What you need to know about business plans

Let’s face it.  No one comes rushing up to me asking to help them prepare a business plan.  The very words ‘business plan’ seem to produce an immediate glaze over some solo entrepreneur’s eyes.  Business plans can seem boring on the surface but they are the foundation of a solid business.  Yeah, I know, that still sounds boring.  Whoever said everything about business had to be exciting?

I’m passionate about educating solo entrepreneurs about the importance of planning because the statistics are pretty grim for those who skip this vital step.  One study shows that only 5% of business owners have a business plan.   A separate study shows that 95% of businesses don’t last 5 years.   Think there’s a correlation there?  It’s one of those things that you know is good for you but hard to believe you need it until it’s too late.

So why don’t people take the time to put a plan together?  Mainly because they hear the words business plan and think it’s a bunch of useless information that they will never need.  Not so and that is why I’m making it my mission to inform business owners about the benefits of doing a business plan.  In order to understand the benefits it’s important to know the different parts of the plan.  Now, this can be as complicated as you want it to be but I prefer a simple approach so I’ll share what I cover with my clients:

1)       Overview.  The overview contains the most basic information about your business.  But don’t be fooled.  Just because it’s basic doesn’t mean it’s not important.  We review several categories but the most important one is the company mission statement.  The stated purpose for your company.  Many business owners gloss over this but it provides a reference point that helps make decisions down the road that are in line with why the company exists.

2)      Products and Services.  You need to know what you’re selling and at what price.  Spending some time on this section helps ensure that you have the right mix to support your revenue goals.  One area that most solo entrepreneurs have difficulty with is pricing.  The pricing challenges get ironed out in the section.

3)      Marketing Plan.  The all important marketing plan.  Without it you will end spending all kinds of time and money on marketing activities that won’t get the results you need.

4)      Operation Plan.  This section covers how you will do business.  Another section that the solo entrepreneur can easily brush off with the misguided notion that it doesn’t apply because they are working out of their home office.   If you don’t want your business running you then you want to define your hours of operation in this section along with other important information.

5)      Management and Organization.  Again, another section that is easy for the solo entrepreneur to overlook because you work alone right?  Well, this isn’t necessarily about management of employees.  This section allows you to think about functions you can outsource like accounting and virtual assistance.

I hope I’ve at least provided a little food for thought and have spiked your curiosity a little.  My encouragement for you is to at least take a closer look if you haven’t done a plan yet.   I take the pain out of it as much as possible by walking my clients through the process hand in hand.  I’ve never had any regret the process.   Why?  Because what they learn about themselves (I include a strengths assessment in my program) and their business during the process provides an indescribable level of belief and commitment that just wasn’t there before.   It’s why I do what I do.

Want to talk about your plan and see if you have any gaps?  Schedule a complimentary Get Focused consultation and we’ll check it out.

Remember, you can achieve whatever you believe as long as you are willing to work for it!

Are YOU your competitive advantage?

How much do you know about yourself? Do you know your strengths? Do you know how to read other people? Willingness to invest in personal development is an often overlooked, but extremely important, trait of a successful business owner.
Here are 3 areas where an investment in understanding your personality will pay off:
Work with the clients you connect with the best. When it comes to marketing you always hear about target market but what about your ideal client? When I work with my clients to define their ideal client we don’t stop at demographics. We dig into their favorite clients, the ones they want to fill their practice with, and what it is about them that makes them so fun and easy to work with. Understanding yourself is the first step. We usually tend to attract people who are like us so the more we understand ourselves and how we operate at peak performance the easier it is to identify those same traits, or complementary traits, in others. The bottom line: dig in and find out what makes you perform at your peak and start attracting others who share your strengths.
Become a better salesperson. Have you ever wondered why your prospect’s eyes glaze over when you launch into your presentation? Or why some prospects need a more information to make a decision even though you feel like you have provided everything they need to know? If you are a very detail-oriented person you may feel most comfortable when you have all of your bases covered and that may include providing your prospect with an inches thick presentation which can leave them overwhelmed with information. If you need that level of detail by all means gather it all up. Just keep it to yourself unless your prospect wants it too. On the other hand, if you require little information to make decisions you may assume other people are the same and that can leave some prospects feeling like they do not have enough details to make a decision. The bottom line: increase your self-awareness and increase your sales.
Build a strong network. You may have noticed that you connect better with some people than you do with others. In fact, some people just rub you the wrong way. You may think that as a solo entrepreneur you don’t need to worry about getting along with people other than your prospects and clients but that is far from reality. One of the most important tool in the solo entrepreneur’s toolbox is your network. Your network includes referral partners, joint venture partners, and leaders in the community. The more clear you are about your strengths the more you can focus on building relationships with others who share the same values and vision that you do. The bottom line: steel sharpens steel so invest your time in building relationships with people who make you better, and vice versa.
Personal self development is a skill you have total control over. It is a fact that successful people invest both their time and money heavily in personal and professional development because it gives them an edge over their competition. This is why I include a strengths assessment when I’m working with a client to develop their business plan. It’s the secret sauce that gives them an edge. If you want to gain a competitive advantage, consider an assessment to uncover your strengths. A great place to start is with a DiSC personality assessment. Once you know yourself, the sky’s the limit!

Be yourself – you’re perfect!

Be yourself and trust that the right people will find you.  Too often it seems like we wear a mask trying to please everyone because we are afraid someone won’t like us or we will lose a potential client.  Guess what?  Not everyone is going to like us or want to work with us.  Guess what else?  Not everyone is our ideal client or someone we would want to work with.  Not because there is something wrong with us or the other person, simply because some personality types get along better with others.  What does all this mean?  It means you can confidently be yourself knowing that you will attract your ideal client.

The first step is to understand yourself and your personality.  The second step is learning how to read other people’s personality.  I use the DiSC® model for personality assessments.  It is quick and easy to understand.  In the DiSC® model there are four personality types – dominance, influence, steadiness, and conscientious.

Read each of these statements and choose the phrase that best describe you:

• Fast-paced and outspoken or cautious and reflective.
• Questionning and skeptical or accepting and warm

Now, pair up the statements and see where you fit:

Fast-paced & outspoken and questioning & skeptical is for dominance.  This usually means driven by achievement, goal-oriented, quick thinking, and extreme multi-tasker.

Fast-paced & outspoken and accepting & warm is influence.  These people are usually the party starters, they love to have fun, they are very socialable and are all about getting people together to get things done.

Questioning & skeptical and cautious & reflective is the conscientious personality type, otherwise known as analytical.  They like to think things through, will ask a ton of questions, and proceed with caution.

Questioning & skeptical and accepting & warm is the steadiness, or supportive personality type.  These are the people who everyone comes to with their problems, they are good listeners, and love to help people.

Once you’ve identified yourself, and have celebrated your goodness, do the same thing with your current and past clients.  What patterns do you see?  Who are you attracting?  You will notice that your favorite clients probably fit into one category and your least favorite clients fit into another.  This is a fun exercise that helps you understand and appreciate your own unique qualities which in turn helps your confidently go out into the world knowing that you will attract exactly the right people just by being your own perfect self.  Want a more in-depth assessment?  Check out www.disconlineassessment.com.

My encouragement for you this week is that you will take time to fully appreciate yourself and the gifts that you bring.  Remember, you can achieve whatever you believe as long as you are willing to work for it!  Visit The Coach & Mentor Group to learn more.

Dealing with Difficult People

The key to dealing difficult people is self-awareness.  People come with a wide variety of personality types and understanding what your type is will help you appreciate other people’s styles.  There will always be some people you seem to naturally get along with better than others and usually it’s because they have the same primary or seconday personality as you do.  That’s pretty much common sense, right?

Think about it, if you are a very fast-paced, spontaneous, outgoing person you are going to have a hard time dealing with someone who is cautious when making decisions, asks a lot questions, and doesn’t like to be rushed.   If you weren’t aware that this is just this person’s personality you might become impatient, annoyed, or irritated and have a negative opinion of the person.  However, once you understand their personality type you can appreciate their qualities and learn to adapt to them.  One way to appreciate this personality is to bring them in when details are important.  The fast-paced, spontaneous personality is more likely to overlook details in the rush to get things done.

Another personality type is the cautious, but warm personality.  This is the person who everyone comes to with their problems because they are a good listener and don’t give advice unless it’s asked for and sometime not even then.  This is person is unlikely to voice their opinion and usually goes with the flow.  They may become uncomfortable in conflict situations and shut down.  The very direct, blunt personality may drive them to insanity, though they would never say so!  On the other hand, because this person enjoys being with other people the may be attracted to more outgoing personalities who initiate activities.

The thing about “difficult” people is that it is all based on perception and where you’re at.  There is a time and a place for every personality.  Variety is the spice of life and what makes the world go round.  Since the only person you change is yourself, the best way to deal with people is to learn how to read them and how to appreciate the different styles.

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