Evaluating Your Business Idea

You may have several ideas for a new business or only one. Before you start pouring your effort and money into an idea you need to see if it will stand up to some analysis. Try a SWOT analysis. This requires you to think about the Strengths, Weaknesses, and Opportunities your business will have, and the Threats it may face.

A high level of skill with a range of equipment, or a friend that is prepared to loan you some money would be strengths. If you have never run a business before that could be a weakness. A ready, enthusiastic market would be an opportunity, while several businesses almost identical to the one you are thinking of starting or a weakening economy would be threats. This type of analysis can show you if your business idea is viable and should encourage you to exploit opportunities and help you decide how to tackle threats.

Decide on your Unique Selling Proposition...

Why should a potential customer come to you and not a rival? Will you specialize in a certain area? You should be able to identify where and how you can contact your potential customers and have an idea of the demand for your type of service or product.

Write a Business Plan...

There are many versions and it seems every bank and business advisor has slightly different requirements. However every version should keep you focused on what you want to do with your business and the strategies to achieve this in a certain time frame. It should identify the services or products you intend to offer initially, and those you hope to expand into later. Remember the plan is a working document. If you miss deadlines you should be able to modify the plan to get your business back on course.

Once you have decided on the type of business you want to start do some research to see if there are any gaps in the local market. Find out your competitor's pricing. You could get friends to ask for quotes from the competition, or use a more direct approach and have discussions with a local expert. Remember, a company could be a potential competitor or a potential joint venture partner. Perhaps you could approach them with an idea for a product or service that would complement theirs.

When setting prices do not immediately assume undercutting is the only solution. You need enough income to cover your overheads and a low price may give the impression that your skills and work have little value.

Cash flow is another important element in starting and running a business. Make sure you do not have to make too big an investment before you get paid. You should know how much you have to earn to at least break even.

After working through your business plan and giving cash flow a good deal of thought you should know whether your proposed business is viable.

The Benefits of Outsourcing Your Business Functions

Whether you own a small or large business, chances are very good that you can benefit from outsourcing some of your business functions to outside vendors. Ideally, you want to be in a position where you are working on your business, rather than in your business.

Running and operating a business positioned for growth requires many different key functions. For starters, you must handle accounting, administration, customer service, as well as sales and marketing. Many new small business owners attempt to tackle all of these functions on their own, and find that they work long hours and can begin to burn out quickly. By outsourcing some of your routine tasks, you can leverage your time to spend on the functions that you do best in order to grow your business.

When trying to determine whether outsourcing will benefit your company, you need to determine how much money your time is worth. A simple way to figure this out is to estimate how much money you would like to make in a year, and divide that into productive work hours. Most of us are only productive about 2-3 hours a day. For example, if you'd like to make $200,000 this year, and you work 3 productive hours each day, 5 days a week, then your time is worth roughly $260 an hour. With this scenario, you could benefit from outsourcing any function that you can pay someone to do for less than $260 an hour.

In order to outsource effectively, you must understand your own business and processes. Take some time to write down job descriptions for different functions, as well as the processes you use in your business to accomplish certain tasks (like how you enter your invoices and receipts, how you generate new leads and clients, etc.). As part of this exercise, include clear expectations of what you hope to accomplish. A clear vision and business plan is key to setting up clear expectations. Once you have written down the job descriptions, you'll have a better idea of what you would like to outsource first.

There's no hard and fast rule as to which job functions you should outsource first, but many business owners like to hand off the functions that they enjoy the least. If you really dislike customer service, you may want to find a customer service rep first.

You have many options when looking for companies or services that will handle your outsourcing needs. Check with others in your industry to see who they use to outsource their functions. Many outsourcing firms not only specialize in certain functions (like customer service), but also in certain industries (like real estate). You can use freelancers, virtual assistants, or any number of outsourcing firms.

Many business owners hesitate to outsource some of their functions because they want to have complete control over their business, or they believe that it will be too difficult to train someone to do what they need. If you fall into this category, you may want to try outsourcing some very simple, routine tasks to get started. It will be well worth the effort!

When choosing an outsourcing firm, or freelancer, make sure you set clear expectations up front. Share your vision about how you see that function growing your business, and offer incentives for work well done, or work done under budget, or before a deadline.

In addition, take time to properly document how the work should be performed. This can be done easily with screen capture video software, and/or written processes and procedures.

Taking the time to properly train and motivate your outsourced personnel will benefit your business greatly. By now, you will see that outsourcing some of your business functions will help free up your time to work on your business, rather than in your business.

Build Excellent Lifetime Relationships!

Do you realize relationships begin shortly after birth and are ongoing ways of life for every person on the planet?

An important part of life depends on how we develop our relationships with others. Perhaps, if we consider examples of this development, a better understanding will enable us to think more clearly before we interact with others.

Examples:

1. At birth we acknowledge a relationship with our mothers

2. Growing up, we build friendships with family members

3. In school, relationships with peers and teachers are normal

4. Most begin their dating relationships along the way

5. Searching for first employment, relationships must be formed

6. To market products, relationships are tried, tested, used

Most sports require close relationships to build a winning team. How far would the space programs have gotten without close working relationships? Would we marry without an excellent relationship with our partner?

As people mature in life, many relate an emptiness that is often difficult to understand or comprehend if a relationship has not been established with our creator. This personal relationship will fill a void that no other can fill. This is the most important relationship of all in every life, for complete fulfillment and joy.

The purpose for these examples are to enhance our willingness and desire to work on developing meaning in our lives, our families, and our businesses to become better persons and better marketers with positive relationship building goals.

A few very important traits in relationships are integrity or honesty, trust, and a willingness to open ourselves to others and be examined.

Have you ever seen failure? Perhaps it was caused by the lack of trust or integrity in another. Can relationship building with other persons prevent failure? Would your business become more successful with many great relationships? Think on these statements and make the adjustments in your life that you feel may improve your disposition.

These basic groundwork ideas on relationships are written to jog thinking and perhaps increase your business skills until they direct you to where success in business is inevitable and joy in your work becomes a normal lifestyle.

You may find varied and rotating articles on relationship building on our website, along with tips you can possibly use for your business.

Many times along the path of life, failures occur. It is good news to recognize and know the importance of earning good relationships during these trials and to be well prepared for the needed improvements.

Expect the best, prepare for the worst, and take what comes, is a great buffer for the many trials that happen in life.

Great relationships developed over a lifetime, yield great rewards!

Why Should You Have a Business Plan?

Are you planning to start a new business? Or are you considering expanding your current business and require a bank loan or investment from outsiders?

If you are going to look for an investment of capital it is quite likely that you will be required to have a business plan. If you are starting a business, despite the work involved, a business plan can prepare you for the obstacles ahead and help ensure your success.

A business plan is something that many small businesses fail to create, however, many business owners are adamant that having a written business plan is one of the keys to their present success. Creating a business plan forces you to contemplate possible obstacles to your business and prepares you to find solutions that will help you to overcome them.

To find investors or get a bank loan, they will want to see that you have the experience or resources to run the business. They will want to see your projected income as well as your suggested repayment plan already laid out. Taking the time to do this is not only important for them, but it gives you a measuring tool to verify if your business is growing properly. You can gage your success on how close to the plan your business has actually performed. Perhaps you'll do worse, or perhaps you'll do better, either way it helps you determine how well your business is getting on.

If you have never seen a business plan before you may be concerned that is is too difficult a proposition for you to manage on your own.

While there are services available where you can hire someone to write a business plan for you, depending on your needs it may be wise to familiarize yourself with a business plan's layout. This will not only help you to provide the necessary information, but may encourage you to try your own hand at it.

There's a free tool at www.bdc.ca which will assist you in creating a business plan. Some of the topics you will be required to explain are your Market, Customer, Competition, Marketing Plan, Research & Development along with financial forecasts. You may consider hiring someone to help you with your financial sheets after completing the written part of the Business Plan.

Your Business Plan will become your guide and silent business partner - indicating where you need to improve and helping you stay one step ahead of your competition. Make it a priority to have this crucial road map for your business.

Team Building Icebreakers

The first challenge you will encounter on any teambuilding exercise is personal introductions. Members of the teambuilding course need to become acquainted with each other and the course leader. These initial exercises are commonly called 'icebreakers' as they break down any barriers between team members.

The most popular icebreaker is for the team leader to arrange the team members in a circle and ask them one by one to stand up and tell the group a little about themselves. Each member of the team will stand in turn and give their name and some brief details about their work and/or hobbies by way of an introduction. If the members of the teambuilding course work for the same large company, often it is a good idea to ask them to describe the department they work in and their job role. In this way it allows other members of the team to position them in their mind. Sometimes the team members may already have relationships that they are not aware of - possibly they have spoken on the telephone, or have emailed each other in the past as part of their job function.

Another great icebreaking activity is to assign each member of the team a partner whom they have never met before. The pairs are given a short time (10 minutes is suggested) to get to know a little bit about each other. The icebreaking task is then for each team member to describe their partner to the group.

At icebreaking sessions it is also a good idea for the team leader to encourage laughter. Laughter and humor are great icebreakers. Possibly each member could be given a sheet of jokes and asked to stand and tell their favorite joke to the group, and then give the reasons why they chose that joke. As well as breaking the ice this is a clever way of learning a little about a person - the reasons they give for choosing the joke will give a little insight to their personality.

Remember when leading a teambuilding session the importance of icebreaking. This is the most important part of the course and sets the foundation for the work you will do over the coming hours or days. Setting your icebreaking session around breakfast or coffee can help as these are natural times of social interaction - watch as team members help each other with the simple task of making and pouring coffee.

Are You A Born Leader

People are not born with any particular skill. We are all born afraid of falling and of loud noises, but after that everything else is learned. So it is to become a leader.

Leaders are made not born. Leadership skills are acquired over a period of time based on several factors. Here are 5 of them.

1. Leaders come in all different shapes and sizes. It is interesting to study effective leaders. At face value they are all different. They all have developed their own style based on their own personality and what works for them.

2. A true leader accepts responsibility. Everything from how they speak to how they act is part of being responsible. It is easy to follow them because you know where they are going and know they will lead you as well.

3. Leaders work at being leaders. They are always improving their skills and learning from the situations they are in. They study people and have learned how to effectively interact with them to get what they want.

4. Leadership starts at the top, but is best achieved when developing a team atmosphere. Leaders know they can do better when people are working together for one common goal. Sharing in leadership is part of this process. Making everyone accountable for what they do, but judging success on the overall efforts of everyone.

5. Situations call for different types of leadership. A well-rounded leader is able to adapt to their surroundings and lead accordingly. Coaching a football team is an example of this. Sometimes the players need a kick in the rear and other times they need a pat on the back.

6. Leaders are respected for what they have accomplished in the past. A real leader can speak from a position of practical experience and know they will be listened to because they speak from that vantage point. A respected leader is able to command more from his people than a leader who is not.

7. Leaders seek opinions and compile ideas before forming a game plan. Good leaders know that they cannot come up with every idea that will work. By allowing input they are able to make a more responsible decision.

As you can see leaders have skills and they use them to accomplish something every single day. You can become a good leader if you are willing to work and to learn how to become one.

Teambuilding for Any Business

Teambuilding can be an important way of developing your businesses most valuable assets, its employees. Especially when hiring new employees or starting a new business, building a relationship within your team is of prime importance.

There are many companies that offer teambuilding courses, both residential and in house. Teambuilding courses can be expensive, so let us explore the options so that you are sure to choose the right teambuilding exercise or teambuilding course for your staff and company.

In-house teambuilding, done on the site of your company, is the cheapest option as you have no accommodation fees to pay. If you need to keep the cost really low there are many teambuilding guides available on the internet that will allow your human resources department to create their own teambuilding course suited to your companies needs - all without employing an external teambuilding consultant.

Having a teambuilding consultant visit your company for a day or a week (the length of course is something we will discuss in a later article) can be cost effective however if you have no spare resource in your HR or personnel department. This can also be more convenient for employees who may not prefer to stay overnight away from home.

Teambuilding exercises usually begin with an icebreaker, which is a term used to describe a 'getting to know each other' session. Each person will usually be asked to stand up and describe themselves in some detail. This is often surprising even when you have worked with a person for many years as there may be many things that you did not know about them.

Other exercises throughout your teambuilding course will focus on interaction between members of the team. Common exercises include building bridges or crossing rivers. Tasks undertaken on teambuilding courses should be ones that would be impossible to complete as an individual, but easily manageable as a team working together.

Often members of a team will be struck by how simple exercises draw on the different strengths of team members. One person in the team may be a natural leader, another has good analytical or engineering skills, and another may have great communication or personal skills. All different skills come into play and will be brought out of your team members as they work through the exercises.

Often after teambuilding sessions members find they have new found skills to apply to work situations, and are ready for new challenges, which is great for business!