To Invest in a Qualified Business Plan is a Fundamental Strategy

To Invest in a Qualified Business Plan is a Fundamental Strategy
Before you start reading any arguments about why you should have a super professional Business Plan for your new venture, you might as well first take a look at those lean statistics.
Only 400 out of 40.000 new ventures are funded by Venture Capitalists (VCs).
Only about 4.000 ideas reach the pre-business plan stage.
Only 400 entrepreneurs have available some kind of business plan.
Only 40 out of them receive some funding by business angels or any other sources.

Statistics also tell us that there is more money looking for good projects than vice versa. Why then is it so difficult to raise money?

It is all about investing on a qualified Business Plan.
This is a methodical first step that leads to the anticipated Fundings.

Your Business Plan is your "road map" of your enterprise and shows you where you want to go. It is to become your checking list to follow up, the same way an orderly routined pilot does, before taking off his plane.
As Henry Kissinger remarkably said: "If you do not know where you are going, every road will get you nowhere

Why let Professionals Prepare A Business Plan for you?

They have the skills to detect the investors' preferences.
Have the experience to eliminate mistakes.
Define and focus your objectives.
Can uncover overlooks and weaknesses in your planning process. This will help you to build up an overview of your business idea. They also prepare you to give a thought to the potential investor's unexpected questions.
Guide you to avoid common mistakes.
Create a meaningful content which is expected by professional investors who recognize generic phrases, created from business plan software. They compile for you a convincing content that covers from hard to find market research to articulating the value of your message.
They free up your valuable time. Instead of collecting material, gathering market research, writing creating drafts and revising, it would be better used working on your business.

Professionals model your business:
They teach you how to both create and communicate true value to potential customers, suppliers, employees and even investors.
They formulate a start up strategy which will minimize the capital needed to launch your company.
You have only one chance with many investors. They help you make it count and stand out.
Who qualifies for Venture Capital today?
Ask yourself the hard question if you have what it takes to turn your vision to reality. Your business idea, as good as it may be, will mean nothing if it is not backed up by your entrepreneurial skills. For Venture Capitalists are like winning horse track gamblers, they bet on the jockey not on the horse.

Planning for Success -

Planning for Success - A Positive ApproachAre you a good or bad planner? Do you cringe at the very mention of the word 'plan'? If you do then you are not alone. Thousands of online (and offline) marketers find themselves in the same position.

A good many of these people may well have never considered a plan of action as part of their daily marketing activities. Others may think they are too busy to spare any time for planning. Still others may feel they do need to plan, can see the benefits to be gained from planning, but don't think their skills or personality are suited to this task.

It seems perfectly clear to me that without planning, the long term success of any business,large or small, is unlikely to be realised!

A plan need not be elaborate. It need not be detailed, but you should at least commit something to paper.

Start off by taking a positive view of planning. Don't just look at it as 'another boring chore I've got to do'. Say to yourself 'This is my plan for success.'

Also consider the following benefits to be gained from good planning:
you can meet deadlines
you can meet or even exceed your targets
you can create a feeling of achievement for each step you fulfill
you can monitor and control your marketing activities to greater effect
you can initiate improvements
you can achieve personal growth and success

Once you have accepted that planning for success is a positive thing, it is then time to think about your goals. And just what do you want to achieve? Why are you marketing this or that product in the first place? Do you know what your short term and long term aims are?
Answering these questions accurately will enable you to take a big step forward to achieving whatever goals you ultimately set yourself. So what are your goals? And how do you plan to achieve them?

The great thing about targets is they give you a way to measure your performance and give you a sense of direction - you are going somewhere. It is important also to consider that in order for your goals to have substance and meaning they should satisfy the following criteria:
they should be achievable
they should be measurable
they should be challenging though NOT impossible

Here are THREE achievable, measurable and challenging goals that Bill, an Ezine owner, has set himself:
to get 200 subscribers within the first three months following launch
to ensure that AT LEAST 70% of subscribers are still in place after 6 months
to increase the number of subscribers by 800 in the year following the initial 6 month target

What three goals relating to your business can you think of that meet the above criteria? Write them down.
Now let's look more in depth at each of Bill's goals to see how he can evolve an Action Plan that will enable him to meet each goal in a systematic, cost-effective way.

In order to work out the Action Plan he should consider a set of specific questions he should ask. These questions are:
When should this happen?
How is it going to be carried out?
How much is it going to cost?
Who is going to do it?

GOAL ONE:
To bring in 30 subscribers
WHEN:
Within the first 30 days

HOW:
By advertising in Ezines, on PPC Search Engines, via opt-in email lists, and via other media such as Classified Ad sites and also offline via magazines and periodicals

WHO:
In the first instance Bill himself and then by others as the subscriber base grows

HOW MUCH:
The budget is under $50 a month

Bill's next step is to start to put together the Action Plan in more detail. This is a very important stage of the overall plan because it focuses on specifics:
how many hours is he going to devote?
which specific advertising media is he going to use and how often?
which advertisements is he going to use?
When getting down to the nitty gritty of executing his plan, Bill will try to keep in mind:

his daily advertising routine (stick to it)
whether he is keeping to the budget
his target

When considering your own marketing campaign always think to yourself that EVERY day you follow your Action Plan is a step closer to the achievement of your goal!
Author Bio

The Ready Reckoner to Finding the "Right Person for the Right Job"

The Ready Reckoner to Finding the "Right Person for the Right Job"
Ever heard of the "round peg in the square hole" syndrome? It can essentially be used to describe a situation where you have hired the wrong person for the right job or vice versa.

Most companies generally hire employees based on their essential qualifications and experience. However it holds wise to remember that there are a multitude of factors that need to be kept in mind, while hiring a new incumbent. No matter how long it takes to find the perfect person for the job, it pays to wait for the right candidate to walk in than hurry and choose an ineffectual.

Sadly in spite of a growing awareness about these factors, a lot of companies still go wrong in the hiring process and end up placing the wrong person for the job. A wrong hire does not only add to the cost burden but also to the work and time burden of a company. As is often said, 'wrong hiring is worse than no hiring'.

This article seeks to provide you with answers to the essential question: Why do so many companies still make the same mistakes? Additionally giving you pointers on what you should remember during the interviewing process.

Look beyond qualifications and experience
Generally, when a job need has been identified, HR executives draw up a brief, detailing the job tasks and the relevant qualifications and experience needed from potential candidates. So while IQ and aptitude required for the job is listed, the EQ and attitude required for the job is given a see-through. The failure, to assess the inter-personal and intra-personal qualities needed of an individual for a job, is one of the more common reasons for hiring a mismatch.

Pointer#1
To avoid this mistake remember to list the qualities you think are required for a job profile. This makes for a scientific hiring process. One that will help you pick the right candidates from the wrong.

Prepare for the interview

An interview is by far the most accepted method to recruit new employees. Given its criticality many companies, in reality, rarely give a thought to planning the interview process. The fallout of an unplanned interview is that the right questions remain unasked, leaving you with a misfit in hand.

Pointer #2
Plan the interview. Determine the questions you want and a general guideline of the answers you expect for the same. As an interviewer, YOU need to guide the interview process. A well-thought interview process will effectively help you to evaluate a person's skills and determine if he/she is the right candidate for the job.

Follow the 80/20 rule

An adage that interviewers generally tend to forget is that "It pays to listen". More often than not, it's the interviewers who end up talking more than the interviewees!

Pointer #3
While interviewing follow the 80/20 principle: Listen 80% - Talk 20%. You need to learn as much about the candidate as you can, to best judge if the incumbent is the best fit for the job. At the same time, remember to allocate sufficient time to brief the candidate on the company and the basic job requirements.

We've listed some of the more common reasons for wrong hires.
What if you've already made a wrong decision? In such circumstances, just be patient and let the person grow into the job- have them groomed for the job by offering them the necessary training and letting them learn on the job. Else, you may want to examine the possibility of redirecting the candidate to a job more suited to his aptitude and skill set.

All said and done, the hiring process should be dealt with, with more care and thought. While this ready reckoner will make your job of interviewing easier, it definitely pays to hire a professional staffing company.

Author Bio

Chasm of Change - Restructuring - The Goliath of Change

Chasm of Change - Restructuring - The Goliath of Change
Richard L. Daft one of the country's recognized academic leadership experts raises the question, "What kind of people can lead an organization through major change?" A Turn-A-Round restructuring qualifies as major change and requires transformational leadership. Daft points out that this type of leader is characterized by the ability to bring about change through innovation and creativity. This type of leader motivates people to not only follow their lead but to believe in the vision of corporate transformation, the need for revitalization, to sign on for the new vision and to help institutionalize a new organizational process." Daft points to four principles in discussions about leading an organization through major change. These four principles are the foundation of the restructuring Turn-A-Round process.

1. Create a compelling vision
2. Create a new organization
3. Mobilize commitment, Empowerment
4. Institutionalize a culture change
Caution - Beware of the Dip
A "Transitional Performance Dip" is common when introducing major change accompanied by a culture shift. Performance most commonly gets worse before it gets better. There are four phases of the transitional dip with associated cause. They include:

Denial - Confusion exists, feelings of being overwhelmed, acting like nothing is different & checking out are common employee reactions in this phase. Communication and sharing of information is critical to overcoming this type of employee reaction
Resistance - Complaining, blaming others, spreading rumors, frustration, anger and erratic performance are common employee reactions. Again, communication, understanding and listening skills are critical during this phase of the transition.
Acceptance - Renewed energy starts to become evident, optimism appears and doubt begins to dissipate. Excitement and risk taking become evident. This is when the vision must be restated and shared with every employee taking the time for full explanation and answering all questions.
Commitment - Discretionary energy is released. Employees become action oriented toward new goals. Ownership of the vision is now company wide. Rewards and reinforcement are essential during this stage.
The length of time or "depth & width of the dip" depicting this phenomenon cannot be accurately predicted due to the complexities that determine it. Factors contributing to the length of time before the change efforts begin to show improvement can be impacted by the following factors:

Magnitude of the structural changes
Success of the communication to all employees
External environment factors
Critical mass of the company itself
Competency of the middle management group and their experience with structural and cultural change
Competency of the executive staff and their people skills
Effectiveness of leadership at all levels
Severity of the financial crisis or level of financial success
Timing

Change Process
The restructuring change process begins with the strategic restructuring of the organization, which is required to "Stop the Bleeding." This process starts with the immobilization of the old culture. This is mandatory, as introduction of change into any existing culture is difficult at best. Introducing change into a losing or stagnant culture is almost impossible. This change must deal with organization theory, social psychology and business history. It must be dynamic and include the introduction of fresh new leadership. This is a behavioral process. People can create change but people also resist change. The change process introduced must answer the question, "How do we get from here to there?" The answer to that question is your new vehicle for success.
This vehicle includes the restructuring plan, individual one-year departmental plans and every strategic initiative developed by the new management team. Most importantly, this new vehicle is submerged in the empowerment theory releasing individual employee initiative. The plans must be unified, simple, consistent and universally understood by everyone. Most of the change that has been introduced must be induced change versus autonomous change. Autonomous change has a life of its own. It proceeds due to internal dynamics and follows its own course. It is not easily controlled as it forms its own dynamics. Induced change is calculated and planned. It can be controlled if buy in is generated through sincere communication and employee involvement. Each step along this path will be accompanied by distinct challenges. As questions arise, management must be prepared to answer openly and honestly. While the old culture is suspended, change can thrive under the right circumstances. It is the responsibility of the executive team to insure that these circumstances exist. The primary ingredients that create the right circumstances include open honest communication, empowerment, risk taking, acknowledgment and reward.

Organizational Behavioral Process (OBP)
This is basic to creating change, and it becomes an important part of the new vehicle for success. OBP may be described as the wheels of the new vehicle. This process will carry the organization on to new heights, new accomplishments. Organizational behavior has its roots in organizational theory and group dynamics. People are the most important ingredient to every organization and the organizations behavior. People and how they are treated will reflect the organizational characteristics, the way it acts and interacts with its own people.

Empowerment, the decision making process and the communication channels are examples of how the organization interacts with its people. Organizational behavior is not easy to change. That is why it is so important as mentioned earlier to immobilize the old culture to introduce change. (E-mail rick@ceostrategist.com for a list of immobilizers) The behavioral process of the organization can withstand personnel changes. In other words, changing out management does not guarantee change in organizational behavior. You must take proactive steps designed to create new organizational behavior. The new vehicle is part of that. It includes, focused specific objectives, open channels of communication, empowerment and a sincere respect for the individual employee and his contribution to the organization.

Organizational behaviors become generalizations. They are discovered from observations of everyday work habits and they have no independent existence apart from the work processes in which they appear. They are difficult to identify but they are extremely important. They affect the form, the substance and the character of the work processes themselves. They actually affect the way the work process is carried out. They are different from culture because they represent more than just values and beliefs. They actually are involved in the sequences producing work. The decision making process is a major characteristic of the behavioral process. The decision making process is a much studied process beginning with the studies of Chester Barnard and Herbert Simon who argued that organizational decision making was a distributed activity, extending over time and involving a number of people. In other words, decision-making is not the personal responsibility of a single manager but a shared, dispersed activity that they only need to orchestrate and lead. This is still a surprising and often unaccepted theory of managers today.

The Eight Road Blocks to the Change Process
1. The lack of a sense of urgency
2. The lack of buy-in, a coalition of support
3. An unclear vision
4. Failure to communicate the vision
5. Failure to provide resources and remove obstacles
6. Not systematically planning and creating short term wins
7. Declaring victory too soon
8. Failure to anchor change in the culture as it is occurring
Sense of Urgency
Success at anything requires a sense of urgency, a commitment to accomplishing something. If employees don't have this sense of urgency, complacency can become an issue. To meet difficult challenges, to excel at anything, to create competitive advantage it is absolutely essential that employees release their discretionary energy toward achieving company objectives. Discretionary energy is that extra that you can't ask an employee to give but is automatically given by those employees that have a sense of urgency. Of course, no employee will release that discretionary energy for a leader that has not earned their trust and their respect. A leader will not be respected by the employee until he shows respect for the employee. A leader will not be trusted by the employee until he shows trust in the employee.

Forming a Powerful Guiding Coalition:
Success is not an individual accomplishment. Initiating change requires buy in and agreement. A group of believers, achievers and team players must be assembled to not only support the change process but to drive the process. The group must function as a unit showing unilateral support of the change process. Examination of market and competitive reality is part of the challenge as well as identifying and discussing potential crisis, critical constraints and major opportunities.

Creating a Vision:
Success at initiating change starts with the creation of a compelling vision that provides a roadmap for the change. This roadmap clearly answers the question "What's in it for me". WIIFM. The vision is supported by the development of strategy and action planning to achieve the vision.

Communicating the Vision:
Success requires leadership and leadership without communication is like a gun without a bullet. It looks impressive but it can't do anything. A specific communication strategy must be outlined and acted upon to insure that all employees are aware of what the vision is and how it is expected to be accomplished including defining individual roles and contributions. It's about buy in.

Empowering Others to Act on the Vision:
When critical constraints or roadblocks are identified, they must be removed or overcome quickly. This means allocating resources accordingly. Systems or structure that can undermine the change must be eliminated. Empowerment involves trust and allowing people to use their initiative and creativity.

Planning for and Creating Short-Term Wins:
Milestones need to be set up to mark progress and allow victory celebration along the change path. Success breeds success and excitement breeds' excitement. Create that success and excitement by setting interim goals that can be achieved and celebrated. Recognize and reward employees accordingly that are part of the accomplishments.

Declaring Victory too Soon:
Interim success and short term victories are important but don't spike your own Kool Aid. Be realistic and keep your long term goals in sight. Consolidate those short term improvements to produce continuing change. Use increased credibility to change systems, structures, & policies that don't fit the vision. Hiring, promoting, & developing employees who can implement the vision is essential to continued success during a major change effort. Reinvigorate the process with new projects, themes, and change agents.

Institutionalizing New Approaches:
Success must be anchored as it occurs and then built upon by articulating the connections between the new behaviors and corporate success. Leverage this success to ensure leadership development and succession.

Become a Business Brain Surgeon

Become a Business Brain Surgeon
Are you working longer and taking home less than your staff? Are you working all hours of the day and night and still barely managing to keep your customers happy? Are you unable to delegate or outsource work to give you more time to work on your business? If the answer to any of these questions is yes, maybe its time you learnt what Brain Surgeons do.

Most business owners we talk to believe almost everything they do in their business, only they can do. They have learnt from experience if they give work to someone else, they mess it up. And then they spend twice as long fixing things. But this is not what Brain Surgeons do. When they operate on a patient, they are not in charge of the theatre- the theatre nurse is. They don't open up the patient, or close. They leave that to a junior surgeon. Everything is prepared for them, and someone else mops up the blood later. All they do is the brain surgery. And some marketing before hand (client needs), and afterwards (client satisfaction).

How is this possible?
Hospitals have very sophisticated systems, and everyone is highly trained in their use. There are checks and counter-checks. Nothing is left to chance. And the very expensive surgeon, the most highly trained person in the theatre, only does what he or she has been trained to do. They don't waste their time doing jobs others can do. In other words they don't spend dollar time on penny jobs. So the brain surgeon only does the brain surgery, and a bit of marketing.

This is, of course, a rather simplistic description of a brain surgeon's job. And I hasten to add an apology to any brain surgeons reading this if they feel insulted (after all, you never know I might need their services in the future - some might argue my need is immediate!) The point of this for business owners is to understand where the real brain surgery is in their business. The part of their job that is most valuable to the business. The part only they can do.

Examples of brain surgery are: the marketing of your business, the relationships with your key customers, or if you are a consultant, the analysis of the problem you have been asked to solve. Not data entry, or possibly even data collection. And not the bookkeeping. So the challenge for business owners is to identify what part of their role is brain surgery. Theoretically, everything else can and should be delegated or outsourced.

A great theory, but how can you make this happen in the real world?

Business Systems. When you delegate or outsource, you need to document what the person who is doing the work will receive and what they will return to you, complete with standards and the form in which they will provide it to you. Then all involved need training in the system. This takes some work, but for a small investment in your time, the dividends are huge.

The theatre nurse does not know how to do brain surgery, but they know before the operation, what equipment the surgeon will need, and when they will need it. They will also know how the theatre and patient are to be prepared. Detailed procedures will have been developed so everyone in the theatre will know their role, and the brain surgeon will have optimised his or her time doing what they have been specifically trained to do.

When you know where the brain surgery is in your business, you will be able to leverage your time. You will spend more time with your customers, and more time working on your business, rather than in it. Ultimately, you will have a business that runs without you.

Why can a family-owned business fail?

Why can a family-owned business fail?
It so happens that a very large percentage of automotive dealerships around the world happen to be family-owned businesses. Having said that, there are a great many issues concerning family-owned companies, mainly regarding succession and management, which must be dealt with so that the company can accomplish the goals that the family sets.

Autologica presents a series of articles titled "Common Problems in Family-owned Businesses" based on an interview between J.C. Aimetta, an expert and coach who specializes in family-owned companies, and Al McClymont, CEO of Autologica Dealer Management Systems (www.autologica.net).

J.C. Aimetta is 46 years old and has dedicated the past 15 to helping owners and directors of over 65 family-owned small and medium-sized businesses manage growth, professionalize their management and prevent problems with succession. He has been a negotiator in family conflicts and in the sale of family-owned businesses. Mr. Aimetta teaches the subject in graduate and post-graduate courses in 3 Argentine universities, and has given conferences in Panama, Guatemala, El Salvador, Costa Rica, Colombia, Ecuador and Venezuela.

Here are some thoughts that emerged from the interview.

Al McClymont: I know this is a broad subject to be treated in such a short time, but I hope we can go through some of the main points. The first thing I would like to ask you is: What do you think are the main reasons a family-owned business can fail?

J.C. Aimetta: Well, the main reason is that the owner and manager roles get mixed up. Thus, an endless number of confusions occur as regards to who is the owner and who is the manager, the administrator.

For most family businesses the role is only one. Therefore, whenever you ask someone, Why do you run this business?, the answer is: Because it is mine. And what empowers you to run the business? The fact that it is mine.

Al McClymont: It's also important to analyze this from a management and operational point of view side, for example, when the sons and daughters of the owners reach an age appropriate for them to work in the company.

J.C. Aimetta: Well, what happens is that the new generations evolve and the children inherit the same notion, and believe that they can manage the business simply because they own it. As the children are generally more, two, three, four... a company cannot have four managers. And it is at this moment that most confusions arise.

Another thing to bear in mind is that in the long run the family always grows more than the company. In other words, there are more people intending to live from a business that is not growing as fast as the family. If we also consider the in-laws that sometimes, not always, want to work in the family business, conflicts may arise.

Furthermore, we have to bear in mind that job evaluations are done under emotional parameters. That is to say, whenever a relative is hired, it is very difficult to punish lackluster performance, a poor job. Because an emotional cost is paid, a "happiness" cost.

In a nutshell, a family-owned business maintains a delicate balance between happiness and efficiency, profitability and affection. As the business grows, its owners must try to gently tip the balance to one side. Because it is impossible to simultaneously achieve maximum profitability and maximum happiness, and make the growing family's entire happiness depend on one particular business.

In the next part of this interview, we'll talk about problems that may arise in a family-owned business when one family member wants to sell their share of the company.

Nature and Scope of Business Coaching

Nature and Scope of Business Coaching

Any established business can utilize business coaching as a resource to achieve a higher level of performance, learning, and satisfaction. After understanding the goals and work processes of a business, professional business coaches can organize a business coaching schedule and means of contact (e.g., in person, by phone, or via e-mail) that best serves the client. The nature of relationship between the coach and the client is a partnership, wherein the two come together to choose the focus, format, and desired outcomes of their work. Coaching does not aim at providing psychological relief or treat cognitive or emotional challenges. It aims to help the clients improve their learning and performance, and enhance their quality of life. Business coaching primarily focuses on the present and future with the only exception being that sometimes information from the client's past is used for clarifying where the client is today. Although the coach is encouraged to offer advice, opinions, and suggestions, the final decision of accepting or declining what is offered rests with the client who has the ultimate responsibility for action.

Coaches may or may not have specific knowledge of a given subject area or industry. Those who do have knowledge in other areas can use it to illuminate the coaching process but do not use this particular knowledge to identify, direct, or design solutions for the client. The relationship between the coach and the client is not based on the client's position or performance but is characterized by a growing and mutual appreciation and respect for each other as individuals. Information provided to the coach is used to promote the client's awareness and choice of action and not for evaluating performance or producing reports for outsiders. Coaching can be used to address a wide variety of subjects ranging from personal to professional as determined by the coach and the client. It empowers the client with a greater capacity to produce results and have a greater confidence in their ability to do so.

The business coaching process starts with the assessment of the business' current potential and challenges, defining the scope of the relationship, identifying priorities for action, and establishing specific desired outcomes. Apart from creating awareness about business processes, business coaching also provides a yardstick for creating coaching goals and actionable strategies, and offers a method for evaluating progress. In follow-up coaching sessions the coach supplies supplementary resources in the form of relevant articles, checklists, assessments, or models to support management policies and actions. The duration of business coaching depends on business needs and preferences.

Business coaching derives its concepts, models, and principles from varied sources such as behavioral sciences, management literature, spiritual traditions or other fields of the arts and humanities. These are then used for fostering shifts in perspective, promoting fresh insights, and providing an effective framework for managing opportunities and challenges. Coaching can also be based on an appreciative approach that focuses on what is right with the current business, what is working, what is wanted, and what is needed to get there. Through this approach, a coach can develop constructive communication skills and methods that the individual or team can utilize for enhancing personal communication. This approach is simple and offers a huge potential to harness creative thinking and goal-oriented action.