““The Fundamental The Fundamental Approach for Small Approach for Small Business Growth!”Business Growth!”

presented bypresented by

John D. Lloyd - Founder / Principal John D. Lloyd - Founder / Principal

OnPoint CoachingOnPoint Coaching

OverviewOverview Marketing Plan DevelopmentMarketing Plan Development Client Relationship Management Client Relationship Management New Business DevelopmentNew Business Development Strategic Planning Strategic Planning Project Planning Project Planning Sustainability Sustainability Financial Forecasting: (Financial Forecasting: (Cash Flow Cash Flow

Analysis / ROIAnalysis / ROI))

A A marketing planmarketing plan is a written document that is a written document that details the necessary actions to achieve one or details the necessary actions to achieve one or more marketing objectives and it can be for a more marketing objectives and it can be for a product or a product or a serviceservice. The foundation of a well-. The foundation of a well-written marketing plan lies within the written marketing plan lies within the enforcement of 5 simple factors: enforcement of 5 simple factors:

ClearClear - The plan should be an unambiguous - The plan should be an unambiguous outline of outline of exactlyexactly what is to be done.  what is to be done. 

QuantifiableQuantifiable - Each activity should be - Each activity should be quantifiedquantified, therefore performance can be , therefore performance can be monitored.  monitored. 

FocusedFocused - Apply the - Apply the 80:20 rule80:20 rule! ! RealisticRealistic - Activities and/or goals should be - Activities and/or goals should be

achievable. achievable.  AgreedAgreed – Staff and/or Departments who are to – Staff and/or Departments who are to

implement them should be implement them should be committedcommitted to them, to them, and agree that they are achievable. and agree that they are achievable.

A few A few remindersreminders in in marketing plan marketing plan developmentdevelopment::

Portfolio planning -Portfolio planning - Coordinated Coordinated planning for the individual products planning for the individual products and/or services contributes towards a and/or services contributes towards a balanced marketing plan portfolio. balanced marketing plan portfolio.

80:20 rule - 80:20 rule - The marketing plan needs The marketing plan needs to concentrate on the 20 percent of to concentrate on the 20 percent of products and/or services, which will products and/or services, which will account for 80 percent of the profit.  account for 80 percent of the profit. 

7 P's7 P's - Product, Place, Price, Promotion, - Product, Place, Price, Promotion, Physical Environment, People and Physical Environment, People and Process.Process.

Monitoring the performance on the execution of a Monitoring the performance on the execution of a marketing plan, against predetermined targets, represents marketing plan, against predetermined targets, represents an important aspect of the planning process. If feasible, an important aspect of the planning process. If feasible, OPC recommends a quarterly rolling review – (planning OPC recommends a quarterly rolling review – (planning one full year ahead each new quarter) if time and planning one full year ahead each new quarter) if time and planning resources are available.resources are available.

Quantifiable elements of a marketing plan:Quantifiable elements of a marketing plan: Sales analysis - Sales analysis - Most organizations track their Most organizations track their sales sales

resultsresults or in non-profit organizations,…the number of or in non-profit organizations,…the number of clients. clients.

Market share analysisMarket share analysis - Is an important metric! Though - Is an important metric! Though sales might grow in an expanding market, an sales might grow in an expanding market, an organization’s share of the market can decrease. Factors organization’s share of the market can decrease. Factors to keep in mind when collecting data on market share to keep in mind when collecting data on market share analysis: analysis: overall market shareoverall market share, , segment sharesegment share – ( – (that that in the specific targeted segmentin the specific targeted segment) and ) and relative sharerelative share - ( - (in in relation to the market leadersrelation to the market leaders). ).

Expense analysisExpense analysis - The key ratio is typically the - The key ratio is typically the marketing expense to sales ratiomarketing expense to sales ratio..

Financial analysisFinancial analysis - The "bottom line" of marketing - The "bottom line" of marketing activities be the net profit, except for non-profit activities be the net profit, except for non-profit organizations, where the comparable emphasis may be on organizations, where the comparable emphasis may be on remaining within budget. remaining within budget.

Client Relationship ManagementClient Relationship Management commonly known as commonly known as CRMCRM is not just a is not just a technology but rather a comprehensive, technology but rather a comprehensive, customer-centric approachcustomer-centric approach to an to an organization's philosophy of dealing with its organization's philosophy of dealing with its clients. clients.

CRM is a combination of policies, processes, CRM is a combination of policies, processes,

and strategies implemented by an and strategies implemented by an organization to organization to enhanceenhance its its customer customer interactionsinteractions and provide a means to and provide a means to track track customer informationcustomer information. It involves the use of . It involves the use of technology in attracting prospective clients, technology in attracting prospective clients, while strengthening bonds with existing ones. while strengthening bonds with existing ones.

CRM is a combination of a CRM is a combination of a qualitative qualitative

approachapproach:: ( (human interactionhuman interaction) and a ) and a quantitative approachquantitative approach:: ( (software applicationsoftware application), ), and plays an intricate role in and plays an intricate role in marketing plan marketing plan developmentdevelopment..

A look at the qualitative approach: A look at the qualitative approach:

80:20 rule80:20 rule – The – The top 20%top 20% of an organization’s of an organization’s clients should have a customized CRM clients should have a customized CRM approach. approach.

Relationship strategyRelationship strategy – Determine what – Determine what client opportunities you should pursue.client opportunities you should pursue.

Client leadershipClient leadership – Become a trusted advisor – Become a trusted advisor to the client and a recognized thought leader to the client and a recognized thought leader within the client organization. within the client organization.

Ambassadorship Ambassadorship – – Represent the entire firm's Represent the entire firm's capabilities, not just your area of expertise. capabilities, not just your area of expertise.

Quality AssuranceQuality Assurance – – Ensure high quality work Ensure high quality work at all times! Managing: pricing, contracting, at all times! Managing: pricing, contracting, negotiating and ensuring firm profit standards negotiating and ensuring firm profit standards are being met. are being met.

A look at the quantitative approach – (the use of CRM A look at the quantitative approach – (the use of CRM software applications):software applications):

Operational CRMOperational CRM: Operational CRM : Operational CRM processesprocesses

customer data for a variety of purposes – (eg. customer data for a variety of purposes – (eg. managing campaigns, enterprise marketing managing campaigns, enterprise marketing automation, sales force automation, sales management automation, sales force automation, sales management systemsystem).).

Analytical CRMAnalytical CRM: Analytical CRM : Analytical CRM analyzesanalyzes customer customer data for a variety of purposes – (eg. data for a variety of purposes – (eg. designing and designing and executing campaignsexecuting campaigns, , analyzing customer behavior and analyzing customer behavior and creating a management information system)creating a management information system). .

Sales Intelligence CRMSales Intelligence CRM: Sales Intelligence CRM is a : Sales Intelligence CRM is a direct sales tooldirect sales tool – (eg. – (eg. cross-selling / up-selling, sales cross-selling / up-selling, sales performance, customer trends and customer marginsperformance, customer trends and customer margins).).

Social CRMSocial CRM: The integration of social media platforms : The integration of social media platforms – (eg. – (eg. LinkedIn, Twitter, Facebook, Blogs, etcLinkedIn, Twitter, Facebook, Blogs, etc.) into the .) into the CRM system application. *CRM system application. *NoteNote: OPC recommends : OPC recommends “Social CRM” should be monitored for real-time “Social CRM” should be monitored for real-time marketplace feedback and trends.marketplace feedback and trends.

The The objectivesobjectives of a of a CRMCRM strategy strategy must consider a company’s must consider a company’s missionmission, , visionvision and its and its valuesvalues. . Information gained through CRM Information gained through CRM initiatives can support the initiatives can support the development of the development of the marketing planmarketing plan strategy and ultimately increase strategy and ultimately increase the organization's knowledge in the organization's knowledge in areas such as: areas such as: (customer (customer segmenting, customer retention segmenting, customer retention and improve product/service and improve product/service offerings)offerings)..

New Business DevelopmentNew Business Development is about is about expansionexpansion not diversification! It’s about taking your business not diversification! It’s about taking your business model and tapping into model and tapping into new marketsnew markets to create to create new new revenue streamsrevenue streams. New Business Development is . New Business Development is anchored on market research and then anchored on market research and then transitionstransitions into market penetration strategies. into market penetration strategies. What is the What is the roadmap to capturing this market?roadmap to capturing this market? How much of How much of a percentage of the market can be tapped? a percentage of the market can be tapped? Competition?Competition? Feasibility? NBD is both operational Feasibility? NBD is both operational and sales focused, it doesn’t require but wouldn’t and sales focused, it doesn’t require but wouldn’t hurt…a business plan. hurt…a business plan.

What is What is NBDNBD about? about?

GrowthGrowth New VerticalsNew Verticals New Revenue Streams New Revenue Streams Innovation and CreativityInnovation and Creativity Leveraging Technology Leveraging Technology Collaborative PartnershipsCollaborative Partnerships Go Global Go Global

How does How does NBDNBD get done? get done?

Assessment of marketing opportunities and Assessment of marketing opportunities and target markets = (target markets = (MPDMPD).).

Intelligence gathering on customers and Intelligence gathering on customers and competitors = (competitors = (CRMCRM). ).

Generating leads for potential sales = (Generating leads for potential sales = (CRMCRM). ). Proposal and presentation management = Proposal and presentation management =

((CRMCRM). ). Business model design = (Business model design = (BPBP).). New Business DevelopmentNew Business Development is a key factor is a key factor

in the equation of in the equation of the fundamental approach the fundamental approach on how to grow your businesson how to grow your business. Why?...because . Why?...because it’s summarizes the grow your business part, it’s summarizes the grow your business part, the fundamental approach part is a process the fundamental approach part is a process and involves other variables – and involves other variables – (eg. MPD and (eg. MPD and CRM).CRM).

Strategic planningStrategic planning is an organization's is an organization's process of defining its strategy or direction process of defining its strategy or direction and making decisions on allocating its and making decisions on allocating its resources to pursue this strategy, including resources to pursue this strategy, including its its capitalcapital and and peoplepeople. . Strategic planningStrategic planning should start with objectives and end with a should start with objectives and end with a roadmap of ways to achieve those roadmap of ways to achieve those objectives. objectives.

Various “text book” business analysis Various “text book” business analysis techniques include:techniques include:

SWOT analysis (Strengths, Weaknesses, SWOT analysis (Strengths, Weaknesses, Opportunities and Threats ). Opportunities and Threats ).

PEST analysis (Political, Economic, Social PEST analysis (Political, Economic, Social and Technological). and Technological).

STEER analysis (Socio-cultural, STEER analysis (Socio-cultural, Technological, Economic, Ecological and Technological, Economic, Ecological and Regulatory).Regulatory).

Strategic planningStrategic planning is a is a tooltool for for effectively mapping the direction of an effectively mapping the direction of an organization and is organization and is fundamental to the fundamental to the growth of a businessgrowth of a business because a because a business that fails to plan is a business business that fails to plan is a business that plans to fail!that plans to fail! That said, strategic That said, strategic planning itself cannot foretell exactly planning itself cannot foretell exactly how the market will evolve and what how the market will evolve and what issues will surface, therefore issues will surface, therefore semi-semi-annual and/or annual reviewannual and/or annual review of the of the planning process coupled with the planning process coupled with the appropriate tweaking to the plan is appropriate tweaking to the plan is instrumental for an organization to instrumental for an organization to survive the turbulent business climate.survive the turbulent business climate.

Are you a visual person?Are you a visual person? Try this approach: Try this approach: Draw-See-Draw-See-ThinkThink

DrawDraw - what is the ideal image or the desired end state? - what is the ideal image or the desired end state? SeeSee - what is today's situation? What is the gap from - what is today's situation? What is the gap from

ideal and why? ideal and why? ThinkThink - what specific actions must be taken to close the - what specific actions must be taken to close the

gap between today's situation and the ideal state? gap between today's situation and the ideal state? PlanPlan - what resources are required to execute the - what resources are required to execute the

activities? activities? A few A few remindersreminders to keep in mind when developing the to keep in mind when developing the

strategic plan of an organization:strategic plan of an organization:

Vision statementVision statement: Defines the : Defines the desired or intended desired or intended future statefuture state of an organization. of an organization.

Mission statementMission statement: Defines the : Defines the fundamental purposefundamental purpose of an organization. of an organization.

ValuesValues: Beliefs that are shared among the stakeholders : Beliefs that are shared among the stakeholders of an organization. Values drive an organization's culture of an organization. Values drive an organization's culture and priorities.and priorities.

Project planningProject planning encompasses goals and encompasses goals and objectives, managing objectives, managing resources, budget forecasting resources, budget forecasting and pre-determining scope of and pre-determining scope of work and scalability. The work and scalability. The nemesisnemesis of project planning is of project planning is time allocationtime allocation, thus project , thus project planning requires flexibility in planning requires flexibility in its execution! its execution!

Let’s take a look at the Let’s take a look at the 10 Essential Elements10 Essential Elements to to Project Project PlanningPlanning::

1.1. Aim of projectAim of project: What is the end game? What are we aiming to : What is the end game? What are we aiming to accomplish? accomplish?

2.2. OutputsOutputs: At completion, what will the project produce?: At completion, what will the project produce? 3.3. Quality criteriaQuality criteria: What the project produces needs to be of : What the project produces needs to be of

good quality and it needs to be SMART – (specific, measurable, good quality and it needs to be SMART – (specific, measurable, attainable, relevant and time-based). attainable, relevant and time-based).

4.4. ResourcesResources: What resources will we need to achieve the project : What resources will we need to achieve the project – (eg. staff, capital, equipment, etc.).– (eg. staff, capital, equipment, etc.).

5.5. Management structureManagement structure: How are we going to manage the : How are we going to manage the work and/or different streams of work? work and/or different streams of work?

6.6. MilestonesMilestones: Benchmark progress and review according to the : Benchmark progress and review according to the project timeline.project timeline.

7.7. TolerancesTolerances: Setting tolerance in terms of finance of +/- 5%, : Setting tolerance in terms of finance of +/- 5%, and/or a tolerance in terms of time of +/- 10%. Additional and/or a tolerance in terms of time of +/- 10%. Additional tolerances may be required. tolerances may be required.

8.8. DependenciesDependencies: Dependencies should include both internal to : Dependencies should include both internal to the project – (eg. what’s under your control), and external – (eg. the project – (eg. what’s under your control), and external – (eg. what’s outside of your control). what’s outside of your control).

9.9. RisksRisks: What could go wrong? What are your liabilities? : What could go wrong? What are your liabilities? 10.10. ScheduleSchedule: As mentioned, : As mentioned, project planning requires project planning requires flexibilityflexibility in in

its execution but requires an overview and how the project will its execution but requires an overview and how the project will be broken down into sensible chunks.be broken down into sensible chunks.

Somewhat abstract, Somewhat abstract, sustainabilitysustainability in relation to the in relation to the business environment is a business environment is a wide ranging termwide ranging term with with varying varying degrees of definitiondegrees of definition. It’s relevancy to small business . It’s relevancy to small business growth is more growth is more theoretical-basedtheoretical-based than than model-basedmodel-based. That . That being said….being said….

Q.- What does sustainability mean to you? Why is it Q.- What does sustainability mean to you? Why is it

important? Have you implemented a sustainability strategy important? Have you implemented a sustainability strategy into your business model? into your business model?

THINKTHINK:: LongevityLongevity Diversification Diversification Social, economical, technological and environmental Social, economical, technological and environmental

impact.impact. Natural evolution Natural evolution Sustaining growth is taking a look at the big picture and Sustaining growth is taking a look at the big picture and

then scaling back. For small business it’s about then scaling back. For small business it’s about stability and stability and long term growthlong term growth. Sustainability factors in everything we . Sustainability factors in everything we discussed so far and asks the question is my business discussed so far and asks the question is my business sustainable? sustainable?

A A financial forecastfinancial forecast is normally an estimate of is normally an estimate of future financial outcomes for a company and future financial outcomes for a company and unlike a financial plan or a budget a unlike a financial plan or a budget a financial financial forecast doesn't have to be used as a planning forecast doesn't have to be used as a planning documentdocument it can be used as a it can be used as a tooltool to estimate a to estimate a company's success in the coming quarter or company's success in the coming quarter or year on the rollout of a project or new year on the rollout of a project or new initiative. initiative.

Starting with cash flow…Starting with cash flow…cash flowcash flow is is

essentially the movement of money into and essentially the movement of money into and out of your business; it's the cycle of out of your business; it's the cycle of cash cash inflowsinflows and and cash outflowscash outflows that determine your that determine your business' solvency. Critical to business growth business' solvency. Critical to business growth and directly related to project rollout and/or and directly related to project rollout and/or business development, cash flow is the main business development, cash flow is the main ingredient in determining ingredient in determining howhow you will grow you will grow your business.your business.

For example, For example, measurementmeasurement of cash flow can be used to of cash flow can be used to determine a project's determine a project's rate of return or valuerate of return or value. The time of . The time of cash that flows into and out of projects are used as inputs cash that flows into and out of projects are used as inputs in financial models such as in financial models such as internal rate of returninternal rate of return, and , and net net present valuepresent value. .

ReminderReminder: Cash flow can be used : Cash flow can be used to determine problems to determine problems with a business's liquidity. with a business's liquidity. Being profitable does not Being profitable does not necessarily mean being liquidnecessarily mean being liquid. A company can fail because . A company can fail because of a shortage of cash, even while being profitable.of a shortage of cash, even while being profitable.

Coupled with cash flow is Coupled with cash flow is ROIROI, and the financial , and the financial forecasting of ROI on specific forecasting of ROI on specific marketing strategiesmarketing strategies and and project executionproject execution is critical to small business owner(s) is critical to small business owner(s) needing to make decisions on growth potential. needing to make decisions on growth potential. ROI is a ROI is a financial ratio that compares the amount of income derived financial ratio that compares the amount of income derived from an investment with the cost of the investmentfrom an investment with the cost of the investment. . ROIROI is is known as a profitability ratio, because it provides known as a profitability ratio, because it provides information about management's performance in using the information about management's performance in using the resources of the small business to generate income.resources of the small business to generate income.

The The ROI ROI ratioratio can provide small business can provide small business owners and entrepreneurs with a valuable tool owners and entrepreneurs with a valuable tool to measure their progress against to measure their progress against predeterminedpredetermined internal goalsinternal goals, , external goalsexternal goals and at times the overall industry. and at times the overall industry. ROIROI is a very is a very popular metric because of its popular metric because of its versatility and versatility and simplicitysimplicity, BUT remember the intangibles are , BUT remember the intangibles are sometimes the most important benefits, but sometimes the most important benefits, but because many of them may be long term, they because many of them may be long term, they are typically the most difficult to quantify.are typically the most difficult to quantify.

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