What Does Success Really Look Like?
Published November 7, 2011 | 
Questions to Answer Before You Create Your Business Plan
I was at a local retailer recently, and I had a beginning-level conversation with a woman who was right at the initial stages of planning for the business she was going to start. As we talked, she seemed to have a good understanding that there are several questions she needed to determine the answers to, but was struggling with fundamental, yet vital questions she had to answer before moving on to the remainder of planning for her business. I explained she needed to strongly-consider and answer a few critical questions before going deeper into the planning process.
One of the most overlooked, yet vital questions that goes to the heart of any entrepreneur’s aspiration of business success is, “What does success really look like?” This turns out to be by far, the most essential question that almost nobody asks themselves. I think most of us naturally tend to take for granted that success in business is precisely measured in growth and profits only, or, at the very least, how much money is in the bank. But, quite the opposite to that typical assumption, if you observe closely the businesses you deal with, I bet you’ll notice people who care about many other dynamic things, in addition to just their business growth, profits and cash.
One of the most important reasons that people struggle with becoming successful is simply because they don’t have a clear vision of exactly what goals and objectives they want to accomplish. Rather than a well defined vision, they have extremely vague ideas of what it is they would like to achieve, and they’re deficient of a solid strategy for getting there.
This kind of scenario almost always leads to sporadic jumping from one idea to another, but never being able to commit to any of the ideas. Essentially, when results don’t come quickly, many of these type people find it easy for them to lose interest and frequently move on to other elusive ideas that might bring faster success with less effort, but rarely do.
In most of these type cases, the problem is rarely that success has proven unattainable, as most of the time the problem has to do with the would-be entrepreneur’s clarity of vision and understanding. 
Either they don’t simply have a clear enough vision of exactly what it is they want to accomplish, or they don’t have practical and feasible strategies for turning the vision into a successful reality.
Understand that a clear vision is essentially critical to success. If you can’t visualize, and don’t know exactly where you want to go, how can you possibly design a good plan with strategies for getting there? The reliability of the strategies is always directly related to the clarity of the visualization! So the initial step toward your success is always to identify precisely what it is you want to eventually accomplish. This isn’t just about your financial or career success, but these extremely valuable principles apply to your ultimate success in any endeavor you choose in life.
Most Important Business Questions – Pitfalls and Failures?
Published February 17, 2011 | How to Avoid Common Business Pitfalls and Failures?
Most of us are aware of one of the most common pitfalls that cause business failures, undercapitalization. But let’s look at a few other frequently overlooked common pitfalls important for you to be aware of and avoid.
Ill-considered business plans – Okay, it is extremely important to understand that there’s nothing as bad as entering a funding or money meeting unprepared. By “unprepared” I mean if you haven’t taken the time and put the effort into creating a complete or “full-blown” business plan.
If your plan is missing crucial essentials such as a convincing business description, coherent financial projections and a competitive market analysis, then the people you are meeting with, the ones with the cash won’t commit their valuable time to evaluate your proposal.
Focusing too much on the idea and not enough on the management – 
Although you might have the greatest idea since the light bulb, it’s not enough to simply persuade prospective backers and stake-holders that you’ve developed the next must-have gadget or greatest business concept.
You can never, never overlook the critical nature of the need for a team that can successfully execute the specifics of the business plan, generate the level of revenues required to fully repay a bank loan or just as important accomplish an exit strategy for an angel investor or VC. I find that many business neophytes or novices pay no attention to this vital element of the equation. Without question that can destroy their pursuit of funding and approval.
Understand that showing you have engaged a highly-successful salesperson, a skillful marketer, an accountant with startup experience, and other key personnel and professionals who can provide guidance, is essential to finding funding sources.
Failure to achieve the proper legal agreements and documentation – 
This is arguably more important than a prenuptial agreement for a couple with significant individual assets. Legal documents cover everything from agreement terms to time-lines and can avoid serious acrimony or bad blood.
Inadequate cash flow management – Way too many Entrepreneurs and new business owners burn through seed money too quickly, failing to reach positive-cash flow standing in a well-timed manner.
Some contributory factors, such as economic downturns may be beyond control, but you and your executive team are might be unmistakably at fault for others, such as unnecessary spending and overly optimistic forecasts. Financial stakeholders never look kindheartedly at mismanagement of that nature.
No Website – Simply put, if you have a business today, you need a website. Period.
At the very least, every business needs a professional looking and well-designed website that enables users to easily find out important information about their business. Later, additional ways to generate revenue on the website can be added including ad space, drop-shipping products, or recommending affiliate products. Remember, if you don’t have a website, you’ll most likely be losing business to those that do.
Of course, there are many more mistakes and pitfalls to avoid, and understanding how to both identify and prevent them greatly increases your chances of achieving the goals you set for business success.
Business Plan – Appendix
Published January 17, 2011 | 
The Appendix is used to substantiate the balance of the business plan. Every business plan should have a full set of financial projections, and many times they are placed in the Appendix, with the summation of these financials in the Executive Summary and the Financial Plan.
Other documentation that may possibly appear in the Appendix includes (1) Technology: Technical drawings, patent information, etc. (2) Partnership and/or Customer Letters: Letters from partners and/or customers stating their interest in working with the company can add huge credibility and confirmation (3) Extended Competitor Evaluations: It’s a common fact that the majority of businesses have more than a few direct and/or indirect competitors. 
While the Competitive Analysis segment of the plan evaluates the most direct competitors, addition of a more comprehensive list and narrative in the Appendix demonstrates that management accurately recognizes and comprehends the players in the marketplace. (4) Customer Lists: Together with a list of strategic customers that the company is serving, in addition to their rank and/or type or quantity of product/service being offered.
Other Possible Components of a Comprehensive Appendix
Here are some examples of what else might be found in this section:
- Tax returns of principals for the last three years, if the plan is for new business
- A personal financial statement, which should include life insurance and endowment policies, if applicable
- A copy of the proposed lease or purchase agreement for building space — or zoning information for in-home businesses — with layouts, maps, and blueprints
- A copy of licenses and other legal documents including partnership, association, or shareholders’ agreements and copyrights, trademarks, and patents applications
- A copy of résumés of all principals in a consistent format, if possible
- Copies of letters of intent from suppliers, contracts, orders, and miscellaneous letters of intent
In the case of a franchised business, a copy of the franchise contract and all supporting documents provided by the franchisor- Newspaper clippings that support the business or the owner, including something about you, your achievements, business idea, or region
- Promotional literature for your company or your competitors
- Product brochures of your company or competitors, or photographs of your product
- Market research to support the marketing section of the plan
- Trade and industry publications when they support your intentions
- Quotations or pro-forma invoices for capital items to be purchased, including a list of fixed assets, company vehicles, and proposed renovations
- References
- All insurance policies in place, both business and personal
You do not have an obligation to work each or any of these items into your business plan. Understand that not all plans have need of this exhaustive a level of documentation. Bear in mind this list is a starting place for items and information that you may well want to incorporate in your business plan.
Once again, the appendix performs a supporting function. It does not present new materials, and it does not function as a filler section. It ought to further convey your business idea in a highly proficient manner.