Fluidity Business Planning Group

How Well Is Your Business Positioned For 2012?

2012-01-11T09:49:00.000-08:00

There are several aspects to knowing the position of your business:

Where is it in the business or product life cycle?
What percentage of market share do you own?
How well do actual sales compare to budgeted projections?
How do we stand when it comes to cash flow?
Have we been able to retain enough earnings to weather a downturn?
Is our management team watching costs and making good decisions?
What is our cost of goods percentage, and is that within reason ... or acceptable?

The days of being able to say everything is "fine" and keep plodding along until you fall off the cliff are behind us. As a business owner, it is vital to stay on top of the information that affects your business. You need to know your position so you can keep moving forward or know when to step back, re-focus, and move forward again ... perhaps in a new direction.

Since you are probably too close to the business - which you should be - it is a good idea to bring in an independent, 3rd party professional to help you assess where your business is and, most important, offer suggestions on how to move forward and achieve full capability. The new year is already under way, so the time to act is now to make 2012 your best year ever!

Business Owner's 2012 Resolutions

2012-01-02T09:00:00.000-08:00

Thought we'd share what we find may be missing from your repertoire as a business owner. We have found that these are helpful suggestions any time of year. They're also good resolutions to consider in 2012 to manage and grow your business. As much as we deny it, we need professional help so we can concentrate on doing what we love - running our business!

Business owner's resolutions for 2012:

1) I will rely more on my legal counsel to ensure that my company and I are protected when it comes to any contracts, proposals, or other legal documents, especially franchise agreements.

I will talk to my lawyer about my personal estate, too, and make sure my will is up to date when it comes to designated heirs.

I will also discuss my succession plans for the business, and while I'm at it, check with my attorney on how my business is established to ensure it's the most beneficial legal entity for me, my family, and the business.

2) I will check with my business insurance agent at least twice this year to make sure I'm adequately covered.

I will talk to my agent about disability coverage, especially since I travel a lot on business and I've had employees calling in sick quite a bit lately.

I will ask about Key Man insurance as part of my succession strategy and make sure my beneficiaries are correct on all policies.

I also want to make sure my life and my property - vehicles, too - are adequately covered. It will be hard to replace me, so I want to protect your legacy as best I can.

3) I will set up monthly appointments with my CPA (or accountant) to look over the financial statements for my business. Having my accountant compile these statements, including my balance sheet, income statement, and statements of cash flow and retained earnings, will decrease the chance for recording errors.

I will rely on these statements to give me more reliable information on which to make decisions about my business. I will also count on my accountant to answer the questions I need answered.

I will get my accountant more involved in my business so they can stay on top of potential tax situations that may arise ... and I vow to avoid waiting until the end of the year to see my CPA (or accountant) with my tax information ... when it's too late to do anything about it!

4) I will place more faith and trust in my banker and visit with her every month or two in 2012.

I know my banker wants to see me succeed and is there to help me any way she can.

I will share my financial statements quarterly (or more often) with my banker to keep her informed. I need her to bat for me with the government inspectors and auditors looking over her shoulder at my loan portfolio.

I will ask about services I've been wondering about whether the bank can provide, and I will talk to her if my accountant suggests a line of credit to get through cash flow shortages.

5) I will save money on advertising by working more closely with a professional business planning and strategic marketing firm - Fluidity comes to mind.

I will revisit my business strategy, even if it's on that proverbial cocktail napkin, and make sure my focus is clear. A clear, market-driven focus will enable me to deliver the right message to the right customers and prospects through a vehicle that encourages them to do business with me and my company.

By failing to plan for the growth of my business, I am leaving it all to chance.

To your success and unparalleled profitability in 2012!

Will You Hit Your Target In 2012?

2011-12-29T13:43:00.000-08:00

What are the chances your business will be successful in 2012?

Have you clearly defined what you want your new year's success to look like at this time a year from now? That's the 1st step in increasing your odds for being successful.

Imagine an archer shooting for a bull's eye on a target 75 yards away. This experienced bowman has all the confidence in the world that he can hit dead center from that distance. He gets in the right stance, notches the arrow properly, draws back, aims and lets go ... only to see the arrow land five yards short of the target. He tries again, making the necessary adjustments, and falls just three yards short. Maybe it's the wind, so he adjusts and comes up a yard short. Frustrated, he moves the target to 50 yards out, notches an arrow, and strikes dead center.

Your target needs to be a SMART goal: Specific; Measurable; Attainable; Realistic; and, Timely.

If you fail to plan for your success, you leave it to chance.

Specialized Expertise

2011-11-27T19:13:00.000-08:00

Most businesses offer a variety of products and services. A select group, however, specializes.

Our business, for example, is about helping other business owners develop successful and profitable business and marketing strategies. Each business is unique, so a cookie-cutter approach to advertising may be less effective for one business while highly productive for another.

The variety of our services ranges from feasibility studies to verify the potential of a business idea to comprehensive business plans and from business evaluations to determine new directions to assistance in the execution of business and marketing strategies.

While these areas are backed by our more than 40 years of intellectual capital, the two members of the Fluidity LLC have expertise in specific industry groups. We provide value to companies in transportation/logistics and in the hospitality and tourism industries because of extensive experience with companies from the Fortune 500 level to non-profits (NGAs).

Working with one client, we helped develop a strategy to open a motocross complex in northeast Wisconsin. The complex met a need for an extreme sports facility to attract motocross riders, ATV racers, and snowmobile enthusiasts as well. Long before the complex was finished, time was spent investigating the validity of the concept, checking with state agencies for funding, and working out the financial projections. The end result is a high-use, profitable operation that attracts thousands of riders/racers and fans every year.

Business Owners Provide Leadership

2011-10-18T11:47:00.000-07:00

There's considerable media coverage about Wall Street and "Corporate Greed," which makes you wonder who's fomenting the unrest in our country, where free enterprise has been the backbone of our economy since the country's inception. It's why America revolted from England.

What the average citizen may fail to realize is that business owners are people who want to help other citizens by providing goods or services to meet their needs. In the process, they create jobs and generate payrolls so employees can provide for their families. Part of the economic process means the business must make money to stay in business; failure to do so means closure and loss of jobs.

So it's also important to understand that business owners have obligations to their customers and their employees. The new CEO of a fast food franchise recently laid out his formula for success (our interpretation in parentheses):

Have a vision (the reason for your existence)
Have a strategy (which means a well-defined business plan)
Define reality (know your consumer and your place in the market)
Give hope (build customer loyalty and take care of your employees)
Execute (the action plan that marries business and marketing strategies).

7 Reasons Entrepreneurs are Fabulous!

2011-09-27T13:26:00.000-07:00

In a recent supplement to USA Today, an author offered 7 reasons why you should be an entrepreneur. Here's our spin on those 7 reasons, in our order:

Make more money - Entrepreneurs are usually fed up with having little control over their lives, so they work harder to make sure the revenue they generate goes into their pocket instead of someone else's. Having been told I could make more money as a commissioned sales person enabled me to break free and start my own business ... so everything I sold was at 100% commission instead of 15%.
Freedom - Along the same lines as being able to make more money, being an entrepreneur means you have to freedom to set your own hours and work when you want to work, although it still requires that you do work! The down side, depending on your business, is that when you take time off, you also take away the income that might have been generated if you had kept working. You still need personal or family time, though.
Job Security - As an entrepreneur, you are usually the only person who can fire you. I say usually because there are times when the entrepreneur establishes a business entity, places a strong manager in charge of the venture, and gives that person authority to hire and fire. Entrepreneurs, fortunately, will move on to another challenge if they've launched a successful business and been fired as someone else takes it further.
Discover your Hidden Potential - Referring back to #3, when an entrepreneur is released from a project they've begun, they are free to unleash a new concept or look for what they might feel is their "true" potential. Entrepreneurs must also be imbued with the ability to get back up after a failure and try again. Being knocked down is only disastrous if one fails to get back up again. Each of us should search for our true potential so we can realize it.
A Second Career - As the Baby Boom generation continues to mature and leave their traditional workplace, they still wish to contribute to society. Many have probably dreamed of being an entrepreneur and may have a fabulous idea that, in retirement, they can now bring into full blossom. We have found that if you are passionate about your pursuit, you will be successful, whether it's a 2nd career or your primary occupation.
You're Sharing instead of Selling - While we are always selling, being an entrepreneur is more about sharing your ideas and concepts with other people. You probably came up with the idea for the product or service because you noticed a lack or need in some area that could be filled quite effectively. So, indeed, you are sharing instead of selling and we must always remember consumers prefer to buy on their own terms instead of being sold.
A life of Greater Impact - Each of us can have a much more significant impact on this planet and in our society if we are providing a service that is in demand and helps each of us achieve our true potential. We are here for a purpose. When we realize that purpose and do our best to fulfill it, we make a measurable contribution to life and society.

Business Plan - M and M's for Success

2011-09-11T07:17:00.000-07:00

If there is a negative connotation about business plans, it's probably because putting together a plan requires time that many business people feel is wasted time. Time spent on becoming more successful is rarely wasted, though. It also involves work that people view as pointless, because they think "the plan" will merely sit on a shelf in someone's office or get tucked in a file cabinet and never be seen again.

Yes, planning does take time. Would the perception change, however, if the process was referred to as a business "action" plan?

When we take apart the process of planning for the success and profitability of a business, the end result comes down to two main elements.

One is that you develop an effective strategy for managing the business on a day-to-day, and long-range, basis. Decisions are based on relevant information, thought out and made in light of the long term objectives. People are plugged in to the formula for a successful operation, too.

The second major element is that you also develop an effective strategy for marketing the business. Clients are secured more cost efficiently and brand loyalty is developed to retain those clients and build a following for the life cycle of the business. Ad dollars are wisely spent reaching out to the right target audience with a pertinent message, properly delivered.

The point is to think of your business plan as a management and marketing (M&M) strategy for achieving the successful accomplishment of your goals. And while a strategy may look good on paper, it still requires execution to achieve its potential.

Business Plan = Communication Link

2011-09-02T09:18:00.000-07:00

If you've ever stopped to wonder if the message about your brand is communicated consistently, you will find the answer links back to your business plan.

Conveying a consistent vision begins with you, your management team, and the commitment to your business plan. Your mission needs to be clear. Review it often to make sure it reflects your goals and objectives for your business. Make sure your management team knows it, believes in it, and practices what it means for employees and customers.

Your employees need training on every aspect of your business, especially how to communicate with customers and prospective customers. How would it sound to a prospective guest on the phone who has just been told your hotel is full for the night that another front desk person is telling someone else you have plenty of rooms available?

Employees need to know and understand your brand, and believe in it. Anything less has the potential of damaging your brand, perhaps fatally. Frequent training sessions or one-to-one coaching opportunities may be required to develop employee brand loyalty. Good pay for a good day's work also helps. Praise in public, critique in private.

When you have a solid business plan, your brand message is also clearly imparted to your customers and prospective clients. They know who you are, what you stand for, and what you mean to them. Your message is consistent and they develop loyalty to your brand, even if the cost may be higher than a comparable brand. It all comes back to the plan.

Don't leave the success of your business to chance, plan for it!

SWOT Profile - Threats

2011-08-28T14:53:00.000-07:00

The fourth area to consider in producing a SWOT profile for your business is the threats to your survival as a company. Strengths and weaknesses are focused on the internal aspects of your endeavor, while opportunities and threats look at the external influences.

As you consider potential threats, think about how difficult it has been for you to acquire customers. Losing them is a major threat to your survival. Are you providing the services your clients expect, or exceeding them? Are uncontrollable costs pricing you out of the market, and costing you customers? Has your product line become obsolete?

Threats can come from many directions - new products brought to market by competitors, consumers reacting to new technology for receiving advertising messages (texting, for example), employees trying to undermine your business without your knowledge, or something as simple (and complex at the same time) as major road construction limiting the ability of clients to reach your location.

The key to identifying potential threats to your business is that, in doing so, you can also identify the solutions to the problems each of these threats pose to your survival. It's better to know what can prevent the fire rather than try to fight it when it breaks out. This is also an opportunity to bring in professional help to counsel you and your team on what threats there may be, and how you can respond to them effectively.

SWOT Profile - Opportunities

2011-08-26T14:20:00.001-07:00

Once you have evaluated your company from an internal perspective, you need to assess what kind of an impact the external environment might have on your business venture. The opportunities and threats sides of the SWOT profile are meant to do that.

Considering opportunities is your chance to think outside of the box. Take the time to stop and think for a few minutes about your business, products, and services.

Is there a niche your product could fill that you haven't thought of yet? We might think that our Fluidity feasibility studies are meant for industrial or commercial business endeavors, but when we take a few minutes to think of the possibilities, new avenues open. We could also assist businesses in the hospitality industry contemplating opening new tourist attractions. With the right approach, it could be a beneficial program for every business we're able to help.

Do you have opportunities in new markets? Have you reached saturation in your target market, or are there variations in that demographic you've over-looked? Have you considered ways to reduce overhead while increasing your profit margins? Weighed the pros and cons of raising prices? Is there an advertising media that could work better for you in terms of generating results?

There's a saying that you, at times, can't see the forest because of the trees. Our interpretation of what that means is that you are often so close to the action, and so embroiled in working "in" your business that you don't have time to think or work "on" your business.

There are times when having a 3rd party look at your systems that you can come up with simple solutions that save time and money. We helped one client that was preparing a new proposal from scratch every time create a master proposal that only required changing numbers and deleting items that weren't needed. It was easy to update pricing and virtually any member of the staff could crank out a proposal within minutes.

If you wait for opportunity to knock, it may ring the doorbell. Don't leave your business success to chance, plan for it!

SWOT Profile - Weaknesses

2011-08-25T12:26:00.000-07:00

When you draw up a SWOT profile for your business, the strengths and weaknesses are focused more on the internal workings of your business, while the opportunities and threats are directed toward the external influences.

Since we've covered your business strengths in an earlier blog, this one is more about the weaknesses in your business. Identifying weaknesses is often the most difficult aspect of compiling a SWOT profile because it requires that you be open and honest with yourself about your business venture.

If you are having cash flow problems, for instance, you need to take a hard and sometimes painful look at what might be causing the problem. Are you having a hard time collecting from your customres? Are those receivables beyond the 60 day range? Perhaps expenses are running higher than you've budgeted, too. These could be bare spots in your business landscaping that need to be re-worked, seeded again, and nurtured back to health.

Other potential weaknesses could be in your sales force, management, or other personnel areas. Again, while you may want to avoid dealing with an issue if it involves your employees, it's important to do an honest assessment. Banks want to know your management team is capable of making tough decisions, and sticking with them. Consider how consistent your sales force is in reaching its monthly objectives. Does someone need to be let go? Do you need more representatives or larger territories? Evaluate your management team in terms of whether every member is pulling his or her weight, or needs a re-orientation or additional training. Include yourself in the evaluation.

Remember, your people are the front line with your customers. Does your business have curb appeal? Could your overall customer satisfaction ratings be improved? How well do you know your customers? You may have marketing myopia and be missing a fabulous opportunity to grow your business. Don't leave it to chance, plan for it!

Other areas to consider: How is your location? Is it easy for consumers to find you, either in person or online? Are your products obsolete? Do your services need to be updated?

It's healthy to step back occasionally, assess your weaknesses, and take steps to make those weaknesses strengths. Napoleon Hill wrote that you should concentrate on your strengths and hire your weaknesses. We're able to help with both.

SWOT Profile - Strengths

2011-08-24T14:47:00.000-07:00

One of the steps in developing or updating your business plan is analyzing the business through a SWOT profile. SWOT stands for Strengths-Weaknesses-Opportunities-Threats.

When Fluidity looks at the strengths of your business, it's important to consider what makes it stand out from the competition. How is your business different?

Evaluating strengths weighs such elements of your business landscape as location, product or service, reputation, management passion, market position, uniqueness, and consumer acceptance. Let's dig deeper.

Why does one franchise restaurant do better than two others in the same community? If it has gained the position as a neighborhood gathering place, that could be the deciding factor. Ease of access to your location can be critical to your customers, including ease of access to your website. A site that is optimized for search engines can also be a strength.

Obviously, the product or service you offer to consumers should be a strength. If there is a demand from consumers and your company supplies the product or service most apt to meet that demand, you should reap the benefits and remain strong.

In a similar vein, if you fall short of meeting the expectations of consumers, your reputation can be tarnished. You lose credibility and watch your profits slowly ebb. Reputation is key, for without customers, you will find it difficult to survive.

Addressing both the unique nature of your business and the position you have in the marketplace comes back to the number one immutable law of marketing. Own the niche! When you have to sneeze, do you ask for a facial tissue - or for a Kleenex? There are competitors, but it's clear who owns the niche for facial tissue.

Last point, among many, in evaluating the strength of your business is the passion of management, especially you - the owner and entrepreneur. Your desire to make the company succeed is paramount to achieving your dreams. That passion drives everything you do and is conveyed to employees, consumers, and the public at large. It must be a strength!

Next installment - Weaknesses.

Landscaping Your Business For Success

2011-08-15T20:28:00.001-07:00

As we consider what we can deliver to business owners and entrepreneurs as business development experts, the concept of business landscaping comes up.

What we're talking about is creating the proper scenario for your business to be successful, profitable, and rewarding for you. Think of your home. Your yard should be a destination for you to enjoy the outside of your property as much as the inside. Landscaping that fits your lifestyle should be part of the plan for where you live.

When it comes to your business, the same concept applies. Where your business is located can be a key factor in whether it thrives or barely survives. How it is positioned in the marketplace determines profitability and longevity. Effective marketing drives customer satisfaction, sales, and enhances the bottom line. If landscaped correctly, your business can be a source of great enjoyment, much like your home.

We thrive on helping entrepreneurs and business owners create the right landscape to be successful in business, whatever stage their business happens to be in.

15 Reasons to Validate Your Business Idea

2011-07-31T18:30:00.000-07:00

We encounter quite a few entrepreneurs who have a great business idea. What they need, however, is to validate that it is a viable concept before they invest blood, sweat, and tears in their venture. As the saying goes, an ounce of prevention is worth a pound of cure.

Here are our top 15 reasons you should have a feasibility study conducted to validate your idea before you risk hundreds of thousands of dollars:

Identify if there really is a market for what you're proposing;
Assess the competitive environment to see who else is doing what you're planning to do and, if not, why is there no one else in the market;
Evaluate the risk of getting into the business, and the potential rewards;
Validate your sales and financial projections, which are important to investors;
Consider the consumer and the market's acceptance of your product or service;
Define, clearly, your product or service from the consumer's perspective;
Determine the strength of your management team so you can fill in the gaps;
Clarify the best options for moving forward as a result of comprehensive research;
Verify your choice of location, if appropriate, for visibility, accessibility and other factors;
Analyze factors and variables, such as rent, that impact your break even point;
Weigh your considerations for establishing your business legally;
Delineate your target market and demographic characteristics to help with marketing;
Compare advertising opportunities to reach your target audience most effectively;
Provide justification and validation for investors and financial institutions; and,
Lay the foundation for your successful and profitable business venture.

Your feasibility study takes time. If you decide to move forward when you've seen the results, the study will form the basis of your business plan.

To your success.

Practicing Cowboy Ethics

2011-07-17T18:37:00.000-07:00

Back in the days of the wild west, the American cowboy had a code of conduct. Unwritten, until James Owen came up with Cowboy Ethics. Strange how appropriate it is for business owners:

Live each day with courage;
Take pride in your work;
Always finish what you start;
Do what has to be done;
Be tough, but fair;
When you make a promise, keep it;
Ride for the brand;
Talk less, say more;
Remember that some things aren't for sale; and,
Know where to draw the line.

Living each day with courage, as a business owner, involves being willing to make tough decisions and tackle situations head on.

Taking pride in your work means being good at what you do and seek perfection, and it involves confidence in the product or service you offer to consumers.

Finishing what you start and doing what has to be done need little explanation. There's a saying that if you don't have time to do it right the first time, when will you have time to do it over?

Cowboys had a reputation for being tough, and that can be easy. Being fair can be a challenge, and may involve making concessions to reach an agreement; it does not mean caving.

When you make a promise, you should keep it and if you find keeping it is next to impossible, perhaps you shouldn't have made it. Honesty is important.

Ride for the brand is what owning a business is all about. Your company is your brand and what you are in business for in the first place, riding on the path to profitability!

Talking less and saying more relates to the mantra to avoid telling people what you can do ... and show them! Let your actions speak for you.

What is not for sale in your business? The respect clients have for your ethics? And in your life? Your dreams and aspirations should never be for sale.

Where do you draw the line? How long would you keep an employee who steals from you?

Ally Yourself With Others

2011-06-30T13:50:00.000-07:00

Napoleon Hill is a well-known name when it comes to success in business, and in life. He wrote Think and Grow Rich and Law of Success as the result of his interviews and study of successful business people. His mentors were Andrew Carnegie, Henry Ford, and other successful merchants of the time. His principles have been updated by modern authors such as Bob Burg and others.

Yet we find it amazing how few people read - or follow - the valuable advice he shared. It is timeless and of immense value if one is willing to stick to it and not quit.

A recent example from the Law of Success publication struck home with us at Fluidity Business Planning Group because it is pertinent to our philosophy and approach to helping business owners make money.

Hill wrote that success comes when you "Ally yourself with others in a given undertaking without friction or envy." Building a successful business enterprise can rarely be accomplished by one individual. It starts with one person's dream, or vision, but comes to fruition when that dreamer allies themselves with others in achieving that "given undertaking."

Finding professional counsel - whether it is business development experts such as the Fluidity team, your CPA, attorney, banker, insurance agent, or your financial planner - is a smart move for any business person. Getting sound advice on issues makes for easier and smarter decision making.

When Hill wrote about avoiding friction or envy, it was not about surrounding yourself with "Yes" men or women. It meant to find people who believe in you and who will be open and honest with you. They may disagree with you, but they will remain loyal even when you run counter to their advice. They must, however, want you to be successful in making money!

Business Decision Making

2011-06-09T07:33:00.000-07:00

Business owners make decisions all the time. Some are as simple as a "Yes" or "No" answer. Others are complicated by employee law, contractual obligations, or cash flow situations.

The method used by business owners to make their decisions varies from what their gut tells them to what their legal counsel advises ... and other variants in between. The "in between" is what this article covers.

Business owners need a business plan, with a strategic marketing component, to help them make their business decisions. It's a critical management tool that defines the scope of the business, such as what the products and/or services are, where the business is positioned in the competitive environment, and who are the likely users or consumers of the products and services. When all of these elements of a business are clearly defined, the business owner has a matrix to use in making decisions about the business.

The best example is when it comes to advertising. If the business plan has identified the potential consumer of the product as women between the ages of 24 and 35, making decisions about advertising has become less complicated. The message is targeted to this demographic profile and is delivered through advertising channels most likely to produce a positive response from the target audience.

In essence, the business plan becomes the trunk of the decision tree. If the roots have a good foundation in viability, the trunk will support a growing, profitable business.

Success should be planned, not left to chance.

Expectations

2011-06-03T09:05:00.000-07:00

In today's economic environment, business owners can find it difficult to manage employees without clear expectations. More seasoned workers have the skills but may lack the motivation to be as productive as the employer expects. Newer hires may be eager to learn and make up for a lack of skill, bringing more energy and productivity to the company. Long-term employees may be set in their work habits and less than willing to make changes.

Finding the right balance to keep productivity at its peak while maintaining high employee morale is a challenge for business owners. The market is flooded with people looking for work, but the dilemma is how qualified they are. One client had more than 100 applicants for a sales position, but felt only two were qualified for further consideration.

Delineating expectations can be time well spent for today's business owner. As part of a business plan, the company defines the roles and skills sets of personnel. This is incorporated into the hiring procedure for a variety of reasons: Does the candidate understand what is expected, and can the candidate fulfill those requirements?

If they can, the parameters are now set for the employment of that individual. The business owner has an accountability standard to enforce. The employee knows the performance standard. Ground rules are established.

An example of the importance of expectations is drawn to coaching a younger soccer official. She officiated a match where the parents became unruly and derided her management of the contest. She informed them she would halt the competition if they persisted in the harassment. They continued. She relented and did not stop the match, essentially giving up control and allowing the fans to control her. The advice to her was that you must enforce the guidelines you establish or they are worthless.

Are You 3 Feet From Gold?

2011-04-21T07:23:00.000-07:00

How close are you to being successful? Have you ever given up on a business pursuit because you were frustrated with the progress?

In our search for tools and techniques to help our clients be more profitable, we discovered an inspiring book by Sharon L. Lechter and Greg S. Reid. "Three Feet from Gold" has many valuable lessons for our business we are in the process of applying. Published with The Napoleon Hill Foundation, it is one of those books every business owner should read, especially those starting a new business or those struggling to survive in these difficult economic times.

Lechter and Reid write: "The most common cause of failure is quitting."

The premise for the book stems from Napoleon Hill's earlier book, "Think and Grow Rich," in which he relates the story of an uncle of R.U. Darby. He caught the "gold fever" during this country's gold rush days. The uncle moved west, consumed by the passion to grow rich. He dug and worked hard for weeks, finally discovering the shining ore.

Excited, he realized he would need machinery to bring the golden ore to the surface. Quietly burying his discovery, he hurried back home to Williamsburg, Maryland, and told his family about his find. They were infected by his enthusiasm, gathered the funds, purchased the mining equipment and had it shipped west.

When the first car of ore was mined and shipped to a smelter, the results proved they had discovered one of the richest mines in Colorado! A few more cars of ore would clear the debt and start the profits flowing. Down went the drills. Up went the hopes of Darby and his uncle until something happened. The vein of ore disappeared!

Despite their efforts, the run appeared to be over. Frustrated, they quit. They sold the equipment to a junk dealer for a few hundred dollars and took the train back home to Maryland.

The junk dealer called in a mining engineer to look at the site and do some calculating. The engineer advised the junk dealer that Darby and his uncle had failed because they were unfamiliar with "fault lines." His calculations showed that the gold could be found just three feet from where the Darby's had quit drilling!

The junk dealer reaped millions of dollars from the abandoned gold mine. He had realized he could do better with expert advice rather than being stubborn and giving up.

How close are you to realizing your dreams of gold?

Stop: Take Time To Think Things Through

2011-04-13T08:50:00.000-07:00

One of the best pieces of advice I ever received came from the owner of the Internet services company where I was the vice president of marketing. We were all about speed. E-mails should be monitored and answered immediately. Our computers were constantly being upgraded to be faster and more powerful. T-1 pipelines were preferred over dial-up (I know, this dates me).

Frustration would set in when a glitch caused a delay in my productivity. Of course, one always thinks they can fix the problem themselves quickly, which was not always the case.

The advice when those situations arose: Stop a minute and take the time to think it through.

What's going on? Why? What are the options for solving the problem?

This mantra is now a major part of my philosophy in helping businesses with feasibility studies, business and strategic marketing plans, and implementation of their business strategies. Take the time to think things through.

In this era of instant gratification (IG), mistakes are made more frequently in the interest of speed. While the majority of these errors are not likely to be devastating, they can have extremely harmful consequences that could be avoided by slowing down a tad and taking some time to think. Is a misspelled word in an E-mail all that serious? Could a slight error in a financial projection derail a line of credit getting extended?

There's an old adage that applies here: If you don't have time to do it right the first time, when will you have time to do it over?

The point of this blog is to apply this mantra when you are starting a business or expanding an existing product line. Think it through. Then consider hiring an independent, third-party professional such as Fluidity to conduct a feasibility study. You'll discover if the idea has the potential to be profitable, where the break-even point is, and whether it's worth the investment to proceed.

Think about it. Is it better to spend a few thousand up front and discover the idea is best left as an idea, or discover it was too risky after you've invested hundreds of thousands?

Hmmm.

Marketing Red Flags

2011-03-31T18:31:00.000-07:00

As a business owner, you may wonder if your marketing efforts are working. If your advertising dollars don't seem to be bringing in the number of customers you expect, there may be a deeper cause. Susan Gunelius penned an insightful article in the April edition of Entrepreneur magazine that might prove helpful in evaluating your marketing.

In "Five Signs You Need a Marketing Makeover," she suggests these marketing red flags could be hampering your business growth:

Nothing matches
You don't know what you want
You don't know how to connect with customers
You're talking only about yourself
The competition looks better than you

Find the article at http://www.entrepreneur.com/article/219407.

Call us if you'd like Fluidity to help assess your marketing.

The Value of Knowledge

2011-02-17T18:16:00.000-08:00

What is Intellectual Capital?

Intellectual capital is about knowledge and experience. It is what makes us good at what we do.

When I was the marketing and development coordinator for the National Railroad Museum, we wanted to pave around the Hood Junction depot in an authentic manner. We chose to pave with bricks, and added the twist that allowed patrons to have a brick engraved with a personal message for a donation to the project.

Where I realized the value of intellectual capital was when the brick layers from B&B started the installation. The surface was prepared and a starting point determined. Dave (one of the B's) started the process and quickly developed a pace that was interesting to watch as bricks began to spread. Then he stopped suddenly. Dave explained that the bricks were a different size than the ones he started with. What?

Taking out his tape measure, Dave found that there were two different widths to what appeared to be similar bricks. One batch was 1/8th of an inch wider. 1/8th! He said he needed to make an adjustment in the pattern, which he did and continued installing bricks. Three workers carrying hods of bricks were unable to keep up with the two installers, and the depot was paved in less than a day. If you visit the museum in Green Bay, the bricks will look very much like they did the day they were installed.

Dave's intellectual capital came from years of experience working with bricks, and his knowledge of the product he delivered in all kinds of situations. Dave's may not seem all that valuable to most of us, but when it comes to accomplishing a brick-laying project quickly, efficiently, and cost effectively, I would place great value in his intellectual capital.

Each of us has intellectual capital. At Fluidity, our more than 40 years of intellectual capital is valuable in helping our clients understand the viability of an endeavor through research and the interpretation of that research through feasibility studies. It is in assembling business and strategic marketing plans that are customer-centric and focused on profitability, and it comes in the form of implementation assistance. We want our customers to succeed and understand how to navigate the path to get there.

How Healthy Is Your Business?

2011-02-05T08:44:00.000-08:00

Millions of people visit their doctor every year, regardless of how healthy they feel. It's a matter of knowing they're doing okay, even it they feel well. An ounce of prevention, they say, is worth a pound of cure. If something's wrong, most people want to know what it is right away so it can be addressed.

Business owners, likewise, need to know how healthy their business is. Rather than leave profitability to chance, it's important to have an assessment done every year, perhaps even quarterly. Fluidity has long known that owners of existing businesses need a check-up process, which is why we have made the comprehensive Fluidity Business Health Assessment program available.

We trust your business is doing well and turning a profit. It should be what you're in business to achieve. However, a slogan often attributed to President Ronald W. Reagan - Trust but Verify - has merit when it comes to your business. Fluidity comes in and works with you to conduct, among other things, a SWOT profile. SWOT analyzes your strengths, weaknesses (if you have any), opportunities for growth, and the threats from competition or within your business or industry.

We also have our Trusted Alliance Partners (TAP) who are business professionals in the fields of banking and investing, accounting, legal, and financial services (see the cube diagram designed to help business owners) who can verify you're doing the right thing. There's more information available at http://www.fluiditybpg.com/health_assessments.html and we've got a workshop coming up on March 2nd in Green Bay - http://www.fluiditybpg.com/business_smart.html - where you can get questions answered.

It's time for a check-up.

3 Keys to Success in 2011

2011-01-02T07:32:00.001-08:00

It has been said thousands of times, but it's a new year. The best way to enhance your chance of success in business during 2011 is to plan and to follow through on your planning.

Some say it's too much hassle to plan your business strategies, and putting a plan together is such a pain. It costs too much. Blah-blah-blah. Can you afford to not have a plan in place? Have you thought about eventually getting out of your business?

Let me get to the point, and I remember these from my days of managing chambers of commerce. A business plan was a staple for helping every member of the chamber.

There are 3 major reasons why you should create a written business plan:

By going through the process of putting a business plan together, including taking the time to think things through before beginning to write it, forces you to take an objective, critical, unemotional look at your business project in its entirety. This thinking it through process is also an excellent time to bring in professional assistance, such as Fluidity.
Your business plan - when finished (and let me qualify this by saying a plan is never "finished" per se) - is an operating tool which, if used properly, helps you manage your business and work effectively toward achieving the success you envisioned for it.
The completed business plan communicates your ideas to others (customers & employees) and provides the basis for your financing proposal.

A plan can also help you identify problems before they blow up on you. When you know the source, your plan might even suggest solutions and, who knows, maybe even prevent the problems before they are ignited.

If we can help you on your path to success and profitability in 2011, give us a call or drop an E-mail. We're here to help your business grow.

Successful New Year's Resolutions

2010-12-22T15:58:00.000-08:00

In a few days, 2011 rolls into our lives. For many of us, it means a new set of resolutions get set (or old resolutions get back on the top of the pile) ... and last until January 8th, if we're lucky. Why do we fail? Primarily because we rely on our willpower.

When I quit smoking a number of years ago, I contributed a lot of my success to willpower. As I reflect back, however, I realize there was a plan. I had done research on the health benefits of smoking - there were none. I made myself sick by getting to the point where I was smoking two packs a day ... and had to quit! I planned to quit at midnight on January 1st, and I did.

The point, I guess, is that your new year's resolutions are most likely to be achieved if you train your brain to link positive emotions to new habits and condition yourself to new behaviors. Relying on willpower is difficult because that springs from the part of your brain that is easily overwhelmed. When pursuit of that resolution bumps into an obstacle, you give in to an emotional desire for instant gratification. Then you feel bad and try again. And give up again.

An article on how to keep a resolution in the December 22nd edition of the Wall Street Journal suggests that "keeping a resolution requires a detailed plan, with emotional rewards when milestones are reached ... and even a strategy when there's a setback."

Does your business have a plan to fulfill your mission ... the reason you're in business? Have you outlined the details and established some milestones to accomplish the objectives you've always wanted to achieve? Think how rewarding it could be for you and your team to achieve a major milestone such as $1 million in sales for a month, and mark that achievement with a day spent rewarding your employees for their performance.

Imagine how loyal your employees would be if they knew there was a strategy in place for when the competition gained an edge or some unforeseen situation arose.

As an example, I was on the inside when the U.S. Junior Chamber of Commerce lost a Supreme Court decision and were ordered to admit women. The move should have been made before it went to the Supreme Court, but the point was the organization had no strategy in place for losing the decision. It wound up being poorly handled and disastrous for the organization.

A plan is essential to living up to your personal resolutions, and vital to the long-term success of your business, and it's okay to ask for help. Resolutions, like your business plan, are a fluid process requiring change and conditioning, knowledge and focus, persistence and desire.

10 Tips to Shorten the Start-Up Learning Curve

2010-12-06T19:39:00.000-08:00

When you start a business, be prepared for a steep learning curve. You will learn about finance, accounting, business law, marketing, cash flow, personnel, competition, technology, product delivery, customer service, and some topics you swear do not exist. How fast you learn determines how quickly your business turns a profit.
When I was the managing editor of a national magazine, the editor decided to take a month's vacation ... and never returned. He was someone who had to be in control and made all the decisions. I had to learn accounting practices on short notice to take over management of the publication.
Here are 10 tips to shorten the learning curve in starting your business:

Get involved - Serve on a board of directors if asked, and learn how a board is structured and how it operates.
Network - Choose a closed contact network and be visible so you can build credibility and relationships with the other business owners in the group ... check out www.bni.com.
Hire consultants - Professionals are available to help your business grow by providing expertise in areas where you can use the most help, like accounting, taxes, contract law, marketing, financing, and business strategies.
Listen & learn - Pick up some business-oriented CDs or download them and listen as you drive, while you're working out, or while you're working on your computer.
Hire smart people - They can make you look great, you can learn from them, and they can help your business grow if they're smarter than you are in some areas.
Pick some brains - Find successful business owners you'd like to learn from and take them to lunch or dinner and glean as much information from them as you can. Most are willing to share. Remember to thank them ... and reciprocate when you can.
Try trial and error - Always an option to get your education from the school of experience; although they can be painful, mistakes can be valuable teaching tools.
Listen to family and friends - While you may be too proud to take their advice, your family members ... especially your spouse (if you have one) ... and friends see your business from a different perspective than you do. That can have value.
Keep asking questions - You will continue to learn about business as long as you're in business, so keep an open mind about everything and anything that touches your world.
Pay attention to your customers - There's a reason they buy from you. It is good to know that and build relationships so they can give you the feedback essential to your growth.

Contact Fluidity for resources that are available to you when you're ready to hire consultants.

Completing the Puzzle

2010-11-12T14:17:00.000-08:00

Business owners have certain skill sets. It is rare to find one who has all the answers, even though they may or like to think they do. They may be superb at product design and manufacturing and weak at marketing. They may understand the importance of protecting their business legally with contracts, bylaws, and buy-sell agreements but lack some comprehension of debt-to-equity ratios or balance sheet evaluation.

A business owner always has the option to hire employees who have the skill sets they need and may be missing personally. If there is enough demand for contract reviews and pursuit of accounts payable, it makes sense to bring in a lawyer. If there are a plethora of shareholders and complicated financial records to maintain, it may be wise to employ an accountant. If there are hundreds of employees, the business might consider having a financial planner on to assist personnel with their retirement plans. Hiring lenders may be out of the picture, but there are companies that have established credit unions.

However, some business-related skills are best provided to owners by outside professional consultants, such as lawyers, accountants, financial representatives, and lenders. When you take the time to think through what the consulting professions offer to a business owner, and only look at those four professions, you realize something is missing.

What's missing?

The professional business planner and strategic marketing consultant.

Professional business planners comprehend the nuances of a business and the unique needs of a business owner, even if it's a franchise operation. We know when to advise you on getting a legal review of an operating agreement to avoid problems, or which accounting firm is best prepared to conduct the audit for you. We have relationships with a variety of banks, credit unions, and other funding sources (angel investors) to help you obtain the financing you need, and we also understand the importance of financial planning to ensure you achieve the objectives you have for yourself and your business.

Help is available to grow your business. All you have to do is ask for it.

Is It A Good Idea?

2010-11-04T12:40:00.000-07:00

How good is your business idea?

One of the best methods to validate your concept is with a feasibility study. Basically, a thorough, professional study answers the question of whether your idea is viable and worth pursuing as a feasible endeavor.

If your idea is for a business start-up, think how valuable it will be to know - up front - that the concept will not work. In conducting a feasibility study for a client who wanted to convert a vacant manufacturing facility into a community center at a cost of $750,000, the $10,000 cost provided valid information that suggested it may not be viable. Feasible, yes. Viable, no. The client had to make the determination, but the feasibility study wound up saving a lot of time and money ... and the potential heartache of investing 3/4 of a million dollars only to fail within a short period of time.

If your business idea is feasible, it generates adequate cash flow and profits, withstands the risks involved, remains viable over the long haul, and achieves your objectives.

A professional feasibility study:

Evaluates alternatives.;
Assesses market potential;
Analyzes risks and rewards; and,
Provides justification for a go/no go decision.

A feasibility study is not a business plan. The business plan follows the market research that says it is a viable concept and the "go" decision has been made. The plan then determines how the business is structured, developed, implemented, and managed to profitability.

Among the reasons to do a feasibility study:

Clarifies the concept;
Identifies possible alternatives;
Investigates strengths, weaknesses, threats and opportunities;
Identifies influential factors for proceeding;
Enhances the probability of success;
Provides quality information to aid decision making;
Provides business viability documentation; and,
Assists in securing investors or outside funding.

A feasibility study is simply a good business practice. Study successful businesses and you will find they dipped their toes in the pool before diving in.

Business Should Be Fun!

2010-10-20T20:02:00.000-07:00

A business plan is a serious matter.

A business plan, however, is also a tool that enables you to enjoy life. You should have fun while growing your business. If you are all about work and never play, you might wind up at the end wondering if it was all worth it. You may even question that now!

To borrow a friend's (Jay Van Z.) saying, you don't find too many souls at the pearly gates wishing they would have spent more time at work.

Business planning can be stuffy, stiff, and formal ... if you let it. When we did our annual strategic planning for the U.S. Junior Chamber of Commerce, the key staff officers went on retreat to a resort near the Oklahoma headquarters. Some of the day was spent planning. The majority of time was spent participating in fun, team-building activities that facilitated a cohesion, added a light atmosphere to the discussions, built camaraderie, and resulted in a powerful operating plan for the coming year. By making planning fun, everyone bought in, and the relationships forged in the process enabled a cooperative, professional working environment that was extremely productive. The team regularly achieved all of the goals established for they year at that session!

You can make planning fun. Richard Branson writes about the importance of not taking yourself too seriously in this article from Entrepreneuer you might want to read - http://www.entrepreneur.com/article/217440?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+entrepreneur%2Flatest+%28Entrepreneur+Latest+Updates%29&utm_content=Google+Reader. Everyone wants to enjoy life ... or at least most of the people I know. There are exceptions. Smile! Laugh. Take time for yourself. Enjoy life and the people you care about.

Planning for your business is about your passion. The plan shares your vision with your employees and your customers. It outlines strategies and tactics to follow that mission and enables you - and everyone else - to have fun enjoying what you do.

Our goal is to help you grow your business and have fun in the process.

Small Businesses Drive Our Economy!

2010-10-11T08:29:00.001-07:00

Small businesses are the engine that drives our nation's economy. The U.S. Small Business Administration (SBA) reports that small businesses represent 99.7% of all employer firms. All firms! Those businesses employ more than 1/2 of all private-sector employees and pay 44% of the total private payroll in the United States.
Why are small businesses the engine? During the past 15 years, according to the SBA, those small businesses have generated 64% of the net new jobs created. They create more than 1/2 of the non-farm private gross domestic product and hire about 40% of high-tech workers such as scientists, engineers, and computer programmers.
A whopping 52% of those small businesses are home-based and 2% are franchise operations. Do those businesses remain home-based? In some cases, yes. In other cases, they grow and expand to become large and succesful.
Ron Weyers and Wally Hilliard started their insurance business in the basement of Ron's home. I wrote (p. 176) in Masters of Success (http://www.amazon.com/Masters-Success-Techniques-Achieving-Business/dp/1932156798) about how they grew that fledgling business into one they sold to a larger firm. They used that capital to start American Medical Security in Green Bay and by 1994 when the Wisconsin firm had more than 2,000 employees, Inc. magazine dubbed it the 21st fastest growing company in the United States.
Stories such as Ron's and Wally's abound in virtually every community. Patrick Deprey started Skyline Technologies (http://www.skylinetechnologies.com/Pages/Default.aspx) in his home on Skyline Boulevard in Green Bay.
As Andrea Kay pointed out in her column in the October 11th edition of the Green Bay Press-Gazette (http://www.greenbaypressgazette.com/article/20101011/GPG0703/10110474/1247/GPG03/Andrea-Kay-column--There-s-work-where-needs-need-filling), "maybe it's time to do what you've always talked about: Start your own business."
Fluidity can help you navigate the swirling waters of launching that venture.

Banks Have Money To Lend!

2010-09-29T12:50:00.000-07:00

In case you've been asleep the past couple of years, major changes have happened in the banking industry. Big names, like Merrill Lynch and Wachovia, were rolled into Bank of America and Wells Fargo, respectively. Citigroup became tied to the federal government. Some small regional banks still exhibit some signs of weakness, and more changes lie ahead as the banking industry battles government regulations.

Today Bank of America and Wells Fargo report $3.1 billion in earnings and Citigroup $2.7 billion, up significantly in the 2nd quarter of 2010 compared to the same period in 2009, according to a September 15th USA Today article in the Money section.

The problem for business owners, we've found, is that bank loan volumes are down, close to 15 million workers remain jobless, and the perception is that banks are very tight about loaning money. They appear to be continuing to stockpile their excess reserves rather than lend it. Paul Ashworth, senior US economist with Capital Economics, reported current bank reserves are $1.03 trillion, up $171.7 billion in the past year.

Ashworth wrote: "...banks could make new loans worth roughly $3.5 trillion..." but "...are very cautious about increasing the supply of their new loans."

On the positive side, banks are reporting that, for the first time since 2006, they are "making more credit available to small businesses."

What fails to be reported is that banks are more strictly regulated. In most cases, they are required to have a comprehensive business plan from a potential loan applicant before they can consider that commercial loan. Many banks are avoiding start-up businesses, leaving budding entrepreneurs to fend for themselves. The focus is on helping existing business owners expand their operation or add new product lines.

Banks want to lend money and help get our economy moving again, so it is vital that business owners bring in professional business planners to review and update existing business plans or create a new, market-based and viable operating plan to obtain funding.

Halloween may be getting closer, but the business planning process and securing financing is far from scary with professional assistance from a firm such as Fluidity Business Planning Group.

Business Plan Basics

2010-09-21T11:15:00.001-07:00

When you take time to think about a plan for your business, you realize there are three main reasons to have one:

To launch a new business;
To manage and grow an existing business; and,
To value and pass on or sell your business.

These are the basic reasons, and each is obviously more involved than creating a document that sits in a forgotten file somewhere in the office. A business plan is a valuable tool in creating and operating a profitable commercial enterprise.

It starts when you have an idea for a product or service you believe people need and will want to purchase. You plan to deliver a quality product or service at a fair and reasonable cost in the most economical way to generate profits. Basic business. Employing professionals helps you with considerations you may have missed, such as sales tax issues if you do business in several states, licensing and permit requirements, or the logistics of delivering your product to market.

Your start-up business plan can also be of value when you need start-up capital and approach a bank, credit union, or other lending institution.

A viable business plan then helps you continue to make adjustments as the business begins to grow, such as adding personnel, expanding an existing location, or finding a new supplier for raw materials. It also indicates you have a game plan and are following it, which is critical when it comes to bank loan reviews or the need for additional financing.

A business plan is constantly changing. Need products require more thought and planning. Changing services should be planned to enhance your customer relationship while minimizing costs. Your plan is part management tool, part fluid process - both with a focus on growing your business.

And, at some point, you may consider selling your business. If you have credible market research, reliable forecasts and accurate financial records, the potential buyers can pick up where you have the business and take it from there.

Management Drives Growth Potential

2010-09-09T13:21:00.000-07:00

It is hard to identify a "growth" industry in America today. Perhaps in providing more band width, but even with the innovations that Apple has brought to the technology market, the tech industry has reached what some might consider a saturation point. Theodore Levitt once wrote that he didn't believe there was such a thing as a growth industry. He felt there were only companies organized and operated to create and capitalize on growth opportunities.

Levitt identified four conditions that usually guarantee a cycle of "bountiful expansion and undetected decay:"

Belief that growth is assured by an expanding and ever more affluent population;
Belief that there is no competitive substitute for the industry's major product;
Too much faith in mass production and the advantages of rapidly declining unit costs as output rises; and,
Preoccupation with a product that lends itself to carefully controlled scientific experimentation, improvement, and manufacturing cost reduction.

In every case Levitt studied, the reason growth was threatened, slowed, or stopped was not because the market was saturated. It was due to a failure of management!

Opportunities exist today. It is managerial imaginativeness and audacity that will make the right people great. Steve Jobs and his ingenuity with the iPad, iPhone, iTunes, and everything else Apple is doing has transformed the way we communicate and get information.

What we need in this country is the will of companies to survive and, more than that, to satisfy the public with their inventiveness and skill. To survive, the growth companies will have to plot the obsolescence of what now produces their livelihood.

Make sense?

Levitt's comments and advice are 50 years old! His article on "Marketing Myopia" appeared in the July/August 1960 edition of the Harvard Business Review.

It's Time For Business Rock Stars

2010-09-05T20:24:00.000-07:00

Small companies have provided as much as two-thirds (2/3) of all the new jobs in our economy. It's been that way for a long time. Free enterprise is ingrained in our society. In today's economic environment, however, fewer small companies are starting. That is keeping our economy from pulling out of its tail spin.

Our country needs entrepreneurs to step up, develop a business plan (which is where we come in), obtain financing, and get our economy moving in the right direction again ... despite what the government is doing to help. Waiting for the government to help is like watching molasses flow.

Entrepreneurs can once again become folk heroes, or rock stars in today's lingo.

The attractions of the enterprenerial life are many, according to an article in Forbes by Thomas P. Murphy:

Independence
Money
Respect
and that greatest of human satisfactions, doing it your own way.

Why aren't more people doing it?

Starting a business comes with hazards, such as the current belief that banks are not giving out business loans, which is not true. They are more heavily regulated and must have a business plan to consider your loan application.

On the down side, entrepreneurs can go bankupt, according to Murphy. That has nothing to do with Murphy's Law. They can wreck their health, their marriage, and their reputation.

On the up side, if there is one distinguishing feature among entepreneurs it is their energy level and capacity and willingness to work hard. Age is less a factor in today's high tech world. Steven Jobs was 22 when he founded Apple Computer.

The best time to become an entrepreneur is when you want to become one!

The key motivator, according to Murphy, is not about making money. Money is the way the score is kept, not the game. Entrepreneurs tend to be egocentric and driven people. They are hard to love and hard to live with. What they really ask from the world is respect. They are the backbone of a nation's economy.

Are you ready to be an entrepreneur?

Sam's Top 10 Rules for Business Success

2010-08-13T06:27:00.000-07:00

The name is familiar. Sam Walton has part of his name across a business - Wal-Mart - that has come to define the economic environment in the United States since 1954.

The strategies Sam suggests in his autobiography are critical points that can, and should, be incorporated into your business plan, which is where Fluidity can help.

Sam's top 10 tips to help any business owner:

1) Commit to your business. Your passion needs to shine through and spread. It's a basic element of your business plan.

2) Share your profits with all your associates. Treat them as partners.

3) Motivate your partners. Think of new ways every day to help them stay motivated. Your approach to marketing is a vital step in serving your customers.

4) Communicate everything you can to your partners. Information is power. Often the competitor you dread the most comes from within.

5) Appreciate everything your associates do for your business. They are the front line for interacting with your customers. Even though they appreciate their paycheck, a pat on the back goes further than a kick in the pants. That's our view.

6) Celebrate your successes. Have fun. Show some enthusiasm. If you reach a milestone in your plan or marketing endeavors, celebrate!

7) Listen to everyone in your company. It's more than hearing, it's understanding.

8) Exceed your customer's expectations. They expect excellence, so go beyond.

9) Control your expenses better than your competition. Do you know who your competition is, or how they're doing? If you follow suit and their ship is sinking, where will you be?

10) Swim upstream. Find your niche by trying a different direction than everyone else is going. The flow of business may be headed into a cesspool.

Marketing: For Your Customers

2010-08-09T21:13:00.000-07:00

First, remove the thought that marketing is selling your product. Theodore Levitt wrote a 1960 article for the Harvard Business Review that outlined the difference between selling and marketing. In his Marketing Myopia piece, Levitt wrote, "The difference between marketing and selling is more than semantic. Selling focuses on the needs of the seller, marketing on the needs of the buyer. Selling is preoccupied with the seller's need to convert his product into cash; marketing with satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering, and finally consuming it."

Second, the business plan and a strategic marketing plan are synonymous. Levitt went on to write, "A truly marketing-minded firm strives to create value-satisfying goods and services that consumers will want to buy. What it offers for sale includes not only the generic product or service, but how it is made available to the customer, in what form, when, under what conditions, and at what terms of trade. Most important, what it offers for sale is determined by the buyer. You take your cues from the buyer in such a way that the product becomes a consequence of the marketing effort, not vice versa."

Third, building an effective customer-oriented company involves far more than good intentions or promotional tricks; it involves profound matters of human organization and leadership. A solid, workable plan for the business is paramount. It is fostered by a leader with a vision of grandeur, a vision that can produce eager followers in vast numbers. The chief executive sets the company's style, its direction, and its goals, which are inherent in the company's plans for serving the needs of its customers.

Levitt added, those followers are customers, so the entire business must be viewed as a customer-creating and customer-satisfying organism. The business must think of itself as doing the things that will make people want to do business with it.

It's more than mere survival in this economic climate. As Levitt so eloquently wrote, "The trick is to survive gallantly, to feel the surging pulse of commercial mastery; not just to experience the sweet smell of success, but to have the visceral feel of enterpreneurial greatness."

48 Of Every 100 Businesses That Go Down Are Profitable!

2010-07-21T20:16:00.000-07:00

It's common knowledge that the survival rate for new businesses is that if you start 100 new businesses today, only 20 of them will still be in business five years from now. Recent surveys have shown that the other 80 will have gone out of business sometime during that time frame.

What isn't as well known, however, is that 48 (60%) of those 80 new businesses that failed were profitable when they went down!

How can that be?

It is easier to understand when you consider the impact of "payment terms." Payment terms measure the number of days between the time a service is provided and the time payment is actually made.

What are the average "effective" payment terms in a typical small business?

Cash in from Customers averages 45 to 60 days

Cash out for Rent - in advance & for Employees - 7 to 14 days (Federal law) & for Vendors & Suppliers - 15 to 30 days.

The timing gap between the terms on money coming into the business is quite different from money going out of the business. If you combine that with rapidly increasing sales, you can see how a profitable business failed to survive because it simply ran out of cash. Other bills were payable before revenues came in and a lack of working capital failed to bridge the gap.

However, they didn't fail simply because they ran out of money. According to the research, the cash shortfall was just a symptom of the real problem.

The underlying problem was that they didn't have the management information they needed to successfully manage a dynamic business. In other words, they failed to maintain bookkeeping and accounting systems to provide them with critical management information -- such as how much they had in the bank, which customers owed them and when it was due, which suppliers they owed and when it was due, etc. -- the type of information required on a day-to-day basis to successfully manage a business in a changing business environment!

Fluidity Business Planning Group can work with your bookkeeper and accountant on your behalf to help you manage this critical and vital information to achieve and preserve your profitability. We can recommend professionals to assist you or you can search www.smallbizaccountants.com for help.

Commercial Loan Basics

2010-07-06T18:01:00.000-07:00

Commercial Loan Basics: Developing a Business Plan

One of the first things a loan officer likes to see when making a commercial loan is a business plan. Why? It’s a “blueprint” for business success!

Imagine you are ready to build your dream home. Would you tell the contractor to “build me my dream home” and hope that his idea of a “dream home” is the same as yours? What if you’re thinking of a spacious rambler, with 5 bedrooms, a huge great room, game room, indoor/outdoor pool, 3 baths, a Jacuzzi, huge windows and a walk-out basement sitting on a knoll overlooking Cache Valley whereas his vision is a 3 bedroom multi-level sitting on 5 acres right next to a dairy farm (with the accompanying “fresh” air)? How can you ensure that the contractor actually builds your vision of a dream home? By using a blueprint and adequate planning.

You will meet with an architect, explain what features you want and he will draw up a blue print. After several meetings with the architect the blue print will undergo many changes. (You want a bigger walk-in closet, larger bedrooms but a smaller living room, stairs centrally located rather than on one end of the house, etc.) Finally, when you are satisfied with the plans you will hire a contractor to construct the home and if you hire a good one you can expect that the finished product will actually be your “dream home”.

Businesses also need a blue print, a business plan, if they want to succeed. Before starting a business the entrepreneur needs to ask him or herself questions such as:
· What service or product does my business provide and what needs does it fill?
· Who are the potential customers for my product or service and why will they purchase it from me?
· How will I reach my potential customers?
· Where will I get the financial resources to start my business?

Keeping these questions in mind the entrepreneur should then prepare the plan being sure to address the following:

The Business – Description of the product(s) or service, marketing, competition, operating procedures, key personnel, business insurance, etc. (Keep in mind that a successful business needs expertise in marketing, finance, accounting, and personnel management, as well as the ability to provide a valuable product or service.)

Financial Data– Loan application, equipment and inventory list, balance sheet, profit and loss statements, income projections, cash flow projections, assumptions upon which projections were based, break-even analysis, etc.

Supporting Documents – Three years personal tax returns for all principal owners, personal financial statement(s), copy of proposed lease for place of business, copies of professional and business licenses and other legal documents, resumes on all principals, notice of intent from suppliers (of inventory and equipment being acquired to start business), for franchise operations – a copy of the franchise agreement and disclosure.

The business entrepreneur may say “Wow, that’s a lot of information!” and he would be absolutely correct! However, just as he would want to plan construction of his “dream home” with minute detail, he should plan for business success with great detail because better, more complete, information generally makes for better decisions which, in turn, breed success. “So,” the entrepreneur asks, “what if I don’t prepare a plan?” The results are best described by the title of a book by David P. Campbell, “If You Don’t Know Where You’re Going, You’ll Probably End Up Somewhere Else”.

Established Resource for Regional Banks

2010-07-04T07:28:00.000-07:00

Fluidity Business Planning Group LLC leverages relationships with North Shore Bank and expands to other Financial Institutions. Associated Bank and US Bank express interest!

MEDIA ADVISORY – IMMEDIATE RELEASE

2010-07-04T07:14:00.000-07:00

June 30, 2010
CONTACT: David Rovinski (920) 562-3456 or Terry Misfeldt (920) 366-6334

Business Planning Group to Headquarter Operations in Green Bay, WI
In today’s economic environment, business owners looking for financing need to meet the more stringent requirements of financial institutions, meaning a comprehensive business plan with accurate cash flow projections. David A. Rovinski and Terry C. Misfeldt of Green Bay have created Fluidity Business Planning Group LLC to assist lending institutions in Wisconsin, Illinois, Michigan, Indiana and Minnesota by helping business owners develop effective business plans with customer-focused marketing strategies, and assistance in the implementation of business strategies to obtain funding.
“Fluidity offers a vital, helpful service that leverages our intellectual capital to provide business owners with a competitive advantage and ensure their profitability through our unique approach to business planning, marketing, and implementation strategies,” said Rovinski, formerly of TMC Business Connections LLC. “Using a solid software platform such as the globally recognized and accredited Business Plan Pro business planning program by Palo Alto Software and coupling it with current, credible market data from the world’s leading supplier of business research information, Hoover’s and First Research divisions of Dun & Bradstreet, in addition to our global networking connections, Fluidity works with the business owner to prepare viable plans that support the growth of their business,” he added, “and Fluidity then works with business owners on an on-going basis to execute and control their efforts to achieve profitability. Banks appreciate that we are there to help.”
As professionals in business strategy and implementation, Rovinski and Misfeldt bring more than 40 years of combined experience to Fluidity, with proven track records of success across a variety of disciplines. Misfeldt brings more than 20 years of consulting experience in marketing and business development from his involvement with Simply…Success, as a director for BNI, and as a Chamber of Commerce executive. Rovinski brings more than 20 years of work experience with small to Fortune 500 companies in strategic planning and product management.
A recent article by Tim Berry, founder of Palo Alto Software’s Business Plan Pro program, at entrepreneur.com stated: “Whether you’re just starting out, growing your business, or seeking outside help, a well thought out business plan is the vehicle you need to get there.”

Coming Soon!

2010-07-01T17:40:00.000-07:00

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