used, can all contribute to the image you wish to create.
Business cards are often stored in special containers or plastic sleeves by participants. If your card cannot fit these receptacles, they will be placed in a drawer and forgotten. If you want to have a magnet card, or some other type of interesting format - produce and present two business cards. One for storing with others and the special one to make an extra impact.
When exchanging a business card, take the trouble to read the information at that moment (it shows genuine interest and helps you remember the person). Jot some details on the back e.g. Date and function at which cards were exchanged, and any special details to assist you in remembering the contact e.g. opened the door for me!
Business cards that have a great deal of information printed on the back, are laminated, or are of a very dark colour, make this networking function impossible.
Always have business cards with you. Keep them in a wide variety of places so you do not forget them. Carry blank cards with you for those people you meet who have forgotten theirs.
Remember, business is often about perception. If you are targeting the small or micro business sector and your printed material is 'over the top' this can lose customers just as quickly as promotional material that is scatty and obviously disjointed.
This 'over the top' material is something big business does all the time and then they wonder why they cannot win over customers from smaller business. The bigger and bolder the 'splash' of your promotional material is the more is will suggest that what you have to offer is expensive - is this the image you want to portray? Remember that the smaller business does not necessarily think expensive means quality service or product.
Think out your image before having a single thing printed and this includes how you will present it e.g. will a brochure, flyer, business card be presented in a folder? Once you have decided on your image - then promote it and build up your brand recognition.
Taken from (http://www.articlecircle.com/business/communication/networking/creating-a-business-image-that-counts.html)
Start with the very name you call your business. When deciding on the name consider just what the image is that you are trying to convey e.g. fun, serious, sensitive, caring, knowledgeable, etc. Don't have the name too long or too difficult to pronounce or spell.
As well as a short name, if possible it should also give an idea of what the business is about. This will help your potential customers to recognise and remember your service/product. You can also create an image or 'branding' by supporting the name with a logo (a graphic or drawing) to help customers visually recognise you. A logo does not have to be complicated - it can simply be your name, which is written in a particular way e.g. Coca Cola just uses the name of the product written in a specific style.
In most countries you have to legally register your business name. In Australia registration allows you to have an individual name for your business that is not identical or similar to another business name within the State where it is registered. The cost of registration is around $70 in most Australian States.
As you may not get your first choice of a name, the registration form allows for alternative suggestions. Do not make the name of your business too long. It is difficult to fit in computer fields, and you may find clients end up abbreviating it.
Registration will not necessarily protect the rights of the name from being used by other businesses especially if they create a company or add another word in front of the name.
In Australia, the registration lasts for three years and can be renewed. The Certificate of Registration you are given must be displayed in a prominent position at the place of business or outside every location where business is conducted under that name.
The registered name also must appear on all stationery such as letterheads together with the ABN (Australian Business Number).
It is important that you do not commence using the name you have chosen, or have it printed on anything, until you receive notification that it has been accepted for registration (you will receive a Certificate with your business name attached). You cannot claim any expenses in relationship to your business until you have a registered name (unless you trade only using your actual name)
Business cards are a cheap and most effective way to promote and advertise your business and are an invaluable networking tool. Each business card should contain the business name, persons name, title, address, phone, fax, email and web address. If the name of your business is not self descriptive, put a couple of words to explain what your business does, e.g. Gabogrecan Enterprises - Art Commissions, Tourist and Fashion Product.
Your card should be designed with the image you want to create, in mind. Colour, style and size of fonts, logo and the quality of card used, can all contribute to the image you wish to create.
Business cards are often stored in special containers or plastic sleeves by participants. If your card cannot fit these receptacles, they will be placed in a drawer and forgotten. If you want to have a magnet card, or some other type of interesting format - produce and present two business cards. One for storing with others and the special one to make an extra impact.
When exchanging a business card, take the trouble to read the information at that moment (it shows genuine interest and helps you remember the person). Jot some details on the back e.g. Date and function at which cards were exchanged, and any special details to assist you in remembering the contact e.g. opened the door for me!
Business cards that have a great deal of information printed on the back, are laminated, or are of a very dark colour, make this networking function impossible.
Always have business cards with you. Keep them in a wide variety of places so you do not forget them. Carry blank cards with you for those people you meet who have forgotten theirs.
Remember, business is often about perception. If you are targeting the small or micro business sector and your printed material is 'over the top' this can lose customers just as quickly as promotional material that is scatty and obviously disjointed.
This 'over the top' material is something big business does all the time and then they wonder why they cannot win over customers from smaller business. The bigger and bolder the 'splash' of your promotional material is the more is will suggest that what you have to offer is expensive - is this the image you want to portray? Remember that the smaller business does not necessarily think expensive means quality service or product.
Think out your image before having a single thing printed and this includes how you will present it e.g. will a brochure, flyer, business card be presented in a folder? Once you have decided on your image - then promote it and build up your brand recognition.
Taken from (http://www.articlecircle.com/business/communication/networking/creating-a-business-image-that-counts.html)
Sunday, 19 June 2011
Business Communication
Communication means transmitting your thoughts and ideas or exchanging information in an effective way. The main objective of most business communication is to improve performance. Communication is extremely important for one’s personal and professional success. This process involves the sender and receiver of the message. For efficient and effective communication mainly three things are important:
You must make your message understood.
You must understand the intended message sent to you.
Some control over the flow of the communication should be applied.
A business communication is how you communicate in your line of work. It is also a matter of human relationships. Good business communication is a must to meet the demands of the business environment. Most of us spend a lot of time communicating our knowledge, thoughts, and ideas to others. Your communication at the workplace can make all the difference between success and failure. Communication is described by many as the single most important factor in choosing managerial level staff, yet despite this fact many people are unable to convey their thoughts and they are struggling to communicate effectively.
In business, mainly we deal with the oral and written communication. No business is feasible without communication, especially written. An effectual written communication must be clear, succinct, accurate and well designed. For writing any business letter, you should have a clear picture of your target audience for whom your letter is intended. Arrange your documents with your readers’ needs in mind. You must create reader-friendly layouts to emphasize vital information. Try to write shorter sentences when possible. Whatever you write, write it with confidence and power so that it flows logically. Keep in mind that reliability and status will automatically improve by the use of good referencing and better presentation.
Oral communication is the essence of management, so a proper education is a must in this field. Oral skills are as important as written. Many people lack in the skills and confidence to make effective presentation. Your strategy, structure and style of speech should be striking. Your attention and actions play a major role in oral communication. Managers and supervisors have to be aware of the other people, and have to exert themselves to ensure the other person understands them. A great speaker is great boon to any business. Eye contacts, gestures and dressing sense, all reflect your attitude and approach towards business.
If you are in an online business then you must have the ability to reach the audience that wants your services or products. Since the online world is so big and it offers so many amazing things, your online business communication needs to be instantaneous and effective. Otherwise your clients will look somewhere else for their requirements. In online businesses, there are so many ways that one can convey one's thoughts. Examples include e-mails, newsletters, web sites, articles and reviews. You can win the respect and clients by every word you write and speak.
Taken From (http://www.businesscreatorpro.com/articles/business_communication.php)
You must make your message understood.
You must understand the intended message sent to you.
Some control over the flow of the communication should be applied.
A business communication is how you communicate in your line of work. It is also a matter of human relationships. Good business communication is a must to meet the demands of the business environment. Most of us spend a lot of time communicating our knowledge, thoughts, and ideas to others. Your communication at the workplace can make all the difference between success and failure. Communication is described by many as the single most important factor in choosing managerial level staff, yet despite this fact many people are unable to convey their thoughts and they are struggling to communicate effectively.
In business, mainly we deal with the oral and written communication. No business is feasible without communication, especially written. An effectual written communication must be clear, succinct, accurate and well designed. For writing any business letter, you should have a clear picture of your target audience for whom your letter is intended. Arrange your documents with your readers’ needs in mind. You must create reader-friendly layouts to emphasize vital information. Try to write shorter sentences when possible. Whatever you write, write it with confidence and power so that it flows logically. Keep in mind that reliability and status will automatically improve by the use of good referencing and better presentation.
Oral communication is the essence of management, so a proper education is a must in this field. Oral skills are as important as written. Many people lack in the skills and confidence to make effective presentation. Your strategy, structure and style of speech should be striking. Your attention and actions play a major role in oral communication. Managers and supervisors have to be aware of the other people, and have to exert themselves to ensure the other person understands them. A great speaker is great boon to any business. Eye contacts, gestures and dressing sense, all reflect your attitude and approach towards business.
If you are in an online business then you must have the ability to reach the audience that wants your services or products. Since the online world is so big and it offers so many amazing things, your online business communication needs to be instantaneous and effective. Otherwise your clients will look somewhere else for their requirements. In online businesses, there are so many ways that one can convey one's thoughts. Examples include e-mails, newsletters, web sites, articles and reviews. You can win the respect and clients by every word you write and speak.
Taken From (http://www.businesscreatorpro.com/articles/business_communication.php)
7 ways to make a GREAT first impression!
1. Focus on the other
Being known as a 'natural' at interpersonal communication is not just a gift that a select few enjoy. We can all enjoy the reputation of being 'a great communicator'.
Simply focus the conversation on the other person. This takes the pressure off you --- you don't have to be a witty bon-vivant to be a great communicator.
Avoid interrogating your new acquaintance, and if you are really nervous do your best to control twitches and jittery movements. And (best hint coming...) ALWAYS slow your speaking rate down. Nervousness makes us talk too fast.
2. The eyes have it
Here's a great 'rule breaker': instead of sticking to the 'respect someone's privacy and personal space' rule, when you meet someone for the first time give them a good look right in the eyes.
It's well known that when we look at someone we find attractive, our pupils dilate, a phenomenon that the other person instinctively picks up on. Well, that phenomenon can also be put to good use in our business dealings, too. Notice the other person's eye color, say 'great' to yourself, and you'll find yourself involuntarily smiling. The other person will pick up on your mood.
But try and avoid smiling lecherously, or as a vampire would when contemplating a tasty new neck...
3. Get over your 'bad hair day'
Whilst 'being yourself' is always a good thing for relational honesty, try and disguise your inherent pessimism and bad mood from new acquaintances.
Even though you know you are just 'having a bad day' or a bad half-hour, the other person will probably decide that you are a 'full-time whinger', an impression and reputation hard to shake.
A bad mood will spread contagiously, bringing down the other person too. Better to start off positively; you can always let them see your 'other' side on another day...
4. "Mirror in the bathroom" **
Adjust your posture, voice and gestures to those of your new acquaintance. Establish rapport by mirroring their head nods and tilts. Speak at their pace and volume level. You'd be surprised by just how many different 'voices' a successful salesperson uses in a day -- they spend a large amount of time mirroring the other person's gestures, voice, language, pace, intonation and volume.
** (a wildly unsuccessful link to an 80s ska/reggae song)
5. Tread lightly...
He's talking about his new Holden Commodore; you're thinking of your new Impreza WRX. Or she's talking about her latest small win at the office and you're thinking about the new $1M account you just landed single-handed.
Which do you reckon will be more impressive: you gloating about your wins and toys, or you letting the other person have their 15 minutes of fame?
Good manners, as well as psychological research, dictate that to impress your guest you should always keep at the forefront of your mind the question, "How am I making the other person feel?"
Actively encourage others to talk about themselves, and respond genuinely --- without bringing it back to yourself.
6. Focus on their achievements
Use flattery sparingly but powerfully by focusing on the other person's achievements, not their personal attributes. Even if they suspect you might be brown-nosing, they will still get a warm glow from a well-directed compliment. "You have a great eye for colour; I really like how you have put the office decor together" is more flattering than, "Nice office".
"I like your new BMW - you must be a real asset to the company for them to give it to you" is more flattering than, "So who did you suck up to?"
Similarly, "You have a great eye for colour; I really like how you've put your wardrobe together" works better than, "You look totally shaggable in that dress".
7. It's never too late
Remember, there's very little that is unfixable in our interpersonal business relationships. There is usually always another chance to fix false first impressions.
Let's say you arrive at a meeting late, having just copped a parking ticket from the previous appointment. Your mood is not, as they might say, triumphant and glowing. Instead of responding appropriately to a new acquaintance's polite greeting, you mumble a grumpy 'yeah' and drop your laptop bag unceremonially into a nearby chair.
Okay, not a good start. But step outside the room for a moment, take a deep breath, count to seven (ten is too long a pause) re-enter the room and look your acquaintance in the eye. Apologise and explain why you are out of sorts. You might even want to turn it into a joke by saying something like, "I see you just met my evil twin."
And remember to cut others some slack if they make a bad first impression on you, too! What comes around, goes around...
Taken From(http://www.leehopkins.com/how-to-make-a-great-first-impression.html)
Being known as a 'natural' at interpersonal communication is not just a gift that a select few enjoy. We can all enjoy the reputation of being 'a great communicator'.
Simply focus the conversation on the other person. This takes the pressure off you --- you don't have to be a witty bon-vivant to be a great communicator.
Avoid interrogating your new acquaintance, and if you are really nervous do your best to control twitches and jittery movements. And (best hint coming...) ALWAYS slow your speaking rate down. Nervousness makes us talk too fast.
2. The eyes have it
Here's a great 'rule breaker': instead of sticking to the 'respect someone's privacy and personal space' rule, when you meet someone for the first time give them a good look right in the eyes.
It's well known that when we look at someone we find attractive, our pupils dilate, a phenomenon that the other person instinctively picks up on. Well, that phenomenon can also be put to good use in our business dealings, too. Notice the other person's eye color, say 'great' to yourself, and you'll find yourself involuntarily smiling. The other person will pick up on your mood.
But try and avoid smiling lecherously, or as a vampire would when contemplating a tasty new neck...
3. Get over your 'bad hair day'
Whilst 'being yourself' is always a good thing for relational honesty, try and disguise your inherent pessimism and bad mood from new acquaintances.
Even though you know you are just 'having a bad day' or a bad half-hour, the other person will probably decide that you are a 'full-time whinger', an impression and reputation hard to shake.
A bad mood will spread contagiously, bringing down the other person too. Better to start off positively; you can always let them see your 'other' side on another day...
4. "Mirror in the bathroom" **
Adjust your posture, voice and gestures to those of your new acquaintance. Establish rapport by mirroring their head nods and tilts. Speak at their pace and volume level. You'd be surprised by just how many different 'voices' a successful salesperson uses in a day -- they spend a large amount of time mirroring the other person's gestures, voice, language, pace, intonation and volume.
** (a wildly unsuccessful link to an 80s ska/reggae song)
5. Tread lightly...
He's talking about his new Holden Commodore; you're thinking of your new Impreza WRX. Or she's talking about her latest small win at the office and you're thinking about the new $1M account you just landed single-handed.
Which do you reckon will be more impressive: you gloating about your wins and toys, or you letting the other person have their 15 minutes of fame?
Good manners, as well as psychological research, dictate that to impress your guest you should always keep at the forefront of your mind the question, "How am I making the other person feel?"
Actively encourage others to talk about themselves, and respond genuinely --- without bringing it back to yourself.
6. Focus on their achievements
Use flattery sparingly but powerfully by focusing on the other person's achievements, not their personal attributes. Even if they suspect you might be brown-nosing, they will still get a warm glow from a well-directed compliment. "You have a great eye for colour; I really like how you have put the office decor together" is more flattering than, "Nice office".
"I like your new BMW - you must be a real asset to the company for them to give it to you" is more flattering than, "So who did you suck up to?"
Similarly, "You have a great eye for colour; I really like how you've put your wardrobe together" works better than, "You look totally shaggable in that dress".
7. It's never too late
Remember, there's very little that is unfixable in our interpersonal business relationships. There is usually always another chance to fix false first impressions.
Let's say you arrive at a meeting late, having just copped a parking ticket from the previous appointment. Your mood is not, as they might say, triumphant and glowing. Instead of responding appropriately to a new acquaintance's polite greeting, you mumble a grumpy 'yeah' and drop your laptop bag unceremonially into a nearby chair.
Okay, not a good start. But step outside the room for a moment, take a deep breath, count to seven (ten is too long a pause) re-enter the room and look your acquaintance in the eye. Apologise and explain why you are out of sorts. You might even want to turn it into a joke by saying something like, "I see you just met my evil twin."
And remember to cut others some slack if they make a bad first impression on you, too! What comes around, goes around...
Taken From(http://www.leehopkins.com/how-to-make-a-great-first-impression.html)
Tuesday, 14 June 2011
strategic planning - the link with marketing
Businesses that succeed do so by creating and keeping customers. They do this by providing better value for the customer than the competition.
Marketing management constantly have to assess which customers they are trying to reach and how they can design products and services that provide better value (“competitive advantage”).
The main problem with this process is that the “environment” in which businesses operate is constantly changing. So a business must adapt to reflect changes in the environment and make decisions about how to change the marketing mix in order to succeed. This process of adapting and decision-making is known as marketing planning.
Where does marketing planning fit in with the overall strategic planning of a business?
Strategic planning is concerned about the overall direction of the business. It is concerned with marketing, of course. But it also involves decision-making about production and operations, finance, human resource management and other business issues.
The objective of a strategic plan is to set the direction of a business and create its shape so that the products and services it provides meet the overall business objectives.
Marketing has a key role to play in strategic planning, because it is the job of marketing management to understand and manage the links between the business and the “environment”.
Sometimes this is quite a straightforward task. For example, in many small businesses there is only one geographical market and a limited number of products (perhaps only one product!).
However, consider the challenge faced by marketing management in a multinational business, with hundreds of business units located around the globe, producing a wide range of products. How can such management keep control of marketing decision-making in such a complex situation? This calls for well-organized marketing planning.
What are the key issues that should be addressed in strategic and marketing planning?
The following questions lie at the heart of any marketing and strategic planning process:
• Where are we now?
• How did we get there?
• Where are we heading?
• Where would we like to be?
• How do we get there?
• Are we on course?
Why is marketing planning essential?
Businesses operate in hostile and increasingly complex environment. The ability of a business to achieve profitable sales is impacted by dozens of environmental factors, many of which are inter-connected. It makes sense to try to bring some order to this chaos by understanding the commercial environment and bringing some strategic sense to the process of marketing products and services.
A marketing plan is useful to many people in a business. It can help to:
• Identify sources of competitive advantage
• Gain commitment to a strategy
• Get resources needed to invest in and build the business
• Inform stakeholders in the business
• Set objectives and strategies
• Measure performance
Taken From (http://tutor2u.net/business/strategy/strategy_marketing.htm)
Marketing management constantly have to assess which customers they are trying to reach and how they can design products and services that provide better value (“competitive advantage”).
The main problem with this process is that the “environment” in which businesses operate is constantly changing. So a business must adapt to reflect changes in the environment and make decisions about how to change the marketing mix in order to succeed. This process of adapting and decision-making is known as marketing planning.
Where does marketing planning fit in with the overall strategic planning of a business?
Strategic planning is concerned about the overall direction of the business. It is concerned with marketing, of course. But it also involves decision-making about production and operations, finance, human resource management and other business issues.
The objective of a strategic plan is to set the direction of a business and create its shape so that the products and services it provides meet the overall business objectives.
Marketing has a key role to play in strategic planning, because it is the job of marketing management to understand and manage the links between the business and the “environment”.
Sometimes this is quite a straightforward task. For example, in many small businesses there is only one geographical market and a limited number of products (perhaps only one product!).
However, consider the challenge faced by marketing management in a multinational business, with hundreds of business units located around the globe, producing a wide range of products. How can such management keep control of marketing decision-making in such a complex situation? This calls for well-organized marketing planning.
What are the key issues that should be addressed in strategic and marketing planning?
The following questions lie at the heart of any marketing and strategic planning process:
• Where are we now?
• How did we get there?
• Where are we heading?
• Where would we like to be?
• How do we get there?
• Are we on course?
Why is marketing planning essential?
Businesses operate in hostile and increasingly complex environment. The ability of a business to achieve profitable sales is impacted by dozens of environmental factors, many of which are inter-connected. It makes sense to try to bring some order to this chaos by understanding the commercial environment and bringing some strategic sense to the process of marketing products and services.
A marketing plan is useful to many people in a business. It can help to:
• Identify sources of competitive advantage
• Gain commitment to a strategy
• Get resources needed to invest in and build the business
• Inform stakeholders in the business
• Set objectives and strategies
• Measure performance
Taken From (http://tutor2u.net/business/strategy/strategy_marketing.htm)
The 50 Critical Questions Essential to Running a Great Business
There are hundreds of questions essential to running a great business. Of all of the questions, I consider these the 50 most critical. Consider making each of these questions the topic for weekly management meetings. Do we have a vision about where we are going as a company?
1. Do we plan adequately to grow the company?
2. Do we communicate the plan to all who are involved with the company?
3. Do we have good cash management?
4. Are we building cash?
5. Is the overall financial condition of the company improving or deteriorating?
6. Do we have timely and accurate financial data to review?
7. Does the data we have help you make decisions? Do we need more? Do we look at all the
data you receive each month?
8. Do employees understand how their work impacts the company financially?
9. Is our company performing well compared to industry standards?
10. Do we have adequate internal controls to prevent employee theft?
11. Do we meet with employees at least once a month to review variances and trends?
12. Are we losing market share?
13. Have we surveyed or otherwise communicated with our customers for their input in
improvements in service and new products?
14. Are overall customer complaints trending up or down?
15. Do we clearly understand our customers and markets?
16. Do we know where we are positioned in our market?
17. Are our products and services out of date?
18. Is our pricing appropriate and competitive?
19. Are we regularly creating new products and offering them to existing customers?
20. Are we satisfied with our revenue growth?
21. Are all of our product sales profitable?
22. Is our customer base shrinking or increasing?
23. Can we identify customers or groups of customers whose business is not profitable for us?
24. Are we satisfied with our plans to expand via the Internet?
25. Do we spend time with our direct reports, one-to-one?
26. Do we spend time with our top customers, one-to-one?
27. Are our sales and customer service people superstars?
28. Do you celebrate the achievements of the company and its employees?
29. Do we do self-audits on our own records, and the maintenance of equipment?
30. Do we have back up suppliers for most of our manufacturing process needs?
31. Do we have adequate internal quality controls or do customers know first if processes failed?
32. Have we adequately protected our intellectual property?
33. Are our facilities that are adequate for today also adequate for our growth plans?
34. Are we adequately minimizing the threats to our business?
35. Are our facilities and information systems prepared for a natural disaster or other physically
destructive force?
36. Do we have adequate back up procedures for our information systems?
37. Are we making the best use of available new technologies in manufacturing?
38. Have we talked to our suppliers about better prices or terms or other changes to our
relationship to benefit us both?
39. Do we regularly chart and review operational performance?
40. Do we spend enough time to be sure we are hiring for the long run?
41. Do we follow compliance laws and have written policies as required?
42. Are we following procedures that are most likely to keep us out of employee lawsuits?
43. Does our compensation and benefit structure allow us to hire highly talented employees?
44. Are our employees overworked? Do we spend a lot in overtime and temporary help? Is that
number increasing?
45. Do we tolerate gossip or other behavior that undermines employee morale?
46. Do we ask employees to review the company?
47. Do we give enough types of feedback to employees regarding their performance? Do we
review them individually at least annually?
48. Do we insist our employees stay employable?
49. Is the CEO accountable to someone for his or her decisions and actions? Does the Board (if
you have one) communicate their expectations about the company?
50. Is the CEO accountable to someone for his or her decisions and actions? Does the Board (if
you have one) communicate their expectations about the company?
Taken From (http://www.woopidoo.com/articles/jk3-great-business.htm)
1. Do we plan adequately to grow the company?
2. Do we communicate the plan to all who are involved with the company?
3. Do we have good cash management?
4. Are we building cash?
5. Is the overall financial condition of the company improving or deteriorating?
6. Do we have timely and accurate financial data to review?
7. Does the data we have help you make decisions? Do we need more? Do we look at all the
data you receive each month?
8. Do employees understand how their work impacts the company financially?
9. Is our company performing well compared to industry standards?
10. Do we have adequate internal controls to prevent employee theft?
11. Do we meet with employees at least once a month to review variances and trends?
12. Are we losing market share?
13. Have we surveyed or otherwise communicated with our customers for their input in
improvements in service and new products?
14. Are overall customer complaints trending up or down?
15. Do we clearly understand our customers and markets?
16. Do we know where we are positioned in our market?
17. Are our products and services out of date?
18. Is our pricing appropriate and competitive?
19. Are we regularly creating new products and offering them to existing customers?
20. Are we satisfied with our revenue growth?
21. Are all of our product sales profitable?
22. Is our customer base shrinking or increasing?
23. Can we identify customers or groups of customers whose business is not profitable for us?
24. Are we satisfied with our plans to expand via the Internet?
25. Do we spend time with our direct reports, one-to-one?
26. Do we spend time with our top customers, one-to-one?
27. Are our sales and customer service people superstars?
28. Do you celebrate the achievements of the company and its employees?
29. Do we do self-audits on our own records, and the maintenance of equipment?
30. Do we have back up suppliers for most of our manufacturing process needs?
31. Do we have adequate internal quality controls or do customers know first if processes failed?
32. Have we adequately protected our intellectual property?
33. Are our facilities that are adequate for today also adequate for our growth plans?
34. Are we adequately minimizing the threats to our business?
35. Are our facilities and information systems prepared for a natural disaster or other physically
destructive force?
36. Do we have adequate back up procedures for our information systems?
37. Are we making the best use of available new technologies in manufacturing?
38. Have we talked to our suppliers about better prices or terms or other changes to our
relationship to benefit us both?
39. Do we regularly chart and review operational performance?
40. Do we spend enough time to be sure we are hiring for the long run?
41. Do we follow compliance laws and have written policies as required?
42. Are we following procedures that are most likely to keep us out of employee lawsuits?
43. Does our compensation and benefit structure allow us to hire highly talented employees?
44. Are our employees overworked? Do we spend a lot in overtime and temporary help? Is that
number increasing?
45. Do we tolerate gossip or other behavior that undermines employee morale?
46. Do we ask employees to review the company?
47. Do we give enough types of feedback to employees regarding their performance? Do we
review them individually at least annually?
48. Do we insist our employees stay employable?
49. Is the CEO accountable to someone for his or her decisions and actions? Does the Board (if
you have one) communicate their expectations about the company?
50. Is the CEO accountable to someone for his or her decisions and actions? Does the Board (if
you have one) communicate their expectations about the company?
Taken From (http://www.woopidoo.com/articles/jk3-great-business.htm)
Monday, 13 June 2011
10 Entrepreneurial Traits You Need to Grow a Business
Entrepreneurial spirit is a key leadership characteristic needed to improve business growth in today’s challenging economy. Improving business growth is not easy. Having more entrepreneurial spirit in your organization can help you achieve your goals.
The days of sitting back, waiting for customers to call or waiting to be told what to do are gone. Successful growth companies today expect managers and employees to have an entrepreneurial spirit.
They expect their employees to take risks, to identify new opportunities and the employees are empowered to make major decisions.
If you or your employees don’t already have an entrepreneurial spirit, developing one can be tough. But, it’s not impossible. You will need to develop certain personality traits.
Research has shown that the best entrepreneurs share these common characteristics:
1. Confidence
2. Courage
3. Decisiveness
4. Drive
5. Experience
6. Knowledge
7. Patience
8. Perseverance
9. Self Awareness
10. Self Motivation
Business growth success may depend on your organizations entrepreneurial spirit. If you feel this is lacking in your organization, start putting together an improvement plan today and focus on these 10 entrepreneur characteristics.
Taken From (http://dennissommer.wordpress.com/2010/07/29/20100729-business-growth/)
The days of sitting back, waiting for customers to call or waiting to be told what to do are gone. Successful growth companies today expect managers and employees to have an entrepreneurial spirit.
They expect their employees to take risks, to identify new opportunities and the employees are empowered to make major decisions.
If you or your employees don’t already have an entrepreneurial spirit, developing one can be tough. But, it’s not impossible. You will need to develop certain personality traits.
Research has shown that the best entrepreneurs share these common characteristics:
1. Confidence
2. Courage
3. Decisiveness
4. Drive
5. Experience
6. Knowledge
7. Patience
8. Perseverance
9. Self Awareness
10. Self Motivation
Business growth success may depend on your organizations entrepreneurial spirit. If you feel this is lacking in your organization, start putting together an improvement plan today and focus on these 10 entrepreneur characteristics.
Taken From (http://dennissommer.wordpress.com/2010/07/29/20100729-business-growth/)
7 Ways to Build a Marketing-Driven Company Culture
Want your company to gain unstoppable momentum? You need a way to bring your marketing mission and vision to life for your entire team.
The most widely talked-about businesses are those that can deliver a remarkable experience all the way through the marketing process -- from prospect to customer to loyal evangelist.
This type of experience demands a marketing culture that is built into every corner of your business. It starts with an inspirational leader, and a story that employees and staff alike can connect with.
Ultimately, creating a remarkable customer experience can become part of any firm's core strategy. It's something that every single member of your staff can deliver, using a systematic progression of touches and contacts that never fail to meet your customers' expectations.
Of course, this kind of marketing-driven culture doesn't happen overnight, and it certainly doesn't happen by accident. Here's an action plan your company can follow to achieve it.
The Reason Why
One of the most attractive features a company can possess in an effort to create a marketing-driven culture is a strong sense of purpose or "reason why." People often go the extra mile in an organization where they connect with what they feel is a single-minded, higher purpose.
This doesn't mean the reason why has to address some large social issue. It can be a desire to provide incredible service, elegant design, simple solutions, or relief to a customer segment that is suffering. The key is that what the business does can actually feel secondary to the desire to serve this higher purpose.
The Role of Simplicity
The most effective marketing is simple. In other words, people get what the company stands for; they connect with its brand and can communicate the firm's unique point of view or innovation in just a handful of words.
Simplicity is often harder to achieve than it appears, as it requires subtlety and a commitment to simplifying every aspect of the business. When you see it, you know it and feel it -- and it runs deep in the organizations that master it.
The Epic Story
Building a marketing-driven culture requires a story that attracts people. It also requires a leader capable or building this story into the organization's culture.
Most often the story serves to illustrate the "reason why" or the higher purpose addressed in my first point. Like any good story it takes people on a journey that gives them a glimpse of a better self. It's a journey worth taking -- and a story worth telling -- over and over again.
Creating Value
Marketing-driven cultures develop a value mindset that shifts how employees think about an organization's product, service, and process development.
The key question here isn't how to sell more. It's how to create more value, build deeper relationships, and grow with our customers.
The answer to this question often lies outside of traditional product roadmaps. It may, in fact, depend upon your ability to create a service that seems unrelated to your organization's core product or service.
Closing Touchpoint Gaps
Every time a member of your organization comes into contact with a customer or prospect they are performing a marketing function. It doesn't matter if they reside in a region on your org chart that lies far beyond the marketing department.
Marketing-driven organizations get this. They chart every customer touchpoint and strive to deliver a remarkable marketing experience -- no matter what the objective of the customer contact happens to be.
When your organization maps its own collective marketing, operations, and finance touchpoints, you can discover both gaps and opportunities to deliver a branded marketing experience over and over again. Quite often it's these little touches, and certainly the final touches, that determine how a customer feels about your brand.
The Results Review
The ultimate purpose of marketing is to deliver a result -- either by virtue of a product or a service. The only real way to be sure that is happening is to measure the impact a customer receives.
In most cases, this is simply a matter of following up with a systematic results review process after you have delivered the goods. No matter how this review process unfolds it creates a clear cultural expectation within your organization that nothing matters until the customer feels the results.
The One Way to Fail
Although this step comes at the end of the article, it could just as easily be job one. The simplest way to fail is to keep your marketing plans, objectives, strategies, and tactics a secret. Conversely, keeping everyone involved and in touch with your marketing strategy is the simplest way to succeed.
You need to create orientation and routine marketing education sessions that include the entire staff. Also consider rotating everyone in the organization through customer service, and put them into a position to share marketing wins and losses. You'll stand a much greater chance of helping everyone understand how and why their daily tasks connect with the organization's overall success.
If everyone comes to understand they actually work in the marketing department, everyone will start to view the world through the eyes of the customer. And that's how you build a marketing-driven culture.
Taken From (http://www.allbusiness.com/marketing-advertising/market-research-analysis/15615231-1.html)
The most widely talked-about businesses are those that can deliver a remarkable experience all the way through the marketing process -- from prospect to customer to loyal evangelist.
This type of experience demands a marketing culture that is built into every corner of your business. It starts with an inspirational leader, and a story that employees and staff alike can connect with.
Ultimately, creating a remarkable customer experience can become part of any firm's core strategy. It's something that every single member of your staff can deliver, using a systematic progression of touches and contacts that never fail to meet your customers' expectations.
Of course, this kind of marketing-driven culture doesn't happen overnight, and it certainly doesn't happen by accident. Here's an action plan your company can follow to achieve it.
The Reason Why
One of the most attractive features a company can possess in an effort to create a marketing-driven culture is a strong sense of purpose or "reason why." People often go the extra mile in an organization where they connect with what they feel is a single-minded, higher purpose.
This doesn't mean the reason why has to address some large social issue. It can be a desire to provide incredible service, elegant design, simple solutions, or relief to a customer segment that is suffering. The key is that what the business does can actually feel secondary to the desire to serve this higher purpose.
The Role of Simplicity
The most effective marketing is simple. In other words, people get what the company stands for; they connect with its brand and can communicate the firm's unique point of view or innovation in just a handful of words.
Simplicity is often harder to achieve than it appears, as it requires subtlety and a commitment to simplifying every aspect of the business. When you see it, you know it and feel it -- and it runs deep in the organizations that master it.
The Epic Story
Building a marketing-driven culture requires a story that attracts people. It also requires a leader capable or building this story into the organization's culture.
Most often the story serves to illustrate the "reason why" or the higher purpose addressed in my first point. Like any good story it takes people on a journey that gives them a glimpse of a better self. It's a journey worth taking -- and a story worth telling -- over and over again.
Creating Value
Marketing-driven cultures develop a value mindset that shifts how employees think about an organization's product, service, and process development.
The key question here isn't how to sell more. It's how to create more value, build deeper relationships, and grow with our customers.
The answer to this question often lies outside of traditional product roadmaps. It may, in fact, depend upon your ability to create a service that seems unrelated to your organization's core product or service.
Closing Touchpoint Gaps
Every time a member of your organization comes into contact with a customer or prospect they are performing a marketing function. It doesn't matter if they reside in a region on your org chart that lies far beyond the marketing department.
Marketing-driven organizations get this. They chart every customer touchpoint and strive to deliver a remarkable marketing experience -- no matter what the objective of the customer contact happens to be.
When your organization maps its own collective marketing, operations, and finance touchpoints, you can discover both gaps and opportunities to deliver a branded marketing experience over and over again. Quite often it's these little touches, and certainly the final touches, that determine how a customer feels about your brand.
The Results Review
The ultimate purpose of marketing is to deliver a result -- either by virtue of a product or a service. The only real way to be sure that is happening is to measure the impact a customer receives.
In most cases, this is simply a matter of following up with a systematic results review process after you have delivered the goods. No matter how this review process unfolds it creates a clear cultural expectation within your organization that nothing matters until the customer feels the results.
The One Way to Fail
Although this step comes at the end of the article, it could just as easily be job one. The simplest way to fail is to keep your marketing plans, objectives, strategies, and tactics a secret. Conversely, keeping everyone involved and in touch with your marketing strategy is the simplest way to succeed.
You need to create orientation and routine marketing education sessions that include the entire staff. Also consider rotating everyone in the organization through customer service, and put them into a position to share marketing wins and losses. You'll stand a much greater chance of helping everyone understand how and why their daily tasks connect with the organization's overall success.
If everyone comes to understand they actually work in the marketing department, everyone will start to view the world through the eyes of the customer. And that's how you build a marketing-driven culture.
Taken From (http://www.allbusiness.com/marketing-advertising/market-research-analysis/15615231-1.html)
Sunday, 12 June 2011
Marketing management - the idea sensitive point
In some of my writings I have mentioned the ‘I.s.a’ or ‘idea sensitive area’. Because the term ‘Isa’ has since come to indicate a type of investment instrument, it may be sensible strategy to change the term to ‘I.S.P’ or ‘idea sensitive point’.
Everyone knows what a bottleneck is. A bottleneck is a constriction or restriction on flow. The bottleneck controls and limits the flow through the channel. The bottleneck determines the rate of flow. Much effort is made to identify bottlenecks. Once identified, the bottleneck can be opened up and widened. Or the bottleneck can be by-passed.
In general, efforts are made to remove the restricting effects of the bottleneck. In some ways an ‘idea sensitive point’ is the opposite of the bottleneck. It is not a restricting or limiting area. There may be no reason at all why you should notice the area.
An ISP is a point or an area where a change in idea can produce substantial results. These results can take the form of increased sales, increased profits, reduced costs, etc. Take the label on a bottle of table water (mineral water, etc.) This is not an area which demands attention. There are no problems. The label serves its purpose. Nevertheless, the label could be an ISP. When a bottle is placed on a table everyone can read the label.
When you buy a bottle the label is very visible. What could you do with that visibility?
Why not use the label, or adjacent areas, for advertising? Why not advertise cars or digital cameras? An even better idea would be to advertise holidays to exotic places. If chosen well, such advertisements might even enhance the ‘feeling’ around the water. If bargain discounts were offered for such holidays, that bottled water would be sought out.
So the label is an ISP. There may be many different ideas which flow from considering this ISP.
WHICH COMES FIRST?
Does the ISP come first and then we look around for ideas? Or, does the idea come first and then we relaise it is an ISP?
Research shows that screw-caps on wine bottles are much better for the wine than the traditional cork. Corks are unreliable and a significant amount of wine is wasted through bad corks. The difficulty is that screw-caps would suggest a cheap wine. The tradition and ritual of pulling a cork would be lost. For this reason plastic corks have been developed which are more reliable than ordinary corks but still retain the ‘cork’ effect and action. So this could be an ISP - even though it is also a problem.
One idea would be for expensive wines to have silver enamelled screw caps. These obviously expensive caps would be works of art. For example, each cap could be a chess piece - so you would collect a chess set. Or anew game could be designed to use the special caps.
There are many other ideas which could develop around this particular ISP. In this example the ISP arises from a perceived problem. In the case of the label on the water bottle it did not.
Restaurants have menus. Diners pay a bill. There is an ISP here. Maybe restaurants could carry half a dozen of the current best-selling books. You choose one from the menu and it is simply added to your bill. You hardly notice the purchase. You can also purchase a book as a gift to your guests. You have bought your guest a steak, which has been consumed, why not a book, which lasts longer?
WHOSE BUSINESS IS IT?
Whose duty is it to look for ISPs? As usual, the answer is everyone’s and no one’s. That is always the case with creativity. Obviously, everyone is supposed to be creative. The result is that no one makes any effort to be creative. Creativity is seen as a sort of by-product while you are doing something else. Too often it is assumed that new ideas are the business of the R&D department. This is a bad mistake. The mind-set of science and research is the mind-set of analysis and discovery. That is the exact opposite of the mind-set of creativity and design.
There is a huge difference between trying to find out ‘what is’ and seeking to design ‘what can be’. I have often suggested that organizations need a specific ‘Concept Department’ that is separate from R&D and Marketing. It would be the business of this department to seek out ISPs and to put them on the ‘Creative Hit List’.
It could be argued that any point could be a potential ISP. Here we need to distinguish between ‘improvement’ as such and an ISP. There is always room for improvement at any point in a process. The improvement may be small or large. The point about an ISP is the word ‘sensitive’. The word ‘sensitive’ means that you get a big effect from a small idea. A person who is sensitive to oysters gets a big reaction from a very small amount of oyster.
The mind-set of seeking out ISPs has to be developed. There are no formal rules which will identify an ISP. Your mind has to be open to possibilities and even start to generate an idea before you recognize an ISP.
To produce extra revenue or profits an organization may have to invest heavily in production capacity or marketing effort. With an ISP a small idea can produce a big result. The investment is disproportionately small. An ISP is an unused asset. It can never make sense for an organization to under-use its assets. The difficulty with an ISP is that it is an invisible asset until someone notices it. It is like buried treasure. No one knows it is there, so no one makes an effort to find it.
NEW PRODUCTS AND SERVICES
Every organization knows about the need to develop new products and services. A considerable effort is made to do this, even if the effort consists in following someone else with a ‘me too’ product. Developing anew product or service is not the same as identifying ISPs and then generating ideas around them. Sometimes the ISP frame of mind can be applied to discerning new values. There are the obvious values, but there are also values which are hidden unless you look directly at them. These are a form of ISP. Once the value has been identified then a new product or service can be designed to deliver that value.
NOTICING
Noticing is a difficult operation. You no longer notice something with which you are very familiar. You notice things that are wrong but not things that are right. You take for granted what is always around you.
Sometimes there needs to be an external perspective to notice something that cannot be noticed from within the system. It is certainly possible to notice ISPs from within an organization. It can also be useful to notice them from outside the organization.
SUMMARY
There are points where a new idea can make a big difference. These points are ‘sensitive’ to new thought. There is a need to identify such points and then to proceed to generate ideas around those points. There needs to be a formal effort to do this. Assuming that it will be done is not good enough. ISPs are unused assets. To leave them unused does not make good business sense.
Taken from (http://www.thinkingmanagers.com/management/marketing-management)
Everyone knows what a bottleneck is. A bottleneck is a constriction or restriction on flow. The bottleneck controls and limits the flow through the channel. The bottleneck determines the rate of flow. Much effort is made to identify bottlenecks. Once identified, the bottleneck can be opened up and widened. Or the bottleneck can be by-passed.
In general, efforts are made to remove the restricting effects of the bottleneck. In some ways an ‘idea sensitive point’ is the opposite of the bottleneck. It is not a restricting or limiting area. There may be no reason at all why you should notice the area.
An ISP is a point or an area where a change in idea can produce substantial results. These results can take the form of increased sales, increased profits, reduced costs, etc. Take the label on a bottle of table water (mineral water, etc.) This is not an area which demands attention. There are no problems. The label serves its purpose. Nevertheless, the label could be an ISP. When a bottle is placed on a table everyone can read the label.
When you buy a bottle the label is very visible. What could you do with that visibility?
Why not use the label, or adjacent areas, for advertising? Why not advertise cars or digital cameras? An even better idea would be to advertise holidays to exotic places. If chosen well, such advertisements might even enhance the ‘feeling’ around the water. If bargain discounts were offered for such holidays, that bottled water would be sought out.
So the label is an ISP. There may be many different ideas which flow from considering this ISP.
WHICH COMES FIRST?
Does the ISP come first and then we look around for ideas? Or, does the idea come first and then we relaise it is an ISP?
Research shows that screw-caps on wine bottles are much better for the wine than the traditional cork. Corks are unreliable and a significant amount of wine is wasted through bad corks. The difficulty is that screw-caps would suggest a cheap wine. The tradition and ritual of pulling a cork would be lost. For this reason plastic corks have been developed which are more reliable than ordinary corks but still retain the ‘cork’ effect and action. So this could be an ISP - even though it is also a problem.
One idea would be for expensive wines to have silver enamelled screw caps. These obviously expensive caps would be works of art. For example, each cap could be a chess piece - so you would collect a chess set. Or anew game could be designed to use the special caps.
There are many other ideas which could develop around this particular ISP. In this example the ISP arises from a perceived problem. In the case of the label on the water bottle it did not.
Restaurants have menus. Diners pay a bill. There is an ISP here. Maybe restaurants could carry half a dozen of the current best-selling books. You choose one from the menu and it is simply added to your bill. You hardly notice the purchase. You can also purchase a book as a gift to your guests. You have bought your guest a steak, which has been consumed, why not a book, which lasts longer?
WHOSE BUSINESS IS IT?
Whose duty is it to look for ISPs? As usual, the answer is everyone’s and no one’s. That is always the case with creativity. Obviously, everyone is supposed to be creative. The result is that no one makes any effort to be creative. Creativity is seen as a sort of by-product while you are doing something else. Too often it is assumed that new ideas are the business of the R&D department. This is a bad mistake. The mind-set of science and research is the mind-set of analysis and discovery. That is the exact opposite of the mind-set of creativity and design.
There is a huge difference between trying to find out ‘what is’ and seeking to design ‘what can be’. I have often suggested that organizations need a specific ‘Concept Department’ that is separate from R&D and Marketing. It would be the business of this department to seek out ISPs and to put them on the ‘Creative Hit List’.
It could be argued that any point could be a potential ISP. Here we need to distinguish between ‘improvement’ as such and an ISP. There is always room for improvement at any point in a process. The improvement may be small or large. The point about an ISP is the word ‘sensitive’. The word ‘sensitive’ means that you get a big effect from a small idea. A person who is sensitive to oysters gets a big reaction from a very small amount of oyster.
The mind-set of seeking out ISPs has to be developed. There are no formal rules which will identify an ISP. Your mind has to be open to possibilities and even start to generate an idea before you recognize an ISP.
To produce extra revenue or profits an organization may have to invest heavily in production capacity or marketing effort. With an ISP a small idea can produce a big result. The investment is disproportionately small. An ISP is an unused asset. It can never make sense for an organization to under-use its assets. The difficulty with an ISP is that it is an invisible asset until someone notices it. It is like buried treasure. No one knows it is there, so no one makes an effort to find it.
NEW PRODUCTS AND SERVICES
Every organization knows about the need to develop new products and services. A considerable effort is made to do this, even if the effort consists in following someone else with a ‘me too’ product. Developing anew product or service is not the same as identifying ISPs and then generating ideas around them. Sometimes the ISP frame of mind can be applied to discerning new values. There are the obvious values, but there are also values which are hidden unless you look directly at them. These are a form of ISP. Once the value has been identified then a new product or service can be designed to deliver that value.
NOTICING
Noticing is a difficult operation. You no longer notice something with which you are very familiar. You notice things that are wrong but not things that are right. You take for granted what is always around you.
Sometimes there needs to be an external perspective to notice something that cannot be noticed from within the system. It is certainly possible to notice ISPs from within an organization. It can also be useful to notice them from outside the organization.
SUMMARY
There are points where a new idea can make a big difference. These points are ‘sensitive’ to new thought. There is a need to identify such points and then to proceed to generate ideas around those points. There needs to be a formal effort to do this. Assuming that it will be done is not good enough. ISPs are unused assets. To leave them unused does not make good business sense.
Taken from (http://www.thinkingmanagers.com/management/marketing-management)
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