Business Advisor Network Blog

10 components for success in business – parts 8, 9 and 10.

8. Comprehensive Corporate Profile

A corporate profile contains all the relevant information and documentation. Before companies meet you to explain your goods and services, they need to be convinced by what they see in your profile. A profile is almost like a CV of your business . Some corporates are creative enough as they make the profiles on interactive DVDs or CDs which they send out to the corporate work. Your profile would generally contain what you find on the main website of the company. It covers your background as a business, your vision and values, it also gives details of product lines you specialize in, the team’s individual write-ups (miniature Cvs) which spell out skills and experience, reference sites where you have provided the services before. This document speaks on your behalf in your absence hence it has to be of high standard, something that encourages the customer to continue reading. The marketing team can be used to come up wit this plan.

9. Research and Development

The strength in every leader is the ability to manage change, to be able to run the business based on best practice and setting standards that many would want to follow. To do that a great amount of time and money must be spent on R&D. When you do this you will find out how not to do certain things, avoiding the pitfalls of others and most importantly you stay abreast with latest trends. Excellence is achieved as you continue to for the development not only of the product but of the employee who is also a producer. As you research and get knowledge, pass it on to those in your team.

10. Safety, Health and Environment (SHE) Policy

It is no longer possible to just do business without considering the impact we make on the environment. The world is going green , eco-friendly products and processes. Before you make your packaging, consider what it does to the environment on disposal. In your production line, the safety of your employees is of utmost importance. Unsafe environments can easily be shut down by authorities. If you produce goods in filthy environment, you will endanger both the employee and the consumer. Any industry which is production oriented, manufacturing, factory, heavy machinery based processes calls for leadership to put priority on SHE. What use is your mining venture if in one minute you can lose 400 employees in a shaft? If you cannot invest in SHE, the best advice one can give change the line of business rather than risk people’s lives.

This is the last post in this series of 10 components for business success.

Stay tuned for more blogs soon.

Kind regards,

Virtual Advisor

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10 components for success in business – part 6, and 7

6. Procurement Policy

Do you strategically source your inputs and stock? When you have a sound policy, you remain competitive in your market. Always avoid middleman in instances where you can buy direct from source. Avoid keeping stocks which will not move. Use the sales reports to determine what kind of products to stock. You need to setup authorization levels for procurement. You do not want to be suddenly shocked by huge invoices. This system should work closely with the budget tool. If it is not budgeted for, it will not be procured unless by special arrangement with leadership. This policy should allow for regular reporting on stock and procurement activity. That way you make informed decisions ahead of time.

7. Communication & Reporting Strategy

Internal and external communication structures can easily become the resistors for smooth flow of information and hence slowing down of decisions that need to be made timeously. As the CEO, or head of department, you need to take time to communicate vision and spell out the goals and objectives. Regular meetings with team members keeps you informed of issues as they arise not after incubation. You are able to decide on the way forward reducing any impact to the organization. In all the systems mentioned, be it financial, HR etc. there is a regular generation of reports. This tool spells out deadlines and how often reports should come out. Who is privy to which reports? A system is only good to the level to which it can give feedback to leaders for them to make informed decisions.

… to be continued next week.

Kind Regards,

Virtual Advisor

Add your details to receive important and vital business building information such as:

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10 components for success in business – part 4 and 5

4. Marketing and Sales Plan

You may have the most brilliant product there is on the market but without the clientele knowing about it, it will not translate into revenue. A marketing plan is meant to raise or increase your presence on the market. You strategically assess each of the product or service you provide and determine how to roll-out the awareness campaigns and launches through various media such as internet, radio, television and print media. You cannot talk of market awareness without referring to brand awareness. Your brand identifies you and leaves an indelible mark in the mind of those who see it. Your marketing team should follow a brand manual which spells out your logo, accepted fonts etc. You must always ask yourself the fundamental question who out there needs our services and may not know about them? This plan will help you achieve just that.

5. Human Resource Plan

You can have all the systems you need for your business and all the capital necessary for you to take off but without people to run the systems and execute the plans, business success remains a far-fetched idea. You need a sound incentive system that looks at rewarding high performers. How do you motivate and keep the employees you have? Do you have a performance management system? What are the criteria for recruitment to specific jobs? Review job specifications / expectations and perform job evaluation. Where there is no HR System or plan, employees do as they please. HR system will help you manage induction, discipline and mentorship of recruits. Love people and see how they increase in productivity.

… continued in the next post.

Kind Regards,

Virtual Advisor

Add your details to receive important and vital business building information such as:

• Government and non government grants, support packages and programs for business in Australia.
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10 components for success in business – part 2 and 3

2. Strategic Plan and Business Plan

A strategic plan a mandatory document for the growth and development of the business. As the name suggests, it contains business strategy which encompasses, the vision, values, strategic goals and objectives and all the necessary resources required to achieve the stated goals. A strategic plan can be one year, 5 or even 10 year plan. Take leaders away on a brainstorming strategic session rather than one person sitting down to formulate a strategy without consultation. Just because you are the founder does not mean you can do it all yourself. Get external assistance to help you dream better. Your strategic plan has direct effect on future business performance. A business plan is similar to a strategic plan and it contains most of the financial documents but most importantly projections of anticipated performance in the future. Banks look at your business plan in order to give you loans for capital expenditure or normal operating income.

3. Management Information System & ICT

It is important to note that the Information Age we are operating in calls for organizations to strengthen their access to Information and Communication Technology and usage of business intelligence tools for decision making. Online transactions have become the order of the day. Your clients are not just in their office. They live on the internet. ICT is no longer just a cost center but a revenue driver. You will gain more revenue as you maximize your presence online and your efficient electronic communication. There are different Management Information Systems available commercially to meet your industry specific situation. Sometimes you may need to engage a software developer to create your system from scratch in situations where there is no solution readily available on the shelf (tried and tested).

… continued in the next post.

Kind Regards,

Virtual Advisor

Add your details to receive important and vital business building information such as:

• Government and non government grants, support packages and programs for business in Australia.
• Seminars, events, workshops, training scheduled in Australia.
• The Virtual Advisor blog with heaps of free information about growing your business.

How to book a meeting with a business advisor, mentor or coach?
Find out about Government Grants for Queensland business?
Would you like to become an Accredited Advisor?
Need information on how to prepare a business plan?
Do you want a step by step guide to growing your business?
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I wish to make a donation to help small business.

10 components for success in business – part 1

What tools do I need to run my business?

Your understanding and correct use of the available business tools will determine how far the business goes. Regardless of size, every business needs tools to setup, administer and properly run. Some of those tools are purely financial in nature. A fair understanding of finances is necessary for every leader regardless of profession. You ignore your financial performance at your own peril. You are able to make better, informed and calculated risks or decisions whenever you know the financial implications. Every decision you will ever make has a financial implication; it will either increase your financial position or reduce your financial balance. You should never be surprised why and how you seem not to have enough money for your needs when you are not able to monitor income and expenditure patterns. This article may not make you an accountant or finance manager but it is meant to give you a few tools that are pertinent in giving you some grounding on the subject of finances. Other business tools are covered which when made use of can maximize the potential of the business .

1. Knowledge of Finance Basics

I will highlight the few financial tools. I also recommend such courses as Finance for Non-Financial Managers. The points below will give you a jump start and possibly give you enough appetite to go a little deeper.

Income Statement

Sometimes referred to as Profit and Loss Statement Profit is the money you remain with after trading or selling your merchandise. It is the sum up all your sales invoices (income) minus all costs involved in the sale. The balance is a gross profit. In situations where you find yourself without money enough to finance your costs, we say you made a loss. A loss making position will drive you out of the trading position sooner than later. Every wise CEO always endeavors to lower the costs of production as much as possible so as to make goods and services affordable and competitive in pricing. That way you are able to sell volumes which increase your profitability. A profit and loss statement will include Total Sales (T), Cost of Sales direct costs(C), Gross Profit (which is simply T minus C). You also have Operating Profit which is profit before interest and taxes (PBIT). When you have removed all the interest and taxes you come up with Net Profit or Net Loss.

Cash Flow

Every business has a prerogative to generate cash. A cash flow statement will show clearly what happened to the cash you have been generating. Cash refers to hard cash which is Cash on Hand, petty cash, and cleared funds in the bank as well. I am saying cleared because you can not make a decision on money which is not yet reflecting as available. What if the cheque bounces, or transfer is reversed? I used to value the Profit and Loss statement more than this until I realized that this statement tells me whether I am generating cash or I am simply consuming it all up. It is important to note that even though you may be having a profitable position according to the Income Statement above, you may be using up all your cash and soon face the wrath of bankruptcy.

Balance Sheet

This is the document that shows us our asset levels. Whenever you purchase assets for your organization, the value should be recorded as per invoice. Over a period of time the asset goes down in value (depreciates) or it may increase in value (appreciation). It is important to keep a track of this value as it helps you to know when to replace the asset. A balance sheet will inform you about the value of the business . It is tragic to judge a business by the bank balance as all that could be funds waiting to be paid out. A balance sheet includes fixed assets such as land, plant equipment, vehicles and current assets which include cash in bank, stock levels and what customers (debtors) owe. The two asset types added together give us total assets we have. It also includes the company’s financial obligations (liabilities) which may be classified into long term liabilities (loans payable after long periods e.g. 5 year loan) and current liabilities (short term loans, what is owed to suppliers / creditors). In addition you need a record of all assets with their serial numbers and values in a book called Asset Register.

Budget

This is a financial plan which shows a projection of where we expect to get funds from and where we also expect to spend. A budget is a wise inference made based on studying previous behavior. It helps the leaders to manage costs. In well managed businesses , they will not spend on what is not budgeted for. Where expenditure surpasses budget, the respective department has to answer questions such as why? How come? What can be done next time to stay within budget? A comparison of budgeted versus actual figures is always important at the end of each month. Since a budget is a forecast of future performance, there is need to know the historic performance of a company especially in the recent past with consideration of any changes in the environment. A budget can only be useful to the degree it is realistic and reflective of the economic environment the company operates in. The budget tool is a useful tool for every leader. Get everyone section, division or department come up with their own budget which you consolidate to the main corporate budget.

… continued in part 2

Regards,

Virtual Advisor

Add your details to receive important and vital business building information such as:

• Government and non government grants, support packages and programs for business in Australia.
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• The Virtual Advisor blog with heaps of free information about growing your business.

How to book a meeting with a business advisor, mentor or coach?
Find out about Government Grants for Queensland business?
Would you like to become an Accredited Advisor?
Need information on how to prepare a business plan?
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Are you ready to harness the opportunities of 2010?

As the economy recovers and forecasts indicate, 2010 is shaping up for renewed enthusiasm and confidence.  As a business owner or operator perhaps there was an area of your business that became the subject of scaling down or hibernating in an effort to ride out the wave.

If that is true for your business, 2010 certainly appears to be a time of awakening and re-gearing.  Are you ready to harness the opportunities?  At the intersection of preparation and opportunity lies what the Roman Philosopher Seneca called “Luck”. Will this be your lucky year?

Here are 5 tips that will improve your “luck” for 2010.

1. Review and revise your business strategy.  Staying in a holding pattern this year could be mean the difference between growth and stagnation.  It is time to be proactive in order to take advantage of every growth opportunity.
2. Leverage technology.  Technology is not the exclusive domain for leverage however; it is such a gargantuan of an opportunity to be harnessed.  This is one item that can be delegated to specialists and so website design and content, SEO, internet marketing and social media presence is a “must have” in the age of technology.
3. Refocus on the “3 keys” of “Lead, Lift & Leverage”.  The “Lead” key is all about the organization’s leadership and management. The “Lift” key is all about lifting the business’ turnover through better sales and marketing. And the “Leverage” key is about improving the business’ productivity and efficiency in all areas of the operation.  Find out more about this in Thinking Business by Brett Chamberlain.
4. Have a workforce plan. If you down sized or right sized for the hibernation then it is time to be pro-active about hiring before the “War for Talent” is re-ignited.  In particular, if you are within an industry where talent shortages affected your ability to keep up with demand then the time is right to consider having a workforce plan running parallel to your business plan. In an article by the online business magazine “Business Spectator”, CommSec chief economist Craig James is quoted as saying “Australian businesses are frantically trying to fill positions before the labour market really begins to tighten.”
5. Get to the root cause of a niggling problem. It has been said that the more we look at our own problems the less we are able to find a solution.  If you have a problem that you can’t put your finger on then the answer could lie in some one else’s “view”.  There are currently Government incentives available to help diagnose and solve business problems.  Your Business Adviser Network is available to evaluate your eligibility to access these incentives.

The advantage of working through Business Advisor Network is that regardless of your business issue, we have a network of expertise that will assist in every area of your business.  So get your business “market ready” to harness every opportunity in 2010 and click here if you need help.

Virtual Business Advisor

Add your details to receive important and vital business building information such as:

• Government and non government grants, support packages and programs for business in Australia.
• Seminars, events, workshops, training scheduled in Australia.
• The Virtual Advisor blog with heaps of free information about growing your business.

How to book a meeting with a business advisor, mentor or coach?
Find out about Government Grants for Queensland business?
Would you like to become an Accredited Advisor?
Need information on how to prepare a business plan?
Do you want a step by step guide to growing your business?
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I wish to make a donation to help small business.

A step by step guide to growing your business…

A fantastic resource for business owners and operators that includes the 3 keys to running a successful business – Lead, Lift and Leverage.

What you’ll learn from this book:

*    THE most important ingredient in business success and a critical ingredient in effective marketing.  (Most businesses don’t even know it exists.)
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*    Why the typical approach to building sales is completely counter-productive.  (If you’re using this strategy, it’s probably doing you real harm.)
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*    The difference between the ‘typical’ approach to business … and the successful approach to business.  (The strange thing is, that it’s EASIER to do it the clever way, but few bother to find out how.)
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*    How to deal with ‘price shoppers’ … in even the most competitive market.  (You can make more sales … and you can make them at higher prices.)
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*    A logical, step-by-step procedure for transforming your business.  (This is a real, proven process that has worked for hundreds of other businesses.)
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*    How 2 minor adjustments can produce a massive improvement to your bottom line.  (Most business people are too caught up in their ‘busy-ness’ to realize this opportunity.)
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… plus much, MUCH more.

Click here to find out more and order the 213 page ebook.

Click here to find out more and order a printed book for delivery in Australia

When business owners engage the support of a business advisor, they’re actually receiving two very important things, experience and innovation.  Experience is gained in only two ways, via your own direct involvement or by reading or hearing about other people’s involvement.  Being able to tap into a vast well of experience that an accredited advisor brings to the table can open up a of wealth of opportunities.

The business problems and growth issues that you are experiencing are no different to those difficulties being faced by other businesses.  In other words, you are not alone.  There have been people that have been through what you have been through, adapted, changed, redesigned or reinvented themselves and/or their businesses and lived to tell the story – more often than not, this is the experience that an accredited business advisor draws from; they have been there and done that.

Innovation however is a method of thinking.

This method is formulated in its approach.  When thinking about business, a common approach is to run through the same fundamental principles of success that govern all aspects of business.  A good checklist and resource is the book “Think and Grow Rich” by Napoleon Hill.

It contains thirteen principles based on common traits possessed by over five hundred super successful business people.  The book itself is a remarkable success story.  It was first published in 1937 and as recently as 1996 appeared in the non-fiction best seller book list.  Perhaps he was onto something?  You’d be hard pressed to find another book other than the bible that has stood the test of time that well.  The obvious reason for its success – the principles were valid back in 1937 and are still relevant today.

Unfortunately for small business, most owners think creativity and innovation is something that just happens.  Somewhere an overpaid ad agency has a group of zealous creative types in fancy clothes, mod haircuts, and attitudes to match locked in a room smoking some dried-out exotic plant material waiting for inspiration to pay them a visit.  Wrong (as funny as it is…)

Actually, creativity and innovation is a systematic process of checking off possibilities.  To be an innovator you should build yourself a checklist of basic success ideas and principles, such as those in Napoleon Hills book.  You should review them each time you want to apply innovative thinking to your business processes, advertising, packaging, marketing or any other area of your business.

Give your ideas definite purpose; ask yourself, What do I want to accomplish with my efforts?  How can we give our customers perceived value that is much higher than the cost?… and the list goes on.

An accredited advisor will be able to assist you in developing an innovative approach to your business and guide you along the path to invention without the potholes of adverse discovery.  The old adage – “two heads are better than one” could just be the difference between your business success and failure – think abut it.

Virtual Business Advisor

How to book a meeting with a business advisor, mentor or coach?
Find out about Government Grants for Queensland business?
Would you like to become an Accredited Advisor?
Need information on how to prepare a business plan?
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I wish to make a donation to help small business.

Thousands of new businesses will start up this year during uncertain times.  Unfortunately if history tells us anything, most of them (over 90%) will close their doors within two years.

Businesses are started with high hopes and glorious dreams,  it is easy to start a business, it is much more difficult to build it, to make it succeed, to avoid the traps and pitfalls and frustrations and enjoy the fruits of success over the years.

In working with thousands of entrepreneurs over the years, here are the mistakes we’ve seen most often.  Avoid them!

1.  Fear and confusion. There is either a sense of being over-whelmed by the size of the tasks, or a refusal to master the work of being an entrepreneur and business owner.  There are specific skills to owning and running a successful business.  Learn them! You can master these.  You can focus and succeed! ( this is often the time to hire a business advisor)

2.  Lack of capital. Capital comes in three forms: time, money and energy.  Some people have one or two, but not all three, and they fail because they simply cannot sustain the growth phase of their business.  Every business is a commitment of everything you have.  You may start ‘small’, but that does not mean causal or part-time.

3.  Lack of courage or commitment. Building a business is always risky.  Some people perceive the risk as frightening, others see it as an exciting challenge, but there is always risk.  Manage it.  Limit your potential losses.  Understand the risks and enjoy the process.  You will make mistakes.  Learn from them and go on.

4.  Refusal to select and target an audience. No one can sell their services to ‘everyone’ – a message that goes to everyone is unlikely to create a sense of urgency in anyone in particular.  Attorneys focus on one type of law.  Physicians specialise.  So should you.

5.  Choosing the wrong audience. A market that cannot or will not pay, or an audience that is too small or dispersed, is a recipe for disaster.  The ‘poor’ desperately need medical, dental, legal and other services, but who is going to pay you?  The same problem exists when trying to reach an audience that is dispersed over a large geographic area and not easily identified.

6.  Fuzzy or unfocused message. What exact benefits do you provide?  To whom?  Under what circumstances and at what cost?  How can people contact you?  Be precise, be clear, be specific.

7.  Lack of planning – too many random efforts. Many entrepreneurs try a little radio, a direct mailing, join a service organisation, offer free samples and then report that they have “tried everything and nothing worked”.  Pick one and stay the course!  You become identified with your marketing techniques.  Choose a logo, a colour-scheme and a marketing technique and stay with it!

8.  Laziness and/or greed. Your business ONLY exists to serve the customer!  You must make a profit in order to continue serving the customer, but service is the key to success.  Everything must be focused on that.  The statement, “I want to be my own boss”, or “I want a business that supports me” may be true (and be totally honest and reasonable), but they are a dangerous focus for your business.  Customers first!

By Dr Philip E. Humbert

How to book a meeting with a business advisor, mentor or coach?
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Introduction

Our nation is experiencing the most challenging economic time in living memory. The collapse of major economies, banks, businesses and consumer confidence has lead to an extraordinary level of fear and uncertainty. But one thing is certain:-

While we feel defeated, no progress will be made. And we simply can’t afford to not be making progress.

Our attitudes are critical. A key part of the solution to our problem is the restoration of confidence, optimism and enthusiasm. The Advance! Australia Initiative is specifically designed to assist in the restoration of these qualities … so that Australia can be at the forefront of the recovery.  Tough times never last. Tough people do.

The Advance! Australia Initiative will give Australian businesses the skills and attitudes necessary to survive the current tough times and thrive in the good times ahead.

Concept

The Advance! Australia Initiative has been developed by the Business Advisor Network, a not-for-profit organisation dedicated to assisting small businesses. Among other things, the Initiative includes the nationwide delivery of free business seminars, plus a range of valuable workshops,
advisory services and business development resources.  These seminars, services and resources are specifically designed to give business people the outlook and strategies necessary to weather the current conditions, and thrive into the future. The Initiative is strongly supported by leading
corporate citizens including:

National Stock Exchange
Australia Post
Quest Community Newspapers
Bendigo Bank
Queensland Business Review
Accrue Financial
Murray International
Marine Qld
Tech Flare Solutions

Your Involvement

As a prominent and respected Australian, we invite you to join many others by lending your support to the Advance! Australia Initiative. You can do this by providing a short motivational or inspirational quote or thought which will encourage people to endure, strive and achieve. Your quote can be based on a lesson you’ve learned, an experience you’ve had, a treasured piece of wisdom, an inspirational moment in your life, or simply an uplifting quote which supports the Initiative. A video clip of you delivering your quote will then be used in conjunction with others in advertising campaigns and as an introduction to the seminars, to help set the inspirational tone and mood for the event.  Please help us to Advance! Australia. Your thought or message could be just the thing a
fellow Australian needs to hear.

Email us now at admin@businessadvisor.net.au, or register your support at www.businessadvisor.net.au

How to book a meeting with a business advisor, mentor or coach?
Find out about Government Grants for Queensland business?
Would you like to become an Accredited Advisor?
Need information on how to prepare a business plan?
Do you want a step by step guide to growing your business?
Become a sponsor or partner of BAN and connect with small business decision makers?
I wish to make a donation to help small business.