Up and Running Blog

December 2011

plan vs. actual

New Year’s Reflections: Business Plans Are Always Wrong

by Tim Berry on December 29, 2011

I wrote a post with this title more than four years ago. Today, a good day for reflection and looking back as we welcome a new year, I want to revisit the basic truth in the title of this post, and point out what that really means.

Out of Bounds

from istockphoto.com

Why are plans always wrong? Because they predict the future, and we’re human. We humans suck at predicting the future.

Paradox: nonetheless, planning is vital. Planning means starting with the plan and then tracking, reviewing progress, watching plan vs. actual results, correcting the course without losing sight of the long-term destination.

Planning is a process, like walking or steering, that involves constant corrections.

  • The plan sets a marker. Without it we can’t track how we were wrong, in what direction, and when, and with what assumptions.
  • Use this marker to manage the constant conflict between short-term problems and long-term goals. You don’t just implement a plan, no matter what. You work that plan. Use it to maintain your vision of progress towards the horizon, while dealing with the everyday problems, putting out fires.
  • So the plan may be wrong, but the planning process is vital.

    plan vs. actual

    from istockphoto.com

The truth is that forecasting is hard. Nobody likes forecasting. But one thing harder than forecasting is trying to run a business without a forecast.

A business plan is normally full of holes, but you fill them, after the fact, with the management that follows. That’s what turns planning into management.

Good planning is nine parts implementation for every one part strategy.

 

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Keep a Close Eye on the Competition.

by Susan Solovic on December 28, 2011

Caterham 7

Image via Wikipedia

The sluggish economy continues to be an issue for small business owners.  And now it appears competition may be getting tougher too.  According to the Guardian Life Small Business Trends Research Report, larger companies will aggressively market to prospects once considered “too small.”  That means those of us who own small businesses may find ourselves dealing with new and tougher competitors.

So how do you protect yourself.  For starters, you need to keep a close eye on the competition.  You’ve probably heard the old saying, “What you don’t know won’t hurt you.”  Well, guess what!  It can and it will hurt you. It’s important to know as much as you can about your market, your customers, your products and your competition.

With little or no budget for competitive research, you’re probably wondering how to gather that intelligence.   There are myriad low-cost methods you can use get the information you need to stay on top of things in your market and protect your customer base.

Explore the Internet.  This should be pretty obvious, but you can conduct an internet search on your competitor(s).  You may discover a lot of helpful information.  For example, you may learn about personnel changes, a new product offering, even new clients/customers.

Visit Your Competitor’s Web site.  Web sites are a good source of information about a company.  Typically, there are backgrounders on the company’s management team along with a history of the company and its mission statement.  Some web sites also maintain client lists and  if it’s an e-commerce site, you can compare pricing

Contact Your Trade Association.  Many small businesses belong to trade associations which provide current research findings.  These studies focus on consumer’s perceptions of your product or service and growing trends within your industry.  Most of these studies are free to association members.  Additionally, associations typically publish newsletters or trade magazines where you might find competitive information.

Talk to Vendors.  One of the best sources of information is your vendors.  One of your suppliers who also sells to your competitor may be able to share a lot of insight about what your competition is up to.  Be careful, however.  If they disclose information to you, you can safely assume they are doing the same thing with your competitors

Pay Attention to Advertisements.  Watch for your competitor’s advertisements.  How are they positioning themselves?  How often do they advertise?  Where are they advertising?  To whom are their ads directed?  Collecting this information will help you get a better understanding of your competitor’s strategy in the market.

Secret Shoppers.  Secret shoppers can be a good way to learn about your competitor’s sales process.  Ask a friend or family member to pose as a potential customer and either call your competitor or visit their retail location.  Of course, this wouldn’t be appropriate if you are in an industry where every sales presentation is customized.

Network.  Reach out to business associates to learn more about the marketplace.  Chances are there are people within your network who have done business with your competitors.  Find out what they liked and what they didn’t like.

Talk to you Competitors.  Depending on what industry you are in, you may find your competitors are friendly ones and willing to discuss certain issues with you.  The Society of Competitive Intelligence Professionals (SCIP) is a good resource for guidelines.

Finally, whatever information you obtain, use it constructively to assist your firm’s growth.  Never use it to hurt your competitor.  And if you gain access to information that appears to be proprietary, destroy it immediately.

Competitive research doesn’t have to cost a fortune, and the benefits can be huge.

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Here’s Why Good Business Planning Takes Hours, not Months

by Tim Berry on December 21, 2011

Marine Institute Ireland, Strategic_Planning_S...

Image via Wikipedia

One of the biggest barriers to better business planning is the horribly mistaken and disappointedly common myth that develop a business plan takes months. That’s just wrong. And harmful, too, because it pushes away people who could use planning, but don’t because it takes too much effort. They think.

In the real world, where good managers include planning process in management, and use it to steer their companies, good business planning takes hours, not months. Here’s why:

  1. Planning is about results, not documents.
  2. The plan is what’s going to happen, and when, by whom, and how much; not a document. Form follows function.
  3. A good annual SWOT meeting (strengths, weaknesses, opportunities, and threats) takes an hour or so.
  4. Thinking about strategy is always and often. Writing it down in bullet points takes a few minutes a month.
  5. Maintaining milestones, responsibilities, assignments, deadlines, metrics, and who does what is part of every manager’s job, is management, not plan development. It’s not separate work. It takes a serious commitment of not just time but also effort, honesty, communication … but putting it into the plan takes regular minutes, committed often, in hours (at most), not months.
  6. Keeping your financial projections up to date with actual results, and adjusting them regularly, isn’t a matter of months, just hours.

Think of it like physical fitness, which is a good analogy, because good planning process is management fitness: physical fitness takes minutes, regularly, over a long time. Hours, not months.

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Is Your Small Business Competing With SPAM?

by Carolyn Higgins on December 20, 2011

We’re all familiar with the “who-actually-falls-for-this-stuff” SPAM and we all know its complete bogus.

For example:
RE: I await to hear from you urgently
Please I am seeking for your help (sic)
From Google: Google winning notification
Or the ones that actually warn you they’re SPAM in the subject line, what is up with that? Is their honesty and up-frontedness supposed to catch me off guard and make me want to open it?

 

I think you get the point. Hilarious, right?!?

But what about the SPAM that isn’t so obvious? The emails from people we handed a business card to at a Chamber  mixer (and did not give permission to be added to their list) or who friended us on Facebook or emailed us through the Contact page on our website? What about those SPAMMERS? They’re a little more insidious – but are you competing with them? I would hope not.

Here’s the thing. I get hundreds of SPAM emails a week some are of the hilarious type and some are from people who actually want my business and think that SPAMMING me is the way to get it. And what strikes me hilarious is that for each SPAM email I get, I probably know at least 5 businesses personally – or even virtually for that matter, that I would turn to if I were looking to hire that particular product or service.  Why would I hire a complete stranger – and a SPAMMER at that?

So here’s my point:  When I am working with small business owners to develop marketing systems for their businesses one of the key elements of that process is figuring how they are different so they can stand out in a crowd. One way you can be different is to NOT spam, another is to actually get out there – either off- or on- line and meet people.  The more people who know you, the better your chances of being thought of when they are ready to buy what you have to offer.  The whole goal here is to you’re your business known in your niche so that your target market never has to turn to a stranger!

 Here are 4 things you can do so you don’t have to compete with SPAMMERS (or anyone else!):

  1. Network – This is a great way to meet potential clients and expand our sphere of influence. Join a networking group or two – and whatever you do, make sure the networking group, association or organization is full of people who fit your target market profile – or at least can introduce you to them. If your target market is women between the ages of 25 and 35, Rotary is probably not the best networking group for you.
  2. Engage in Social Media – I know thousands of people online. Some I’ve met face-to-face, some I haven’t yet, some I probably never will. But in today’s world, none of that matters. I have formed real professional relationships with people I may never meet face to face – and I’ve received and referred business to them!   Social media is not about merely blasting ‘salesy’ stuff; it’s about educating, informing, and engaging an audience. This is a great way to stand out from the crowd and build some top of mind awareness for your brand.
  3. Blog– Blogging is a great way to promote your brand and build a reputation and credibility.   Writing relevant, informative posts/articles will help you stand out from your competition (and certainly SPAMMERS). And blogging isn’t just about writing a few words and posting it to your blog site; you must become diligent about repurposing your blog posts and submitting them to sites that our target market reads to expand your reach.
  4. Be a giver - I was in sales and marketing for 17 years when I worked for other people and it wasn’t until I became a business owner that I realized the power of being a giver.  I had always approached networking and relationship building with a “what’s in it for me” attitude. I now approach it with a “how can I help you attitude”. And the more people I meet the more I am able to refer and make introductions that can help other people.  I enjoy this aspect of it much better than the old way! Being a giver instead of a taker, makes it that much more fun!  When is the last time a SPAMMER gave you anything?

It boils down to this: our goal as business owners is to help our target market Know, Like, and Trust us so that when they are ready to buy, they buy from us (a John Jantsch, founder of Duct Tape Marketing saying). What are you doing each and every day to work toward that goal? If you don’t have an answer, your target market could be encouraging those SPAMMERS! 

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Does Your Website Suck?

by Carolyn Higgins on December 19, 2011

Finally, small business owners everywhere realize they need an online presence if they are going to compete in today’s world.  Small business owners who just a year ago adamantly argued that their customers aren’t using the web are now jumping on board and admitting – yes, indeed they are.

But slapping up a website just for the sake of having a website can defeat the purpose – and can even harm your image if it isn’t done right.

If you’re thinking about creating a website – or even if you already have one – follow these 6 rules to make it the effective and powerful marketing tool it should be: 6 secrets to a great website for small businesses

  1. The website is not about you. A prospect is not looking for information about you; they are searching for a solution to their unique problem or need. THAT should be the focus of your home page. Use words and phrases they would use to describe their pain and then outline the solution you have to solve it.
  2. Have an offer.  Get the most out of your website by using it as a lead generation tool.  If someone spends time on your site, don’t just let them click away without engaging them further. Offer a newsletter, a free report, or even a free consultation. Do something to get them to act so you can find out who they are and market to them further.
  3. Be unique. Beware of canned website services; you know  - the ones that offer websites for CPAs or Chiropractors or Attorneys. They all the look the same, they all have the same content, and they make it really hard to differentiate you from your competition. Invest a little bit more in a site that allows you to stand apart from the crowd.
  4. Your website is your online storefront. Your website is very often going to be the first impression people get of your small business. Make it visually appealing. Make it interesting, informative and engaging. Make it different – add some fun elements, or news stories or free tips that your target market would be interested in.  Make sure it’s professional- and PLEASE check your grammar and spelling!
  5. Use testimonials and case studies. Yes, your home page should be about the prospect and their problem – but once you’ve engaged them and gotten their attention, they will want proof that you can deliver as promised. Having a page of testimonials and case studies is a great way to demonstrate that you can deliver as promised.
  6. Make it easy for a prospect to contact you. Have a contact page that is easy to find, with your email address, and/or phone number. Put your phone number on the home page (some experts recommend having it on every page of your website). Finding a way to contact you should not be a game of “Where’s Elmo?” If it takes more than a second or two – you risk losing them – and they could mean a lost sale.
So, that’s it, follow these 6 simple rules for building a small business website and you’ll never have to worry that your website sucks!


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happy_new_year

Where to focus in 2012

by Cidnee Stephen on December 16, 2011

The common tone going into 2012 is cautious optimism. Economies remain very fragile and so lavish spending on your marketing would be a high risk activity. Instead, focus in 2012 on your high payoff activities and leverage the abundance of low cost, no cost marketing tools available to you. From a budget standpoint, try to secure a monthly amount that won’t increase debt (i.e. avoid ramping up credit lines or credit cards) and instead look at what you can realistically spend to acquire a new client. If this is less than what you have spent in the past, then you should really be reaching out to a strategist, like me, to help you figure out how to get a bigger bang for your buck.

Video – video marketing is becoming more and more mainstream. Use them for testimonials, to explain a concept on your site, for product tutorials, or even to share great content on your area of expertise. The good news is you don’t need to necessarily invest in high cost camera work or production. Instead you can use a good webcam or video on your phone and edit with low cost software yourself.  You can house your videos for free on your own You Tube channel (also the second largest search engine after Google) and embed from there onto your site or blog.

Engagement - with the economy still being vicarious, solidifying relationships with your network, prospects and clients is key. It’s not enough to just have a Twitter account without posting, following and engaging others. Plan ways to get people to truly connect with you – ask questions, respond to comments, hold contests, and automate some of your communications to ensure you don’t drop the ball.

Leverage Mobile Technology – it’s interesting to look at your Google Analytics for your site and see how much traffic is coming these days from mobile devices. Converting your site to operate correctly on smartphones should be your next major web development. Consider creating useful apps and make sure you take advantage of QR codes to share information, not to mention for better tracking of your marketing initiatives.

Moving the Free Line – if giving something for free has become the norm in your industry, consider upping your game. Look at your products and services. Are there some low cost opportunities that you can now give away, something your competitor’s would actually charge for? Consider giving this away for free and offering an even better quality paid product or service. Crazy, I know, but effective!

Whatever you do, make sure, as usual, you focus on your sweet spot and you differentiate yourself from the competition. Strategy before tactics is like an ounce of prevention for a pound of cure!

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shreck

Are you an Ebenezer Scrooge or a Bob Cratchit? Our Favorite Christmas Movie Villain Bosses

by monique on December 16, 2011


1. Ebenezer Scrooge, A Christmas Carol: Charles Dickens’ classic tale of greed and redemption is a holiday staple, and to the casual observer, the story’s main protagonist, Ebenezer may seem to be a one-dimensional, miserly villain, but he’s also the original bootstrapper! Cutting-costs by skimping on coal?? Working long, efficient hours hunched over a leger to ensure that every penny of profit is squeezed out of the bottom line?! Bah Humbug! Bah Humbug to us all!

2. Max Shreck, Batman Returns: Christopher Walken breathes life into the creepy, twisted, hilarious Capitalist Villain Max Shreck in Tim Burton’s dark and moody sequel to the even darker and moodier 1989 film, Batman. The film plays heavily upon themes of wealth and working-class-life, industry and the lack of morality in business. There’s also some stuff in there about Michelle Pfeiffer in a skin-tight black rubber bodysuit.

3. Nakatomi executive Joseph Takag, Die Hard: And you thought YOUR company holiday party was bad. Set on Christmas Eve, this shoot-em-up joyride of a movie teaches us several things not the least of which is “Scheduling a holiday part on Christmas Eve is a jerk move.”

4. Frank Cross, Scrooged: This is technically a reboot of Dickens’ Christmas Carol but I give it honorable mention because it’s my favorite Christmas movie of all time. Bill Murray takes the Ebenezer Scrooge character and plays him as a wise-cracking, heavy-drinking, TV executive who starts out as kind of a regular guy but quickly becomes sucked into the cut-throat world of television broadcasting. The film is both sidesplittingly hilarious and wonderful. The moral: If you see Carol Kane coming at you with a toaster…RUN.

5. Frank Shirley, National Lampoon’s Christmas Vacation: Christmas bonuses are canceled! You are now all enrolled in the “Jelly of the Month Club.”

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What You Can Learn From the World’s Most Successful Business Owners

by Guest Author on December 15, 2011

Steve Jobs – Charisma can take you far.
Steve Jobs was one of the most intelligent and innovative men to walk the planet, but he was also one of the most charismatic. Jobs was a professional at garnering excitement for new innovations and products and creating an enthusiastic crowd around him. If you truly believe in an idea, a business or a project, it is imperative that you are able to communicate that passion to other people. Without a following, one will never be a completely successful leader.

Larry Page – Be persistent.
If you really believe in an idea, see it until the end. Google Maps with Street View is a feature that almost every American has used at some point, but this feature took years to implement. Also, Google’s book digitization project took six years from the time Page conceptualized it until it was a reality. Do not be afraid of long-term projects. Oftentimes, these tend to be the most revolutionary and successful.

Tony Hsieh – Go after your passions.
This may seem obvious, but it is true, according to Tony Hsieh, CEO of Zappos. “I would say just figure out what you are actually passionate about that you’d be passionate about doing even if you never made any money from it. And that’s what you should be doing,” Hsieh said in an interview with Rob Dempsey, CEO of ADS. There’s also an old familiar saying that you should pursue whatever it is you do when you’re procrastinating. If you like doing it in your “free time,” then try to make that what you do in your “work time.” Merging your work and your interests, in some way, is imperative.

Bill Gates – Break the rules.
As most know, Bill Gates is a college dropout. While most people would reject the idea of abandoning formal education to pursue a garage-based start-up company, sometimes bold moves can make all the difference. First, you should learn the rules. Then, learn when it is necessary to break them. If you have a solid reason for ditching the status quo, then go for it. The best of the best have done it.

Mark Zuckerberg – Embrace change.
Every time Facebook makes a change to its interface or features, the users seem to verbally retaliate the adjustments. Within a few weeks, however, everyone is comfortable with the “new Facebook” and realizes that the new features make Facebook better than ever. One should never be afraid to transform their product. Innovation does not end with invention. Evolving and revolutionizing is what keeps your customers and audience coming back. Embrace these changes and learn to be flexible with what you have to offer.

Bert Doerhoff, the creator of this article, is the founder and owner of Accubiz, an accounting firm based out of Jefferson City, Missouri. Doerhoff has been selected multiple times for the “Digest 50 Award,” representing one of the top 50 CPA firms in the nation. He was also appointed to the Advisory Council to the Missouri Director of Revenue

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Holiday Gift Ideas For the Entrepreneur in Your Life

by monique on December 14, 2011

Whether it’s hardcover or Kindle Fired, the gift of a good read is always a safe bet in the holiday season. Here are a few recommended reads for the business-owner or entrepreneur in your life:

1.   For the Starter-Upper: 

  • Okay, so color me impartial, but the best book out there is still: The Plan-As-You-Go Business Plan by Bplans.com founder, Tim Berry. This book encourages readers to “jump in!” “Go ahead and skip around,” invites Berry, “No two businesses are alike, and so no two business plans will be alike.” The plan-as-you-go business plan is what you need and only what you need.”
  • The Art of the Start, Guy Kawasaki: What does it take to turn ideas into action? What are the elements of a perfect pitch? How do you win the war for talent? How do you establish a brand without bucks? These are some of the issues everyone faces when starting or revitalizing any undertaking, and Guy Kawasaki, former marketing maven of Apple Computer, provides the answers with a deft touch and humorous narrative.

2. For the Communicator:

3. For the Salesman:

  • Duct Tape Marketing, John Jantsch: Small-business marketing guru John Jantsch breaks small business marketing down into three steps: earn trust, engage, and find out what works–and do more of it.
  • The Influentials: A personal favorite, this book is all about the people who always seem to know about the cool stuff, first. Voraciously consuming media, ideas, and experiences, these roughly 10 percent of Americans wield an inexorable and pervasive sway over the rest of us. Data-driven and tightly compiled, the book is both a study into basic marketing trends and examination of human nature.

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Book Review: Unlocking Your Entrepreneurial Potential

by Tim Berry on December 13, 2011

Are you looking to build your own business? Go out on your own? Sadly, we tend to overemphasize the high-end process of developing a plan and then getting investment, while the vast majority of real businesses are self funded.

I saw a Wells Fargo study that concluded the average cost of a startup is $10,000. People don’t always realize that even angel investment, and much less venture capital, are options for a very small minority of real startups.

What I like best about Tim McEneny’s new book Unlocking Your Entrepreneurial Potential is in it’s subtitle:

Marketing, money, and management strategies for the self-funded entrepreneur.

The emphasis there is mine: “for the self-funded entrepreneur.” That’s a very important distinction to make. While book after book details how to develop a startup using the plan and pitch and get investment motif – which is rare – relatively few focus on self funding, alias, bootstrapping, which is the way most of us do it.

Tim covers all the bases, from the mind set at the beginning, through preparation, planning, launch, reaching break-even, and profitability, even, at the end, selling the company.

My favorite detail is a collection of what Tim calls “takeaways,” more than 50 of them, short and sweet and well positioned. They are highlights, set aside graphically, adding interest and summarizing. For example:

  • Take-away #12: Always have a Plan B in your hip pocket. The assumptions in a business plan will prove to be wrong.
  • Take-away #22: You can’t take back your words (or e-mails). Reacting emotionally simply isn’t worth it.
  • Take-away #37: Simply stated, get the money in the door fast and part with it slowly. Maximize cash flow whenever possible.
  • Take-away $46: Obsolete your own product or service before someone else does.

Good work. A good book.

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