Putting Together A Business Plan

Avoiding Communication Lines Breakdown

As a company grows, one area that often becomes a bottleneck is communication. There are certain dynamics that take place in communications, as the number of people involved increases. For example, in a small, two-person company, there is often the greatest opportunity for direct conversation and discussion throughout the day. There are only two possibilities for verbal communication and it’s usually quick, easy and descriptive.

If, however, a third member is added to the team, then six possible lines of communication are created - an increase of 300%. Direct communication becomes more difficult and often messages are interpreted (or misinterpreted) in a variety of different ways.

Now, add a fourth team member and your communication possibilities increase to 12.  A fifth person increases the possibilities to 20. That’s 20 different ways a message can be sent and interpreted.

At this point a “communication failure” can occur. At a time when the company should be focusing on growth and expansion, it is instead faced with confusion, misunderstanding and wasted time.

Here are a few tips for avoiding the breakdowns that may occur when the lines of communication become overwhelming:

n     Periodically pull together all members of the team. Choose one time to convey your message, new policies etc…. If possible, find a time when there are few distractions, such as when machines are shut down or when the phones aren't ringing. There is often a strong case to meet away from the usual place of work.

n     If the message you plan to convey is long or complex, present it verbally, then distribute written copies of the same statement. This technique increases retention and understanding substantially.

n     When there are at least five team members, the company’s communications system becomes more formal and written communications - notes, reports, internal emails - become a part of daily operations.

n     When holding meetings, provide a quick review of what has transpired since the last meeting and what should be happening before the next one. The key to these meetings is that they be brief and held on a regular basis. It may be worthwhile to keep simple notes along the lines of:

1          what was discussed

2          what is pending

3          what should be followed up

4          items previous brought up that have been successfully handled

5          what should be brought up at the next meeting …… and why

By having scheduled meetings, each team member knows that s/he will be briefed on all company matters that pertain to them. The lines of communication remain intact and one clear message is received by all. In addition, people will feel a bigger part of the company and will invariably respond positively to the common goals/growth objectives.

Constructive time management

Most management textbooks define resources as those things required to get the job done. People, money, machines, raw materials and physical facilities are all obvious examples. Yet there is another type of resource that we tend to overlook. That resource is time.

All of your resources can be replaced except for time. If people leave, you can employ others. If you lose money, you can declare bankruptcy, find new investors and try again. If you lose a shipment of materials, you can send for a replacement. However, if you waste time it is lost forever and can never be replaced or retrieved.

Would you agree or disagree with the following statement: “I could get more work done if I worked harder?” It’s a fallacy that hard work will always result in productivity. Thus, the goal of improved time management is not to work harder but to work smarter.

Here are some ways to save time through planning:

1. Commit yourself to yearly goals for personal development and professional accomplishment. Translate yearly goals into monthly goals and into TO DO lists that are revised weekly and daily.

2. Spend 20 minutes at the beginning of each week and 10 minutes at the start of each day planning your TO DO list. Ask yourself what you will achieve this week/day. Place these objectives into three categories according to their importance to you. Work on the most difficult category first, and then go on.

3. Create a time-analysis chart of your activities. Break your day into 15 minute blocks. After logging your activities for a week or so, you’ll have a representative sample of how your time is spent. Study the results. Decide what you will do to make better use of your time.

4. Do one thing at a time. Stay with a task until it’s completed. Quality usually suffers when we undertake several tasks at a time.

5. Carry a small card with you. On it, note everything that happens during the day that you want to remember. Mark down every commitment you make and every event you’ll need to recall.

6. Carry work or reading material with you everywhere. Be productive when others keep you waiting or when you’re stuck in traffic.

7. End the day by listing all of tomorrow’s important tasks.

In the morning, incorporate these tasks into your TO DO list. Since stockpiling time isn’t possible, all we can do is manage how well we actually spend it. In short, we save time by spending it wisely.

Improve Your Grip By Letting Go…..
Entrepreneur and businessman Jack Miller, who now owns a large and successful US stationery company, explains how he improved his grip on his company by simply "letting go".

"I do only those things that ONLY I can do"

That's a sign I had on my desk for a number of years. It is, believe me, a very, very tough rule to follow. But the more I am able to follow it, the more I am in overall control of the company.
Having started the company from scratch and moved through every part of the operation - selling, buying, picking and packing the orders, writing letters, answering phones, depositing the banking and so on - it was always tough "letting go" as we grew over the years.
Long, long after I should have, I was still personally writing too many letters, paying the suppliers and banking the checks. Now I have delegated almost everything and in every area of the operation there are now people who can do their job - jobs I used to do - better than I can. It may seem strange, but now I have better overall control than I ever did before. I can see the wider picture, because I have time to and I make better strategic decisions because I'm thinking about the broad view rather than concerning myself with the detail.
I've been giving a lot of thought to all this lately. I've thought of my father-in-law who, with his brother, ran a small grocery store during the beginning of the supermarket era. They could never bring themselves to trust anyone else enough to "give them the key to the shop". So, they always remained small, eventually selling out because they couldn't compete.
It happens a lot. I think one of the toughest things for an entrepreneur (and professional man managers) to do is to make the transition from doing everything themselves to "doing only those things that ONLY I can do" and leaving the others to people who can do them as well or better. But once that transition begins to be made, how much better the jobs all get done and how much pressure is removed. What's most amazing is how much more everyone enjoys what they are doing, because they are trusted to get on with it and given real responsibility.

I recommend it for everyone in business. But from experience, I can tell you it is not any easy transition. That's why I still keep that sign around my desk.

Putting Together A Business Plan

With bankruptcies and company liquidations reaching record high levels over the last few years, and with the economic situation showing signs of only a slow recovery in the short term, having a sound business plan is more important than ever.

That doesn't mean throwing together a few proposals so that your Bank Manager will give you a loan. Whether you are establishing a new business or already have one up and running, a properly thought out business plan can be a vital factor in increasing your chances of success.

At a time when statistics reveal that one firm in three is likely to fail in less than two years, it is comforting to know that those which start with a sound plan are twice as likely to succeed as those who do not.

Its primary role is to help you plan and control the development of your business. Once everything is up and running it's often easy to lose sight of your objectives. Your business plan will help you measure your success, and analyze any weaknesses you may have. You will be better equipped to deal with problems, such as late payers and poor cash flow. You will also find it far easier to explain points about your business to those whose cooperation and support you require - such as your Bank Manager, your employees and perhaps even your family.

If you are just starting up, your plan should cover points that may seem really obvious:

·         Identify your personal objectives, both short and medium term.

·         What are the strengths and weaknesses of your business - and those of the people involved in it?

·         Where will it be located and why?

·         Will you need to employ people or buy in any services?

·         How much will all this cost?

You will need to describe your products and services in detail. It's not enough just to say you sell a particular product.  Think about your unique selling points which will make you stand out from the rest.

·         You need to think about how much the product will cost you to buy in or manufacture and how much you will sell it for.

·         What is your policy on pricing?

·         Have you any plans for marketing?

·         What about the competition?

·         How do your products or services and prices compare?

If it sounds daunting, there’s no need to panic. Anyone drawing up a new business plan should seek independent advice. Someone who will take an objective overview is generally required; someone who may be able to detect flaws in the plan that you overlooked. This person should have the experience to make suggestions that will help you to bridge the gap. 

Once you have put your business plan together, do not leave it to gather dust in a bottom drawer! By referring back to it as your business comes together, you will be able to assess your progress and identify areas which are not developing quite as you had anticipated. The ability to anticipate difficulties and take appropriate action can often be the key factor which differentiates the successful business from that which fails to really get off the ground.

In a difficult economic climate, a good plan has to be worth the effort.