Can’t Decide if you Need a Business Plan – Read This!
Depending on the type of person you are, approaching the task of writing a business plan can either be exciting, or an unbearable chore.
Regardless of which side of the fence you fall, with the amount of time it takes to write a really good plan I think it’s only natural to ask yourself “Do I really need a plan?”
Consider This
According to a new study, the Small Business Administration found that writing a plan early in the business planning stage could increase your chance of success with your new venture.
However, the reasons for this may be a bit different than what you may think, quite simply it appears that:
Those who plan, do!
As the author of the report states:
“…challenging prospective entrepreneurs to accomplish a formal business plan early in the venture creation process will likely enable them to engage in additional start-up behaviors that could further the press of venture creation”
Business Plans Speed Development
Not surprisingly those new ventures with a plan developed early in the start-up phase of their businesses more quickly completed other phases of the startup process.
It stands to reason that if they have taken the time and effort to create a formal plan, they are the type of individual who would want to act quickly on the plan they developed.
Activities vital to a businesses success early on, such organizing finances, getting your team together, or developing a marketing plan are more quickly acted upon by individuals who have a plan for them. This speed to complete important tasks cannot be underestimated in the early success of the business.
Improve Your Odds
By writing your business plan early in your start-up process you will improve your odds for success according to the study. Early in the process is the most important factor they found in increasing your chances for success.
Not only will you be setting a solid plan by which to follow, the simple act of writing a plan will help put you into action mode.
Also, by having a well thought out plan early on you may be showing potential investors and other supporters that your business is feasible and gain their assistance as your move ahead.
Your First Step
While the conclusions of the study can be debated, and there will be some who think a business plan isn’t necessary, for those of you who have been wanting to start a business but haven’t acted yet this study should give you reason to get going!
Regardless of if you think a busineness plan is essential, there is now evidence that the mere act of writing the plan will spur you into doing. Congratulations, you’ve just found your first step to get you moving in the right direction.
Start today and give your business the jump start it needs, and keep in mind that planners – do!
What do you think…are business plans necessary?
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Google’s 5 Tips for Entrepreneurs
Google co-founder Larry Page provides several tips for entrepreneurs.
Below these follows a short 4 minute video in which Larry explains his five tips in a bit more detail.
Tip 1: Don’t Settle
Very important to pick the right people to be involved with your startup. Take your time, and get the right people – great people who are compatible.
Tip 2: Be a Real Expert
Know as much about your product or service as you can before you begin building your business. Be an expert, take the time to learn.
Tip 3: Consider Your Goals – And Set Some!
First, have a healthy disregard for the impossible.
Then set stretch goals that are going to be very hard to achieve, but not outlandish. Be specific in what you want to accomplish, and don’t be afraid of setting very aggressive goals.
Lastly, ensure you are measuring your progress towards your goals. You can never measure too much.
Tip 4: Don’t Be Afraid to Solve Hard Problems
There is a lot of leverage and bang for your buck in solving a hard problem with your business. What’s nice is the problem may be hard for your customer, but easy for you to solve. Go after those hard problems and fix them and you will be rewarded.
Tip 5: Don’t Jump on a VC Bandwagon
Don’t just start a company because it is popular or in vogue at the moment. A great business idea will be the one that gets the funding. Larry mentions that they rarely fund a deal, possibly as few as 1/year. So there are a lot of ideas chasing limited money. Only the best will get the VC attention.
Running Time: 4:31
Source: http://edcorner.stanford.edu/authorMaterialInfo.html?mid=1076
Have your own tips for entrepreneurs? I’d love to hear them in the comments section below
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Photo Credit: Liquid Lucidity
Guest Post at The Toilet Paper Entrepreneur
Hey everybody, just a quick note to point you towards today’s blog post…that’s right, you’re going to have to make one more mouse click in order to get to the good stuff.
I had the honor and privilege to guest post over at The Toilet Paper Entrepreneur, on the topic of why your business should be blogging.
Guest Post: If Your Business Isn’t Blogging You’re Missing Out!
There are numerous benefits to having a blog for your business and in the post I go over what I feel are the top 6 reasons you need a blog.
Head on over to The Toilet Paper Entrepreneur to check it out, and if you haven’t been to Mike’s blog before – stay a while and check it out, there is a ton of great stuff there.
Big thanks to Mike Michalowicz, author of The Toilet Paper Entrepreneur , for giving me a few minutes on his blog. Although I would like to think it was because of the glowing review I gave his book on this blog, I feel it has more to do with appeasing my request for royalties.
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85 Absolutely Free Online Business Classes
Back when I was in school, which wasn’t that long ago, in order to get this kind of information you had to spend hours in a classroom and thousands of dollars.
Now you can get a big time business education, on your own time, for free.
The following courses range in complexity and length, and should offer a good primer for those of you just starting your own business or who want more specialized knowledge in an area of interest.
I hope you find something here that helps you and your business be successful!
General Small Business
- Small Business Primer: Guide to Starting a Business
- My Own Business
- Business Planning Guide Down-Shifting in a Slowing Economy
- Strategic Planning & Execution
- Increase Your Business Success
- Organize Your Small or Home Office
- Evaluating the Potential of Business
- Business Organization
- Licenses & Permits
- Business Insurance
- Location and Leasing
- Expanding and Problems
- Buying A Business
- Online Tutorial for Starting a Business
- Entrepreneurship and Business Planning
Strategy
- Creating a Strategic Plan
- Maintaining an Agile Company
- The Entrepreneurial Strategies
- Identifying Your Sales Strategy
- Strategic Planning and Execution
- Analyzing Your Competition
Business Plans
- How to Prepare a Business Plan
- The Business Plan
- How to Write a Business Plan
- Crafting A Business Plan
- Developing a Business Plan
Marketing
- How to Win Customers in a Slowing Economy
- Marketing 101: Guide to Winning Customers
- Marketing for Small Business
- Conduct a Marketing Analysis
- Advertising and Marketing Psychology
- Opening and Marketing
- Advertising Your Business
- Building Your Brand
- Conduct a Marketing Analysis
- Creating a Competitive Advantage
- Creating Buzz: Small Business Marketing
- Market Insight and Research
- Marketing 101
- Positioning Master Class
- Pricing Products and Services
- Pricing Strategy and Tactics
- Promoting Your Business
- Targeting Your Market
- Brand Leadership/E-Seminar 1, Brand Identity and Strategy
- Brand Leadership/E-Seminar 2, Experiential Branding
- Introduction to Marketing
- Marketing Management
- Marketing Strategy
- Entrepreneurial Marketing
- Marketing writing tips: five mistakes to avoid (quick lesson)
Financing
- How to Prepare a Loan PackageRaise new capital / Refinance existing debt
- Finance Primer: Guide to SBA’s Loan Guaranty Programs
- Assessing Financial Needs
- Accounting and Cash Flow
- How to Finance Your Business
- Finding and Attracting Investors
- Entrepreneurial Finance
- Early Stage Capital
- Find Startup Funding
- Introduction to Accounting
Communication
Leadership
Special Interest Business
- Franchising Basics
- Buying a Business or Franchise
- Conduct Powerful Job Interviews
- How to Recruit and Hire the Best
- Starting a Business in Canada
- Dynamic Leadership: Using Improvisation in Business
Business Technology
- Technology 101: A Small Business Guide
- Building Your Website
- Managing the Digital Enterprise
- Computer Tools
- E-Commerce Business
Business and Social Media
Other
- Global Enterprise: A Primer on Exporting
- Business Opportunities: A Guide to Winning Federal Contracts
- INSIGHT: Guide to the 8(a) Business Development Program
- Government Contracting Workshop
- International Trade
Can’t visit Small Biz Bee on a regular basis? You can stay up to date by having the latest Small Biz Bee news delivered to you for free via RSS or Email.
Photo Credit:Joseph Robertson
Are You Making These Five Marketing Plan Mistakes?
The following is a list of the top five marketing plan mistakes.
Some of them I have seen other businesses make, and a few I’ve made myself.
Do yourself a favor, and learn from my mistakes not your own.
Top 5 Marketing Plan Mistakes
1. Not Specific Enough
The first step of any good marketing plan is to identify the market you will be targeting with your marketing and advertising efforts.
Where businesses go wrong is they do not get specific enough with whom they are targeting. It may be nice to think you’ll just target everyone, and if you get just 1% of everyone to buy your products – success!
Unfortunately it doesn’t work that way. Using a shotgun, hope I hit everyone, approach is inefficient and costly. You’re much better off spending your marketing time and money targeting a very specific group of consumers who want what you are selling.
Even the largest of companies do this. Think about how Coke markets their product. While it may seem they just want everyone to buy a Coke, their marketing and advertising certainly isn’t targeting everyone.
Your target market definition should be detailed. Such as “I want to target males aged 25-35 who have and interest in basketball and have attended a professional basketball game in the last year”. Much better than just targeting males nationwide.
2. Forget Current Customers
Often times we get so focused on the new customers our marketing and advertising efforts will bring us we forget the loyal customers we already have.
If all your marketing plans only target new customers – - how do you think your current customers feel? A little left out of all the fun most likely.
Blend your marketing and advertising so that you are putting as much time and effort into your current customers, so they continue to be customers, and those new acquisitions. Remember growth comes from two avenues. New customers, and current customers buying more than they have in the past.
3. Think Marketing Only Means Advertising
If your marketing plan is only focused on the advertising part, you’re missing a big piece of the puzzle. Just putting out advertisements, is not the entire mix of marketing that is necessary to bring you more buyers.
Brand management, networking, market research, customer support, and a sales strategy are all pieces of the marketing puzzle that you will be missing if you focus your plan only on advertising. Advertising is a piece of it, but marketing is the comprehensive approach to getting your products into the consumers hands.
4. Don’t Set a Budget Up Front
You’re excited to get your message out to your target market, and sometimes it seems like a “at any cost” proposal. However for any plan to be successful you will need to set a budget up front.
You should have a good idea of how many new customers you expect from any marketing and advertising efforts you do. So if you think a direct mailing will bring you 100 new customers who spend $10 a piece, it wouldn’t make sense to spend $10,000 to get those customers.
Also, what you will find is that as you look into different areas of marketing your products it will be really easy to just keep adding to your mix. Without a budget going in, and a set spending limit, it is very easy to get caught up in the euphoria and allow, as project managers would say, scope creep.
5. Not Tracking Results
I’m surprised by how many businesses do not track the results of their marketing efforts.
Usually they say “Yeah we put an ad in the paper, and got a few customers from it”. See the problem with that? How do you know that was the most efficient use of your marketing dollars? How many new customers did you get exactly? How much did they spend? How does this compare to other marketing avenues you explored?
These are all questions you should be able to answer, and without tracking your results you’ll be in the dark about what’s working.
Think about this going in. Ask yourself how you will track the performance of each piece of the marketing mix, and then compare the results to other types of marketing and advertising your doing.
Summary
If your business takes proactive steps to ensure you’re not making these mistakes as you develop your marketing plan, you will put yourself miles ahead of most of your competition. Part of the problem is the excitement that comes with advertising and marketing your products, and dreaming about all those new customers you’ll be getting. Be diligent, thorough, and systematic with your plan and you’ll be just fine.
What do you think? Was there anything I missed…let me know in the comments section below.
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Photo Credit:EmaStudios
Are You Selling the Sizzle?
Most people agreed with last week’s post in regards to selling your customers benefits and experiences, not mere stuff and things.
However, a couple folks did mention that building that “experience” could be costly, and as such is prohibitive to those of us who are a little bit cash strapped at the moment.
Let me give you an example of how selling an experience has little to do with money and more to do with “sizzle”
The Story
There is an Italian restaurant in my city that I absolutely love. Anytime I get a chance to take friends or family out to dinner this is the place I choose. The food really is good, but the experience is what keeps me coming back time and again.
Let me explain.
First, walking into their restaurant is like strolling into a street side café in Venice or Milan. As soon as I step through the door I feel like I’ve entered Italy – not the Olive Garden’s version of Italy, real Italy.
Soccer jerseys hang on the the walls, and one lone TV in the corner is always playing a soccer match from somewhere around the world.
The deli counter is in plain site of the dinning room, where the prosciutto, cheeses and breads are kept. All mouth wateringly fresh, and homemade.
You are greeted warmly by enthusiastic staff as well as the aromas of an Italian kitchen.
Every waiter and waitress is Italian, and even if they are faking a bit of their accent, there is something uniquely satisfying in having them explain the specials to me with such passion for each ingredient, and an intensity and love for the flavor of food.
The owner is always on site, and is 80 years young if he’s a day.
On a recent visit he danced with my wife in the middle of the dining room to an Italian waltz. Then stopped by our table 2-3 times during the evening to check on us, and tell us stories about when he was a child in Italy.
Now not only were we dining in a street side café in Venice, we were part of the family. Having dinner in our Italian grandfathers dinning room.
The food is wonderful, but to be honest I can’t separate it from the ambiance, and the experience they craft. And honestly if they were just serving up food in a ho-hum setting I don’t know if I would continue to go back time after time.
When you leave for the evening everyone wishes you a “Buona Sera” (good night). Usually the owner walks you to the door — handshakes and hugs for everyone. You’re part of the family.
Sell the Sizzle
This restaurant is selling the experience of being in Italy without my ever leaving home. They know this, and they are good at it. And it doesn’t cost them a dime.
They understand that most of us do not know the joy of having a large Italian family, so they provide one for us.
It’s why I go back there exclusively. I can get Italian food anywhere, and can even cook a decent Italian meal in my own kitchen, but I can’t recreate their experience.
For a couple hours they transport me to another place and time. The food is ancillary to the experience, and that’s what they are selling me.
What makes your business sizzle? What makes your product sizzle? And is that what you’re selling?
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Photo Credit:ppz
The Conversation: An Introduction to Social Media
Social media is here to stay and only going to get bigger.
By nature humans are social creatures, we like interaction, connection, and the cohesiveness being part of a group provides us.
But what does that mean for you and your business?
It means that now is the time to join the conversation and tap into the power of the group to brand yourself, and expand the reach of your products and services through an unprecedented word of mouth marketing opportunity.
Social media is an instantaneous word of mouth marketing network. How important is word of mouth?
Did You Know?
- 91% of people say that online consumer reviews are the #1 aid in buying decisions
- 87% trust a friends recommendation over that of a critics review
- People are 3 times more likely to trust a peer opinion over advertising for purchasing decisions
- 1 word of mouth conversation has the impact of 200 TV ads
Word of mouth marketing is made for social media
Social media websites are the fastest growing category on the web.
- 73% of active online users have read a blog
- 45% have started their own blog
- 39% subscribe to an RSS Feed
- 57% have joined a social network
- 55% have uploaded photos
- 83% have watched video clips
That’s a lot of people, in the conversation, participating. If your business is not yet taking advantage of this trend, now is the time to leverage social networks and get people talking about you.
If your not sure exactly where to start though, or need a primer on what aspects of social media you should be focusing on, I’d recommend you spend some time with the following presentation from Tactica Interactive Communications.
Tactica is a Canadian digital marketing company, and while a couple of the slides in the presentation speak directly to Canadian social networking, the principals they lay out are solid regardless of what part of the world you call home.
What’s Covered?
- Social Media Definition
- 10 keys to social media success
- Social media tools
- Social media myths
- 3 take away messages
The Conversation: An Introduction to Social Media
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Photo Credit: R.Rasmussen
5 Low Cost Ways to Reach Gen-Y Dollars
The following is a guest post by Greg Rollett from Endagon Innovations, a new media and youth marketing boutique in Orlando, FL. Here Greg shares some cost effective ways to reach the worlds biggest generation! Check out their Gen-Y Hospitality Report here and read more from Greg on his personal blog.
As we head into early 2009 and budgets are shrinking and marketing dollars vanishing we are starting to see many businesses forget about an important demographic, Gen-Y, aka the Millennials. With over 80 million of them in the United States and over $150billion in spending power annually, this group is quickly becoming the go to generation for marketers.
As a small business tapping into this generation has its advantages and risks. Young people see right through marketing and like to be included and not spoken to. Finding the right mix and marketing to them on their own terms can be a huge win for your organization as their loyalty can extend as they grow, mature and have needs down the road.
Here are 5 low cost ways that Small Business can reach Gen-Y
Local college marketing
Many colleges and universities have market days for 3rd parties to set up small booths and interact with students and faculty between classes. The cost to attend is usually low, however you need to be able to engage these kids with sign-ups, prizes, games and activities.
Facebook advertising
By hyper targeting an age group in your local market you can assure that just the right people see your ads. If you have a product that attracts 18-29 year old males who like Bob Marley in Orlando, FL, you can set up ads to show in those profiles and pay per the click.
Sponsor large local music or culture events
By associating your name with a local film or music festival your name, logo, url and brand can be associated with many young people who are already engaging with each other and spending money. Be careful that you pick events that relate to your core values or you can end up harming your rep just as easy.
Start using SMS
On your receipts, in ads, on tv, heck anywhere. Let people text into your service and offer them coupons and special offers. The results can be staggering producing an ROI that will amaze you. Plus the list is yours to keep and continue to market to forever!
Start utilizing video
Be authentic in your videos. Gen-Y doesn’t need million dollar production; YouTube just compresses all of it anyway. Show your brand, what you stand for and make it short and memorable. YouTube is now the number 2 search engine (not video search, overall search) and can drive traffic and give your campaign legs with embeds, comments and ratings.
This is just a fast look at what you can do to attract young people to your organization and realize the potential that they have. Many Millennials travel in packs and utilize word of mouth marketing to learn about products and services. That means when there are 1 there are many and if you deliver a memorable experience there will be many more.
Here’s to tapping into the world’s biggest generation!
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Want to guest post at Smallbizbee.com? Here’s how…
Photo Credit: AH!Photography
The Reason Nobody’s Buying What You’re Selling
That’s right; I don’t really want what you’re selling. Most consumers don’t either. If people aren’t buying what you’re selling, or they’re not buying enough of it, stop and think for a minute what are you truly selling them?
If you think you are selling them your products and services you’re wrong. Consumers don’t want your “stuff and things”.
What we want to be sold, and what we’ll buy more of, are experiences and benefits.
We’re buying from people selling us experiences and benefits – regardless of what the product or service is.
We have no interest in your virtual assistants who can send email for us. We want more efficiency and more productive use of our time.
Forget selling us basketball shoes that have great ankle support. We want shoes that give us the chance to jump higher and be one step closer to Michael Jordan.
We don’t need the huge flat screen TV – sell us the envy of all our friends instead.
You are selling me tax preparation services – sell me on piece of mind that it’s getting done right.
Our wives don’t want a massage because deep tissue muscle stimulation is good for them – they need it because they work hard and deserve the pampering damnit!
Enough with the new 7 new flavors of mango sorbet you’re pushing – Put our imaginations on a tropical island for a minute and we’re sold.
You get the picture.
You aren’t selling us services. You are relieving us of the hassle of doing something ourselves and screwing it up.
Don’t tell me what your product does. Tell me what it does for me, and why I should care.
Quit selling stuff and things — start selling experiences and benefits.
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What’s the Next Curve for your Business?
Guy Kawasaki talks a lot about the “Next Curve” in the context of innovation. He uses an example of a printer company not coming up with a new kind of font, but inventing laser printing instead, in order to get their company to the next curve of innovation.
This is macro level “big thinking”, which has the ability to shape and alter the course of business. But can we take a piece of this type of thinking and apply it to our own business on a more micro-level and still achieve a “big thinking benefit”? You bet we can.
Next Curve Thinking on a Micro Scale
You don’t need to invent the next revolution in personal computing to benefit from next curve thinking.
Let’s look at some examples:
The titan of bulk shopping, Costco, resisted putting express lanes in their stores, and instead opted for lines of people at the register. What are they thinking, are they crazy? Don’t they know that shoppers want to get in and out quickly, and that surely it would be better customer service to add a 9 items or less lane!
Yes, they know this.
They also know that shoppers in an express lane spend less than shoppers without the option of such a lane. In a warehouse super store where you are buying items by the caseload, the last thing Costco wants is you to speed through. At the time going counter the express lane concept was next curve, and it also fattened their bottom line.
Another Example:
Zappos.com hopped on the next curve when it came to customer service.
Free overnight shipping (both ways) and hassle free returns over the Internet – are you kidding me, that’s not possible! It was possible, and Zappos.com is reaping the rewards as a result of thinking next curve in their customer service model.
And Lastly:
Not too long ago when you had a problem with your computer you called your local computer shop and they said “Bring it on down, I’ll look at it in a couple days and get back to you”. Then you unplugged your PC, boxed it up, and dropped it off for the computer guy to work his magic.
What was the next curve here? Mobile computer support. Now I call, they say “We’ll be right out”, a few minutes later computer guy shows up and fixes my computer. Pretty sweet.
Look Inside Your Business to Find the Next Curve
One trend we see in the micro-level next curve thinking is that businesses are taking preconceived notions and breaking them down. They are looking for things that are a “given”, an “industry standard”, or where it’s said “you can’t do that” and then doing it.
Can you see how this kind of thinking may apply to your business? Are there areas in your business model that you don’t do because you’ve been under the assumption it just can’t be done?
Look at areas of your business to spot the next curve — Know where your revenue streams come from, know your customers, and get creative in your delivery model to better serve them. You can go to the next curve without inventing laser printing.
Get out ahead of what your competitors think can’t be done, and remember innovation does not have to be macro, “big thinking”, to give your business the benefit of thinking next curve.
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