If you develop your Strategic Plan effectively, completing the Financials should not be difficult.  The principal reason why business owners have such a hard time with the Financials Section of a Business Plan is often due to a cursory job on their Strategic Planning (as well as other important business plan sections).  Financial Projections are not believable chiefly because a suitable, well developed Strategic Plan wasn’t accomplished.  Guess what lays the foundation for a successful Strategic Plan?  The proceeding section, the Marketing Plan.  As stated previously, the sections and the order of the sections in a business plan are very important because each section builds on the previous section, the culmination of which makes for certain data from which solid Financial Projections can be made.

Types of Financials

You should have two sets of Financials, simple and detailed, as well as, conservative and best case.  The following types of financials are typical for a Business Plan:

Ø  Cash Flow: Monthly basis for 12-36 months. Yearly and Quarterly basis for 3-5 years.

Ø  Income Statement: Monthly basis for 12 months. Yearly and Quarterly basis for 3-5 years.

Ø  Balance Sheet:  Yearly and Quarterly basis for 3-5 years.

Budgets for Planning and Control

Another very important Financial in addition to the three prescribed Financials, is the Budget.  Budgets are used principally for two purposes:  Planning and Control.  A Budget matches short term targets with long term Strategic Planning, while providing an indication of problems ahead.  A good Budget system will indicate when Expenses are heading over Budget and there is sufficient time to correct the problem. Budgets are often developed during the Strategic Planning Process.

Rolling Budgets

We like Rolling Budgets which look ahead 12 months on a monthly basis, and it budgets an additional Quarter at the end of each Quarter.  This way, you always have a 12 month continuous Budget Outlook.  A Budget should also be flexible so that you can separate the effects of variations between Actual and Estimated results.  Lastly, a Budget is a tool to Evaluate your Business Units and Management’s Performance.  Needless to say, assembling and actively managing a good Budget requires the input of your entire organization.

Financials Relate

It is important to understand that your Financials relate to each other when building them (a reason why Financial Software Programs are so beneficial).  There’s a lot of back and forth between the Income Statement, Balance Sheet and Cash Flow Statement.  The Cash Flow Statement is the most important Financial for many reasons but principally because it shows in detail how much cash is necessary to finance and grow your company.

Projection Period

The projection period differs and depends for a particular company, venture or project.  For instance, a large scale Real Estate development project’s Cash Flow could be 5+ years and 60+ months depending on the length of the project build out.  Also, Real Estate development projects require more Financials than detailed above. Typically, a Construction Cost Analysis and Cash Flow, Schedule of Real Estate, Construction Cost Schedule and so forth are required and useful. Real Estate Development Financials are developed through a Loan Package and transferred to the Business Plan Financial section, so consult how to properly package a loan in order to learn more about these project specific Financials.

Assumptions 

A very important element of the Financial Section is the Assumptions area.  This details the assumptions you have utilized in constructing the financials.  You should also list the various calculations and formulas used in your financials since those formulas can be company, deal or project specific.  Financials should also include Return of Investment / Return on Equity calculations and the assumptions used in those calculations.

Realistic Financials

Your Financials need to be believable and realistic.  If anything, they need to be conservative.  Too often we see extremes of too few numbers or too many numbers.  If you build out your Financials as a direct result of your Strategic Plan, this process results in numbers that are realistic and achievable.  An option is to build two sets of Financials, conservative and a little more aggressive.  We find if you have truly conservative numbers, you will often exceed your Plan, which is a great Psychological boost for any company in any stage of development. 

Example Template for the Financials Section of a Business Plan

1)     Sources and Uses of Funds

2)     Financial Strategy

3)     Capital Equipment Valuation

4)     Company Collateral

5)     Assumptions

6)     Financials

7)     Valuations

8 )     Financial Analysis

9)     Budgets

10)   Exit Strategy

11)   Harvesting Value Strategy

12)   Venture Risk

13)   Effects of Investment and Finance on Cash Flow

14)   Tax Strategies

More Help

Please see my articles on Business Financials for more details in this area…

The Strategic Plan puts the Marketing Plan into action.  The Strategic Plan will show how to implement the Marketing Plan and a company’s Business Plan. The Strategic Plan is about action and implementation.  It also details your Sales Forecast for each particular product or service.  The Strategic Plan translates what will be the result of the Marketing Plan, and how it will be implemented and achieved. 

The Sales Plan

The Strategic Plan takes the vast amount of marketing information and research and puts it into a clearly defined Sales Plan.  It is very important that a Strategic Plan is believable and achievable.  It works out the “kinks” and road blocks in your Marketing Plan and illustrates how to overcome Competitive Gaps.

Strategic Management

The Strategic Plan also provides a process for Strategic Management, Strategic Auditing and Strategic Reassessment.  The end product not only implements The Company’s Strategy, but also it provides measurable performance, control functions, corrective actions and reassessment when necessary.  It is a top down and bottom up approach, completely integral with your Company’s Operations, from the Vision and Leadership of the CEO, to Management’s implementation of the Strategy, to the Sales and Operations units of the company.  It provides a Company-Wide Strategic Vision, Focus, Structure and Discipline, while providing an atmosphere of learning and awareness, with a process for identifying deficiencies, and in turn, fixing those problems.

Outline of the Strategic Plan Section of a Business Plan

1)     Company Objectives

2)     Potential Problems and Risks

3)     Risk Analysis

4)     Company Strategies, Strategic Tactics and Strategic Programs

5)     Sales Strategy

6)     Sales Programs

7)     Strategic Alliances and Joint Ventures

8 )     Operating Budget

9)     Sales Forecast

10)   Milestones

11)   Control Mechanisms

For more information on developing a Strategic Plan and Sales Plan, please see my article: Developing A Successful Strategic Plan.

Developing, writing and implementing a successful Marketing Plan starts with solid Industry and Market Analysis and concludes with an implementable Marketing Strategy and Marketing Programs.  A Marketing Plan is not developed and implemented independently; rather, it should be developed in close coordination with your Business Plan Products and Services Section and ultimately implemented through your Company’s Strategic Plan and Sales Plan. The Marketing Plan Section of a business plan is typically developed after the Products and Services Section of the plan have been developed. This gives the marketing plan process a head start on developing a cohesive and competitive marketing strategy and program.

What The Marketing Plan Does

§  Shows how your product and service will be marketed

§  Summarizes your Marketing Research (the actual research is contained in the Appendix)

§  Fully details your specific Target Market Segments

§  Explains and exploits your products and services Competitive Advantage

How Your Products and Services will be Positioned

The Marketing Plan explains in great detail how your products and services will be positioned in the market, all supported by detailed, believable market research. The Marketing Plan carves out your target market niches and develops effective Marketing Programs, along with a Strategic Marketing Plan.

Example Format of the Marketing Plan Section of a Business Plan

1)     Industry Overview

2)     Industry Distribution

3)     Market Segments Description

4)     Market Segment Needs

5)     Market Segmentation Strategy

6)     Market Trends

7)     Market Growth

8)     General Nature of the Competition

9)     Customer Choice Factors

10)  Product and Service Competitive Comparison

11)  Competitive Analysis

12)  Competitive Positioning

13)  Competitive Edge

14)  Marketing Strategy

15)  Marketing Programs

For more information and a step by step guide on developing a Marketing Plan, see the ABC Business Consulting Business Plan Workbook.

The Products and Services Section of a Business Plan is the “meat” of the plan. By the time you get to this section, you should have developed the Company, Management and Operation Sections. It is now time to describe in detail your company’s Products and Services.  This section also contains information on your competitor’s products and services.  One of the most important aspects of this section is to explain why your products and services are unique. This includes your competitive advantage.  On the converse, this section states where you have weaknesses in your product and service line-up.

Start with a Resource Audit

A Resource Audit is an honest self-evaluation of your company.  In this analysis you identify your strengths, weaknesses, opportunities and threats (SWOT), which will be considered in your Marketing Plan and addressed in your Strategic Plan.  In this section you develop your product and service price points, features and value to be fully exploited in the Marketing Plan.  Customer identification, analysis and segmentation starts in this Section to be later developed in the Marketing Plan.

The Products and Services Section Sets Up Your Marketing Plan

This initial analysis of your products and services sets up the success of your Marketing Plan. It lays the foundation to develop an effective Marketing Strategy. Spend time on your competitive advantages and disadvantages, your price points and initial SWOT analysis in this section and developing your Marketing Plan will be much easier and much more effective.

A Sample Format for the Products and Services Section of a Business Plan

1)     Products and Services Description

2)     Awards, Honors & Achievements

3)     Case Studies

4)     Product and Service Mix and Price Points

5)     Product and Service Analysis

6)     Life Cycle

7)     Production Strategy

8 )     Research and Development Strategy

9)     Space Utilization

10)  Departments Descriptions

11)  Future Products and Services

12)  Effects of Technology

13)  Computerization Requirements

14)  Company Sales Literature and Brochures

15)  Internet Strategies

16)  Electronic Ordering and Fulfillment

17)  Inventory Method and Management

18)  Regulatory Compliance

19)  Product and Service Liabilities

A Company’s Management Team is of Paramount Importance

No matter how good the company’s Products or Services, it can not be successful with out the solid building blocks of the Company, Management and Operations Sections of its business plan. I usually combine Operations with the Management section but it can stand on its own or be part of the Company Section. Either way, it is important to establish the connection between Company Structure, the Management Team, Management Objectives and the Operational aspects of the company. It is a very important and necessary triangle to plan well for.

The Company Overview Section

The Company section of a Business Plan speaks to all the pertinent details of your particular company. This section comes first in the Business Plan (after the Executive Summary) as it serves as an introduction to the necessary details and background of your company. For instance, the Company Section could contain this type of information… 

§  How it is formed

§  What your company does

§  How it is organized

§  Your Vision, Mission and Goal Statements

§  History of the company

§  Where it is located

§  How you can be contacted

§  And so forth…

Suggested Format for the Company Overview Section

1)     Company Establishment

2)     Company History

3)     Company Structure

4)     Company Ownership & Legal Formation

5)     Facilities & Locations

6)     Products & Services Overview

7)     Trends Affecting the Company

8 )     Customers

9)     Competitive Strategy

10)  Company’s Strengths & Weaknesses

11)  Company Performance

12)  Company Finance

13)  Company Assets

Management and Operations Section

You can have the greatest business idea or concept but lack the people to execute the plan.  Therefore, the Management Section of the Business Plan is the most important element of the plan and often scrutinized as such by finance sources, customers and your Business Plan audience. This section builds on the Company Section explaining in detail…

§  Who will run the company

§  Who founded the company

§  Who the key employees are within the company

§  How the company will be run

§  What are the specific qualifications of those who will run the company, work in the company, and be responsible for sales, marketing and its strategic direction

§  The specific gaps in Management and talent, providing a plan to fill or overcome those present gaps

§  And so forth…

Example Format for the Management and Operations Section

1)     Employees

2)     Management Philosophy

3)     Management Requirements

4)     Management Gaps

5)     Organizational Structure

6)     Founders / Directors / Principals / Management / Key People

7)     Management Administrative Procedures & Controls

8 )     Decision Making Teams & Processes

9)     Company and Management Objectives, Goals and Strategy

10)  Compensation Structure

11)  Human Resources

12)  Outsourcing

13)  Consultants and Advisors

14)  Products and Services Production and Delivery

15)  Distribution System

16)  Order Turn Around

17)  Suppliers and Vendors

18)  Service Standards

19)  Customer Service Plan

20)  Quality Control

21)  Costs Minimization

22)  Technology

23)  Production and Operation Advantages

24)  Capacity

25)  Safety Procedures

26)  Inventory

27)  Environmental Considerations

The Executive Summary should be written last.  Why?  Because it organizes and summarizes the entire Business Plan. You cannot achieve this effectively until all other sections of the Business Plan are completed. You should develop two types or renditions of the Executive Summary for your Business Plan.  A short version which is 2-3 pages and a longer version that is 5-7 pages long.  The Executive Summary contains the Company Statement, Visions and Mission, the Purpose of the Business Plan and a short summary of each section of your Business Plan, along with a Financial / Profitability Section. You can also provide the key strategic competitive success areas of your Marketing Plan.

The Executive Summary is a Mini Business Plan

The Executive Summary (short version) is part of your Business Plan, giving the reader a quick overview of the important facts contained in your Business Plan.  The Executive Summary (short and long versions) can also operate as a stand-alone document to be used to generate interest in your business opportunity or venture, i.e. to be sent to a funding source to generate and gauge their initial interest.  An Executive Summary can accompany an Investment Overview to provide more details to a venture capitalist about your particular business opportunity. 

Brevity and Inclusiveness are both Key

Brevity, yet completeness and inclusiveness, is key when writing your Executive Summary.  It should be concise yet have adequate detail about your Business Plan.  This can be difficult to achieve if you attempt to write it prior to completing all the sections of your Business Plan.

An Example Format of an Executive Summary

This is an example of the different sections that an Executive Summary can contain. Adjust for long or short versions and for your intended audience.

1.     Company Information

2.     Business Plan Purpose & Objectives

3.     Company Goals & Vision

4.     Company Mission Statement

5.     Company Description

6.     Company Purpose

7.     Company Situation

8.     Founders, Management & Principals Capabilities

9.     Products & Services

10.  The Competition

11.  Keys to Success

12.  Finance

13.  Growth & Expansion Goals

14.  Sales Forecast

15.  Return on Equity / Return on Investment

The Table of Contents of a Business Plan is one of the most important elements of the plan.  The Table of Contents should be very detailed, so that the person reading and using the Business Plan can find and access the information needed very easily and quickly.  You can write a great Business Plan with all the necessary information in it, but if you can’t easily find or access that information, then the Business Plan ceases to be a useful tool. 

How to Organize the Table of Contents

The Table of Contents should be organized by each section of the Business Plan and the specific page numbers of each section and sub-section.  It is strongly recommended that a Business Plan be organized as an online document, with the sections and sub-sections hyperlinked to the page where that information resides.  This way you can access information very quickly on a computer online versus having to flip through the paper document to find the information.

II.  Organization

The Organization of the Business Plan is quite important.  The 8 Section Business Plan is in a specific order from which each section builds on the previous section. There is fluid thought and reasoning employed to achieve a Business Plan which reaches its specified purpose- i.e. to run a business, to buy a business, to expand a business, to enter a joint venture, to finance a business, to complete a particular project.  Although the Executive Summary is the first section of a Business Plan, the Executive Summary should be written last.  With the exception of the Executive Summary, all the other sections should be written in the order they are listed. 

Business Plan Format

Remember that a Business Plan is a Business Document; you are NOT writing prose.  It should contain a very precise and concise format and be organized into numbered sections and sub-sections, which contain specific information in short, paragraph form. Business Plans should be written in paper form, computer format and online format.  Computer Format means the Table of Contents are hyperlinked so you can easily access certain information quickly and precisely in one click on your computer.

Sharing the Business Plan

You should have your Business Plan published securely, online (via password access) so that certain key managers or employees can access and manage remotely.  Also, you can use an online Business Plan to attract funding for your venture. You can have different versions accessible online for particular purposes. For example, you could have your Marketing Plan accessible remotely so your Sales Manager can update it or refer to it while in the field or on an important sales call.  You could have a funding version of your Business Plan accessible online for angel investors or venture capitalists to view your opportunity. 

The Business Plan is a Living Document

A Business Plan is a dynamic document, as it changes on a daily, weekly and monthly basis.  By being able to access it on your company computer network and / or online, the CEO, Executives, Management and Key Employees can update it easily and effectively.  For a Business Plan to be successful, it must be intertwined into the fabric of your business and implemented through the Strategic Plan.  Having the Business Plan organized with Hyperlinks with highly organized sections and uploaded on your company’s computer network and accessible online, allows the Business Plan to become a “living” document which can effectively:

1.     Run a business 

2.     Be readily changed, adapted and updated

3.     Be a sales tool

4.     Obtain funding

5.     React quickly to market changes

6.     Give you the ability to make realistic forecasts and projections

7.     Seize opportunities

8.     Keep your Competitive Advantage. 

Keep Your Audience in Mind

Organization of your Business Plan is KEY to its effectiveness and utility.  It is important to remember that too many Business Plans are written from the perspective of the Business Owner.  When writing your plan, remember your audience extends beyond you, the Owner.  Don’t neglect your Managers, employees, customers, the marketing aspects and the potential investor elements.  This is also why I suggest writing one Comprehensive Business Plan to run your business and develop other Specific Purpose Plans for different audiences, i.e. a Customer Plan, an Investor Plan, a Lender Plan, a Strategic Management Plan, a Marketing Plan, Supplier Plan and so forth.

A good Business Plan is the most important, but most often overlooked, part of running a business, starting a business, expanding and growing a business, or obtaining finance for a business.  If a Business Plan is well developed and written, the starting, expanding, running or financing a business is much easier and effective, leaving less room for error and failure.  While you cannot predict everything that can happen in a company’s future, a good Business Plan helps you avoid certain pitfalls, overcome obstacles, while also anticipating and creating opportunities.

Business Plan Formats

There are different Business Plan Formats for different purposes.  Always start with a Comprehensive Business Plan to successfully run your business.  Once you have completed your Comprehensive Business Plan, then you can take certain parts of that Plan to form the other ancillary Business Plans for other purposes, such as a Funding Business Plan for a Bank, Investor or Venture Capital Firm.

Business Plan Process

Formats are important for Business Planning but most important is the Process.  The Process is a building block system that is continuous, systematic and comprehensive.  It involves the entire Company, produces effective decision making and executes those decisions in a Strategic Plan.  A good Business Plan measures the relationship between Expectations and Performance- it evaluates your Company’s progress or the lack thereof.  A Business Plan’s goal is to create the future for your company, taking a proactive approach toward your target markets.

Business Planning is Art and Science

It is said, writing a good Business Plan is more art than science.  It is good to have a proven process and format, but you can’t just fill in the blanks on a master planning program or document.  It is a matter of asking yourself the right questions within that proven process and format which brings about a successfully developed and written Business Plan. You can find such a process in my Business Plan Book.

Why Use Testimonials

Testimonials bring trust and credibility, two major factors in a prospect’s buying decision. When posted on your website, testimonials help sell a prospect with out your involvement. What an incredible automatic sales tool. Testimonials clearly show that you deliver, which at the end of the day, is why people buy from you.

Tips on Using Testimonials

§  Any Time You Have a Positive Interaction with a Customer: If someone says great things about your website or blog, ask them for a testimonial. If you send them a Free E-Book ask for their feedback and if positive, ask for a testimonial. If you went out the way for a customer and they appreciated all the effort, get a testimonial. Testimonials aren’t just about a successful sale, it is also about the way you successfully interact with you customers. 

§  Make Sure They are Genuine: The Customer may ask for your input on the testimonial but make sure the testimonial is genuine and comes from the customer. If they are contrived, it is evident. Understand they may be checked on.  

§  Place Them Everywhere: Good places to put and use testimonials include your Blog, Website, Sales Pages, Brochures, a Press Release, Direct Mail Letters, Solicitations and Referral Sources. Use Twitter, Facebook and the other Social Networks to spread the word when someone writes you a nice testimonial. It also raises awareness toward the person writing the testimonial, a nice thank you! 

§  Written and Video: Using both forms of testimonials works great. Video connects with visual and emotional people and written with others. Also, some prospects may be viewing from an office where they don’t want to have the audio on so have a mix of both. If video, include it on your YouTube Channel under a Testimonial section. This is a great way to spread the news about your company! 

§  Doesn’t Need to be a Customer: Having a strong partner write a testimonial really can say a lot about a company’s reputation. Think of your strategic partners, alliances, joint ventures, suppliers, vendors- all those you do business with. If they are favorable toward you and your business, it means you have a good business reputation which says a lot. It helps you close those bigger customers and build new business relationships.  

Today’s Video is on Using Twitter to Get Testimonials

I am Not Talking About Giving Services and Products Away for Free  

While this can be a good strategy, and one I use quite a bit (i.e. a free business plan review, a free consultation, free e-books, etc), it isn’t the same. This strategy just lowers the economic level the customer enters into a relationship with you. It isn’t a big money maker but a service or product that brings you some income and provides a huge opportunity to earn more quality business.

Offer Different Levels of Services and Products

I offer four levels of business plans so clients with a young and growing company can start with a solid entry plan, and then I can upgrade the plan for future needs as warranted (and as the initial business plan pays off for them). I also offer an entry level business plan so a client can comfortably try my services with very little risk, see the great value and payoff for them, and then become very open to speaking with me about my monthly and onsite consulting services. I also separate out certain sections of the business plan, like the Marketing Plan or Strategic Plan or the Executive Summary, if a client has the business plan and wants to strengthen it up, update it, or have a good implementation plan in place. I also offer other ancillary packages such as an Investor Overview or a Loan Package, which accompany a Funding Business Plan. These are value add services at lower levels that can earn the client’s bigger commitments in the future.

Earn the Bigger Business

Once I have thoroughly satisfied the customer at the lower level service, then the customer is very willing to talk about more of a commitment like the Business Coaching or Business Consulting services I offer, along with the more complex business planning. A lot of the introduction to my SEO and Web Development Services come through business at the lower service level and earning it later.

It Makes Business Sense

You get a small commitment from the customer initially which helps you maintain cash flow with the opportunity to make a more profitable sale in the future. It really is a win-win if designed, presented and sold properly. It works particularly well in this Recession when customer dollars are tight, and they need to make really good decisions with little room for error.

Consider Services or Products You Don’t Normally Offer

I wrote some business articles for an experienced and accomplished business owner which earned me small bucks, but they are great bucks! Why? Because it has led me to great SEO and Content work for his websites. It was a fantastic way for me to introduce myself and what I can offer. The owner jumped on the opportunity when he received the quality articles. I write quality content for myself everyday, why not for others to potentially earn that better business in the future?

Design, Package and Present it Well

The assortment of services and products I offer have a definite design, plan, strategy and process behind them. I know how to effortlessly present customers options, close them quickly with value and confidence, implement the lower service or product well and fast, then be right back with them in short time speaking about our other, higher level, yet more value and payoff based, services and products. It helps the customer and later the customer helps me, and in turn, I am so excited to help them succeed with the repeat business. It drives my passion! My passion to help customers and earn quality business down the road. Think about it…

Today’s Video is on “How to EARN a Customer’s Referral”

Why Blog?

Ø  Blogging Sets You Up as An Expert: Expert status will get you talked about on the web and bring you another level of customer.

Ø  Blogging Increases Web Traffic: Your blog subjects will bring in targeted web visitors who over time will become customers, or refer your blog and company.

Ø  Blogging Helps Your SEO and Ranking: Search Engines love fresh, new, relevant content. It helps tremendously in getting your website consistently spidered and well placed in the search engine results.

Ø  Blogging Tracks Prospects: If web visitors find your blog interesting, they will subscribe to your RSS Feed. Now you have an email to track and communicate with potential customers.

Ø  Blogging is Fun: Give it a chance and you will find it is a rewarding experience.

Ø  Blogging Brings You Customers: Some customers take time to become comfortable and buy. A blog is a great way to stay connected with them until they are ready. Blogging creates lots of real time opportunities to gain customers. Blog posts get spidered quickly by the search engines so you can pick up immediate customers.

Ø  Blogging Helps People: If you give it away, you will experience a return 10+ fold. People appreciate great information and will refer you.

Ø  Blogging Gives You Competitive Edge: If a prospect is comparing companies and websites, the one who has a good, fresh blog will stand out. It is a great way to show your expertise.

Ø  Blogging is Viral: Through the social networks and other bloggers, your good blog posts will be passed around again and again. The viral aspect really increases your customer reach.

How to Blog Well and Get Results

Ø  Blog on What You Know: Stick to your expertise areas and content areas you need better search engine ranking.

Ø  Blog 3 - 5 Times a Week: If you can, blog once or twice per day for the best results.

Ø  Submit Your RSS Feed: Submit to RSS directories so you gain a web presence.

Ø  Make Your RSS Feed Available: Make sure blog visitors see your Subscribe to RSS Feed prominently on your blog.

Ø  Set Up Automatic Pings: Set up your blog so that every time you publish a blog post it automatically pings the major search engines and blog directories. I ping 40 search engines and directories every time I post, all done on automatic. This gets the blog post in the search results instantly.

Ø  Use the Social Networks: Post your blog snippet and URL to Social Media to get exponential coverage and quickly spidered by the search engines. Increases the viral nature of your posts as well.

Ø  Choose Your Title and First Paragraph Well: This is what the search engines and web visitor will read first. Be sure it is optimized for your keyword and reflects the content of your post.

Ø  Keep Your Blog Well Organized: Make sure you pick good categories that reflect your keyword areas so search engines and visitors can quickly find the relevant content. Each blog post should be placed in a category reflecting its content.

Ø  Give Your Newsletter Prominence: If someone likes your blog, more likely than not, they will sign up for your Newsletter. Another great way to stay in contact with prospects and customers.

Ø  Ask for Comments and Feedback: Blog visitor engagement is what converts prospects into customers and gets your blog post talked about.

Ø  Add Video: To really connect with the visual blog reader, have a short video synopsis of your blog post. Add the videos to You Tube as another way for visitors to find your blog. Video will help you to personally connect with your blog visitors.

Ø  Keep Your Blog Posts Short: Long posts will often lose the reader. Keep them short with valuable information.

Ø  Use Bold and Headings on Your Posts: Just writing a bunch of paragraphs will not be as well read as short paragraphs or sentences with Bold Headings. This way a visitor can quickly scan the blog post and get the information they want and need. They can always come back to read the entire post. This organization also helps with the search engine spiders.

Ø  Use Keyword Tags: Lets the search engines know what your blog contains and prompts spidering. Helps in your positioning for keyword searches.

Ø  Optimize Your Images: Gets spidered quickly. Use Alt Tags.

Do it Today!

I hope there is enough here to convince you that Blogging needs to be part of your Business Plan and Marketing Plan. You can set up a blog for Free with Word Press. No excuses! Good luck!

Today’s Video is on How Blogging is Relevant and Effective

More WebProNews Videos

ü  If you want funding, you need to show you have the right team in place to implement your business model.

ü  If you want to grow your company’s profits, you need a capable team who can develop and implement the Marketing Plan.

ü  Experienced and talented personnel are the number one reason why a company will succeed, not the product or service.

ü  A company that has plateaued needs new blood to reinvent its Strategic Plan and develop markets to sustain the company.

ü  A good CFO goes along way toward understanding what company numbers and financials are telling a business. Many businesses lack this experience and are behind the ball on identifying potential problems and negative trends.

ü  A Business Plan will provide an objective assessment of a company’s experience base. This process will identify where a company needs help for what they are trying to achieve in the business plan. With out this process, a company is just guessing about who they need to be successful.

ü  Forces a company’s founders and owners to evaluate their skills in running a company and carrying out the business plan. Are they the best people for the job?

ü  Helps a company determine if they have the right mix of people to handle the responsibilities assigned for major milestone objectives. Are you strategically aligned?

The Fix

The sooner you implement an objective assessment of your people’s experience, the faster you can own up to your gaps in experience. Then you can devise a plan to deal with these gaps. Do you need to bring in more people or will a strategic alliance fill the gaps?

A Good Team Finds Success

No matter what a company faces, if it has a good team in place, more than likely, it will find a way to succeed no matter the obstacles. Don’t wait until it is too late to shore up your gaps, or plan for future gaps as your company grows and evolves.  

Today’s Video is on…Should You Be a Leader?

Break the Business Plan Process Down into Sections

In my Business Plan process, I like to start with the Company Section, then move on Management, then to Products and Services, then to the Marketing Plan, then the Strategic Plan, and finally the Financials, the Appendix, and last, the Executive Summary. This way the business plan builds on each section logically and incrementally, making the process much more doable, effective and efficient.

Come Up with Questions and Requirements for Each Business Plan Section

Once you have the various business plan sections laid out and the order of their development, then come up with the questions and requirements for each section. There are a ton of books and resources on the internet to help you brainstorm these, and then apply this information to your business. My Business Plan Workbook contains a prescribed and proven business planning process, along with all the requisite questions and requirements on a section by section basis.

Business Planning is a Marathon, Not a Sprint

It takes steady consistency to complete an effective business plan. So you don’t get burned out and really enjoy the planning process, I suggest working on the plan a couple hours a day. Work on the plan first thing in the morning before you get busy with your business day. This way you have fresh thought, and you get it done for the day (i.e. it is not weighing on your mind all day). If you can work 3 hours a day on the weekends, it will be worth the effort. However, taking one day off a week from the planning to take a step back and recharge is also preferable. Do what you can but don’t try to do it overnight.  Consistency is what gets a plan done. Consistently work on it daily for short periods of time, and your plan will be done in a timely manner. Inconsistency brings disaster in a business plan process.

A Good Business Planning Process is a Must

Designing a good business plan process upfront is essential. The quality and scope of the process will determine the quality and effectiveness of your business plan. Design it in parts and implement it in step by step sections, which build on one another.

Have questions on your Business Plan? I offer FREE Business Plan Reviews and Consultations.

Today’s Video is on The Business Plan Roadmap

You Are Busy But What Are The Results?

A business owner may think. Hey I am so busy and have more to do every day than I can finish. I am doing the best I can. That kind of thinking is an absolute Fallacy. The problem with this sort of thinking is two fold: 1) the business owner doesn’t know what actions or tasks have a real payoff for the company and 2) busy tasks over take the fundamentals of growing a healthy business. The way to solve this issue is to simply plan your time on a daily and weekly basis, but before doing that, you need to identify strategically what tasks are most important and why. Schedule in the tasks that have the best payoff for your company first, then build in your other “busy” tasks.

Steps to Effective Time Management

Step One: Keep track for one or two weeks exactly how you spend your day. Time and identify your specific actions and tasks for the entire day- minute by minute, hour by hour.

Step Two: Document what the payoff for your company was for the specific tasks accomplished for the tracked period of time.

Step Three: Identify and Prioritize what actions and tasks will have the best payoff for your company in relation to your Business Plan, Marketing Plan and Strategic Plan.

Step Four: Schedule out 2-4 weeks in advance how and when you will accomplish these priority, strategic actions and tasks. These are the first items for your new schedule. They have the most priority.

Step Five: Now schedule in your busy tasks and meetings. Since your schedule will be filling up with the priority items, you will be forced to decide really what busy tasks are important for you and what can be delegated or simply dismissed.

Step Six: Stick to the structure and make changes and adjustments to the schedule up to one month in advance as a result of and relation to your business planning, strategic planning and marketing strategies. Reprioritize at least once per month or preferably every two weeks to ensure you are tracking the most effective route for your business goals.

Step Seven: Measure results on a weekly basis and make small adjustments for the coming week as needed. Identify successes and issues and figure out how to overcome problems. Acknowledge the successes through out your company and who helped you achieve that success at the end of every week. Carry that momentum into your upcoming new week.

Good Time Management Forces Good Business Habits

Spending time on actually making out your schedule and how you will manage your time in the face of what needs to be accomplished in your company’s business plan, will create that perfect marriage between what needs to be done on a particular day for the company’s success and what other more mundane tasks need to be accomplished. If you fail to plan your schedule and lay it out by the hour and minute, then you will find yourself busied to death with tasks that you don’t know will have the necessary payoff for your company. This is the pinnacle of Strategic Thought and Planning, and the core reason why some business owners are much more effective and successful than their counterparts.

Enjoy Your Free Time

Good time management frees up your time, giving you more time to enjoy your family, more recreation, more healthy space from your company. This makes you happier and healthier, which has a huge payoff in your business. You become much more efficient and effective, cutting the necessary time to really achieve what is actually needed for your company to prosper and succeed. Get your priorities in your business right and your priorities in life get right. The payoff is better profitability and happiness. Can’t beat that! What are you waiting for? Get started today…

Today’s Video is on How Self Management Dictates Time Management

How Page Rank is Calculated for a Twitter Profile

PR of any web page helps it in the total score for a website in determining where it ranks. While PR isn’t everything in whether a website ranks well, it does indicate how authoritative and influential the website is. A Twitter Profile receives page rank from the quality of the links to your Twitter Profile (not the quality of your outgoing links). So if someone of influence links to your Twitter Profile, then you receive the benefit and receive Page Rank.

Does Page Rank Matter?

So if you want your Twitter page to rank well, your PR is a good indication of its chances of good ranking. If your PR is low, then look for stronger linking partners, as you would in any good Website Search Engine Optimization (SEO) Strategy. Don’t get obsessed with PR. Google says it is one of 200 different variables it uses to rank a website. You will see many sites rank well who have no PR or low PR. However, if you do have a good PR score, it shows the trend of the authority of your website. Higher authority generally means better ranking and exposure (and the respect of the search engines).

Twitter Does Matter

What you really need to learn about Twitter and Page Rank is the importance of Twitter that Google and the other Search Engines put on Twitter. Twitter needs to be part of any business marketing and SEO strategy because without it, you are simply missing out on getting noticed by the search engines and a lot of traffic.  

Quality Followers and Links

Now, the quality of your outgoing links on your Twitter Profile may not help your Page Rank, but it certainly does attract followers who read your tweets and re-tweet your tweets and links. The more quality followers with good PR who end up linking to you, the better your PR and possibility of better rankings. Moreover, the increase in followers adds tremendously to your web traffic and exposure.

As you think of quality SEO for your website, also think about the same for your Twitter Profile. Its importance can no longer be overlooked.

Today’s Video is on The Significance of Page Rank on a Twitter Profile

Online Chat

I recently added Online Chat to our website and have seen great success using it. I find we are engaging prospects which otherwise we may have missed. We are showing a genuine interest in our website visitors, providing them free advice, giving them many different ways to connect and contact us. It shows our willingness to earn business and be mindful of a new customer’s needs.

You Call Prospective Customers At Their Convenience

This is the reverse of the 1 800 number. We ask web visitors on our Contact Us page to simply email us their number and best time to call them. The prospective customer can tell you when and how to contact them. Amazon.com has been doing this for a while. It can cut costs, mitigates frustration if you can’t take their call, and yet, it really shows your commitment to a customer’s needs and schedule.

Make Your Website Customer Centric and Friendly

I see so many websites which are so uninviting, provide little information and make little or no attempt to woo the web visitor. A website really needs to be all about the customer. Offer great content and free information to sincerely help the prospect. If it is good advice, the prospect is much closer to becoming a customer. Be sure to have customer testimonials.

Offer a Newsletter

When a prospect first enters your “realm”, your business, your sales process, give them access to a Newsletter. If the prospect fails to convert, then at least you are still in front of them, striving to earn their business, while providing them great info to use. A Newsletter needs to cater to the prospect, not be an obvious sales piece for your company. I like Newsletters sent twice per month. 4 times per month can be too much, depending on the Newsletter and recipients, and once per month is not enough. Be sure to ask the recipients to pass the newsletter on to friends, associates and fellow businesses.

Offer Surveys

Whether online or offline, offer surveys for prospects and customers alike to complete. It gives you important feedback on what you are doing right and wrong. It gives you another avenue of engagement.

Offer Free E-Books

Free E-Books are an excellent way to mine prospect contact information and provide that prospect or customer with your experienced advice and expertise. These also have a viral nature, often being passed along via email.

Offer the RSS Feed to Your Blog

Blogging is an excellent way to provide prospects and customers great information, tips and advice on a daily basis. Be sure to offer your RSS Feed so the prospect and customer can get your daily blog straight to their email inbox or updated in their RSS favorites. This is a fantastic tool to earn business, capture a prospect’s email address and solidify your relationship with your customers.

Avoid Auto Responders

I am all about technology and automating processes. But many prospects will be turned off by an email communication that is sent to everyone. They are not special. Find ways to personalize with in your auto response systems to show a prospect you think he or she is special. It is worth the added step.

Give Prospects Ways to Connect With You

The Social Network world is an awesome platform for prospects and customers to really connect with you on a personal level and on a level which they may prefer. Be open to integrating your business, yourself, your key executives and managers and employees, into the social networking world.

Write a Hand Written Thank You Note

Business people rarely do this anymore in the technology age. By sending a thank you to a prospect for considering your business or to an existing customer for their continued business shows that you care. It separates you from the pack and really engages the prospect and customer on that emotional level, which is key.

Show Them You Care

At the end of the day, if a prospect knows you have the necessary skills, products and services to help them, it is the “x” factor that closes the deal. Showing them you truly care about them will seal the deal. Caring taps that sub-conscious area, providing an emotional connection. Don’t just engage, really connect with your prospects. The same goes for your customers. Caring strengthens loyalty. Never forget your customers. Help them. Care about them. They will stay loyal and refer you great customers year in and year out.

Find New Ways to Engage to Prosper – Get Back to Basics

Think of ways you can better engage your prospects and existing customers. It is well worth the effort, particularly in this coming age of the new customer who values it. Or are just going back to the way business used to be? We used to earn it! We earned customers by nurturing a great relationship. It isn’t necessarily a new type of customer, it is just that customers are running the show and markets now, not the businesses.  

Today’s Video is on Giving Prospects Value First

Learn When and Where You and / or Your Company Appear in the Search Engine Results

For instance, I have my name and company name entered into Google Alerts. So every time it sees those parameters in the Search Engine results for Google and its partners, alerts sends me an email and shows me the referenced URL and a summary of my information. I can quickly see what blogs and article sites are publishing my articles, who is linking to our website and blog, as well as see, the buzz and conversations about me and ABC Business Consulting.

Keep Up on Your Competitors and Partners Alike

Entering parameters like your competitors’ company names, product names and personal names will provide you a wealth of information on a daily basis. Same goes for your partners. This really is invaluable intelligence to keep your company well positioned in the markets and strengthening your competitive edge.  

For SEO Keyword Opportunity

Getting alerts in certain keyword strings can quickly help you determine whether the keyword string is good for you and if so, how to approach your Search Engine Optimization (SEO) so you can take advantage of the market opportunity. The internet changes quickly, but these alerts can keep you ahead of these changes, capitalizing on the opportunities presented.

For Industry and Market Updates and Trends

See what the experts are writing about concerning your industry and market. Another great data input for your Market Positioning Strategy.

Track the Social Networks

Understanding how your social media strategy is working is key. Google is paying more attention to social networks so use the alerts to gain that intelligence of what is happening in those networks. This keeps you supplied with data in real time, providing you opportunity to address emerging opportunities and problems very quickly.

Unlimited Amount of Uses

This is just the tip of the iceberg. I am sure you have a bunch of ideas on how you can use alerts to bolster your company’s business intelligence.

Today’s Video is on How to Use Google Alerts™

Optimize Each of Your Web Pages

Ø  Determine your best targeted keywords and create quality content around those keywords.

Ø  Optimize each web page title tag, keyword tag, description tag and URL address.

Ø  Utilize good website navigation and an organized webpage hierarchy.

Submit The Optimized Website to the Search Engines

Ø  Submit an XML Sitemap to Google, Bing, Yahoo and Ask

Ø  Use Social Bookmarks and Networks to publicize your quality content so these pages get quickly spidered and indexed.  

Get a Ton of In Content Relevant Back Links to Your Quality Content Pages

Ø  The more websites with content relevant to you that point back to your website from their own content will increase your SEO juice and result in rankings.

Ø  In content links verses a “mention” or directory listing on a linking website is a much better back link. Obtain these in content back links by getting published on blogs and article sites. Write quality content around subjects that relate to your main keywords and submit to blogs and article sites with links back to that content. Be sure to link back to your quality content that is relevant to the anchor text you are using. In other words, don’t just link back to your home page, link back to your inner pages that contain relevant content to the link text you are using.

Ø  Submit unique content to other sites. Too much duplicate content on the web won’t help you.

Ø  The higher the competition for a keyword, the more links you need. It could take thousands of back links to get positioned on page one of the search results (depending on the quality of the back links).

Ø  Look for quality back link partners to increase the effectiveness of your back links. These are harder to find and obtain so a good mix of PR 1 – PR 6 websites is best. Use quality and quantity back link strategies.

Consistency is Key

Concentrate on SEO an hour a day for 6 months. Then see where you are. You can’t do this overnight but the results are worth the effort.

Quality Content + In Content Back Links = The Keys to SEO Success

You will be ranked well if you develop quality content for web visitors, get that content indexed and then get that content noticed by other sites. This way the search engines see your content as relevant and important, and thus, rank you well.

Does this sound like a lot of work? Well, it is. This is why companies opt to use Search Engine Optimization Services of SEO experts. Be careful to find one that you can afford (many are highly expensive), and use an seo firm that clearly shows exactly what they will do and how they are accountable to results. Also ask for case studies of how they got clients ranked for hard to rank keywords, as well as, look to see how they are ranked for their own website. Be certain that they use White Hat SEO Strategies so you won’t be penalized by the search engines for seo trickery.  

Today’s Video is on Search Engine Optimization (SEO) Fundamentals

More WebProNews Videos

I Went Back to Business Basics

I went back to doing some market research, and seeing what other similar businesses were experiencing and what they were doing. I ended up tweaking my PPC campaigns; adjusting and reapplying my SEO; adjusting my website and blog design and flow; adjusting my sales process; adjusting how people “landed” in my business; adjusting my social network approach; and understanding more about what my best type of customer were experiencing in this recession and where they need help.

The “Ah-Ha!” Moment

What a makeover, huh? The good news, after three weeks of research and changing strategies, I implemented it last night and bam, quality business is already flowing today. Ah-Ha! I realized I need to do this more often to make sure things stay on track, and I adjust with the market. Practice what you preach, Frank, I hear my self saying!

Have You Had an “Ah-Ha!” Moment This Month?

If you haven’t you probably need to get back to basics like I did.

§  Reacquaint yourself with your customers and markets. Have their needs changed? What direction is your market moving?

§  Are there new markets arising you can tap into?

§  Look into your sales and marketing process. Is it still working for today’s business climate?

§  What’s the ROI for your current advertising campaigns?

§  Get in touch with your business mentors and fellow business owners. Ask them how business is going for them. You will be surprised by the quality of solutions you can find when conversing and brainstorming with a fellow business person (and it helps them too).

§  Go online and see how other competitors and related businesses are approaching the business climate and markets. You’ll pick up some great insights. Read their blogs and subscribe to their newsletters.

§  Do you need objective advice? Do you need an objective assessment of your business? You may want to consider hiring a Business Consultant to help.

§  Determine where your business is going. Do you like the direction? Do you need to make changes to your Strategic Plan?

To Be Successful You Need At Least One Big “Ah-Ha!” Moment a Month

Don’t get too busy working “in” your business. Remember to apply yourself and your team monthly toward working “on” your business. The distinction is huge. Stay connected with your customers, prospects and markets. They will tell you where you need to go Strategically. Then just figure out how to do it and adjust. Do it monthly!

Today’s Video is on Decision Making, Strategic Planning and Opportunities

Without Good Employees, a Company is Just Throwing Its Money Away

You can pour dollars into Marketing, advertising and product development, but with out good employees to implement these vital evolutions, you are just throwing away your money. It is the employee who will bring more business in the door. The higher the quality of the employee, the improved skill set of the employee, and the happiness of the employee all add up to success for a business, making its investments into growing the company much more successful and profitable.

Concentrate First on Getting Good Employees

Before pouring your business investment cash into a robust Marketing and Advertising Campaign, or an aggressive Product Development initiative, make sure you have the right employees on board to successfully design and implement these programs. Bringing talent in house or training potential in house is a business investment that will pay ten fold when it is time to grow your business. A talented and skilled employee will obtain a far greater Return on Equity (ROE) with a mediocre product or service than an average employee with a stellar product or service.

Train Your Employees Well

I see a lot of companies who have great talent in house or acquired great talent, but their training was so mediocre that the personnel investment was simply being wasted. Well trained employees will find ways to innovate, cut costs and improve profits and profitability. Give your employees the opportunity to be a great investment for you and a bigger payoff for your ROE. You will gain the best potential out of all your employees by providing ample opportunities to receive training.

Support Education for Your Employees

Acquiring new employees can be expensive. Improve your skill and talent base by supporting education of your employees, helping them to reach higher potential, and in return, help you achieve a better return on equity. Marketing and Advertising are very expensive. Supporting the education of your employees in those areas will help you minimize those costs and get a much better ROI for those dollars spent, whether you decide to bring some of that function in house or more effectively deal with outsourced marketing and advertising groups.  You can foster better innovation and product development by giving your employees incentives to go after more education. This will spawn their creativity, while making them more productive.  

Treat Your Employees Well

Spend time on your Compensation and Benefits Packages. Normally if designed well, compensation and benefits packages will more than pay for themselves with the return on productivity. Also a good employee package can attract higher talent for less dollars spent. For many talented employees, it isn’t just about salary. It is about growth, stimulation, incentives, and most importantly, happiness. Think of ways to foster a great environment in your company for employees, and the payoff in company profits will be significant. Happy, well trained and skilled employees will help you attract more talented people in the future for much less investment. The company environment is what will attract them primarily with salary and compensation coming in second. Happy Employees = Productive Employees = Company Profits

When You Have Good and Happy Employees

Now is the time to make your move. Your investment into your company to grow and sustain it will be much more profitable. Innovation will soar. Creativity will spawn great product development. Enthused employees will become your best marketing and advertising channels. Your ROI and ROE will be much better allocated, giving you the opportunity to sustain growth in your business. Also, you will retain your best talent and significantly reduce your turnover rate, which can be the biggest reason why companies lose profits and fail.

So before you spend a bunch of hard earned dollars into growing your business, think about whether you have the right employees and company culture in place to make it happen for you. Also review your Executive and Management levels to ensure they will help foster employee growth and happiness. If not, make those changes first on the upper levels. This needs to be a top-down thing to be successful.

Video Resource: Finding and Retaining Good Employees

Reasons Why SEO is Superior to CPC

ü  You don’t have to pay CPC fees every time someone clicks on your link, whether they are a hot buyer or someone just surfing for info.

ü  Top five positioning in the General Search Results shows credibility and relevancy, which turns into high click thru rates and conversion rates. CPC ads don’t necessarily have either.

ü  SEO can be as targeted as CPC so you can zoom in on the right type of customer.

ü  The general search results normally grab the initial attention of an internet searcher and then CPC. Don’t you want to have first dibs?

ü  A general search result displays a page title and detailed description of the page, which is much more comprehensive than a CPC ad’s title and description. This gives you a much better chance of being clicked on.

SEO is Hard Work

While there are a lot of reasons why SEO is superior to CPC, it takes a lot of work. You need to have solid, relevant content and lots of back links from other sites validating your website to get in the top 5 general search results. With out top 5 placement in the general search results, you won’t receive quality traffic. SEO takes time and consistency, while CPC can be implemented in a day and be on page one of the search engines.

SEO can Help Your CPC Ads

Good SEO can also help you rank better in the CPC sponsored ad area for a lower cost per click. Optimized web pages and relevancy work in favor of your CPC ads.

Use CPC to Help Your SEO

Determining where to spend your energies in SEO is very important. Identifying what keywords will be most profitable for you is absolutely key in SEO, so you know what keyword areas to optimize for the type of business and customer you need to be successful. CPC campaigns can quickly determine what keywords and pricing levels work the best. Then take that research and optimize your website for it.

Use CPC with SEO

Since SEO takes time to work, especially if you are going for top 5 placement, using CPC where you aren’t ranking well is effective until you are well positioned and/or are receiving enough organic business from a particular keyword. Also sometimes you will rank higher on one search engine verses the other so CPC can help you on the search engines where you need better exposure.

For more help on SEO Strategies, please see my Search Engine Optimization Article.

Video Resource: PPC vs SEO

An example of one of these Enterprise Labs is the Kauffman Labs, which picks up to 20 founding groups per sector to go through their 6 month program to successfully start up. They provide the necessary education, tools, experts, mentorship, relationships, business modeling and the such for founding members of a start up to successfully obtain venture capital and come to market. And you don’t have to have a pedigree education to apply!

The competition is stiff but the process of competing is a great exercise for any start up, whether or not you are selected for the program. You gain so much experience and knowledge in the process of applying and competing, that it is highly advantageous. It gives you a great idea where you stand as a viable start up looking for VC.

Kauffman provides a plethora of resources for entrepreneurs, including Entrepreneurship.org, Kauffman FastTrac and the Urban Entrepreneur Partnership. Take advantage of these programs and resources from Kauffman and other foundations!

Video Resource: Kauffman Labs

#1 - Business Track Record

Showing how you have run a successful business in the past or had an influential hand in running a successful business is critically important.

#2 – Experience

Detail how you have specific experience for the type of business, customer and market.

#3 – Niche Market Identification

Funders want to know you have narrowed down your customers into a profitable Market Niche which you serve well.

# 4 – Cash Flow

A Cash Flowing business is a much easier sell to a funder.

The KISS acronym applies. Keep it Simple. Apply these four key areas to your business and your funding search will certainly improve. Make sure you have a solid Loan Package and Business Plan to present to funders. Good luck!

For more information, please see my articles on Business Finance.

Video Resource:  The Importance of Cash Flow for Bank Finance

Ever heard of Crowd Funding? Want to raise capital for your business with out paying an interest rate or giving up equity? Crowd funding provides donations to your business for a reward and can be a viable capital raising strategy that has a strong social media influence.

Its Origins

Crowd Funding grew out of the internet phenomenon of raising donations for charities, political candidates, etc.  It was then used and now used pretty heavily to raise funds for musicians, artists and independent film makers. It has now evolved into a viable strategy for companies to raise funds.

How it Works

You register your business proposal on a Crowd Funding website like RocketHub or KickStarter. You provide different rewards for different levels of donations. Donation levels range from $5 to $1,000, and the larger the donation, the better the reward. Rewards aren’t an interest rate or equity stake, instead it is a thank you letter, a gift, a mention on a website, name of the donor put somewhere prominent, discounts, free products and so forth. Up to $250,000 has been raised using this method and many use it to raise $5,000 - $15,000. The Crowd Funding service takes a percentage of the total amount raised.  

Social Network Element

The success of Crowd Funding depends on its donors and those seeking the funding to spread the news among their social networks, particularly through FaceBook, Twitter, MySpace, YouTube and the like. It is important you have a planned fund raising strategy going in because these Crowd Funding services require you to raise the entire amount you are seeking in a certain time period, otherwise you don’t get any funding. Many who do this strategy correctly will raise more than they need.  

Use Crowd Funding to Get Closer to Your Customers

This is a real viable platform for you to really engage customers in your business, both existing ones and prospects. It gives them a real involvement in the success of your business and cements that necessary bond you need to really have “sticky” customers. Can you think of all the possibilities?

How to Do It

I recommend you go to the different Crowd Funding websites and see how it is done. You will see projects that successfully raised money and those who didn’t. Normally those who didn’t had a “wish” or “dream” rather than a viable plan. You can also gain some invaluable tips on what works for soliciting donors to your project by studying successful ones. Looking at the different projects also gives you good ideas on the different rewards you can offer and which ones worked. You will also see the dollar ranges that where most successful, i.e. $35 donation level with the right reward seems to be a hot level.

Be careful to see what type of projects and businesses are promoted on the Crowd Funding service and if it meets what you are trying to do. Also, some are really venture raising sites, which require an equity stake or other type of pay back. The two websites I mentioned seem to be good ones for most businesses and are true Crowd Funding platforms, but do your homework and you can find others too.

Video Resources

What is Crowd Funding and How it Works

Different Crowd Funding Services and Platforms

Starting and growing a successful company is hard. Business knowledge and experience significantly reduce the learning curve and help put a company on a path toward success. There are many organizations out there that can help you, such as SCORE, SBA, SBDC and so forth. But dedicated volunteer advisors and mentors can be a real plus for a company needing expert help and direction.

So the where can you find these people to volunteer their time to help you succeed?

There are often local entrepreneurial and venture groups who have experienced advisors and mentors ready and willing to help you. Or you can do your own research for the right candidates and approach them.

Better yet, there is a new organization called the Founder Space that links company founders with different types of mentors and advisors for close personal help and assistance. The website also provides answers to any questions business founders may have. Furthermore, it links angel investors with founder members. All of this for free. Can’t beat that!

As a Business Consultant, I always encourage companies to have mentors and advisors who can provide non-paid, experienced and objective advice as a company forms and implements its Business Plan. Find yours today!

Video Resource: How to Find a Good Business Mentor