Intro to Biz Planning – Aug 11
I’m going to be teaching one of my favorite seminars soon: Ten Mistakes Business Owners Make. This FREE course will give you the skills that you need to get started on creating a business plan.
In this lively ninety minute workshop, you will learn the elements of a good business plan, as well as tips and strategies on how to get started, and make planning an integral part of your business operation.
The next sessions is Aug 11 at 8:30 at the offices of Trustpointe – 6666 E. 75th Street, Suite 150, Indianapolis, IN 46250.
There is no fee to attend, but reservations are required. You can register by filling out the form below.
And as an added bonus when you register, you are enrolled in the free eCoulrse:How to Write a Business Plan in 10 Weeks
To take advantage of one or both of the FREE offers simply fill out the form below.
Hope to see you there!
The Challenge – Update
A few days ago we set a goal at Roundpeg. We want to attrack 1,000 fans to our Fan page by August 1. To acheive our goal, we are testing a variety of techniques, including creating a custom welcome page, sending invitations to friends and family and posting updates on twitter.
Like any marketing campaign, it would be crazy to wait till it was over to see if it was working, so every day, we check our stats to see if what we are doing is working. Then we can adjust the strategy if we need to.
So how are we doing? See for yourself:
We had a nice spike when we kicked off the contest but our traffic has leveled off since then. Now we need to look at some alternatives but with three weeks to go to the deadline, there is still time to make effective corrective action.
The same approach will work with your marketing campaigns:
- Set a Goal
- Develop a Strategy
- Execute the Strategy
- Measure the Results
- Adjusts and Start Over!
Want to see how this turns out? Be sure to become a fan, and watch our page for updates!
Can You Pivot?
When faced with changing market conditions, aggressive competitors or superior competitors, what do you do? Do you continue in the same direction or can you pivot? Change your strategy, maybe even your core product offering?
In a recent post, Seth Godin makes a compelling argument for why Kindle needs to pivot, changing from a premium product model to a low cost leader in the face of overwhelming competition from iPad. He says:
The only way to get authors and publishers to embrace this device is to sell 20,000,000 of them. You either become the best and only platform for consuming books worth buying or you fail. And the only way to create that footprint in the face of an iPad is to make it so cheap to buy and use it’s irresistible.
Small business owners often get stuck, married to a concept because it was where they started, but time and time again we see successful businesses pivoting. For example from a presentation by Kristian Andersen, I learned:
- Flickr started out as a game
- YouTube was a dating site
- Paypal was going to beam money to Palm Pilots
What about you? Are you stuck? Has the market moved away from you, like the shift from ice blocks to refrigerators. or is there simply better competition?
At roundpeg, I started out with the idea of training managers to build successful teams to implement effective strategies. There was no market, so I pivoted, and took my planning tools to small business owners. If I hadn’t pivoted, I would be stuck at a desk job somewhere. I am glad I can pivot!
David Castor Looks for Proof
I really enjoy being a part of the board of the Rainmakers, Incubators hub. Every month, we have a terrific speaker, someone, I don’t have a chance to hear at other meetings. This month, it was David Castor. Here is a brief summary of his remarks,
It is probably no surprise that Attorney David Castor looks for ” proof” when valuates new business ideas. While not the evidence you might take into a courtroom, David looks for ”proof” you thought through the details of what it would take to turn the idea into a business.
He shared the three elements of “proof” in his presentation to Incubators on Tuesday, April 6.
- Proof of Concept – It is a good idea, but can you build it or execute the service promise?
- Proof of Scale – As demand increases can you scale the business? Are their built-in capacity constraints which will limit growth?
- Proof of Commercialization – Is there revenue model? Will anyone besides your mother actually buy it, and can you derive enough profit to create a viable business
Answering those three challenges will put a new business owner on the path to a successful launch.
If you missed David’s presentation, don’t worry, we have a number of other excellent speakers lined up to talk to Incubators the First Tuesday of Each Month.
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?
