Archive for the ‘Uncategorized’ Category

Budgeting for Next Year

Tuesday, September 29th, 2009

Third quarter is drawing to a close and it is time to start focusing on the new year. The 2009 fiscal year is on track to be one of the worst that our nation has seen. On the bright side, if your company still in business you are doing something right. So take some time now to prepare for another year of struggle.

Begin looking at the budgeting and forecasts for 2010 now. Look at 2009 and see how sales were. Did they slip, maintain or possibly even go up? Whatever happened, for a conservative 2010 forecast, take the sales number and drop it by 10%. Is the company going to be able to survive with 10% less income. If not, start looking at what needs to be cut. Do layoffs need to be made in the beginning of 2010 or does over head need to be cut. Determine what items can go and start planning on how that will be executed.

Then start thinking about how sales can be prevented from dropping. If marketing avenues are being ignored, pursue them. Start contacting clients about next year, beat your competition to sale. If new products are in development, focus on how they are going to be placed in the marketplace to be competitive and make money.

Start focusing on cuts and sales maintenance now for success in a rocky 2010.

Shark Tank on ABC

Monday, August 10th, 2009

Last night I watched a great show on ABC, called Shark Tank. I will first admit that I am intrigued by reality TV shows that work with small business and entrepreneurs, such as Peter Perfect and We Mean Business with Bill Rancic, to name a few. But, shark tank really got me excited.

The premise is that there is a panel of 5 business “sharks” who entrepreneurs are pitching their businesses to. These entrepreneurs are looking for investors in their company and are offering a piece of the company for some investment cash. The sharks are brutally honest about how they feel about the company, the entrepreneur and the products.

The part that I liked the most is it actually felt real. And by that I mean it is extremely tough to get capital for a new and often even an existing business. These sharks expected a large piece of the business for their cash. They weren’t just going to give someone a pile of money for a small stake in their small company. They were looking for a real Return on Investment. The entrepreneurs for the most part seemed shocked that the investors wanted such a large share of the business.

The fact is if you are the one putting up the money and in effect taking the risk, you expect to receive a high return. So I would recommend this show to gain an understanding of what it is like when you are out looking for funding and venture capital for your great idea. It is not meant to discourage people, but to let them know that while you came up with the great idea, the chances are high that someone else is going to profit as much or more off of that idea if you cannot afford to fund it yourself.

Check out Shark Tank Sundays 9/8c on ABC.

Networking – Broaden Your Horizons

Wednesday, July 29th, 2009

When getting ready to start a new business you are your company’s best asset. It is important to network, network, network. Networking provides the opportunity do many things for your new business. First it provides a start for your market research. Getting involved lets you see and hear what is going on in the community. It lets you get feedback on your business idea before you even start and perhaps alter your plan based on the economy, culture or current businesses available.

Next, networking gives you a perspective that you may not be able to get any other way. By networking you are receiving instant feedback not just about your product but the market that you are looking to enter. You may have the ability to react quickly to changes that others may not be aware of for months or even years.
Last networking is an excellent sales tool. You get to talk your company up to anyone who will listen. No one will ever sell your company better than you. You will also be able to gauge reactions in people’s faces versus just words. Sometimes being able to see how people react is much better than just hearing what you want to hear.

Networking can occur in any number of places. A good start is always local civic organizations, so become a joiner. Join the local Chamber of Commerce, Civitans, Small Business Groups or whatever is available in your community. Go to the meetings and events and talk to people. These are the same people who have done what you want to do. They will be able to provide you with an ear to the ground on what is going on and provide feedback about what you are doing. They will also become a great resource on who provides the best services for small businesses. Often once you become involved with one of the above groups, you will find people who can steer you to even more specific groups such as clubs or organizations that may be pertinent to your product.

Social organizations also provide a great avenue for networking. Groups such as the Elks or Shriners provide access to large groups of people who are involved in the community. If one of them is an organization that you may be interested in it could be a great avenue to pursue. Activities such as golfing, as cliché as it might sound, will provide another opportunity to meet people in business. Join a weekly golf league, bowling league, or book club and talk, talk, talk.

If your business lends itself to a specific industry, join any trade associations that may be affiliated with your business. Attend trade show and conferences to keep abreast of market changes and advancements as well as talk to others who may be in the same position as you and able to provide valuable insight.

Networking can also be very informal. When you are talking with friends be sure to share what is new and exciting about your business. When you are getting your hair cut or talking to a nurse at a doctor’s visit, or when you are waiting in line at the grocery store, talk. You have nothing to lose by talking up your business. You never know who might tell who about what you do or have and that person down the line may become your best client.

The people in these groups have just become part of your grassroots marketing. If you are excited about what you are doing and convey it, the people you are networking with will share your excitement and begin telling others. You are the epicenter for your business and everything ripples out from you. While every person you meet may not be a potential client, remember they may know someone who is.