Breaking Business Plans Down to Smaller Steps

Most of us know what a business plan is. We know that it includes product information, marketing strategies, financing, facilities and a customer profile. Yet how many of us know that the comprehensive report is just a piece of paper without the commitment of the owner? That’s right it is “garbage” without strong psychological traits that help to adhere to the plan. A business plan changes depending on the personality strengths of the owner. Within the business plan it is beneficial to map out the financial budget for a certain length of time. In most businesses this plan includes all major expenses for the year. Adhering to a year plan may be difficult because they are not able to do that in their personal lives. For example, if one has a hard time saving 10% of their income how are they going to adhere to a budget that requires them to put money away for future development in their small business. The plan may include a year improvement plan but should be broken down into monthly or weekly goals so that the owner can follow it closely. Let’s say an owner wants to build additional fresh fruit space and it is going to cost him/her about 8,000 dollars. The owner hasn’t been able to put this money away for the past couple of years due to inability to stay committed. Then have them take $200 out of their earnings each week by writing a check and placing it in a box. At the end of the year they can count up the checks, rip them up and write one big one for their expansion project. The same applies to marketing. If an owner wants to market to everyone in his neighborhood who has children it doesn’t make sense to just state this fact and then not break it down into steps. For a small owner it may appear as though the task is too big him/her to handle. Break it down so that this month they will purchase the demographics list of homeowners with children, then the next week develop the sales letter, the third week turn it into the printer, so on and so forth. By breaking down larger business plans into small steps small managers are more able to keep focus on building and developing their long-term goals. Both the yearly and the monthly/weekly goals complement each other. The overall business plan acts as the ultimate improvement while the monthly/weekly goals acts like the road map. It is important to remember that the ultimate achievement of goals depends on the actually personality and traits of the owner. Writing out strategies that don’t follow the normal way they work and look at life is likely to be unfulfilled.

How To Select A Consultant - The Three Imperatives

Copyright © 2006 The National Learning Institute

As a manager many years ago when faced with my first challenge of selecting an external consultant, I found myself all at sea.  Fortunately for me, I intuitively hit two of the three selection targets.  The project was to produce a communication video, so it was relatively easy to see and compare what each consultant had previously produced.  I had a number of consultants to choose from, but finally chose the one that I felt most comfortable with and whose work impressed me most.  The project was succesful and in the process, I learned a lot.

Since that time, I have had to employ a number of consultants, I have been a consultant myself for almost 20 years, and I have worked with many other consultancies both large and small.  The following suggestions for selecting a consultant are based on my experience as a manager and in the consultancy field.

What are the three targets that one must hit to successfully select a consultant?  (Note; I am using the term “consultant” to refer to either one person or a consultancy firm).  Firstly and most obviously, the consultant must be able to actually do the work.  Secondly, the consultant must be able to fit in with the people in your organisation and particularly those who will be working on this project.  Finally, if the consultant is good, you should always improve your own knowledge as a result of the project.

1. Can the consultant do the work?  Seems obvious, but there are some traps.  For instance, I remember when starting out as a consultant in partnership with another (who was also new to the role), submitting a tender for a fairly large job and being selected in the final few for interview.  Individually, we’d had some experience in the type of work, but not as a partnership, nor had we worked in the prospective client’s industry.  We won the job.  Why?  The client saw in us some creativity and freshness that was not evident in our competitors.  However, this was an unusual client.  Normally, I would not suggest taking on a consultant (like us) who has not had the depth nor breadth of experience in the project.  So, unless one of your criteria is “freshness”, in terms of selecting for experience here are some tips:

• What are your specifications?  Be very clear on the outputs you will require in the project.  These should always be measured in terms of quality, quantity, time and cost.  Use these output criteria to compare consultants.

• Who has recommended this consultant?  Check their references – ask for the contact of the last job they did.  When checking references, use your above “output criteria” as a guide.

• Are you looking for someone to implement solutions to a problem you have identified, or are you looking for someone to help you identify and clarify the problem?  Or both?  Sometimes it can be useful to split the project into these two parts.

• In discussion with the prospective consultants, do they really give you the time to say what you want before jumping to conclsuons?  If they appear to “have all the answers”, chances are they do not listen very well.

• Does their suggested solution appear to be specifically designed for you or is it a “one size fits all”?  Be wary if it is not specifically designed to meet your project criteria.

• Do they explain the things they can’t do as well as those they can?  This is always a good test of integrity, truefulness and reliability.

• Is their initial response to your request up to your quality standards, sufficiently detailed (but not overly so) to make a decision, and within your time expectations?

• Does the consultant have depth of expertise in the subject matter and breadth of expertise in its application?

• Ask the consultant what is unique about him or her?  What makes them stand out from all the other consultants you might choose?

2. Secondly, will the consultant fit in with the people they will be working with?  This is a critical implementation issue, as whilst they might be able to do the work, if they can’t work harmoniously with the people, the results will be less than optimal.  For instance, we once worked on a major government project (total budget in excess of M$43) where the client continually kept us at arm’s length (for example, on a residential workshop, we were not encouraged to eat or mix socially with the client project leaders).  We met the output requirements for the client, but had we been allowed to work more closely with the client, they would have received a lot more value added service.  In this case, the client should have selected another consultant.

The following tips will help ensure you get the right client/consultant match.

• Is the consultant likely to be able to gain the respect and trust of your key stakeholders?

• Could you trust this person (people)?

• What is the process they will use? i.e, How will they work within the organisation?  How will they be seen?  Try to visualise the consultant working with you and the other people as they complete the project.  Will it work?  Is it likely to be a good partnership?

• Who specifically (from the consultancy) will be working on the project and what will be their role?  For example, will the people you are interviewing be carrying out the work?  Be wary of consultancies that have “front people” that win the jobs, then send in less experienced people to do the work.

• Ask the consultant to describe what a “good working relationship” looks like to them.  Is the description the consultant gives you of a “good working relationship” likely to be, and to be seen to be, a partnership?

3. Thirdly, will you be able ot learn from this consultant?  One of the reasons you hire a consultant is that you (or your organisation) does not have the depth nor breadth of experienece to successfully carry out the project.  One of your aims should be to increase your own experience through this project.  For example:

• Why did you decide to employ a consultant?  What were the gaps you could not fill internally?

• What will you be likely to learn from this consultant?

• Will you increase your knowledge of both process management (how the consultant works) as well as content management (their area of expertise)?

• Will the consultant strengthen and support your role in the organisation?

Finally, if all of your criteria have been met and you cannot decide between two apprently equal consultants, consider setting them a small task or part of the project to complete as part of the selection process.  For example, some years ago we were in competition with another large consultancy for a sizeable project with an initial budget in excess of M$1.  The client could not decide between the two of us, so he asked us each to undertake a small project (for which he paid us both), which would ultimately become part of the larger project.  When we each completed the small project, he had an excellent idea of both our capability and the manner in which we worked.  After all, isn’t the final selection criterion is actually trying the consultant out?

Oh, yes.  In case you’re wondering, we won the job!

Export And Sell Your Products To Mexico By The Truckload

Selling products to Mexico is easier than ever. Mexico is the #1 importer of US products in the world. There is a need for all types of products including food, beverages, electronics, cars, tools, candy, toys, clothing, everything.

Mexicans are so eager to buy that they come to the USA looking for products instead of waiting around for someone to call them and sell them something. They visit US trade shows, organizations and many companies. I constantly have someone in San Diego visiting from Mexico to speak with me on how they can find products of all kinds to export.

Who’s looking for products? Mainly wholesale distributors and retailers. They are looking for products to sell in retail stores or to other distributors in Mexico, most of the time they will buy truckloads of product and export them to Mexico themselves, handling the shipping, imports and tariffs.

Why do they do this? Why are they so eager to buy US products? Simple, they don’t have Mexican made products they can sell and they want to be the first to carry a new American product. They know if they are the first to market with a new product they can make a lot of money very fast. After that they just restock their customer’s shelves.

The big question I’m asked by my consulting clients is: how do I get started exporting to Mexico?

To export to Mexico you can be passive or active. You can go after the business or wait until they come looking for you, and believe me, if you have a good product, eventually they will.

---Passive Approach---

The passive approach to getting business is to make sure Mexican businesspeople can find you. Here are a few tactics on how to reach exporters:

-You have to make sure your products are in US trade shows. You don’t have to go yourself, maybe a customer sells at trade shows or you hire a broker that goes to trade shows.

-Make sure all your products and sales materials have an international phone number (not just a USA toll free number) as well as an email address. This includes your website, product labels, business cards and brochures.

-Have the right information ready. Make sure you already know what your international price will be. It’s usually much lower than your US price, especially if they will pay the export fees and transportation. You also need all the product specifications like weight, dimensions, case count or pallet count.

---Active Approach---

If you are serious about selling to Mexico and would like to do it NOW you have to be more active. You can’t just wait for people to find you because it can take months or even years if you don’t have any promotions in the marketplace.

The first thing you have to do is learn more about your target market. How much are people paying in Mexico for your product or a similar product? How much are they paying to import and transport those products? What are the profit margins for the distributors and retailers? Where could you sell your products? How many stores are there in Mexico?

Once you learn more about your target market and you develop your price strategy it’s time to find customers. Visit Mexican trade shows, look for US distributors already selling in Mexico and find brokers.

After you educate yourself a bit more on the Mexican marketplace you also need to determine what kind of support your new found customers will need in Mexico. Do you have a product that sells itself or do you need store promotion, POS (Point of Sale) material, sales commissions, or some other support.

Many times my customers tell me “I just want to sell my product in the USA and someone can export it, sell it, merchandise it and distribute it”. Well, this is possible. I’ve helped companies sell products like mayonnaise, water, margarine and other products that sell themselves in this fashion. But if your product is not a “first necessity” product or name brand, chances are you’ll either have to do some promotion or give a very good price to distributors and importers.

Explode Your Consulting Income

Here are just a few ways to increase and diversify your income from your consulting business.

1. Sell More Services to Your Existing Clients

Instead of spending all that time and money trying to get new business, why not try to sell more services to your existing client base?

If you are an accounting and tax consulting firm, for example, you likely have clients who need some assistance in their record keeping and documentation. In addition to your year-end tax services, could you provide monthly bookkeeping and financial statements, accounting system setups, training in accounting software, or other services to assist your client?

Monthly services, in addition to annually billed fees, will help you smooth out your cashflow and minimize the seasonal nature of your business.

2. Mass Market Your Advice by Productizing Your Services

Could you produce a folio, special report, newsletter, e-book, book, audio cassette, video, or course? If so, you could enjoy making money even when you're not billing for your time. While asleep or on vacation, the sale of your information products could be generating additional income for you.

Sell such products through direct mail, mail order, exporting, and Internet marketing (your own website, your own affiliate programs, eBay auctions, and so on).

As well as the passive, residual income that information products can produce for you, they also help establish your credentials as an expert. This, in turn, produces more consulting opportunities for you.

3. Perform Group Consulting

Seminars, workshops, and teleclasses enable you to help many participants in a cost-effective manner. In addition to paying for admission, your attendees may also purchase some of your information products or even become your regular consulting clients.

4. Consider Additional Markets

Could you sell your consulting services to federal, state, provincial, or municipal governments? Could you be an expert trial witness?

If you consult with local clients, could you extend your reach nationally or internationally by using the telephone and Internet?

These few ideas are a starting point for you to brainstorm all the possibilities for exploding your consulting income.