Glasgow Entrepreneurs 2010 02 17

t: 0800 055 6343

e: [email protected]

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””!!

management servicesmanagement servicesCreating Sustainable Success for Business Ownersaspireaspire

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


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 ……


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


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!


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


Input fromInput from

Coach, Team,Coach, Team,

Other Advisors,Other Advisors,

Etc.Etc.

Prepare/Prepare/

Review Review

MissionMission PreparePrepare

AnnualAnnual

PlanPlan

Q1Q190 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


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


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


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 ... ?


Because entrepreneurs carry out 2 Because entrepreneurs carry out 2

key things in business, donkey things in business, don’’t we t we …… ??


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?


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 ... ?


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!


The Cycle of Business ...The Cycle of Business ...


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


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!


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

Documents

Glasgow Entrepreneurs 2010 02 17