Blog

Effective Investor and Venture Capital Pitch Tips

May 9, 2012 by Frank Goley, Business Consultant

Ok, so you have spent a lot of time perfecting your business plan and financial projections. You have what you think is a good investor or venture capital pitch deck (presentation). Now, don’t ruin your chances at obtaining capital by poorly executing your pitch.

Here are 20 top tips in delivering a solid pitch:

1. Be Genuine - Be yourself. If you are perceived as fake or trite, forget your chances.

2. I am the Next Google, Amazon, or Facebook - Let’s face it. Be honest with yourself. You are not going to be the next Google, Amazon or Facebook. Be real. Be realistic. Leave the hype at home and by all means, keep it out of your business plan!

3. Talk - Don’t read. Don’t have notes. Definitely don’t read off of the presentation slides. Just talk and be natural. If you know your stuff, it will come easy. If you can’t just talk about your opportunity then you need to get a better pitch. Don’t ramble, do a lot of practice, and have a framework to work off of. Just talk and be real. Be flexible. Your presentation may be interrupted at any time. Be able to go with the flow and adapt.

4. Pictures and Graphs - Don’t just write out your pitch and put it on slides. Your presentation slides are for pictures and graphs and charts (which you need to explain). The slides should better explain your product, value, model and market.

5. Demo Your Product or Service - Investors want to see the product or service in action. Demo it! Talking about an “idea” is the kiss of death.

6. Too Technical - Don’t be too technical in your presentation. Not all investors may understand what you are saying. Keep it simple and in layman’s terms. If they want sophistication, they will ask you pointed questions.

7. Realistic Assumptions - Prove how your business plan comes from highly realistic and well researched and considered assumptions and market info. Reviewing your underlying assumptions gives you credibility and believability. Two critical hurdles.

8. Short and Succinct - Don’t go long, and definitely use less time than allocated. If they like your pitch, they will ask questions, and then your timeline is irrelevant since you got them talking!

9. Believe in Yourself and the Opportunity - If you do not believe in yourself, and most importantly, in your opportunity, then investors will see right through you and in 30 seconds they will make up their minds you are a waste of time. If you don’t believe your pitch, don’t give it.

10. Don’t be Boring - Investors and venture capitalists listen to pitches and review business plans all day long. Brighten up their day with enthusiasm and an interesting pitch, and most importantly, an interesting opportunity.

11. KISS - Keep it simple. Trying to fully explain your business plan is a mistake. Talk about your team’s experience, why your model works, why your projections are realistic, and your underlying assumptions. If they want more detail, they will ask, so be prepared.

12. Know Your Plan - Far too many times a pitch presenter doesn’t know the company business plan inside and out. And this presenter often passes the buck when asked a questions he or she can’t answer. Huge mistake. Know your assumptions, know your model, know your financials, know where the valuation came from, know your market, know your research– know your plan inside and out!

13. Tell them the Bad - If everything is all peaches and crème, and you are the perfect business person with the perfect business with the perfect opportunity, then you might as well stay at home. Investors want to hear where you are weak, what your gaps are. Why? Because they make your strategies more believable. They know you know your shortcomings and look to see how you address them.  A business plan or presentation without weaknesses and threats have no credibility, and certainly the strengths and opportunities will not be the slightest believable without them.

14. Be Natural - Don’t be rigid or appear overly nervous. If you are natural, it shows confidence, not cockiness. It shows preparedness. It shows you know your stuff and can back it up.

15. Practice Makes Perfect - If you don’t practice the pitch from start to finish a million zillion times in front of an audience, then you are not ready. Find some experienced business people and investors to critique your pitch and re-work it until you are confident in it, then practice it over and over.

16. Stay Away from Common Pitch Words and Terms - Don’t use catchy, by the minute, phrases to impress. They don’t impress- in fact, they show your inexperience. Watch out for buzzwords. Come on, be real!

17. Tell a Story - Talk about you, how you got here, what you have learned…who your product or service is for…A storyline can be easily followed and makes sense. Get investors believing in you by being interested in your story and your journey. It is the journey and what you learned that is most important to investors and VC – not your great product, service, opportunity.

18. Remember Your Best Asset - Your best asset is not your product (or service)! Don’t sell your product as much as you sell yourself. Start with you, your experience, your team’s experience, then work in your offering and opportunity into your story. Investors invest in people, not the product!

19. Talk about the Competition - Identifying you have strong competition is a winning strategy. Saying you have no or little competition will lead to a no success pitch. Identify your main competitors, and address how you will capably compete with them and how you are unique in comparison with them.

20. Don’t Sell the Opportunity, Sell Yourself - This goes back to item 18 because it is just that important. Don’t give some flashy sales pitch with enormous markets and numbers and no substance and viable assumptions and research and experience to back it up. Sell yourself and your team and why you are capable. This will be the only sales you will need. The rest are facts, aren’t they? If they don’t believe in you, they will never believe you (or your opportunity).

Beware of Business Plan Writers and Flashy, No Substance, Plans

A well developed business plan that comes from a good business planning process will produce the best pitches. Hiring some business plan writer to throw together a flashy business plan after a two hour phone conference is a waste of your time and money. If you want someone outside your company to help with your plan find an experienced business plan consultant that will take the time to help you develop a viable model, strategy and plan that is grounded in good research and solid assumptions.

Carefully examine the experience, process, support and team the business planning firm brings to the table. And be certain you are committed to the agreed upon business planning process. If you do not give of yourself and your team’s time, then the consulting firm will have no where to start and build a viable plan. Be committed!

Posted in Business Finance, Business Planning and tagged business plan, business plan consultant, business plan writer, investor, pitch deck, venture capital. Comment

Cash Flow is King

April 30, 2012 by Frank Goley, Business Consultant

So many times do I see businesses concentrating on profit margins, without a good understanding of their cash flow. Problem with that? Well, you can be profitable, yet run out of cash and go out of business.

Whether through my consulting, coaching or planning work with companies, it is not uncommon for me to quickly spot cash flow issues. Cash Flow is probably the most important variable a business (of any type and size) should keep its eye on and manage aggressively.

Don’t Be Financially Ignorant

All too often, I see company executives, business owners and entrepreneurs who ignore, or simply don’t understand cash flow. For that matter, many leave the financials to their accountants to their peril. Now, don’t get me wrong. A good accountant is a necessity for a business, but the owner and executives of a business must have a good understanding how financials work, and how to manage their cash flow.

Moreover, I see executives and business owners who are intimidated by financials. They simply throw up their hands and say it is too complicated for them to learn and manage. Is cash flow complicated? Yes, it can be. But the concept of cash flow and cash budgets is quite simple. Cash flowing in and cash flowing out over a specific time period. That is it. Simple really, when you think about it.

Why is Cash Flow so Critical?

Well, to run and grow a business, you need cash. You need cash to seize opportunities. You need cash to pay employees. Too often, businesses have an over reliance on getting finance to help them with the cash crunch instead of properly managing their cash flow. Too often cash is looked at from the Profit and Loss standpoint of business finance and interest rates, instead of active cash flow management.

A business should know their cash flow situation on a weekly basis. Not monthly, not quarterly- weekly. And optimally daily cash flow management is highly advantageous and worthwhile. If you focus on cash flow management, you are forced as a business owner to plan. Planning a business is the ticket to success. Guessing at business and thinking cash flow will take care of itself, or having an overreliance on using business finance to overcome cash flow shortages, is the kiss of death for a business. And if you are lucky, and it isn’t the kiss of death, you are bleeding cash, extremely vulnerable, and could be a much more successful and profitable company.

Where to Start?

Put together a cash flow budget that shows where the cash is going (historical) and where the cash will go (future – projected). Then plug in your big events that you need to plan for, such as a big opportunity on the horizon to increase business. Wouldn’t it be great to have some cash to increase your business instead of going to the bank or an investor at a premium with interest and terms attached? Wouldn’t it be nice to be your own bank? Wouldn’t it be nice to put yourself in the position of renting the bank’s money, instead of the opposite? All of this is possible with good cash flow management.

Get a cash flow software program. Your bookkeeper, CPA, or business consultant can recommend a good one for your business type, and they can give you the proper training to set up the software and use the software. The software will do all hard work for you and alert you as to cash flow issues before they become real problems, and be a tremendous help when you plan and manage your cash flow.

Quit Playing Roulette and Gambling with Your Business

Stop operating your business day to day, month by month. If you plan your business and manage your cash flow, then you start looking 6 months to a year and farther down the road, becoming a highly profitable, successful, and most importantly, proactive company. Stop reacting as a business owner and take real control of your business and future success. Get managing your cash flow today! You will be rewarded many times over and your stress level will decrease exponentially. Or don’t, and just be like the majority of businesses out there. Getting ready to go out of business at any minute of any day…

Posted in Business Financials, Business Management and tagged business finance, business financials, cash flow, cash flow management, profit and loss. Comment

How to Get Your Phone Ringing with New Business Despite the Economic Downturn

April 16, 2012 by Frank Goley, Business Consultant

What is the best business besides a strong customer referral? It is when qualified prospects call you. It is inbound marketing. Inbound marketing is the most superior form of marketing, it can quickly grow business, and it is a refreshing approach to generating profitable new business.

You can try ads in magazines or TV advertisements, but they can quickly get very expensive and the ROI is often questionable.

What is your alternative? Internet marketing. But isn’t that expensive as well with a questionable ROI? Not if you do it right! Internet marketing can quickly generate an enormous amount of qualified prospects calling you to discuss your products and services. Here’s how to do it…

Good SEO

Search engine optimization is the key to getting found on the internet in the general search results. The key to SEO is good, relevant content. If the content is good, then others will notice and soon the search engines will follow. What is important is to make sure you are optimizing your content for the right keywords and getting your content noticed by the right people. I find that the best customers use the general search results. Ranking well in the general results gives you instant relevancy and credibility- two things any discerning customer wants and requires.

Optimized PPC Campaign

Pay Per Click can be very expensive and a big waste of money if not done correctly. We do PPC a little differently. We have the PPC campaign part and parcel to the SEO campaign and strategy. What does this do? It lowers the cost significantly and increases the ROI significantly. Having your SEO and PPC strategies working together in a seamless and cohesive comprehensive strategy will make sure the right internet visitors are clicking on your ads in the search engines.

Find a Good Internet Consultant

You can certainly do all the SEO and PPC I mentioned in this blog post, but it is a lot of work and a big learning curve if you have little experience in these areas. Learning curves can get expensive. Internet Marketing Consultants can minimize the learning curve, develop and test campaigns, and then optimize for best returns.

An experienced internet consultant can help you construct a successful inbound marketing campaign which will significantly reduce your advertising budget and exponentially increase your return on marketing dollars invested. You need to find a business consultant that can capture the strategic direction of your company, help you figure out what product and service offerings will work best, can tweak your website design and development, can develop great web content, can develop an excellent SEO and PPC campaign, and manage the two in a cohesive strategy. It takes years of business experience to bring this type of solution to the table and do it well- look for a business consultant that has been around a while, has a track record, and doesn’t take short cuts (i.e. skips white hat SEO methods).

This is Just the Beginning

Good SEO and PPC is just the beginning to a great inbound marketing campaign. Newsletters, Social Networks, Viral Marketing, Video Marketing, etc are all great avenues to expand the potential of your inbound marketing campaign. There is really no limit in what you can do, and you will find that inbound marketing customers are the most qualified customers you will find. And, they call you! What could be better than that?

What Kind of Results Can You Expect?

If an internet marketing campaign is done right, it is based upon results and high ROI. Don’t take my word for it…Here is an example of what one of my customers said about the results they experienced as a result of my SEO and PPC work…

“I have been working with Frank Goley of ABC Business Consulting for several months now. The results and benefits have been exceptional. We have been able to significantly grow our business through the business plan implementation, consulting recommendations, and web marketing strategies that Frank has worked closely with me in developing and implementing. Also, the opportunity to consult with Frank at anytime about any business issue or opportunity has been great- he has been a great asset to our business planning and decision making. As a result of Frank’s advice, our newly developed website, and the ongoing internet marketing and SEO campaign, we have seen great results, including: our energy monitor product sales have doubled, our solar system business is on track for a banner year with a three-fold increase, our targeted website visitors have increased 1,500%, and our Bounce Rate is an incredibly low 5%!” — Randy Velker, Owner, Simple Energy Works, www.SimpleEnergyWorks.com

Find a good internet consultant, the results will be worth it…

Internet Marketing Resources

For more tips on SEO, PPC and Internet Marketing see my blog section on Business Internet Strategies.

Posted in Business Internet Strategies, Business Marketing Strategies, Business Recession Tactics and tagged business consultant, inbound marketing, internet marketing, internet marketing consultant, pay per click, ppc, search engine optimization, seo. Comment

Do Sample Business Plans Help or Hurt Business Plan Development?

April 9, 2012 by Frank Goley, Business Consultant

The one word answer to question in this post title is: YES. Yes, sample business plans do hurt business plan development. I can spot business plans that started with a sample plan from a mile away. They are generic, offer no substance, and have no viable business or operational model. They simply are not believable.

Why are There a Preponderance of Sample Business Plans Out There in the Market?

The simple answer to this: people are lazy (and don’t want to take the time to develop a plan from scratch), or a lot of business owners simply have no clue where to start on their business plan. The market demands sample business plans and business plan software companies provide lots of them as a result. Business Plan Pro founder, Tim Berry, admits that sample plans are more a detriment than utility, but they offer over 500 sample plans because that is what the market wants and how they can stay competitive.

Why is a Sample Business Plan Detrimental?

A sample business plan is not helpful for a myriad of reasons, but namely because a business plan isn’t the same for any two businesses. They may both be in the same type of business or industry but no two businesses are alike. For this principal reason, sample plans fail to be substitute plans. Also, the assumptions made in the sample plan should be fully investigated. They may be faulty, are outdated, or simply don’t fit with your niche or strategic direction.

How are Sample Business Plans Helpful?

A sample business plan can be helpful for business owners who want to see how a similar type of business did theirs to spawn ideas and to help determine what the format of the plan could be. But the sample plan should only be a spark, a catalyst; otherwise, if it is used as a framework and foundation for the business plan, then it will be a weak plan destined to fail for certain.

Sample Plans are also helpful if you are considering the services of a business plan consultant or business plan writer. A sample plan will show their level of analysis and expertise in developing plans. It answers questions like: Does it have a sound business and operations model? Does it read well? Is it aesthetically pleasing? Is it well organized and easy to follow? Does it have good market and industry research? Are the financials based upon sound and believable assumptions, which are supported and broken down throughout the plan?

Example of a Sample Business Plan

The below Flash presentation is our Level IV Sample Business Plan. In this instance, a sample business plan presentation can be worth a thousand words, can’t it? (click on it to expand it)

Beware of Stock Plans

If you do hire a business plan company to develop and write your business plan, be certain they don’t use stock or sample plans. Many of them do and that is the reason they can charge so little for their plans (there are others that charge a lot and just use sample plans too- buyer beware). They just take a sample plan and make a few changes and produce your plan. Problem is these stock plans lack any good foundation; they lack the customization needed for an effective business plan; and the plans have no viable operational / business model so they are not believable.

Moreover, they are hollow plans with no substance- they may look good with lots of neat looking graphs and charts and pictures, but the substance behind it is severely lacking- they have no backbone. Make sure the business plan consulting company starts and develops your plan from scratch; otherwise, it isn’t worth the paper it is printed on. Ensure the business plan consultants have a proven and viable business planning process that will produce an effective business plan.

Posted in Business Planning and tagged business plan, sample business plan. Comment

Finding Business Finance to Start or Expand Your Business

March 27, 2012 by Frank Goley, Business Consultant

The business lending market has certainly gotten more difficult post-recession. Lenders want to see ample collateral, a good Business Plan, solid management team, excellent financials, etc. This is why business plan consultants and writers are in more demand in this tough economy. Businesses are realizing that they need a solid plan to present to funders, whether a bank, investor or venture capitalist.

So how do you find business finance in this challenging finance climate? Well, there are a lot of ways, SBA being one, investors being another, grants if industry specific need- there are a ton of business finance alternatives that I have blogged about previously (click on: Business Finance). In this post, I will relate a funding source that I read about in Entrepreneur Magazine, which I think holds a lot of promise.

Starbucks and CreateJobsforUSA.org to the Rescue

Starbucks has hooked up with CreateJobsforUSA.org to support a unique business lending program. Every $5 donated at a Starbucks location will support $35 in small business lending. Starbucks is partnered up with the Opportunity Finance Network, which is hooked up with 180 Community Development Financial Institutions (CDFI). These CDFIs specialize in lending to disadvantaged and low income individuals and underserved communities in the US. This program launched in November 2011 with an initial donation of $5M from Starbucks. The leveraging is substantial: for every $3,000 donated, $21,000 is given out in loans.

Who Can Apply?

Anyone can apply for this financing which makes it viable for a lot of different types of businesses. Be sure to make a good impression by developing your business plan through SCORE, SBA, SBDC, or with a professional company that offers business plan services.

Preference Given to Businesses Who Create Jobs

One surefire way to secure this finance is to show in your Funding Business Plan that this loan will result in “x” jobs. If you can show you will be providing jobs in hard hit economic areas, then you will certainly garner attention.   

What Makes These Loans Different?

Well, have you been able to really talk to your banker about your business situation and needs lately? Does he come by your business and chat with you? Heck no…not in this big bank dominated bad economy…A CDFI will take the time to actually speak and counsel you- helping you every step of the way to have a successful business enterprise. Nice change of pace, huh?

Loan Program Details

Term: Five plus years.

Amount: Average is $200-$300K. Microloans of $5-$10K available. Some 7 figure loans given.

Interest Rate: 5%-7%. Short term micro’s will be higher.

Collateral: Required but you can cross collateralize a lot of different types of assets.

For More Information

Go to the Opportunity Finance Network. Get cracking on your business plan today!

Disclaimer: ABC Business Consulting is not offering any form of business finance, and this is for information purposes only. Any terms mentioned is for informational purposes and not intended or construed to be a loan offer.   

Reference: “Brewing Up U.S. Jobs” by Michelle Goodman, Entrepreneur Magazine, January 2012.

Posted in Business Finance and tagged business finance, business funding plan, business plan, Community Development Financial Institutions, CreateJobsforUSA.org, Opportunity Finance Network, Starbucks. Comment

Top Ten Tips for an Effective Funding Business Plan

March 19, 2012 by Frank Goley, Business Consultant

A Funding Business Plan has a lot riding on it. Namely the effective funding of a business. Over the years of developing business plans, I have learned a few things along the way that make business plans more conducive to funders. Here is a top 10 checklist to consider when writing your business plan:

1) Good Business Model – This is where I see a lot of funding business plans fall down. A lot of these funding type plans I see are just a sales document with a lot of flash and unbelievable hype. For a business plan to be successful in raising funds it needs to prove that there is a sound business model in place that is well considered, which when implemented, will result in a successful business enterprise. 

2) Good Operational Model – Not only do you need a solid business model in place, but you need to show how you can effectively operate and manage the business. Funders do not fund business plans, they fund people- namely the management behind a company. Without sound experience and management, deals don’t get funded.

3) Good Research – This is another biggie. There needs to be real thought and research behind the business plan. You need to prove in the funding business plan that there is data supporting your position and business model. Research not only provides you good market intelligence as a business owner, but it gives you a foundation to your planning.

4) Sound / Realistic Assumptions – This is a big area of oversight that I see most business plan writers making. A business plan to be believable needs to have sound assumptions behind the making of the plan, and most importantly, those assumptions need to be explained and detailed in the business plan for the funder. Detailed assumptions gives the funder real insight into what a business plan actually means. Assumptions give insight into whether the Financials are just plain guesses and hype, or if their development actually had some sound thought, research, and reasoning behind them.

5) Well Organized and Easy to Follow – A funder needs to effortless find the right information quickly and easily. Plans that don’t do this will get sent to the circular file cabinet faster than you can say 1-2-3! Your plan should be organized into multiple sections that are well marked and easily indexed in the Table of Contents. A funder should be able to quickly scan a business plan in a couple minutes and gain interest. If it takes longer, then interest is lost, and it goes to the bottom of the pile. Funders are busy, professional people. Treat them with respect and courtesy- send them a well organized plan.

6) Not too Much Fluff / Plan Has Substance – All too often I see business plans that are all hype, have a bunch of graphs and charts, nice looking photos but…it is all hogwash- there is absolutely no substance. First and foremost a plan must have substance. It must have a solid business model in place. You can build the nice looking stuff around the substance, not the other way around. A bunch of flash alone will not get a deal funded. A hollow plan equates to a hollow management team. Remember, funders invest in people, not plans.

7) Plan is Aesthetically Pleasing – If a business plan is sloppy, unorganized, hard to follow- it is just plain messy with bunches of grammatical mistakes…well, then kiss your chances at funding success away. A messy plan in the mind of a funder is a messy business- something which they run from. Once the substance of a plan is completed, take the time to make it look nice. Doesn’t need to be the Mona Lisa but take a little pride in its appearance and readability.  

8. Plan Forms a Picture in the Reader’s Mind – A picture is worth a thousand words, especially for a business plan. If a business plan is all words, then it can be difficult for the funder to really visualize the business, products, services, markets, etc. This is where pictures, graphics, charts, graphs, and the like really come into play. Use media to help the business plan reader form an image in their mind- help the reader see the business vision toward success. If the reader can visualize a successful business, then you will get funded. Video and demonstration presentations can also be great ways to help close a business plan’s introduction.

9) Good Executive Summary – The success of a business plan starts here. Write the summary last and key on the important areas of the plan. If in 30 seconds the executive summary doesn’t convince the reader this is a viable deal, then re-write it. Send drafts to your business mentors and associates- get their feedback. I can often tell if a business plan is poor when looking over the executive summary. A great executive summary only comes from a solid business plan, not the other way around.

10) Believable Financials – A business plan needs to make a case for the financial projections and past performance (if applicable). If a business plan is properly developed with a sound business model, operational model, market analysis, and marketing plan, then you have the basis and data and assumptions in place to form financials that you can sell to a funder. So many plans come across my desk that fail in this area. They are just blind guesses and hopes and dreams- just a bunch of hype behind them. Get the right foundation for the plan, then the financials will be believable. Sell the financials with good, well-documented and supported assumptions.

11) Bonus: Write the Plan for the Audience – Each business plan presented to a funder must be written for that particular funder. Whether the funder is a bank, an investor, venture capital firm, a grant funding institution, or a joint venture partner…the style and content and emphasis of the plan needs to be customized for the reader. Banks are interested in collateral, Cash Flow, and your ability to service debt. Investors want to see a solid ROI that is backed up with a great business model and sophisticated financials. All funders want to see a strong management team. Joint Venture partners want to see transparency, and what you can bring to the table to make the partnership a two way street. Customize each and every plan to the requirements and expectations of the particular funder. It will pay off to take this extra step instead of using a generic plan for all funders. 

So, whether you are writing the plan yourself as the business owner, or have hired someone to help you with the business plan development, keep in mind these top 10 funding plan tips and mistakes. They can make the difference between success and failure. In this present lending and funding environment, you need all the help you can get. Do it right.

Business Planning Resource: You can find more business planning tips and a detailed business planning process and workbook in my Business Plan Book.

Business Planning Services

Posted in Business Finance, Business Planning. Comment

A Business Plan is Just a Document

March 6, 2012 by Frank Goley, Business Consultant

A Business Plan is really nothing more than a piece of paper. Its importance is not the document itself, or even the words on the paper. The real importance is the business planning process behind the physical plan. The payoff and true advantage of a business plan is what you learned through the planning process that helps you run a more successful business.

A Business Plan is NOT a Funding Plan

When you need funding, you need a business plan. Fine…but the distinction is: You need the business plan way before you need the funding. Operating a business without a business plan is like throwing darts blind folded. It is like driving without MapQuest or a GPS. It is a frustrating, time consuming, and money wasting activity.

The real definition of a business plan is NOT a funding document. Instead, it is a roadmap to business success. Yes, a business plan is highly recommended to obtain funding, but the funding plan itself is not a real business plan. It is a sales document trying to convince someone to fund your business. A funding plan is often much more successful if a real, planned business plan is developed first and foremost, with an aim at running a successful business. Then, developing a funding plan is just a packaging and formality thing.

Yes, many clients come to us just wanting the Funding Plan, but they are selling themselves short. Either way, even if we develop just a Funding Plan, our process demands some thinking by our clients about certain critical aspects of the business and what works and doesn’t work among them. The strictly Funding Plans we see out on the market are just glitter, lacking the real substance necessary for someone to make an educated decision on funding a business.

A Business Plan Takes A lot of Work & Needs a Solid Process

For a business planning process to be successful and useful, then it takes a lot of work. It takes real commitment from the business to design and develop a process that will be beneficial. This is why consultants exist- to help businesses design these planning systems so that the business benefits substantially from the business plan.

Planning can be very comprehensive, or be designed to focus on critical areas. Either way, it is important to not get bogged down in the business planning process (need to keep it moving). It is also important that it is a priority within a company. So many times business owners come to me and promise it will be a priority, when in reality it never becomes one, selling the process short.

A Real Business Plan is Not a Document

What you say Frank? Of course a business plan is a document! Let me ask you this: What happens to that document? Answer: it sits on a shelf and gets dusty, only to be dusted off every so often (maybe yearly) to be “updated”.

A Business Plan is the intelligence a company gains during and after a good business planning process is implemented within company operations, and it is used on a continual basis, checking goals and progress, and most importantly, the lack thereof (and the resulting fixes). It is the systems and strategies a business develops and implements to be successful- that is the REAL business plan. Forget the end resulting document. Focus on the process: Is it sound? What did you learn? How can you implement and track what you learned?

You Don’t Need a Highly Formalized Plan

The only reason why I like to see a business have a formal business plan (i.e. a document) is to prove and showcase that a successful planning process was designed, developed,  implemented and tracked. Also, a business plan is a very effective communication tool within and outside a company- both from the perspective of the planning process and someone actually reading the plan. Yep, I said it: Someone can actually read a business plan and benefit.

Don’t get so caught up in the planning that it takes months and months and months, taking you too far away from running or starting your business. It doesn’t need to be a 100 page document (although I have developed many this size). To be useful for you internally, it may just need to be 20 pages. To be useful externally, it may only need to be 10 pages. However, it is the work behind those 10 or 20 pages which really defines the utility and success of a business plan. If the planning process was just a short cut to “produce” a plan, then the document will be flimsy and not beneficial. I will be 10 or 20 pages of BS.

Integrate Your Business Plan into Your Company

This is the number one reason why I say a business plan is not a document. It is the processes that you actually install and implement from within your company that make the business plan. It is the structure and systems of the company. It is what makes the company run well and be constantly looking for more successful ways of conducting business. It is literally the life blood of a successful enterprise. A document cannot do this for you.

Make Planning a Priority

When you initially develop your plan and when you implement and track and rework your plan, make it a real priority- a daily and weekly priority. So many times business owners think that business planning is worthless and too time demanding. They see it as taking away time from running their business, thereby reducing profits (and missing opportunities). They really don’t grasp the real substance and potential of a business plan.

The reason a business plan may be too time demanding is really because the business owner never considered certain issues and areas of their business. Or, they may lack knowledge and experience in an area. They think that by working hard, they are doing all they can do to have a successful business. This is a huge fallacy and a even bigger mistake! Just spending an hour or two a day in initially developing a business plan (and then implementing and tracking it on a weekly basis), can mean substantial increase in profits, identification of real problem areas, and seizing upon opportunities way in advance.

Don’t be swayed by those gurus, experts, consultants and entrepreneurs out there saying you don’t need a business plan. They are just trying to find clients and make press. Granted, as I said previously in this post, you don’t need some behemoth of a plan, and you don’t necessarily need a highly formalized plan. But you do need a plan. A plan backed by a sound process, a planning process with end goals and dates for completion, and a most importantly, a system to implement and track the developed business plan strategies. By making the planning a daily to weekly to monthly priority, it not only gets done, but it makes sure the business is running on all cylinders and that you are considering potential problems before they become real, expensive problems.

My business plan highlights consist of:

• Daily Marketing & Market Research: Done first thing every morning so I stay ahead of my competition and always have my pick of clients who are calling me (and not vice versa).
• Weekly Cash Flow Analysis: At all times I am managing my cash flow because I know from experience that this simple (and easy) exercise makes me more and more money, along with preventing severe headaches in the future. I always have a running cash flow budget. I couldn’t run and PLAN a successful business without it. Don’t be intimidated by Cash Flow analysis and management- it is an easy to learn and use system, even though it may appear highly technical and complicated.
• Consistent Communication with Mentors: I love surrounding myself with those who have more experience and knowledge than I. I ask them questions all the time about strategies, opportunities and problems. Mentors also ensure I serve my clients to the best of my ability. One business consultant does not know everything. Reaching out to an established network of business experts is so important for me as a consultant.
• And so on and so forth…It is an Active Plan.

Plan Today for Success Tomorrow

Get actively planning today to succeed tomorrow. It is just that simple. It takes commitment. Do you have what it takes, or are you too “busy” running your company? (I think if you answer “yes” to this question, then your company is running you and not the other way around)

Business Planning & Business Success Resources

Need business planning support? Check out these Business Planning Services.

Need a good business planning process? Check out the Comprehensive Business Plan Guide and Workbook.

Need some business success tools? Check out the Business Success Guide.

Posted in Business Planning. 1 Comment

Great Website Design and Development is Worthless without Good Search Engine Optimization

February 27, 2012 by Frank Goley, Business Consultant

In my previous blog post (Great Website Design is Worthless without Great Web Development), I discussed the merits of strong website development and how website design is really nothing without the web development component. This being said, you can have strong website design and development, yet the website still lacks in effectiveness. How can this be? Well, if the website isn’t found on the internet, then how can it monetize for a company?

The Key to Successful Website Design and Development is SEO

The missing third component is Search Engine Optimization (SEO), as SEO is what gets a website targeted visitors who want to spend money. Yes, you can do Pay Per Click (PPC), but that is quite expensive and really an extension of SEO (not a substitute) when done correctly. SEO is the best money spent to bring in targeted traffic to a website, and all the website design and development in the world doesn’t do that. Now, design and development are very important as they relate to the visitor experience and closing sales, but without targeted traffic, it is simply stuck.   

SEO Should be an Integral Part of Website Design and Development

SEO should be part and parcel to website design and development. While a website is being designed and developed, it needs to have a well planned, tested and developed SEO strategy. The website needs to be optimized for both the search engines and for the visitor experience. SEO is very technical and transcends a number of areas. In fact, there are hundreds of SEO factors to address when designing and developing a website.

Onsite SEO First

The search engine optimization needs to First be done correctly on the website before any offsite SEO is done. With the onsite SEO done correctly, the website’s design and development can really do their job- they can help convert visitors as they a) find the website on the internet and b) navigate the website. Onsite SEO alone helps to bring targeted traffic to a website so it is a great investment. It also allows for a much better user experience, increasing conversions. Once the onsite SEO is done in congruence with the website’s design and development, then the website needs to indexed by the search engines and fresh content needs to be added consistently to keep the site indexed and getting rank.

Offsite SEO Second

With the onsite SEO fully implemented and the new or redone website live and indexed on the internet, it now time to execute an offsite SEO Strategy. Offsite SEO involves a lot of things, but basically it is getting offsite back links of anchor text keywords from other websites to the target website. Offsite SEO is long, hard, tedious work, and as a result, a lot of companies smartly opt for using the SEO Services of an SEO expert. Make sure the SEO consultant is using purely white hat strategies as poor web links that link back to your website can be more of a detriment than positive influence on your website’s rankings in the search engines.

Consider Search Engine Optimization Every Step of the Way…

So when you approach your next website design and development project, consider search engine optimization every step of the way. From the get-go to the end of the project…all the way through the life of the website. Otherwise, you may have a really pretty website that does absolutely nothing for you on the internet. Remember, a website must be found by targeted visitors using the correct keyword searches for a website to monetize successfully.

Posted in Business Internet Strategies. Comment

Merry Christmas & Happy New Year!

December 23, 2011 by Frank Goley, Business Consultant

Wishing Everyone a Blessed Christmas and Prosperous New Year…

Posted in Uncategorized. Comment

Great Website Design is Worthless without Great Web Development

December 19, 2011 by Frank Goley, Business Consultant

I tried out a website design and development company several months ago. The design capabilities and work output was great. However, their development team was inexperienced, took short cuts, created shoddy code- simply put, they almost screwed up the web project. I had to assign the development work to an independent developer that I know well. In a few days, he was able to untangle their mess and helped me develop a really solid website that looked, and most importantly, worked great.

Lesson Learned: A web design firm can put out excellent designs but that is really nothing without having excellent web development as its backbone. Poor web development can really ruin a website’s experience and effectiveness.

I have a lot of web design firms approach me to do work for us, but many of them have the same unfortunate ailment…quite capable website design, but shoddy web development. Finding a web firm who can do both design and development equally well is challenging- this is why I keep my design and development functions separate in our website design projects, giving my clients the best of both worlds. My designers can focus on what they do best: design, colors, flow, usability. My developers can focus on what they do best: code, performance, efficiency, workability.

So You May be Asking: What is Web Development?

In a word: Customization.

A good web project is one that is customized for the particular client. Good web development takes the design the client approves and makes it actually work. A web developer knows programming and code; knows work flow; knows efficiencies; knows how to make something work well for the project requirements. This could be a Content Management System (CMS) that is specifically “designed” by the web developer so the client can manage the website easily, or could be a custom Check Out Cart System, a Newsletter email system, JavaScript/Flash Presentation, Language Translation/Localization, WordPress/Drupal/Joomla Customization, Cross Browser Compatibility, Website Performance/Efficiency– it is host of things, mostly revolving around good programming and coding. Web development is the foundation, the backbone to a website: it is the code that users never see but makes the website engine work well. High level website customization per client requirements is what great web development is really about.

Why is Web Development Important?

Web development is crucial in a web project because it is the architecture behind the website’s design. A website can be designed for maximum user experience and ease of use, but without great web development, the site won’t work well and the designer’s work will go down the drain. In all actuality, web development is far more important than website design. Web design gets all the attention and lauding in a web project and is important, yet it is the web development which really makes the web project a success, or lack thereof.

Analyze Website Design & Web Development Separately When Assessing a Web Design Firm

If you have a web project for web companies to bid on, be sure to analyze their development skills, as much as, if not more, their design skills. Ask hard questions about how their web developers will approach and address your specific website requirements. Look very carefully at their web design projects. Does the website work well? What is the back end for the client like? Does it perform well? Does it load well? Don’t awed by a design firm’s design capability and overlook the most important component of a web project: development. If a website is not working well, it may not be a design flaw, it may be a poor backbone.

Consider Web Design & Development as a Whole

In the previous paragraph, I said assess design and development separately. But that is just for assessment of skill and capability. It is vitally important that both design and development are considered as a whole in a web project, and how each affects the other. Both design and development must be considered when developing a web project, and as a business consultant and web expert, this is why customers come to me for their web design projects. They come to me because they want a stunning website that works well and will generate business. This is a four pronged challenge: design, development, search engine optimization, internet marketing. Additionally, on a Global basis, clients come to me because they want their website to reflect their strategic plan and be part of their strategic planning process and marketing systems. This is what a good web project encompasses, and unfortunately, many web design firms can simply not provide what a client truly needs.

My Advice: Take the time to develop out what your website project really is, what it needs to accomplish, and its implementation steps…take the time to figure out how your company will support and maintain the project. Start with the big picture and nail it down to its elements, both your website design and development will benefit, and most importantly, your business will benefit with added revenue.

Web Design & Development is Nothing without Great SEO

This could be the title of another blog post (and may well be in the future)…

My point is simple: without great search engine optimization, and how a website is to be found and marketed, then all the design and development are for naught. Before a website project is initiated, its SEO and marketing must be defined, designed and tested. The SEO and marketing of the website must be integral to the website design and development. Otherwise, you have a pretty brochure on the web that may look good but does nothing for your company. A website is not a brochure…so  many companies use them as brochures because they don’t really know how to effectively use a website per its intended and best use.

A website is not static like a brochure, it is dynamic. A website does not need fulfillment and follow up like a brochure needs. A website, when properly designed, developed, SEOed and marketed, is a sales and profit machine that will autonomously outwork and outperform the best sales people in the world (it is actually a sales person’s best friend). It never takes a day off and markets your company 24×7, 365 days a year. Maximize its best use!

Posted in Business Internet Strategies. Comment