2.  Be aware of the difference between what a client “perceives” as the product value and its “actual” value.  Once you determine the break-even cost (actual value) of your product, you have established a base price. Now you need to focus on establishing the “perceived” value of the product to the client. The client usually knows the market price range of the product, so your job is to show the client your enhanced attributes of the product.  You want your client to begin to “feel” that you are offering a product of greater value than what is on the general market.  If you have developed a strong list of benefits and advantages to serve their need, they will “perceive” your product as worth more, and will be willing to pay more for your enhanced version. These unique attributes could possibly be an improvement you’ve added, or something your competitors have failed to point out, or even showing them how to more efficiently use your product to better fill their need.

3.  Peer image often influences product purchase.  The “in thing” has a great deal of emotional appeal. Know your target market and strive for an innovative way to tap into that perceived need.

4.  Competing on price. Be sure you know what the pricing for your product, or similar product, is within the general market. If you undercut the going rate too much, not only are you undermining your own marketplace by diminishing the going price, but the backlash from your competitors might trigger a price war.  No one ever wins a price war, and the one that ultimately comes out on top will be the larger company(s) with the deepest pockets. A idea is to not open that Pandora’s box at all.

5.  Play fair.  Many times we get so involved in breaking our services into multiple “options” we lose sight of how the client may respond. Yes, many times more can be collected by doing it this way, but keep it to a minimum. No one likes to be “nickel and dimed” so be careful not to over-do the options and their escalating costs. 

Even though options can give you leverage as to what you will or won’t do without additional payment, if the client ultimately feels you aren’t playing fair, and not showing proper empathy for their needs, it will hurt you in the long run.  You may consider it fair pricing, but if the client doesn’t – you lose.

Compliments of Lew West Business Consultants
http://www.lewwest.com/   Blog – http://www.mynext30.com/

You have a new “Concept” or “Idea”.  Congratulations!  Now what do you do?

If the acquisition of capital is your primary goal for your business, then let’s take a step back and see what you need to do.

Many entrepreneurs become so excited with their New Concept they mentally start banking their money – but oops, they don’t have any money.  No problem. They’ll shop their great new concept to the highest bidder, get enough to pay-off their debts, hire the necessary personnel to run the new piece of business and still have a healthy operating budget.  Sounds doable, right?   

And Why Not?  It seems you read about these kinds of successes all the time, don’t you!? 

While you should “never say never”, the reality of the odds playing out, as described above, are right up there with winning the national lottery.  The good news is there are ways to better those odds.

1. Specifically, know who you are going to approach to request funding.  Gather all of the contact information and as much background knowledge as possible about the company and/or the contact person you will be approaching.

To keep rejection to a minimum, search out those investors who have an interest in your industry and specifically your niche focus.  Just because an individual or group has money to invest doesn’t mean your particular niche is of interest to them.  e.g. – if their passion is to build a station on the moon, don’t ask them to fund your fishing rod conversion system.  You will only suffer an unnecessary rejection.  It isn’t personal; the Investor just isn’t interested in your concept no matter how well you have developed your concept and financial information.

Generally the funding options are:

• Banks
• Third Party Investors (includes Angel Investors and industry Investors)
• Venture Capitalists  (be very clear on what they want in return from you)
• Private Lenders  (usually family or friends)

2. Some of the Basics you will need to have ready:

If your “concept” or “idea” is to be taken seriously by any of these investors it must be verified with a well developed business model/plan.  This plan includes how much capital you are going to need and specifically how you are going to use it.  

When you are able to catch an Investor’s interest in your business proposition, the first thing they will do is to review your supporting financials in order to understand if this business proposition supports a sustainable and scalable investment opportunity (on-going profitable growth curve).  If your numbers pass their scrutiny, they will then – and only then – want to:

• better understand the product offering,
• investigate the potential investment opportunity more fully, and
• review your management team. i.e. -do you and your key personnel have the ability and expertise to make it happen?

Your well developed business model/plan will be a major key in the investor’s decision as to whether your concept is worth pursuing.

If you have shown the Investor realistic financials with verifiable backup information, they will then want to review a well developed Business Model/Business Plan.   If they are going to invest their money into your concept, they want an in-depth understanding of the business.

Remember, their business is funding companies with the expectation of receiving a profitable return as soon as possible. They aren’t interested in dreams and they don’t like surprises.  

Great things can happen if you put your concentrated effort, energy and diligence into the development of your business plan.  Pick the Investor with the most empathy and appreciation of your concept, and present realistic financials knowledgeably. 

Build the odds in your favor.

Compliments of Lew West Business Consultants
www.lewwest.com   Blog – www.MyNext30.com

I am often amused when someone claims they don’t need a BP (Business Plan) because they “fly by the seat of their pants”, or “a BP is a waste of time”; then smugly point out they have never had a BP and they are so busy they can’t keep up.  To me, that’s a sign they are in the middle of a wild fire instead of a controlled burn. One day they are going to burn out.

To have a successful business it is necessary to keep track of income; cost of goods; general expenses; payroll; commissions, principal’s draw – in other words;

• finances;
• how a larger segment of the marketplace can be gained and maintained;
• employee management;
• distribution – to name a few. 

Whether they are keeping this information in their head, or delegated to trusted employees, they are working a rough version of a BP.  Unfortunately without a clear vision of what their company will look like at maturity, they will never get there.  The entrepreneur will never know when to step back or how to set up the company to flourish on its own.  Instead, the entrepreneur is establishing a guaranteed, forever Job.

Every active company has some kind of a BP, even if they don’t have it in an organized format. It is also a fact that without a tangible interactive plan they never realize the full potential of their business. There will always be some aspect of the business being neglected because the owner becomes so engrossed in just one or two areas that the overall health of the company is forgotten.

The same holds true for someone with a great business idea.  Even though owner can’t imagine how it could possibly fail, now is the time to check that concept with real numbers from the marketplace.  Even if they are convinced it will be profitable, until the marketplace is surveyed and the numbers are run, they are only projecting hope, not reality.    

A great deal of money can be saved by developing an informational BP that lays out an outline of the business, including costs and income.  Caution should be taken here.  Often an entrepreneur is so eager for it to work, there is a tendency to skew the numbers.   Now is the time that it is imperative to be objective and honest.  Make the business show You how it can be profitable.  If you can’t see a profit on paper now, how do you expect it to be profitable in the future? Better to spend a little money now in finding if the company can be profitable than for you to invest your life’s savings only to lose it all – including the capital seed to start a different business.

Entrepreneurs are not gamblers; true entrepreneurs only take calculated risks.

Compliments of Lew West Business Consultants
www.lewwest.com   Blog – www.MyNext30.com

In case you hadn’t noticed, many articles, experts, textbooks, etc. tell you that you are “confused” if you don’t subscribe to their particular definition of business terms.  I too have my set of definitions, and because this is my Blog you will find them listed below.

Please understand that my definitions, along with everybody else’s, are only words.  To each of us, in our attempt to convey those illusive, intangible concepts of business success, believe our words best describe them. 

The important thing, however, is that You are able to grasp the basic key concepts necessary to drive your business to its greatest potential.   

My favorite quote is, “If you don’t know where you are going, then you are probably already there.”  Becoming as clear as possible as to “Where You are Going” is often the difference between success and failure. 

I’m for success – by any definition.

 #1. Strategy or Action augmentation:

Here you utilize your “big picture” goal and begin enhancing that picture with the information accumulated in #1 & #5. From this collection of information, you can initially set the course

• for your business,
• its marketing direction and
• define the milestones to “make it happen”! 

 Bonus: Ultimately you want your strategies implemented in a way that your company is making money without you even being there – the quicker the better.

 #2. Financial Tracking: 

All income needs to be tracked daily – e.g. cash-flow and expenditures, sales, distribution, payroll and benefits, assets, inventory – in other words anything to do with what is happening to your company’s money.

 Bonus: Whenever funding is needed, you can create the requested documentation from your operation and financial summaries. 

 #3. A Marketing Plan is only one piece of your Grand Plan – albeit a very important and visible piece.  A Marketing Plan promotes your product to a specific segment of the marketplace.  By generating excitement and recognition for your product or service, Marketing’s role is to drive customers in your door. Once in the door, you close the sale, deliver their order and collect your money. 

 #4. Sales:

While Marketing creates the customer excitement and desire for the product or service, Sales does the actual close of the sale and collects the payment.  Although Marketing and Sales work closely together, their purpose and execution is very different.  Marketing creates a positive marketplace enabling Sales to utilize Marketing’s materials and created “need” to close the sale with individual clients.

 Bonus: Marketing generates interested prospects, Sales convert prospects into clients.

 Customer Service and Customer Retention are an important part of Marketing and Sales.  Questions and problems must be handled promptly and cheerfully along with scheduled on-going customer follow-up.

 #5. Operations:

Orders need to be filled quickly and efficiently so customers will be happy to reorder again, and become long-term clients. Quality of service while keeping costs in line is a major responsibility of Operations.  Depending upon the company structure,  employees are usually accountable to Operations.

 Bonus: Operations implements systems/procedures building toward company maturity while maintaining a unified and coordinated staff to achieve the company’s goals and purpose. 

 Congratulations! You now have a Working Business Plan!  All of the Steps listed #1-#5, are only segments of your total “Business Plan”.  Together the segments lay out a coordinated, tangible picture of your business, adjustable to the changing needs of the marketplace.

 Bonus: During this process, you have run various scenarios illustrating what will work and what won’t, and what would have only cost you time and m

By taking these preliminary planning steps,  

Your business will be set-up for long-term success.

Compliments of Lew West Business Consultants
www.lewwest.com   Blog – www.MyNext30.com

The first business owner fully understands the numbers required to run a company. He knows to the penny the start-up and general expenses, cost of goods, and the break-even point. He sees the trends and how the customers are responding to the company’s marketing and the employee efforts.

This financially focused business owner can explain and justify any numbers to the bank when additional funding is needed. He knows what is going on in the marketplace, how his business fits within his market niche and can readily adjust to keep the focus on that market. That’s a good thing, right?

The second business owner considers his primary need is to get his name and his brand out there. In his grand plan, exposure is the difference between success and failure. This marketing business owner is constantly on the street, or on the road, publicizing his business and making contacts. Where most of us encounter him is at every networking event, ribbon cutting, open house, committee, street corner ….. He seems to be everywhere. His potential customers are becoming familiar and comfortable with him and his business.

This marketing business owner’s logic is profound. Without customers, you don’t have a business. Obviously this marketing business owner has put together a well developed marketing strategy, thus he is going to be bringing in an increasing number of customers. That is good thing, right?

Both business owners are applying a winning strategy to their business – BUT ….

Let’s go back to the Numbers business owner. As knowledgeable as he is, his viewpoint is from the inside of the business. Basing everything on numbers, he does not quickly or easily implement new ideas. Even with the fluctuations in the marketplace, he continues to improve his current structure, but not make any major adjustments. It is more comfortable to stay with variations of the “tried and true” actions of the past.

Numbers are very necessary in the building and maintenance of a profitable company, but people and vision are also critical for long-term growth and success.
With that said, does that mean the marketing business owner has the right formula? Not necessarily.

The problem with the Marketing business owner is he is spending all of his time, energy, and focus outside of his business. Again, assuming this marketing business owner has put together a well developed marketing strategy, he is going to be bringing in an increasing number of customers. So what happens when his great marketing starts turning into larger and multiple orders?

Without competent order processing, fast and efficient distribution, inventory management, excellent customer service, and policies for repair and return in place, all of his time, effort, energy and expense with have been for naught.

Customers are not forgiving. If they have problems with submitting their order, receiving delivery in a timely manner (their concept of “timely”), or poor customer service, they won’t spend the time to order again.

Best advice for both owners is to closely examine the other’s procedures and duplicate them as much as possible into their own business. If they can’t do it themselves, this is a signal to carefully select an individual or company to develop that part of the business for them.

Both business owners are to be commended in utilizing their greatest strengths, but no one is perfect at everything. Recognizing this fact is what gives life to an exceptionally successful business.

Compliments of Lew West Business Consultants
http://www.lewwest.com   Blog – http://www.mynext30.com/

During our original discussion of “Identify your Target Market” we narrowed it to 4 main points:

1.  Become a specialist!  One of the first things you need to do is refine your product or service so you are NOT trying to be ‘all things to all people.’

2.  Next, you need to understand that Individuals and Businesses purchase products or services for different reasons. 

• Individuals purchase products or services for three basic reasons:
  • To satisfy basic needs.
  • To solve problems.
  • To make themselves feel good
• Businesses buy products or services for three additional reasons:
• • To increase revenue
  • To maintain the status quo
  • To decrease expenses.

3.  Once you have determined how your product or service fulfills the specific need of those in your target market, you can then laser-focus your marketing strategy.

4.  The next step in creating an effective marketing strategy zeroing in on your target market by way of Market Segmentation.

After reviewing the purchase motivations of the individual customer and the purchase motivation of businesses listed above you should be starting to visualize who you think your ‘ideal’ customer should be … or at least who you want it to be. Depending upon the nature of your business, (product or service), begin writing a description of this distinct customer.  Once that customer is clearly identified, you will be able to automatically screen everyone as to whether or not they are a potential customer.  This ability saves untold time and expense.

Based on the numbers you already have in your research, you even know approximately how many of those potential customers are in your area! Even subtracting the number of those you know are already loyal to some of the competitors, it is relatively simple to see who are available to be converted, or who have not yet purchased your product or service. 

Many times, of course, prospective customers don’t know about your company, or can’t tell the difference between your company and others. The good news is, once you know who fits into your defined criteria, you are able to ‘target’ that specific group.  Even if they are currently with the competition, you can help them understand the desirability of your product, or service, and its unique place in the marketplace.

As you become better established, you may decide that you would like to extend your target market outside of your local area. Going back to the basic reasons why people purchase goods or services, you will find new ways to channel your efforts toward your designated market.  Implementing the updated formula will make it possible for you to successfully continue capturing larger market shares.

On the other hand, if you ‘specialized’ your product or service but, following your local target market research, you discover that your actual market share is much less than first anticipated, what do you do? 

First of all, if the local target market customers will consistently spend enough on your product or service annually to keep you in the black, then you have nothing to fear.  While closely following your strategy plan, you will be able to increase your profitability as you are expanding your range of exposure.

BUT if that local market niche is only going to spend a minimum amount sporadically on your product or service – then you need to go ‘back to the drawing board’. 

Fortunately, as a result of your initial research and planning, you were able to discover this “short-fall” before investing too much time and money.  It is always disappointing to find it wasn’t the profitable niche you had anticipated, but the good news is, your research and fundamental planning will supply you with all the information needed to restructure your plan. 

When all of the pieces and parts are arranged to accommodate the needs of the customer, the result can be a thriving company.

Compliments of Lew West Business Consultants
www.lewwest.com   Blog – www.MyNext30.com

Take a good, objective look at your product and service – then ask yourself…

   “Who are, or who will be, my customers?”  

 In otherwords, Who will buy your products or services?

 Often a business person has

1) no idea who might buy the product or service, or

2) assumes that ‘Everyone’ will.  

 Either assumption can lead to wrong decisions, incorrect pricing, poor or no marketing strategy – and ultimately to business failure!

The most successful businesses understand that only a limited number of people will buy their product or service. The big question then is to determine (as closely as possible), who those potential people are.  It isn’t until those potential buyers are clearly defined, (targeted), that budgeting, marketing strategy, and promotional implementation can begin.  

By filling a defined need, of a clearly identified niche of potential customers, your reward will be a stronger and more profitable business.  It is also increases your marketing dollar efficiency and lowers your frustration level.

One of the first things you need to do is to refine your product or service so that you are NOT trying to be ‘all things to all people.’ Become a specialist!

This could include offering exceptional support programs to make life simpler for them.

Other focus could be the exceptional quality of the product or service, and/or have the best customer service possible … further enhancing the customer’s loyalty and making it more difficult for the competition to steal them away.  

A possible negative is that this decision could potentially eliminate a percentage of your current market – but it also gives you a ‘niche’ that can be expanded in a way that other distributors are much less apt to be able to take advantage of.

Next, you need to understand that individuals purchase products or services for different reasons than businesses. 

Individuals purchase products or services for three basic reasons:

• To satisfy basic needs.
• To solve problems.
• To make themselves feel good.

Businesses buy products or services for three additional reasons:

• To increase revenue
• To maintain the status quo
• To decrease expenses.

If you fill one or more of these needs, you have found a target market.

Once you have determined how your product or service fulfills the specific need of those in your target market, you can then laser-focus your marketing strategy.

Some of the questions and issues you will be addressing while developing your Marketing program will be:

• Presenting a professional image while still controlling costs  
• How to save time and money?
• How can we maximize our image?
• How do we increase our customer base?
• How do we achieve our greatest customer retention/loyalty?”

By answering the above, you further differentiate your company from the crowd.

The next step in creating an effective marketing strategy is to zero in on your target market using Market Segmentation.

Determine how large you want to develop your company

Where do you want to sell your products or services

Is the customer appeal for your product or services best suited to be sold -

• Internationally
• Nationally
• Regionally
• Locally

It is advisable to begin with your local market as a learning/training ground.  Once you have all of your systems/procedures in place and running smoothly, you may then decide what your next step of expansion will be.

Assuming that your primary market is local business, you’ll need to identify the market segments that best fit your target market criteria:

• Company size (Small, Medium or Large companies)
• Single or multiple locations
• HQ or branch
• Number of employees
• Type of company/industry (corporate, green, non-profit etc)
• Each company’s potential need for your product or service
• When applicable, it is advantageous to know how they purchase: seasonally, locally, custom orders or volume, as well as who makes the decisions

Part II of this topic will be on my Blog www.MyNext30.com next week.

Compliments of Lew West Business Consultants
www.lewwest.com   Blog – www.MyNext30.com

Yes – and – No.

Yes.  If you are passionate about what you are doing, you possibly have a greater chance to be successful.  One of the biggest reasons is that you are much less apt to resent the hours and sacrifices it takes to develop your company.  The 24/7 effort becomes a labor of love and enjoyment instead of drudgery. 

Being passionate inspires a positive and optimistic attitude which attracts loyal clients, quality vendors and multiple opportunities.  A passionate person attracts success.

Yes.  Being passionate about what you are doing is a decided plus.

So when isn’t passion enough?  When is the answer No?

It is good to be passionate, but much depends upon how that passion is utilized.  That passion needs to be focused on thinking through, and strategically planning its milestones of action from inception to its projected maturity. 

How many times have we heard, “If you have the passion, success will come.” 

Unfortunately there are small business owners who take that as a literal proclamation, using it as an excuse to sit back and wait for success to happen.  They forget that a business concept cannot become a tangible reality until it is converted into actual profit & loss numbers and a well developed operating system with effective marketing.

Passions for some individuals are hobby activities like skiing, hiking, horseback riding, reading, computer games, sewing, gardening, etc..  But can any of these be developed into a source of income capable of supporting you and your family?  Can enough income be generated to take care of you after you no longer chose to work, or unable to?  If so, can it happen within a time frame that you will be able to enjoy it?”

With a certain amount of ingenuity, and it is developed within a profitable business model, the answer may be “yes”.

A cautionary note:  It doesn’t matter how passionate you are about something.  When you need for it to cover all expenses for the rest of your life, then you better be sure it is capable of doing so.  Don’t trust your “gut feeling”, or depend upon your passion to carry you through.  Ask for an outside professional review.  With your future in the balance you will be glad you did.

Chances are by this time, the positive fruit of your hard work and strategic planning is beginning to show, or at the very least you can see attainable success on the immediate horizon. 

The best news is that even if you didn’t originally feel passion for what you are doing, with the confirmation of your success your passion will reveal itself.

Yes.  Being passionate about what you are doing is a very good thing.

 Compliments of Lew West Business Consultants
www.lewwest.com   Blog – www.MyNext30.com

 Inc. Newsletter,  Inc. Magazine

Related Terms: Employee Hiring

Employee references are the positive or negative comments about an employee’s job performance provided to a prospective employer. In most cases, a prospective employer will contact a person’s current or former employer to seek references as part of the process of considering that person for a new position. Prospective employers check references during the interview process in order to ensure that a candidate’s assertions about his or her job skills and work experience are accurate. In fact, obtaining references is one of the most important parts of the hiring process because it can provide valuable information that sets one candidate apart from others and facilitates a sound hiring decision.

Although seeking references has a number of benefits for the prospective employer, providing references can be a complicated issue for the current or former employer. As Olga Aikin pointed out in People Management, companies that provide references have a duty both to the employee who is the subject of the reference and to the prospective employer who is the recipient of the reference. Giving a negative reference may expose the company to legal liability if the former employee does not get a desired job and decides to sue for defamation or slander. But providing a falsely positive reference or failing to disclose potentially damaging information can leave the company open to legal liability as well.

If a candidate is selected for a position on the basis of a reference and then commits a crime or causes harm to another person while on the job, the new employer might sue the provider of the reference. Several court decisions have held a former employer liable for crimes committed by a former employee in a new job because that employer had provided a positive reference and failed to notify the prospective employer about one or more negative aspects of the former employee’s performance. As a result of these dual sources of liability, providing references sometimes leaves small business owners stuck in the middle. “The issue of references is always controversial, involving a balance of employers’ fears of legal liability, interests in providing relevant information to prospective employers, and concerns for fairness to former employees,” Ellen Harshman and Denise R. Chachere wrote in the Journal of Business Ethics.

AVOIDING LEGAL LIABILITY WHEN PROVIDING REFERENCES

In recent years, many companies have tried to avoid the legal liability involved in providing employee references by enacting policies that strictly limit the information they are willing to supply. When asked for a reference, these companies will not provide any assessment of an employee’s job performance. Instead, they will only confirm the person’s job title, dates of employment, and salary. “Due to legal ramifications, corporate executives are increasingly wary of being specific about former employees and their work histories,” Max Messmer wrote in Business Credit. “Providing references can be a double-edged sword.” In fact, Messmer noted that 74 percent of Fortune 1000 companies have a policy limiting employee references to a confirmation of basic employment information. However, half of the executives polled said they were willing to bend the company rules in order to give positive references for their best performers.

According to Robert A. Siegel and Anne E. Garrett in the Los Angeles Business Journal, small business owners have two main options in providing employee references without exposing themselves to legal liability. First, as noted above, they can simply verify the candidate’s basic employment information without making any positive or negative assessment of his or her performance or qualifications. This is known as a “no comment” reference. It has become the policy at a wide range of companies, despite the fact that the prospective employer gains very little information upon which to base a hiring decision.

The second option open to small business owners is to provide a “full disclosure” reference. This type of reference often consists of a letter containing all the relevant facts of a person’s employment, including an appraisal of their performance and potential. Experts suggest that an employer cannot be held liable for defamation in providing this type of reference as long as it is made without malice and the information is based on credible evidence. In fact, several states have enacted laws protecting employers from civil liability when they provide references that include job performance information. But some employers still choose to play it safe by only providing information based on performance appraisals that were signed by the former employee.

“In making a decision between the two alternatives, employers will have to balance the value of full disclosure to prospective employers against the risks of litigation presented by that choice,” Siegel and Garrett wrote. “While full disclosure is viewed by many observers as the most desirable course, and it is clear that many employers will decide to select that alternative in the future, employers should do so with care in order to avoid litigation challenges by unhappy employees.”

TIPS FOR EMPLOYERS CHECKING REFERENCES

With so many companies limiting the reference information they are willing to provide about former employees, small business owners often face a challenge in obtaining the information they need to make sound hiring decisions. In his article, Messmer supplied a series of suggestions for small business owners to use in obtaining references for prospective employees. First, he noted that companies should inform all prospective employees that their backgrounds will be checked carefully prior to hiring. It may be helpful to obtain written approval from all candidates to check their references, as well as a signed release allowing former employers to speak freely without fear of legal liability.

Messmer also suggested that the small business owner, or the person doing the hiring, call prospective employees’ references themselves, rather than delegating the task to a human resources representative. It may be helpful to learn something about the candidate’s former employer in advance in order to establish trust during the call. If the former employer is reluctant to provide much information—perhaps due to a company policy limiting employee references—Messmer suggests that the small business owner try to engage him or her in conversation by asking open-ended questions. If all else fails, Messmer recommends at least reading parts of the candidate’s resume to the former employer and asking him or her to confirm the information it contains.

Other suggestions for small business owners include making sure the references you check are legitimate by calling a central switchboard number at the former employer’s offices and asking for the person providing the reference, and checking several references for each candidate to be certain you obtain a clear picture of their qualifications. The Internet may offer another source of basic information about some potential employees. However, small business owners should keep in mind that the same anti-discrimination laws apply to checking references that apply to interviewing: you cannot ask about a candidate’s age, marital status, race, religion, etc. or use that information in your hiring decisions. In filling sensitive positions, it may be helpful to hire an outside firm to conduct a detailed background check.

Although the process of checking references may be time-consuming, it is a vital part of making good hiring decisions. “In the current low unemployment environment, it can be tempting to skip calling references in favor of making a quick decision,” Messmer noted. “However, it is important not to overlook this important step in the employment process, because one poor hiring decision can affect the productivity of an entire department. Reference checking is hard work and not without pitfalls, but with a little extra effort it can be one of the most useful tools in making the right hiring decisions.”

Compliments of Lew West Business Consultants
www.lewwest.com         Blog – www.MyNext30.com

 #1. The basic Business Plan lays out the factual, nuts and bolts foundation of your business.  From that full blue print of your business, you may confidently: 

• Build your business
• Implement on-going strategies

 #2. Whenever funding is needed, you are able create the needed documentation from your regularly updated Business Plan to show the summary of operations and the financial information requested by your funding source. 

Being able to reference your working master Business Plan, you will make a confident and knowledgeable presentation.

Strategy Plan:

 A Strategy Plan utilizes the Business Plan information with an emphasis on HOW each area of information can be leveraged into a single-focused Strategic Plan designed to achieve the company’s optimum success. 

You can design strategies that can make your company make money without you even being there.

 Your Business Plan will have already defined who those customers should be that Marketing is sending in your door. Your Strategy Plan will have put into place what procedures you and your staff will do from the time the customer comes in the door (or places their order by phone or online) until the customer has received their order and you have banked their payment.

 (Note of Wisdom: Hope is not a Strategy Plan)

 Marketing Plan and Sales Plan:

 A Marketing Plan is only one piece of your Business Plan and Strategy Plan – albeit a very important piece.  A Marketing Plan promotes your product to the correct segment of the Marketplace by generating excitement and recognition of your product/service. A Marketing Plan drives customers in your door so you can close the sale, deliver their order and collect your money. 

 While Marketing defines the strategy to attract the customer, Sales does the one-on-one close of the sale, i.e. implements Marketing’s strategies.  Although they work together, their purpose and execution is completely different.

 Taking the preliminary steps to embrace these Powerful Plans,

 Your business will be set-up for long-term success.

Compliments of Lew West Business Consultants 

www.lewwest.com & www.MyNext30.com - Blog