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Saturday, April 14, 2007

Of Business STRATEGY & Business Plans

Wow, since having my articles - PRESS Articles - appearing in The STAR Workplace, I have been inundated with calls from first-time entrepreneurs to give advice on developing a business strategy and preparing a business plan.

I touch on the key features of both in the post below - Chapter 2. Knowing WHERE You’re Going - and here are some further links that can be of help:

1. If you're wanting a deeper insight into Strategy Formulation try this link: Build a Strategic Framework: Mission Statement, Vision, Values. I like their simple explanation of a 'strategic framework for significant success' which consists of:

  • a vision for your future,
  • a mission that defines what you are doing,
  • values that shape your actions,
  • strategies that zero in on your key success approaches, and
  • goals and action plans to guide your daily, weekly and monthly actions.

2. Free Business Plans and Marketing Templates

3. Defining SMART Objectives

I write in Ch. 11:


Drucker’s Management By Objectives (MBO) principles also introduced the concept of setting S.M.A.R.T. objectives that I came to apply in business as.

S – Specific: Describe precisely the specific intended result
M – Measurable: Quantify for achievement, accountability and feedback
A – Achievable: Set objectives that inspire performance to new target highs
R – Realistic: Make reasonable and believable new target objectives
T – Time: Set time period target for completion of objective

Often, the old principles that stand the test of time are the most simple and profound of all principles.

Quite honestly, Drucker’s MBO and SMART concepts are still the two most basic tools that I use intuitively to stimulate the TEAM COMMUNICATION process in any business project today, with one exception… it is no longer reserved for 'managers’ alone.

Today, where management structures are thinning out to the barest minimum levels possible, EVERYONE in your business team needs to be driven by some form of business and personal MBO, and everyone needs to have the ability to think SMART.

4. Excellent Business Plan Presentation Sample Layouts

Regards
Trevor Nel - 011 - 705-2790 - www.innercircleforum.com
trevor@innercircleforum.com

Sunday, April 01, 2007

Chapter 1. How COMMITTED Are You?

In Chapter 1, I touch on the importance of YOUR Philosophy towards business by asking these questions:

What is the mental attitude influencing your behaviour in business?

What is your attitude towards serving people?

What is your attitude towards providing exceptional value?

What is your attitude towards delivering on your promises?

What is your attitude towards seeking, learning and applying new concepts?

What is your attitude towards networking with like-minded people?

What is your attitude towards making a difference in life?

Do you believe in 'Service With A Smile' and that the 'Customer is King', or are you a 'take-it-or-leave-it' begrudging service provider who believes that every customer is out to rip you off?

Do you believe that your customer has the right to search for and demand 'What's-In-It-For-Me' (WIIFM) VALUE, or do you cut costs and short-change your customers to boost your margins?

Do you share your profits with your staff?

Do you allow your staff to earn more than you?

Do you allow your staff to build profits for you?

Or do you unintentionally limit the growth of your company by limiting the growth of your people?

Seems crazy to be asking these questions, doesn't it?

But the reality is that many business entrepreneurs that I've seen in business actually don't seem to want to serve their markets. Yet in South Africa for some reason, some of these people still do pretty well. I expect that to be a sign of a market with more demand than supply.

Here are some examples of poor business philosophy that I came across at time of penning this book:

I am currently dealing with a company right now which I estimate is leaving about R400 000 a month on the table in just one small project, and whose management and staff are constantly undermining each other in trying to curry favour with 'The Boss' who is cost-centred and not customer-centred.

Consequently, they over-promise and under-deliver of a very poor service, putting a multi-million-Rand-income tender at very high risk of loss.

In my own community of 4000 households, I witness a local shopping centre management team constantly thumbing their nose at local community initiatives driven by a forceful community Residents Association.

The centre management's team are also the property developers and they have a 'take-it-or-leave-it' 'we-do-as-we-want' attitude to any attempt by the Resident's Association to get them to clean up their act.

Consequently the Resident's Association has officially termed this centre a 'blight' on the community.

Now if just 1500 (37.5%) of these 4000 households, all supportive of the Residents Association, withhold just R1000 p.m. of essential purchases from this centre, that's a conservative loss of R1.5 Million per month.

That's R18 Million a year down the tubes!

And the shopping centre developers attitude? - 'We don't really care'!

Yet, their tenants are crying for business.

I call it COMMERCIAL SUICIDE.

Now, I do believe that I can postulate why these developers don't care.

One, there is a demand for retail space by first-time entrepreneurs who are willing to throw their houses and homes as surety to secure over-priced retail space.

Two, the mere fact that the retailer signs sureties to the landlord means that the landlord almost cannot lose... they just attach all fixtures and fitting... sue for the rest... and put a new tenant in to repeat the process.

Oh boy... understanding people's business philosophies can save one a fortune.

Regards
Trevor Nel - 011 - 705-2790 - www.innercircleforum.com
trevor@innercircleforum.com