March 2023 - Page 3 of 13 - BOLLYWOOD SURKHIYAN

How to Write a Small Business Plan

The first thing to do when starting a small business is to write a plan for your business, it is very essential and useful if you really want to focus yourself and get a whole picture of what you have to do in order to build your enterprise. A business plan is the road map for the success of your business

What do you have to offer?

What are your products or what are your intended products? What are your products or services? What kind of income will these activities be generating or what is the expected range of income once the products are launched? Give answers to these questions giving a complete picture of the principal activity that you are engaged in or will be engaged in during the timeline of your business plan.

Where are you located?

Do you work from home or do you have a business premises? If you have a business location such as a store or factory, then explain about the size and capacity of this establishment. What is the business climate like in your area? Are there significant competitors and what are your prospects or advantages of competing in this market? Find answers to all these questions as best you can and give yourself and would-be investors a clear picture of where your business is situated geographically and with relation to your overall market.

How to make it happen?

Your sales and marketing research or plan should be outlined in this section. Explain how you intend to establish your product or service and what steps you will take to create or expand your customer base. How will you fund the start-up cost and the expansion of your business? Explain the source of your funds whether you have existing loans, your savings, borrowing from friends or liabilities. How much money do you need to raise in order to get realize your entire plan for the launching or expansion of your business? Explain how you are going to put your business idea into practice.

Having a good business plan is your key to success. A well-thought-out business plan forces you to think about the future and the challenges you will be facing. As long as your forecasts are realistic and you have done plenty of market research you will definitely come out with a good result. Go ahead with your plan and stick to it.

To your success!

Techniques For Entrepreneurship Development

There is a certain way to carry out entrepreneurship. One has to follow certain fixed guidelines to develop an entrepreneurship of any choice. Designing a clear cut plan is necessary. Following are seven guidelines or techniques on the basis of which any entrepreneurship or business can be developed;

1. Focusing on the key product:

Your business revolves on the key product so focusing on your core product is the first step to create a business opportunity. A certain successful entrepreneur has stated that “Prospects buy when they trust your value is applicable to them and believe your company is stable” suggesting that an entrepreneur should focus on providing value to the customers. This suggestion is the key to the core plan. An entrepreneur of small business needs to differentiate from big business by concentrating on the core products. Specialization is the biggest asset of entrepreneurs.

2. Keeping it simple and short:

One should be able to tell what their business is in few precise and concise words(I.e the patter or pitch) lasting for 30 seconds since any prospect can understand clearly about the business without being confused.

3. Staying true to who you are:

You can reach your goals by knowing who you are and what gets you excited and not. Notably procrastination as human nature is can delay your growth plan so it’s better to not procrastinate and go for a perfect result oriented plan

4. Mapping it:

The best way to determine your service strategy is by mapping your capabilities with your target clients’ needs. Hence the customers who do not need your particular expertise are also avoided. The urge to cast a wide net is one common trait among many entrepreneurs. However a small business flourishes since it has limited service offering. Specializing in distinctive top quality service is the value in having a small business. So in many instances, a small business flourishes. Significantly, while choosing a provider, a list of decision making criteria can be made, from which, your client can choose as per your expectation. Then categorize yourself honestly or evaluate intensely as to where you would be position in each category. After this, make sure that your patter or pitch is still on target.

5. Utilizing the best marketing tools that work for you:

Implement the best marketing strategy that suits your personality and that of customers to be served. Identify the top two marketing tools that have worked for you in the past and then start adding new ideas from a fresh perspective. It’s also important to evaluate the selected marketing tools from cost basis. You have to take a decision as to which marketing tool will yield the best returns on your efforts. In one or another each tool should be result oriented or revenue productive.

6. Implementing a plan of action:

It’s essential to know whether the plan of action made is in progress or not. This can be done by establishing goals at short term say 3 months to long term of 6 months. During short term, you need to check your plan every month. If the plan is not being met you need to ask questions to yourself like did I select the appropriate tools for my target customer? Did I integrate the strategy into the plan? Or did I focus on only one of the marketing tool? Thus there should be a strategy check on a day to day basis so as to know if the plan is in progress as per your plan.

7. Exercising the plan:

The final step is to complete the daily actions and to put n extra efforts to accelerate your plan towards success. Precious time should be not wasted and used for reaching your goal soon.

These are the basic most important techniques for Entrepreneurship development.

Thanks

What Is a Biblical Entrepreneur?

Psalm 127:1

” {A Song of degrees for Solomon.} Except the LORD build the house, they labour in vain that build it: except the LORD keep the city, the watchman waketh but in vain.”.

Commentary

They labor in vain that build it – literally, “In vain toil its builders in it.” The idea is, that they are entirely dependent on God. No matter what their skill, their strength, their industry may be – all will be in vain unless God shall assist them. They are dependent on Him for life, for health, for strength, for practical wisdom, for a disposition to continue their work, and for success in it.

Notes on the Bible by Albert Barnes [1834].

MODULAR 1: What is a Biblical Entrepreneur?

Whether you are an inspiring entrepreneur or a CEO of a major corporation, the Bible

is the ultimate source for valuable, pertinent advice and guidance; it provides you with the keys to your future successes. Jesus used scriptures by quoting passages as He taught. He used Isaiah’s prophecies to bring to disruption the Pharisees’ false piety (Mark 7:6-13). In Luke 24:25-27 he explained that the things concerning Himself had been written by Moses and the prophets. Most notability, when being tempted by the devil, Jesus used scriptures, (Matthew 4:4 – KJV), “But he answered and said, It is written, Man shall not live by bread alone, but by every word that proceedeth out of the mouth of God”. Also, read Matthew 4:7 and Matthew 4:10.

So, what is a Biblical Entrepreneur, (also in some circles the term Christian Entrepreneur is used. To fully understanding the meaning (and heart) of a Biblical Entrepreneur, you must understand how the world God views business and entrepreneurship.

In college I studied business on several levels, both undergrad and graduate programs. Both taught (by definition) that an entrepreneur’s main concern is the generation and accumulation of wealth for shareholders and stakeholders. The success of the business is determined by that end goal. Everything about the business from the customer to the employees, finances, product, marketing, and management team worked to reach the goal to accumulate wealth (grow the business).

Although, making money is a key objective for all business ( no profit, no business), the focus of a “Biblical Entrepreneur” (by definition) is someone (a Christian) who uses their talents, treasures, and time to operate a business, in which God has place them as a steward, in a manner that will bring Him glory, as well as be a blessing to his or her community, nation, and world.

Why is this distension important? As a Biblical Entrepreneur you will have many ups and downs. Knowing the “why” you are in business will give you the strength, courage, and tanistry to face the hard times. Knowing the “why” is the start of building a successful business based on the Kingdom Principles.

Foundational Question(s).

1. Do you pray (daily) for God to guide you in every part of being a “Biblical Entrepreneur”?

2. Do you invite God to your Board Room Meetings? (Even if you are the only person in the Board Room)?

3. How will your business glorify God? (More on this in later chapters).

Vocabulary

Biblical Entrepreneur: Someone (a Christian) who uses their talents, treasures, and time to operate a business, in which God has place them as a steward, in a manner that will bring Him glory, as well as be a blessing to his or her community, nation, and world.

Business Playbook: A Playbook provides a clear and measurable “audit path” for

accountability.

Business Plan: A document setting out a business’s future objectives and strategies for achieving them.

Kingdom Business Plan: A kingdom business is an enterprise directed by the Holy Spirit and managed by a godly leader that uses its time, talent, and money to meet the spiritual and/or physical needs of the community around them to advance God’s purpose.

Shareholders: A person who owns shares in a company. Someone who owns stock in Apple is an example of a shareholder.

Stakeholders: A person, group or organization that has interest or concern in an organization. Stakeholders can affect or be affected by the organization’s actions, objectives and policies. Some examples of key stakeholders are creditors, directors, employees, government (and its agencies), owners (shareholders), suppliers, unions, and the community from which the business draws its resources.

3 Indispensable Things to Know When Starting a Business

I’ve been speaking to people, and I don’t know if it’s because we’re in the first quarter of a new year or if there’s more confidence in the economy, but I’ve realized that many more people are looking to start their own businesses. As a business owner and social entrepreneur, I think that’s a great thing.

I’m often asked about my thoughts about starting a new venture, and candidly, I love the adrenaline rush, vision driving and strategy development of a new business opportunity. If you’ve been thinking about beginning a new company, there’s no time like the present to start to get yourself into the entrepreneurial mindset to consider if it makes sense for you.

If I were speaking to someone right now starting off as a new business owner for the first time, there are three essential things I would suggest they keep in mind:

Do You Really Want to Be an Entrepreneur?

The first question is the toughest, but you’ve got to sit with it for a while. I’ve spoken to many people along the way who have started a business, and then have fallen flat on their face and returned to the safe embrace of a 9 to 5 job. Being a business owner is not as “glamorous” as it may appear.

Sure, you’ll have a flexible schedule (on occasion) and are the final decision maker on large and small decisions, but being an entrepreneur is not for everyone. The truth is you will never work as hard as you do than when you’re a business owner, particularly in the early years. Twelve hour plus days, including weekends, is not uncommon.

Being a business owner means it’s all on you. You may have other people working with you. You may be one of those leaders who allows his team of professionals to be the professionals they are, but as an entrepreneur, your responsibility is to understand every area of your business: sales, marketing, legal, finance and accounting, administrative, marketing, research and development, product development, etc. It takes a great deal of time to know all areas of your business and make sure they are working correctly. It’s an endless process.

Do You Really Want to go into Business with Your Friends and Family?

Many times, particularly with small businesses, you’ll have friends or family members decide to go into business together. It makes sense to want to go into business with people you know and trust, but do you want to do that? If there is anything that comes up your relationships can be affected.

A great scenario is this one: you’re working 12 hour days and doing great in your areas of responsibility. Your business partner, and good buddy, perhaps is not as hard working and as disciplined as you are and so resentment begins to build. That’s a recipe for conflict and the likelihood that your business will survive with internal friction exponentially decreases with the increase in tension.

Another possibility is that you don’t go into business with any friend or family as your partner, but perhaps you decide to hire that same good buddy to be one of your first employees because you trust him. Again, what happens if he’s not putting in the hours or work that you think is essential for business success? There have been countless examples of business owners who partnered or hired friends or family only to be in a situation where the business has suffered (as well as the relationship) because of anything from work styles to fraud. It’s very tough to separate your business from your relationships without potentially ruining them.

Decide if You’re the Cupcake Baker or the Business Owner

Many people have a passion for something in their lives, and that’s great. Perhaps they love making cupcakes, or they love music and want to sell instruments. Whatever is your passion or interest, if you have one, you will not be only doing that work. As the business owner, the most crucial part of your business is a vision, sales, etc. and the path the company as laid out in your business plan.

If you love painting and you decide to open up a paint shop, you will not be spending your day painting. You will spend your day selling paint, dealing with customers and managing the books. Same goes for cupcakes or even widgets. The business owner that wants to grow his or her company is not going to be baking cupcakes exclusively but also running the business.

If you’re looking to grow, you’ve got to focus on the total “business.” As a business owner, the cupcake making, painting, music or widget making will be only one element, but it’s certainly not the “business.” The business is the promotion of your product, the price point, finances, customers, cash register, accounts receivables and payables, and payroll, etc.

In conclusion, don’t get me wrong. For me, I wouldn’t change anything in the world for my life as an entrepreneur. I love being a business owner and digging into all elements of my companies and brands. It’s invigorating, exciting and no day is the same. Any business owner will tell you, however, that the points mentioned earlier are essential for seeing if the entrepreneurial path is genuinely what you want.

Business Plans – Your Roadway To Success

Experts say that a strong business plan is one sure step in the direction of success. So, what is a business plan in the first place? It is defined as a document that outlines the functional and financial objectives of a business. It also contains details of the budget involved and the goals to be achieved.

Everything on earth is tending to become compact. Gone are those days when a sea beach was described in a thousand words. Today, a similar description is possible with a powerful visual and a string of strong adjectives in only a few words. A mobile phone today is slightly bigger than your thumb. Similarly, a business plan is no longer a document of a hundred pages. Nobody wants to know your business. They want to know your views, your goals, your objectives and your plan of action.

How Well Can A Business Plan Be Implemented?

o Simplicity of a business plan – is it understood by one and all? Are its views and objectives clear?

o Specificity of a business plan – are the contents measurable? Are all the activities dated (initiation to completion)? Are all the actions distributed among personnel clearly?

o Real nature of a business plan – are the objectives and targets real? Are the goals set within a specified time achievable?

o Totality of a business plan – is the plan complete? Does it have all the necessary elements to outline your business goals?

A business plan has multiple uses. It can be used to start a new business enterprise, take a loan or to find good investors. There are many other reasons for which you need a business plan. You should first find out why you need a business plan.

Why Do You Need A Business Plan?

o Outline objectives and set goals to achieve them

o Prepare regular business review outlines

o Start a new business enterprise

o Decide on a value on a business for sale and legal issues

o Outline agreements between business partners

If business plans are conceived for different purposes, there must be different business plans for different kinds of ventures. Business plans are also known as growth plans, internal plans, investment plans and so on and so forth.

If your business plan is for internal study and revision, there is no need of background details of your organization because you are already aware of them. You need to add that only if your business plans are meant for banks and other institutions.

What Are The Different Types Of Business Plans?

– The most basic of business plans are the start-up plans that clearly outline the steps for a new business venture. They include details of service provided or product offered, market value of the same, implementation strategies, market and financial analysis. The basic structure consists of a summary of the company, ending with details of financial transactions and expectations for the first year.

– An operational business plan contains details of dates, deadlines and milestones. It is often referred to as an internal business plan.

– A strategic business plan aims at higher levels of target and does not deal much with dates and deadlines. This business plan is more of future and growth oriented and focuses less on facts of the company.

– A growth or expansion business plan focuses more on one or more subset of the business. There are variations of this kind of business plan. If it is meant for a new investment, it will obviously include the background of the company.

– A feasibility business plan is your entire business in bulleted form. It includes the summary, the mission and the vision of the company, the USP of the business enterprise, expected financial outcomes etc. The main purpose of this business plan is to test whether this business is worth a venture at all.

The Seven Points Of Business Plans

Business plans usually cover the following 7 points. Of course, they will vary in detail, depending on the purpose of the business plan.

– Mission Statement – your business plan must explain clearly why you want to start a particular kind of business in the first place. It doesn’t have to be long, but it needs to convey the message clearly.

– Business Description – this is the place where you talk about your business. What is it that you are trying to sell or provide? What is the USP of your business?

– Goals in view – here, you describe both your short term and long term goals. Short term goals may include your plan to acquire office space, provide a proper business name, apply for a business license etc. Long term goals include answers to where you see your business ten years down the line, opening new stores etc.

– Prospective Customers – who is your target audience? Why will they need your service or product? How well do you understand their needs?

– Competition Analysis – this helps you rank your business venture in the market. Who are your competitors? If their focus area is too competitive, try for a niche market that is comparatively less competitive.

– Financial Considerations – be realistic and optimistic about your finances. Make sure to spend only that much with which you are sure to receive returns. Or else, go in for a small business loan till your business can take care of its own expenses.

– Marketing – sell your ideas before you sell your products. Advertise your products everywhere you can think of. Don’t miss out on both offline and online publicity. If you get a chance, exhibit your product or service at local communities and organizations.

Do’s And Don’ts Of Business Plans

Your business plan should:

a) Set concrete goals and deadlines

b) Distribute work among people and departments and set deadlines to achieve the goals

c) Maintain a steady ratio of implementation to strategy to 10:1

d) Provide a platform for regular review and discussion

Your business plan should not:

a) Display your knowledge about your field of expertise

b) Be too lengthy – people lose interest easily

Not all businessmen and women are good planners. It has often been seen that a business fails because of the lack of a good business plan. That is one of the cardinal mistakes for an entrepreneur.

Business Plan Mistakes

Experts have identified some common mistakes regarding business plans. They are:

– No business plan – many business ventures begin without any plan. Plans are written out in a rush only if the clients or banks or investors ask for the same. It is often seen as unnecessary because the business is more important. Imagine the condition of a house without a plan. You will get lost midway in heaps of concrete and steel. Similarly, you will get lost in ideas and desire to implement them.

– Cash is more important than profits – business is not the same as profits. Cash is the main player. Only if you have cash to spend in the beginning, will you get profits at the end of the day.

– Ideas don’t sell – your business sells because of hard work, perseverance, cash and a lot of common sense. Your idea does not have to brand new. Old wine is better than new ones. Why? People trust age and experience.

– Fear factor – a business plan is as necessary and as routine as making a travel plan. You don’t need to be Einstein to chalk out a business plan. You just need to think straight and pen your thoughts.

– Specificity wins – focus on tangible results, instead of trying to be the best. Results matter and they tell you everything.

– Fit all business plans – your business plan should work for bankers and investors as well as internal review and corrections. Don’t make individual business plans for individual purposes. Rather, concentrate on your business.

– Everything cannot be important – you can have only a few priorities. 20 priorities are vague and they clearly show lack of strategy and of goals.

A business plan is the first step of starting a business. It is neither easy nor difficult. What is a business plan about? How do you implement a business plan? What do you include in a business plan? What are the ‘must have’s’ and ‘have not’s’ of business plans?

Whether it is travel, study, cooking or any other activity involving a process, planning is usually the first step. The same holds true for business. Business plans are probably more important than the business itself. For example, the plan for a house is more important than the house itself, though it is the house that people remember and not the plan. But the house wouldn’t stand without the plan, would it?

Entrepreneurship and Project Management – The Missing Link

There has been a great deal of emphasis on entrepreneurship and the need for more and more entrepreneurs in the region to help create jobs for the future of the region. There is also a lot of enthusiasm and encouragement for new entrepreneurs – but are we forgetting something? It is great to have the “spirit” but is spirit enough? Do our prospective entrepreneurs know how to take their dreams from the idea into effective operation? Is business planning over emphasized or is it enough? This article will offer an opinion and try to answer these questions and offer a suggestion on what is missing. It is the author’s opinion that Project Management is the missing link that could make the crucial difference between success, challenge, and even failure.

The Need for Entrepreneurs

Various sources and global studies show that small & medium organizations/enterprises (SMO/SME) have huge contributions to economies around the world in term of gross national product and employment. Studies in the Middle East show that SME contributions in our region are lower than developed countries. However, many in government and private sector leadership recognize the need to change this in order to deal with the tremendous challenge of the needs for job creation across the Arab World.

All of private or government initiatives share in playing a role to promote the “spirit of entrepreneurship,” but is spirit the only thing that we need? What is missing? Let us say someone quit his/her job to become an entrepreneur, then what?

There are too many challenges facing an entrepreneur today – some of it is legal structure and regulations. Other challenges are related to the fear of failure and the stigma associated with that. Even if we overcome the fear of failure we will encounter the challenge of availability of capital. With capital resolved or at least somewhat resolved, do we have the right infrastructure to help the entrepreneur launch the business? Do we have the necessary support? How about beyond the launch? The support that is available (business / cash / logistics / management / etc.) is available for someone following a dream, but only to realize that realizing the dream is much more challenging than expected. How do we help the entrepreneur or the small business owner sustain and grow?

Business Planning

Most, if not all, venture capital, foundation, and other sources for funds — in addition to business schools and MBA programs focus on a business plan as an essential deliverable / requirement to seek funds or start a business. Here we ask once again: Is the business plan enough? It is our view that a ‘traditional’ business plan is not enough. Quite a few business plans, that we call ‘traditional’, focus on the business aspects with a heavier focus on operation of the business. The question is: Do these traditional business plans provide a proper focus on the venture (most call a “project”) from idea to launch of the business?

The Missing Link

It is interesting to point out that many call a new venture a “project”, as we mentioned in the earlier section. We like the word “project,” but most definitions of the word “project” mean something that is temporary. So is the venture temporary? We hope not! So is the word ‘project’ the wrong one to use? Yes and No. The business is not a project; it is a business, a venture. So to be academic, the word “project” is not the proper one to use for the new business. Let us call it venture or business. Yet to launch the business is exactly what we call a project – the launch project is to take the venture from the idea to operations. Our objective here is not to get into an English lesson; rather we aim to define the proper use of words in order to have the proper context and fully understand the missing link. So what is this missing link? Well if launching the business is a project, then how do we manage it? Where is Project Management in managing the launch? The next section will provide a methodology to follow in launching the business.

A Proposed Sequence

Our proposed model will focus on the venture launch from idea to initial operation, using the missing link – Project Management. Future articles could focus on the use of Organizational Project Management to help build and sustain a small business and grow it.

The proposed model, which is derived from Customizable and Adaptable Methodology for Managing Projects it isa project life span model that divides the project life span into three distinct phases; which we explain here.

Business Concept

The business concept is a crucial phase of the project that spans a period from the idea for the venture until an initial decision to go ahead and encompass a feasibility study. The idea owner is likely to be the entrepreneur who has an idea for a business that could be a passion, an income opportunity, filling a need, fixing a problem, among other drivers for the business.

This is the time for dreaming, but one has to be careful that the dream is realistic and it is possible to achieve. It is highly risky for someone to launch a new venture without proper understanding of the challenges and opportunities, although one could argue in rare cases that spontaneous action could also result in good profit.

Therefore, the entrepreneur (small business owner to be) has to study the feasibility of his idea, and for this we think that existing business planning techniques are very important to use at this stage. However, in addition to the focus on the financials, competition, market demand, operation and other factors, the entrepreneur needs to also think about Project Management including proper Project Management planning. Proper Project

Management planning includes understanding of the stakeholders and their expectations and requirements, setting realistic time and cost targets, have a fair understanding of the project and venture risks (threats and opportunities), in addition to other factors.

Development of the Business Concept

The earlier phase emphasizes the feasibility study and the requirement for business planning. With the business basics in place, Project Management will become more important and the entrepreneur becomes a project manager.

So what do we do now? The project manager/entrepreneur needs to think and act per two aspects, two sides of the same coin. On one side he needs to think about the project from idea to initial operations, but he cannot ignore post project completion, which would be leading and sustaining the business (operations).

For the project aspect, the project manager needs to put in place all of the requirements in details for launching the business, including defining the success factors, time line, required resources, licensing, legal, financial/funding requirements and alternatives, regulations, budget for the launch, time line, communication with stakeholders, procurement strategy, in addition to risks identification, assessment, and management. All of these activities focus on planning to taking us from the idea through project completion but primarily to produce a detailed plan that would give us the necessary information to make the final decision on whether we should continue with the venture or not. This detailed plan is used extensively in the next phase.

For the business aspects, the project manager needs to start planning for operation readiness; which means identifying all of the things needed once the business is operating; such as financial control, human resources, policies, operational processes, in addition to marketing and business development. If the venture is not for profit, it would still require most of these activities but may be with the addition of the needs for volunteers and volunteer management or the need for sponsors.

Project Delivery (Launching the Business)

With a plan for the project and a plan for operation readiness, it is time to start implementing the project leading to initial operations. In this phase we implement the activities that we identified in the detailed plan. For example, in the plan we specified we need a permit, then it is time to do the activities necessary to obtain the permit. In the plan we defined the need for a marketing plan, it is time to define the marketing plan and develop the necessary collateral, whether print or online.

Therefore, the primary purpose of Project Delivery is to perform all of the activities necessary to produce the required deliverables that would be critical for the successful launch of the new business and start initial operations.

Throughout this document we discussed “initial operations” and “operations” as two independent terms and this is intentional. We use initial operations to define the period of time that starts with opening our doors as a business or a not for profit organization. We call it initial operations because as we start to offer services we might recognize that forms need to be adjusted, some documents might be missing something, among other things that might not go as well as we planned.

Therefore, initial operations will allow us to make the necessary refinements before we go into steady and normal operations. In some situations, we might eliminate initial operations and go straight into normal operations. In other scenarios we might have a “soft start” as an initial operations period, which we might call also as a pilot period / trial period. Which approach to take, it all depends on the nature of the business and if it allows a trial period / initial operations or not.

Business Process Improvement – The Implementation Plan

After you change a business process, how do you introduce it to your organization? Who needs to know about the change? What do they need to know? How do you communicate the change to the appropriate parties and train the affected employees?

Before you begin your BPI work, you should develop a project plan that includes an implementation phase. This section of the project plan focuses on the changes that have to occur in order for the new process to work; the testing required to make sure it works; the communication strategy that outlines who needs to know what, when; and the training plan that identifies how to train affected employees.

The implementation phase of the project plan can include sub-phases called “tracks.” For example, the implementation phase can have these four tracks:

Change management track: This track includes creating an impact analysis to ensure that you include the right colleagues in making the appropriate changes to the business process. As you work to improve a process, you identify changes that must occur in the organization to obtain the degree of improvement you expect. The impact analysis is a tool used to capture the changes that have to occur to ensure success.
Testing track: The steps in this track confirm that the process and tools work as expected.
Communication track: This track identifies the audience you have to notify of the change (the who), and the following information for each defined audience: what they need to know, when they need to know it, how you will communicate (the audience’s preferred communication vehicle), and when they need to know about the change.
Training track: This track is similar to the communication track but focuses on the training requirements: who needs training, what they require training on, where you will conduct the training, when you will conduct the training, and what method you will use to deliver the training.

Implementing the business process is the ninth step to improving the effectiveness, efficiency, and adaptability of your business.

AMPU or ARPU?

AMPU (Average Margin Per User) is a fairly new term used in mobile telephony. It supporters claim it is a better indicator than the widely used ARPU (Average Revenue Per User). Its calculation is rather easy as it consists of subtracting the ACPU (Average Cost Per User) from the ARPU: AMPU=ARPU-ACPU.

I discussed the various revenues of the ARPU and the costs of the ACPU in previous articles that you can refer to. AMPU is indeed an interesting indicator to me although not adapted in any company I worked for, yet. The tendency to change is not something I witnessed a lot when it comes to companies. Usually the higher management is content with the process and only a drastic situation would lead to a different approach. For example, EBITDA (Earnings before interest, taxes, depreciation and amortization) was not even raised as an indicator unless the company was looking for an investor.

By looking at the ARPU we were actually looking at the revenue without taking into full consideration the per customer cost. The main reason was that the cost was already calculated when we prepared our business plan! If we had done our homework right, our business plan would have showed the expenses whether they were Capex or Opex related. ARPU being the indicator of choice, we could easily set a target ARPU. Reaching that ARPU or getting beyond it, was enough indicator that our financial status is good. Even with minor errors in market forecasting on the business plan we could have corrected the estimated target ARPU accordingly. This understanding still applies for many markets and many companies.

Market trends can add serious restraints on the business; with excessive competition and technology advances, a modest marketing team cannot handle the big tasks anymore. Although we were looking at revenues indicators before to determine the profitability of the company, the market changes, made the choice of reducing costs as profitable to us as raising revenues is, and at times even easier.

By classifying the costs and allocating them to different types of services and products we can target the areas of interest where we can reduce the costs either by changing the process, switching the provider or just simply cancelling the service. For example, in one of my operations, the cost of acquisition for an SMS based service was much higher than its revenues. Although the service may have sounded interesting as an addition to the company’s services portfolio I did not see a reason to continue with my colleague’s policy of heavily advertising the service. My decision was to stop any type of advertising other than bulk SMS. The service did not have to be cancelled, and it did not have to cost us dearly anymore. This could not have been done without being able to analyze the revenues and the costs.

The major challenge that the AMPU will face is the ability to define clearly the cost allocation methodology. A vague cost allocation in the case of ARPU is not as dangerous because ARPU depends on revenues while the ACPU is the responsible indicator of costs. However, if the cost allocation process is well defined and the ACPU is detailed (shows multiple levels of costs based on products and services) and reliable, the AMPU will not only help in determining how to raise revenues but also help in reducing costs, a necessity in this commercial era.

Although AMPU, ARPU, and ACPU are financial indicators the role of marketing is obvious in all of them. Beginning with product research and the choice of product provider the market leads the cost trend. Through pricing and promotion, marketing leads the revenue process. By setting the product cycle, the marketing is making the choice to keep a service or just drop it. Understanding and using financial indicators is one of the tasks that guarantees your success as a marketer.

17 "Must Ask" Questions for Planning Successful Projects

Why do some projects proceed without a hitch, yet others flounder? One reason may be the type and quality of the questions people ask at the very start. Below are 17 insightful queries that can expose the uncertain aspects of your project, and thereby help you avoid expensive surprises later on.

1. How Would You Describe Your Project?

Explain as expressively as possible the ultimate, “big picture” vision and purpose of your completed endeavor. How will it look, feel, taste, sound, perform, increase productivity, help your customers, or otherwise benefit human kind?

2. What Are Your Goals and Objectives?

What are you trying to accomplish? List the project goals and objectives in terms that are clear, concise, achievable, and measurable. Example: “Produce a four-hour video training series on self-defense along with a training resource guide and database, to be accessible by college students on the Internet by May 2006.”

3. Who Will Benefit From Your Project?

Examples of audiences or beneficiaries include: Clients, customers, customers’ customers, local communities, wildlife, students, and specific population segments.

4. Will You Be Creating Any Products?

Examples include: Books, publications, studies, reports, manuals, video, audio, multimedia productions, tools, instructional materials, graphics, software and information systems, Web sites, databases, widgets, and special equipment.

5. Will You Be Providing Any Services?

Examples include: Providing telephone support, business software training, day care, statistical analysis, copy editing, and customer satisfaction surveying.

6. What Methods Will You Use?

For example, will you start by researching your audiences’ needs? Will you use phases for design, development, implementation, pilot testing, and rollout?

7. What Kind of Schedule Do You Anticipate?

Will your project or program involve an incremental implementation process that might occur over many months or years? If so, what long-term phases are you anticipating? Are there critical milestones within these phases? Can you create a detailed schedule for near-term tasks you will be performing?

8. Will You Need Any Partners or Collaborators?

Many types of projects will benefit from teaming up with partners who can offer complementary strengths or a long-term track record in an important area. Do you anticipate joining forces with other organizations, consultants, or agencies to complete the project? If so, what experience, expertise, credibility, funding, or other benefits will each party bring to the table?

9. Will You Need Specific Information or Advice?

Do you plan to seek information and help from subject matter experts or other advisors? Will you need to perform research, and if so, what sources will you tap? Examples include Internet resources, company documentation, service reports, trouble logs, customer feedback, surveys, focus group data, evaluation forms, census data, libraries, and formal studies.

10. Will You Need Special Systems or Equipment?

Some projects require setting up a technology infrastructure to create or deliver the products or services. Examples of items in your infrastructure might include: Servers, networks, computers and peripheral devices, and multimedia, sound, or video systems.

11. Will You Need to Use Special Tools or Templates?

Some projects require using a certain set of software tools or a specific set of templates or techniques. It’s important to specify these at the beginning so that everyone will be clear about what’s required.

12. How Will You Evaluate Project Success?

How will you measure the progress and effectiveness of your project? Will you collect information on how you are carrying out your stated objectives (process evaluations), and how well you are serving the needs of your target audiences (outcome evaluations)?

13. Who Needs to Review and Approve Decisions?

Will there be a clear process for submitting items for review and approval, and a set timeframe for receiving comments back? What protocol will be used? A key consideration is whether there will be a single responsible party with the authority to reconcile differing opinions if a review team can’t reach a consensus.

14. How Might Your Project Evolve over Time?

Why should what happens in the future be so important today? One reason is that implementing downstream opportunities can be hindered or helped by decisions that occur at the start. It’s not unusual for a short-lived, “one-time only” effort to take on a life of its own by adding unexpected phases, variations, and versions – so why not plan ahead?

15. Who Will Be Responsible for What?

This aspect is especially important when multiple parties will contribute to the outcome, and even more so when they are dependent on one another. For example, your detailed schedule for Task X might specify that “Completing Task X depends on Person Y in Company C providing the ABC Results by such-and-such a date.”

16. What Risks Should You Plan to Manage?

Nothing is more difficult that anticipating, flagging, and managing potential risks to a project as a whole, or to the successful completion of your part of it. After all, no one wants to admit potential failure, right? However, risk is a normal part of everyday life, and with proper attention, we can manage it!

17. What Open Issues Remain?

What issues and concerns remain after all topics above have been considered? You and your team may be keeping a running list of unanswered questions and unknowns. What are these items, and how and when do you think they will be resolved? Do they present risks until they are answered?

By thinking through the questions above, you can achieve your project goals with much less guesswork and far fewer problems than you may have experienced in the past.

Tips for Starting a Childcare Business

A home daycare can be a rewarding career. You can be a positive influence in the life of young children, and parents in your community can be assured that their children are in good, caring, capable hands when they are not with them.

If you have a genuine and deep love for children – and loads of patience, kindness, and understanding – a home daycare business might be perfect for you.

Here are some of the many benefits of this type of business:

Increasing Demand. The demand for childcare is projected to increase as mothers and fathers continue to work outside the home.

Emotionally rewarding. The early years are such a pivotal time in the life of a child. As a daycare provider, you can have a huge influence on the life of all the children in your care.

Stay at home with your own kids. This type of career, more than many others, offers the possibility for you to enjoy time at home with your own children while you care for others.

Starting a Home Daycare Business

While it has many benefits, a home day care is not likely to create huge financial gains. So, going into this business, it’s important that you understand why you are starting this business. And, of course, the love of children must be paramount.

Any parent or caregiver will affirm that being surrounded by children all day can be incredibly demanding. You’ll want to make sure you have a solid business plan before you embark on this type of career, and that starts with lots of research.

Here are some of the questions you’ll need to consider:

Will your community support a home daycare? In other words, does your area need another daycare?

Will you be able to charge enough in your area to make this a profitable venture (or at least to stay afloat financially). What is the “going rate” per child in your area for daycare?

What are parents in your community looking for in a daycare center? Interview parents in your neighborhood and find out what features they wish they had. What kinds of unique features could you provide as a caregiver?

What kind of changes will you need to make to your home and yard to make this work? What kind of effect will this business have on your everyday family life?

What are the regulations of your state and local government? You’ll need the requirements for caregiver/child ratios, interior and exterior space per child, nutrition, and licensing.

What kind of financial outlay would be required? As with any business, you’ll need to start with a sound business plan that specifically addresses income and expenses.

What is your childcare philosophy? How will you handle discipline issues? You’ll need to have a solid, written policy and procedures manual before you open for business.

What hours will you be open? What will you do when children are picked up late?

Which meals will you serve? What kind of snacks will you serve – and when?

What will your daily routine be? What kind of preschool curriculum will you offer? Start thinking now about possible units of study, field trips, and special guests.

Are you CPR certified? Regardless of whether it is a state requirement, you’ll want to make sure to have CPR certification and first aid knowledge so that you are equipped to handle anything that may occur in the course of your day with the children.

What kind of insurance will you need? Inquire about liability insurance, as well as changes to your homeowner’s insurance (for accidents that may occur on your property.)

How will you market your business? Generally, this business doesn’t require a lot of marketing. That’s due in part to the large demand for quality childcare. And, for home daycares, your neighbors and acquaintances are likely to be your prime prospects so word of mouth is often sufficient. Still, it’s a good idea to create a professional brochure detailing your daycare philosophy, curriculum, schedule, and fees.

What other ways could you structure your business? Before you begin a home daycare business, think about all the other possibilities in the childcare industry. For example, in my town there is a very successful babysitting service where caregivers travel to homes or vacationer’s hotel rooms. Last time I checked, the service was charging upwards of $20 per hour with a 3-hour minimum. Or consider a drop-in daycare that you could provide during hours where childcare is more difficult to find (evenings and weekends, for example). If you find a very specific niche and fill it, you can generally charge more per hour.

If this all seems overwhelming, you can invest in a business kit with the essentials: forms, policies and procedures, examples of business plans, as well as forms that you are certain to need but that might not immediately come to mind.

There’s nothing like owning your own business. Enjoy the process of researching and creating your own!