extrait de www.bdc.ca
Il est essentiel, pour assurer sa réussite en affaires, d'avoir des objectifs clairement définis et de mesurer les progrès enregistrés en vue de leur réalisation. La question est de savoir comment déterminer ce que votre entreprise peut accomplir, d'une façon réaliste, dans un laps de temps donné.
À cet égard, 2 outils de planification essentiels peuvent vous aider. Le tableau de bord de gestion est un outil qui suit l'évolution de votre rendement. L'analyse comparative vous permet pour sa part d'évaluer votre rendement par rapport à celui d'autres acteurs de l'industrie. L'un et l'autre vous permettront de continuer à faire progresser votre entreprise.
Tableau de bord de gestion
Un compteur de vitesse ou une jauge à essence vous fournissent des indications essentielles pour vous rendre à bon port en toute sécurité et dans les délais prévus. Il ne vous viendrait pas à l'idée de conduire une voiture qui en serait dépourvue. De la même façon, toutes les entreprises devraient garder certains types d'information à l'œil pour s'assurer de maintenir le cap. Le tableau de bord de gestion vous fournit des données récentes et objectives sur votre entreprise, dont vous pouvez vous servir pour prendre des décisions éclairées.
Cet outil est connu sous une foule d'autres noms: tableau de bord exécutif ou du rendement, sommaire des indicateurs de rendement clés (IRC) et fiche de rendement de l'entreprise.
Pour l'essentiel, le tableau de bord de gestion permet aux gestionnaires de voir d'un seul coup d'œil les aspects les plus importants de leur entreprise. Il fait en un seul et même endroit un résumé des données recueillies auprès de différentes sources à l'échelle de votre entreprise. Il peut comprendre une vue d'ensemble, des chiffriers et des éléments graphiques (comme des diagrammes à barres ou des diagrammes circulaires).
Un tableau de bord de gestion peut être créé à l'aide de progiciels spécialisés permettant une actualisation de l'information en temps réel. Il peut aussi être conçu au moyen d'outils simples, tels qu'un chiffrier électronique ou un logiciel de traitement de texte, à l'aide desquels vous pourrez effectuer un suivi manuel des données importantes sur une base régulière.
Les avantages d'un tableau de bord sont nombreux. Il permet de convertir les objectifs en données mesurables et d'obtenir rapidement des renseignements objectifs. Les graphiques facilitent les évaluations rapides et permettent de repérer facilement les tendances négatives ou les problèmes dans les projets ou les différents services.
Optimiser l'utilisation du tableau de bord
Pour accroître autant que possible les avantages de votre tableau de bord, vous devez l'adapter à votre entreprise. Avant de décider des aspects à surveiller, commencez par passer en revue vos principaux objectifs d'affaires. Ceux-ci doivent être aussi précis que possible. Par exemple, voulez-vous augmenter le nombre de clients fidélisés ou trouver davantage de nouveaux clients? Est-ce une priorité pour vous d'améliorer les flux de trésorerie? Souhaitez-vous éventuellement exécuter les commandes plus rapidement ou réduire le nombre de produits retournés?
Établissez les IRC que vous souhaitez utiliser pour mesurer fréquemment vos progrès par rapport à vos objectifs d'affaires. Ces IRC doivent respecter le principe SMART: Spécifiques, Mesurables, Atteignables, Réalistes et fixés dans le Temps.
Suivre de près les données
Vous devriez recueillir continuellement des données pour le tableau de bord et les passer en revue régulièrement. La consultation du tableau de bord est d'autant plus efficace que vous l'intégrez à votre emploi du temps. À la longue, ces données formeront un tableau d'ensemble qui vous permettra de détecter rapidement les nouvelles tendances ou les anomalies.
Points éventuels à surveiller
Si vous attachez de l'importance au nombre de clients fidélisés, vous pourriez calculer le nombre de clients qui passent une deuxième commande en un laps de temps bien défini (3, 6 ou 12 mois). Si vous avez pour objectif de trouver de nouveaux clients, vous pourriez évaluer le pourcentage de clients éventuels et de référencements de clients qui se traduisent par une commande en l'espace de 12 mois. Si votre priorité est d'améliorer les flux de trésorerie de votre entreprise, vous pouvez commencer par recenser les comptes dont le paiement accuse un retard de plus de 30 jours. Vous remarquerez ainsi rapidement toute augmentation des comptes impayés. En agissant immédiatement et en intensifiant les efforts de recouvrement, vous pourrez corriger la situation avant qu'elle n'affecte votre trésorerie.
Tableau de bord électronique
Les logiciels de tableau de bord présentent généralement vos données sous une forme graphique (diagrammes, indicateurs de mesure ou voyants avertisseurs) facile à comprendre. Vous pouvez également télécharger des objets fenêtre (dashboard widgets). Il s'agit d'outils d'interface graphique qui recueillent des informations et les affichent sur votre bureau. Chaque objet fenêtre (ou widget) peut, comme n'importe quelle icône ou fenêtre, être déplacé sur le bureau, réorganisé ou supprimé.
Si vous envisagez l'achat d'un logiciel, vous devez bien connaître les besoins de votre entreprise. Évaluez s'il peut s'adapter aux IRC que vous souhaitez suivre de près et si vous avez besoin d'un logiciel additionnel pour recueillir des données. Vérifiez s'il couvre plusieurs secteurs fonctionnels ou s'il est propre à un seul d'entre eux (p. ex., les ressources humaines). Veillez à ce qu'il soit non seulement flexible et facile à personnaliser, mais qu'il s'intègre également à vos autres systèmes (comme la gestion des relations avec la clientèle et le logiciel de comptabilité). Pour terminer, regardez si vous pouvez modifier la façon de générer les rapports (par région, par représentant commercial ou par produit).
Après avoir établi ce dont vous avez besoin, vous devez dresser un budget comprenant les coûts liés à l'achat, à l'installation, à la formation et à la maintenance annuelle. Tenez compte des coûts associés aux mises à jour ou aux composantes additionnelles. Peut-être voudrez-vous aussi préparer un plan d'acquisition pour étaler les coûts.
Analyse comparative
Faire le point sur la situation d'autres entreprises de votre secteur vous aidera à avoir une idée plus juste de vos propres pratiques d'affaires.
Bien souvent, les ratios financiers peuvent vous permettre de faire des comparaisons avec les moyennes et médianes de l'industrie.
Les entreprises innovatrices, qui sont des chefs de file, peuvent aussi servir de modèles à d'autres. L'analyse comparative consiste à repérer les meilleures pratiques (résultats obtenus) des leaders de l'industrie et à comparer ensuite votre propre rendement au leur.
Une analyse comparative peut couvrir pratiquement tous les domaines d'une entreprise et s'avérer un outil très utile pour en favoriser l'amélioration continue.
Avantages
Le fait de comparer votre rendement à celui d'autres entreprises vous permet également d'améliorer la planification stratégique, l'efficacité de vos opérations ainsi que vos produits et services.
Étapes de l'analyse comparative
Il existe 6 étapes fondamentales pour réussir une analyse comparative.
1. Déterminez le secteur que vous souhaitez améliorer
2. Mesurez votre rendement dans ce secteur
3. Déterminez les entreprises ou l'industrie auxquelles vous voulez
vous comparer
4. Déterminez votre façon de recueillir l'information sur le ou les
sujets ciblés
5. Comparez les données rassemblées à votre rendement
6. Dressez un plan d'action pour combler tous les écarts que vous
pourriez avoir relevés
Le gouvernement fédéral offre un outil en ligne pour aider les Canadiens à comparer leur entreprise à d'autres du même secteur d'activité, à partir de données recensées par Statistique Canada. Pour en retirer le maximum d'avantages, vous devez inscrire toutes les données financières de votre entreprise. http://www.ic.gc.ca/eic/site/pp-pp.nsf/fra/accueil
La BDC fournit elle aussi un outil d'analyse comparative à ses clients. Celui-ci leur permet de se comparer à l'industrie à trois égards: le délai moyen de recouvrement des comptes clients, le délai moyen de règlement des comptes fournisseurs et la rotation des stocks. Ces comparaisons peuvent faire ressortir les domaines dans lesquels votre entreprise s'en tire bien et ceux qu'elle gagnerait à améliorer.
Faire des comparaisons
Vous devriez considérer l'analyse comparative et les meilleures pratiques comme des moyens de mieux comprendre vos propres processus d'affaires. Assurez-vous de bien saisir pourquoi l'entreprise à laquelle vous vous comparez a réussi avant de l'imiter. Des pratiques qui font des merveilles pour une entreprise n'en feront pas nécessairement autant pour d'autres.
Vous devriez par conséquent évaluer soigneusement si une pratique exemplaire pourra donner de bons résultats pour votre entreprise, dont la taille, les marchés ou l'orientation stratégique peuvent être différents. Les pratiques doivent servir avant tout de source d'inspiration. Vous pouvez ensuite les adapter afin qu'elles cadrent avec vos réalités et vos besoins particuliers.
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Wednesday, May 26, 2010
Monday, May 17, 2010
Comment évaluer l’entreprise à acquérir
extrait de www.BDC.ca
Déterminer la valeur d'une entreprise que vous voulez acquérir est un exercice complexe. Il s'agit d'une tâche laborieuse, qui est loin d'être une science exacte. L'évaluation fournit une valeur théorique qui vous donnera une idée du juste prix à payer pour l'entreprise.
Vous ne devez pas vous fier au seul jugement de votre comptable ou du vendeur. Il est recommandé de faire appel à un spécialiste de l'évaluation d'entreprises pour qu'il produise un rapport indépendant. Bien qu'il s'agisse d'un domaine non réglementé, l'Institut canadien des experts en évaluation d'entreprises (ICEEE) (en anglais) fournit des lignes directrices et un code de déontologie.
En règle générale, il vous sera rarement possible de comparer votre acquisition potentielle avec une transaction semblable. Les données disponibles à l'égard de ce genre de transaction privée sont plutôt rares et, bien souvent, elles ne s'appliqueront pas à votre situation. Il se peut également que les modalités soient trop liées à un secteur d'activité particulier pour être utiles et que des circonstances particulières – telles que le paiement d'une prime par l'acheteur en vue d'éliminer la concurrence – viennent fausser la valeur réelle de l'entreprise.
Trois niveaux d'assurance
Selon l'ICEEE, il existe trois sortes de rapport allant du plus approximatif au plus détaillé:
1- Rapport de calcul: Sert à obtenir une estimation approximative aux fins de la planification initiale
2- Rapport d'estimation: Idéal pour les négociations préalables, la planification successorale et les situations qui comportent des enjeux importants, mais soumis à des limitations budgétaires
3- Rapport exhaustif/d'opinion: Approprié dans les situations qui présentent des risques élevés ou des enjeux importants ou lorsqu'il y a des poursuites judiciaires
Pour préparer son rapport, l'évaluateur procède à un examen des faits et des données financières historiques, après quoi il fait les ajustements nécessaires pour tenir compte des circonstances spéciales. Il formule ensuite une conclusion en clarifiant les incidences de son évaluation sur la valeur estimée. L'évaluateur émet en outre une réserve liée à l'étendue du mandat, qui varie en fonction de la qualité du rapport fourni.
Travaux requis
Pour fournir un rapport de calcul, l'évaluateur examine et analyse l'information financière et peut avoir des rencontres avec la direction.
Le rapport d'estimation suit la même démarche, mais est plus exhaustif. L'évaluateur calcule les bénéfices «normalisés» en ajustant les dépenses et les revenus exceptionnels et non récurrents tirés des états financiers historiques. Ceci peut comprendre les salaires et les primes de la direction, lesquels peuvent être inférieurs ou supérieurs à la valeur marchande, laquelle sera ensuite ajustée pour refléter les normes actuelles du marché.
Dans le rapport exhaustif, l'évaluateur émet une opinion. Ce rapport fournit une analyse plus approfondie de l'entreprise et passe en revue les éléments suivants:
- Brevets, règlements et conventions d'actionnaires
- Contextes économique et sectoriel de l'entreprise
- Conjoncture du marché et concurrence
- Clientèle et contrats, carnet de commandes
- Contrats et engagements avec les fournisseurs
- Visite des installations de l'entreprise
- Données financières et prospectives
- Justification du choix des taux d'actualisation et de capitalisation selon des modèles financiers reconnus
Principes d'évaluation fondamentaux
La première étape dans la démarche d'établissement d'un prix consiste à fixer la juste valeur marchande de l'entreprise. Les trois grands principes d'évaluation sont les suivants:
-La valeur est tributaire des attentes
-La valeur est tributaire des flux de trésorerie futurs
-La valeur dépend des immobilisations matérielles
Méthodes et techniques d'évaluation
Il existe deux méthodes de base pour déterminer la valeur d'une entreprise:
Valeur de l'actif
- Valeur comptable: Valeur nette de l'entreprise, obtenue en soustrayant le passif de l'actif. Les valeurs reposent sur les états financiers; toutefois, les biens immeubles sont habituellement ajustés pour refléter la valeur marchande courante
- Valeur de liquidation: Suppose que l'entreprise procède à la vente de tous ses actifs et qu'elle rembourse toutes ses dettes. L'excédent représente la valeur de l'entreprise
Bénéfices et flux de trésorerie
- Actualisation des flux de trésorerie: Valeur fondée sur la valeur actualisée des flux de trésorerie futurs d'une entreprise
- Valeur d'exploitation: Suppose que l'entreprise poursuivra le cours normal de ses activités. Cette valeur est calculée en multipliant les bénéfices prévus par un multiple des bénéfices pour arriver à la valeur des bénéfices capitalisés
Les techniques les plus couramment utilisées pour calculer la valeur d'une entreprise comprennent notamment:
La capitalisation du bénéfice net représentatif
Une valeur peut être attribuée aux bénéfices futurs provenant de l'acquisition. Pour obtenir la valeur d'exploitation, un multiple de capitalisation est appliqué aux bénéfices de l'entreprise et aux éléments d'actif hors exploitation à la valeur marchande courante
La capitalisation du flux monétaire représentatif
Identique à la technique ci‑dessus, sauf que ce sont les flux de trésorerie qui sont capitalisés plutôt que les bénéfices
L'actualisation des flux monétaires prévisibles
Consiste à déterminer les flux monétaires futurs les plus probables et à trouver la valeur actuelle en les actualisant à la date de l'évaluation
La détermination de l'actif net redressé
Repose sur le calcul de la juste valeur marchande de l'actif, moins tous les éléments de passif. Elle s'applique aux entreprises qui ont des biens immeubles considérables inscrits dans leur bilan ou dont la valeur tient à leur actif plutôt qu'à leur exploitation
Pour plus d'information, consultez le guide Étapes vers le capital de croissance offert sur le site web d'Entreprises Canada.
Autres règles
Dans certains secteurs de l'industrie des services, la valeur d'une entreprise est évaluée selon un multiple des recettes. Par exemple, un bureau de courtier d'assurances vaut de 1 à 1,5 fois les commissions touchées pour une période déterminée par négociation.
Au bout du compte, ce qui détermine les conditions d'achat et le prix final, ce sont les négociations entre vous et le vendeur.
Déterminer la valeur d'une entreprise que vous voulez acquérir est un exercice complexe. Il s'agit d'une tâche laborieuse, qui est loin d'être une science exacte. L'évaluation fournit une valeur théorique qui vous donnera une idée du juste prix à payer pour l'entreprise.
Vous ne devez pas vous fier au seul jugement de votre comptable ou du vendeur. Il est recommandé de faire appel à un spécialiste de l'évaluation d'entreprises pour qu'il produise un rapport indépendant. Bien qu'il s'agisse d'un domaine non réglementé, l'Institut canadien des experts en évaluation d'entreprises (ICEEE) (en anglais) fournit des lignes directrices et un code de déontologie.
En règle générale, il vous sera rarement possible de comparer votre acquisition potentielle avec une transaction semblable. Les données disponibles à l'égard de ce genre de transaction privée sont plutôt rares et, bien souvent, elles ne s'appliqueront pas à votre situation. Il se peut également que les modalités soient trop liées à un secteur d'activité particulier pour être utiles et que des circonstances particulières – telles que le paiement d'une prime par l'acheteur en vue d'éliminer la concurrence – viennent fausser la valeur réelle de l'entreprise.
Trois niveaux d'assurance
Selon l'ICEEE, il existe trois sortes de rapport allant du plus approximatif au plus détaillé:
1- Rapport de calcul: Sert à obtenir une estimation approximative aux fins de la planification initiale
2- Rapport d'estimation: Idéal pour les négociations préalables, la planification successorale et les situations qui comportent des enjeux importants, mais soumis à des limitations budgétaires
3- Rapport exhaustif/d'opinion: Approprié dans les situations qui présentent des risques élevés ou des enjeux importants ou lorsqu'il y a des poursuites judiciaires
Pour préparer son rapport, l'évaluateur procède à un examen des faits et des données financières historiques, après quoi il fait les ajustements nécessaires pour tenir compte des circonstances spéciales. Il formule ensuite une conclusion en clarifiant les incidences de son évaluation sur la valeur estimée. L'évaluateur émet en outre une réserve liée à l'étendue du mandat, qui varie en fonction de la qualité du rapport fourni.
Travaux requis
Pour fournir un rapport de calcul, l'évaluateur examine et analyse l'information financière et peut avoir des rencontres avec la direction.
Le rapport d'estimation suit la même démarche, mais est plus exhaustif. L'évaluateur calcule les bénéfices «normalisés» en ajustant les dépenses et les revenus exceptionnels et non récurrents tirés des états financiers historiques. Ceci peut comprendre les salaires et les primes de la direction, lesquels peuvent être inférieurs ou supérieurs à la valeur marchande, laquelle sera ensuite ajustée pour refléter les normes actuelles du marché.
Dans le rapport exhaustif, l'évaluateur émet une opinion. Ce rapport fournit une analyse plus approfondie de l'entreprise et passe en revue les éléments suivants:
- Brevets, règlements et conventions d'actionnaires
- Contextes économique et sectoriel de l'entreprise
- Conjoncture du marché et concurrence
- Clientèle et contrats, carnet de commandes
- Contrats et engagements avec les fournisseurs
- Visite des installations de l'entreprise
- Données financières et prospectives
- Justification du choix des taux d'actualisation et de capitalisation selon des modèles financiers reconnus
Principes d'évaluation fondamentaux
La première étape dans la démarche d'établissement d'un prix consiste à fixer la juste valeur marchande de l'entreprise. Les trois grands principes d'évaluation sont les suivants:
-La valeur est tributaire des attentes
-La valeur est tributaire des flux de trésorerie futurs
-La valeur dépend des immobilisations matérielles
Méthodes et techniques d'évaluation
Il existe deux méthodes de base pour déterminer la valeur d'une entreprise:
Valeur de l'actif
- Valeur comptable: Valeur nette de l'entreprise, obtenue en soustrayant le passif de l'actif. Les valeurs reposent sur les états financiers; toutefois, les biens immeubles sont habituellement ajustés pour refléter la valeur marchande courante
- Valeur de liquidation: Suppose que l'entreprise procède à la vente de tous ses actifs et qu'elle rembourse toutes ses dettes. L'excédent représente la valeur de l'entreprise
Bénéfices et flux de trésorerie
- Actualisation des flux de trésorerie: Valeur fondée sur la valeur actualisée des flux de trésorerie futurs d'une entreprise
- Valeur d'exploitation: Suppose que l'entreprise poursuivra le cours normal de ses activités. Cette valeur est calculée en multipliant les bénéfices prévus par un multiple des bénéfices pour arriver à la valeur des bénéfices capitalisés
Les techniques les plus couramment utilisées pour calculer la valeur d'une entreprise comprennent notamment:
La capitalisation du bénéfice net représentatif
Une valeur peut être attribuée aux bénéfices futurs provenant de l'acquisition. Pour obtenir la valeur d'exploitation, un multiple de capitalisation est appliqué aux bénéfices de l'entreprise et aux éléments d'actif hors exploitation à la valeur marchande courante
La capitalisation du flux monétaire représentatif
Identique à la technique ci‑dessus, sauf que ce sont les flux de trésorerie qui sont capitalisés plutôt que les bénéfices
L'actualisation des flux monétaires prévisibles
Consiste à déterminer les flux monétaires futurs les plus probables et à trouver la valeur actuelle en les actualisant à la date de l'évaluation
La détermination de l'actif net redressé
Repose sur le calcul de la juste valeur marchande de l'actif, moins tous les éléments de passif. Elle s'applique aux entreprises qui ont des biens immeubles considérables inscrits dans leur bilan ou dont la valeur tient à leur actif plutôt qu'à leur exploitation
Pour plus d'information, consultez le guide Étapes vers le capital de croissance offert sur le site web d'Entreprises Canada.
Autres règles
Dans certains secteurs de l'industrie des services, la valeur d'une entreprise est évaluée selon un multiple des recettes. Par exemple, un bureau de courtier d'assurances vaut de 1 à 1,5 fois les commissions touchées pour une période déterminée par négociation.
Au bout du compte, ce qui détermine les conditions d'achat et le prix final, ce sont les négociations entre vous et le vendeur.
Monday, April 26, 2010
Low-cost ways to motivate your employees
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.
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.
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.
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