Small Business Guru

Big Picture Thinking

I have a big issue with long-term business planning.... actually, I have many.  1. It’s very hard to predict the future; 2. I have enough trouble thinking about next month, let alone the next few years; 3. Most small business owners don’t have the time, resources or industry data to make sound predictions or meaningful plans and 4. I actually find it quite daunting to think of everything that is required of me to make my goals a reality, so setting the goals in the first place becomes a bit overwhelming.
However, I still believe it is very important to have an eye on the bigger picture of my business – I mean, let’s face it, if all I have to look forward to for the next 30-odd years is more of the same.... well, that doesn’t exactly turn me on.

I know many small business owners find business planning just as challenging as I do.... which is why I recommend planning in a ‘general’ sense – clarifying the picture of the general essence of your business in the longer term rather than creating a list of ‘disconnected’ targets.

Answering questions like....

• Who will I be working with?

• How will I fill my days?
• What will my business be known for?
• What kind of lifestyle do I want to have and how will my business support that?

.... give you a sense of the general direction you need to take your business.... and gives you benchmarks against which you can measure new opportunities or strategies. 

Once you have this kind of picture in your mind, then you can create short-term goals or focus points for moving closer to your bigger picture.  Personally, I work well with a 6-month plan... that keeps me focussed on key projects and strategies that move me closer to my bigger picture outcomes.  Once those projects are complete, the next strategies become apparent... and I keep moving forward with flexibility and within the context of the wider economy.... all the while moving closer to my big picture outcomes.

How do you stay focussed on your bigger picture?  Vision boards?  Goals? Traditional business plan?  Other business plan format?  Let me know in the comments below.

Igniting your business performance through strategy and mentoring,

Cat

Marketing - the foundation for your business

There are really only 4 things you need to 'handle' in business;

1. Marketing
2. Sales
3. Everything else (that is, the systems that support 1 & 2)
4. You

Why?  Because if you are not selling something, you are not making money.... and you can't sell anything until you have marketed it.  Therefore anything you do that does not support your marketing or sales efforts are a waste of time.... your administrative, financial and HR systems should all support your marketing and sales functions.

So, from that position.... I then read this blog post from one of my favourite bloggers - Seth Godin - Which Comes First, the product or the marketing?

Marketing really is the number 1 priority in your business - it's the platform on which everything else is based.

Cat

Strong Foundations

Tuesday 27th January this year signalls the start of the Chinese New Year.  2009 is the year of the Earth Ox and provides a focus on foundations, getting your house in order and themes of patience, relationships and systems.

In the current climate of panic, fear and resultant consumer caution, giving some attention to the foundations of your business is a sound idea.  When the economy bounces back (which it will do, it’s just a matter of when), the businesses that will best positioned to take advantage will be the ones who have rock-solid foundations.... not those built on sand. 

So what foundations do you need to look at?

From a marketing perspective, what is your core marketing message?  What does your brand stand for?  Is your marketing working for you or are you wasting time and money on random, hit-and-miss campaigns?

A solid marketing foundation – an integrated marketing plan based on a consistent message, strong relationships and networks.

In the sales area, do you have a consistent sales process with a high success rate?  Can you track your sales leads and follow-up on customers who are still in ‘decision-mode’?

A solid sales foundation – a strong sales process that works supported by a relationship management system.

From an operations perspective, do you regularly experience ‘drama-free’ days, or are you often “putting out fires”?

A solid operations foundation – systems and processes that support the marketing and sales functions while efficiently managing the administrative, financial and compliance requirements of the business (they don’t have to be documented, but they do need to work).

And lastly but most importantly, YOU (the driver of the business) – are you clear on your direction, your focus and targets for the year.... or are you scrambling to keep up?

A solid owner foundation – clear business and personal goals, how you’re going to achieve them, personal development opportunities and personal wellbeing.

Remember the whole year is about strengthening your foundations... it doesn’t all have to happen overnight.  Just schedule some time each month where you can ‘structurally’ review the business and strengthen as you go.

Thoughts on Leadership

Witnessing the inauguration of President Obama has reminded me about the power of strong leadership.

Strong leadership engages people.  It provides brightness of the future at the same time as grounded realism regarding the current reality.  Strong leadership inspires people to be better and to feel better about themselves... it's not shallow inspiration along the lines of "wow, what an amazing person he/she is", rather it inspires feelings of fullness, greatness and 'big-ness' in the witness's own minds.  It leaves us aspiring to be more than we currently are, individually and collectively.

Strong leadership is enhanced by powerful oratorship.... but it is grounded in integrity, clarity and consistency of message.

It is an exciting day for the planet today... not because a black man is now President of the US... but because today the world formally 'gave power' to a man who has been a powerful leader for quite a while. 

People get the leaders they deserve.... and Obama's inauguration today reflects a dramatic shift in the paradigms, thoughts and beliefs of not only the people of the US, but the people of the free world.  Metaphysically this is a remarkable shift....

Be a strong leader in your own context.  Be a person of integrity, clarity and consistency of message.  Engage with the people in your life, inspire them through your being... not through anything in particular that you 'do'.  Leadership is required everywhere in life.... not just at the White House, in Parliament House or in our Boardrooms, but in our homes, with our children, with our friends, in our societies.

Wow.... what a difference a leader makes!

C

Tough times? Really?

I am so tired of hearing about how tough things are.  People are citing the current economic climate as the reason for not buying, the reason why business is struggling, the reason why they’re ‘cutting back’.

The fact is, for most people, things are no more ‘tough’ than they were two months ago (I know some people have unfortunately lost their jobs but that’s not the majority).  Sure, people’s asset-base has taken a hit (yes, your superannuation fund does not look as good as it did month ago), but your day-to-day discretionary income has not changed one iota.  Grocery prices having been going up for the last 18 months.... petrol prices have been going up for the last 12 months.... so we have already been dealing with those increased cash flow burdens. 

Since the supposed economic crisis hit, petrol prices have actually come down... and so have interest rates!!  So in reality, most people should have more free cash to spend... not less!!

The fact of the matter is mainstream media would have us believe that we are moments away from recession.  This does nothing other than fuel fear... which influences buyer behaviour... which then creates a self-fulfilling prophecy of slowed economic growth.  Readers older than 50 would recall similar ‘slow-downs’... and would recall coming out of them unharmed.  The problem is we’ve had such a long period of growth that most people in business haven’t seen ‘conditions’ like these before – it’s easy to make hay while the sun shines.....

So what does it mean for you, a small-medium business owner?

Normal operations!  Stop thinking ‘doom and gloom’ – be proactive amidst the negativity.

Get smart with your marketing and reconnect with your customers.... demonstrate you are as important (and valuable) to them now as you were last month.  Expand your communications, your programs, your products, your services – resist the temptation to shrink and ‘go small’.

Unless you are selling to retirees or people servicing that market, your customers have the same discretionary income (if not more) they did six months ago.  Don’t fall into the trap of thinking ‘times are tough’.  They’re not.  They’re just different. 

Where, now, how

Business owners are solution seekers - they see a problem, they find a solution.  Fast.

However this efficiency can often be to their detriment.  Why?  Because solving an apparent problem often ignores the bigger picture, or the true outcome of the situation.

So instead of asking 'how do I fix this problem I'm having?' (now, how), we really need to ask ourselves 'where do I want to be?', 'what is the gap between desired state and now?' and then, and only then, 'what is the best way to bridge that gap?' (where, now, how)

An associate of mine is considering selling his business.  Why?  Because he no longer wants to put in the 10 hour days that he currently puts in to make the business as successful as it is.  However he is still quite passionate about the business and has quite a strong emotional attachment to it... but can't see how to reduce his time input without selling.

Rather than looking first to the solution, I've suggested that he look at what it is he wants to achieve - what are his outcomes, or what where he wants to be.  Then, once clear on the objectives, we can determine a range of possible solutions - put in a manager, bring in a business partner to share the load, hire extra casual staff or sell.

Immediately trying to fix the problem might be efficient - that is, we develop a solution quickly and move on, but it might not be effective - that is, meets the most number of possible objectives.  We want our business strategies to be both efficient and effective.  If my friend just sells his business, he solves his current time challenge, but he loses on a whole range of other 'desired states', such as profiting from his hard work to date, being part of a business he really enjoys and having a more leveraged income stream.

So don't be so quick to solve your next problem.... rather look to the overall outcomes then figure out how to get as many of them as you can.