Tag Archives: Business Plans

Entrepreneur Quotes – Just do it!

Entrepreneur - Just do it!I was putting together a business plan workshop for some MBA students the other day and looked for a couple of quotes to illustrate points. There are, as you can imagine, quotes for everything, sometimes contradictory.

There is one area though that no one disagrees with and it happens to be a pet issue with me. That of “just do it”. When I talk to potential entrepreneurs, far too many are waiting for “the right time” or someone to do it for them. Honestly, you just need to take a deep breath and then get on with it.

Anyway here are some thoughts from quite successful people – but less thinking, more doing…

“Talk to your customers – provide what they want, not what you want”
Jacqueline Gold – Anne Summers

“Make sure your business goals are measurable – if it’s measurable it’s manageable”
Steve Mills – MRI Network

“Be detailed, be persistent”
Sahar Hashemi – Coffee Republic

“Don’t be afraid of failure, we worry about that too much”
Tim Smit – Eden Project

“The important thing is not being afraid to take a chance. Remember, the greatest failure is to not try” Debbie Fields – Mrs. Fields Cookies

“If you think about things too long and too hard you won’t do them”
Simon Woodruffe – Yo! Sushi

“Never leave that to tomorrow that you can do today”
Benjamin Franklin

“The critical ingredient is getting off your butt and doing something”
Nolan Bushnell – Atari

“Twenty years from now you will be more disappointed by the things that you didn’t do than by the ones you did do”
Mark Twain

“Your time is limited, so don’t waste it living someone else’s life”
Steve Jobs – Apple

“Whatever you are going to do, if you don’t enjoy it, don’t do it”
Philip Green – Arcadia

“Choose a job that you like and you’ll never have to work a day in your life”
Confucius

 

Learning from great Entrepreneurs

Questions for Business Angels

Last night I attended the keynote event of Global Entrepreneurship Week (GEW), yes it’s this week, how could you miss it? Sitting in a packed conference centre of the British Library, I looked around at the alert eager faces of budding Entrepreneurs and thought this has to be the future for Britain.

Tom Bewick, the CEO of Enterprise UK, who have organised GEW put the feeling into words “Make a job, don’t take a job”. This also fits nicely with the Government’s need to increase private sector employment to compensate for the coming job losses in the public sector.

Called “Question time for Entrepreneurs”, it followed the traditional format of a panel of eminent and famous figures asked questions by an audience hanging on their words of wisdom.

On the panel was Deborah Meaden, (Dragon’s Den), Cath Kidston (Cath Kidston Ltd), Brent Hoberman (Last Minute.com & Mydeco), Tom Bewick (Enterprise UK) and chaired by Adam Shaw (BBC’s Working Lunch).

As always, well organised by the British Library’s Business & IP Centre. However I left feeling a bit frustrated that the questions and responses were really just skipping round the edge of what most entrepreneurs wanted to hear about.

Most questions seemed to centre on the way that entrepreneurship could be fostered and at times the answers became a fraction obvious. “Should we encourage youngsters into being entrepreneurs?” Yes was the reply. “Are entrepreneurs born or can they be made?” Deborah Meaden thought they had to be born with the right characteristics. But Cath Kidston believed they could develop the skills.

Interesting intellectual issues, but I felt an opportunity was missed to have the practical questions answered by this famous group that would be on most entrepreneurs minds.

“How can I find funding?” “How do I get visibility for my fledgling company with little money for marketing or PR?” “What should I do to find customers?” These were barely covered.

So what nuggets did I pick out of the event?

  • Everyone agreed that government should assist companies to provide apprenticeships, or internships, which would give youngsters a kick-start in business life. At the moment it is left to individual companies and the quality and even whether the young person gets paid varies a great deal.
  • The best time to start a business is always right now. Do your research and business plan, but don’t wait forever.
  • Get the summary of your business plan succinct and hit the key points quickly. What is your business concept, what differentiates you, why will you make it work, how much do you need and what will you spend it on? The revenue and profit of the business and what does an Investor get out of it?
  • Deborah Meaden gets 200 plans a month (or was it a week) and now has to employ an assistant to sift through them. The Exec Summary is all important; unless that is right the rest of the plan never gets read. No fancy tricks, just a solid, thought out summary that ticks the boxes quickly.
  • Check the interests of who you are sending it to, not all Investors are interested in every market sector. Find out their background, Investors more often put their money into concepts they understand and are comfortable with.
  • If a plan is turned down, by a bank or an Investor, ask why. Learn from that. Also ask if they know of anyone else to approach.
  • Get a partner. This is one of the reasons I set up Company Partners, to help people find a business partner, so I was gratified that this came out. Even the famous entrepreneurs that we all know had partners. It may be that one took the lime-light, but the other was there with complementary skills, to bounce ideas off. It’s lonely by yourself.
  • Get good people around you. Choosing your first employees is difficult, but always get the best you can.
  • Contracts for partners and employees are needed, but it is much more about the relationship. That must be right.
  • Cath Kidston started her business part-time, while working to pay the bills and thought that was acceptable. But Deborah Meaden said: “As an Investor I want to see that the entrepreneur is fully committed” and wouldn’t invest unless the entrepreneur was working full-time on the project.

Finally, all felt that the most important characteristic of an entrepreneur was ambition and that you need to have a passion for what you did. I agree, you can teach many things, but you can’t put a fire in the belly unless it’s already there.

 

Getting sales – the single biggest issue for a small business – Part 2

Businessman waiting for sales

Last week I talked about having a simple sales & marketing plan for your business. It doesn’t have to be particularly fancy, but you should have bounced ideas around with your team (find someone to do this with if a sole trader) and written it down. The act of documenting it is important, clears up muddy thinking and gives you something to work with.

Given your product / service is competitive, you’ve ensured that it has unique qualities and should sell, the next thing is to have potential customers know about it (simple isn’t it). You tell them by using PR (see how to get free PR), marketing and advertising, so that they come to you (called “pull”). Then you also go to them, by direct sales techniques like mailshots or leaflets, telesales, salespersons’ appointments and exhibitions (called “push”).

You may be thinking “well that’s not rocket science” – and it isn’t, but most small businesses don’t lay out a plan for doing these simple activities.

Can all this be done for nothing? Probably not. The term “guerrilla marketing” became popular a few years ago to describe how you can obtain publicity by unconventional means using creativity rather than money. This is now largely taken over by the idea of viral marketing, where a low cost web video for example, can suddenly take off and make a product well known.

However, if you are going to grow a business, you are probably going to need to budget for marketing and sales expenses. It needn’t be a huge amount and the budget can start small and grow in line with increased revenues.

All of your efforts though will be wasted if you are aiming your messages to the wrong people. Not only wasted, but expensive. It is much more efficient to use a focused campaign to an exact audience. The cost of advertising alone will be much less if you are only taking out ads to a small precise group of potential customers for a product that they particularly want.

Some of you will know this as market segmentation and it is important. You need to understand exactly who your customers are and split them down to addressable groups. These groups may have slightly different aspects to them. They may have different ages, backgrounds, location and needs, which will allow you to tailor your marketing exactly to each group. Address first the easiest to win and use the revenues and testimonials from that to market to the next group.

In a blog you can only give so much information and I’ve probably reached that by now. The key message I’m giving is to get a sales and marketing plan laid out (see Essential marketing plan content). The very act of brainstorming the content and putting in place measurable actions will galvanise your sales activity. You’ll feel more enthusiastic and in control than ever before.

If by chance you missed it, here is a link to Part1.

 

Getting sales – the single biggest issue for a small business – Part 1

Waiting for sales

Hands up those who have more sales than they can handle? It does happen, but for most small businesses it is a constant battle to get customers.

You’ve got a good product or service; in fact you are probably very proud of the quality and cost effectiveness of your offering. But sales don’t seem to be coming in very fast. I hear this time and time again.

Occasionally when I look at what the business is selling, there are problems with the product, or poor customer service that over time results in less recommendations and repeat business. But most often it’s because no one knows about the company, or they are just being out sold by the competition.

So then I ask “let’s look at your sales & marketing plan”. There is usually either a silence, or protestations that the owner hasn’t the time to do such a thing. In fact most small businesses don’t have a plan, but instead place an occasional ad and go to the odd exhibition when they think of it.

Yet it needn’t take long to think through what you are going to do during the year to get better known and to achieve more sales.

A short session brainstorming ideas with colleagues / partners can quickly put the bones of a plan together.

Ideally it would initially address your basic identity (brand), what you want to be known for and what is unique about you (called the USP – unique selling proposition in the theory books). You may instinctively know that, but try putting it on paper and think it through.

Then, how are customers going to know about you? PR (public relations) isn’t just for the big boys, but it can be expensive. A typical minimum retainer for a PR firm to get you some visibility is around £1k a month and can be much more.

You have to choose wisely also, making sure that the PR company understands your market. I’ve generally been disappointed when I’ve seen the quality of PR that had done for companies.

As an alternative you can do your own free PR. It can be time consuming and that is a reason for using a carefully selected agency, but if you can’t afford an agency, don’t ignore PR, you can get some publicity very cheaply yourself. For our Company Partners members we’ve got a good resource describing how to do so “How to get free PR”

So what else should you be doing to get sales? I’ll look at that in Part 2.

Oh yes, my bit of sales…. Would a hands-on workshop, plus free business plan software and marketing tips help? Have a look at our next business plan workshop.

 

Where have the business incubators gone?

Business Incubator

At one time business incubators seemed to be mentioned in the business section of every newspaper. Now they have a much lower profile and you might be forgiven for wondering what had became of them.

Since they tend to be focused on high growth, technology or knowledge-based industries, it’s not surprising that during the hay day of the Internet and emerging biotech industries, business incubators had a greater visibility – but they are still out there.

Now I’m a great fan of these centres. In one place you not only get subsidised rent for very well outfitted office space, but also access to real expertise and advice.

Naturally you have to check out just what you are getting. Some, I have to say, are better than others, but the best will provide outstanding support that will increase your chances of rapidly growing and making a success of your new venture.

So how do you know which is the best one and importantly which one is best for you?

First, consider where your business is to be based. Most business incubators (some are called Innovation Centres) have a regional focus. Then look for one that may specialise in your industry, they are more likely to be of specific help when looking for suitable experts or contacts.

Judge how they respond to you when you make contact and then meet up with them and see whether you could work together. How open are the support staff and how accessible is the industry expertise?

When we recently did a survey of business incubators and innovation centres, most were very helpful, but some ignored us completely and one was actually very arrogant. I know which I’d rather work with!

So is a business incubator for everyone? Well, no probably not. If you are opening a restaurant, a shop, or a courier company for instance, then they probably are not suitable. If however you have a knowledge based, high-tech, or creative industries business then they are ideal.

If you’d like to read more about business incubators and innovation centres, or are interested in finding one, have a look at the survey that we recently completed. There is a list of incubators there and we are adding to it all the time – Business Incubator & Innovation Centre review and listing.

 

Business Plans – Top 10 most common mistakes

Business Plan Mistakes

 

As you can imagine, I see a lot of business plans and so does any Investor. While many are good, most are very poor indeed.

Here’s my top ten of most common mistakes:

 

  1. Typos and spellings – it sounds small, but it is a killer. Now days there is just no excuse. My own spelling is atrocious, but I use a spell checker all the time. Use a spell checker, proof-read your work, or get a friend to proof-read it. Sloppiness in producing the plan will indicate sloppiness in your business.
  2. Poor structure – again no excuse. There are templates and examples around, we ourselves run business plan workshops and there’s software that will structure it for you.
  3. Executive Summary – people get confused as to what that is. It’s simply a short, punchy, straight-to-the-point summary of all else in the plan. About 2 pages, that is interesting enough and factual enough to almost stand-alone. After reading it, you should want to reach for the phone to contact the author, or at least feel you want to read more in the main plan. Although at the front, it’s the last section to be done.
  4. No contact details on the cover page. Someone reading the plan shouldn’t have to hunt through it for contact details – put them clearly on the cover.
  5. Over hyped – expressions such as “fantastic”, “unique”, “incredible” are meaningless and overhyping your product or service shows naivety. This is closely coupled to the next point…
  6. Lack of evidence – if you state a market figure, or statistic, try and show where it came from. It gains credibility. Do real market research; don’t just ask friends and family (they don’t count).
  7. No effort made to sell the product/service – the proof of the concept comes when you get sales. There are many, many, good ideas around, but not all of them are commercial. Will customers actually give you their cash for your product? Get out there and make some sales, show it will be bought.
  8. Not using Appendix’s – cluttering up the plan with pages of market statistics is not conducive to having it read. No one will struggle through a badly organised plan, just mention the facts and refer to the full information in the relevant appendix.
  9. No detail to the sales and marketing plan – it’s as though you think that the product/service will sell itself – it won’t. This is often the worse part of the plans we see.
  10. Unbelievable and incomplete financials – We’ve all seen the “hockey-stick” projections, where in the first year the revenues are minimal, but then by golly they shoot up at an incredible rate. Having unrealistic numbers, or incomplete numbers, or contradicting numbers are all plan killers.

You will spend a lot of time writing a plan, whether it is an operational plan to grow your business, or perhaps to get funding, you may as well produce a good professional plan.

There is software that will help with this – see our review of business plan help, or come to our business plan workshop (my bit of marketing!) But why reinvent the wheel, if your business is important spend the few pounds and save time by doing it right first time.