Small Business Small Business ^̂ A - Z A - Z

What the Manual didn’t IncludeWhat the Manual didn’t Include

Consulting

Some Issues Not in the TextSome Issues Not in the Text

• These slides available at: www.smallbiza-z.com

Some Issues Not in the TextSome Issues Not in the Text

• What are we doing?– What does the client think?– What do you think?

• What’s in it for you?– Are you a charitable organization?– How to charge– How much to charge

Bottom line: you need an engagement letterBottom line: you need an engagement letter

The Engagement LetterThe Engagement Letter

• Who– Who is hiring you? Management or owners?– Who do you report to?– Who will give you the info you need?

• What– What do they want?– Expectations – theirs’ and yours– Disclaimer

The Engagement LetterThe Engagement Letter

• When ( timing )– Is this the never ending story?– Will things drag on and on?– Will you or they lose interest?– When and how do you get paid?

• How– Do you have a work program?– Do you have a budget?– Do they know about it?

The Engagement LetterThe Engagement Letter

• Protection– Protect yourself from your client– What happens if things go wrong?

• You missed the real problem• You missed theft going on in plain site• Your recommendations were awful instead of

awesome• A conflict of interest arises• They don’t pay• You can’t complete the work because…..

How are YOU going to Market How are YOU going to Market this Service?this Service?

• Focus on USP• Why would a client hire you?• How can you help them?

• Packaging your “product”– The “operational audit”– The turnaround artist– The performance review– Small Business Tune Up

How are YOU going to Market How are YOU going to Market this Service?this Service?

• Referral Sources– Bankers and other lenders– Other accountants– Lawyers

• Public Relations– Articles for local business mag– Newsletter for existing clients

SummarySummary

• Lucrative field

• You are in the best position to help

• Avoid quicksand clients

• Don’t give it away!

Forbes MagazineForbes Magazine

10 Best Tips on a Great Business 10 Best Tips on a Great Business PlanPlan

Define the problemDefine the problem

• In Terms you mother could understand

• Quantify the cost of the pain

• Avoid gobbledygook

Figure out Solutions and BenefitsFigure out Solutions and Benefits

• Get to the simple facts

Industry and MarketIndustry and Market

• What’s happening in the industry

• What’s happening in your niche

What is your Business ModelWhat is your Business Model

• Exactly: how does client make money?

What’s the Competitive AdvantageWhat’s the Competitive Advantage

• Who are your competitors

• What are the substitute products

• What is your competitive advantage

Marketing and SalesMarketing and Sales

• How are you going to sell it?

• Distribution channel

• Strategic partnerships

Executive TeamExecutive Team

• Where’s the horsepower?

• Where’s the advisory board

Funding RequirementsFunding Requirements

• Show me the money needs

• Where is the commitment of owners

• How much sweat equity is invested

Financial ForecastFinancial Forecast

• Is this real?

• How will investors get their money back?

10 Essential Questions10 Essential Questions

1. What is the purpose for existing?

2. Who is the target customer

3. Who needs what we sell

4. Is the need big enough to support the business?

5. What are competitors doing

6. Can expenses be reduced without harming the product?

10 Essential Questions10 Essential Questions

7. Do we have the right leadership?

8. Do we have the right employees?

9. How will we continue to drive revenue?

10.How are employees holding up?

From Mark Kramer, Wharton School quoted from Forbes magazine 11/20/09

How to Bounce Back from FailureHow to Bounce Back from Failure

• Get a 4-legged friend• Face the music.• Clear your head, then double down• Swallow your pride – ask for help• Meditate / pray • Stand by your convictions… prove them wrong• Put things in perspective• Persevere. It’s never over till it’s over

Forbes 20 most important Forbes 20 most important QuestionsQuestions

Forbes Magazine www.forbes.com/

entrepreneurs/management

• Slides available at www.smallbiza-z.com

• Use Forbes Magazine Resources