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Posts Tagged ‘Developing’

The 10 Questions You Must Answer In Developing Your Business Strategy  

Article by Duncan Brodie

Many businesses have developed a clear business strategy, yet there are others who have not. Some resist pulling together a business strategy because they think they don’t know how or because they fear that it will restrict them. The good news is that a business strategy can be as simple and flexible as you like, provided you answer the following 10 key questions.

1. Where are you now?

The starting point for any strategy is an assessment of where you are right now in terms of your business. Sometimes called a Position Audit, this question allows you to put a marker in the ground against which you can measure forward progress.

2. What’s your vision?

Once you know where you are at the moment, you need to start to define where you are heading. Your vision is nothing more than a description of what you would like your business to look like 1, 5 or 10 years from now.

3. Who are your customers or clients?

A common message in any marketing guidance that you come across is the importance of identifying a niche that you serve. If you know who your ideal clients and customers are, it becomes much easier to market to them. There is a lot of truth in the statement that it is impossible to market to a client called everyone.

4. What problems or challenges do you address?

Businesses exist to meet a need. That need is usually a challenge or series of challenges. For example it might be making best use of time, implementing major change, recruiting and retaining the best people or improving team performance. The clearer you can be on the challenges or problems you address, the more likely your strategy will be a success.

5. What products or services do you offer?

When you know who your customers or clients are and the challenges that you address, you need to develop products and/or services to address those challenges. The key here is to think creatively on how you can make what you offer appeal to potential customers and clients.

6. Who are your competitors?

I commonly hear people saying that there are too many other businesses doing the same as them. The reality is that every business, no matter what they do has competitors. It is essential that you know who your competitors are. Remember that competitors are those that are likely to be fishing in the same pond as you for clients. The good thing about this is that not everyone in the market will be fishing in the same pond, so make sure you are identifying the real competitors.

7. What makes you stand out from the competition?

Every business has a number of things that make it stand out from the crowd. It might be the years of experience, your own unique way of looking at things, the distinct way in which you package your offerings or unique personal qualities. Make time to pull out 3 things that makes you stand out from the competition.

8. How will you market your products or services?

There are numerous options open to you when it comes to marketing. Using the web, writing, speaking, trade shows and networking are just a few of the options. A useful tip that I got was to have at least 3 channels to market. Remember too that you might have different channels for different products or services.

9. What will stop you from achieving your vision?

Think about the external and internal factors that will get in the way of you achieving your vision. This could be anything from your own limiting beliefs to the impact of a recession on your business.

10. What are your key goals?

The question to answer here is what outcomes will you have achieved and by when. This might be specified in terms of value of sales, number of clients or customers, client satisfaction or employee satisfaction. Remember to be as specific as you can be about what you want and by when you want to have achieved it.

It is easy to believe that developing a business strategy is something that is complex and complicated but in truth by answering these 10 questions you can pull together an effective business strategy in just a few hours.

About the Author

Duncan Brodie of Goals and Achievements Ltd (G&A)works with professionals and progressive organisations who want to develop their leadership capability in order to achieve more success. Sign up today for his free e-course and monthly newsletter at http://www.goalsandachievements.co.uk

Bookkeeping Business Tips for Developing Reliable Financial Projections  

Article by Linda Hunt

Financial forecasting reminds me of the weather – you make your forecast at a moment in time based upon the information currently available. You draw a conclusion and state your financial forecast. But then, the information changes, now it’s raining, and you’re caught without your umbrella!Financial forecasting, unlike the weather, isn’t a science but it’s not pure guess work either. It is a combination of:* knowing your business;* understanding your marketplace;* setting goals; and* using common sense. As a business coach, I know that every small business needs to make reliable financial projections at one time or another. Forecasting is critical during the following stages of a company’s life span:* when seeking financing * gauging the profitability of a new product or service * determining the impact of staff expansion or cutback * assessing other business decisions The many components of forecasting boil down to the following five bookkeeping business tips that for years I’ve shared with business coaching clients:Bookkeeping Business Tip #1: Review Actual Year-To-Date Results

Start by looking at where you’ve been. If you use an accounting program like QuickBooks you can print out a Profit & Loss statement showing year-to-date results. Check the statement for all financial transactions that occurred up to the date of the report. Reconcile the report to your bank statements. (If you don’t use an accounting program or bookkeeping service, then take the difference of the total year-to-date cash receipts and total expenditures. This should equal your profit or loss.) Examine each line item to make sure that it makes sense – is your year-to-date revenue figure where you anticipated, or has it fallen short? Are expenses higher than expected?

Bookkeeping Business Tip #2: Establish Goals and Incorporate into Your Forecast

What do you wish to accomplish by year’s end? Do you want to introduce a new product or service, increase revenue on existing products or services, decrease spending, hire a new employee, outsource a bookkeeping service, or launch a marketing campaign that will position the company for the beginning of next year?

Write out your objectives and then choose three to five which are the most important to accomplish by the end of the year. Determine the needed steps to achieve the objectives. Which Profit & Loss line items will be impacted? Adjust your forecast accordingly. For example, your goal may be to increase revenue 10% by year’s end or to launch a marketing campaign now so its benefits will be felt in the first quarter of 2009.

Bookkeeping Business Tip #3: Forecast Variable CostsVariable costs are costs that change in step with revenue change. For example, you are selling more widgets; therefore, your labor costs and materials costs will increase in relation to the revenue increase.

Using the concept that Forecast = Projections + Predictions, combined with the knowledge that variable costs change in step with revenues, forecast each month’s variable costs. Forecast each line item separately. Look for opportunities to reduce costs, and be aware of likely future influences on each cost.

Bookkeeping Business Tip #4: Forecast Fixed Expenses

Fixed costs are relatively stable costs that recur every month. Examples of fixed costs are rent, telephone and bookkeeping service fees. Forecast the month’s fixed expenses by using the same concept used to forecast variable costs (Forecast = Projections + Predictions) and the knowledge that fixed expenses tend to be relatively stable and do not change in step with revenues. Again, forecast each line item separately, looking for opportunities to reduce costs, while keeping in mind any likely future influences.

Bookkeeping Business Tip #5: Forecast Net Profit

The final step is to evaluate your forecast for net profit. Is the profit forecast is reasonable and acceptable? If not, re-evaluate each line item including revenues and make appropriate adjustments. Also, anticipate non-operating income and expense items, and include them in your forecast.

Your financial projections may not be perfect at first, but we didn’t learn to walk without falling down. As a business coach I’ve seen others get a few bumps along the way. But I guarantee that if you follow these bookkeeping business tips, set your financial projections on paper and revisit them frequently, you will achieve your goals faster.

About the Author

Linda Hunt is the co-founder of The Bookkeeper’s Referral Network Inc., the place where business meets great bookkeepers. To get your copy of a free special report, The 9 Disastrous Mistakes Most Freelance Bookkeeper’s Make in Business (and How You Can Avoid Them!), visit http://www.bkpr-network.com and <http://www.bkpr-network.com/>.

A business strategy is one section of a business plan, and it identifies where a company intends to go, who their potential customers are and how these customers will be approached. Make a strategy for the future plans of a company with help from an experienced businessman in this free video on planning a business. Expert: John Niemira Bio: John Niemira is a business professional who has been in the business industry for many years. Filmmaker: Michael Burton

Financial forecasting reminds me of the weather – you make your forecast at a moment in time based upon the information currently available. You draw a conclusion and state your financial forecast.  But then, the information changes, now it’s raining, and you’re caught without your umbrella!

Financial forecasting, unlike the weather, isn’t a science but it’s not pure guess work either.  It is a combination of:

knowing your business;

understanding your marketplace;

setting goals; and

using common sense.

As a business coach, I know that every small business needs to make reliable financial projections at one time or another.  Forecasting is critical during the following stages of a company’s life span:
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