Business Finance Tips

Creating a marketing plan for your business is crucial. Without one, it would be difficult for a business to generate revenue and successfully make a profit. It’s essential you devise a plan that will clearly define the value of your products or services, with the end result benefiting your customers.

Gathering What Counts

There are four major areas that you must have information about before creating a marketing plan: business resume`, target market, product message, and ‘how-to’ get the message to prospective customers (advertising).

Business Resume: Clarity is the objective of a business resume`. Within the text, list the strengths of your product or service. Think of it as molding your knowledge. After all, would you write a marketing plan about something you know nothing about?

Target Market: Five simple questions will assist you in identifying your target market. Who are they? What is their age? What is the average income? What is their status? Do they have children? It’s important that you evaluate your target market to determine ‘what’ product or service would sell the best.

Product Message: A product message is a ‘direct call to action.’ This message must create value in the minds of everyone, that hears it, and for every feature, you offer a direct benefit to the customer must be demonstrated.

Advertising: Advertising is an appealing and compelling invitation to buy your product or service. It is an investment that should never be an expense. Finding the right advertisement takes trial and error, what marketers` refer to as “test” advertising. First time out of the box and you can’t expect immediate results.

Every business needs an outline of how they plan to approach the market. Make certain that you address the following questions in the process.

1. What medium is the most popular among your target market? (TV or Radio)

2. What is the percentage of participants in watching or listening to these mediums?

3. Do they read the local paper or magazine?

4. Should you consider direct mail?

Think of writing a marketing plan as breaking down the important elements and charting a path to success. These strategies will be of great assistance when faced with possibility of failure. Business owners need to step into the world of marketing with confidence and knowing where to begin writing your marketing plan is a start.

A NEW YEAR…a new plan

Here I sit at this familiar place in my life where the nostalgia of another year gone by crosses paths with the excitement of a new year ahead. I look back on the wonderful blessings that the past year brought and at the same time I reflect on the disappointments along the way that serve as a constant reminder that dreams are never easy. I hear so many artists lamenting over dreams that always seem to dangle just out of reach. And I remind them that for every wonderful opportunity, there are always many others that don’t work out – whether you’re a beginning artist or a seasoned one. I like to think that we’re given a gift without clear instructions on how to use it. And the instructions are given to us over time through opportunities big and small. And we need to focus on the journey, not the destination. For tomorrow is a new day. A new year. Okay, I’m rambling. Perhaps I should put the egg nog down and get to the reason for this month’s article – planning your year.

I’m not one for making resolutions at the beginning of a year. Mainly because I’m not one for keeping them and I already spent the last year creating lists of ways to improve myself and we see how that turned out. So even though I’m not a fan of resolutions, I am a fan of making a business plan. And the beginning of the year is the best time to make a business plan. As artists we often don’t see ourselves as business people, but if you want to sell your art successfully it helps if you come up with a plan. There has been much research on how the mere act of putting your plan on paper helps you achieve your goals.

Your business plan does not have to be complicated. It’s simply a plan for how you want to run your business in 2007. What are your goals? How will you try to reach those goals? What is your focus for the upcoming year? How will you plan out your expenses? These are the kinds of questions you want to ask.

The main reason that I like making a business plan is that it keeps me on track. It shows me where I want to focus my energies and my finances. When I think about how much money I need to bring in, it helps me have confidence when quoting fees. Having a plan helps me decide which jobs to take and which jobs to turn down because they don’t fit into the plan. And there’s always room in your plan for change because you wrote it. It’s your plan.

I can’t tell you how to write your business plan. That depends on you and your own personal dreams for the future. I can’t tell you where to get business or how much you need to spend to grow your business. There are certainly far more qualified people to speak on that subject. I would like to help you get the process going so I’m going to show you the bullet points that will be in my business plan for 2007. Use it as you wish, or come up with something of your own. These are just ideas to get you thinking about the year ahead.

Kelly’s Business Plan for 2007

1. Getting New Business…I’m going to ask myself who my customers will be for this year. Where will I go for new business? How will I approach them? What types of customers are best for what I do? I will probably make a list of three or four target audiences. For example: libraries, women’s conferences, storytelling festivals, corporate banquets. Throughout the year whenever I am faced with incoming business or outgoing expenses, I will ask myself how it fits into my plan. This really helps me from spending money in areas that don’t fit my focus.

2. Getting More Business from Old and Current Business…Do I stay in touch with my clients from the past? Do I send them reminders and updates to keep me fresh in their minds? Do I make the best use of my current clients? Do I ask them for referrals? One of the best ways to get repeat business is on the heels of current business. Ask them for names of other people who might like what you do.

3. Fee Structure and Discount Policy…What will I charge this year? How much do I need to bring in to meet my expenses and make a profit? Under what circumstances will I lower my rate? Will I do any pro bono work, and how will I determine what pro bono work to take? How will I quote my fees? What will be included? How will I phrase it when I quote them my fee? Think these things through in your mind and it will be much easier when you’re asked for a quote.

4. Product Sales and Product Creation…Will I create any product this year? How will I aim to sell more product this year? Do my products fit the audiences I have chosen to target this year? Am I making the most of my back-of-the-room sales?

5. Customer Service…Is there anything I want to do differently this year with my clients? Any new policies I want to incorporate? How are my customer service skills? Do I reply in a timely manner? Am I easy to work with?

6. Services that I offer…Do I want to offer a workshop this year or coaching? Is there a new program and/or a new audience that I want to target? Does my promotional material (web, brochure, etc.) reflect these new changes?

7. Networking…How will I get my name out in the community this year? What organizations will I join? What groups will I become active in?

8. Budget…How much do I need to live? What are my future monetary goals? What do I need to make this year to meet these goals and needs? How much can I spend to grow my business? Do I need to raise my rates to meet those needs?

9. Inventory…Will I track inventory? Will this be a manual process or an electronic process? Will I run it through my accounting package?

10. Continuing Education…What sort of education do I need this year? How much money can I afford to spend on workshops and conferences? Which workshops and conferences fit into my target market and business plan?

11. Material…How is my portfolio of creative material? Are there some things that are lacking? Does my material fit the audience I’ve chosen to target this year? Does my promotional material reflect my current portfolio? Is there a way to change my material so that it adds value in the marketplace?

And there you have a list of topics I have chosen for my business plan of 2007. You may have more topics on your list. Or you may just have one or two. Or you may choose not to do it at all. That’s okay. It’s YOUR plan. Make it simple and make it realistic.

I wish you all the best as we head into this new year. I hope you find peace and joy at every turn and that your disappointments pale in comparison to your blessings. We’ll talk more next month.

A client of mine called yesterday to say that he is on the verge of getting an offer from a large bank. Before they will extend him an offer the recruiter has requested that he submit a business plan outlining his plans to achieve his goals. The job is a wealth management role which would require that my client bring about $10 million in investment dollars to the job within the first year. If you are not familiar with this type of job it means that he needs to find and solicit individuals with that much money to invest and persuade them to invest the money through the bank.

My client is a relative newcomer to the community in which he currently resides so the potential employer wants to make sure he has a plan for finding and selling individuals in his new community on their wealth management services. Seems fair. But it got me thinking that, really, anyone starting a new job should create a plan before taking the job. The plan will probably have to be modified once you take the job because jobs frequently change over time. With that said, if you create a plan for adapting, learning, and succeeding in your new job before you start it will give you a good starting point and the associated confidence that comes with having a plan.

To give you a sense for how you might think about creating a plan let me walk you through a few elements that my client and I are incorporating into his plan:

Goal – we have a stated goal that is a specific, measurable, and achievable

Tactics – the specific actions that will be taken to achieve the goal

Analysis – we have analyzed our local market to determine which civic and professional organizations, philanthropic, and social/sporting groups my client should get involved with in order to meet people who have the characteristics of potential clients

Targeted List – we created a list of organizations that my client will join or has joined to start meeting potential clients

Every job is different so each plan is going to be different but you can use some of the thought process and some of these elements to help you get started when you create your own roadmap to success in your new job. I don’t necessarily recommend that you share your plan with your new boss or co-workers until you are sure you understand the expectations, politics, and goals required in the new job. The business plan is something you can create to give you a jump start before you commence work for a new company.

You’ve seen all the flow charts, you’ve heard all the lectures, you’ve listened to all the war stories, you’ve seen all the printed bound volumes on dusty shelves and in desk drawers, and you know you’ve got to do it.

This is the 4th article in a series The Business Plan for Small and Mid-sized companies. For the past thirty years I’ve been deeply involved with the Business and Marketing Planning Process as a planning consultant and as an operating manager. I have observed and concluded that the most difficult phase of this logical, pragmatic and critical business processes is the implementation.

All too often…

The Business Plan was created and written as an annual ritual after which the senior executives would sit back, congratulate each other; and have it printed and sent to the Board of Directors, lawyers and accountants and go back to running the business the same old way.

Or…

The business plan was created at the top level of the organization and the final result is presented as a “fait accompli” to the operating staff charged with getting the job done.

However, the senior executive of the Small or Mid-sized business must create the Business Plan with considerable collaborative input from the operating staff charged with implementation. The operating staff then feels it has a significant stake in both the outcome and performance of the Business Plan and direction of the enterprise. In my experience this operating staff then become the Planning cheerleaders and owners of the process; – a significant opportunity for the following years planning process.

I’m reminded of my personal experience as a Product and Brand Marketing Manager in the electronics industry. In general, the Product and Brand Manager has no direct line operating authority over the functional activities which carry out the strategies, tactics and actions of the Brand Marketing Plan. Therefore, The Product Manager’s key to success is to create a highly collaborative environment with the functional units during the preparation of the Marketing Plan anticipating the functional issues which will come to bear during implementation. In this way the functional units “buy into” the brands activities in most positive manner.

I created the two week Product and brand Management Course for the American Management Association and was privy to meeting thousands of product and brand managers from all industries and locations. They reinforced the view that their job was to create the collaborative planning and implementation environment described above if they were to achieve product success.

In my view the Product and brand Managers successful approach to the creation, writing and implementation of the Business and Marketing plans for their product success is a critical template for the senior executive of the small and Mid-sized company as they plan to exit the Recession and Take their Business to the Next Level. I’m not suggesting that the CEO suddenly operate in a “touchy- feely” manner but recognize that the operating staff charged with the getting the job can make a significant difference between success and failure. The CEO must leave the “it wasn’t invented here” attitude in the briefcase.

A janitorial cleaning service is one of the best businesses for a hardworking, blue collar person to start from scratch. Every business and every building needs to be cleaned once in a while – in some cases, many times each day. With the overhead involved with hiring employees to provide janitorial services, it is convenient for a company to outsource to a commercial janitorial service provider.

This is where you step in!

If you are reading this article, you are probably looking for advice on how to start a janitorial service. Hopefully the following information and advice will get you moving in the right direction.

Start Up Costs and Financing Sources:

$500 and up

It is possible to get started with almost no investment, but you will be in a much better position if you have a few hundred dollars of basic equipment available. Equipment for a full-scale commercial janitorial service may run many thousands of dollars.

Writing a sound business plan describing how to start a janitorial service in your area – including detailed market research and plans for future growth – may help you to secure some of your initial funding from venture capitalists or angel investors.

Pricing Guidelines for Service:

Base your time at $20 to $50 per hour (before taxes and expenses) and price your services according to the time you expect to spend on each task.

Itemize the exact services you intend to provide. Charging by the hour tends to make clients comfortable asking you to do more and more work for the same money. Be clear that you provide certain services for a certain price. By charging a flat fee, you will continually earn a better hourly rate as you improve and become more efficient.

Advertising and Marketing:

Get listed in the yellow pages under all of the main services you provide. This is more expensive than one general listing, but you can’t expect all of your potential clients to look under “Janitorial Services” when they are really looking for “Window Cleaners”.

Face-to-face selling can go either way. Some managers and store owners like the fortitude of this very direct way of marketing, but others find it very annoying – especially if they get a lot of people coming in and asking to wash the windows. Always obey “No Soliciting” signs.

Walk around town and identify businesses which look like they really need your help. Send a professional-looking brochure to the general manager.

Essential Equipment:

A janitorial cleaning service can start very small and build up as it grows more popular. It is sometimes possible to start out by using the equipment of the client companies, buying your own equipment with that revenue.

Get a unique uniform – and unique does not mean outrageous! A uniform looks much more professional than jeans, and it can provide a marketing service for you, as well. When people recognize your janitorial cleaning service working at the company down the street, it lends credibility to you when you approach them for a contract.

Much of the following equipment will become useful as your business expands:

Safety Equipment:
dust mask safety goggles heat resistant gloves heat resistant apron slip resistant, steel toe shoes hard hat

General Supplies:
dust mop, brooms, and dust pans vacuum cleaner window squeegee and buckets wet mop and bucket scrub brushes towels, lots of towels window cleaning solution degreaser solution carpet cleaning solution plunger drain “snake” basic tool set: hammer, screwdrivers, wrenches, etc. tape measure utility knife and plenty of blades tool belt ladder 50-foot water hose pressure washer chainsaw weed whip a cargo van to carry it all
Income Potential:

$15,000 to $60,000 per year, going solo.

There is a limit to the amount you can earn working alone. As you become more successful at negotiating with clients, you can eventually start hiring other people to do the work. The ultimate earning potential is unlimited.

Target Market:

One of the nicest parts about janitorial services is that you don’t have to look for new customers week after week. After you secure a few accounts, you will have a fairly steady source of income that only changes infrequently.

Convenience stores, restaurants, grocery stores, strip malls, and office complexes are all great places to start looking.

Tips for Success:

Always be professional and courteous. Everyone encounters stressful and undesirable working conditions once in a while. It will carry you a long way if you can remain respectful and calm when dealing with these situations. Don’t let your clients walk all over you, but don’t let them walk out on you! Janitorial services are very repetitive from day to day. Keep a mindset toward using your time more and more efficiently. Go the extra mile. Do what you can to go above and beyond your clients’ expectations. This translates to job security and a better reputation in the industry. You should get your janitorial cleaning service bonded and insured. If you are not bonded and insured, your prospects for business are very limited.
Training, Skills or Experience Needed:

The best training is to have worked as a janitor for some time so you know what you’re getting into. It is not easy work. Read a few books on how to start a janitorial service. No matter how much you already know, you are sure to find new information that will help you to be more successful.

Schooling is not usually necessary, but you can earn better money and find more contracts if you learn to maintain HVAC or other common equipment. There are independent classes available for this type of training.