One Theme or Many?
About three weeks ago I wrote a post entitled Small Business Marketing, Small Business Marketing, Small Business Marketing. In it I compared different strategies of driving traffic to your web site.
One strategy is to stay focused on a specific theme. I decided to give this concept a try. So from Feb. 7 – Feb 23 (With the exception of a special post on Valentines Day) I wrote about business planning every day.
The results are mostly positive.
- I have a great library of content to share with clients and prospects.
- I saw an improvement on my placement on searches for key words such as ”small business planning Indianapolis” and “business plan Indianapolis”
- Lots of cross traffic between related posts, so this improved my time on site statistics
- Increase in registrations for my Business Plan eCourse and my Business Plan Seminar
The one downside? My overall traffic numbers were down slightly. What this seems to indicate is one of several things
- Maybe I picked the wrong topic to use as my central core. Perhaps there isn’t as large a population among my readers who are interested in business planning as I hoped. However, the cross traffic does indicate there is a solid niche so planning needs to stay as part of the mix. To test the topic theory, I may try another string of related posts, on a different topic.
- My readers like diversity. So if I want to continue to expand my readership, perhaps I need to continue to diversify my offerings to appeal to a wider range of interests among small business owners.
- Maybe, my readers missed the different voices of my team. Since each of the team; Jay, Michelle, Allison and Taylor each have a different perspective and following, bringing back more of their ideas may drive our numbers more than a single key word. And while I am at it, I may look for a few more guest posts as well.
So look for a few more experiments over the next few weeks and give me some feedback on what you think will get more readers engaged.
Business Plan Mistake # 2 No Clear Audience
Yesterday, we started looking at the 10 mistakes business owners make as they write their plan. Today we continue with
Business Plan Mistake # 2 - No Clear Audience
Business plans are written for many different reasons: to take to the bank for a loan, to prove to potential investors your plan is marketable, or simply to guide your business. While the outline is the same, the amount of detail required in each section varies depending on the primary reader. Before you begin writing, decide for whom you are writing.
Are you applying for a loan? Then your primary reader is probably a commercial loan officer and members of the lender’s underwriting team. For this audience, you must pay careful attention to the numbers. Be sure you spend a significant amount of time building realistic financial projections. Good plans are written in stages, and it is common to make adjustments in your assumptions during the process. Before you submit the plan to the bank, double check to be sure your numbers are consistent throughout.
For a banker, one of the most important questions the plan should answer is: When will the business have positive cash flow? Be careful not to confuse profits with cash flow. Remember, profits don’t guarantee cash in the bank! Debts, startup loans, and disbursements to owners may erode cash reserves. Be sure you can prove the business will be able to repay a loan before you ask for one.
In contrast, a plan written to sell an idea for a new business to an investor or venture capitalist will have a slightly different emphasis. Almost a sales document, this type of plan is written to persuade investors you can take advantage of an opportunity by generating significant rewards for everyone involved. Investors evaluate the people and their track records, the idea, the market, and the technology. To capture their attention, you should focus on three elements:
- How big is the opportunity?
- What is your ability to execute the idea effectively?
- Why is the investment worth the perceived risk?
Most investors understand it is impossible to create realistic projections for truly innovative ideas. Therefore, they are more concerned with seeing proof that you have done your homework (spent time on research) and that you have the skills to manage the business.
And sometimes, you write just for you. Even if you do not need external funding, a written operating plan helps organize your business activities and creates a process to achieve your goals. The planning process defines objectives, establishes priorities, and outlines specific steps to achieve your goals. When you are writing for yourself, and perhaps for a management team, the most important sections are operations and business strategy. Do not spend a lot of time writing a detailed history. Instead, focus on how you will get to the future! This type of business plan is a living, breathing document that organizes your time and resources. Updated frequently, it is never quite finished.
Breathing New Life Into the Lung Care Group
Over the past few weeks, the Roundpeg staff has been working on a redesign for the Lung Care Group, a team of pulmonologists in Carmel, Indiana. The Lung Care Group already had a website in place, but it was obvious that the site did not adequately capture how talented the team at LCG was.
We got to work on a fully interactive overhaul of the website. We created a new layout which included downloadable forms for patients who didn’t want the inconvenience of filling them out at the doctor’s office. We also generated an interactive map for those who need directions to the Lung Care Group’s office. Not only do we feel that the final product goes a long way in improving the Lung Care Group’s brand image, but the LCG team loves it as well.
We’ve had a blast creating a website that the Lung Care Group could be proud of. Below you’ll find before and after screen shots of the site. Make sure to visit the site and check out all the new features.
New Year, New Beginning
This week I began as an account executive here at Roundpeg. As many of you know, I served as an intern here last summer, and I was lucky enough to be invited back to work full-time. It’s been awesome coming into a situation where I’m already so comfortable and feel I fit in so well. With that being said, there are some adjustments for a recent college grad that hasn’t been awake before 9 in the morning since high school (hello McDonald’s breakfast menu!)
With the new year beginning, we have all kinds of new projects. This is the time of year many companies decide it’s time to optimize their marketing efforts, which keeps us plenty busy. There are tons of new things I’ve got to learn and become accustomed to. Luckily, I have a great-and patient-crew around me to help.
The best part about my new job has been the opportunity to work directly with clients right off the bat, as well as be a major contributor to several campaigns…and this has all been in the first three days.
So far, it’s been one new adventure after another. In my first two weeks I will have already worked on designing websites, attended corporate events, contributed to the blog, and opened dialog with a handful of clients. I’m discovering and learning new things every day.
I’m really excited about all the possibilities 2010 has to offer. Here at Roundpeg we’ve done a number of things to improve our business strategy and put ourselves in a great position to achieve our 2010 goals. What changes have you made to start the year off right? How will you improve and make 2010 your best year ever?
Ten Business Planning Mistakes Most Business Owners Make
Every business is different. So it makes sense that their plans would be different as well. However, I have noticed many owners make some or all of these mistakes as they develop their plan
- No Plan - It is easy to put off writing a business plan until you have no choice because your r banker, investor, or potential landlord requires it. Unfortunately, that is the worst time to try and write a plan.
- No Clear Audience - Why do you need a plan? Are you writing for the banker in hopes of getting a loan, or a potential investors or simply to guide your business. While the outline is the same, the amount of detail required in each section varies depending on the audience.
- Too Much Detail or the Wrong Type of Detail – Can you boil down the description of your business to a simple message without getting bogged down in the details? Limit your product description to an overview, focusing on the problem your product solves and its unique features/ Remember to leave out the jargon and industry slang.
- Poorly Defined Customer – Everyone is not your customer. With a clear, specific definition of your target customer, it is easier to write a clear, specific plan.
- Limited Market Research – Just because you love your product or idea, it does not mean anyone else will. (By “anyone,” I mean anyone other than your mom, spouse, or best friend.) Who are these people, and what will make them buy?
- Underestimating your Competitors – Everyone has a competitor. Even truly innovative products must deal with competing products or services which may or may not solve the same problem, but ultimately will compete for the end customer’s available resources.
- No Meaningful Goals and Milestones - What will you accomplish? Be specific. How long will it take you and how will you measure your progress along the way?
- Activities Not Tied to Goals – Your goals form the basis of other decisions. Use the planning process to eliminate activities which do not move you closer to your goals.
- Unsupported Financial Projections – Unrealistic financial projects with a hockey-stick-shaped growth curve, set up a business for failure when owners spend too much too soon without enough cash reserves to help the business through the startup phase. As you develop financial projections, consider two scenarios: a best case and a worst case.
- Inadequate Consideration of Pitfalls – Stuff happens! Things go wrong. When the worst happens, will you be prepared? Having an adequate assessment of risks is not being negative — it is being prepared.
- Failure to Communicate - I know, I promised a list of the ten most common mistakes, (but don’t you like getting the little extra from time to time? ) While not directly a part of your document, poor communication will have a detrimental affect on your business. As you write your plan, involve others. Seek advice from people you respect. Talk to employees, family members, business partners, and advisers, such as your accountant and lawyer.
If you want to learn more about this topic you have two good choices and they are both FREE. When was the last time you saw an offer like that?
- Attend one of my Executive Briefings – This one hour overview covers the topics described above and includes discussion on how you can avoid these mistakes in your business. I offer the session the 2nd Thursday of every month at 8:30 at the offices of Trustpointe – 6666 E. 75th Street, Suite 150, Indianapolis, IN 46250
- Enroll in the 10 Week Online program – How to write a business plan in 10 Weeks.
- Do nothing, and be in the same place a year from now!
To take advantage of one or both of the FREE offers simply fill out the form below:
End of Year Review
As 2009 winds down, and I look at the P & L for the year, like many business owners I am disappointed. Clearly this has not been my most profitable year. ( I am not alone when I say that.) While some of the blame lies with the economy, much of the blame lies with me. But, instead of wallowing in self pity, I know it is time to look at what we did and develop a new plan for next year.
Over the next few weeks, I will be rewriting my business plan, and deciding which strategies need to change. I have already made a few changes and investments.
- Enrolled in Sandler Training through Trustpointe
- Changed the compensation plan for my employees to reward sales activities
- Refocused on planning which was a central part of my early business success
Over the next few weeks, there will be more changes. There must be, if I am going to be happier with my business performance next year. What about you? What changes will you make in 2010?
Contingency Planning – More than Backup
Yesterday, my post talked about the need to back up your data on a regular basis. Having access to your information is a key starting point, but surviving a crisis requires more than just data recovery.
Your disaster recovery plan should also include:
- Where you will operate if your office is damaged or destroyed.
- How you will finance equipment replacement. Do you have adequate insurance to replace office furniture, equipment, inventory and other assets?
- How you will cover business expenses. Continuity insurance provides additional insurance to cover expenses such as moving, or damages caused by missed deadlines.
- Documentation of everything you own. Even if you have adequate coverage, most policies require a detailed list of what was lost, damaged or stolen.
- Who will take care of your customers if you can’t. In the event you can not complete a project or meet a deadline because of the business interruption, do you have a relationship with someone else can serve your customers on a short term basis?
According to the Financial Planning Association, of the businesses that suffer a disaster, 40% fail to reopen and 25% that reopen close within a year. Plan ahead!
Disaster may never strike, and you may never need to execute your plan. But if something does happen, a well thought out plan, will help you through the transition, and increase the odds that a temporary business interruption does not become a permanent one
Want help developing answers to these and other business planning questions?
Check out our Business Plan Seminar – December 17 or January 21
Even Optimists are Prepared
I am an optimist. I believe things will work out. However, when it comes to my business I also know that things can go wrong, and planning is not being negative, it is being prepared.
Accidents happen! But even minor mishaps can be major catastrophes for small business owners. Every year, thousands of companies are unprepared for the interruption caused by a minor fire, flood, and burglary or computer meltdown.
Creating, and implementing a Business Continuity Plan as part of your overall business plan ensures your business survives any disaster!
What should your plan contain? - Information Access is # 1
For many small business owners, the computer is the heart and soul of the business. Unfortunately computers crash, virus’ attack, natural disasters occur and every user makes mistakes from time to time.
The consequences can be disastrous. Rebuilding financial information, contact lists, E-mail records or project files can be time-consuming, expensive and sometimes impossible.
Important information should be copied to some type of external media. I used to recommend zip disks, CDs or DVDs, tape back-up or external hard drives. Too often I found business owners diligently copied all their key files and stored the CD’s or external hard drive, right next to their computer. A flood or fire would wipe out both copies. So if you use this technique, be sure you have a plan to take the copies out of the office on a regular basis.
On-line backup provides a simpler, more secure, and less time consuming solution. For a nominal fee, on-line back-up solutions allow you to store information on a secure, encrypted server. The costs vary depending on the amount of data to be stored. One of the most affordable alternatives for small business owners is Mozy.com For just a few dollars a month, you can protect your business.
Not sure if you need to spend the money? Ask yourself these questions: If my computer didn’t turn on tomorrow:
- Would I still have a business?
- Would I lose a significant amount of time, and money rebuilding my data
- Would I know what to do?
Don’t like the answers? Then it is time to explore a back up solution.
Want help developing answers to these and other business planning questions? Check out our Business Plan Seminar – December 17 or January 21
Are You Ready to Write Your Annual Memo?
One of my favorite writers on the Havard Business Blog is Anthony TJan, who wrties a column entitled Upstarts and Titans. His thoughts, suggestions and ideas are often as relevant for the small business owner as they are for the CEO of a multinataional firm.
I thought that was especially true when I read his post entitled Every CEO Should Write an Annual Memo to the Board. He requires each of his clients to write a one page summary of the year that is closing, and plans for the year ahead. The document should include lessons learned, as well as plans and goals for the following year.
I love this idea. Each year I review my business plan, and rewrite large sections of the document to reflect changes in the business, but a one page summary focused on lessons learned is a different twist. I am going to give it a try, because I really believe without learning from mistakes, I will be doomed to repeat them.
So I am getting ready for 2010. Are you?
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BusinessMap Seminar: December 17 or January 21
Seven Weeks and Seven Tips To Be More Productive 2010
Today’s post is by a very special guest: Productivity Expert and All Around Interesting Guy: Robby Slaughter. He writes about the things we can be doing now to create a more productive 2010!
Seven Weeks and Seven Tips
Go look at the calendar. It’s mid November, which means there are a mere seven weeks left in 2009. Now is the time to look forward and prepare to make 2010 your best year yet. The secret to making improvements is planning and enacting change. Here are seven tips for seven weeks to get you started:
