I am reproducing an interesting article I found on BDC.ca
http://www.bdc.ca/en/advice_centre/articles/Pages/10_tips_to_meet_success_in_2011.aspx
Enjoy the reading...
If you’ve ever made a New Year’s resolution that lasted all of one day, you know making positive life changes is tough. For time-pressed entrepreneurs, the challenge of making changes in their business can be equally or even more daunting.
Financial Post columnist Rick Spence has referred to the problem as “entrepreneur inertia” — the tendency of business owners to not follow through on good ideas. Consultants are all too familiar with the phenomenon: they spend long hours with entrepreneur clients fine-tuning a strategic or marketing plan only to find out a few months later that the document has sat on a shelf.
Whether entrepreneurs are any worse than your average mortal is a matter for debate. However, there is no doubt that one way to combat the problem is to start small and build momentum for bigger changes.
Here are 10 tactics you can do right away to set your company up for a more prosperous 2011.
1. Call your banker — Regardless of whether you’re in the market for a loan or not, it’s a good policy to keep in touch with your banker. Build trust and credibility by keeping your banker up to date on developments in the business including realistic short and long-term cash flow projections. That kind of transparency can make all the difference when your business hits a bump in the road and you need some leeway.
2. Develop a cash-flow planner — Using a software tool or a simple spreadsheet, take an hour and record your month-opening bank account balance and all anticipated cash inflows and outflows. Then, each day for 30 days, track your cash as it comes in and goes out. Once you’ve done it for a month, you’re on your way to developing a healthy habit. Your cash-flow planner will help you stay on top of problems and make adjustments, such as delaying discretionary payments.
3. Follow the ABCDs of improving your marketing — BDC marketing consultant Jennifer Galley says her top marketing tip for entrepreneurs is ABCD—Always Be Communicating your Difference. It’s a simple acronym, but critically important to marketing success. A company should consistently express the unique value of its offering as part of every marketing tactic. “In my consulting experience, many companies have a real challenge in understanding and expressing their ABCDs, no matter what industry they're in,” says Galley, who advises clients in Vancouver. “I have also consistently seen that those entrepreneurs who put the time and effort into doing it right generate significant market impact.” So, figure out what your company’s “secret sauce” is and then push it relentlessly.
4. Get started on a tech makeover — Many entrepreneurs find technology to be a costly and confusing pain in the neck. But information and communications technologies can be a key to more efficiency, growth and profits. So figure out how you can make better use of technology in your business by starting with an inventory of your current systems. Then, list problems and opportunities in line with your strategic plan. Before investing, make sure you get some guidance from an independent tech expert on your needs and take the time to request detailed proposals from a number of vendors.
5. Focus on your team — Your most valuable resource is your people and no one is too far down the line to provide meaningful input. One method is to focus your team on the biggest challenge you are facing each week. In your weekly staff meeting, ask everyone for their ideas on how to meet the challenge and what their contribution will be. Create a timeline and make the goals and responsibilities visible, for example on a flipchart in the staff room. Everyone will feel included and will remain focused on the company’s highest priorities.
6. Crown cash as king — Getting cash in the door faster is critical for your firm’s financial health. You should have a policy on payment terms and enforce it diligently on slow pokes. You can also consider rewarding fast-paying customers with a small discount. On the other hand, trusted suppliers can help your cash flow by extending payment terms. But it’s important to be the kind of customer you like to do business with. Protect your relationships with suppliers and your reputation by paying your bills on time.
7. Eliminate your worst customers — The customer is always right or so the old saw goes. In reality, smart entrepreneurs know that problem cases – the last-minute demanders, the constant complainers, the slow payers — often aren’t worth the expense and stress. Other customers may not fit into the segment you’re going after. If you can afford it, free them to patronize (or antagonize) another company and you will liberating yourself and your team up to improve service to your preferred customers while working on getting more just like them.
8. Bury your dead stock — Excess inventory is a drag on your cash. It may be painful, but it’s time to face up to facts and get aggressive in marking down and clearing the stuff out. You’ll feel better when it’s nothing but a memory and some cash in your bank account. Consider offering dead stock at a reduced price in combination with a purchase of a new product as a win-win for you and your customer.
9. Organize a sports day for your employees — There are many ways to encourage employee engagement. One fun idea is to organize a sports day where employees can build team spirit in a non-work environment. Make sure to get workers involved in organizing the event and offer a variety of activities to appeal to different interests and fitness levels including something light and relaxing for those who aren’t into sports. You can wrap things up with a shared meal.
10. Get clear for a new year — Many successful companies make business planning an annual activity. It gives management a chance to work on the business and to re-focus on strategies that deliver long-term growth. If you do not have a business or strategic plan then it is time to create one. Be clear on what your core business is and why customers will choose to buy from you.
Friday, January 21, 2011
Friday, January 7, 2011
Strategic planning: big gains for entrepreneurs
In my role as a Senior Manager Consulting for BDC I meet with many entrepreneurs every week. I am observing that many if not most do not have a formal and documented strategic plan. They are managing their business by the seat of their pants, chasing business opportunities in all directions and going to one crisis to the next. This opportunistic approach to management is often causing them to make errors, poor choices in resources allocations, burning energy and cash as they go.
From time to time entrepreneurs should take a step back and take some time to work «on the business» not just «in the business», and reflect on their priorities, objectives and on the best way to achieve them.
Just as we make new year resolutions in our private lives, business owners would be well advised to take a litle bit of time to reflect on their businesses.
I am reproducing here after an article on the subject of Strategic Planning which I believe is ritht on.
Please contact me if you would like to discuss the subject in more details.
from BDC.ca
http://www.bdc.ca/EN/advice_centre/self_management/Pages/RelatedArticles.aspx?PATH=/EN/advice_centre/articles/Pages/strat_planning.aspx
As the economy heads into recovery, entrepreneurs should be gearing up for growth. That makes it an excellent time to put strategic planning at the top of the agenda.
"Strategic planning means looking at where you want your company to be in the next 3-to-5 years and determining what you need to do to get there," BDC Consulting manager Nyron Drepaul says. "Whether it's buying a competitor, increasing your capital or aiming for higher growth, you need the right strategies, structure, plans and controls in place to optimize the return on your investment."
A common misconception is that strategic planning is only for large companies. But the reality is that most businesses can greatly benefit from the exercise.
"If you're always busy putting out fires, you may feel you have no time for planning," Drepaul says. "But by developing big-picture strategies to guide your day-to-day operations and setting goals, you're no longer flying blind. A long-term plan simply increases your chances of success."
Another reason for entrepreneurs to make strategic planning a priority is that it reduces risk, particularly in periods of economic uncertainty. "As part of the process, you'll be assessing your current situation, resources, strengths and weaknesses, competitors and the business environment. This way, you will be better equipped to make decisions and therefore to minimize risk."
For Drepaul, strategic planning also helps entrepreneurs to shake things up a little. "It's a way to rekindle the entrepreneurial drive that got you started in the first place. For example, you may have started out with a dream of a $10-million business with stores all over the world. But along the way, you got distracted by daily challenges, lost sight of that dream and settled for less than your true potential."
"Strategic planning reignites that passion for what you're doing. If you have a real plan with goals, it's very rewarding to achieve each milestone. That sense of satisfaction builds the momentum you need to push even further."
Drepaul recommends entrepreneurs involve their employees in the strategic planning exercise, particularly in smaller companies. When employees contribute, they take ownership of the plan and help you reach your goals, he says. "This builds enthusiasm in your company and gets everybody on the same page." For example, entrepreneurs can ask employees to brainstorm about a company's strengths and weaknesses. After all, your staff knows your company inside out.
A crucial part of successful strategic planning is to ensure you seek an external, objective point of view. Most small businesses don't have the resources and expertise in-house to guide them through the strategic planning process. "A consultant can give you a fresh perspective on your business, help you envision the future you want and define your long-term goals," Drepaul says. "An expert can also ensure you follow a rigorous plan with clear timelines and assigned responsibilities.
"It's about getting you thinking differently about your company and bringing you closer to achieving your dreams."
At a glance
Strategic planning enables you to:
From time to time entrepreneurs should take a step back and take some time to work «on the business» not just «in the business», and reflect on their priorities, objectives and on the best way to achieve them.
Just as we make new year resolutions in our private lives, business owners would be well advised to take a litle bit of time to reflect on their businesses.
I am reproducing here after an article on the subject of Strategic Planning which I believe is ritht on.
Please contact me if you would like to discuss the subject in more details.
from BDC.ca
http://www.bdc.ca/EN/advice_centre/self_management/Pages/RelatedArticles.aspx?PATH=/EN/advice_centre/articles/Pages/strat_planning.aspx
As the economy heads into recovery, entrepreneurs should be gearing up for growth. That makes it an excellent time to put strategic planning at the top of the agenda.
"Strategic planning means looking at where you want your company to be in the next 3-to-5 years and determining what you need to do to get there," BDC Consulting manager Nyron Drepaul says. "Whether it's buying a competitor, increasing your capital or aiming for higher growth, you need the right strategies, structure, plans and controls in place to optimize the return on your investment."
A common misconception is that strategic planning is only for large companies. But the reality is that most businesses can greatly benefit from the exercise.
"If you're always busy putting out fires, you may feel you have no time for planning," Drepaul says. "But by developing big-picture strategies to guide your day-to-day operations and setting goals, you're no longer flying blind. A long-term plan simply increases your chances of success."
Another reason for entrepreneurs to make strategic planning a priority is that it reduces risk, particularly in periods of economic uncertainty. "As part of the process, you'll be assessing your current situation, resources, strengths and weaknesses, competitors and the business environment. This way, you will be better equipped to make decisions and therefore to minimize risk."
For Drepaul, strategic planning also helps entrepreneurs to shake things up a little. "It's a way to rekindle the entrepreneurial drive that got you started in the first place. For example, you may have started out with a dream of a $10-million business with stores all over the world. But along the way, you got distracted by daily challenges, lost sight of that dream and settled for less than your true potential."
"Strategic planning reignites that passion for what you're doing. If you have a real plan with goals, it's very rewarding to achieve each milestone. That sense of satisfaction builds the momentum you need to push even further."
Drepaul recommends entrepreneurs involve their employees in the strategic planning exercise, particularly in smaller companies. When employees contribute, they take ownership of the plan and help you reach your goals, he says. "This builds enthusiasm in your company and gets everybody on the same page." For example, entrepreneurs can ask employees to brainstorm about a company's strengths and weaknesses. After all, your staff knows your company inside out.
A crucial part of successful strategic planning is to ensure you seek an external, objective point of view. Most small businesses don't have the resources and expertise in-house to guide them through the strategic planning process. "A consultant can give you a fresh perspective on your business, help you envision the future you want and define your long-term goals," Drepaul says. "An expert can also ensure you follow a rigorous plan with clear timelines and assigned responsibilities.
"It's about getting you thinking differently about your company and bringing you closer to achieving your dreams."
At a glance
Strategic planning enables you to:
- Envision your company's future over the next 3 to 5 years
- Define your long-term goals
- Assess your current environment, as well as strengths, weaknesses, opportunities and threats
- Develop strategies and tactics to address any identified problems
- Assign timelines and responsibilities to turn your plan into reality
- Reduce the risk of doing business based on better decisions and achieve your company's potential
Monday, January 3, 2011
Your guide to better sales performance
Following is a copy of an article puplished on http://www.bdc.ca/ to which I collaborated.
Your guide to better sales performance
You’re half-way through the quarter and one of your sales representatives is not delivering. You want to correct the situation but you have nothing on paper setting out the person’s targets. Like many entrepreneurs, you may be making a common error —trying to run a business without a sales plan.
“You can’t manage results. You can only manage the activities that lead to those results,” says André Goyette, Senior Manager, BDC Consulting. “A sales plan is focused on how you’re going to specifically reach your sales goals, whether it’s by acquiring new business or by growing existing business.”
“A sales plan is a practical tool that you can use to proactively manage your sales team and document what is expected of them,” he says. “If it’s not written down, it’s not going to happen.”
Goyette provides these pointers to put together a winning sales plan:
•Make sure your plan is simple, concise and easily revised. Keep in mind that it’s a document you need to revisit on a regular basis in order to track ongoing performance.
•Stick to what is measurable, so that you can easily monitor progress, i.e. number of calls, prospects, account reviews, client referrals and leads.
•Along with company-wide sales strategy, be sure that every sales team member has an individual sales plan. Consider key factors such as the nature of the territory and sales representative experience. Adjust goals accordingly.
•Ask sales team members to devise their individual sales plans; this ensures that they are accountable for their commitments and helps them set realistic and attainable goals.
•Ensure each sales team member develops specific tactics; i.e. “I will hold 12 seminars in order to attract 136 potential clients.”
Or, “I will send 35 letters a month to existing clients to offer them our new product.”
•Ensure your sales people have “stretch” goals that challenge them personally and keep your business growing.
•The plan should have the right balance of “hunting”, which is acquiring new business, and “farming”, which is developing existing business with current clients. “Farming” can be a more cost-effective use of your sales team’s time because the client relationship has already been established.
•Don’t forget the skills development component of your plan. You should document what skills your sales people need to improve in order to bring your company more business. For example, a team member might need stronger presentation or negotiation skills. They can then seek out seminars or other learning opportunities to develop those skills.
•Take advantage of sales plan templates on the web to get you started.
Your guide to better sales performance
You’re half-way through the quarter and one of your sales representatives is not delivering. You want to correct the situation but you have nothing on paper setting out the person’s targets. Like many entrepreneurs, you may be making a common error —trying to run a business without a sales plan.
“You can’t manage results. You can only manage the activities that lead to those results,” says André Goyette, Senior Manager, BDC Consulting. “A sales plan is focused on how you’re going to specifically reach your sales goals, whether it’s by acquiring new business or by growing existing business.”
“A sales plan is a practical tool that you can use to proactively manage your sales team and document what is expected of them,” he says. “If it’s not written down, it’s not going to happen.”
Goyette provides these pointers to put together a winning sales plan:
•Make sure your plan is simple, concise and easily revised. Keep in mind that it’s a document you need to revisit on a regular basis in order to track ongoing performance.
•Stick to what is measurable, so that you can easily monitor progress, i.e. number of calls, prospects, account reviews, client referrals and leads.
•Along with company-wide sales strategy, be sure that every sales team member has an individual sales plan. Consider key factors such as the nature of the territory and sales representative experience. Adjust goals accordingly.
•Ask sales team members to devise their individual sales plans; this ensures that they are accountable for their commitments and helps them set realistic and attainable goals.
•Ensure each sales team member develops specific tactics; i.e. “I will hold 12 seminars in order to attract 136 potential clients.”
Or, “I will send 35 letters a month to existing clients to offer them our new product.”
•Ensure your sales people have “stretch” goals that challenge them personally and keep your business growing.
•The plan should have the right balance of “hunting”, which is acquiring new business, and “farming”, which is developing existing business with current clients. “Farming” can be a more cost-effective use of your sales team’s time because the client relationship has already been established.
•Don’t forget the skills development component of your plan. You should document what skills your sales people need to improve in order to bring your company more business. For example, a team member might need stronger presentation or negotiation skills. They can then seek out seminars or other learning opportunities to develop those skills.
•Take advantage of sales plan templates on the web to get you started.
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