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It’s All About How We See Things Around Us!

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We can see success if we put our brain in the state of creativity. Today is a rainy day! Peoples are closed in their homes, although it is a Saturday, the day that we expect to be beautiful. However, it mustn’t be so black. We can, and we are capable of add more colors in our life in such a terrible day.

I am now in the cosmetic store of my wife, and together we are looking in the street full of water and peoples that try to hide from the excessive rain. In the same time, my wife said terrible day, and I said romantic day. It is the same day, looked from the same position and presented from two different persons on two different ways.

It is a big difference in meaning of this two description – terrible and romantic. In this rainy day, I see romance between couples that love each other, but my wife saw a terrible day from his business perspective, because there are not customers in the store.

How we look things around us

We can change how we see the things around us!

It’s because our brain makes a picture about everything that we can see around us. That picture is only our unique picture. We really see the same things but the picture in our brains was different.

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What are the Most Important Elements in Business Plan?

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In the previous post I write about seven different meanings of a business plan. It is more about why the business plan is helpful for entrepreneurs. In the future I plan series of posts about planning that will be more about details in writing it as a part of planning process.

In this post, I want to select the most important parts or elements of a business plan that will give the more proactive role of an entrepreneur as a person who plans to start a new company. The intention is to look in a business plan more as a part of an overall planning process not as a physical document, or something that must be written.

1. Business Model

Business model is something that is developed around an initial business idea of an entrepreneur. Everything after this element in the planning process is based on that model. It can be a simple piece of paper or napkin that you find around your hand when you come up with some good idea. This piece of paper after that can be translated in bigger paper with better graph of the model.

Business Plan - The Most Important Elements

Business Plan - The Most Important Elements


Something that is more important is that business model is not based only on an entrepreneurial idea, it only started there. It must be checked with the reality – the market, or the customers that will use something from the company. Because of that you start with the planning process immediately after the process of creation of the ideas.

2. Products or Services

You have a business model, but business model without something that your company will exchange for money is nothing. Products and services will be subject that you will be sold to the customers. They will be the things that will solve customer problems. Anyway, your idea starts with the problem that exists on the market.

Because of that, in the planning process you as an entrepreneur must find and describe every aspect of the future products and/or services. You can answer these questions as a framework in the process:

  • What will be benefits for the customers?
  • What will be features?
  • How will be made products and services?
  • What technology will be used?
  • How the products and services will be sold?
  • Who are the major competitors?
  • What are features and benefits of their products and services?
  • What are the most important differences between yours products and services and competitors?
  • What products and services you can introduce in the future?

Answering this question you can have an important framework for your products and services in the broader view.

3. Needed Financials

Every start-up needs money. You cannot go with an effective planning process without financial planning included in that process. You need money to start the company, to grow it, to develop and implement new ideas, to pay daily activities, to make more money…

You can have the best ideas incorporated in your business model, and develop on paper the best products and services, but if you cannot produce them and bring to the market your company cannot start or cannot develop as it is covered in the plan. Because of that you must spend your time in planning needed financial for each business venture in which you want to enter.

In your planning process, you must answer these questions:

  • How much money I will need to start my company?
  • How much money I will need after startup before my business start brought money?
  • How much money I have that is needed to invest?
  • Where I can find additional money?
  • What is my backup strategy about finances?

4. Market Analysis

Market analysis is a basis to see what’s really happening outside of you as an entrepreneur and your business. It will give you answers that you didn’t know, and that you can incorporate in your business model, products and services, financial and strategies. It must be performed if you want to build a company that will be close to the potential customers. This analysis must answer at least on the following questions:

  • What are the target customers?
  • How often those customers will purchase specific product or services?
  • How much they are willing to pay for products and services?
  • What is the dimension of the market that is obtained from competitors?
  • What is the price of the specific product or services of the competitors?
  • What is the impression that we make with our marketing campaign?

5. Strategies Including Online Strategy

As a fifth element that must be resulted from a planning process is strategies. Without strategy entrepreneurs can be seen as a persons that were loosed in the space that looks like an infinite universe. Strategy is a tool that will give you eyes to see your path for the future success.

As you can see I stressed online strategy that must be part of overall business strategy. When you make a strategy you must think about the online presence of your company because more and more it is identified with your overall strategy.

6. Break-Even Analysis

Break-even analysis is a very powerful tool for entrepreneurs. It simple tells you how much you must sell in certain period of time to cover all costs. And everything above that point of sale will be the profit. You can check the planned numbers and numbers from the break-even point and make necessary alignments in sales forecasting, financial, marketing activities…

7. Cash Flow Analysis

Does your business will have enough money to finance business operations in certain period of time? This question will be answered from cash flow analysis. It is important part of each planning process, especially for the startup businesses.

8. Profit-Loose Analysis

Does your business will make profit or loose? When the business will start to make a profit? This questions will be answered with profit-loose analysis. With this answer you can align your financial planning process and will now what you must to take to ensure normal business operations.

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Business Problems – 3 Solving Aspects

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Solving business problems is an everyday activity of an entrepreneur. They are always present and we can say that there is no business without problems. However, the approach of solving them is something completely different and perhaps something that worries me the most when it comes to small businesses.

Why This Concern?

First, any business problem that can be seen as a simple, it is not. This means that problems are complex, and we should consider their solution in many different aspects.

For example, let’s take a few business problems:

  • Sales decline.
  • Collection system defect.
  • Delaying in performing duties.

When we look at these problems we can tell that they are problems that for an average business can be a normal everyday case. They seem simple, but the simplest problem is a collection system defect because we need only a technical person to solve it.

Business Problems

Business Problems - Three Aspects


Are we solved the problem if only the technical person fix the collection system? My opinion is no, it is not solved because it can appear again. With such a solution, we just masked the real problem – reason for the appearance of that defect.

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7 Business Plan Different Meaning

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Business plan is one of the most important business documents produced from the brain and pen of an entrepreneur. But, when we see them as a document the real worth from an entrepreneurial perspective is dramatically reduced. It is better to look in it as a business planning process.

Before several weeks, I  worked on a business plan for new startup venture that I plan to start this summer. Working on that document lead me to walk in every aspect of that business in the future. After finishing the process I feel more prepared to start that business, and it gives me big self-confidence for the future.

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How Businesses Can Deal With Negative Feedback?

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Negative feedback is something usually for every business or entrepreneur. We cannot expect each business to be perfect for everyone in the world. The large and successful companies also make a mistake and normally receive some type of answers that is not positive. Therefore, it is normal to have negative feedback from customers, users, clients, prospects …

However, what is more important is how an entrepreneur or a business as an organizational system deal with this type of feedback.

Positive or Negative Business Feedback

This article was provoked by Google and the problems that occurred in relation to privacy with their social media – Google Buzz.

Namely, Google launched Google Buzz on 9 February this year and as of February 10th around the world that all content was written about this hole in privacy of Google Buzz. On the other hand, Google’s goal is clear, above 170-million users of Gmail automatically to become Buzz users, versus 75 million on Twitter. What is the purpose of this article is feedback from users.

The feedback that the company receives immediately after startup is negative, but negative in a positive sense. In a positive sense because the company found a real problem that must be resolved. On the other hand, the feedback is not always positive for the company, but sometimes it can be really harmful.

Three Types of Negative Feedback

I tried to summarize this type of feedback from what I have experienced in three basic types:

  • There is a problem that requires solution.
  • Only opinion.
  • Just want to make a damage.

Existence of Real Problem

When there is a real issue, negative feedback in many cases is a well-intentioned or constructive one. This feedback reveals the problems and seeks solutions to these problems. It is necessary to encourage such a type of answers.

Personal Views or Opinions

We all have our own view or opinion about something. Our opinion about something can be a negative. While with the first type of negative feedback – the real problem we had proof that indeed there is a problem, with this type of  feedback we have no evidence at all, but simply a subjective view or opinion of individuals.

Damages

As a third negative feedback is so-called “damages”. These, nor found any problem and nor have any position or opinion of what they want to damage with the negative feedback. Simply, these people are energized when they do damage to someone, or they are paid (perhaps from the competition) to disseminate this type of feedback or anything else that makes some type of damage to the entrepreneur or the business.

How Can Entrepreneurs Deal With Negative Feedback?

Now we know that there will always be negative feedback and the first advice for entrepreneurs is that there is nothing personal. We also know the three types of this type of feedback. So the next things that you need to make as an entrepreneur is:

  • To establish a system for monitoring feedback from potential and current customers.
  • To respond to every feedback regardless of whether it is positive or negative.

Dealing with negative feedback means answering it. When we know which feedback in a which type is the answers will be easy developed. Here’s how the answers will look for an entrepreneur:

  • Problem – Problem solving must be implemented as soon as possible and informing that the problem was solved and solution implemented.
  • Personal views or opinion – Entrepreneurs must make efforts to change that view or opinion with clear evidence about the subject of matter.
  • Damage – Entrepreneurs must give a cultural response and to make an effort to change that type of  behavior.
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Importance of Quick Decisions

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Decision making is a process that means action taking. It is present in every aspect of our lives. We make personal and business decisions. Personal are related to our personal life and our family and business are related to our business or job. But, decision had an important part in executions and success of the executions – time frame of each decision.

Quick Business Decision Making Process

Quick Business Decision Making Process

In the previous post about entrepreneur visionary and opportunist, I write something about why opportunists never find their opportunities. The answer is because they are busy in seeking new opportunities because when they find real opportunities they never made a decision to use it.

Why Quick Decisions are Important?

We cannot expect to remain forever in the process of decision making. The end or the results of this process is a decision. The life of an entrepreneur and managing successful business need quick decisions, because there is the existence of dangers that the same decisions will be made from competition.

As most important reasons why you as an entrepreneur must make quick decisions I would mention following:

1. Quick Employment of Opportunities

If you find an opportunity, it will not have value for you or your business if you’re not employing it. Because of that you need quickly a decision how to use it and who will implement needed activities about that.

2. Quick Response of Customers Needs

You as an entrepreneur and your business exist because of your customers and their needs. If you find changes in their needs you cannot make decisions forever about how you can satisfy their new needs. Around your business always will be competitors that will wait for your passiveness. Because of that, there is a need of quick decisions.

3. Quick Response on Competitors Activities

As you continually accomplish different business activities, also your competitors didn’t sleep. Each of their step about a business, or market will need your contra step. Because of that you must quickly decide what will be your contra steps.

Speed Versus Quality

What is the affecting of speed of decision making on the quality of the decision?

The quality of the decision certainly depends on the speed of making it. So we can say that the decision quality is a function of speed of making it.

Quality decision = f(speed); higher speed means less quality and vice versa.

This is logical, but not only. One thing is certain, behind every good and quality decision is information on which we make that  decision. Decisions are made by entrepreneurs and the speed depends on it. How much more information entrepreneur have it will be harder to make quick decisions. This is because the speed of decision making is a function of available information and an entrepreneur. So the previous equation will be:

Quality decision = f(available information, entrepreneur);

I will try briefly to enter in this secret about information and an entrepreneur as a basis for decision-making speed.

How much more information entrepreneur have it will be difficult to decide,  it will take more time. Sometimes it will never have enough informations to deciding, and the speed of this process will be very slow and time can go to infinity, or in a situation not to decide, which in this case is not good. This is the case because they will spend their time on collecting needed informations. On the other hand, informations should be processed in a certain form through which entrepreneurs can discover easily and quickly some trends and some hidden trends that will be useful for deciding. So, for quality decisions entrepreneurs should have an optimal amount of information in a form that allows estimations. With this in mind our formula from above now looks like this:

Quality decision = f(f(optimal amount of information, form), entrepreneur)

If they want to draw some quality conclusions from the informations presented in an appropriate form they will need to have a certain ability to recognize trends in such an incomplete information. I say incomplete information, because our goal is to make a quickly quality decision. Therefore, it is necessary entrepreneurs and managers to have analytical skills. So, quality decision in a small interval of time will be represented by the following formula:

Quality decision = f(f(optimal amount of information, form), analytical skills of the entrepreneur)

Analytical Skills as a Basis for Quick Decisions

As you can see an analytical skill is the ability of an entrepreneur based on incomplete informations to draw conclusions and to make quality decisions. It is believed that successful entrepreneurs make a quick decision and their own thinking for the correctness of the decision is 70%.

The characteristic of analytical people is to look into a group of information where they will find something interesting that other average persons cannot see nothing. Knowledge is a requirement to an entrepreneur to be analytical.