
	subscribe to ceo ezine

ceo magazine >

CEO Online Magazine (Ezine): Entrepreneurship and Small Business

Basic Business Attributes, Do You Have Them? by Old Welsh Guy

How many times have we heard the saying "we learn from our mistakes". I have to agree with this saying, and also that the lessons we learn hardest we learn best! I have learned a lot from my mistakes, sadly (for me) most of them were made before the Internet existed as the fantastic networking tool it is today. Today it is possible to read articles or join a forum and get great advice (and not so great advice) from forums.

While it is great to learn from our mistakes, it is better to learn from the mistakes of others, or by 'standing on the shoulders of giants' as Newton said.

These are my 'business mistakes' I have learned from.

1) Keep your monthly fixed costs as low as possible, and make your number one priority to arrange an equal amount of regular income on a regular monthly basis to cover this amount.

If there was one piece of advice I would give it would be the above, as more businesses go bust due to poor cash flow than anything else!

2) Thoroughly research and work in your mind and bounced off other trusted people, your idea. Market test it as much as possible while keeping the idea as quiet as possible.

3) Get a business plan on paper (not the sort the bank or enterprise agencies use as they are by and large a load of rubbish (although you will need this for the bean counters). Go to (1) above, and set in stone a solid plan for achieving this. After you hit break even continue it on to the next target, and so on.

I just used the magic word there, 'target'. you MUST be sales orientated in business as the owner, if you are not then you are failing in your main duty which is to ensure the continued existence of the business.

4) Do NOT care what others think about you, i.e. what car you drive etc. ALL of this will change if you stick to the plan and keep your focus on short term targets and longer term goals.

I just tripped another magic word in business ' Focus' .

5) Keep your focus, decide what the targets are, work out how to get them, and focus on doing that. If you need £1000 a month to pay the bills, then this is what you MUST do. If you lose focus of your core objective, you are going to lose out big time, and end up failing.

If you doubt the power of focus, then try this test:- Get a friend to hold 3 tennis balls in their hand Get the friend to throw all three at you in one go Try to catch the balls Repeat three times. I bet you will not catch many, if any at all.

Now get them to throw them again, and this time focus on catching one ball. Repeat three times Now you will have caught one ball three times.

It is true in business that you must focus on the core objective, just as with the balls once you catch one, you move onto the next, until you have achieved all your goals, or at least your most important ones.

Of all the skills needed to succeed, I would say focus is up there with the top 3 along with enthusiasm and determination.

About the Author

Old Welsh Guy runs umbrella consultancy Web Design Wales

What is an Investor Ready Business Plan

What is an Investor Ready Business Plan

A Business Plan, as all good entrepreneurs starting out in life should know is the foundation, or rather a springboard, towards the establishment and growth of a new business. A business plan is an essential tool for companies raising capital – and your business plan needs to be Investor Ready.

What is an Investor Ready business plan?

An investor ready business plan is a document that has been professionally prepared to meet the needs of both Venture Capitalists and Angel investors. In your Business Plan, you should be able to see your own project through the investor's eye. Your plan must be able to answer the concerns of an investor.

The investors, both VCs and angels, are risking their hard earned capital by investing in your venture in the hope of long term returns that are worth many times their original investment. An Investor Ready Business Plan demonstrates to investors that you are an expert in your industry and that you have a clear mission. An entrepreneur addresses these needs by prepareing a comprehensive and detailed view of their business objectives and goals. Some important sections that address different concerns of the investors are below:

Management

Investors invest in management - not just ideas. It is very important that you express your knowledge, passion and dedication to your business as best as you can. The competence of your team along with their experience levels and their commitment levels are also factors that investors look into before making their investment decisions.

Customers

It is important to communicate to the investors that you understand the needs and requirements of your customers and to articulate your marketing strategy within your business plan.

Product/Service Description

A complete description of the product or the services offered by you should be outlined in detail. A description of the overall market for your product or service, along with the details of your customer base is essential. The investors need to know the reach and the kind of customers your product / service is catering to.

Marketing Plan

One of the most important sections of your business plan is your marketing plan. This section will outline your sustainable competitive advantage to your investors. In a way assure them why you will succeed where others have failed. This section is where you include a definitive description of your customers, market size, demographics, characteristics, growth prospects, trends and sales potential per product / service category.

Here is where the pricing strategies are outlined and how they can directly influence the growth potential of each product /service. It is also important to include the future growth, market share and trend influences.

Barriers to Entry

Along with giving the details of what your product / service is and who your customers are, you also have to inform your investors how you will you prevent your competitors from taking away your customers. The barriers to entry section outlines your business strategy to keep your competitors at bay and grow in the market. Investors need to feel comfortable about the soundness of your strategy before they invest in your venture.

Howard Schwartz is a business plan consultant and a partner in www.investorbusinessplan.com. He is based in Stanford, Connecticut, and has helped many young entrepreneurs start out on their business careers by working on business plans with them.

This page is sponsored by IIM Executive Education Programs

Sponsorship