glasgow entrepreneurs 2010 02 17
DESCRIPTION
Presentation to Glasgow Entrepreneurs, February 2010TRANSCRIPT
t: 0800 055 6343
w: www.aspiremanagement.co.uk
management servicesmanagement servicesCreating Sustainable Success for Business Owners aspireaspire
forfor
GLASGOWGLASGOWentrepreneursentrepreneurs
17 February 201017 February 2010
Gordon JH Mowat Gordon JH Mowat CACA
Using Your “Sat Nav”!Using Your Using Your ““Sat NavSat Nav””!!
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What WeWhat We’’ll Cover:ll Cover:
•• Why do we start up?Why do we start up?
•• Why do we fail?Why do we fail?
•• Some suggestions about what to do about itSome suggestions about what to do about it
– Setting your Direction and Planning
– Marketing
– Team
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Why Do We Start Up?Why Do We Start Up?
•• Had a great idea Had a great idea ……
•• Made Redundant Made Redundant ……
•• Get a rush from achievement/success Get a rush from achievement/success ……
•• Disliked working for a Madman Disliked working for a Madman ……
•• Can do it Better than Boss Can do it Better than Boss ……
•• Tired of someone else living off our hard work Tired of someone else living off our hard work ……
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Why Do We Fail?Why Do We Fail?
•• Money?Money?
•• Poor Product/Service?Poor Product/Service?
•• Poor Team?Poor Team?
•• Poor Service?Poor Service?
•• Competition?Competition?
•• Government?Government?
•• Banks?Banks?
•• Anyone Anyone ElseElse we can try to we can try to BLAME?BLAME?
•• POOR POOR FOCUSFOCUS AND AND SENSE OF DIRECTIONSENSE OF DIRECTION
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Harvard Study Harvard Study ……
•• Conclusions?Conclusions?
– Set Your Business Direction …
– Write it Down!
– Be PASSIONATE about it!
– Stick to it
– Get your team participating
– Negotiate the Obstacles – don’t give up!
– Learn from Mistakes, just don’t repeat them!
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Setting Business Direction 1 Setting Business Direction 1 ……Planning the Work Planning the Work ……
Operating PlanOperating Plan
Annual Annual
BudgetBudget
100 Years
"Guiding Star"
10 Years -
SMART Goals
1 Year -
Quarterly
Reviews
1 Year -
Monthly
Reviews
VISION, & VISION, &
Rules of Rules of
the Gamethe Game
Team Meetings, Staff Team Meetings, Staff
Targets & Personal Targets & Personal
Development, KPIs, Job Development, KPIs, Job
Descriptions, AppraisalsDescriptions, Appraisals
MISSIONMISSION
SUCCESSFUL BUSINESS DIRECTION – YOUR SAT NAVSUCCESSFUL BUSINESS DIRECTION – YOUR SAT NAV
111
222
33
444
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Input fromInput from
Coach, Team,Coach, Team,
Other Advisors,Other Advisors,
Etc.Etc.
Prepare/Prepare/
Review Review
MissionMission PreparePrepare
AnnualAnnual
PlanPlan
Q1Q190 Day90 DayPlanPlan
Q2Q290 Day90 DayPlanPlan
Q3Q390 Day90 DayPlanPlan
Q4Q490 Day90 DayPlanPlan
YourYour
WeeklyWeekly
ActionsActions
YourYour
WeeklyWeekly
ActionsActions
YourYour
WeeklyWeekly
ActionsActions
YourYour
WeeklyWeekly
ActionsActions
Planning ProcessPlanning Process
Setting Business Direction 2 Setting Business Direction 2 ………… then Working the Planthen Working the Plan
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Setting Business Direction Setting Business Direction ……Operating PlanOperating Plan
OPERATING
PLAN
OPERATING OPERATING
PLANPLAN
Review of
Previous Op Plan
Review of Review of
Previous Op PlanPrevious Op Plan
SWOTT
Analysis
SWOTT SWOTT
AnalysisAnalysisMarketing
Plan
Marketing Marketing
PlanPlan
Staff
Plan
Staff Staff
PlanPlan Investment/Resources
Plan
Investment/Resources Investment/Resources
PlanPlan
Cashflow/
Funding
Cashflow/ Cashflow/
FundingFunding
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Setting Business Direction 3 Setting Business Direction 3 ……Our Formula for Our Formula for RESULTSRESULTS
((PP xx EE)) xx TT == RR
PP == PlanningPlanning
EE == ExecutionExecution
TT = Trust= Trust
RR = Results= Results
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Marketing Marketing ––
The EntrepreneursThe Entrepreneurs’’ View ...View ...
Sales and Marketing is an ...Sales and Marketing is an ...
For every For every ££1 spent, more 1 spent, more ££1s 1s shouldshould
come back in ... come back in ...
Why does that seem to work for some Why does that seem to work for some
businesses and not for others ... ?businesses and not for others ... ?
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Because entrepreneurs carry out 2 Because entrepreneurs carry out 2
key things in business, donkey things in business, don’’t we t we …… ??
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Two sides to marketing ...Two sides to marketing ...
•• If you invested If you invested ££3,000 on 3,000 on
advertising and got 10 advertising and got 10
new clients new clients ……
•• You paid You paid ££300 each300 each
•• How can we How can we reducereduce that?that?
•• If your 10 clients spent If your 10 clients spent
££1,000 per year each with 1,000 per year each with
you for 6 years you for 6 years ……
•• ThatThat’’s s ££60,000 to you!60,000 to you!
•• How can we How can we increaseincrease that?that?
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Generate LeadsGenerate Leads
xx
Conversion RateConversion Rate
==
No. of ClientsNo. of Clients
xx
No. of TransactionsNo. of Transactions
xx
Ave. Sales ValueAve. Sales Value
==
Sales IncomeSales Income
xx
Margin Margin
==
PROFITPROFIT
Want More Sales ... ?Want More Sales ... ?
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Marketing Marketing –– Other Points Other Points ……
•• Try out lots of different ideas in a small way Try out lots of different ideas in a small way
•• Measure their effectivenessMeasure their effectiveness
•• Refine/DropRefine/Drop
•• NetWORKNetWORK (not Net(not Net--sit or Netsit or Net--eat!) eat!)
•• Online NetworkingOnline Networking
•• Follow up who you meet with 1Follow up who you meet with 1--22--1s and grow good 1s and grow good
relationships.relationships.
•• Have a Referrals Strategy, and this is NOT trusting in Have a Referrals Strategy, and this is NOT trusting in
hope!hope!
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The Cycle of Business ...The Cycle of Business ...
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Build a Great Team Build a Great Team ……
1.1. Provide Strong Leadership Provide Strong Leadership –– be prepared to make tough be prepared to make tough
decisions quicklydecisions quickly
2.2. Have a clear, passionate Common Goal, or VISIONHave a clear, passionate Common Goal, or VISION
3.3. Set out the Rules of the Game, or CultureSet out the Rules of the Game, or Culture
4.4. Have a clear Action Plan with SMART ObjectivesHave a clear Action Plan with SMART Objectives
5.5. Encourage Decision MakingEncourage Decision Making
6.6. Ensure you get the team involved and participating Ensure you get the team involved and participating ––
““bacon and eggsbacon and eggs””
7.7. Provide good Job DescriptionsProvide good Job Descriptions
8.8. Run regular Appraisals, agree higher Targets for next one Run regular Appraisals, agree higher Targets for next one
and provide support if needed and provide support if needed –– see Samplesee Sample
9.9. Keep training the Team and growing their comfort zonesKeep training the Team and growing their comfort zones
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Some Final Ideas Some Final Ideas ……
•• Surround yourself with people you trust and admire.Surround yourself with people you trust and admire.
•• Ask for advice and help regularly.Ask for advice and help regularly.
•• Read good, relevant books, and put suggestions into Read good, relevant books, and put suggestions into
practice. practice.
•• Attend events such as this one.Attend events such as this one.
•• Review progress regularly, donReview progress regularly, don’’t be distracted by trivia, or t be distracted by trivia, or
diverted by obstacles.diverted by obstacles.
•• Help others. Help others.
•• Have fun, reflect on your journey and relish and celebrate Have fun, reflect on your journey and relish and celebrate
what you are achieving. what you are achieving.
•• Keep well, eat well, keep fit, have good ways to switch off. Keep well, eat well, keep fit, have good ways to switch off.
•• Keep going! Keep going!
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Recap, Questions, Answers Recap, Questions, Answers ……
•• Sat Nav Sat Nav –– Remember to Input your DIRECTIONRemember to Input your DIRECTION
•• Marketing Marketing –– Measure each campaign success!Measure each campaign success!
•• Team Team –– encourage, train and donencourage, train and don’’t get in the wayt get in the way
•• Happy to email slides Happy to email slides –– please give me your business card
•• Seminars Seminars -- if enough of you are interested I’m happy to run 5-6 seminars expanding on these areas at a very minimal investment
•• Website Resource Website Resource -- complimentary downloadscomplimentary downloads at at
www.aspiremanagement.co.uk www.aspiremanagement.co.uk
– Vision Building, by Collins & Porras
– Sample Job Description and Appraisal System
– Cash flow model
– Improve your debt collection