SubscribeSMALL BUSINESS LEADER January 2005
SMALL BUSINESS LEADERISSUE # 68
January, 2005
This is the time of year most business owners are doing a post mortem on the past year and beginning to plan for the new year ahead. My suggestion is that before you put the finishing touches on your plans you read this month's Feature Article, "Get the Results You Want!". We focus on the challenges faced by many and the steps you can take to assure getting the Results you want.
If you think your Results could benefit from a sales breakthrough, be sure to join us for this month's Telephone Roundtable, "How to Create Your Own Sales Breakthrough", with Guest Expert, Rochelle Togo-Figa, on January 20th. If you're in or around the New York Metropolitan area, plan to join us for our popular Brain Exchange Roundtable on January 18th. Details are below.
We are pleased to announce this month's Small Business Leader sponsor, FulcrumGallery.com, distributor of museum quality art prints & custom framing. I saw several items in their catalog that I would be proud to have in my office. Do check it out.
To your success,
Marian Banker
Publisher
Small Business Leader
marian@primestrategies.com
www.primestrategies.com
In This Issue:
Feature Article:
Get the Results You Want!
NEWS
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Special Program
"Brain Exchange Roundtable"
Jan Lunchtime Telephone Roundtable
"How to Create Your Own Sales Breakthrough"
Articles:
PERSPECTIVE ON BUSINESS PLANNING
TRENDS FOR 2005
MORE ON TRENDS
CASH FLOW PROJECTIONS
MORE ON CASH FLOW
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FEATURE ARTICLE:
Get the Results You Want!
One of the greatest enemies of getting the results you want is disorganized thinking and unfocused actions. Look at the image on the left.
What do you see? Disorganized thinking and unfocused actions. When operating in this mode, there's lots of activity, but little is accomplished.
To get the results you want, those assets and actions have to be aligned and directed, like the image on the right. Look at the strength and power these two elements add.
Entrepreneurs tend to have lots of good ideas, usually function at high energy and are often impulsive. But what has the potential for a solid business often falls apart for lack of organization, structure, focus and direction. Actions are frequently taken haphazardly and sporadic without a goal or a plan.
The objective is to align assets and actions so they all go in the same direction - toward your goals. The sequence of steps is to identify and organize your assets (the value you provide to the marketplace), create a clear message and then strategically plan and take calculated, directed actions designed to lead to your goals.
In order to get the Results you want, you must align your Goals, your Strategy, your Plan and your Actions. Actions implement the Plan, which carries out the Strategy, which leads to your Goals. Therefore, Actions ultimately should lead to Goals. To the extent that Results match Goals, your Actions have been on-target and successful.
Answer the following questions to begin organizing and structuring a framework that will get you on track toward producing the Results you want.
Goals:
What results do you want from your efforts?
Total Revenue?
Sell X Number of products/services?
Generate X% revenue from New Market?
Strategy:
How do you plan to achieve your goals?
Identify and develop an untapped market?
Redefine our brand for New Market?
Plan:
What are the specific tasks to be accomplished? Who is responsible? When does each need to be done?
Actions:
When do you need to start and complete these tasks? What is the sequence? What is the timeframe for each?
Results:
What are the measurable outcomes from your Plan and Actions?
Compare actual Total Revenue to Revenue Goal
Compare actual Number of products/services sold by target date to Product Goal.
Compare actual percent of Total Revenue from New Market
To help organize her thinking she created a Market Research campaign and learned where and how her target market could be reached. Based on this research she created a marketing campaign that included specific, measurable Goals, a Strategy and Plan and specific Actions to carry out the Plan. Here is an excerpted picture of her process.
Goals: (for one year period)
1 - $2,500,000 in revenue
2 - A customer database of 10,000 and 20,000 transactions at an average sale of $125.
Strategy (excerpt from Marketing Plan)
1 a) Create incentive for existing customers to bring or refer a friend.
b) Add online catalog.
2 a) Hold fashion show and invite the press.
b) Capture customer info, including e- mail address and send monthly promos.
Plan:
1 a) Offer high end accessory item for one referral, 10% discount on merchandise for second referral.
b) Use existing online catalog service and start with top 20% of items in each category (to test online market)
2 a) Select show date, assign coordinator and write plan for show (to include online show).
b) Offer raffle of high end accessory in exchange for attendee/visitor info.
Actions:
1 a) Jennifer selected incentive item, ordered enough for marketing purposes, wrote and sent an introductory promotion to a targeted e-mailing list and existing customers. The incentive promotion was added to all marketing materials and promo coupons.
b) Jennifer directed research to find a suitable online catalog. Upon selection, she hired a web designer to design the page layout and a developer to set up the shopping cart and manage the site.
2 a) Jennifer assigned the Assistant Manager the job of coordinating the fashion show, which took place in the early Spring, prior to the Easter Holiday. The show plan included both an in-store and online fashion show of featured items.
b) Coordinator developed a data gathering form and had it created in print (for in-store) and online. Database was updated to capture info being gathered.
Results:
1 a) Total revenue the first year was just under $2,000,000. (80% of Goal)
b) Total number of customers in the database was 9,800 (98% of Goal) with 15,500 transactions (78% of Goal) and average sale of $129. (103% of Goal)
2 a) The fashion shows (using customers as models) received some media attention and produced 380 transactions at an average sale of $115. A fall fashion show using the same format produced 300 transactions at an average sale of $128.
b) E-mail promotions using the customer database attracted increased web traffic to the catalog. 60,000 visitors produced 1,650 transactions and 280 new customers. 11% of revenue came from online sales.
Conclusions:
Revenue results were 80% of Goal. Part of the shortfall was attributed to the fact that the online catalog took longer to develop than planned. Catalog revenue (11%) was less than expected. Average sale tended to be very close to target, so this can be used as a good gauge for future revenue projections. With early positive results from the online catalog, expansion of the catalog items and the overall product line should offer potential for additional revenue.
Jennifer was able to get her business on a solid footing with strategies and plans that she knew could produce the Results she wanted. You, too, can organize your thinking and focus your actions to get the Results you want.
Go for it!
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JANUARY SPONSOR
FulcrumGallery.com
Museum quality art prints & custom framing, Wall St. and "For the office" artwork.
As an exclusive offer to Small Business Leader subscribers, take 15% off any order! Use promo code BIZLEADERS at checkout. FulcrumGallery.com is a Princeton, NJ based reseller of art prints, under the wing of Metaverse Corporation (www.metaverse.cc ), a custom solutions software company specializing in Microsoft .NET implementations.
http://www.fulcrumgallery.com/q p_categories_quickpicks_posters_office.aspx? source=BizLeaders
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NEWS:
For those of you who fit the profile, this is a great way to get some visibility and credibility.
NEW LAW: ELECTRONIC FUND TRANSFER
As of October 28, 2004, banks have the option to transfer funds instantly between accounts when a check is deposited. This change eliminates the float that paper checks have traditionally provided. Once deposited funds from a customer's check become available within hours; and, of course, checks you write will also clear within hours. Learn more at http://federalreserve.gov/paymentsystems/tr uncation/default.htm.
SMALL BUSINESS SIZE RESTRUCTURING
Regulations regarding the definition of small business size are being reviewed prior to restructuring. To read the proposed changes and register your comments go to: http://www.regulations.gov/AGCY_SMALLBUS INESSADMINISTRATION.cfm
ENTREPRENEURIAL RESURGENCE AND JOB RECOVERY
The 18th annual Development Report Card for the States (DRC) finds a resurgence in entrepreneurial activity within the states. However, this resurgence isn't yet mature or widespread enough to provide a sufficient number of quality jobs to make up for the losses in recent years. http://www.cf ed.org/focus.m?parentid=34&siteid=245&id=245
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BRAIN EXCHANGE BUZZ:
Find out what New York regional small business leaders are buzzing about. Join the next Brain Exchange Roundtable, http://primest rategies.com/bxrt, on Tuesday, January 18th, 6:00 to 8:30 p.m. EST. You'll really get to know other entrepreneurs and be in a position to introduce yourself in a comfortable and informal business environment. This is where valuable connections are being made.
"I liked the diversity of the participants at the Roundtable. While I heard little that was new, there was much I needed to be reminded."
Donald Schwartz, ImageLink Productions
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January Lunchtime Telephone Roundtable
Moderator and Discussion Leader: Marian Banker, MBA, Business Leadership Coach
Topic:
"How to Create Your Own Sales Breakthrough"
Date: Thursday, January 20, 2004, 1 to 2 p.m. EST
Guest Expert: Rochelle Togo-Figa, is a Sales Coach, Trainer and Creator of The Sales Breakthrough SystemTM, a 9 step sales process that shows you exactly what you need to do to close more business and get more clients. She has more than 20 years of sales experience and now trains clients how to significantly increase their earnings in record breaking time.
In this Roundtable, Rochelle will cover the 9 steps of The Sales Breakthrough SystemTM and how you can apply these steps to your business immediately. Here's what will be covered:
Uncovering and moving through your barriers to sales success
Setting up the foundation to succeed in sales
Creating a sales action plan for breakthrough results
Getting your first appointment
Mastering the sales presentation
Getting the prospect to open up
Selling without the "slick"
Doing what it takes to close the sale
Implementing a follow-up system that works!
Benefit from the wisdom of an expert who has helped hundreds create their own sales breakthrough. Plan to join us.
There is NO CHARGE for the Roundtable.
To register and receive the call-in number, send an e-mail to roundtable12005@primestrategies.com Within minutes you will receive the call-in number and instructions by- email from our autoresponder.
Here's what's been said about our popular Roundtable.
"The Guest Expert gave fresh ideas to reinvigorate the small business owner. I love the format."
Carolyn Tierney, ASID, Ferrium Design Studio
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SPECIAL EVENT:
BIG APPLE BUSINESS ACCELERATOR - A BDI Speednetworking Event
Join the movers, shakers, networkers and business executives from around the city that want to accelerate their professional connections. If you are a senior level decision-maker that wants to enhance your personal and professional network, this event is one you can't afford to miss.
Full details at https://www.bdionline.com/speednetworking/. Prime Strategies is a member and supporting organization for this event. Use promo code "pstrategis" to receive a $20 discount.
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Articles:
PERSPECTIVE ON BUSINESS PLANNING
Start-up expert, Jay Ebben, clearly summarizes the role that the narrative and the financial parts of your Business Plan play in the success of your business. It's a great, quick review of the business planning process and why you need to "write your story".
http://www.inc.com/resources/startup/articles/20041 101/bplans.htmlCRLF#
TRENDS FOR 2005
Fast Company's Fast Forward highlights what you can expect to see more of in the coming year. Bottom line: Relationships are the foundation for an increasing amount of the business being done. No surprise there.
http://www.fastcompany.com/fastforward/forward- networking.html
MORE ON TRENDS
According to an article in the December Small Business Digest increased classified ad revenue confirms that small firms are gearing up for a big marketing and hiring push in 2005.
http://www.2sbdigest.com/articles/04/12/1.shtml
CASH FLOW PROJECTIONS
Many a business has gone under for lack of adequate cash flow. Creating a cash flow projection isn't hard; it's just a matter of knowing the steps. Read this article provided by the Open Small Business Network and you'll be ready to get started.
http://www.staples.com/content/SBA/ProjectingCash Flow.asp
MORE ON CASH FLOW
Here's another article from MasterCard on managing your cash flow. They offer a good sample Cash Flow Statement and advice on managing with both a negative and a positive cash flow.
http://www.mastercardbusiness.com/assets/brochure /smallbiz/manage_cash_flow.pdf
ABOUT THE PUBLISHER:
Marian Banker has been publishing Small Business Leader since January, 1999. Her focus is on bringing to the busy entrepreneur a quick look into the current world of small business from the perspective she's gained through coaching, consulting and training entrepreneurs in both service and product based businesses.
Marian offers individual coaching, business support groups, seminars and workshops on topics of critical interest to small business owners. Her monthly Lunchtime Telephone Roundtable has proven to be a popular way for business owners to come together around a specific business topic without leaving their office. See notice about this month's topic in the content above.
To learn more about her services, visit http://primestrategies.com.
FEEDBACK:
Your feedback is always appreciated. Please write to marian@primestrategies.com.
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COPYRIGHT 2004 SMALL BUSINESS LEADER
A publication of Prime Strategies, 333 East 23rd St., New York, NY 10010
http://primestrategies.com
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