Small Business Development Blog

Business Strategy - Undefined Business Model - Business Model Ladder-Level 1

What are the impacts of having an Undefined Business Model for your small or medium business?

The short answer is; the environment will push you around and you may or may not succeed based on chance.

In fact without a clearly defined business model, chances are that your business results will more likely hinge solely on your business having an exceptional product or service or uniqueness which catapults it to stardom.

Stardom; what is the chance of that? 1 in 100, 1 in 1,000, 1 in 10,000, 1 in 1m.... whatever the number I don't like it, that number isn't good enough for me, and it isn't good enough for anyone! So, tell me WHY is it that 95% of small business owners have an undefined business model?

I can feel myself getting fired up about this topic; it's something I'm passionate about! We'll have greater detail on how and what to do in a specific article for each level of the Business Model Ladder as highlighted in the Business Model Overview article, but for now I'll share some insights and impacts on the undefined model. Let's break this down into the three elements that make up a business model;1) the solution, 2) the profit, 3) the structure.

1) Undefined Business Model = Undefined Solution

Undefined Business Model = Undefined Solution = No Point of Difference = No Strategic Advantage = Same as Every Other SME = Average Results

Did the little subheading above sum it all up? Just in case that wasn't 100% clear... look at the questions that need to be asked to define your ‘Solution';

• What it is your business does?
• What value it brings to the world?
• What segment of the market it targets?
• Why it is special/different/unique?

If you don't have a point of difference, and you can't communicate that point of difference, people have no reason to choose you over your competition. You'll have no advantage, and with no advantage you will always have to fight to find good profitable business. You'll be fighting over price with the other 80-90% of business that also have no point of difference. Cutting prices and attracting disloyal price shoppers, and unless you have massive scale like Wall Mart you'll not make the profit you really wish for. Stuff that!!! Define your Solution, find a clear point of difference and USP.

2) Undefined Business Model = Undefined Profit Target

Undefined Business Model = Undefined Profit Target = No Idea of True Numbers Required = No Clear Profit Goals & Milestones = No Clear Marketing KPIs & Plan to Achieve Profit Goals & Milestones = Same as Every Other SME = Average Results

Over the years it seems to me that whenever I ask business owners ‘what are your financial targets?' I get a slightly vague look, so I try a slightly different question, ‘how much money do you want to make?', I get varying degrees of clear answers. But it is this next question which nearly always gets a ‘huh' response;

• What is the financial model of your business when you reach your goals?... you know...
• What Net Profit do you want to make?
  
• What will the total of all your Expenses be? Therefore...
• What Gross Profit do you need to hit? And based on your Margins on the 1, 2, 3 etc difference main Revenue Activities you have...
• What is the total Revenue you need to hit your Net Profit Target?... Oh, and therefore, based on your average sale value...
• How many units do you need to sell?

Too many people run blind into the future without a clear understanding of what the end picture will be. DO NOT chase revenue for revenue sake! STOP, and do the maths. But this is the key point... do the numbers from the Bottom of the Statement of Financial Performance (Profit & Loss Sheet) up. i.e. decide a Net Profit target then work out what Revenue will be required to achieve that. Do not set a Revenue target and see how much profit you'll make!

3) Undefined Business Model = Undefined Structure Target

Undefined Business Model = Undefined Structure Target = No Advantage = Same as Every Other SME = Average Results = Slave to Business = Most Stressful Job in the World = The Average Business Owner

Ok, by now I think you'll be getting the point, being average sucks, why? We have all heard the stats... 80% of all businesses fail in the first 5 years. Now, who knows what the true % is, but if it is vaguely true then that means that a MASSIVE number of business are struggling, they are just above the breadline. Don't be average and get average results, be exceptional and get a better return on your efforts.

With regards to the structure... well, let me put it this way, Do you want a Job or a Business? If you want a Job that's fine, but owning a business; that you HAVE to be at for 50 out of 52 weeks a year for fear it will fall over (when normal employees take 4, 5 or 6 weeks holiday a year), that you HAVE to work 60 hrs a week for a normal salary, that you HAVE to stress about making payroll if you have a bad month, etc etc and all the other brain damage that comes with business ownership, owning a business like that has got to be the most stressful job in the world, you're a prisoner. If you don't want that, then I recommend mapping out;

• What the Business Structure needs to be? That means...
  
• What the Organisational chart will look like?
• What the Roles within your organisation will be?
• What the KPIs for each Role are? These all have the purpose to define...
• What would the business look like to achieve you Profit targets?

And most importantly mapping out your role in the target structure;

• How many holidays will you be able to take and for how long?
• How many hours per week will you work?
  
• How dependent is the business on you on a daily basis or can it run itself? Therefore based on your answers to all the above questions,
• How will the business look in order for you to be able to do that?
  
  

Do this and you'll be way ahead of the pack!

Action Points

Make the conscious decision to NOT be like everyone else, to NOT be average getting average results. You don't 'HAVE' to do anything, by not defining your business model you're in affect CHOOSING to let the environment determine your outcomes and results. CHOOSE your business strategy and CHOOSE to define your business model. Set aside 2 hours each week for the next 4 weeks... time to work ON your business, time to define your business model. If you don't put the time aside, other stuff which you think is important will push it way and you'll never implement this important development, and therefore never get any benefits! Go for it!

 

Business Strategy - Business Model: An Overview for Small Business

What is a Business Model? Why does it matter for Small & Medium Businesses and their owners?

Do you have a clearly defined business model for your business? Do you know what a business model really is? Well, it's quite a vague term... What do we call a Business Model? Well, for our purposes (focused on owners and managing directors of small and medium businesses) we can SIMPLY define a Business Model as a clear understanding and definition of the following for your business;

1. The Solution
   1. what it is your business does,
   2. what value it brings to the world, 
   3. what segment of the market it targets,
   4. why it is special/different/unique, 
2. The Profit
   1. what revenue & margin does it & will it achieve (the current & target profit model),
   2. what are the different revenue activities, margins, & expenses that make up this target profit model,
3. The Structure
   1. what is the target business owners role at the target profit model,
   2. what time commitment is the target business owners role,
   3. what dependence level is the target business owners role,
   4. what resources are required to achieve ‘The Target profit' & ‘The Target business owners role',
   5. what human time resources are required at targets,
   6. what is the organisational structure (org chart) at targets.

Other MBA types may separate ‘the business model' from ‘strategy' by saying that the business model doesn't focus on shareholder value, it should just focus on business value. Hey, and that's fine & strictly speaking a more accurate definition however, for owners of SMEs shareholder value is linked to everything. You see, I'm going to say that value = lifestyle for the MD of a SME. For SMEs value is not just the goodwill of the company or its dividend. So, we NEED to include the elements that make up ‘target business owners role' in your business model.

If you take away one point from this article, it is this...

Define & Design Your Ideal Business Model based on Your Ideal Lifestyle Goals!

Mind Map a visual representation of what your ideal lifestyle would be. Once you do that you can soon see how much profit the business must return you each month to live that lifestyle, and MORE importantly what time commitment and dependence the business requires from you personally to be able to live that lifestyle. This gives you the 3 dimensions of Lifestyle; Money (regular monthly income), Time (regular weekly working hours) & Freedom (ability to be anywhere for any period of time, i.e. how much the Time dimension is dependent on your physical presence thus trapping you to a single location).

Only once you have done this can you open your eyes to the fact that your business is not your JOB! The old 9-5 rules DO NOT apply, if you don't want them to. And now you can design a Business Model that delivers you the return on your effort a business should. Remember, as a business owner, you've likely risked more than 90% of the population, invested more, worked more, and created jobs, created value for the community, the economy & the country. It's time to start using your head more, and get a better return on that effort.

The higher up ‘The Business Model Ladder' you go the more value you get in return from your business. Where do you sit on the business model ladder?

The Business Model Ladder

Level 6 - Revolution: (totally re-inventing the industry, making a game changing innovation to your business model and indeed the market/world)
Level 5 - Innovation: (taking a big jump forward by innovating a new product or service or way to deliver that product or service, a big innovation in your business model)
Level 4 - Kaizen: (the famous Japanese theory of constant never ending improvement in everything, in this case a culture of constant never ending improvement for the business model)
Level 3 - Improved: (moving on from the current defined business model and seeking and implementing improvements to fine tune outcomes)
Level 2 - Defined: (a strong understanding of what a business model is, and a clearly defined business model)
Level 1 - Undefined: (letting the environment push you around, no clearly define business model)

 

Action Points

1) Define your personal lifestyle goals.
2) Quantify the 3 dimensions of lifestyle; Money, Time, Freedom.
3) Set a date to achieve these goals by (3mths, 6mths, 1yr, 2yrs, 3yrs, whatever).
4) Now start making progress on the Business Model Ladder. Start defining!

 

Systematization Process - Phase 4: Re-Write the Rules

Design Your Future Business

Design what your business will look like when it is finished and map out a path of stepping stones along the way. 

Phase 4 of the mimosaPLANET^TMsystematization Process is; Re-Write the Rules. Who said your business has to look like it does today? Who said your business needs to conform with the industry average? Nobody! Because in business your get to write your own rules. So, what happen? Take back that feeling, that desire for control of your own destiny you had when you first started your business and design what it will look like in the future...when it is delivering on the promise of ‘freedom of choice'. Find out the areas you should be designing and re-writing the rules of your business in...

Earlier in the mimosaPLANET^TMsystematization Process, phase 2) DISCOVER & DOCUMENT, we analyzed and documented the current situation. This included; the work-flow processes, organizational chart, volume capacities, the profit model, and utilization rates. In the 4^th phase, RE-WRITE THE RULES, we focus on taking the new work-flow processes, determined from any technology advantage found in phase 3, to create a clear picture of what the business will look like when it is finished. How do we define that ‘clear picture'? By using the following strategies;

• Our New Company Structure - organization Chart Goals (Now, Qtrly, 1yr, 3yrs, 5yrs)
• Our New Company Structure - Position Descriptions (Roles, Responsibilities, Tasks)
• Our New Company Structure - Position KPIs Identification
• Our New Company Structure - Position Volume Capacities
• Our New Company Structure - Profit Model
• Our New Company Structure - Position utilization Rates
• Our New Company Structure - Position KPIs Specification Targets (Below, On, Above)

Specific outcomes of this process will differ for every business and business owner... you see, it's completely based on your outcomes from phase 1 and 3. A business owner with huge personal goals & business goals is going to need a very different business design (i.e. size, shape, profit, etc) when compared with a business owner with relatively modest goals. Whatever the specific goals of the business owner and business, no matter their size or shape, the process is the same. It becomes vital to build a clear picture of the business in a specifically defined time period.

Over time I have found people work well with a 5 year goal for when the business is to be finished (i.e. the business is delivering the owners written personal goals of money (pa income to live the lifestyle desired) and time (free time available to live the lifestyle desired)). Let's look at how 3 different people might approach phase 4 differently based on their desired outcomes....

3 Examples of Business Owners 5 year Goals

Name	Yearly Disposable Income	Hrs worked each week	Notes
Person A	$500,000	0 hrs	Willing to work hard for the next 5 years to sell business and have the option of not working again while still living a lifestyle of $500,000pa.
Person B	$300,000	32 hrs	Happy to work 4 days a week, leaving 3 day weekends for spending time at the holiday home with the family.
Person C	$200,000	20 hrs	Only wants minimum input has a General Manager looking after the day to day. Must have the ability to take 3 month holidays.

 

How Will This Affect Our Thinking When We Design Our Future Finished Business?

Let's look at Person A

Person A, wants to have the option of not working ever again so they are looking to sell their business and let's assume they can get 10%pa return on the invested funds from the sale of the business. They will need (assuming no other assets or investments, & that 10% is after inflation...so they are really getting 13%pa) to sell the business for $5 million. A business that has a goodwill value of $5 million is likely to be producing $1 million pa EBIT (Earnings Before Interest & Tax).

So everything that is ‘designed' in this phase (the organizational structure, all the different roles and volume capacities, etc...) needs to be from the view point of what does the business look like at $1 million pa EBIT? You see, most people work from a sales or revenue figure and then ask... ‘what profit is left?'. Challenge that way of thinking. Build the shape, size and structure of the business based on what profit you want.

Person A's current business could be something like this:

 

Revenue	$1,750,000
COGS	$1,105,000
GP	$700,000 (40% - GPM%)
Exp	$400,000
NP	$300,000 (17% - NPM%)
# of Total Team	15
# of Admin Team	2
# of Production Team	12
# of Managers	1
Goodwill Value	= $900,000 (EBIT x Multiplier)
	= ($300,000 x 3)

New Business Design

Let's say during phase 3 Person A found a new way of doing things and through a series of calculations based on volume capacities of each person in the team doing their job they determine the following design for the business in 5 years time so that they can sell in for $5 million....

Revenue	$4,000,000
COGS	$2,200,000
GP	$1,800,000 (45% - GPM%)
Exp	$800,000
NP	$1,000,000 (22.2% - NPM%)
# of Total Team	26
# of Admin Team	4
# of Production Team	20
# of Managers	2
Goodwill Value	= $5,000,000 (EBIT x Multiplier)
	=($1,000,000 x 5 (better systems))

All this can only be determined by running numbers on different structural options then reworking the numbers again and again until you find the right mix.

The tools to do this are the same as the tools highlighted in the phase 2 article Discover & Document

Simply start with the end game... 5 years from now, get a really clear picture of what your business will look like then... work backwards and set a picture for 3 yrs, then 1yr.... and I highly recommend breaking the 1yr into Qtrly goals. Now you have the setting stones... a path if you like to map out your growth.

This week's Action Points...

If you did phase 1 and set the vision of where you and your business want to be; if you've done phase 2 and you have faced the facts about your current situation and whole business model and structure and determined things have got to change; if you have looked into phase 3 and realize the opportunities you have to do things dramatically better.....if you have done all this you'd be mad not to do phase 4 because this is the point you get to see the future. Never under estimate what clarity can do for you... good luck...

 

Systematization Process - Phase 1: Direction

Starting Your Systematization Process With Direction

Gain Personally Clarity & Huge Buy-In From Your Team Through Defined Company Values, Vision, Mission And Goals! 

Systems only work if people use them or implement them or set them up in the first place. People are the gateway to great systems and for you and other business owners and managers, people means you and your team. People get enrolled and inspired to do great things when they have a clear direction and understanding of why we are doing something and what we are aiming to achieve. A great place to start your systemization process is with your team. Get you and your team firing today...

So, in last week's issue of the mimosaWEEKLY TIP^TM we listed strategies (grouped in phases) which effectively mapped the mimosaPLANET^TM Systematization Process. In this article we are going to focus on the first phase in that process, DIRECTION. Under DIRECTION we have;

• Owner Clarity (Goals & Purpose)
• Our Company Values
• Our Company Vision
• Our Company Mission
• Our Company Goals (1,3,5 yr)

Background, Definitions, Understanding & Examples

Let's get a clearer picture on each....

Owner Clarity (Goals & Purpose)

Read "The 7 Habits of Highly Effective People"..... just do it! If you don't know clearly where you ‘personally want to go, what you personally want to achieve, want is personally important to you, and why you feel like that' then.... you'll likely just drift from day to day, and year to year without achieving your dreams. You get to design your life.... and your business is simply a vehicle which you can use to live your dream life. i.e.

Person A: Wants to spend all their time with family and friends. They want to be remembered as a trust worthy, honest, and family focused person. Likes fishing with mates and kids, holidays in a holiday home during summers. To live the life of their dreams they require $200,000 pa in income and only 20 hours per week for work.

Person B: Wants to spend their time experiencing new things. They want to be remembered for changing the world for the better. Like fine things from architectural homes to exotic holidays...a designer lifestyle. To live the life of their dreams they required $800,000 pa and 0 hours per week for work, thus require an approx net worth of $8m+ based on $8m invested to return 10%pa.

Quite clearly person A and person B have different personal goals and driving purposes in life. To achieve what they want to, using their business as the vehicle, both require different outcomes...and with that different businesses. Person A is happy to continue working but for the most part the stress is removed and someone else is likely to running the day to day operations so they can take holidays and days off often. Person B on the other hand wishes to not work at all and perhaps is more willing to work hard for a number of years to then sell their business for the $8m+ figure. Obviously person B needs a significantly bigger business in annual revenue and profit and perhaps likely team structure to fulfill such profits. As such, the company Vision is likely to need to be much bigger than person A's vision.

Design your own life....then as we said... Grow Your Business and Have a Life^TM

Our Company Values

Values define what is important to your organization. Is it quality at any cost? Is it affordability? Is it tried and tested? Is it innovation? Values guide the way your team interact with your customers, values guide your decisions from strategic focus to the way you handle a customer complaint. Ultimately values will define the ‘get feeling' people get when they see, hear or experience your brand. Believe me your customers and prospects have this ‘get feeling' already....shouldn't you and your team be concerned about what that is and define how you want it to be.... after all how you and your team interact with your customers will determine what your customers experience and feel about your organization.

I like to pick out values and group them together in 3, 4 or 5 groups then define each group.

(Companies sometimes refer to this listing and grouping of headings and meanings as The Company Culture.... I feel these are really in fact Values, as Values drive Culture.... Values are an internal function to drive an external outcome, Culture. You can't define Culture and expect it to happen.... Culture is the result of peoples Values being experienced)

Our Company Vision

Vision is a short and inspiring statement of what your company intends to become or achieve at some point in the future.

Vision defines your company's great big goal; it should be large... almost unobtainable or at least a 10 year super stretch goal. It describes the collective big goal that everyone in your company is striving to achieve. Many examples from companies include vision statements like "to be the number one retail clothing company in the US" or "to be the preferred provider of home cleaning services in the greater Auckland area".

Over time I've come to believe that the best Company Visions are the ones that don't state what the company wants to become but what the company wants to achieve. He's an example from Microsoft - "To enable people and businesses throughout the world to realize their full potential". Vision's which state what they wish to achieve highlight a change an organization is trying to achieve in the environment in which they wish to operate. A vision should enroll and inspire all stakeholders.... customers, employees, managers, shareholders, and suppliers. A great vision will drive everyone in the same direction.

Our Company Mission

What is the difference between Vision and Mission? Simply, where Vision is the goal, Mission is the guide that defines how you will achieve your visions...and it can be made up of 4 parts. 1) Who you are as a team, 2) What business are you in, 3) Who are your clients, 4) What makes you unique.

Our Company Goals

Company Goals reflex directly back to the Vision, they are the road map ahead and the milestones along the way. Using our person B from above, they could start off alone these lines below then drill down to become more specific and tangible....

• Current: NP = $100,000. Rev = $1m @ 10% NPM. 10 Production Team. 2 Admin Team.
• Year 1: NP = $200,000. Rev = $1.5m @ 13.3% NPM. 10% Price Increase + 13 Production Team. 2 Admin Team. Invest in re-brand and position.
• Year 3: NP = $400,000. Rev = $4m @ 10% NPM. Invest heavily in Launching 2 Overseas Markets. (hence NPM erosion).
• Year 5: NP = $600,000. Rev = $6m @ 10% NPM. Install GM. Begin Margin Focus.
• Year 10: NP = $1.6m. Rev = $8m @ 20% NPM. Goodwill Value 1.6m x 5 = $8m.

Creating & Executing

Most business owners and managers attempt to create a vision on their own then force it on to the team buy telling them "this is our new Vision, now get inspired". Naturally the team is skeptical and believe that this vision only serves the interests of the business owner, buy making them more money..... "why should I work harder and get inspired by you making more money and working less" ...is the common employee reaction from such a misguided approach. From working with business owners over the years we have found the best results come from involving the team in the whole process. This way they come up with the company values & vision, and they can take ownership and accountability for their behavior and actions toward it.

You can still guide the overall direction and outcome of this by either a) being the KNOCKOUT LEADER you should be, or b) getting a specialist facilitator to run some of your team workshops.

Any new potential employees are told right at start of the interview process about your company's Values & Vision and you can hire those that are enrolled and inspired buy it and leave more skilled candidates if they aren't excited by your company's direction.

Buy getting you and your team 100% clear on the direction you will get buy-in to transform your business... because odds are that to achieve your vision you will need to get everyone on-board to continue, or really ignite, the systemization process which will greatly assist you to achieve your company vision.... and in turn your personal goals.

Example of mimosaPLANET^TM's Vision, Mission & Values

Our Vision
 "Freedom of choice for business owners across the globe through knowledge and actions"

Our Mission

We will always strive to make further gains in the effectiveness of all people and businesses that we come in contact with. We believe it is business effectiveness that is the key to fulfilling the main desire of people that go into business for themselves, freedom of choice to be in control of their own future and create their life as they wish. Our clients will be proactive and keen to get results. We will service people who are first starting out in business, right through to people that have been in business for years. Our team will always have the highest levels of integrity and thought. We will live our brand values in every decision, interaction, product and service. We at all times give value to all that we come in contact with. We promise to deliver Solutions and not just theory, and to be a trusted source of wisdom the world over.

Our Brand
Experience & outcome focused
Our role is to be the brand of choice with business owners, entrepreneurs, and the self employed. We do this by focusing on and delivering our founding brand values. We created the mimosa brand with these values and principles in mind. It is the underlying depth from which mimosa gets its strength, and delivering on these values is at the forefront of every decision and interaction we make.

Our Brand Values
More than just words

This week's Action Points...

I have said it before, but did you do it? Book out a regular 2 hour weekly team training / workshop session, or fortnightly at least. This is not a once off, "let's create a Vision in this special meeting then move on"... it is a regular commitment to driving business development as there will always be something each week to work on. I suggest starting with the direction phase of the systematization process, so book that time in your diary and LEAD your team. If you believe a third party would be best to help facilitate this change contact us about how we can add value, our focus is the same as any business development you would initiate yourself; to drive the desired outcome and deliver return on investment. Investing $1,000 to gain $10,000 or $30,000 to gain $300,000 is a no brainer, right?

Take action today!

 

Ideas into Action - "Mind-Blowing" Projects

Ask Yourself This Question...
When Was The Last Time You Used The Words "Mind-Blowing" To Describe New Initiatives, Ideas, Plans, or Projects In Your Business?

Is it never or seldom? Or perhaps it's "we don't have Projects, we sometimes come up with new ideas and some of them get implemented with various degrees of success, nothing Mind-Blowing though, and some ideas just fizzle out"!

This is because you haven't had a clear label or description of what to give these ideas. Or, a clear picture of what's involved (a loose process almost) to make that worthwhile and what that really could mean to you and your business. Introducing your new best growth tool and ally the ‘Mind-Blowing' Project!

This is the conclusion, and the next logical step, to putting the basics of Business ‘Strategy' into action. Recall the Strategy Segment that we've been covering over the last few weeks:

6/12/07 Plans Are Dead / 6 Element Growth Cycle / 2pg Quarterly ‘DOING' Plans
13/12/07 Profit Goals / Break Even / Profit Models / Direction
20/12/07 Reading List
17/01/08 Innovation vs Design vs Product Focus vs Customer Focus = Strategic Focus = Dream
24/01/08 MindMaps
31/01/08 Mind-Blowing Projects

So What Is A ‘Mind-Blowing' Project?

Well, a project, is simply doing a task or series of tasks with some results. A ‘Mind-Blowing' Project...

• Enrols & Inspires... (You, your team, your customers, everyone!)
• Counts.
• Makes a difference.
• Gets you jumping out of bed in the morning.
• Gives you something to Brag about. (* see examples)
• Puts a Dent in the Universe. (** see examples)
• Is MIND BLOWING!

Here's some examples...

I remember Brad Sugars, telling me how he had sold the Master Franchise to the Greater London Area in his company for 1 Million Pounds! Well, not so much telling but more bragging, and I bet you he's still going on about it today. The point is, that was the result of a Mind-Blowing Project, something that he and everyone in his close team was enrolled and inspired to achieve, spreading the franchise to help others.

Steve Jobs, had his whole development team so enrolled and inspire when making the new Apple Mac they were working 19 hours a day, he used these words... "Let's be Pirates" and "Working 19 hours a day and loving it" and "Let's make a Dent in the Universe".

Why have an idea, an initiative, a plan, a business, a project and then just sort of give it a go. Why bother ... This is what I want you to do, no urge you to do! Think of your business like a wallet, and all of the projects (initiatives, ideas and plans) that you have on the go are individual notes inside your wallet. Now, consider the best note to have, a $100 note, right? The worst, $5 note. Stop what you are doing and on a scale from $5 to $100 rate each of your projects...

$5 - "The same old, same old"
$10 - "This will improve things"
$20 - "Ok, this will definitely add value"
$50 - "Yeah this is awesome"
$100 - "MIND BLOWING - we are going to revolutionise the planet"

Drop the small chump change and only work on projects that have a massive goal. What's the scariest thing about this? You're going to fail and fail big. But hey, one in 10 or one in 100 will make all the difference with your business results, and this is what will lead you to great success.

Are Mind-Blowing Projects easy, heck no, that's why they are Mind-Blowing!

Here's a few ideas to get you started...

• Get excited, get passionate, get engaged, get enrolled, get inspired... it shouldn't be that hard! After all, it's a Mind-Blowing Idea, right?
• Get others involved.
• Thrash through your idea and modify with the feedback and arguments of others.
• Get a quick Prototype sorted.
• Let the momentum build by speed and small wins.
• Brings more people into the Project and modify and prototype your way to a decision... Yes lets Fully Design, Discover, Plan, Create, Make, Implement, Make it Happen or NEXT Project.
• If it's yes, make an impossible to keep to schedule then keep to it. Deliver on time and change the world!

Just think of it this way, Mind-Blowing Projects are the difference between; A) Average... with stressful business results and B) No. 1 in Industry, in Local Area, in Country... with all the rewards!

This Weeks Action Points...

Rate your Projects, ditch your crap ones and get excited by the best one and turn it into a Mind-Blowing Project! Enjoy...

 

Making A Decision - Here's How To Decide What You Need To Do Next

If You Find You Have Lots Of Ideas And Lots Of Things On The Go In Your Business But You're Not Really Nailing Any Of Them To Get Amazing Results Read On...

If you're like most business owners you're probably not too short on ideas for your business, in fact, you might even have so many that trying to implement them all just doesn't happen, or you might have half a dozen on the go at once with none really ever coming to anything spectacular.

Hey, embrace it! This is a great thing not a bad thing, without it you probably wouldn't be in business for yourself. What's missing though, is a method to make sense of it all, a process you can go through on a scheduled regular basis to make projects & tactics work so your business dramatically improves.

Here's a simple and highly effective tool that you can use straight away...

MindMaps! A MindMap is basically a brainstorming technique or diagram in which you can express ideas, words, tasks, tactics, projects, or anything linked to and based around a central key idea, subject, area, segment, thing or word. MindMaps can greatly assist people to get everything out of their heads and gather information from multiple pages of scattered notes to visualise, structure and organise ideas to aid problem solving and decision making.

By heck, this just sounds like the right solution, doesn't it? I use a big whiteboard with lots of colours or simply a piece of paper and some pens. But, do be aware when the ideas start flowing you want them to look different, so it would be best to have a different colour for each idea (you may need 10 colours!) and you may find an A4 piece of paper is not enough to capture all your thoughts.  Just start with a central key issue or area and start breaking it down into ideas or sub-areas as these thoughts come link them to the centre... take a look at what a mean...

At the end of the day there are no rules, and that's idea. Inventor Tony Buzan suggests MindMaps work with the brain and not against it by connecting portions of information, unlike traditional linear methods of note taking. So, just rip into it, whether it is an issue you want to resolve, like poor cashflow, or your business as a whole with each branch a different area (i.e. sales, marketing, money, team...) and what projects, strategies or tactics you've got going on.

One of the biggest benefits I find with the MindMap is the ability it has to make it obvious that one idea or item can happen until another one happens, so what I often do is end up linking ideas and at the end putting a number by perhaps 5 or 10 items or ideas which needs to happen first, then the next one, etc. Now what do I have? .... Order! Clarity! ... The Next Steps... The Next Weeks "Important" tasks... The Next Months "Important" tasks... or The Next Quarters Important tasks...

So what's the process?

This is the oh so simple part, in order to make this a process a part of what you do to make sure you keep getting clarity and focus to do the "Important" tasks that will drive your business forward... all you need to do is do it on a regular schedule... Here's some Suggestions;

Weekly - For an individual Project or Tactic you currently have on the go. Early Friday afternoon 1pm (before the brain goes to mush!). This gives you next weeks' tasks to keep you on time.

Monthly - For a Segment of Your Business and its Issues. On the last day of the month. This gives you next months' Projects and Tactics.

Quarterly - For the Business as a whole. Just Before you do your 2 Page Quarterly "DOING" Plan. This gives you next quarters' Segments to Focus on for a specific Goal. 

This Weeks Action Points...

Give it a go! Start this Friday afternoon, don't just file this away and think, "that's a good idea, I should try that...I'll get back to it soon" ... news flash if you do that, there's a 99% chance you'll never use it so, use it (tomorrow) or lose it!

 

Strategic Focus - Which Of These 2 Ways Does Your Business Bend?

Reading This May Change Your Strategic Focus...

Ok first, what is Strategic Focus. Well, it's really the direction you're taking your business in, it's how you and your team think about what you do and your customers, it's the core product or service that you offer the world and from that... it's the value your business delivers to the world. If you don't deliver great value, then one of two things will happen... either the business will go broke or you'll only ever be average and be slogging it out for years in the crowd. Deliver great value and your business will go crazy. No strong value = no strong Strategic Focus... So, do you think it could be worth determining where you are focusing now and what you may have left out?

Your Focus Is Likely To Sit In One of These Two Camps...

• 1)Product Focus (Innovation & Design)... "Just look at all these features, aren't they good".
• 2)Customer Focus (Needs, Wants & Frustrations)... "We will help you and many more other benefits".

Have you got a Product Business or a Service Business?

The most common thing I see are; business owners with a service business that have a Product Focus. I ask them, have you asked your customers and your target market some key questions about their Needs, Wants and Frustrations?.... the reply I get is almost universal... "Well, not as such, you know... in a formal way, but I know what they want anyway, and I've been doing this for years now and we do what we do to the best of our ability and give great customer service" That's crap people!!!  .... In fact, it's a Product Focus just without the innovation and design, it's a Company Focus.

So, what is a company that both... doesn't focus on a customers' needs, wants and most importantly their frustrations (all designed to keep customers happy and satisfied), and furthermore a company that doesn't focus on delivering a product focus that screams innovation and cutting edge design that will wow the market and bring in new business (ps service businesses can have a true product focus of innovation and design by inventing a new way delivering that service) .... what is it that a company like this is really saying to potential buyers????? "Hi we're Bob's Window Cleaning Company and we clean windows, take it or leave it!"

Most will leave it. Some will take it but if there are one hundred window cleaning companies in the market (the market is whatever you want it to be, your suburb, your city, your country, your world... your niche product/service, wider industry, multiple industry offerings) you will find in almost every market there is a hugely & widely successful "No. 1", 9 other successful alternatives, and 90 also ran look alike companies. This is where most businesses sit.

Limitations and Strengths Of Each Focus...

Product Focus: Steve Jobs, co-Founder and CEO of Apple gives us examples of both the strengths and weakness of having a blinding Product Focus. Firstly, Apple was founded on innovation and design, their first marketable computer in the very early 1980s, the Apple II, was incredibly successful and launch the company to stardom, however in 1984 the much hyped launch of the new Apple Macintosh computer occurred and sales never hit predictions (and the company slowing almost died), why did the Mac not sell? ... the company was so Design Obsessed that it didn't even consider what the market wanted, they didn't ask the customer... "So what's important to you? What features do you like? Really, why is that? What frustrates you about current computers? What would make this better?"

Apple didn't recover until the release of an off the wall, totally cool, design focused, innovation explosion ... the iPod ... and we all know what a huge success that is. What can we learn from this.... well, being a shareholder of Apple for ten years would of sucked, but in essence Product Focus has made them who they are today. Having a Product Focus, has great strength when innovation causes a break through... something WOW, something amazing that dazzles customers when they first learn about it, it causes buzz and it causes sales ... The challenge is... that if you are too arrogant and don't ask the customer for feed back at all, you might not sell a thing because it just misses the mark.

Customer Focus: When you do market research and customer satisfaction surveys you build a very powerful asset... understanding. The more you understand about your customers and the market (potential customers... your prospects), the better you will be able to design a product or service that, meets their needs and wants and removes their frustrations. It makes so much sense really! The challenge is that is can polarise your thinking to that of the masses. So you produce a product or service that is just marginally better than other companies' offerings.

You see, we are now living in a "me too" or "same same" economy... I mean, just look around... you can get basically the same product or service from heaps of different companies. By having a customer & market focus only, you will likely be leap frogged by a new innovation and be playing catch up. Think NZ Telecom with its online venture http://www.ferrit.co.nz/ . Now, do you think it would be possible that NZ Telecom with Net Profits approaching $1bill pa would have done a few feasibility studies, extensive market research and customer satisfaction surveys for Ferrit? You would think so, right?... In fact they have sunk $36 million into this project to date... WOW... and the result....It's a dud! People saw the cool ads on TV jumped online, had a two minute play, totally unimpressed jumped off and never came back... so much so that in the busiest retail month of the year December 2006 revenue was only $12,500!  

What is the challenge for NZ Telecom?... It's the fact they were (still are) playing catch up. People have been able to buy online for years.... if you want to buy something then simply Google search what you're looking for and it will give you all the best options then you can jump into an online specialist store for whatever you are looking for that has been retailing online for years in that niche... they do it well. So, when NZ Telecom builds a site and we search and can't find what we are after straight away we just leave. No amount of customer focus will overcome the fact their product basically sucks and is un-innovative, they are not going to be better at searching than Google (a search engine specialist) and they are not going to provide better online retail experience than Retailers.

So Which Is The Right One To Focus On, Customers or Products?

Easy answer here...there is no right one! You need to focus on both.

The Third Alternative...

Having a strong Strategic Focus in your business, could mean a whole new way of thinking, a whole new way of doing in your business... which could lead to a whole new kind of result! To develop a winning, strong Strategic Focus for your business... think SOLUTION. Not product, not service... but SOLUTION, a world where it's a better way, the best way! ... Go beyond that and you start thinking EXPERIENCE, where you focus on what the experience is like for your customers dealing with you, your team, your company, your products, your services... what sort of experience are they having.  ...

Beyond that, start thinking DREAM, a focus on the emotional feeling of the almost unobtainable ... (think I'm going too far with this "soft" stuff?... just ask Ferrari or Harley-Davidson or Virgin... you aren't buying a flash car, motorbike or plane ticket to the Gold Coast... you are buying the ‘feeling' of owning Ferrari or the ‘cool feeling' of flying with Virgin, you're buy a dream life!)

STRATEGIC FOCUS - VALUE LADDER

 

This Weeks Action Points...

What do we do now... visualise, envisage, invent, make up and dream up a new business. Those that get the rewards in life... do something truly spectacle. Start by evaluating your honest position, your honest Strategic Focus, your honest Value you deliver to the world. Keep doing what you've always done and you'll likely get what you've always got. Get some emotion behind what you and your business does, get angry, get mad, get different, get excited, get passionate, get your team involved... start talking to people, to everyone, customers, failed sales prospects, competition, suppliers, industry experts, non-industry weirdo friends... start dreaming. Collect your thoughts in a Dream work until it all makes sense then create and live the new strategic focus driving you toward - A DREAM LIFE!

 

Profit Goals - Not Making As Much Profit As You'd Like?

Are You Making Sure Your Business Is A Profit Machine By Using These 3 Simple Tools?

A Profit what? .... A Profit Machine! Your business should produce profit.... how much Profit? .... Whatever ‘Monthly Profit Goal' you decide you want! That means you also need to know your ‘Monthly Break-Even Point' at each different ‘Monthly Profit Goal' Level. You see as you increase your ‘Monthly Profit Goal', your business will need to be slightly different (more staff, more marketing, bigger building, etc ) to achieve that new desired ‘Monthly Profit Goal'... this means you also need to determine the ‘Profit Model' at each Level or stage of your business!

Ultimately what we are talking about here are 3 tools you need to be using to determine what "direction" you will be taking your business in. Why? So you can create a Profit Machine of course... that spits out profit predictably and sizably. If that interests you, then discover how to do these simple calculations and questions in your business today so you can proactively shape the direction of your business to print money!

Get REAL!

How about a Reality Check. Now, most people in business have some understanding about the numbers, but in my experience that understanding is based on the original figures they went into business with or assumptions which just aren't true. To determine the direction and what the impacts of you future growth will be, you need to do a few simple calculations and ask a few questions. And if you think that yes I already know this, I've done these before, ....well.... are you monitoring them, because in all likely hood they have changed since you last did them, and it could be that it is in fact impossible to get the growth in profit you want using the current ‘model' or structure. Stop thinking a 10% increase in sales or revenue will automatically yield you more profit. Did you ever stop to consider some of the following points in your calculations ...

Current Monthly Break-Even Point

Gross Profit (GP) = Revenue - Cost Of Goods Sold (COGS) | Eg1; $150,000 - $100,000 = $50,000

Gross Profit Margin % (GPM%) = GP / Revenue | Eg1; $50,000 / $150,000 = 33.33%

Net Profit (NP) = GP - Expenses | Eg1; $50,000 - $40,000 = $10,000

Net Profit Margin % (NPM%) = NP / Revenue | Eg1; $30,000 / $200,000 = 6.67%

Break Even Revenue = Expenses / GPM% | Eg1; $40,000 / 33.33% = $120,012

Ave Sale Value (ASV) = Revenue / # of Invoices | Eg1; $150,000 / 400 = $375

Break Even Invoices = Break Even Revenue / Ave Sale Value | Eg1; $120,012 / $375 = 320

Monthly (Net) Profit Goal

In.... 3mths = $15,000 pmth ...6mths = $20,000pmth ... 12mths = $30,000pmth ... 24mths = $30,000pmth (with a General Manager).

Profit Model

Work Backwards! Start at profit and work upwards through the key figures in the Profit & Loss Statement to determine the new Expenses with any extra resources needed (plant, equipment, vehicles, marketing level, buildings and staff).... then conclude if your GPM% will change or stay the same to get to your new revenue figure. If it's the same...

AT 3 MTHS: Is this Possible... $15,000(NP) + $40,000(Exp) = $55,000(GP) / 33.33%(GPM%) = $165,017 / $375(ASV) = 440 Invoices

Target Monthly Revenue = $165,017

So the real question is... Can we do 440 Invoices with our current resources (The Current ‘Model') or are we totally at capacity? To answer this we must determine our current Utilisation Rate (UR). UR does change and differ for every business, so you'll need to consider and look for different things, but here are some basic examples.

Utilisation Rate (UR)

Eg A - Retail Business Selling Widgets:

Can we handle this increase of 40invoices per month?

UR = Average Enquiries & Orders per day per customer services person to process

Current Enquires per day = 40

Current Orders per day = 400(Mthly Invoices) / 20 (working days per mth) = 20

Conversion Rate = 50%

Ave Time Per Enquiry = 3 mins

Total Enquiry Time = 40 x 3 = 120mins

Ave Time Per Order  = 6 mins

Total Order Time = 20 x 6 = 120mins

COGS = 8 hours per day

Revenue Activities = 120mins + 120 mins = 4 hours

UR = 4 / 8 = 50%

So by looking at this we could say that if this ‘customer services person' only had to deal with enquires and process orders then we could do up to double the number of invoices that we are at the moment. 400 Invoices at 50% UR, at 90% UR we could do 721 Invoices.

However, in most Small Businesses it is likely that the Customer Services Person will have other roles and responsibilities, i.e. they could be an admin person and additional to answering the phone enquiries and processing orders they may have the other 4 hours of the day totally packed with bookkeeping tasks, Accounts Payable, Accounts Receivable, Posting, etc... So ...

At the 3 Month Profit Goal we only need an extra 40 Invoices done which is;

Orders:  40 x 6 mins = 240mins / 20 days per mth = 12mins per day

Enquires: 40 orders / 50% conv rate = 80 Enquires x 3mins = 240mins / 20 days per mth = 12mins per day

Total extra time per day 12 + 12 = 24mins

So, can this person handle that? Or do we need to outsource some of the bookkeeping tasks to free her time up which will increase her ability to do more Customer Service work but also increase Mthly Expenses with a new bill for an Outsourced Bookkeeper? An increase in monthly expenses means we need to recalculate the Break-Even Point and then we'll need a new Target Monthly Revenue!!! Which means more Invoices, which means more time to complete those invoices and enquires, which means more pressure on resources!!! THINK ABOUT IT!

Eg B - Service Business:

Can our Operations Team handle this?

UR = Average Billable Hours per day per service person

COGS = 8 hours per day

Revenue = 5 hours per day (Doing Billable Work)

UR = 5 / 8 = 62.5%

If 62.5% = 400 invoices, then 100% = 400 / 62.5% = 640 invoices pmth, at 90% UR ( = 6.8hrs ... rounded to = 7 hours per day) = 640 x 90% = 576 invoices is probably a realistic capacity level at current ‘model' (staffing levels).

8 hrs x 5 technicians = 40 hrs x 20 days = 800 Total Potential Monthly Billable Hours

5 hrs x 5 technicians = 25 hrs x 20 days = 500 Total Monthly Billable Hours

7 hrs x 5 technicians = 35 hrs x 20 days = 700 Total Realistic Capacity Monthly Billable Hours

500 hours / 400 invoices = 1.25 hours per invoice

1.25 x 40 (extra invoices for Monthly Profit Goal 1) = 50 hours / 5 technicians = 10 hours / 20 days = 30mins each day.

Increasing technicians from 5 hrs Billable per day to 5.5 hrs Billable per day. So, it would seem that we wouldn't need to increase the operations staff or resources like new vehicles / building to handle the extra 40 invoices.

Can our Sales Team handle this?

Let's say we have a Business Owner who is the Sales Person as well as running the place, to get the current 400 invoices all sold in the first place, Mrs Business Owner spends 10 hrs per week as the sales person (in total they work 60 hrs per week so have no capacity or desire to increase the number of hours of total work). However, only 10% of work requires a sales presentation, the other 90% are handled by the admin team just taking a phone order.

40 more invoices is 10% more business from the current 440 invoices. So logic would state Mrs Business Owner at 40 invoices extra x 10% = 4 more invoices requiring a sales presentation, but she only converts 50% of the sales presentations so would need to do an extra 8 sales presentations over the month (4 / 50%). Well, at 10hrs per week x 4.33 wks per mth = 43.3 hrs (2598mins) pmth on sales presentations she must take ...

400 invoices x 10% = 40 sales presentation 'won' invoices pmth

40 / 50% = 80 sales presentations pmth

2600 / 80 = 32.5mins per presentation

8 extra presentations x 32.5 mins each = 260 mins pmth / 4.33 = 60 mins pwk extra.

Most business owners could handle an extra 1hr pwk (4hrs pmth) for an extra $5000 NP pmth, but only you can determine if this is sustainable and in all likely hood you will reach a snap point, when 60hours was ok, 61 hrs ok, 62hrs we flip out or melt down so we need to change the model.... what about employing a f/time sales person for $5000 per month, and you by back 10hrs per week and they are only running at 25% utilisation rate, but they are paying for themselves from day one?!?!

Can our Admin Team handle this?

!!!!!! remember they have an extra 10% more invoices to create (40) and also the extra load of more phone orders. Etc, etc....

Will our Marketing Expenses go up which will adjust our Break-Even Point?

Confused Yet?

Hey look, my point here is really to challenge your thinking, you simply need to ask more questions about the direction you are taking your business. You can see above how with the more information we gather we dig to a new layer of information, and again and again. Scratch Below The Surface To Find The Truth!

This Weeks Action Points...

Get out a piece of paper and / or use a spreadsheet, but start thrashing some figures around that go beyond the surface Revenue and Profit. Thrash about the figures that ask..."Is this possible with or current resources?" ... "What is the maximum revenue and profit using our current resource?" ... "What is our current utilisation rate?" ... "What extra resources will we need at that level?". Answer these questions and others on this tangent and you can get a true picture of where you need to be to create a Profit Machine to your desired level. Note: It's almost always bigger that you first thought.

 

Small Business Plans Are Dead - Why 97% Of Business Plans Are A Waste Of Time?

...And What The Alternative Is That Will Have You Kicking Ass And Taking Names...

Most Business Plans are rubbish! Small Business owners like you have very little free time, why on earth would you spend 20 hours developing a pinpoint accurate, fail proof battle plan? ... There can be only one reason... to get a loan or overdraft from financiers who are employees with no clue about small business that are just following the system that has been handed down to them from an archaic bureaucratic giant, making them powerless interchangeable robots. Every other reason is pointless!

So stop feeling a little guilty when people talk about business plans to get growth, development or improvement. Stop feeling "yes, I should really plan... to get me to the next level... if only I had some time" ... hint: if you haven't done a detailed business plan before (other than for finance), you won't be likely to do one in the future. So discover the true nature of business growth and get a very practical simple tool (The Two Page Quarterly 'DOING' Plan) that you can use today to help ensure things don't just happen by accident or more importantly that things change. Put yourself in control of the direction of your business now...

What's your beef?

Planning is not king, just ask the US Government. The US had a very detailed plan, of well... everything. Somewhere near the top would have been the protection of its own people, with detailed plans of what to do to prevent war and what to do when in war with another nation. All the planning counted for nothing in actual reality when 9/11 rocked around, why? Because it was an event that was unforeseen and not expected, tactics had to change quickly. To me the new enemy of America has rung in a new era! The change from a world where planning was king, to a world where being adaptable, active and constantly moving by doing stuff wins.

Business growth doesn't follow a set process or a step by step 'how to' or a detailed plan! You might spend 20 or 40 hours writing a detail plan only to have the whole direction and overall strategy and plan of the business turned on its head after taking a month to implement it! What a waste of time!!! Far better is to build and spiral business growth through the addition of what you know at any particular point in time. Business growth happens in a CYCLE.

You don't need to ensure you do steps 1 through to 6 before you can do 7, yeah sure in a theoretical world it would be better, but hey let's face it, you might learn something then simply implement it in your business without a detailed analysis and plan. That's great, that's one cycle. The next time around the cycle you might choose to do a bit of a plan before you implement anything. In total there are 6 crucial elements to business success in each cycle, pick one on the first cycle when you are running with a new strategy or developing a segment of your business, the next time round the business development cycle pick two, until you are doing them all. Understand this and you can spiral your growth faster and faster upward for massive results!

What is The 6 Element Growth Cycle?  

• 1. Learn
• 2. Discover
• 3. Plan
• 4. Create
• 5. Implement
• 6. Record & Report

 

This is not like a 6 steps system where you need to complete step 2 before you go to step 3, it is a cycle or continuing upward spiral (tornado).

 

It starts with a small diameter and only 1 element, Learn! As an idea gains strength in your mind, (let's say it's for a Marketing Campaign to Mail Box Drop the local area to increase new enquiries in your business), at a critical point the information you have learned clicks over into intent or a decision to run with it. The cycle now gets a little bigger as you pick another element, you might jump straight into Implement by eMailing a file of an old brochure you have to your printer to get 5,000 copies printed and delivered asap in your local area. Then you might learn that you can get a better response if you use Direct Response Advertising Techniques in the flyer, so you Discover through a quick analysis survey what is really important to your customers, then you Create a new Flyer that employs the correct layout and message, then Implement and time you decide to Record & Report to understand want results you are getting and whether or not the campaign is a good investment or not. Chances are if you tried to plan this all out getting it right first time, along with dozens of other strategies you'd still be trying to write it and never have done anything!!!!

 

Each time you go around the cycle you get to pick which of the 6 elements you will do. i.e. when first looking at an area in your business, or strategy you want to run with, on the 1st cycle you may choose to do element 1. Learn then jump straight to element 5. Implement, because sometimes you don't need to Discover more information (an analysis) or build a detailed and time consuming plan. In cycle 2, a week later or 6mths later you may now choose to do some more detailed Planning before Creating what you set out in your plan then Implementing it and Recording & Reporting it.

 

You can see that this is a much better approach to business, it understands that, we can only do what we know at any given time, and as we learn new things we implement them. It is not practical to always expect a large learning phase to increase knowledge, then a detailed and accurate plan in which to follow, when a simply change would have been more effective and efficient and would have achieve a results... successful or not... a result will bring you closer to the desired outcome than detailed planning and inactivity ever will. Over time, through the continuing upward growth spiral we can choose more and more of the elements in each cycle to create more and more synergy thus better and better results.

The 7 Key Segments of the 6 Element Growth Cycle    

1. Strategy                         

2. Marketing

3. Sales

4. Systems (Operations)

5. Money (Finance)

6. Team (Human Resources)

Each segment is important, Operations is often strong in a lot of businesses however, Finance, Strategic Thinking, Sales, Marketing, and Human Resources have great opportunity for improvement in most businesses.

Hang On... Where's The 7^th Segment?

In the center of a Tornado is the eye. You are the eye. The bigger the eye is the bigger the Tornado becomes. The bigger and better you are, the bigger and faster your business growth will be. Where do you need to focus? Learning and Personal Development, Time Effectiveness, Principle Focus, Mindset, Fun and Direction.

Out of all the 100s of business owners I've talked to over the years it is always one of these three factors that are holding them back:

1. Focus

2. Knowledge

3. Behaviour

What is the hurdle that most business owners face?

It is how to ‘Create' whatever needs to be done. I mean... let's take the area of ‘Sales' in your business, let's say you want to improve your results... close more deals, increase your revenue without spending a cent on marketing by increasing your conversion rate... then you've probably heard that you should have ‘Sales Scripts' in your business for you and your team, for answering the phone, taking an enquiry, doing an onsite visit, greeting a walk-in customer.. etc.

Heck, me and every other business adviser you talk to, or book you read, seminar or workshop you attention have been ramming this strategy down business owners throats for years. Let's say you decide .."Right I've got the message, I can see the benefits, I'll do that, I'll get sales scripts implemented right across my business". But before you "Implement"  the scripts, you must sit down and write them... it doesn't take long before you realise... "Where do I start? What do I say? Should I use the computer or paper? Just what am I trying to do here? I don't know about sales psychology? Oh, to heck with this!"

Often overwhelm sets in and well, nothing ever changes because there's a lack of depth of knowledge in the subject... yes we know we should have a script but, we don't know how to "Create" a GREAT script. So what's the solution:

• 1.Either you invest more time to "Learn" more and more on that one particular subject or strategy or segment in business so that you can "Create" whatever you need to be able to "Implement" that strategy and change. While I'm a big advocate of - The More Knowledge I Have The Easier Everything Is! -, the reality is few business owners have the time available to become subject matter expects in ALL the segments of business and ALL the strategies and tactical method details. Businesses with little available cashflow, favour this approach but the result is often no change because they simply can't learn everything fast enough.
• 2.That leaves outsourcing to subject matter experts who can "Create" and assist with "Implementing" strategies. Long the domain of only big corporations with deep pockets, outsourcing is increasingly becoming a very viable option for small business owners. While this certainly won't work for everyone it is worth looking at, you'll be surprised how many of my clients now outsource to mimosaAPPROVED^TM Trusted Experts, to just get the job done and reap the rewards of someone else creating. But for many, this is still a little hard to do in all segments of the business as cashflow is not endless, so it still leaves gaps....read opportunity to improve.
• 3.Early in 2008 watch this space for developments and updates on a revolutionary new solution. mimosaADVISER^TM is an On Demand Business Development Solution for Small & Medium Business Owners that are looking for increased profits and more free time. The mimosaADVISER^TM solution includes powerful educational and advisory sessions that increase knowledge and help people Learn; through subject matter experts via engaging interactive video presentations online. But perhaps the most unique and powerful feature is the Create function, which through editable online business development assets, tools and templates in every key area of your business (including marketing, sales, team, money, operations, strategy and personal effectiveness), gives you assets like; sales processes, sales scripts, direct mail letters, print adverts, recruitment systems, time management systems all in the one integrated suite of powerful business development principles, strategies, methods and easily customisable tools to help you start, run, grow and exit your business. All designed to help you create a business which gives you freedom of choice. This will shake up the whole business advisory, development and coaching industry!

How can I chart my own course?

Ok, in the mean time you need a solution now, right? I've used this method for a number of years, getting really complicated in the past, now I've cut it back to basics... I've settled on a Two Page Quarterly Action Plan. That is a 3 month plan or list of strategies, tactics, and segment goals all on one A3 page that you can stick to the wall and work off. The year breaks down nicely into 4 quarters, setting goals and reviewing in this time period smoothes out any monthly fluctuations in purchases and profits. Plus you can actually make an impact in 3 months. In 3 months you can change things, you can get results, you can see a result!

This Weeks Action Points...

December is a great time to reflect and project. A great time to do a one page quarterly plan, for JAN, FEB, MAR next year. Follow this link and download the following template Action Plan Template, eMail it to your printer and get it printed on A3 paper and posted back to you (it's called leverage, you'd spend more in petrol getting there and back so don't do it) go back through the last 5 months of the mimosaWEEKLY TIP and print them all out, and pick strategies to work on in the next 3 months. Do this now to start next year flying.