Style Business

Archive for July, 2009

I. What is a Strategic Plan?

Business Owners or Managers are often so preoccupied with day to day immediate issues in their business they lose sight of their ultimate objectives. Taking a step back and reviewing their business is essential. There is no guarantee of success, but without it a business is much more likely to fail. A strategic plan is NOT a Business Plan. It is likely to be a very short or short document whereas a Business Plan is very detailed and much more substantial. A sound plan will:

• Serve as a framework for making decisions or for securing future support or approval as required

• Provide a basis for more detailed planning

• Explain the business to others in order to inform, involve and motivate

• Assist in performance monitoring or benchmarking as required

• Stimulate change, and become a foundation for the next plan

II. Why make a Strategic Plan?

Making a Strategic Plan is an exciting exercise, and gets the adrenaline going! It should be visionary, conceptual and directional, and because it must be realistic and attainable too, it will provide owners and/or managers to think strategically and act operationally. Being able to think strategically means that, when you make decisions and choices, you settle for the best strategic option. Operational issues are all taken care of, but without having to think too hard about it, you ensure that your decisions and choices are supportive of your long term strategic objectives.

Setting goals and focusing on them causes these goals to become subconscious drivers that guide your actions. Doing this in terms of a structured strategic planning system, means that you will tend to steer your business in the right direction all the time, and you will do this without consciously thinking about it.

Starting with developing a Vision and working from there means that the Vision becomes firmly entrenched in how you think about your business, and becomes a subconscious part of your thinking process.

The effect can be really powerful and rewarding. By putting the necessary effort into creating a comprehensive Vision and building on it, you become a strategic thinker. Taking the right strategic action becomes easy.

III. What is involved?

A critical review of past performance by Owners and/or Managers of a business, and the preparation of even a short Strategic Plan beyond the normal annual budgetary horizon requires the type of thinking described above. Some essential points which should be observed during the review and planning process include the following:

• Consider the medium term of 3-5 years

• It must be undertaken by Owners/Directors

• It must focus on matters of strategic importance

• It must take place outside normal day to day work

• It must be realistic, detached and critical

• It must be written down

• It must be reviewed periodically

IV. What does it contain?

In developing a Strategic Plan, it is necessary to clearly identify the current status of the existing business, its objectives and strategies. Correctly defined, these can be used as the basis for a critical examination to probe existing or perceived Strengths, Weaknesses, Opportunities and Threats. Also forming part of a Strategic Plan are the following requirements:

• Vision

• Mission

• Strategic themes

• Strategic Objectives

• Measures or Key Performance Indicators

• Targets or Goals

• Initiatives or Action Plans

V. Summary

The preparation of a plan is a multi step process, but is not difficult to carry out, and can be done reasonably quickly. For business Owners who want to drive their businesses to the next level, a plan for the future is essential.

It wasn’t long after the birth of affiliate marketing that cashback sites started to appear. These are sites which offer consumers a refund on what they purchase, through the use of affiliate schemes. For example, if a merchant were to run an affiliate program, offering affiliates a 10% commission on all sales, a cashback site could offer consumers anywhere up to 10% off their order value. From the merchant’s point of view, it is still worth paying a commission in the form of a refund to the buyer, if it results in a new sale. At first glance, this appears to be a system which benefits everybody. Merchants get extra sales, affiliate networks get extra commissions, and consumers get a better deal. The person who loses out is the affiliate who might have already referred the customer.

If a review site funded by affiliate revenue advertises by PPC to get traffic, then they would not be out of line to expect that if any of their visitors went on to make a purchase based on the reviews, they should receive a commission. However, if at the point the visitor was about to make a purchase, they went through a cashback site; this would overwrite the most recent cookie set. This means that the affiliate has gone to all of the work of getting the customer to the point of sale, for the cashback site to take the credit. There is evidence to suggest that people just use cashback sites at the point of purchase. The EPC for some merchants is up to 5 times higher for incentivized traffic, suggesting that they only go through the cashback site when they are intending to make a purchase. Is it right that affiliates are being denied commissions because of cashback being a more attractive incentive to purchase?

Read more at http://www.thinkaffiliate.co.uk

Viral email marketing is one of the most popular means of promoting your products or services. You can easily contact several thousands – or even millions – of individuals at one time and have them spreading your email message, promoting your business and generating income for you.

It is important that you understand the mechanics of viral email marketing to take advantage of its full potentials, and get the cash your business needs at a fraction of the usual time and effort.

What is Viral Email Marketing?

Viral marketing is one of the most efficient marketing tool innovated in the online industry. The term was coined after the idea of an information spreading quickly and effectively. In offline marketing industry, viral marketing is what is often referred to as “word-of-mouth” marketing strategy, which is considered by some marketing experts as the most effective type of marketing.

Viral email marketing is a branch of a variety of viral marketing tools and techniques that internet marketers can use these days. Although the benefits are quite appealing, there are certain techniques that online marketers need to follow closely in order to reap those benefits.

Since most people these days utilize their email to communicate on a daily basis, it is where viral email marketing is targeted. You can therefore appeal to every individual in your target market specifically, which when done correctly, have higher potential of generating sales.

If you were to recall the history of email marketing campaigns, it all started with Hotmail. They offered clients who availed of their service a free email account. For every online businessmen though, you can offer a variety of techniques to your prospects through their email that will enable you to utilize the power of this technology to spread the word about your marketing campaign.

Viral Email Marketing Techniques

The techniques you use in your viral email marketing campaign depends largely on your business goals. In most cases, the goals of an online marketer when sending out emails to the people in their mailing list is to inform them about a particular product or information. A subset to this goal is to compel them to forward the message or email to their friends in their email list, thus spreading the word about your line of products.

Why would your prospects forward the email they receive? The key here is to send them emails that are of some level of worth. If not, then it would probably take them a shorter amount of time to delete the email message than they would reading what the content of the mail is.

One effective way to increase readership is to carefully consider the information value or entertainment value you input in the content of your email message. Being informative does not necessarily mean your email message has to be dull. Learn how to infuse some creativity into it. With proper use of useful or amusing content, you will most likely compel people in your mailing list to read your emails and forward them to people who might benefit from them.

Prior to this stage though, you need to have had proper methods of building a large opt-in list. The methods you use must also be targeted, such that the people in your mailing list are most likely to respond to your viral email marketing campaign.

Subject Line of a Viral Email

Although this comes prior to the actual opening of your emails, this is incredibly important. The subject line is the first thing that a person sees whenever they open their inbox. There are only two options for them: to click on the mail you sent or not. Hence, it is important that you convince them to do the former. One technique is to keep your subject line interesting or provoke curiosity.

Using the “Open Me” or “Read Me” approach is fast becoming ineffective. Plus, it is a very lazy approach at convincing people to actually read the mail. Try to keep your subject line short but snappy for higher effectiveness.

Content of a Viral Email

You have three options in terms of how you build the content for your viral email marketing: sales letter, newsletter, or review format. Regardless of your choice of content format, you need to keep it brief yet ample in scope. Remember, people browsing the internet have short amount of patience and you need to feed them the information they need within the shortest time possible.

If you find that the message is too long but all parts are too relevant to omit, consider sending them in parts. This is also an effective way to rouse the reader’s interest.

Another way to convince them to click on the links you provided is by offering them a valuable and tangible object. It does not need to be a lucrative object but must be something of value or usefulness to them. This helps further an effective viral email marketing that produces real results.

Timing or Frequency in Sending Out Viral Emails

Here is another important component for an effective viral email marketing campaign. If you have set the schedule for the broadcast of your viral email messages using an autoresponder, make sure to limit the amount of emails you send the people in your mailing list.

Three times a week should be substantial to advance your viral email marketing, but there are always exceptions to the rule. The key is to be sensitive to the needs and desires of your audience, and to offer them the right amount of information at the right moments.

Overdoing it can result to annoyance on the part of your readers and cause them to opt-out of their subscription. Or worse, they could spread the word about their dissatisfaction, which could negatively affect your reputation.

After all, an effective viral email marketing campaign is built more around the powerful messages you send them, rather than the frequency of emails on their inbox.

Imagine opening 20 new business locations without having to foot the bill for real estate, equipment and development costs or taking on any of the risk. Even more, imagine finding managers to run all those locations, who are just as committed to growing the company as you, and you don’t have to pay them a dime. Finally, imagine that these managers will hire, fire and manage all employees as well as foot the bill for all operating costs and expenses. Sound far-fetched?

Not if you’re planning to enter the franchise industry, one of the fastest ways to grow a small business without breaking the bank. For many companies, franchising a business (or licensing) is a sensible way to achieve rapid, profitable growth without giving up any control or ownership. Going from a single location to a dozen in a couple years, or a hundred in ten years is possible and well-documented because franchise owner-investors put up all investment capital, shoulder all risk and assume all day-to-day operating responsibilities.

It’s expansion, using OPM – Other People’s Money. Also, the franchise company gets paid handsomely for teaching others the secrets of how to operate its business. First, there’s the up-front “membership” or franchise fee of $20,000 to $50,000 paid for using the brand name and operating methods. In addition, there are continuing royalties of 5% to 10% of gross sales for ongoing advice and consultation. In essence, a franchise development program allows a company to get out of the trenches and become a highly-paid general overseeing its soldiers. Long-term options are also attractive. Build an empire and relax, or let the franchise company be acquired by an increasing number of large companies that look for small, but growing franchise companies. According to the International Franchise Association, 900 new companies have franchised in the last three years.

ENTERING A NEW BUSINESS
A company planning to franchise must realize it is entering a new business, offering an entirely different service (training & support) to entirely new customers (business owner-operators). This new business requires different skills, abilities and expertise. In the new business of franchising, it is critical to develop effective evaluation, documentation, mentoring, training and consulting skills. Since these new skills are rarely present within existing personnel, an outside franchise expert is needed to train existing personnel and plan the transition. The first step involves determining whether or not a business can franchise, and if so, what needs to be developed. Next, strategic franchise planning is necessary to create a “blueprint” for successful expansion efforts. Experience shows that, just like a building, the foundation developed at the beginning will create lasting consequences affecting the relative success (or failure) of the entire venture. Legal (franchise disclosure document, franchise agreements) and operational documents (franchise operations manual, franchise training program) are prepared and drafted and finally a franchise registration process is required in some 14 states, depending on which state(s) the company sells franchises. These phases are discussed below.

THE FRANCHISE FEASIBILITY PHASE
An indispensable step before any franchise development program gets underway is an analysis of the concept and business model. Has the concept been sufficiently proven in the marketplace? How profitable are existing prototypes or company-owned outlets? Franchising will not solve existing problems, it will only intensify them – and usually at a serious cost to franchise investors. Franchising should not be viewed as a method to raise capital, expand a business that has existing problems, or a way to get rich quickly. There must be sufficient profitability in the business model so that royalty and other payments can be made and leave the franchise investor with a sufficient profit. With a franchise feasibility analysis, a determination can be made about:

(a) whether franchising or licensing expansion ideas should be pursued, postponed or abandoned; and
(b) assuming a positive result in (a), what needs to be fine-tuned or developed from scratch for the franchise program.

Besides determining if and when the business can franchise, the analysis should also include providing guidance and direction so as much of the groundwork as possible can be done by existing personnel. This has proven to be a very effective approach and significantly reduces franchise development costs. If the feasibility analysis is positive, the other phases discussed below follow. My twenty-eight years of experience in the franchise industry lets me share a valuable insight about franchise feasibility studies. Too many companies leap into franchising without doing a feasibility study, or if one is done it is performed by a franchise consultant or group that tells everyone good news – they’re all “franchise-able.” The vast majority of franchise feasibility studies I’ve done either identify areas that need attention before franchising makes any sense or tell the client to forget about it and pursue other options.

THE FRANCHISE STRATEGIC PLANNING PHASE
A successful franchise development program begins with a solid plan – a foundation for franchising. The long-term goal is to establish balanced, integrated, successful business relationships with qualified individuals who support the company’s goals and image. Creating an enduring relationship requires a comprehensive strategy that addresses all aspects of the franchise endeavor.

The starting point is a detailed analysis that covers:

(1) identifying profile characteristics of who will be the best franchise owners for the particular business;

(2) competitive positioning to make the franchise stand out from the other 3,000+ franchise companies;

(3) geographic scope – where and when will franchises be sold;

(4) analysis of the company’s organizational strengths and weaknesses relative to franchising;

(5) identifying the appropriate franchise organizational structure as well as staffing requirements and responsibilities; and

(6) structuring the franchise relationship for a balanced, win-win scenario.

What should emerge from this detailed analysis is a specific strategic plan and framework for guiding virtually all franchise efforts. Despite the long-term importance of the franchise planning step, too many emerging franchise companies enter franchising with no plan or planning – other than “let’s try and sell a lot of franchises.” They rush through (or neglect entirely) the strategic planning process, thereby creating future franchise litigation land mines that are ticking franchise lawsuits waiting to happen.

Often, this is because they only utilize the services of a franchise consulting firm or franchise attorney, where little or no attention is paid to critical strategic planning, operational and organizational issues. Normally, these firms draft “boilerplate” franchise disclosure documents, franchise agreements and franchise operations manuals based on a questionnaire completed by their client, who is presumed to have made all strategic decisions. The franchise documents are presented, along with an invoice and a handshake – hardly the ingredients for success in the new business of franchising.

THE FRANCHISE DOCUMENTATION PHASE
If the company has made doing a good job at the planning stage the number one priority, franchise documentation goals will be apparent. Proprietary and intellectual property assets (like operating techniques, customer information, recipes, formulas and methods) need to be identified and protected. A trade secret protection program is developed and implemented. The name, logo and tag lines should have been previously registered as trademarks or service marks.

franchise operations manuals
Franchise operations manuals and training programs are developed, often from scratch, to impart business operating skills to the franchise owner as well as ensure uniformity of products and services. The franchise operations manual and training program curriculum must be drafted with a particular focus. Certain topics, chapters and policies found in manuals for a company-owned chain, for example, are entirely inappropriate in a franchise environment, creating significant liability (lawsuit) issues for the franchise division.

I routinely find franchise operations manuals drafted by franchise consultants or do-it-yourself manual kitscontaining inappropriate chapters or topics. Not knowing where the bullets come from in franchise litigation, they proceed blindly ahead using “boilerplate” manuals where most (but not all)

We Buy Your Business

For some, planning a business exit can be a predictable, methodical process. We know the competition; we understand market demands, know when we want to sell and might even know the actual date. But for far too many business owners, the business exit comes as a harsh reality and often unplanned event.

Protecting your business and assets against the dreaded six D’s of an unplanned business exit can give whole new meaning to the term “Disaster Management”. While every business may experience unexpected pitfalls, careful planning to ensure risk exposure is minimized can assist in keeping you in the driver’s seat when it comes to managing your company. Familiarize yourself with the six D’s of an unplanned business exit: debt, death, disability, divorce, departure and disaster. Know the enemy and look to address all six D’s in your operating and buy / sell agreements.

The Six D’s of an Unplanned Business Exit

Debt:No one goes into business and plans on it not succeeding, but 40,000 businesses fail every month in the United States. When debt exceeds revenue, it is critical to exit timely in order to minimize loses. Understanding limitations and protecting critical assets are key to successful divesture.

Death:Many businesses are solely dependant on their owner’s abilities, relationships, and passion to drive success, and when there is a death of an owner or partner of a business, it can have significant impact to a business almost immediately. While no one wants to consider their own demise, the strength and longevity of a business relies on being able to plan for such a critical loss even if it means downsizing or reorganization. The survival of a business in relation to key individuals needs to be evaluated and exit strategies planned accordingly.

Disability:Unbelievably, death is not as likely to end the business as a disability. A disability to a business partner can put a significant drain on cash flow, daily workloads, and excess down time, all of which can be devastating. Insurance and financial planning towards alleviating such an impact needs to be carefully evaluated especially when dealing with small business start ups where funding and resources are limited.

Divorce:No one wants to plan for a business or personal divorce, yet while Pre-nuptial agreements may be gaining in popularity many people never look to manage such impact to their businesses. What happens when the partners cannot get along? Or worse, you inherit another partner due to a personal divorce settlement? Exiting the business might be the only alternative you are provided.

Departure:It does not sound as bad as death, but it can wreak the same results. A partner, key employees, or other resources decide to go to the competition, retire, burn out, or win the lotto. When they leave, how does this impact your business going forward?

Disaster:If the five D’s above where not enough to impact your business, there are no limit to the other disasters that may occur that were never planned on: robbery, sickness, employee theft, employee turnover, natural devastating events, etc. In today’s post Katrina, 911 world the impact of the chaos theory is enough to keep even the best business minds awake at night. Plan for the worst; strive for the best and know when to get out if need be.

For the typical business owner, each one of the six D’s has special demands on the family, income, taxes, and control of assets. An agreement, commonly called buy/sell agreements, can be used to plan for the impact associated with the dreaded six D’s. A successful sustaining business exists as a separate entity from personal concerns and risk can be reduced by developing mutually fair and equitable agreements prior to these events occurring.

Business is an evolution and travels a diverse path. While some may look on an unplanned exit as a failure others may see an opportunity for growth and freedom.

www.WeBuyYourBusiness.com