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Posts Tagged ‘Recession’

Report by Don Farrell

So a possible customer calls me and asks if I can support them make income. Reality is I want to say indeed right absent, but I don’t know until I am in a position to conduct an assessment…a actuality journey of the scenario if you will. I inquire them massive photograph types of inquiries and inquire them what the goal is. Then I have them shopped over the cellphone and/or in individual…often each. This way I have the client’s perspective and that of the likely buyer to that client. I have sufficient to now go in and consult employees and client’s of this possible consumer what they feel. Typically no far more than a week of this and I have a darn very good thought what the predicament is and how to repair it so this customer can increase revenues and revenue. I create an aggressive short, medium and extended phrase strategy and tactical prepare comprehensive with action steps, timeline and believed required investment. If they agree to the plan we then sit with a lot of authors (personnel) to get their purchase-in and input to make the prepare even much better. To get the personnel to assist in the program needs instruction skills and occasionally it is just communicating, but we do it inside of plain sight and contain totally everyone. So wherever do I now usually commence to attempt and make an economic affect with this client?

Low lying fruit. We appear at the potential enterprise that is previously making an attempt to come into my newest client’s company initial and foremost. Why go scaring up new clients just nevertheless when we could have some really great ones already attempting to get in? We appear at the mobile phone inquiries, stroll-in shoppers and likely shoppers, e-mails, internet site Search engine marketing and even people that still write letters to corporations. Any and every channel that a possible consumer would use to speak to my client is what we analyze. From that evaluation we develop a prepare that will get this 1st impression to be the extremely greatest it can be and far better than each and every competitor we will shop for this client. Once again, this might consider instruction or it may just be communicating expectations and maintaining everybody accountable…particularly us.

Here is 1 TRANSACTIONAL Selling example that we created an market finest and industry normal in the hospitality world at http://www.Signatureworldwide.com. An preliminary phone phone, e-mail or prospective consumer walks in. Here are the a lot more crucial aspects of the marketing and support system that we would apply:

1. Reply the mobile phone in three rings or significantly less with an accepted and upbeat greeting. Say something that will pleasantly shock an individual…like: “Thank you for calling the award winning XYZ, this is John, how may possibly I help you?” They indicate they are interested in your product or support so you go to the next stage.

2. Qualify. What dates, how several individuals, what product or service. “Whilst I am checking on that availability, might I ask what brings you to the area?” if you are a hotel. “To much better serve you may I consult what you will be utilizing this dump truck for?”…. if you are an products rental spot. The far more you know about your prospects wants, the better you can get better care of these needs and perhaps market them added issues they may not have identified you could take care of for them.

three. Appeal Proposition. Title 4 rewards about what you are promoting and give 2 choices of feasible…..then the price tag. Buyers like choices (not also many). As consumers we also make appeal types of choices, like your product could price a lot more….but as a consumer I am getting much much more. The price formula V=D/E was talked about in my final blog site and it is named providing savings to consumers. Constantly, always, constantly advantages prior to price.

4. Consult to verify. Far too many salespeople do not ask for the business……..Request. One example would be to say “May I make sure you go forward and validate a single of individuals for you?”

five. If the consumer buys, then examine again the buy to make confident you acquired the details appropriate. Find out how they will pay for your product or support and finalize all required facts. Supply a memorable and hearty thank you and when you will follow up. If they don’t buy then you will initiate a Resistance Question. Even even though you have carried out anything correctly in this system there nevertheless may be one thing avoiding the prospective customer from purchasing. We want to know what that concern is without having sounding or becoming desperate. “I’m sorry, is there some thing that I have failed to point out…maybe some thing else you had been looking for?” Make it your fault they did not purchase.

6. Defeat objections. Handle their considerations. Also think about quoting additional rewards, a feeling of urgency (limited supply or availability….by no means ever lie about this), your GURANTEED satisfaction coverage or what ever it is that you really feel will show the prospect that you care and are confident in your product or support.

seven. Inquire to Verify once more.

There are so a lot of a lot more abilities that can be utilised like acquiring and using caller identify, adjusting your tone to meet that of the prospect and so on…..but focus on these 7 expertise and you will be prepared for far more. The right amount of capabilities that you need to be utilizing are dependent on your market, charges you are trying to get, what your opposition is carrying out and client profiles. Some consumers only require these seven skills to convert eighty% of their low lying fruit inquiries. Other folks require all 19 expertise that we train.

This is a system and not a script. Individuals loathe scripts. Use this things and our employees will get much more cozy with these steps and it will sound like a conversation. You are not looking for a hundred% conversions but somewhere closer to 70-80% for a lot of companies. If you convert one hundred% of your inquiries then you are not charging enough.

About the Writer

Founder and chief cultivator for Refreshing Revenues. Fresh new Revenues gives customers customized programs and processes that enhance market place share, revenues and ROI. At the exact same time we help distance clients permanently from their opposition by means of their revenue driven culture on six simultaneous amounts.

The Economic Recession Diet for Business Travel

Cutting travel program fat without compromising strategic objectives

The global economic downturn is hitting business travel where it hurts: According to a new survey by the Association of Corporate Travel Executives (ACTE), more than 70 percent of U.S. travel managers plan to spend less on corporate travel in 2009. The results represent a sharp shift from an earlier ACTE poll (Sept. 2008), which found that only 33 percent of U.S. travel managers were planning on cutting travel spend in the year to come.

While the ACTE survey may have focused on the U.S., the challenges faced by travel buyers and travel managers cut across all sectors of the globe. From reducing travel to tightening travel policy, and from renegotiating with suppliers to adjusting travel behavior, travel program stakeholders are intent on cutting trips and curbing expenses.

The silver lining to the financial storm clouds, says Kathy Jackson, executive vice president.

Story highlights:

* Travel buyers and managers now able to make changes that were impossible in the past

* New role for account managers in understanding and supporting client business drivers

* Changes to travel policy, approval process, traveler behavior are leading savings mechanisms for cost-conscious companies

* Demand management and online technologies are key supports

For Global Client Management at BCD Travel, is that the economy is enabling travel buyers and their respective teams to make changes that, quite frankly, have never been achievable in the past.

The challenge, adds Jackson, is to save on travel spend without compromising on business objectives: “As hard as it may be to foresee, the recession will not last forever. Companies will need to emerge from the downturn with plans for growth and solid business relationships in place- and travel is a crucial element in supporting growth and retention initiatives.”

Teri Miller, senior vice president for Global Client Management in the Americas for BCD Travel, sees a major opportunity for travel management company account managers in the current situation: “Account managers need a deep understanding of the customer’s business drivers to enable them to anticipate and add value, rather than react. As an example, if a client is closing manufacturing plants in three countries, our account manager will explain how travel patterns will shift as a result, illustrate what effect that may have on supplier contracts and provide a plan for optimizing potential impact.”

What steps are BCD Corporate Travel clients taking to combat the recession?

Companies need to look beyond the big-ticket items, says Jackson, and filter adjustments through every component of a trip. “It may be tempting to focus exclusively on air ticket costs, but for some programs, air may make up only as much as 20 percent of total T&E expenditure. Our account managers, often with the support of a consultative engagement from Advito [the independent consulting branch of BCD Travel], help clients focus on the total cost of trip, including hotel, ground transportation and even restaurant costs.”

A list of some of the decisions in which BCD Travel is supporting its clients’ recession-management travel strategies is below.

The choices and decisions being made represent a major opportunity for companies to make lasting beneficial changes to their travel programs, says Jackson: “As with any diet, success is incumbent on making change a way of life, not a 30-day wonder regime.”

Changes in travel policy

Growing corporate cost-consciousness is manifesting itself most prominently in the refinement and enactment of more stringent travel policies. Among the common cost-cutting elements BCD Travel is seeing: shifting from business class to coach class (variations include mandating coach class for all travelers regardless of hierarchical level and increasing the business-class flight-time threshold); down-tiering hotels (i.e., three-star instead of four-star); mandating the use of public transport rather than taxis; and retaining frequent flyer miles for business travel rather than personal travel.

BCD Travel is also seeing an increase in the use of rail and low-cost carriers within EMEA, says Felix Vezjak, senior vice president for Global Client Management in EMEA: “Companies are much more likely to accept what were formerly seen as inconveniences (i.e., secondary airports) in exchange for savings. However, particularly in the case of low-cost carriers, companies need to ensure that their travelers always use the preferred booking channels (online booking tool and agency) of choice to ensure adequate reporting and security tracking.”

For further suggestions on refining and enforcing travel policy, see our Feb. 2009 article “Reliance on compliance.” Changes to travel approval process

Whether it’s instituting an official approval process where one might not have existed or – as is more common – making existing processes more restrictive, this cost-cutting method is winning wide-spread support among BCD Corporate Travel clients as an easy “quick win.”

As part of a concerted travel-cost reduction effort, one of BCD Travel’s global clients, which has over US0 million in annual travel spend and more than 325,000 employees worldwide, changed its travel approval process radically to incorporate the following:

# No travel unless approved by a vice president on a single trip basis (<150 VPs in the company)

# No last-minute travel (under seven days’ advance purchase) unless approved by an executive vice president (<15 EVPs in the company)

Demand management (travel reduction or travel freeze)

More and more companies today view demand management as one of the biggest opportunities they have to control or reduce costs without compromising their overall business goals and requirements.

Among the possible steps companies can take to reduce travel demand:

# Eliminate all non-client-related travel

# Freeze attendance at industry conventions and conferences

One BCD Travel client refers to internal meetings as the “mother of all travel,” and has implemented the following methods to reduce the travel they generate:

# Prioritize video/web-conferencing for internal meetings

# Reduce number of meeting participants (all participants must be on agenda)

# Require meetings to be planned around travel, rather than vice versa

# Eliminate hotel nights before and after the meetings

# Choose meeting venues based on total cost, including travel and employee time spend

Travel management company as educational and staffing resource

BCD Travel has played an important role for several major clients in helping educate travelers and travel arrangers on a range of subjects in order to improve their ability to support the companies’ savings initiatives. For some clients, BCD Travel account management has provided workshop sessions for travel bookers; for others, the company has created “Tips and Tricks” documents for cost-savvy travel that clients have made available to all travelers.

Some clients have also had to face internal downsizing, resulting in the loss of key travel personnel. In one recent case, following the departure of the travel manager, BCD Travel has been able to dedicate a resource to that role. The account manager has also supported the client by conducting analyses to forecast further headcount reduction ahead of online adoption drive. This headcount reduction has been written into the budget for 2009.

Increased use of online booking tools

In order to save on transaction costs and streamline processes, companies are increasingly mandating that all domestic or point-to-point travel be booked online. Online tools can also play an important role in supporting changes to the travel policy and to traveler behavior, says Miller: “Companies can modify booking tools to ask travelers about the necessity of a trip or offer alternatives to the journey before proceeding to booking.”

Program consolidation

Finally, says Jackson, the economic downturn may present a significant “carrot” for companies that had been looking into consolidating their travel services regionally or globally: “Consolidation of multiple country services into a multinational service center, for example, can represent considerable savings in resource and process costs. However, companies must be sure that their organization is prepared to fully support consolidation in order to fully achieve the benefits. That means asking questions like, ‘Do we have a consistent travel policy in place that spans the markets involved? Are there language constraints that would be met by the service center?’”

Getting Small Business Loans with No Collateral in this Recession

The global financial crisis has made it quite difficult for companies, especially small businesses, to get business loans. Ironically, it is also in this situation that smaller companies often need additional capital infusion to boost income. You may need to get small business loans to acquire a better business location, construct a new building, renovate your premises, pay for new equipment, fixtures or furniture or increase inventory and working capital.

Most Small Business Loans Require Collateral

To get business loans, even small business loans, is a major challenge.

First you need to identify which among the many types of small business loans you need. Small business loans ranging from ,000.00 to ,000.00 are called micro loans. For larger needs, such as for the acquisition of land, buildings and other major fixed assets, development financing is what you should find. There are also import export loans as well as franchise financing. Do your research to find out if you are qualified for small business loans guaranteed by the U.S. Small Business Administration or SBA.

Any of these small business loans will require extensive preparations and paperwork. As a small business owner, you will need to prove your credit worthiness through a personal credit history report. Lenders will also require a business plan which includes your credentials as the business owner, your company financial statements, business assets and an analysis of your market. All of these should be packaged in a professional loan proposal which presents how the loaned amount will be used to strengthen the business and how you intend to repay the loan. Most of all, you need to present your loan collateral – the assets you will put up to secure the loan.

Quick and Easy Small Business Loans with No Collateral

For smaller acquisitions or day to day business needs, there is a way for entrepreneurs to get small business loans easily and quickly with no collateral. This is through merchant services.

Merchant services provide credit card services to businesses. This enables them to accept and process payments through credit cards or debit cards either through face to face purchases, online transactions, or even by phone or fax. Merchant service providers supply terminal equipment for card swiping, as well as the necessary software and high speed IP solutions.

Most businesses need credit card services since consumers routinely pay for goods and services through credit cards and debit cards these days. If your business has not taken this step yet, you may have been missing out on more than half of your income potential.

These same merchant services also provide the solution for your small business loans. Collateral-free loans can be availed of through their cash advances, with the loan amount computation based on the monthly credit card revenue your business generates. Credit card sales requirements may be as low as ,000.00 a month. You will not be asked for collateral since your future revenue is your collateral.

The best types of merchant cash advances do not require fixed monthly payments nor do they impose deadlines on loan payment. A certain percentage is instead deducted automatically from your credit card revenue each month to go towards loan payment. This way, you never have to worry about loan amortization.

Once your cash advance has been fully paid, you may apply for another one. It is like having a revolving credit line. Make sure that you compare the terms of several merchant service providers, though, and read the fine print on contracts. There are so many merchant service providers competing for your business that you’ll surely find one that fits your needs.

Business Planning For Recession Survival and Recovery

 The New Basics of Business

With unemployment continuing to rise, home prices falling due to a surplus of inventory, and small business lending at a standstill, this recession doesn’t seem likely to end soon.  The recovery will be slow and Americans will certainly not enjoy the prosperity of a few years ago for a long time to come.  It’s not just economists who think this way.  ”Half the population in [a] new ABC News poll  thinks both job security and retirement prospects in the years ahead will remain worse than their pre-recession levels.”  (“Poll: Less Job Security is the ‘New Normal,’” ABC News The Polling Unit, June 15, 2009, analysis by Gary Langer) This confidence, or lack thereof, is an integral part of an economic cycle.  The analysis goes on to say, “Those diminished expectations – plus the pain of the current downturn – are fueling retrenchments in consumer behavior that could fundamentally reshape the economy.”   

Basically, consumers are hunkering down to limit spending, save money, conserve resources, and change the way they’ve been living.  The major influence on the health of an economy is the psychological state of its consumers.  When there exists a broad belief that spending beyond necessity is unwise, people will change their habits and as a result, some businesses will have to close their doors.  The economy is molting into a new, leaner animal.  Rather than react in desperation to avoid doom, firms should interact with the current situation with innovative and forward thinking actions.  

No matter the economic slump, increasing profits is typically the number one goal of any business.  To ensure profitability, a company must demonstrate a competitive advantage over others in its industry, either by cost leadership (same product as competitors, lower price), differentiation (same price, better services), or focusing on an exclusive segment of the market (niche).  For long term maintenance of competitive advantage, a firm must ensure that its methods cannot be duplicated or imitated.  This requires constant analysis and regular reinvention of competitive strategies.  

A recession is the optimal time to reinvent competitive advantage because the pressure of a feeble economy will separate the strong businesses from the weak ones, with the weak falling out of the game entirely.  Your business will be strong if you have a plan of action based upon a little industry research, an analysis of what you have and what you want, and continuous monitoring of the results of your plan.  This kind of innovation is not only a necessity right now, but it is an opportunity to improve the quality and efficiency in the way you do business.  

The three basic actions for growing a business in any economic climate are: improve efficiency (maintain output while reducing inputs, such as time and money); increase volume (produce more in order to spread fixed costs); reorganize the business (change goals, methods and/or philosophy).  If you plan to implement one of these, you may as well plan to implement them all.  By focusing on one of the above strategies, you will find a ripple effect that causes a need to address the others.  This is a good thing.  

Right now, growth may sound like an unattainable goal as businesses are grappling just to survive, but hey, “flat is the new up.”  If a business can keep its doors open and lights on, then it’s doing better than many others.  But lights and open doors don’t make sales, so making changes that attract business is in a sense, striving for growth.  It won’t be this tough forever, but for now, putting some growth strategies into action may be what keeps your business alive, if not thriving.  

 

Every Business Needs a Plan  

Without a plan, there is little hope for growth, let alone survival.  As my small business development counselor, Terry Chambers says, “If it’s not written, it’s not real.”  That doesn’t mean it’s unchangeable, but it does show that you mean business.  In order to accomplish your strategies of improving efficiency, increasing volume, and reorganizing your business, you’ve got to examine what you have, what you want, and how you plan to get there.  

Sometimes it takes a significant event or change in existing conditions for a business to create a written plan.  I think it’s safe to say that the state of the economy is a significant change that should prompt business owners to alter the way they’ve been doing things.  If you already have a business plan, it’s time to get it out and revise it.  Make sure your plan includes answers to these questions:  

What do I want to accomplish? What do I have to work with? How have I done in the past? What might I do in the future? What will I do now? How will I do it? Is it working? 

 

A business plan can be used as a vehicle for accurate communication among principals, managers, staff, and outside sources of capital.  It will also help to identify, isolate, and solve problems in your structure, operations, and/or finances.  Along with these advantages, a business plan captures a view of the big picture, which makes a company better prepared to take advantage of opportunities for improvement and/or handle crises.  

Essentially, the three main elements of a business plan are strategies, actions, and financial projections.  In order to cover all of the principle elements, you will engage in other types of planning:   

Marketing plan: Includes analysis of your target market (your customers), as well as the competition within that market, and your marketing strategy.  This plan is usually part of the strategic plan. Strategic plan: Asses the impact of the business environment (STEER analysis: Socio-cultural, Technological, Economic, Ecological, and Regulatory factors).  Includes company vision, mission, goals and objectives, in order to plan three to five years into the future. Operational planning: With a focus on short-term actions, this type of planning usually results in a detailed annual work plan, of which the business plan contains only the highlights. Financial planning: The numerical results of strategic and operational planning are shown in budgets and projected financial statements; these are always included in the business plan in their entirety. Feasibility study: Before you decide to start a business or add something new to an existing business, you should perform an analysis of its strengths, weaknesses, opportunities, and threats (SWOT analysis), as well as its financial feasibility, then asses its potential sales volume.

 

The process of business planning does not end when the written plan is complete.  Business planning is a cycle, which includes the following steps:  

Put your plan of action in writing. Make decisions and take action based upon the plan. Gauge the results of those actions against your expectations. Explore the differences, whether positive or negative, and write it all down. Modify your business plan based upon what you learned.

 

President of Palo Alto Software, Inc. and business planning coach Tim Berry says, “Planning isn’t complete unless you’ve planned for review.”  Review is the fundamental action that initiates putting your business plan into action.  In his blog at Entrepreneur.com, Berry lists some insightful strategies to making good use of your plan review, a few of which include keeping the review meetings as brief as possible and an emphasis on metrics as key to effective review.

Write your business plan in sessions.  Don’t think that you have to produce a business plan before go to bed tonight or you won’t be able to open your doors for business tomorrow.  I like Tim Berry’s Plan-As-You-Go method of business planning.  The practice of planning is an effective way to really get to know your business and you might end up discovering some important things about your company and about yourself.

There are various strategies and outlines available that will guide you in choosing the appropriate format for your business plan.  Check out the collection of sample business plans for a variety of businesses at Bplans dot com.  Every business is different, therefore every business plan will be structured differently, but for the purposes of this white paper, I will present the fundamental elements that make up strategic, operational, and financial planning.  Here is a basic outline, thanks to NxLevel® for Entrepreneurs (2005, Fourth Edition): 

 

             General Business Plan Outline  

                Cover Page  

                Table of Contents  

                Executive Summary  

                Mission, Goals and Objectives  

                                General Description of the Business  

                                                Stage of Development  

                                                General Growth Plan Description  

                                Mission Statement  

                                Goals and Objectives  

                Background Information  

                                The Industry  

                                                Background Industry Information  

                                                Current/Future Industry Trends  

                                The Business Fit in the Industry  

                Organizational Matters  

                                Business Structure, Management and Personnel  

                                                Management  

                                                Personnel  

                                                Outside Services/Advisors  

                                                Risk Management  

                                Operating Controls  

                                                Recordkeeping Functions  

                                                Other Operational Controls  

                The Marketing Plan  

                                Products/Services  

                                                Products/Services Description  

                                                Features/Benefits  

                                                Life Cycles/Seasonality  

                                                Growth Description (Future Products/Services)  

                                The Market Analysis  

                                                Customer Analysis  

                                                Competitive Analysis  

                                                Market Potential  

                                                                Current Trade Area Description  

                                                                Market Size and Trends  

                                                                Sales Volume Potential (Current and Growth)  

                                Marketing Strategies  

                                                Location/Distribution  

                                                Price/Quality Relationship  

                                                Promotional Strategies  

                                                                Packaging  

                                                                Public Relations  

                                                                Advertising  

                                                                Customer Service  

                The Financial Plan  

                                Financial Worksheets  

                                                Salaries/Wages & Benefits  

                                                Outside Services  

                                                Insurance  

                                                Advertising Budget  

                                                Occupancy Expense  

                                                Sales Forecasts  

                                                Cost of Projected Product Units  

                                                Fixed Assets  

                                                Growth (or Start-Up) Expenses  

                                                Miscellaneous Expenses  

                                Cash Flow Projections  

                                                Break-Even Analysis  

                                                Monthly Cash Flow Projections – First Year  

                                                Notes to Cash Flow Projections (Assumptions)  

                                                Annual Cash Flow Projections – Years Two and Three  

                                Financial Statements  

                                                Projected Income Statement  

                                                Balance Sheet  

                                                Statement of Owner’s Equity  

                                Additional Financial Information  

                                                Summary of Financial Needs  

                                                Existing Debt  

                                                Personal Financial Statement  

                Appendix Section  

                                Action Log  

                                Supporting Documents (Resumes, Research Citations, etc.)

 

Executive Summary  

A business plan starts with an executive summary, which is a one or two page summary of your business plan, or an introduction to your business.  Although this section is at the beginning of the business plan, it is the last thing to be written.  You’ll be able to condense your business plan more succinctly once you have the opportunity to work through the other parts of the plan.  The executive summary may be the only thing a potential investor or financier will read, so write it last because it has to be the most compelling.  

Start by writing a description of your business, including what stage of development it is currently in (conception, start-up, first year, mature, exit) and your plans for growth.  Discuss the nature of your business, the main products and services you offer, the market for your products and services, and how and by whom the business is operated.  

 

Mission Statement  

Then work on your mission statement.  Here is where you concisely state the focus, scope and hope of your business (or values, vision, philosophy, and purpose).  What is the customer pain you are soothing, the need you fulfill?  Here’s an example from Coca-Cola: 

“Our Roadmap starts with our mission, which is enduring. It declares our purpose as a company and serves as the standard against which we weigh our actions and decisions.  

To refresh the world… To inspire moments of optimism and happiness… To create value and make a difference.”

 

PepsiCo has a different take:   

“Our mission is to be the world’s premier consumer products company focused on convenient foods and beverages. We seek to produce financial rewards to investors as we provide opportunities for growth and enrichment to our employees, our business partners and the communities in which we operate. And in everything we do, we strive for honesty, fairness and integrity.”  

This is the mission statement of Inspiration Software®, Inc.:  

“Our company strives to support improvements in education and business and to make a positive difference in our users’ lives by providing software tools that help people of all ages use visual thinking and visual learning to achieve academic, professional and personal goals.”  

 

Goals and Objectives  

Next, outline your company goals and objectives, including long-term and short-term goals.  You will get into more detail on how the goals will be accomplished in your operational plan and annual work plan, so focus on brevity at this stage.  There is a difference between goals and objectives and it’s important to know what that is.  I like how Andrew Smith explains it in The Business Plan Blog.  Objectives are non-emotional, precise descriptions of what is needed to achieve a goal.  Goals can involve emotion and don’t have to be as specific as objectives.  Objectives are the steps to actualizing the goal.  Here’s an example:  

Goal:  

                To have positive cash flow by the end of the year.  

Objectives:  

                Increase sales by 50%.  

                Offer customers a 1% discount for paying invoices within 10 days.  

                Increase efforts to collect on accounts receivable before invoices have aged 60 days.  

Of course, you will need a plan of strategies in order to accomplish each objective, but those details will be expounded upon in your annual work plan.  A list of three short-term and three long-term goals, along with the objectives necessary to achieve them, is sufficient for most business plans.  Remember to replace the goals and objectives with new ones as you check them off your list.

 

Background Information  

The section that details the background information should start with identifying the industry your business is in.  Even if you are not a member or have no intention of becoming involved, you should list any trade associations within that industry; you never know when you made need those connections.  Find out what publications, magazines or journals are available to businesses in your industry.  Use these and other sources of business information to identify how past trends (economic, social, political) affected the industry, as well as any current or future trends that may have an impact.  

How does your business fit in the industry?  What is the history of your business, including who started it, what changes have occurred, when was it started, where was and is it located, how was it started and operated, and why it was started?  What barriers to entry, if any, have you recognized?  

   

Organizational Matters  

The ownership hierarchy of your business, the management structure, and the personnel are described in the section on organizational matters.  This part of the plan deals with who, what and how your business runs.  Who is in charge of what and how are they qualified?  Discuss how the various parts of your business interact together; include details about outside contractors and consultants and what functions they perform.  See the example below, thanks to Edraw Soft Vector-Based Graphic Design.  

The organizational section of the business plan also needs to include an explanation of your record keeping process, checks and balances, and control management systems.  Anyone who reads your business plan should be able to understand the organizational procedures for running your business day-to-day, as well as in an emergency situation.  

The risk management plan needs to be fleshed out in the organizational section as well, including your risk strategy, the different types of insurance required, your contingency plans, and problem-solving protocols.  What will you do if a natural disaster ruins part of your inventory?  How will you handle the sudden illness or long-term absence of a key manager?  What happens if you are unable to finish a project on schedule?  What are some early warning signs to watch for?  

It may not be pleasant to imagine all the “what ifs,” but doing it now and planning for those unexpected events will improve your company’s chances of surviving a storm.  For an excellent step-by-step guide on the details of developing a risk management plan, see the article “How to Develop a Risk Management Plan,” by Charles Tremper at wikiHow.com.  

   

Marketing Plan  

The next section, themarketing plan, gets into the details of what your business offers and what market it serves.  Marketing is the communication of how your products and services “ease customer pain.”  Show the problem and how your business solves it.  Marketing is a necessity for every business because once your doors are open, you must invite customers to come in.  Everything you do in your business that affects customers is marketing because it sends a message about your company.  

This part of the plan details the features and benefits of your products and services, their seasonality and life cycle, as well as any future products and services you are planning.  It also includes a thorough market analysis, in which you will study your customers, your competition and the market itself.  Here you should include a PEST analysis, in which you will consider the impact of various factors upon your business.  The factors include combinations of the following, depending upon your business:  social, technological, economic, environmental, political, legal, ethical, and demographic.  

Studying your market will give you insight as to how you can make your business more appealing to people.  Market research is more than just noticing trends in your customers’ buying habits; it’s discovering what motivates your customer to buy.  Don’t assume that you already know because you’ve been in this business for years.  This study often unearths characteristics about your market that are hidden or new.  It’s best to discover these things before your competition.  

Another key element to the marketing section of your business plan is an outline of your marketing objectives, strategies, and tactics.  Writing down the avenues you travel in order to market your business will afford you the opportunity to record what worked and what didn’t work.  You must be able to measure and calculate the results of your marketing efforts, otherwise, what’s the point?  If you don’t know if something is working for or against you, then it’s working against you.  

Include details about all of the following that are applicable to your business in the marketing section of your plan: location and distribution, and promotional strategies, such as packaging, public relations, advertising, and customer service.  As a result of exploring these areas, you will naturally need to consider how much you will budget for your marketing efforts.  This question is closely connected to your sales forecast, which leads us into the next section of the business plan.  

  

Financial Plan  

The financial plan consists of four sections: Financial Worksheets, Cash Flow Projections, Financial Statements, and Additional Financial Information.  All of these components will tell the story of how you plan to start or grow your business from a financial perspective.  It is vital that you explain the assumptions under which you have based your projections, for example, “We assume that there are no unforeseen changes in economic policy to make our products and service immediately obsolete.” or “We assume interest rates will stay the same over the next three years.” (both quotes from Bplans.com sample business plans)  

I suggest that you construct easy to read tables and graphs for the financial portion of the plan.  The worksheets suggested are: Salaries/Wages and Benefits, Outside Services, Insurance, Advertising Budget, Occupancy Expense, Sales Forecasts, Cost of Projected Product Units, Fixed Assets, Growth (or Start-Up) Expenses, and Miscellaneous Expenses.  You may find some of the worksheet templates at PlanWare.org to be useful.  

The expected revenues and expenses for at least a year should be projected in the cash flow section of the Financial Plan.  It’s better to make conservative predictions rather than be too optimistic when it comes to cash flows.  As part of this section, a break-even analysis is essential.  This is the “amount of units sold or sales dollars necessary to recover all expenses associated with generating these sales.” (NxLevel for Entrepreneurs, 2005)  The formula for calculating the break-even quantity is Total Fixed Costs/(Price – Average Variable Costs).  

The financial statements section should show the way things are now if you have an existing business, as well as a forward look at your checking account, or projected income statement.  The only way a start-up company can provide an income statement and balance sheet is by projecting these figures based upon well defined assumptions.  Both start-ups and existing businesses should include a statement of owner’s equity.  

An income statement shows revenues minus expenses, in order to calculate net income or net loss.  Start-ups should project these expected results for the first twelve months of business, then quarterly for the next two years.  A list of a company’s assets (what you own), liabilities (what you owe), and net worth (assets minus liabilities) is called a balance sheet.  The statement of owner’s equity shows the owner’s initial investment, additional investments, and retained earnings, minus owner withdrawals.  

The additional financial information at the end of this part of the plan should give a summary of your business’s financial needs in order to grow, show its debt position, and state the owner’s financial status.  

   

Appendix  

In the appendix, which is the final section, an action plan or timeline for implementing the business plan should be presented.  This is where the detailed goals and objectives are expanded in a work plan.  Also, include in this section any additional information or supporting documents that are relevant to your business plan, such as important research, marketing materials, product specifications, and owner and employee résumés.  

   

Executive Summary  

Now that you have written the hard part of your business plan, it’s time to write the fun part, the executive summary. As mentioned in the beginning of this white paper, this is the most important piece of the business plan because it illustrates the very essence of your business in a captivating and condensed form.  If you ever share your business plan with a potential investor or potential buyer, the executive summary may be the only thing that is read.   

Make the executive summary brief (no more than two pages), but make sure you showcase the best qualities of your business without glossing over important information; show why yours is a winning business.  Write one to three sentences about each of the following:  

General description of the business Mission statement Management structure Business operations Products/services, the market and your customer Your marketing plan, including the competition Financial projections and plans

 

A clear, concise, and convincing executive summary will intrigue your audience and inspire them to read the rest of your plan.  If the plan is never seen by anyone outside of your business, don’t assume it was a waste of time.  During the planning process, you will have worked through an enlightening exercise that prepares you to run and grow a better business.  

Having this written document available for frequent consultation and review will improve your chances of not only surviving, but coming out strong on the other side of this recession.  Most people think that knowing in the back of their mind what they plan to do is sufficient for survival or recovery, but the difference between a written plan and an idea is usually the difference between failure and success.  

   

   

 

I was at a gas station the other day and noticed something that caused me to look twice. At first, it appeared to be a normal occurrence, a man pumping gas and then cleaning his windshield. Thinking nothing of this, I continued with my gas purchase.When I again looked at the other vehicle, I saw a man walking to the rear of the same car, yet there was someone else continuing to clean his windshield. To my surprise, the person cleaning his windshield and tending to this gas was the gas station attendant, not the customer.

This caused me to wonder if the economy might be having an impact on the level of customer service being offered today. As businesses compete for dollars, which are being tightly held by consumers, we may be seeing more of this. Getting the consumers business through old-fashioned customer service methods, could be your competitive edge.

Back in the day, we used to be known for giving great service to our customers and the mantra of “The Customer is Always Right” was a standard policy throughout most every retail establishment and other types of businesses.

Customers were number #1 and intensely loyal. The customer service counter area was always visible when you entered a store, and everyone knew that was where you went to solve problems and get answers to questions, any question.

Briefly, Let us stroll down memory lane and look at what our customer service practices used to be. Granted, some of these still exists. Nevertheless, things have definitely changed.

?If there was an issue with an account, you didn’t have to listen to 5 or 6 different message prompts before speaking to a live person, or getting the requested information.

?If you were not happy with your meal, it would be replaced with a freshly made duplicate meal, not put in a microwave and returned.

?In a restaurant, if you needed to take home your leftover meal, the restaurant staff would prepare your carry out package in the kitchen area, rather than have you do it at your table.

?If you had some installation done in your home, cable, telephone etc., the debris would be cleaned up by the technicians, and not left for you to do.

?If you’re admitted to the emergency room, you better have health insurance, enough said on this one.

Today, our customer service industry has become more automated with pre-recorded messages, self-service, unassisted online and offline shopping, less emphasis on the customer and a general feeling of having to “jump through hoops” to get a problem resolved or redeem a rebate. I believe we have come to expect less from the businesses we support.

On the other hand, this economic crisis is forcing businesses to go that extra mile in responding to their customers’ needs. These are loyal customers who find themselves caught up in the downturn and need understanding. They need a return to the old fashioned customer service that endeared them to your business for life.

For example, have you seen the advertisements from certain auto manufacturers who say they will pay several months of your auto note, if a job loss occurs? This is an example of addressing the customer’s needs in this down economy. If this program were not in place, these people would lose their vehicles. Why aren’t they all car manufacturers doing the same?

Here are some other ways to make your customer service more compassionate during these times:

?Make it possible for your customers to talk to a live person when calling your business. This will alleviate some of your customer’s stress as it shows you care about addressing your customer’s issues and concerns quickly. Also, not having to move through several phone prompts can save time for the customer.

?Be friendly and kind to all customers and greet them nicely. Stress has taken over many lives these days, and a smiling face can make a difference in that person’s day.

?Think customer safety: Repair or clean up any area of your business that might become a hazard. For example: keep grocery store carts moved frequently from store parking lots so that they don’t roll into the customer’s cars and children. There have been many damages to vehicles and injuries to children when this is not done.

?In a restaurant, make sure the customer’s food is brought to them properly heated. If the food is brought to the customer cold, it makes for an unhappy experience and is often sent back.In addition, you could lose this customer. It may not seem like a huge deal as not everyone complains about cold food. On the other, it’s the details you want to pay attention to. There’s never been a better time to make your business stand out.

?Honor coupons even if the customer does not have the actual cut out version, especially if they know about the sale and asks for the discount. For regular, frequent shoppers, this should be standard practice. The customer’s continued shopping at your business will be assured.

Finally, today, there is much more competition and customers have a wide choice of alternatives. Brand loyalty has been replaced with buying from a merchant with the best quality and price for their product.

Yet, in times of economic stress, customers remember those businesses that can offer empathy along with the sale. A late fee not charged, an interest rate not raised a car not repossessed. Perhaps this recession will, in deed, bring us back to the day when a customer’s purchase meant more than the sound of a cash register.