The Real World of Small Business Seminar Worksheets & Notes

Transcription

1 The Real World of Small Business Seminar Worksheets & Notes Ver. 3.0 Written and delivered by David Ehrlich, The Track Group, Inc. An entrepreneurial point of view is a great starting place for growing a business or developing your career. Whether you intend to start a small business, are in the process of growing a business, or want to excel in your career, this seminar will provide a valuable framework and is loaded with real world tips, stories, and experiences. You will hear first-hand how two small business owners made the transition from full time employee to full time employer. This is an in the trenches look at what it takes day to day to start and grow a small business. Learn from the challenges we ve faced and gain insight into how your own small business can provide a lifestyle that meets many of your personal needs. We will include real life stories and your participation to help you formulate your own ideas and action plans. Worksheet Contents The Big Picture of Starting Your Business Discussion of potential and true motivation for moving from employee to business owner (employer). Overview of the four roles (visionary, manager, doer, sales) Self assessment quiz. Visualizing your brand and your promise - one that your customers will grow to love. Creating your unique bridge so that you can consistently deliver on your promise. Define Your Marketing Framework (TRACK Methodology) Target (financial goals and target customer description) Reach your target Action that should be taken Close the sale Keep customers Outline Your Employee to Employer Transition Path How might you make the transition from full time employee to full time employer Idea through to grow/leverage employees What Works in the Real World Marketing database creation and use Tips and tricks learned over ten years of operating a small business Next Steps: Checklist of 100+ things you can do today to prepare for your small business Small business topics for follow-up Reference and contact information PG1 * 2007 David Ehrlich All Rights Reserved.

2 What is Your TRUE Motivation for Starting Your Own Small Business? Big Picture Roles Necessary for Starting and Running a Small Business For each role, describe your comfort level handling the work and how you might tackle the roles you are not comfortable with (include where you need help and what you like to spend time on) Visionary Manager Technician Sales PG2 * 2007 David Ehrlich All Rights Reserved.

3 Moving From Working IN Your Business to Working ON Your Business Self Assessment Quiz Instructions: For each focus area listed below, choose the statement that you can most relate with (either based on your behavior in your business now or where you would feel most comfortable). If you feel more comfortable between two options, feel free to give yourself half points (e.g. between 2 and 3, score yourself a 2.5). While you may not actually relate to everything listed in your selected row, please select the row that best represents your level of involvement and attitude about the topic. Write your score for each area in the chart on the last page. Policies & Procedures 1 We don t have time to write policies. While it might be nice to have a documented procedure in place, we know what we need to know to get the work done so documenting it would take away from valuable time. 2 I personally write or review policies for my staff and actively encourage staff to document procedures. I know enough about what staff do daily that I can document procedures if necessary. 3 I think about policies that could help us better deliver on our promise to our customers and demand that our staff document procedures so that if someone leaves the company, we can quickly train new employees. Recruiting/Interviewing 1 I fit interviewing in as needed since it must get done. I generally place the ads and call people who apply for positions. 2 I oversee some one who handles placing ads and interviewing and I am generally a second interviewer. I am involved in the decision of who to select. I may do a new employee orientation or training where I cover what needs to get done to handle the work of the company. 3 I think about the types of people we need and communicate to others who find the individuals to perform in each role. If I am involved in the interview process, I generally introduce the company at a higher level and while I may provide my feedback on a decision of who to hire, I rely heavily on the supervising manager to make the selection. Team Motivation / Corporate Culture 1 My team members are self motivating and the corporate culture develops on it s own. We re focused on doing the work of the company and people are motivated because they are paid. 2 I look to my team for their input and help form attitudes around a common point we can all agree on. I do employee reviews and help motivate team members by highlighting non salary benefits. 3 I think about the corporate culture we need to thrive and I look for new ways to motivate my team members and generally have someone help me implement the ideas. I look for creative ways to make our company a great place to work and set a tone that is contagious in terms of making sure we all do everything to exceed our customer s needs. PG3 * 2007 David Ehrlich All Rights Reserved.

4 Accounting/Finance 1 I do the books and print the checks. I know exactly how much money we spend and take in every day. I create the invoices and mail them. 2 I check in and monitor someone who keeps our books. I sign checks and overall make sure the books are kept well. While I don t know about every transaction, I am knowledgeable about how the books are kept and could generate an invoice if I needed to. I may call customers who are late in paying. 3 I review reports from the accounting system (or reports from a manager) and help determine where we should put our limited resources moving forward (budgeting) and identify areas of opportunities for new business. I rely on someone else to track accounts receivable. Operations 1 I spend time working on projects or general operations of the company. I may have helped make sure our server was working correctly. 2 I primarily spend my time overseeing people who are doing work for customers to help make sure quality is maintained. If our server is acting up, I can ask someone else to look into the problem and report back to be. 3 I think about ways that we could improve the operations of the company and look to others to make these ideas happen. If our server is acting up, I trust that others who worry about the day to day will notice and take appropriate action and I will never be involved. Brand 1 Our brand is self defined by our customer s perceptions of what we do everyday so we really don t need to proactively define what our brand represents. 2 I work with others who help formulate what our brand stands for. I help find ways to represent our brand image to our customers and reinforce it in the actions of our team members. 3 I think about what our brand should stand for and help others implement actions that reinforce this vision. I think about other company s brands and where we should be relative to them. I can take time during the day to brainstorm on our brand. Customer Service 1 I speak with customers daily to work on their problems and take care of their needs. Customers likely know my name since I work with them on projects. 2 I oversee people who spend time handling customer inquires. I attend select customer meetings that around more complex projects to help insure we do everything right. 3 I think about how our customer service is an opportunity to strengthen the relationship with customers and grow the revenue. I rarely meet with customers to review the execution of jobs. Marketing 1 We don t do formal marketing rather we execute as the mood strikes us. We don t do much online marketing. 2 We ve formulated a marketing plan and execute it. We ve reviewed online marketing options and I have other people research the options and make recommendations. 3 I look for new marketing opportunities that could help us grow. We ve executed online marketing activities. Sales 1 I make sales calls as needed. 2 We have a sales person and I may go on select calls. 3 I think about new ways to get sales people excited and give them better resources they need to sell more. PG4 * 2007 David Ehrlich All Rights Reserved.

5 If I Take a Month Long Vacation 1 My customers will notice and work will not get done. 2 My team will keep doing their work but might not have all the direction they need, especially around unusual situations that occur. 3 The customers will not notice and the teams will execute according to plan and be able to handle unusual situations that occur with no problem. I can relax knowing things will be fine when I return from vacation and can look forward to learning about new sales, improved processes, and happy customers paying on-time! Your Primary Role Score: FOCUS AREA Policies & Procedures Recruiting/Interviewing Team Motivation / Corp Culture Accounting/Finance Operations Brand Customer Service Marketing Sales Month Long Vacation TOTAL SCORE Score of 10 15: Primary role is Technician You focus on the day to day work of the company the present. Primarily reactive to customer needs. Your company may be in early growth stage which would account for some of the need for you to wear many front line hats. Score of 16 24: Primary role is Manager You have other people helping you execute and you focus most on seeing that others execute to your satisfaction. Primarily focused on managing your company s response to customer s needs and issues and management of your team. Your company may be growing and in need of management staff to help free up more of your time for a visionary role. Score of 25 30: Primary role is Visionary You have the resources in place to execute and manage the work of the company and you focus on taking the company to another level the future. Primarily focused on meeting future customer needs. You are likely creating a company that could one day be sold and operate without your involvement. PG5 * 2007 David Ehrlich All Rights Reserved.

6 Brand Definition Small Business Development Resources * Describe Brands That You Love: Name a company that you LOVE! What do you expect each & every time you return to this company? Why do you keep going to this company? What do they offer that their competitors don t offer you? How is their offer different from the commodity they deliver (food) and the real benefit to you (healthy lifestyle / fast / cheap eating)? Describe Your Brand: When people speak about your company and what you deliver, what would you like them to talk about first? Lowest cost - save money Peace of mind - avoid danger Family togetherness Prestige, luxury, comfort Easy - turnkey solution - one call does it all Fastest service Most effective - guaranteed to meet a need Knowledgeable - educate and inform Fun experience - childhood Excitement - daring - outside the box experience Organized - in this otherwise crazy world Familiar and consistency Hope you can solve a problem / realize a dream Other: Describe the specific PROMISE you will make to every customer: Describe it in terms that meets needs of the customer think less about the commodity you offer, and more about the perceived needs that will be met by the service or product. How does your brand image compare and contrast to competitors? Include less obvious competitors (such as renting a video tape and going out to a movie). What will they experience? See, smell, feel? What marketing taglines and/or imagery summarize your brand and reinforce your unique brand to prospective and current customers: PG6 * 2007 David Ehrlich All Rights Reserved.

7 Defining and Supporting Your Bridge Description: What will your bridge look like? Describe the small details that add up to a wonderful experience each and every time your customers cross your bridge. Why is your bridge unique? Process: What would be needed to support the promise? What can you do as part of your process that can reinforce your promise? Threats: What would cause people to stop using your bridge in the future? Organization: What organization will be needed to support the bridge? Who would you need? Job descriptions. PG7 * 2007 David Ehrlich All Rights Reserved.

8 Define Your Marketing Framework (TRACK Methodology) What is your Target (financial goals) How will you measure success? What might you need to charge? Do you have gross profit goals? How much outside investment would you need / is available? Define your Target Market (the customer) get inside their head and think about how they look at the world and describe them in detail Demographics Psychographics Motivation How will you Reach your Target Emotionally? What is your offer? (immediate response offer and longer term offer/benefits) How can you reach their heart, mind, and inner needs? How will you Reach your Target Physically? Where will they see your message? When should you reach them? What Action will happen once you reach the customer? (web site, phone, visit?) How will you Close the sale? How can you Keep customers Cross sell Up-sell Loyalty build programs Referrals PG8 * 2007 David Ehrlich All Rights Reserved.

9 Outline Your Employee to Employer Transition Path Idea / Brainstorm / Dream Come up with great idea Wonder who else is doing it Wonder if you could make it fly Tentative Exploration Check into competitors/similar ideas Look at numbers a little Tell some friends and get feedback Basic Infrastructure Make leap to starting business Consider legal structure Review licenses requirements Put out feelers to get business Home Office Quit Day Job - Start FT Infrastructure/Office Hire Employees Grow/Leverage Employees PG9 * 2007 David Ehrlich All Rights Reserved.

10 100+ Things You Can Do Today To Prepare for Your Small Business Check for latest list including links LEGAL / LICENSE Secure a trademark name Setup your legal structure Register your name with the state Obtain a county business license Obtain a federal tax id number Obtain a sales tax collection license Find a lawyer who you can use as needed consider pre-paid legal advice FINANCE / TAXES / ACCOUNTING / PRICING Research cost of producing/delivering your product/service Research the cost for retail or office space Research other overhead cost Determine estimate of pricing necessary to make profit based on project sales and expenses Increase your rate of savings to build nest egg Open a business checking account and start relationship with bank Inquire with bank about a credit line that you may need down the road Obtain a business credit card Look for silent investors / private funding Find a business accountant Get accounting software and set-up accounts with accountant Consider impact on your personal tax situation when reviewing legal structure options RESEARCH / COMPETITION Call competitors to learn about their offering and cost compare to your projected pricing Try to identify unmet needs in your marketplace Think about how you will be more competitive price / offering Start a business plan YOUR BRAND Review competing brands and see how they position themselves Define promise and your brand Write a tagline that summarizes what your company will stand for Document processes (your bridge) Find vendors to help you fulfill on your promise ORGANIZATION / TEAM Create an org chart of all positions necessary to run the operation. Review help wanted ads online and in local newspaper to see how positions are advertised Review salary range paid for positions Review key roles and determine any weak areas consider business partner Create job application Write employee handbook documenting policies, vacation, sick, etc. Write exercises used to test applicants you may hire Hire first employee who will likely perform multiple roles Document job descriptions including performance measures and expectations PG10 * 2007 David Ehrlich All Rights Reserved.

11 Write a Non Disclosure Agreement (NDA) and Non-Compete agreement and have employees and contractors sign as appropriate INFRASTRUCTURE / OFFICE Set up initial office in your home Get basic office equipment PC, Fax, desk, etc. Setup business account Get second telephone line for web and fax Consider adding DSL or cable access if web is important part of business Setup business long distance plan When appropriate, lease first office Exempt vs. non-exempt status Internships - fresh ideas Termination issues Performance reviews Employee privacy Use a payroll company Consider setting up a 401K and profit sharing plan Research cost for health insurance for small business Consider setting up a section 125 health plan Get ability to accept credit cards Write benefits package overview for future hires Review business insurance policies Consider using a company that manages your staff & HR functions Get mandatory posters for office Consider mailing software or postage meter WEB Register domain name consider multiple domains if appropriate (buydomains.com) Create first version of your web site Add interactive functions including mailto inquiry forms and surveys Get web site added to search engines and directories (see report "maximizing search engines" for more details on the process Investigate possible link exchanges with other web sites your domain in place Viral marketing Opt-in marketing MARKETING Define your target market in demographics terms Define your target market in psychographics why will they buy from you? Consider various ways to reach your target market Create a logo Order business cards Create letter head or print as needed on your computer Review how prospects will take action based on your direct marketing Do mock up of sample direct marketing campaigns include compelling offer, respond methods, and creative ideas Create a marketing database to track prospects Buy prospects marketing lists and put names into your database Get cost estimates for various marketing options Review & execute guerilla (low cost) marketing efforts Review PR options Execute your first marketing effort Use testimonials PG11 * 2007 David Ehrlich All Rights Reserved.

12 Setup a loyalty program to reward current active customers send birthday cards Do an marketing campaign Consider ad specialty products that carry your name and logo SALES Review who will make sales calls Is there another business in a non-competitive position who might help sell for you in exchange for a commission? Document how to conduct a sales call including opening, client objections, and closure options Practice sales call on friends and other business people Take a sales training class Call prospective clients and test the offer Use your marketing database to track prospect and client contacts Get proposal software and integrate with your sales tracking software Ask what other services your customers might need (discover cross sell opportunities) Ask for referrals offer an incentive DURING THE DAY CHALLENGE (When it is hard to get time during the business day) Partner with another established company who has a front office and back end processes that can work jointly with you Consider a shared office which is already up and running Use a voic that can page you when you have calls Consider an answering service that can personally take your calls Offer to do a free job for someone who can serve as a reference to get new paid business Use your vacation and personal days to make progress Consider option to change full time job to a part time job to free up more time Inquire with a salesperson if they could also sell your product for a commission Advertise for commission only sales and give a high percent commission for closed orders Join network groups that meet in the evening / weekends CONTACT ADDITIONAL SUPPORT & RESOURCES Setup an advisory board for your company SCORE (Retired executives that volunteer to assist small businesses) Web resources: Yourinc.com Visit Small Business Development advice: o PG12 * 2007 David Ehrlich All Rights Reserved.

13 Small Business Topics for Follow-Up TOPIC: Business Planning CONTENT RELEVANT TO EACH TOPIC: Defining the concept Product/service definition Finance Competition Target market Operations Delivering the product Office infrastructure Legal/license Bookkeeping Insurance Taxes Database tracking Employees Marketing: Defining Your Image Marketing: Getting the Word Out Corporate identity Logo Collateral material Direct marketing methodology Direct mail/lead generation Targeted lists Advertising Public relations Newsletters E-Marketing marketing Web presence Increasing search engine hits Web marketing, Web movies Web surveys Offline to online Sales Meeting prospects How to get appointments Sales process Closing more sales Sales follow-up Growing the Business Refining the offer Loyalty programs Active referral program Up-sell and Cross-sell options Outsource options Partnerships Roundtable and Brainstorming Roundtable discussions PG13 * 2007 David Ehrlich All Rights Reserved.

14 REFERENCES & CONTACT INFORMATION I would love to hear from you! Tell me about your challenges, ideas, and feedback on the contents of my presentation. yourinc@aol.com Web: The TRACK Marketing framework Book: Smokey, Rosie, and You! Book: TRACK Marketing - Federal marketing courses PG14 * 2007 David Ehrlich All Rights Reserved.