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Do YOU Mean Business?

November 9, 2011 By 2 Comments

Do you dread those Monday morning cross-functional, technical / non-technical meetings? It doesn’t have to be that way, you know.

You can start by asking yourself how you impact your company’s revenue stream. Which generates your paycheck, by the way. If you feel the responsibility for generating business is up to someone else -traditionally the sales guys and gals - I’ve got news for you. It’s up to you, as well. In collaboration with everyone in your organization who touches the customer. Even if you are a technical professional.

Now that’s something to think about…

How capable are you participating in today’s business development continuum if you are unable to put yourself in your customers’ shoes? And that includes your internal customers from other disciplines, seated across the table from you in those dreaded Monday morning meetings.

I was interviewed on November 4 about my book: Do YOU Mean Business? Technical / Non-technical Collaboration, Business Development and YOU. For those readers who do, as well as those who do not, know my platform: I have a firm belief that successful business development is fueled by businesses, organizations, and institutions which value synergy between technical and non-technical professionals.

Have I just described your workplace? Or how you were educated and trained? There’s a rather large gap between the ideal and the real, I’m afraid. So how can you, as a technical or non-technical professional, span that conceptual, discipline-driven communication and collaboration gap?

Businesses are losing revenue because of lack of collaboration across technical and non-technical disciplines. Especially those businesses organized with a traditionally siloed infrastructure. Which describes the majority of business models. In this type of vertical organization, there isn’t much opportunity for lateral flow of information across departments or even disciplines.

I’ve been a “simultaneous translator” between technical and non-technical disciplines for most of my career. Even though I came from very technically focused training, I have always worked across disciplines. I eventually became the “go-to” individual for my company, due to my bringing a broad-based perspective to cross-functional team meetings. Oh, did I tell you that this perspective was productive and profitable for the companies I’ve
worked with and for?

I’ve had the privilege of working with manufacturers and technical service companies over the past few decades. And I am a coach and mentor for some very bright, yet very frustrated, engineering and business school graduates working for major companies. I can tell you that this cross-functional disconnect fueled by our professional disciplines is very much alive and well. Why am I hearing the same stuff I heard when I was a corporate newbie?

I sometimes spend more time untangling the misconceptions of discipline-driven status-quo, or “the way things are” mindset, than I do working on pointing mentees, companies and start-ups in the right direction. Something has to change.

My book takes what I know, that “simultaneous translation” not-so-soft pretty powerful skill set, and teaches it to you. You can’t move forward until you understand what is holding you back. This book gives you a 50,000 foot eagle’s eye view of the business development landscape so you can develop the mindset and communication skill set to increase the value you provide to yourself, your clients and your organization. Oh, and we work on business development and revenue generation skill sets, too. After all, that’s the main event.       

This book was inspired by my clients, colleagues, mentees and my network. The book is written for business owners,  C-level executives, VP's of Engineering, Sales or Business Development, Sales Engineers, recent technical or non- technical graduates and entrepreneurs who want to be “more than” rather than the “same as.”  And it’s written for technical and non-technical professionals who are beginning to understand that all the degrees, certifications, and expensive education that you have invested in are not going to make you bullet-proof and your job secure in this competitive global environment.

If you’d like to hear the complete audio version of my interview about my new book, Do YOU Mean Business? Technical/Non-technical Collaboration, Business Development and YOU  click on the book title link and opt-in to receive the audio download, updates about my book, and some great gifts I will be providing as we move towards the launch date of February, 2012.

What are you waiting for?

 

Filed Under: Books, Business Development, Do YOU Mean Business, Engineering, Entrepreneurship, Sales, sales engineering, Sales-Engineering Interface™, Simultaneous Translation, Startups Tagged With: , , , ,

Understanding why you work for other people

February 16, 2011 By 2 Comments

Not all of us dream of owning our own businesses .  Not all of us have a personal goal of working for ourselves.

Then, again, some of us have been displaced or have watched our businesses become less and less profitable over time.  Out of necessity, practicality and a need for cash flow in our lives, we are working for someone else.  Either for the first time or once again.

Let’s face it. Employment is good and some employment is better than other employment.  You may be recent engineering and IT/technical graduates looking for your first opportunities, newbies experiencing your first engineering jobs, or “seasoned” individuals currently employed under contract or as a permanent employee.  Regardless of your place in the continuum, understanding why you work for other people can be an important part of your career development and the value you bring to your company’s  table.

The nature and concept of the workforce is changing.  Contractual employees as well as virtual employees may become the norm for certain industries, per my recent January 27, 2011 post.  And you just may have the persona that lends itself to creating a successful career as a productive serial employee. ( A caveat here: I’m not condoning those employees who have a history of not being able to hold a job. There are other factors at work in this latter scenario that are outside the scope of this blog.)

US engineering schools are looking at a globally diverse undergraduate and graduate student composition. And they are trying to retain these graduates as a means of human resource / asset management. Otherwise there’s a big brain drain. (“Global and Virtual Teamwork”, Aditya Johri, J Eng Educ (Washington, D.C.) 99  no1  Jan 2010). And that works for engineering and technical needs going both ways across both oceans.  This aspect needs to be a strong consideration of business planning for companies hiring permanent and contracted employees.

With this changing employment paradigm within the technical communities, ask yourself why you want to work for someone else.  Surely working for others reduces your personal and professional overhead.  The employer assumes most of the risk (including liability), even if you don’t receive benefits (unless you’ve negotiated those benefits).  The employer has an established business base from which to draw revenue, which saves you the trouble of rustling bushes and beating the pavement, email and phone to establish your professional reputation and win business.  You have defined responsibilities, against which you should excel.  While you may be on a set contract, you should use this opportunity as a means of fine-tuning the aspects of business and technical expertise which are of interest to you, while not short-changing your employer in those areas which aren’t your cup of tea.

We have all have been in a situation where we grow frustrated working for others.  We want “something more” and look outside the box for answers. We feel we could do a better job of running the business. For those of you in this situation, I encourage you to understand ALL that is required to finance and implement a business before you make that judgment. There’s a lot on business owners’ plates from the git go. You don’t just set yourself up as a figurehead leader and expect things to fall in place.   If you are frustrated,  learn about the infrastructure, dynamics and discipline of running a business instead of getting sidetracked by personalities and water-cooler politics.  

The contracted technical workforce should always looking for their next job opportunity because there is no guarantee of the contract turning into permanent employment.  Even if you work for an agency which places engineers and technical professionals. No matter what your current employer told you. In fact there is no guarantee that permanent employees are guaranteed their jobs, either.

It’s up to you to identify available resources who will help you develop the knowledge and skillsets which provide value to your current employer as well as future employers.  Engineers and IT professionals with business acumen, who have cross-trained as undergraduates and graduates, and who are comfortable working virtually and globally may have a distinct advantage as the paradigm of the workforce changes. And this goes for community college graduates and individuals attending technical training schools, as well.

And besides, having a broader context in which to place your technical expertise can only be a plus if you decide, after all, that you have entrepreneurial tendencies.

Think about it.

Filed Under: Business Development, Core Capabilities, Engineering, Entrepreneurship, Job Functionality, Sales, sales engineering, Startups Tagged With: , , , , ,

Your Financial Plan is Your Business Pulse

February 1, 2011 By Leave a Comment

My client looked at me and threw his arms up in the air, exasperated, and said:  “We have a ton of business!  But I just don’t know if we really are making any money.”

His statement saved me a lot of diplomatic build-up to the topic of our meeting.

We’d been working on his Business Plan. One of his larger clients, long sought-after and finally won, had requested his Business Plan before they awarded him a large, long-term project which he perceived as being lucrative.  Our work commenced, starting with establishing  that his annual strategic plan wasn’t the same thing as his Business Plan. Then we started the archeology of identifying  the financial information needed to produce the Financials section of this Business Plan.

I reviewed 15 years worth of financials (yeah, I have to admit, I kind of got into things).  It was a fascinating exercise because I see this same financial pattern emerge time after time when working with my clients. They begin their business with high energy and a small amount of cash.  They churn and burn. They build up their client base, often by acquiring customers who place  small-scale custom orders that eat into time, materials and manpower. The business owners call this “paying their dues.”  Their bottom line increases, they feel elated. And they maintain that pattern, calling the business that continues to flow in their “Word of Mouth”.  Or they grow their business by “diversifying” - adding larger, long-term custom orders which take forever to be awarded that inflate their bottom line over multiple years while eating into operating margins.  And they fill gaps in their revenue stream by maintaining their loyal base of small-scale “Word of Mouth” orders that continue to eat into their profit margins.

After all, this pattern of business has kept them in business. And after several economic  tsunamis, who wouldn’t feel this is a well-deserved feather in their caps?

BUT THEY ARE STUCK.  Where they’ve always been. And they are perpetuating a bottom line that is not in touch with where they want to be. And they don’t understand what they need to do in order to move the dial up a notch or two.

These businesses are stuck in more than a rut. They are mired in a network of business habits that need drastic improvement. Processes that become reactions to blips in their status quo rather than a mindset that starts at forecasting and strategic planning.  Crisis management and corrective actions based on the assumption that everyone knows what they were doing rather than proactive project planning.  Dropping everything when a large project comes through the door and focusing all hands on deck to that project… and then expecting folks to pick up where they left off with their other responsibilities. Accounting and a 12 month perspective rather than financial forecasting and a CFO mindset (both are needed, by the way).

Sound familiar? This is not the exception in many small businesses. This is the rule. And it is keeping small businesses from moving to the next level. And making money.

The reality of the situation is that these types of business are not making any more money than they were 15 years ago. Except that the money they are making now is worth less than what it was worth 15 years ago.  Their bottom line and financials look the same today as they did 15 years ago. Except they have more customers now than they did then.  And single digit – instead of double digit - profit margins.

The recommendations I’ve made to many of my clients? Go back to square one and re-learn how to crawl before they walk much further into 2011. Deconstruct how they do business to understand how and why they got where they did. And reassemble the same elements, with a completely different emphasis. Include some education in that mix, please.

Not a pretty tale but a sobering,  realistic one. And an exercise I strongly suggest you take the time to do for yourself and your company.  And for you entrepreneurs? Build it right from the ground up and you may avoid deconstructing later on.

The buck does, indeed, stop with your business financials. They are the true read on where your company has come from and where it is going. Take your business’s pulse, understand your options, and make a diagnosis to grow healthy in 2011.

Filed Under: Business Development, Business Plan, Entrepreneurship, Startups Tagged With: , , , ,

Got an Operations Plan or are you making it up as you go along?

January 17, 2011 By Leave a Comment

You’d be surprised how many companies – and I mean large as well as small entities – appear to be “winging it” when the rubber meets the road.  And I’m not talking about companies with Lean Processes which allow flexibility and reconfiguration as needs arise. At least there’s a plan in place to make that happen. An extremely solid plan with buy-in from all those concerned (or at least we hope there’s buy- in).

One of the essential elements of a solid Business Plan is your Operations Plan, including your Key Operational Processes. And your Operations Plan should reinforce your Business Model.

So how would you succinctly describe yours?

Most small to mid-sized companies struggle with lack of sufficient human assets to apply against whatever their business model is supposed to be. Hence, their Operations Plan, when pressed to describe it, resembles everyone rolling up their sleeves and doing whatever it takes to get the job out the door. Sound familiar?

And while we all have done this at one time or another, present company included, it won’t get you to the next level. So if you are jazzed by the energy and urgency of always operating in crisis mode, feast or famine, 11th hour deadline mentality, then that’s great. (Hint: sort of like advertising agencies).

However, if this modus operandi is getting old, and you find that your annual earnings and profitability have been stuck around a certain bottom line for the last 15 years, then it’s time to revamp your Operations Plan. Especially if you are thinking of starting your own manufacturing or service business or engaging in an innovative venture that may require external funding or perhaps transferring technology outside of an academic setting.

First and foremost, ask yourself what are your Key Operational Processes. These aspects of your business may include, but are not limited to:

1.)    Marketing and sales – new customer acquisition and retention of existing customers (not the same, by the way)

2.)    Accounting - includes purchasing, overhead and employee  / vendor compensation

3.)    Customer Service – follow up on all of the above and more, a critical function

4.)    Quality Control – testing, checks and balances on all aspects of your business, even the “soft” stuff, and analysis against established benchmarks for your company (if you don’t have these in place, please establish them)

5.)    Manufacturing Processes – including assembly and production, shipping and receiving

6.)    Supplier Acquisition and Qualification – identification of sub-contractors for various aspects of your processes

7.)    Employee training – continuous improvement doesn’t happen in a vacuum although many small companies train employees on an as-needed basis depending on the project they are trying to acquire

8.)    Documentation and Contracts – maintaining and updating quality and project manuals in compliance with standards

Second of all, ask yourself whether you have enough staff on board to credibly describe your Operations Plan and Key Operational Processes to potential customers. It’s hard when there are only two of you. Or perhaps one. Because potential customers are concerned about contingency and your ability to complete a project in the event of unforeseen circumstances. Which means:  do you have enough collaborators with whom you complete projects on an ongoing basis so that you and your company will be solvent and viable for the duration of the project?  In other words, do you have an established track record, credibility and some aspect of longevity?

Now for entrepreneurs, this last paragraph is painful. Because the honest answer, in most cases, is that you don’t have any of the above.  And for many large companies, the issue is one of fiefdoms and a siloed infrastructure which, in essence, isolates departments and prevents the internal network responsible for innovation and collaboration to take that organization to the next level.

Your blueprint for successful business development mandates that you identify individuals with whom you can collaborate for successful, and repeated, project completion. And your blueprint for success also involves being able to succinctly describe your collaborative network from the git-go so that you do not always feel like you are describing The Little Engine That Could.

I cannot tell you how many small businesses struggle with this aspect (e.g., their version of “I am not worthy.”) Trust me, if you do not have a solid business plan, and an extremely well-thought out and articulate Operations Plan, this area of business acquisition will be your stumbling block. You will dread getting to this aspect when you present to new and existing customers.

So get over it and address it immediately when you are creating your Business Plan. Because your Operations Plan is your barometer of whether or not you have your cart before your horse.

I don’t need to tell you that we operate in a demanding, highly competitive business economy where there is little room for error.  Having your blueprint for success hinges on the ability of your infrastructure – Operations – to support and deliver on a consistent basis.

Winging it may be exciting from time to time. At least be aware of whether or not you have a robust operational infrastructure before you make promises.

Think about it.

Filed Under: Business Development, Business Plan, Entrepreneurship, Startups Tagged With: , , , ,

If you are doing your 2011 Marketing Plan now, you are way too late…

January 3, 2011 By 1 Comment

Another important area of a well-structured Business Plan is your Marketing and Sales Plan. And here’s a clue card: Marketing and Sales are not sprinkles on the cupcake. They ARE the cupcake: the front end of cash flow in the order-to-cash process.

For all of you technically oriented businesses (my client base) who are operating under the mis-perception that:

a)      everyone knows who you are;

b)      you are in a niche business and, um, er, everyone knows who you are;

c)       you’ll market yourselves when you need to, in 6 months perhaps, because your pipeline is now full because, well, you know, everyone knows who you are;

d)      your pipeline will remain full because – yes you’ve guessed it – everyone knows who you are; and

e)      your sales folks are constantly beating the bushes for new business because all doors are open to them because, well, you know the rest of that sentence….

I’ve got news for you…….. Stop burying your head in the sand.

It doesn’t matter that everyone knows who you are and how to get a hold of you if they think they need you.  They won’t. So please don’t be that presumptuous.

I’m sure  you’ve created an image and brand of yourself as the personification of your company AND your company as the go-to folks, haven’t you? And that’s a 24/7 job, not a matter of business lunches, meetings, conferences and golf outings.

A well-structured Business Plan requires a well-structured Marketing and Sales Plan. And most folks in the industrial and manufacturing arenas regard marketing plans as the equivalent of throwing spaghetti against the wall from time to time and hoping it sticks. Particularly small-to-mid sized companies.

Marketing plans need to reach out to your target audiences to provide WHAT they are looking for, WHERE they are looking, WHEN they are looking via STRONG and CONSISTENT marketing statements.  Marketing plans are the tactical implementation of a series of strategic initiatives. Not a four-color (expensive) ad here and there in a reputable industry journal (preaching to the choir) when your budget (non-dedicated) permits. Not a Tweet here and there when you think of it.

Based on your annual Industry Analysis, your understanding of your Customer Base, and your Competitive Analysis you should have a constant finger on the pulse of what makes your business tick. Determining the best marketing initiatives to support the efforts of your sales people become critical to keeping your company top-of-mind in front of not only current customers but also new customers and industrial and high-tech emerging markets.

The best salesperson and marketing spokesperson you have for your business is your website. Your website is your unpaid 24/7/365 advocate operating across all time zones simultaneously.  Is your website current? Do visitors to your website have to struggle to understand the navigation (hint: the fastest way of getting that person to hit the “back” button and go elsewhere).  Does your website look like it’s been created by your sister’s 17-year-old son during Christmas break? Can you track activity down to the site of the incoming URL, location of the company and see which pages have been traversed by visitors? Do you understand why people are coming to your website (in response to recent advertising, participation in a trade show, sales blitz in a particular region?).  Do you even regard your website as a critical tool for business development?

Are you advertising on Google via ad words? Do you trust the traffic that’s reported as going directly to your website? Where’s that traffic coming from, anyway?  Is your engineering and manufacturing niche capable of generating enough traffic that will result in enough business? Because not everyone who looks at the  ad words or goes to your website is in buying mode. Which means your sales folks have to identify these leads and engage them in meaningful business development discussions. And we know that some sales people only want “qualified leads” which means they only want to work with prospects ready to sign on the dotted line with minimum development work on the part of the sales folks. No such easy button here.

Are you advertising on engineering and manufacturing-specific websites such as ThomasNet, Global Spec, Kelly Search, and others who have well-developed traffic and keyword search navigation? Another hint here: not all of these sites I mentioned offer the same benefits. Because when it comes to Word of Mouth, the Internet provides the most buzz with the greatest momentum and potential for business development.

Are your sales folks and sales engineers delivering marketing and sales messages about your technical deliverables that are consistent with what a visitor to your website and online advertising is reading? Buying ad words which link to a website which doesn’t deliver against what is promised is a very good way to discredit your marketing and sales efforts.

And asking your sales people to commit to soaring sales quotas which your company has not supported by an aggressive and consistent marketing campaign is like asking them to give you something for nothing.

Which is why starting to think about your marketing and sales plan for 2011 right now is way too late,  regardless of when during 2011 your fiscal year starts. Your marketing and sales plan is your battle plan.  And your battle plan allows you to be proactive, responsive and nimble in the market place.

So where do you stand on the 2011 battlefield?

Think about it.

Filed Under: Business Development, Business Plan, Entrepreneurship, Startups Tagged With: , , , ,

The time has never been better to do a Competitive Analysis…

December 27, 2010 By 4 Comments

As we skip merrily through the areas of focus for a real live Business Plan we land on Competitive Analysis.  This subject can separate fantasy from reality very quickly.

If you ask your boss (who may be yourself) who your competition is, typically one rattles off the names of three or four firms who always seem to be bidding on the same projects you are. Hint: those aren’t necessarily your competition.  They may be companies who are stuck in the same rut you are.

If you ask your COO or CFO who your competition is, they may provide a list of three or four – or more – companies with some degree of overlap from the CEO’s list. However, their list will be based on their professional context. Perhaps these are the companies who produce the most efficient and cost effective, profitable solutions compared with the slickest, edgy and trendy ones.

If you ask a middle manager the same question and even the business development/sales folks, guess what? The list of perceived competitors grows.

While you may know the names of the big and little guys and gals who dominate your industry, they may not be your actual competition. Some of these “competitors” are simply too big – or too small -  to handle projects of a certain size.  Which means they need companies like you as collaborators. So there’s a niche for you.

Take a look at your gross annual revenue and profitability. Those numbers are your company’s pulse. Take a look at the typical size of a project and it’s duration. You will begin to get an idea of the size of your realistic playground.

You know, there’s nothing wrong with being a niche player within the small to mid-sized competitive arena.  It’s just that most companies are so hung up competing – in their own minds – against the “big boys” that they don’t recalibrate, realistically, and understand their true competitive reach.

Who are the best-in-class among the players in your market space? In your engineering space? As defined by the true competitive playing field in which your company operates.

Yes, I know you feel you can go toe-to-toe with the giants. However, if you had to put together a team to provide all of the resources a giant can provide, what type of management, financing,coordination, efficiency and profitability would actually result?

A Competitive Analysis, first and foremost, involves looking at your strengths and weaknesses as a company and deciding how to capitalize on your strengths within a realistic marketplace you have defined. You start by looking inward at yourself, not outward to a blurry horizon where the nebulous “competition” lives.

Understanding what your company does very, very well, consistently, provides you with your competitive arsenal.  This understanding also allows you to evaluate what and how to present to  new and existing clients.  This information is your Competitive Advantage. Hint: your competitive advantage does not involve providing excellent customer service and responsiveness and on-time, cost-effective delivery (soft advantages) unless you can dollarize just how these catch phrases translate into positively impacting your customers’ bottom line.  It takes more than just being identified as the feel-good company. Or the Little Engine That Could.

Armed with these insights, I can guarantee it will be time to decide who your competitors really are: both direct competitors and indirect. Your list may change, allowing your company to become more successful competing in the right engineering space against the right types of competitors. And success will allow your company to move to the next level, because you will understand the factors – and barriers – impacting your success. Not theirs. Yours.

Because sometimes, your greatest competitor is yourself.

Time to get your company on the same page?

Think about it.

Filed Under: Business Development, Business Plan, Entrepreneurship, Startups Tagged With: , , , ,

Done a Customer Analysis lately?

December 15, 2010 By Leave a Comment

It gets pretty interesting when I work on a Business Plan with my clients, whether they are entrepreneurs or mature businesses. We get to the part where I ask them who  are their customers, what industry segments do they work in, and what are the customer needs within each segment.

You know, Voice of the Customer kinds of questions.

I haven’t met anyone yet who could rattle off succinct answers.  It’s not easy and a lot of us take longevity in the marketplace as a sign of “success.”  Well, we’ve survived, but that’s hardly a rationale for not knowing your Customers.

And again, engineers, IT professionals and technical folks, I am talking to you.  Just because the guy or gal you are talking to also is an engineer, like you, doesn’t mean they think the same way that you do. You might be incredibly far from being on the same page and never know it. Never make that assumption.

I don’t need to tell you that the business development process is changing.  Solutions selling without adequate knowledge of the offline factors influencing the decision making process at your prospect’s company will not shorten your sales cycle. So why would you ignore understanding what makes customers “tick” in the industrial spaces in which your company plays?

Think of it as taking your clients’ pulse every year.  I do. Right after the start of the new year.  And that includes a) current clients, b) former clients, and c) non-clients. 

Why speak with all three types of clients and not just your current client base? Well, for one, only speaking with your current clients is like wearing blinders and looking at yourself from the inside-out. You are preaching to the choir. Did it ever occur to you that your current client base may not reflect the Voice of the Industry Segment you are trying to capture and possibly own? You may just tend to attract a certain type of client for a particular reason. You need to determine what attracts your current client base to you and be prepared for answers that potentially are not what you want to hear. Or are not where you really want your business to be.

While it really seems daunting to approach former clients, I find these usually are the most insightful conversations.  You may feel that you are going to get blasted with criticism. Most of the time my former clients have apologized for not being able to continue their contracts with me due to the economy. They perceive their inability to manage their business to include this line item investment as their fault. I don’t need to tell you how this type of conversation has led to renewed business. Especially when I am talking to them about industry trending and reinforcing my role to their business as a thought leader, rather than crawling to them, hat in hand, mea culpa.

Then there are those customers who, well, never became customers in the first place. There’s a reason and they certainly don’t expect you to want to discuss the matter with them.  While you are not exactly calling them out about it, these discussions can be amazingly fruitful in determining the offline factors that impacted your non-customers’ reasons for not making the decision to do business with you. And yes, be prepared for some rejection. Again, however, they really may not have been the decision maker in the first place or they have been acquired, etc.  You need to determine why you or your company does not appeal to the non-customer. There are a number of reasons and these factors are important for you to understand when acquiring future business.

The ultimate result of talking to your customers is to generate a list of Customer Needs for each type of customer: current, former and non.  What are the areas of overlap across all three customer segments? What are critical areas of juncture between them? Can you or your company be all things to all customer types or is the barrier to entry not worth the time to acquire certain types of customers?

Finally, look at your Top 10 Customers. Determine what criteria make them your Top 10 Customers.  These criteria should include consideration of a) total gross revenue generated, b) total profitability, c) total number of projects/year, d) number of years they have done business with your company, e) risk factors associated with this client (Do they make your life miserable during each project? Are they on shaky financial ground? Are they a pleasure to work with and extremely collaborative? Etc.).  How do the needs of your Top 10 Customers compare with the Voices of the three customer types you have been researching?

Taking a two-week time period to have these types of data-gathering exercises can contribute to a solid Business Plan that is based on knowledge rather than conjecture and assumption.

Wouldn’t you like to point yourself and your staff in the right direction from the git-go each year?

Think about it.

Filed Under: Business Development, Business Plan, Customer Focus, Engineering, Entrepreneurship, Startups Tagged With: , , , ,

Have you done an Industry Analysis lately?

December 6, 2010 By Leave a Comment

If someone asked you what was your take on your industry, would you know what they were talking about? There’s something called “industry analysis” which is an important component to any business plan. And basically, it should be the reason why you are in business… or are working for a company who feels it is competitive within your industry.

Otherwise your business development efforts may resemble, well, er, a crap shoot. 

In other words, you shouldn’t be in business based on what you – and perhaps nobody else – thinks is a great idea.

Have you ever heard anyone in your company talking about the latest industry trends? Hint: the marketing and sales departments, aka “business development folks", might be a great place to find this type of information. And if you are in the engineering, IT or other technical departments, wouldn’t you like to know that you are pointed in the “right” direction? So yes, even you need to read this stuff.

Oh, you are just a two person firm (or less)? Surviving on outsourced contracts from your former employer or perhaps your local network? I hope you don’t think this is a valid excuse for not knowing the trends and issues for your industry’s marketplace.

Understanding what makes your industry “tick” is critical to your professional development as well as establishing your value to your company and your clients. It’s up to you to find out these issues. No one’s going to hand this information to you on a silver platter.

What astounds me is the number of small to mid-sized businesses with whom I work that really don’t have their hands on this type of information. These companies have been “successful” by anyone’s definition: they’ve survived the recession and have a stable customer base who sustain them from year to year within usually single digit, occasionally low double-digit, growth.

Think about what a little insight into industry dynamics might mean to your company’s bottom line. This information may be just what it takes to move your company into double digit growth as the new status quo.  If you are thinking about resting on your laurels, your competition isn’t. And your competition may be on another continent.

OK. I’ve made my point.  You need to understand the market overview and your particular niche market’s size. Otherwise, how do you know which types of customers to target?  Without this type of information, business development may feel like Ready-Fire-Aim each year. Wishin-and-a-hopin’ will not cut it if you are targeting double digit growth, let alone survival.

Now where to find this information.  For starters:

  1. Professional associations will have annual reports about the state of the industry in which they operate and behavioral, technological and professional patterns within their membership. Start asking your local and national associations about this information.
  2. Your local, and national, government offers reporting on industry trends.
  3. Industry magazines often hire third party entities to conduct research and issue various reports on a number of subjects which provide historical, as well as current, trending.
  4. Google what you are looking for. There are a number of reports – for purchase - issued by various data banks which offer an extremely granular analysis of data for your industry. Some of these reports run over $3000. (Yes, you read that correctly.)  Some of these reports are more modestly priced and offer  a lot of relevant information without becoming info overkill. Depending on what your goals are, these reports may be worth the investment.
  5. Participate in webinars and seminars on these subjects to get your ear on the rail and determine what is going on in your industry. These venues offer books, resources, references and individuals who walk the talk and are approachable and quite willing to point you in the right direction.
  6. Ask your LinkedIn network for information, references and resources. That’s what your Network is there for. It’s not just about networking for a job search.

Even if you are working for an established firm (aka “we’ve always done business this way and everyone knows who we are”), maintaining the status quo is not an option if you are targeting stability and growth.

Determining a) what makes your industry tick; b) what the marketplace looks like in terms of overall dollars generated per year and various market segment opportunities; and c) what the relevant size of the marketplace is for your company provides insight on where to place your time, efforts and resources for business and talent development.

Your company may be trying to be all things to all people. In fact, your company may be capable of offering all things to all people. And if you are a small firm, you may be desperate to drum up business, any type of business.

Take a step back and a deep breath and put some method into this madness. Focused talent, resource and business development initiatives require discipline and a knowledge of your industry.

Think about it. This doesn’t have to be a crap shoot at all.

Filed Under: Business Development, Business Plan, Entrepreneurship, Startups Tagged With: , , , ,

Is Entrepreneurship for you? An interview with Amy Cell, Ann Arbor SPARK Business Incubator

November 28, 2010 By Leave a Comment

Amy Cell joined Ann Arbor SPARK in 2006 and is currently Vice President, Talent Enhancement & Entrepreneurial Education, where she assists organizations with their talent needs, provides oversight for a variety of entrepreneurial education programs and manages the SPARK East incubator. Helping support economic and workforce growth in the region is her dream job, since she was born and raised in Michigan and earned a BA and MBA from U-Michigan. In addition to working as a CPA for Plante & Moran, and launching an Office of Student Life for the Ross School of Business at the University of Michigan, she has spent 10 years in a variety of human resources roles at Ford Motor Company, the Stanford Research Institute, Applied Biosystems and co-founded the consulting partnership HR Drivers. Current and past board memberships include the Center for Entrepreneurship at the U-M College of Engineering, Women’s Council for Washtenaw Community College, Huron Musical Association, Women’s Exchange of Washtenaw, Ross School of Business SE Michigan Alumni Club, Kingcare, King PTO and the Junior League of Ann Arbor.

BTH:  Amy, what does your position involve?
AC:  I connect talent and opportunity for entrepreneurs in the Greater Ann Arbor area and throughout Michigan. Ann Arbor SPARK works with innovative businesses and start-ups to launch and grow. I provide the talent components as each venture identifies gaps or needs.

BTH: Just what exactly is “talent?”
AC: Talent is a very unique component to any entrepreneurial endeavor. We rarely recognize how important talent is at each phase of business development. For start-ups, I align entrepreneurs with consultants with expertise in various fields such as accounting, marketing, financial / business planning, lean / Six Sigma, sales, prototyping, etc. so that entrepreneurs can move forward from idea to implementation.
SPARK has a suite of everything an entrepreneur needs. We have physical space so that the inventors / entrepreneurs can come to a place to work that is separate from their existing workplace or home environment, for example. We provide educational space as well and have weekly seminars on how to start your own business, as well as other topics such as marketing roundtables, biotech roundtables, etc.  

SPARK also is a business accelerator and is a funding resource for entrepreneurs. We have competitions for innovation and conduct a Business Boot Camp twice a year for entrepreneurs who are selected to participate. Really, when you think about it, we offer a complete toolkit for the entrepreneur and a venue in which to network and connect with the business community.


BTH:  Many communities have some form of business incubator / accelerator. How does Ann Arbor SPARK compare / contrast, not only locally but with models used in other states?
AC:  Every community does economic development in a different way. We focus on the three major areas (business attraction, business retention and entrepreneurship) rather than in one or two areas. One of my responsibilities involves working with startups, local companies, and companies from out of state who want to relocate or open a division elsewhere in the US. I promote the advantages of what Michigan brings to the table. We approach business development with a broad brush stroke.


BTH:  What are the greatest obstacles to entrepreneurship facing engineers, IT professionals and other technical individuals?
AC:  I work with about 500 entrepreneurial companies each year who are looking for talent to assist them in moving to the next level. Oftentimes, I am working with the technical founder who is looking for talented consultants and mentors with business skills. You can have a brilliant technical team that has a patent or patents. I put them together with an equally talented business team.

One person can’t grow a company themselves. If someone is the technical founder, they usually have difficulties communicating and selling their idea, product or service to investors. The Executive Team should be able to sell. If the Founder / Inventor / CEO can’t sell, that’s an issue. Often the inventor doesn’t have solid business acumen. If there is no business development side then they will have trouble developing sales. That’s why what happens at SPARK is so important in moving the technology out from the drawing board into the daylight.
Sometimes I do see serial entrepreneurs who are inventors. They have the complete toolkit. But that’s rare.


BTH:  What are the major reasons start-up companies thrive or get stuck and fail?
AC:  Investors won’t take a chance on an unproven idea. Investors will invest in a “B” idea with an “A” team vs. and “A” idea with a “B” team. If you want to get funding you need to do what will attract investors. If the inventor/CEO is unwilling to relinquish the reins or work with a team, things can derail.

Successful start-ups have an understanding of the market and their customers. They clearly understand pain points and develop a solution. They develop a painkiller instead of a vitamin. Some people think they are going to get a lot of money for an idea or have a great idea but have no customers. They haven’t done their homework. However, they feel people will intuitively understand their idea, embrace it, fund it and move it into the marketplace for them. That’s not how entrepreneurship works. Lots of inventors don’t get out to the customer. If you don’t know who your customer is, investors will perceive risk in your idea and potential failure.

BTH:  If you had one piece of advice for any engineering, IT or other technical professional thinking of leaving their current place of employment and starting their own business, what would it be?
AC:  Creating a compelling a business case for a product or service – growing your own business – requires persuasion and communication skills. I’ve seen many PhD’s who call themselves “former” introverts who have learned how to get out in a crowd and sell things. This can be learned if you really want to.

SPARK Boot Camp gives entrepreneurs the environment in which to practice how they communicate their business to others. Our mentors and consultants provide feedback on how to give a presentation as well as a pitch.
There are organizations such as Toastmasters International and various business organizations these entrepreneurs can join which will give them additional experience getting up in front of others and talking about who they are and what their company is all about. Consider this process improvement to changing one’s aversion to business communication. Practice. That’s really what’s at hand here.

BTH:  Do technical professionals make good business people?
AC:  Technical people really are business people. They understand the technical aspect of their product or service. Being an entrepreneur, or head of your own company, requires leadership skills. Leadership, requires a different set of skills and attributes from being an engineer or a sales person in someone else’s company.
Some of the best leaders I know are technical people. They have greater credibility with investors and the marketplace because they understand the technical side of their business. They understand their product. They know how to work in teams and how to select the teams. And their teams respect them.

BTH:  What should entrepreneurs be doing to gain experience with the business community?
AC:  There are a lot of resources out there within which to develop a network of support for your ideas. In Ann Arbor, we have the New Enterprise Forum which meets monthly. Entrepreneurs give business pitches to potential investors. There is an entrepreneurial panel which presents on a specific topic. There is networking and a warm, inviting community.

BTH:  Thank you Amy for your insights. In wrapping up, I mentor at Ann Arbor SPARK judging business competitions and meeting with entrepreneurs on a volunteer basis each month. It’s a privilege working with Amy and the talented folks within this organization.

I find that many times, entrepreneurs have great ideas but don’t understand what’s involved in business development. They don’t understand what it takes to get customers. The toolkit Ann Arbor SPARK provides is invaluable in connecting these dots. As an entrepreneur, you need to talk to potential customers early in the idea or product development process to make sure you have a viable concept. And not just your family or friends or one or two customers. Sometimes entrepreneurs get shot down by this type of interaction and become discouraged . You need to reach out into the entrepreneurial community for support. You need to go out into your marketplace and get feedback. It’s those experiences which grow your passion and leadership for your innovation.

Filed Under: Business Development, Entrepreneurship, Startups Tagged With: , ,

What’s your Business Plan? Do you even have one?

November 15, 2010 By Leave a Comment

Have any of your clients ever asked you whether you had a business plan? And whether you could provide them with that business plan?

What did you say? What did you do?

Having a business plan, and re-visiting it every year, is one of the most important aspects of running your business efficiently and effectively. And I don’t mean the annual strategic planning exercise where everyone sets goals and expectations with wiggle room that either a) are met or b) have to be revised.

I’m talking about a Business Plan.

A business plan lets you know where the money is coming from and where it goes each year, based on prior years’ activity and performance. A business plan helps you quantify what you qualify to your customers day in and day out. It’s the basis for why your doors remain open and why customers should want to work with your company. It’s more than a business plan. It’s a business platform.

You use it for obtaining financing and you use it for being acquired, if that’s your plan. Your Business Plan is your credibility.

For all you engineers, IT professionals and technology folks who bemoan what they didn’t teach you in engineering school, or wonder whether to get an MBA or an MEng or PhD, here’s a clue: understand what it takes to produce a business plan.

Whether you are an inventor, a start-up, a newly funded company with venture capital and state funding or a mature business who wonders why you can’t move to the next level, a lot of your future has to do with how you view the data from the past. And your ability to combine that knowledge into a solid Business Plan.

You can Google the term "business plan" and find templates all over the internet. So this information is available to you. What usually isn’t available is the expertise on how to craft the business plan effectively and convincingly so that you, your employees and perhaps potential investors understand who you are and where your company is going. In essence, your business plan is a road map for everyone to confidently follow. So get yourself a coach or a consultant to assist you in producing this important document.

The elements of a Business Plan include:

  1. Business Overview (Executive Summary)
  2. Marketing opportunities and drivers
  3. Competitive analysis
  4. Business Model
  5. Management Team
  6. Financials (or the pace of getting things done, including your exit strategy)

If your organization already has a business plan, ask to see it. Your career development hinges on being able to understand a business plan and potentially write one. You need to understand where you fit into the organization and what makes your organization “tick” within the competitive marketplace. If you understand your company’s business plan, you can determine where your skill sets best fit in as you take the steps to develop your career.

What’s your Career Plan? And how does it fit into your organization’s Business Plan?

Think about it.

Filed Under: Business Development, Business Plan, Entrepreneurship, Startups Tagged With: , ,
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