from BDC.ca
In a Canadian labour market with shrinking resources, many young people today are in an enviable position when it comes to choosing an employer. They can afford to be highly selective and tend not to stay with companies for the long haul.
Meeting the demands of this new generation of employees is now at the top of the agenda for businesses. You'll have to motivate employees to stay loyal to your firm with more satisfying jobs, ongoing training and anything else that makes you stand out from your competitors.
Yet despite the popular belief that wooing employees is a costly venture for businesses, the reality is that employee motivation can involve little or no cost.
Make the job motivating
Pressed for time, few entrepreneurs prepare written job descriptions. However, experts agree that improvising is not a winning strategy. The more accurate and realistic you are about specifications and job requirements for the position, the more likely that your people will feel motivated to do a good job. It's important to:
-Get your employees involved in writing their job descriptions, so they feel they have genuine input
-Put the emphasis on active, engaging verbs such as "analyzes", "sets up" or "operates"
-Build in clear goals, so employees can see visible progress and results and how they can contribute to the big picture
-Ensure that the work is challenging enough for the employee: don't hire somebody with too many skills for the job
-Give your employees enough leeway to be independent and assume stretch assignments, which encourages personal and professional development
Compensate your employees based on their performance
Give employees feedback
Feedback allows your employees to evolve, improve their skills and do more for your company. And that's why it's important to assess your employees' performance regularly and fairly. For starters, make sure they understand why performance feedback is necessary. Frank discussions will help obtain the best possible results, it's important to show empathy and flexibility.
-Be open to suggestions that could improve the efficiency of your company's operations. Ensure that you:
-Be systematic about performance evaluation for every employee, no matter what level in your company
-Link the performance evaluation to your compensation program so employees take it seriously
-Give honest feedback often - both praise and constructive comments
First, review positive aspects; then, cover areas for improvement; help employees find and implement solutions
-Encourage your employees to evaluate themselves; this gives you an accurate picture of how they view their performance and it can also reveal where improvement is needed
-Establish realistic performance objectives for your employees and make sure they understand and agree
-Rely on simple, ongoing feedback techniques, such as:
-Personal congratulations for a job well-done
-Personal notes from managers to mark a good performance
-Recognizing employee performance and promotions in internal
newsletters
-Showing your team confidence, so that they feel motivated to give
more
Manage your top performers
Your star performers may be a little more demanding than your average performers. They tend to leave companies if they feel they're not getting enough attention. Factor these points in:
-Give your top performers some leeway. Avoid micromanaging and give them the room to do their best
-Get their input often. If you don't seek their ideas, they'll stop giving them to you
-Reward excellent performance with extra perks
-Point out where they need to improve; you want to encourage even your best performers to strive harder
-Praise top performers when they excel. Don't assume that they know they're doing a good job
Give employees innovative perks
In today's demanding business world, many employees are looking for perks beyond monetary compensation, stock options and profit-sharing.
-Consider options such as flexible hours
-Give employees "downtime" for work well done. Employees tend to want perks such as more time-off rather than more money
-Allow employees to work from home
Reinforce team spirit
Motivated employees, who all sing from the same song sheet, contribute their best. Keep these ideas in mind in order to reinforce team spirit.
-Encourage people to interact outside the office environment, i.e., dinners or sports events
-Put employees at ease by holding informal gatherings at your home
-Assign a buddy for new employees to help them during orientation
-Avoid creating hierarchy by assigning perks such as more office space and free parking
Ultimately, your employee motivation strategies can be built into a sound human resources plan. To help you develop that plan, you can contact me.
Monday, April 26, 2010
Thursday, April 8, 2010
Living with a strong dollar
from www.BDC.CA
The rise of the Canadian dollar has had a serious impact on businesses exporting to the U.S. and international markets. Faced with reduced returns from U.S. sales, entrepreneurs may wonder how to protect themselves from the effects of further currency fluctuations.
In a nutshell, the way to reduce the risks involved with exporting is to be prepared for change. Success in exporting begins with developing a sound export plan, setting your prices wisely, improving overall productivity and taking advantage of various tools to manage exchange risk.
Have a solid export plan
No matter what the value of the dollar is, you should have a thorough exporting strategy in place to export profitably. Developing or updating your export plan can help you better understand your markets and your competition, and determine exactly what your goals are and how you will reach them.
Here are some questions that may help you deal with currency fluctuations:
1. Is there another market for your products? Exploring new markets where your product is more competitive can be a sound strategy to compensate for a volatile Canadian dollar.
2. Can you consolidate local markets? Are your products available nationally? You may want to consider all provinces in Canada.
3. Can you change or update your line of products to be more competitive in the export market? You may be able to add a product or to customize the sales and marketing of an existing product to appeal to a new market or demographic. Diversifying your products may help you gain more stability.
Price wisely
Your export plan can also help you price your products wisely. To protect yourself from current fluctuations, adopt a strategy that takes exchange rates into account. While your export prices must take into account the demands of the market, they should also be forward-looking. In general, export prices should be based on your cost of goods as well as costs related to tariffs, custom fees, value-added taxes, shipping and insurance. For these costs, you will also need to factor in variations in the value of the dollar.
Keep in mind that if you're pricing higher, this may be a disadvantage if you want to be competitive. However, a sound strategy to reduce operating costs can help keep your prices down. That's why maximizing your productivity is so important.
Improve your overall productivity
Working more efficiently translates into cutting costs or increasing your revenues, which can give you the competitive edge you need to gain a greater market share. This can include:
• Reviewing your production processes to see if each step helps create value for your clients and meets your goals
• Eliminating waste, including delays at customs, unnecessary transportation in your distribution process, defects and errors, etc.
• Outsourcing non-core aspects of your business to countries or firms that can do the work more efficiently and more cheaply. This can include having components manufactured abroad, or having an external firm handle logistics, customs, distribution, etc.
After you have analysed your opportunities, decide on a course of action. To keep your costs down, you can implement one project at a time. For example, if you're expanding to new markets and you need new equipment to remain competitive, you can begin by renting, and make plans to purchase upgraded equipment later.
Use exchange-risk management strategies
Foreign-exchange risk management tools (or hedging tools) can also help protect you from dollar fluctuations that can affect your earnings and value. Keep in mind, exchange contracts such as futures and options are complex products and you should talk to your banker and accountant about the most commonly used strategies for managing foreign-exchange risk. While there will always be some related costs to using hedging tools, these strategies can help you protect your profit margin. The following may help reduce your risks:
• Currency forward contracts allow you to lock a price at which your company is obligated to buy or sell a currency at your specified date. Forwards are non-transferable and not as flexible. You'll also need a line of credit for currency transactions. This will allow you to protect your revenues, profit margins or expenses at a fixed price.
• Currency futures contracts allow you to specify a price at which a given currency will be bought or sold at a future date. Your company can close out these contracts early if it's to your advantage; giving you more flexibility. You will also need to maintain a margin/cash deposit at all times to compensate for the credit risk.
• Currency options give you the right, but not the obligation, to buy or sell currency at a specified exchange rate during a specific period of time. Regardless of whether or not you exercise the option, there is a cost.
If you are exporting to the U.S., you can also open a U.S. dollar account with your chartered bank, or establish a banking relationship with a U.S.-based bank. This may also make it easier for U.S. based firms to do business with you. There may, however, be tax implications, so it is best to review your options with your accountant or banker.
Get help from external consultants
Consultants who have an objective point of view are in a better position to help you assess the weaknesses and strengths of your export initiative.
Contact me if you are interested in additional informations.
The rise of the Canadian dollar has had a serious impact on businesses exporting to the U.S. and international markets. Faced with reduced returns from U.S. sales, entrepreneurs may wonder how to protect themselves from the effects of further currency fluctuations.
In a nutshell, the way to reduce the risks involved with exporting is to be prepared for change. Success in exporting begins with developing a sound export plan, setting your prices wisely, improving overall productivity and taking advantage of various tools to manage exchange risk.
Have a solid export plan
No matter what the value of the dollar is, you should have a thorough exporting strategy in place to export profitably. Developing or updating your export plan can help you better understand your markets and your competition, and determine exactly what your goals are and how you will reach them.
Here are some questions that may help you deal with currency fluctuations:
1. Is there another market for your products? Exploring new markets where your product is more competitive can be a sound strategy to compensate for a volatile Canadian dollar.
2. Can you consolidate local markets? Are your products available nationally? You may want to consider all provinces in Canada.
3. Can you change or update your line of products to be more competitive in the export market? You may be able to add a product or to customize the sales and marketing of an existing product to appeal to a new market or demographic. Diversifying your products may help you gain more stability.
Price wisely
Your export plan can also help you price your products wisely. To protect yourself from current fluctuations, adopt a strategy that takes exchange rates into account. While your export prices must take into account the demands of the market, they should also be forward-looking. In general, export prices should be based on your cost of goods as well as costs related to tariffs, custom fees, value-added taxes, shipping and insurance. For these costs, you will also need to factor in variations in the value of the dollar.
Keep in mind that if you're pricing higher, this may be a disadvantage if you want to be competitive. However, a sound strategy to reduce operating costs can help keep your prices down. That's why maximizing your productivity is so important.
Improve your overall productivity
Working more efficiently translates into cutting costs or increasing your revenues, which can give you the competitive edge you need to gain a greater market share. This can include:
• Reviewing your production processes to see if each step helps create value for your clients and meets your goals
• Eliminating waste, including delays at customs, unnecessary transportation in your distribution process, defects and errors, etc.
• Outsourcing non-core aspects of your business to countries or firms that can do the work more efficiently and more cheaply. This can include having components manufactured abroad, or having an external firm handle logistics, customs, distribution, etc.
After you have analysed your opportunities, decide on a course of action. To keep your costs down, you can implement one project at a time. For example, if you're expanding to new markets and you need new equipment to remain competitive, you can begin by renting, and make plans to purchase upgraded equipment later.
Use exchange-risk management strategies
Foreign-exchange risk management tools (or hedging tools) can also help protect you from dollar fluctuations that can affect your earnings and value. Keep in mind, exchange contracts such as futures and options are complex products and you should talk to your banker and accountant about the most commonly used strategies for managing foreign-exchange risk. While there will always be some related costs to using hedging tools, these strategies can help you protect your profit margin. The following may help reduce your risks:
• Currency forward contracts allow you to lock a price at which your company is obligated to buy or sell a currency at your specified date. Forwards are non-transferable and not as flexible. You'll also need a line of credit for currency transactions. This will allow you to protect your revenues, profit margins or expenses at a fixed price.
• Currency futures contracts allow you to specify a price at which a given currency will be bought or sold at a future date. Your company can close out these contracts early if it's to your advantage; giving you more flexibility. You will also need to maintain a margin/cash deposit at all times to compensate for the credit risk.
• Currency options give you the right, but not the obligation, to buy or sell currency at a specified exchange rate during a specific period of time. Regardless of whether or not you exercise the option, there is a cost.
If you are exporting to the U.S., you can also open a U.S. dollar account with your chartered bank, or establish a banking relationship with a U.S.-based bank. This may also make it easier for U.S. based firms to do business with you. There may, however, be tax implications, so it is best to review your options with your accountant or banker.
Get help from external consultants
Consultants who have an objective point of view are in a better position to help you assess the weaknesses and strengths of your export initiative.
Contact me if you are interested in additional informations.
Monday, March 15, 2010
Urgence d'agir équité salariale - Pay equity, urgency to Act Now
Il y a urgence d’agir en
matière d’équité salariale
au Québec
Pay Equity Law in Quebec:
The Urgency to Act Now
Pour toutes les entreprises de 10 employés ou plus, le compte à rebours a commencé. En vertu de la Loi sur l’équité salariale, les employeurs qui comptent au moins 10 employés ont jusqu’au 31 décembre 2010 pour établir l’équité salariale et déterminer quels rajustements à la rémunération sont requis.
Au Québec, 65 844 entreprises sont assujetties à cette loi et on constate que moins de la moitié d’entre elles ont mis en œuvre un programme d’équité salariale. De plus, la Loi dicte des exigences précises sur la façon de déployer et de maintenir un programme d’équité salariale.
Les entreprises qui ne s’y conforment pas pourraient en subir de graves conséquences, dont une possible enquête de la « Commission de l’équité salariale », des amendes, des pénalités et même, devoir payer des rajustements rétroactifs.
Pour mettre en œuvre un programme d’équité salariale, vous devez d’abord déterminer toutes les catégories d’emploi au sein de votre entreprise, comme les catégories d’emploi à prédominance féminine et les catégories d’emploi à prédominance masculine, afin de les comparer et de redresser les écarts de rémunération.
Il est essentiel de bien déterminer la représentation des deux sexes pour chaque catégorie d'emploi, conformément aux critères définis dans le paragraphe 55 de la Loi.
Si vous n’avez pas encore mis en place un programme d’équité salariale et que vous avez besoin d’assistance pour le faire, la Banque de développement du Canada (BDC) dispose d’un réseau de consultants qui peuvent vous aider. Je serais heureux de vous conseiller en fonction de votre situation particulière. N’hésitez pas à me contacter.
__________________________________________________________________________
For all companies that have 10 employees or more, the countdown has started. Under the Pay Equity Act, employers with 10 or more employees have until December 31, 2010 to achieve pay equity and determine what adjustments in compensation are required.
In the province of Quebec, a total of 65,844 companies are subject to this law and it has been reported that fewer than half have implemented a pay equity plan. Furthermore, the law dictates specific requirements as to how to implement and maintain a pay equity program.
Failing to do so can lead to serious consequences, including a potential inquiry by the Commission de l’équité salariale, fines and penalties, and imposed retroactive pay adjustments.
When implementing pay equity you must first identify all the job classes within your business, such as predominantly female and predominantly male job classes, in order to compare them and then redress differences in compensation.
It is critical that you ensure that the gender representation for each class has been determined properly, in compliance with the criteria set forth under section 55 of the Act.
If you have not already implemented a pay equity program and require some assistance to do so, the Business Development Bank of Canada (BDC) has a network of consultants who can help you.
matière d’équité salariale
au Québec
Pay Equity Law in Quebec:
The Urgency to Act Now
Pour toutes les entreprises de 10 employés ou plus, le compte à rebours a commencé. En vertu de la Loi sur l’équité salariale, les employeurs qui comptent au moins 10 employés ont jusqu’au 31 décembre 2010 pour établir l’équité salariale et déterminer quels rajustements à la rémunération sont requis.
Au Québec, 65 844 entreprises sont assujetties à cette loi et on constate que moins de la moitié d’entre elles ont mis en œuvre un programme d’équité salariale. De plus, la Loi dicte des exigences précises sur la façon de déployer et de maintenir un programme d’équité salariale.
Les entreprises qui ne s’y conforment pas pourraient en subir de graves conséquences, dont une possible enquête de la « Commission de l’équité salariale », des amendes, des pénalités et même, devoir payer des rajustements rétroactifs.
Pour mettre en œuvre un programme d’équité salariale, vous devez d’abord déterminer toutes les catégories d’emploi au sein de votre entreprise, comme les catégories d’emploi à prédominance féminine et les catégories d’emploi à prédominance masculine, afin de les comparer et de redresser les écarts de rémunération.
Il est essentiel de bien déterminer la représentation des deux sexes pour chaque catégorie d'emploi, conformément aux critères définis dans le paragraphe 55 de la Loi.
Si vous n’avez pas encore mis en place un programme d’équité salariale et que vous avez besoin d’assistance pour le faire, la Banque de développement du Canada (BDC) dispose d’un réseau de consultants qui peuvent vous aider. Je serais heureux de vous conseiller en fonction de votre situation particulière. N’hésitez pas à me contacter.
__________________________________________________________________________
For all companies that have 10 employees or more, the countdown has started. Under the Pay Equity Act, employers with 10 or more employees have until December 31, 2010 to achieve pay equity and determine what adjustments in compensation are required.
In the province of Quebec, a total of 65,844 companies are subject to this law and it has been reported that fewer than half have implemented a pay equity plan. Furthermore, the law dictates specific requirements as to how to implement and maintain a pay equity program.
Failing to do so can lead to serious consequences, including a potential inquiry by the Commission de l’équité salariale, fines and penalties, and imposed retroactive pay adjustments.
When implementing pay equity you must first identify all the job classes within your business, such as predominantly female and predominantly male job classes, in order to compare them and then redress differences in compensation.
It is critical that you ensure that the gender representation for each class has been determined properly, in compliance with the criteria set forth under section 55 of the Act.
If you have not already implemented a pay equity program and require some assistance to do so, the Business Development Bank of Canada (BDC) has a network of consultants who can help you.
Thursday, February 25, 2010
why you should pull together an effective business plan
from BDC.ca
If your business is all in your head, it's hard to convince lenders, investors and shareholders that you have a credible company and that you'll use their funding well. And that's precisely where a business plan comes in. This highly recognized management tool is basically a written document that describes who you are, what you plan to achieve, how you plan to overcome the risks involved and provide the returns anticipated. Often people think of business plans are limited to starting up new companies or applying for business loans. However, they are also essential to running a business with a clear, well-documented plan.
Make it thorough but keep it simple
Many entrepreneurs may see putting a business plan together as a daunting task involving hundreds of pages. However, in reality, it should be a concise and structured document that gives readers everything they need to assess your company's project. There's no one guaranteed formula for writing an effective business plan. However, in general you have to show that you're committed to your venture and that you have the expertise, skills and self-confidence necessary to make it all happen.
Here's the core content that you should consider.
Your business proposal. Include a description of exactly what you're proposing. Ask yourself: who your customer is, what business are you in exactly, what do you sell, and what are your plans for growth?
Your unique selling point. Address how your goods or services will appeal to customers. How will your company or product/service make a difference in the lives of your customers?
Market analysis. Make sure you show your lender that you've done your homework. Basically, your market research helps you understand your customer needs so that you can offer a product or service that precisely fits those needs. You'll need to provide information such as your target market, customer demographics, competition and distribution methods.
Key competitive information. Provide information on competitor weaknesses and strengths and show how you intend to improve on what they're doing.
Organizational structure. Use organization charts to clearly spell out the roles of key management people and the proposed size of your organization.
HR requirements. You should include information on how you plan to recruit and maintain your employees or handle outsourced work.
Premises and capital goods. Do an assessment of the company's needs with regard to premises and capital goods (such as machinery, technological equipment).
Key financial data. Be sure to modify your information depending on your target audience. For example, your bank will be interested in how you intend to repay the loan or overdraft, what you intend to do with the money and how it will help your business grow. Potential investors will also want to see the expected return and sources of funding, while shareholders are looking for the prospect of the share price and what dividend they can expect on their shares. Generally, lenders, shareholders and investors want facts and figures that back up what you say.
Show your personal and business net worth (assets minus liabilities) so the lender can judge your ability to repay your debt
A banker will also look at your past credit history to gauge your reliability. Be sure that you know what credit agencies have on file about you or your company
Include your assets, such as collateral to secure a loan. Bankers invariably ask for some investment on your part as proof of commitment. (This investment may have been raised by you privately or through family and friends). The rule of thumb is that money attracts money; the more backers you have, the easier it is to attract new ones
Be sure you include your cash flow forecast, which is the amount of cash needed to run your business: technology, inventory, equipment, human resources, etc.
Present financial projections for at least 2 years and do an analysis of market size and market potential
Show implementation details or exactly what will make all of this happen. You need to assign clear responsibilities, set real dates and realistic budgets. Include your financial control systems, such as stock planning and managing debtors and creditors
Legal structure. Address issues such as taxes, liability concerns, information on proprietorships, partnerships, limited or incorporated companies. If you're buying an existing business, be sure to clarify buy-and-sell agreements. Keep in mind that you should have a lawyer look over all contracts and legal issues.
An executive summary. It helps to write this last; a page or two of highlights is sufficient. Be sure to clarify whether this is a new business venture, an expansion of an existing business or the purchase of a new business.
You should also include:
The type of business activity
Your unique selling point
The market to be served
The main objectives of your company
Management background
Project timeframes involved
Avoid these pitfalls
Being overly ambitious – you should be able to justify any assumptions or projections
Masking financial difficulties: inform your lender if your sales fluctuate, for example, and you may prefer a flexible payment schedule. A transparent business plan is one of your best assets in gaining the trust of bankers and investors, whether they are your associates or people outside the company
Providing inadequate information on the management team, flawed marketing plans, unrealistic forecasts or incomplete presentations
BDC Business plan templates let you prepare a professional business plan - a necessity when seeking financing for your project.http://www.bdc.ca/en/business_tools/business_plan/default.htm
If your business is all in your head, it's hard to convince lenders, investors and shareholders that you have a credible company and that you'll use their funding well. And that's precisely where a business plan comes in. This highly recognized management tool is basically a written document that describes who you are, what you plan to achieve, how you plan to overcome the risks involved and provide the returns anticipated. Often people think of business plans are limited to starting up new companies or applying for business loans. However, they are also essential to running a business with a clear, well-documented plan.
Make it thorough but keep it simple
Many entrepreneurs may see putting a business plan together as a daunting task involving hundreds of pages. However, in reality, it should be a concise and structured document that gives readers everything they need to assess your company's project. There's no one guaranteed formula for writing an effective business plan. However, in general you have to show that you're committed to your venture and that you have the expertise, skills and self-confidence necessary to make it all happen.
Here's the core content that you should consider.
Your business proposal. Include a description of exactly what you're proposing. Ask yourself: who your customer is, what business are you in exactly, what do you sell, and what are your plans for growth?
Your unique selling point. Address how your goods or services will appeal to customers. How will your company or product/service make a difference in the lives of your customers?
Market analysis. Make sure you show your lender that you've done your homework. Basically, your market research helps you understand your customer needs so that you can offer a product or service that precisely fits those needs. You'll need to provide information such as your target market, customer demographics, competition and distribution methods.
Key competitive information. Provide information on competitor weaknesses and strengths and show how you intend to improve on what they're doing.
Organizational structure. Use organization charts to clearly spell out the roles of key management people and the proposed size of your organization.
HR requirements. You should include information on how you plan to recruit and maintain your employees or handle outsourced work.
Premises and capital goods. Do an assessment of the company's needs with regard to premises and capital goods (such as machinery, technological equipment).
Key financial data. Be sure to modify your information depending on your target audience. For example, your bank will be interested in how you intend to repay the loan or overdraft, what you intend to do with the money and how it will help your business grow. Potential investors will also want to see the expected return and sources of funding, while shareholders are looking for the prospect of the share price and what dividend they can expect on their shares. Generally, lenders, shareholders and investors want facts and figures that back up what you say.
Show your personal and business net worth (assets minus liabilities) so the lender can judge your ability to repay your debt
A banker will also look at your past credit history to gauge your reliability. Be sure that you know what credit agencies have on file about you or your company
Include your assets, such as collateral to secure a loan. Bankers invariably ask for some investment on your part as proof of commitment. (This investment may have been raised by you privately or through family and friends). The rule of thumb is that money attracts money; the more backers you have, the easier it is to attract new ones
Be sure you include your cash flow forecast, which is the amount of cash needed to run your business: technology, inventory, equipment, human resources, etc.
Present financial projections for at least 2 years and do an analysis of market size and market potential
Show implementation details or exactly what will make all of this happen. You need to assign clear responsibilities, set real dates and realistic budgets. Include your financial control systems, such as stock planning and managing debtors and creditors
Legal structure. Address issues such as taxes, liability concerns, information on proprietorships, partnerships, limited or incorporated companies. If you're buying an existing business, be sure to clarify buy-and-sell agreements. Keep in mind that you should have a lawyer look over all contracts and legal issues.
An executive summary. It helps to write this last; a page or two of highlights is sufficient. Be sure to clarify whether this is a new business venture, an expansion of an existing business or the purchase of a new business.
You should also include:
The type of business activity
Your unique selling point
The market to be served
The main objectives of your company
Management background
Project timeframes involved
Avoid these pitfalls
Being overly ambitious – you should be able to justify any assumptions or projections
Masking financial difficulties: inform your lender if your sales fluctuate, for example, and you may prefer a flexible payment schedule. A transparent business plan is one of your best assets in gaining the trust of bankers and investors, whether they are your associates or people outside the company
Providing inadequate information on the management team, flawed marketing plans, unrealistic forecasts or incomplete presentations
BDC Business plan templates let you prepare a professional business plan - a necessity when seeking financing for your project.http://www.bdc.ca/en/business_tools/business_plan/default.htm
Thursday, January 21, 2010
A 5-step, no-nonsense marketing plan
The following article from BDC (business Developpment Bank of Canada)is right on.
A 5-step, no-nonsense marketing plan
Doing business without a marketing plan is like driving without a map. You may get to your destination – eventually – but you risk making time-consuming and costly errors along the way. For example, you might be assuming there's demand for your product when there isn't. Your services might be priced too low. Or you could be venturing into a market that is impenetrable because of regulatory restrictions.
Marketing plan = confidence
The only way to start a business venture with confidence is to develop a good marketing plan backed up with facts and research. It's a document that clearly shows how you'll attract potential customers to your product or service and persuade them to buy. As part of doing your homework thoroughly, the marketing plan builds confidence with financial institutions by showing you have a good chance of making a success of your business.
Contrary to popular belief, the marketing plan is not a one-time effort destined to sit in a binder on your desk. On the contrary, it should be updated on a regular basis to reflect the changing needs of your business and customers.
There are many different models for marketing plans. But here are the
5 essential steps.
5 steps to creating a successful marketing plan
1. Do a situation analysis
Many companies start with a SWOT analysis, looking at your company's strengths, weaknesses, opportunities and threats. An integral part of this is to clearly identify your competitors, understand exactly how they're operating and know their strengths and weaknesses.
Strengths are any competitive advantage, skill, expertise, proficiency, talent, or factor that strengthens your company's position in the marketplace and can't be easily copied. Examples are a well-trained sales team, low staff turnover, high consumer retention or low production costs due to technology.
Weaknesses are the factors that affect your company's ability to independently achieve its objectives. Examples are unreliable delivery, outdated production tools, insufficient marketing efforts or a lack of planning.
Opportunities are ways for your business to grow and be more profitable, such as seeking new markets, managing technological changes or addressing new consumer trends. You need to look at how your company's key skills can be used to take advantage of these opportunities.
Threats are barriers to entry in your primary markets, such as competitor's actions, labour shortage, legislative hurdles, or detrimental economic/political developments.
2. Develop a target market profile
Demographic portrait
Here you want to demonstrate you know your customers inside and out, including their expectations and their whims. Your profile should include basic demographics that paint a clear portrait of your clients. For example, you can look at factors such as age, sex, profession or career, income level, educational level and geographic location.
Estimated demand
You'll want to provide research that shows the estimated demand for your product or service and expected growth rate. This builds confidence with financial institutions that your business has growth potential.
Purchase motivation
Another important aspect is understanding exactly what motivates customers to buy. For example are your clients looking for savings, a way to simplify their lives or just shopping for pleasure? Ask yourself, why would they buy your product or service? In the same vein, you may want to know what keeps customers away from your competitors' products or services. Are they too costly? Do they lack something unique? This information is invaluable in developing a product or service that outshines the competition.
3. Set clear marketing objectives and targets
Here you describe the desired outcome of your market plan with attainable and realistic objectives, targets and a clear time frame.
The most common approach is to use marketing metrics. For example, your market objectives could look at total market share and segments, the total number of customers and percentage retained, the rate of purchases and the size/volume of purchases.
4. Determine your marketing strategy
Once you've determined your objectives and targets, it's time to look at how you'll promote or market your business to prospective customers. Typical strategies should cover the Four Ps of marketing. (Product, Price, Place and Promotion).
Your choice of marketing vehicles will be governed by your target market profile. For example, you need to understand how different vehicles reach different audiences. Don't make assumptions that you have to spend money on costly advertising. If you have a niche audience, for example, you can take advantage of low-cost marketing strategies such as e-mailing.
Generally speaking, the most costly options are advertising, sales promotions and public relations
Referrals and networking represent lower cost ways to reach customers
E-marketing is a powerful strategy because of its low-cost and targeted reach potential.
5. Do your financials
A marketing plan without financials has little clout. Your financials can also be included in your general business plan.
Important aspects to include here are:
A budget and forecast
A budget and sales forecast needn't be complex. In fact, it's wise to keep it simple. It may help to start with these basic questions:
How much do you project that you will sell?
What will you be charging for your products or services?
What will it cost to produce your products or deliver services?
What will be your basic operating expenses? Be sure to include recruitment and salaries here
How much financing do you need to run your business?
Answering these questions will help you determine your projected income and your expenses
A break-even analysis lets you show exactly what you need to sell to cover the costs of doing business. If you can attain and surpass your break-even point and easily bring in more than the amount of sales revenue you'll need to meet your expenses, you stand a good chance of making profits.
A 5-step, no-nonsense marketing plan
Doing business without a marketing plan is like driving without a map. You may get to your destination – eventually – but you risk making time-consuming and costly errors along the way. For example, you might be assuming there's demand for your product when there isn't. Your services might be priced too low. Or you could be venturing into a market that is impenetrable because of regulatory restrictions.
Marketing plan = confidence
The only way to start a business venture with confidence is to develop a good marketing plan backed up with facts and research. It's a document that clearly shows how you'll attract potential customers to your product or service and persuade them to buy. As part of doing your homework thoroughly, the marketing plan builds confidence with financial institutions by showing you have a good chance of making a success of your business.
Contrary to popular belief, the marketing plan is not a one-time effort destined to sit in a binder on your desk. On the contrary, it should be updated on a regular basis to reflect the changing needs of your business and customers.
There are many different models for marketing plans. But here are the
5 essential steps.
5 steps to creating a successful marketing plan
1. Do a situation analysis
Many companies start with a SWOT analysis, looking at your company's strengths, weaknesses, opportunities and threats. An integral part of this is to clearly identify your competitors, understand exactly how they're operating and know their strengths and weaknesses.
Strengths are any competitive advantage, skill, expertise, proficiency, talent, or factor that strengthens your company's position in the marketplace and can't be easily copied. Examples are a well-trained sales team, low staff turnover, high consumer retention or low production costs due to technology.
Weaknesses are the factors that affect your company's ability to independently achieve its objectives. Examples are unreliable delivery, outdated production tools, insufficient marketing efforts or a lack of planning.
Opportunities are ways for your business to grow and be more profitable, such as seeking new markets, managing technological changes or addressing new consumer trends. You need to look at how your company's key skills can be used to take advantage of these opportunities.
Threats are barriers to entry in your primary markets, such as competitor's actions, labour shortage, legislative hurdles, or detrimental economic/political developments.
2. Develop a target market profile
Demographic portrait
Here you want to demonstrate you know your customers inside and out, including their expectations and their whims. Your profile should include basic demographics that paint a clear portrait of your clients. For example, you can look at factors such as age, sex, profession or career, income level, educational level and geographic location.
Estimated demand
You'll want to provide research that shows the estimated demand for your product or service and expected growth rate. This builds confidence with financial institutions that your business has growth potential.
Purchase motivation
Another important aspect is understanding exactly what motivates customers to buy. For example are your clients looking for savings, a way to simplify their lives or just shopping for pleasure? Ask yourself, why would they buy your product or service? In the same vein, you may want to know what keeps customers away from your competitors' products or services. Are they too costly? Do they lack something unique? This information is invaluable in developing a product or service that outshines the competition.
3. Set clear marketing objectives and targets
Here you describe the desired outcome of your market plan with attainable and realistic objectives, targets and a clear time frame.
The most common approach is to use marketing metrics. For example, your market objectives could look at total market share and segments, the total number of customers and percentage retained, the rate of purchases and the size/volume of purchases.
4. Determine your marketing strategy
Once you've determined your objectives and targets, it's time to look at how you'll promote or market your business to prospective customers. Typical strategies should cover the Four Ps of marketing. (Product, Price, Place and Promotion).
Your choice of marketing vehicles will be governed by your target market profile. For example, you need to understand how different vehicles reach different audiences. Don't make assumptions that you have to spend money on costly advertising. If you have a niche audience, for example, you can take advantage of low-cost marketing strategies such as e-mailing.
Generally speaking, the most costly options are advertising, sales promotions and public relations
Referrals and networking represent lower cost ways to reach customers
E-marketing is a powerful strategy because of its low-cost and targeted reach potential.
5. Do your financials
A marketing plan without financials has little clout. Your financials can also be included in your general business plan.
Important aspects to include here are:
A budget and forecast
A budget and sales forecast needn't be complex. In fact, it's wise to keep it simple. It may help to start with these basic questions:
How much do you project that you will sell?
What will you be charging for your products or services?
What will it cost to produce your products or deliver services?
What will be your basic operating expenses? Be sure to include recruitment and salaries here
How much financing do you need to run your business?
Answering these questions will help you determine your projected income and your expenses
A break-even analysis lets you show exactly what you need to sell to cover the costs of doing business. If you can attain and surpass your break-even point and easily bring in more than the amount of sales revenue you'll need to meet your expenses, you stand a good chance of making profits.
Friday, January 15, 2010
The catastrophic event in Haiti is another reminder of the importance of having a business emergency plan
How would your business cope if a third of your employees couldn't come to work because of a pandemic flu? What if your local electricity or transport services were down for a week? Or if your main supplier was in an area affected by floods and could not deliver critical supplies?
The Canadian Centre for Emergency Preparedness estimates that up to 86% of small and medium-sized businesses fail to recover in the 3 years following an emergency.
Being prepared is critical for any business. Catastrophic events such as those of September 11, 2001, Hurricane Katrina and the earthquake in Haiti, have shown us that major emergencies can happen and that they have a significant impact on business. In canada we also had our share of disruptive events: Power Outage, SARS, several hurricane, Ice storms, floods etc. And it will happen again.
Creating a business continuity plan (BCP) can help your business survive during and after a crisis
What types of emergency can affect your business?
For a business, an emergency situation is one that causes it to stop or alter its day-to-day activities. In Canada, this can include:
•Natural disasters: Different regions of Canada can be affected by a variety of cataclysms, including blizzards, hurricanes, forest fires, floods and earthquakes. You should be aware of what natural phenomena can strike your area.
•Pandemic flu: This is a major outbreak of a rapidly spreading and contagious strain of influenza. A pandemic would mainly affect businesses through high employee absenteeism: up to 50% of employees could be unable to work. Unlike other types of emergencies, the effect of a pandemic will be worldwide rather than regionalEnvironmental accidents: Includes the effects of pollution, spills of hazardous materials, etc.
•Power outages and critical systems failures: Includes breakdowns and stoppages in the communications, transportation or health sectors.
•Accidents, sabotage, terrorist strike
•Cyber attacks
Emergencies have an impact on your business because they affect:
•People: One of the greatest impacts of an emergency is on human resources. During a crisis such as a pandemic, your employees and partners may be unable to get to work.
•Infrastructure: Any impact on the transportation system could make it impossible for employees to come to work, and keep you from making deliveries or receiving needed materials. If the communications or electricity infrastructures are affected, it may be difficult for you to continue your day-to-day operations.
•Computers: Your data and your ability to work can be jeopardized if your computer systems are damaged or if your technical support staff are absent from work.
•Suppliers and clients: If key business partners, located in another part of the world, are affected by an emergency, this can have a significant impact on your business.
How to prepare for an emergency
While we can't eliminate the potential of an emergency occurring, we can reduce its impact by being prepared. In an emergency, you may not have time to make the arrangements necessary to:
•Protect your employees
•Minimize damage to your site
•Minimize business impacts
Planning is the key to being prepared. You should prepare a plan of what to do during the emergency, to protect your employees and worksite, and to maintain as many of your operations as possible.
Crisis preparedness
Ensuring the safety of employees, your site and equipment during an emergency requires planning that is specific to the type of emergencies that can occur in your area. This may include plans for:
• Evacuating employees
• Creating a shelter in the workplace
• Providing first aid or medical attention
• Having emergency supplies on hand. Basic emergency supplies can consist of a transistor radio, flashlight with extra batteries, tools, first aid kit, food, water and blankets, and a power generator.
The Canadian Red Cross offers guidelines on how businesses can prepare for the physical impacts of an emergency.
Ensuring the survival of your business
The aim of business continuity planning is to help you continue to deliver critical services or products to your clients during the emergency, instead of focusing on restarting business operations after the emergency has passed.
BDC offers all businesses a detailed business continuity plan to help them prepare for an emergency. The 8 key steps are:
1. Establish an emergency preparedness team
2. Identify essential services and functions
3. Identify required skill sets and staff reallocation
4. Identify potential issues
5. Prepare a plan for each essential service and function
6. Compare with Capital Health's "Preparedness Checklist"
7. Review the plan with the team
8. Revise, test and update the plan
Getting outside assistance
Creating a business continuity plan is an essential part of a business' overall strategic plan. An external consultant, can give you the guidance you need to ensure that that your business continuity plan is thorough and realistic.
The Canadian Centre for Emergency Preparedness estimates that up to 86% of small and medium-sized businesses fail to recover in the 3 years following an emergency.
Being prepared is critical for any business. Catastrophic events such as those of September 11, 2001, Hurricane Katrina and the earthquake in Haiti, have shown us that major emergencies can happen and that they have a significant impact on business. In canada we also had our share of disruptive events: Power Outage, SARS, several hurricane, Ice storms, floods etc. And it will happen again.
Creating a business continuity plan (BCP) can help your business survive during and after a crisis
What types of emergency can affect your business?
For a business, an emergency situation is one that causes it to stop or alter its day-to-day activities. In Canada, this can include:
•Natural disasters: Different regions of Canada can be affected by a variety of cataclysms, including blizzards, hurricanes, forest fires, floods and earthquakes. You should be aware of what natural phenomena can strike your area.
•Pandemic flu: This is a major outbreak of a rapidly spreading and contagious strain of influenza. A pandemic would mainly affect businesses through high employee absenteeism: up to 50% of employees could be unable to work. Unlike other types of emergencies, the effect of a pandemic will be worldwide rather than regionalEnvironmental accidents: Includes the effects of pollution, spills of hazardous materials, etc.
•Power outages and critical systems failures: Includes breakdowns and stoppages in the communications, transportation or health sectors.
•Accidents, sabotage, terrorist strike
•Cyber attacks
Emergencies have an impact on your business because they affect:
•People: One of the greatest impacts of an emergency is on human resources. During a crisis such as a pandemic, your employees and partners may be unable to get to work.
•Infrastructure: Any impact on the transportation system could make it impossible for employees to come to work, and keep you from making deliveries or receiving needed materials. If the communications or electricity infrastructures are affected, it may be difficult for you to continue your day-to-day operations.
•Computers: Your data and your ability to work can be jeopardized if your computer systems are damaged or if your technical support staff are absent from work.
•Suppliers and clients: If key business partners, located in another part of the world, are affected by an emergency, this can have a significant impact on your business.
How to prepare for an emergency
While we can't eliminate the potential of an emergency occurring, we can reduce its impact by being prepared. In an emergency, you may not have time to make the arrangements necessary to:
•Protect your employees
•Minimize damage to your site
•Minimize business impacts
Planning is the key to being prepared. You should prepare a plan of what to do during the emergency, to protect your employees and worksite, and to maintain as many of your operations as possible.
Crisis preparedness
Ensuring the safety of employees, your site and equipment during an emergency requires planning that is specific to the type of emergencies that can occur in your area. This may include plans for:
• Evacuating employees
• Creating a shelter in the workplace
• Providing first aid or medical attention
• Having emergency supplies on hand. Basic emergency supplies can consist of a transistor radio, flashlight with extra batteries, tools, first aid kit, food, water and blankets, and a power generator.
The Canadian Red Cross offers guidelines on how businesses can prepare for the physical impacts of an emergency.
Ensuring the survival of your business
The aim of business continuity planning is to help you continue to deliver critical services or products to your clients during the emergency, instead of focusing on restarting business operations after the emergency has passed.
BDC offers all businesses a detailed business continuity plan to help them prepare for an emergency. The 8 key steps are:
1. Establish an emergency preparedness team
2. Identify essential services and functions
3. Identify required skill sets and staff reallocation
4. Identify potential issues
5. Prepare a plan for each essential service and function
6. Compare with Capital Health's "Preparedness Checklist"
7. Review the plan with the team
8. Revise, test and update the plan
Getting outside assistance
Creating a business continuity plan is an essential part of a business' overall strategic plan. An external consultant, can give you the guidance you need to ensure that that your business continuity plan is thorough and realistic.
Monday, January 11, 2010
Top 7 decision-making tips for managers
from bdc.ca
When you manage a business, you are constantly making decisions - often under pressure. How do you make the best possible decisions, knowing they will have an impact on your company's future?
There are strategies you can use to avoid common pitfalls and hone your decision-making skills. Making better, faster decisions will help you take advantage of business opportunities and avoid pitfalls.
1. Reframe the problem
Backing up is sometimes the best way to move forward. When you are presented with a problem, step back and think about its full context. Try to see the issue from as many perspectives as possible. That will help ensure you are not emphasizing one aspect and neglecting others.
Begin by trying to think of at least 3 different ways of looking at the problem.
2. Make evidence-based decisions
The aim of evidence-based management (EBM) is to use scientific evidence when making decisions, rather than simply trusting one's instincts. Like most people, you probably tend to use your judgement and to base your decisions on what is familiar. But experiences that you have had at other companies or in different circumstances may not apply to the situation at hand.
There are simple steps you can take to incorporate evidence into your decision making.
Use performance data to support your decisions. Get the most current and complete data possible.
Challenge your gut feelings. Is there any objective evidence to support them?
When a course of action is suggested, find out what it's based on and whether it's supported by data.
Determine whether commonly used business strategies have worked in a situation like yours. Will they apply to your particular case?
Check that the business data you come across are current and objective.
3. Challenge the status quo
People tend to choose the status quo over change, to stay in their comfort zone. But being comfortable with an approach may not be enough to justify it. Question whether you would choose a course of action if you weren't already following it. Examine your options as realistically as possible. Don't overstate the cost or the effort involved in making a change.
For example, if you were starting over, would you use the same marketing tactics to attract customers? Would you attend the same trade shows? Would you emphasize web-based marketing, direct mail or a mix? Don't forget to find supporting data that will help you review your choices objectively.
4. Get an outside perspective...but trust yourself
Make it a habit to ask others for information and opinions. Be open-minded. Get a wide range of views, so you can see an issue from as many perspectives as possible.
Employee opinions count
Find ways to encourage information sharing in your company. Be open to plain talk and foster an atmosphere where people can be direct, even when the truth is unpleasant. Using performance evaluations is one way to encourage these values.
Deal with problems
If you want to consult others about a problem, be sure to consider it carefully from as many angles as possible before talking to them. That way, you will avoid being limited by their interpretations and ideas. Frame the problem in as many ways as you can, and then seek out others to see whether they can add to your understanding of the issue.
5. Develop an eye for risk
It's possible to train yourself to look for all types of risks. Whenever you make a decision, ask yourself: If I make the wrong decision, how will I know it?
For example, if you are considering changing your transportation carrier to cut costs, think about how you would determine that you'd made the wrong decision.
Your service department would report more customer complaints about delayed orders.
You wouldn't see cost savings at the end of the quarter.
Administration staff would complain of poor service from the new supplier.
The carrier could go out of business, leaving you to find a new supplier.
This type of exercise can help you see the potential pitfalls of a decision and take steps to avoid them.
Even a generally good plan will have costs and potential problems. Ask for information on how the plan could go wrong. Play the devil's advocate. Examine all the evidence, both bad and good. Don't underestimate the costs and effort required.
6. Let go of past mistakes
People have a tendency to make choices that justify past experiences, even when a previous decision has not worked out as well as they'd planned. We also tend to spend time and money fixing past problems, when it would be more useful to acknowledge the mistake and move on.
Making sound decisions means taking into account the evidence that is available at the time. Sometimes the context changes and that decision is no longer valid. Recognize that you made the best decision possible under the circumstances, and then review the situation to see whether a different decision is now called for.
In your company, take time to recognize employees who make good decisions based on sound evidence. Don't focus exclusively on outcomes, as that approach can encourage employees to perpetuate mistakes by continuing to try to fix them.
7. Be honest with yourself
Before gathering evidence to make a decision, take time to review your own motivations. Is your mind already made up? Are you really gathering evidence objectively, or are you simply looking to confirm an existing idea?
Being aware of your own motivations can help you remain objective and focus on finding the best possible solution for your business.
Be decisive
Briskly proceed through the 7 previous steps and then make a decision
When you manage a business, you are constantly making decisions - often under pressure. How do you make the best possible decisions, knowing they will have an impact on your company's future?
There are strategies you can use to avoid common pitfalls and hone your decision-making skills. Making better, faster decisions will help you take advantage of business opportunities and avoid pitfalls.
1. Reframe the problem
Backing up is sometimes the best way to move forward. When you are presented with a problem, step back and think about its full context. Try to see the issue from as many perspectives as possible. That will help ensure you are not emphasizing one aspect and neglecting others.
Begin by trying to think of at least 3 different ways of looking at the problem.
2. Make evidence-based decisions
The aim of evidence-based management (EBM) is to use scientific evidence when making decisions, rather than simply trusting one's instincts. Like most people, you probably tend to use your judgement and to base your decisions on what is familiar. But experiences that you have had at other companies or in different circumstances may not apply to the situation at hand.
There are simple steps you can take to incorporate evidence into your decision making.
Use performance data to support your decisions. Get the most current and complete data possible.
Challenge your gut feelings. Is there any objective evidence to support them?
When a course of action is suggested, find out what it's based on and whether it's supported by data.
Determine whether commonly used business strategies have worked in a situation like yours. Will they apply to your particular case?
Check that the business data you come across are current and objective.
3. Challenge the status quo
People tend to choose the status quo over change, to stay in their comfort zone. But being comfortable with an approach may not be enough to justify it. Question whether you would choose a course of action if you weren't already following it. Examine your options as realistically as possible. Don't overstate the cost or the effort involved in making a change.
For example, if you were starting over, would you use the same marketing tactics to attract customers? Would you attend the same trade shows? Would you emphasize web-based marketing, direct mail or a mix? Don't forget to find supporting data that will help you review your choices objectively.
4. Get an outside perspective...but trust yourself
Make it a habit to ask others for information and opinions. Be open-minded. Get a wide range of views, so you can see an issue from as many perspectives as possible.
Employee opinions count
Find ways to encourage information sharing in your company. Be open to plain talk and foster an atmosphere where people can be direct, even when the truth is unpleasant. Using performance evaluations is one way to encourage these values.
Deal with problems
If you want to consult others about a problem, be sure to consider it carefully from as many angles as possible before talking to them. That way, you will avoid being limited by their interpretations and ideas. Frame the problem in as many ways as you can, and then seek out others to see whether they can add to your understanding of the issue.
5. Develop an eye for risk
It's possible to train yourself to look for all types of risks. Whenever you make a decision, ask yourself: If I make the wrong decision, how will I know it?
For example, if you are considering changing your transportation carrier to cut costs, think about how you would determine that you'd made the wrong decision.
Your service department would report more customer complaints about delayed orders.
You wouldn't see cost savings at the end of the quarter.
Administration staff would complain of poor service from the new supplier.
The carrier could go out of business, leaving you to find a new supplier.
This type of exercise can help you see the potential pitfalls of a decision and take steps to avoid them.
Even a generally good plan will have costs and potential problems. Ask for information on how the plan could go wrong. Play the devil's advocate. Examine all the evidence, both bad and good. Don't underestimate the costs and effort required.
6. Let go of past mistakes
People have a tendency to make choices that justify past experiences, even when a previous decision has not worked out as well as they'd planned. We also tend to spend time and money fixing past problems, when it would be more useful to acknowledge the mistake and move on.
Making sound decisions means taking into account the evidence that is available at the time. Sometimes the context changes and that decision is no longer valid. Recognize that you made the best decision possible under the circumstances, and then review the situation to see whether a different decision is now called for.
In your company, take time to recognize employees who make good decisions based on sound evidence. Don't focus exclusively on outcomes, as that approach can encourage employees to perpetuate mistakes by continuing to try to fix them.
7. Be honest with yourself
Before gathering evidence to make a decision, take time to review your own motivations. Is your mind already made up? Are you really gathering evidence objectively, or are you simply looking to confirm an existing idea?
Being aware of your own motivations can help you remain objective and focus on finding the best possible solution for your business.
Be decisive
Briskly proceed through the 7 previous steps and then make a decision
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