Business

5 Secrets to Sales

Posted on Thursday at 11:19

As a new startup, you will find yourself doing some form of sales around the clock. Selling investors or bank officers, selling potential strategic partners or key employees, selling customers and clients. Sales is king in the new economy. You success will be determined by your ability to generate revenue and sell, not just your products and services, but also yourself.

Here are five signs you’re well positioned to succeed at the art of selling:

1. Remember, you are in the people business.

Don’t make the mistake of getting so caught up in what you are selling that you forget to make meaningful connections.

2. Focus on the results, not the effort.

Don’t confuse results with efforts. Your success in selling is all about getting results. Therefore, you should evaluate your results and not your efforts. You don’t try to get an appointment, you either get it or you don’t.

3. Do the uncomfortable thing.

Don’t shy from the tough customers or the tough sales. You can’t bring the big deals home without getting into the deep waters where the big fish swim.

4. Wow the customer.

Sales is all about emotion. Constantly look for ways to inspire a customer’s emotional involvement and create the urgency to take ownership.

5. Ask for the sale

This may seem very simple, but most salespeople never ask for the sale. If you don’t ask, you will only sell to those who are going to buy regardless.

More details about these 5 tricks can be found here.

Tags: bank, Business, client, customer, investor, partner, sales, startup

Behavioral Targeting and What it Means to You

Posted on Thursday at 7:54

The internet is a constantly evolving mass of information that has only been around for a few decades, but is making a deeper and wider impact on global society each and every day. The concept of behavioral targeting is relatively new and is making an impact on each individual who uses the internet.

What is behavioral targeting you ask? Well, it all begins when targeting companies reach agreements with publishers and they put a specific piece of code into their website. As you browse the web, this site places a “cookie” on your browser. Now that the cookie is attached to your browser, the targeting is already under way. Data points are constantly being gathered as you navigate the world wide web taking note of the sites you are on, what you buy, as well as what you search for. As time goes on this data amasses itself and not only puts you in demographic categories but also takes note of your interests, preferences and hobbies.

The ability to gather this information on every individual using the internet allows companies to target specific segments of the population and thereby achieve a higher rate of interaction when marketing online. This may seem like a very costly way to advertise on the surface but the rate of interaction that you get from this method may prove to be extremely cost effective in the long run.

There are overreaching effects outside of the obvious marketing and advertising impacts that this technology can have for start-up companies trying to reach new customers. A whole new level of personalization is on the horizon. Jeff Hirsch, president and CEO of AudienceScience says that “10 years from now we will all look back and laugh that we ever had to type something into Google to find what we were looking for.” The algorithms that are being developed for this level of personalization are extremely complex and are now able to grasp a human’s depth and therefore avoid inundating you with Nike ad’s just because you were on ESPN.com. These newer and constantly evolving algorithms are breaking down website content that you view and these targeting techniques are viewing people as multi-dimensional beings.

The fact that these data points are constantly being compiled means that advances in this concept will come quick. If you are a startup company it would be wise to research this field and determine the best ways for your firm to use it to your advantage. When it comes to technology it doesn’t take long to get left behind so stay on the cutting edge with this one because its benefits to start-ups and entrepreneurs are limitless.

Tags: behavioral targeting, Business, data, market research, online marketing, personalization, start-up, startup

The Executive Summary

Posted on Tuesday at 7:45

While the Executive Summary will be the first thing that people who are reading your business plan will see, it should be the last thing that you write. You are selling your concept to an outsider, possible future investor or a partner, who does not know anything about your business yet. The Executive Summary should be the “elevator pitch” of your business plan that gets investors to take a deeper look in your business plan.

The length of your Executive Summary should be no more than 1-3 pages long, short enough to keep the attention and long enough to cover the subject. When writing the Executive Summary Pascal’s famous words should come to mind: “I apologize that this is so long – I lacked the time to make it short.”

The Executive Summary should include the basic elements from each section of your business plan; essentially, it is a clear summary of your business, marketing, operations and financial plans.

First, summarize your business’ product or service: define the general idea of your product as well as the industry in which you will operate, underline the value of the product that you deliver to the customer (Value Proposition), identify the opportunities for you to deliver this value and explain why you think that you can do it better than your competitors.
Second, summarize marketing: list distinctive features of your product/service, target your potential market, and present your competitive analyses (or competitive landscape). Define your key sales and marketing strategies.
Third, summarize operations: Present your management team with a brief overview of their functions in your business. Note the key relationships that are expected to affect your business.
Lastly, summarize you financials. Present a short outline of your financial projections and requirements. Explain why you will need financial input and how your business will use it.

Remember that your Executive Summary would be the first convincing “pitch” to your future investors. Usually a quick glance may determine whether a potential investor will finance you or whether he/she will not even consider reading the rest of your business plan. Write your Executive Summary in a language and terminology that is easy to understand, persuasive and convincing.

In conclusion, those first pages of your business plan are critical, so make them count.

Tags: Business, Business Plan, elevator pitch, executive summary, investor, pitch, start-up, startup

Better Business 101 – Record and Report

Posted on Tuesday at 12:00

Setting goals and milestones for a small business owner can be the difference between no results, average results and extreme success. Recording and reporting on your attempts to reach a goal and your achievements is absolutely essential. Often business owners feel like counting and measuring campaigns is never urgent or even that it is a waste of time. But the old saying comes to mind: “You can’t manage what you don’t measure.” For those that are rightfully convinced that setting goals and recording and reporting on their progress is beneficial here are some tips on measuring the main variables involved in business growth and development.

1. Regularly record selected data

2. Regularly report

3. Regularly consider tactics and tune in your strategy to improve on your results

Good news is that nowadays recording and reporting online data has become as easy as child’s play and is one click away with the help of Google Analytics. Setting up this type of record and report is in the reach of any small business and is, for the most part, free. If you as a business owner are not able to read or understand the vast amount of data that www.googleanalytics.com offers, recruit people that can to your support team – business consultant, website designer, marketing specialist, etc. Collect the data and follow up on it, improve on increasing and converting traffic, understand where your customer is coming from and what seems to be of value to him/her and improve on it. Next month repeat the process of recording, reporting and improving. Set some meaningful goals and try to reach them.

Meanwhile, combine this information with data that you can record and report on your own. Figure out what variables are important for your business development and growth. For example, when reporting on marketing consider the following metrics:

• Number of Suspects (Website Visits / Direct Mail Letters Sent)

• Conversion Rate 1 (Suspects converted to Leads)

• Number of Leads (Inquiries)

• Conversion Rate 2 (Leads to Opportunities)

• Number of Opportunities

• Marketing Investment (Expenses)

• Acquisition Cost 1 (per Lead)

• Acquisition Cost 2 (per Opportunity)

• Acquisition Cost 3 (per Customer)

• Marketing ROI %

• Lead Source

Then, set up a spread sheet (or use fulfillment software or even a piece of paper) and track the data for this month, for the quarter, for the year. Consider if your business is on the right track by measuring how far below or above you are in reaching your target goals. Brainstorm with your employees or with your support team on how to improve, implement new tactics and set up new strategies.

Then, record and report again. Your efforts are likely to soon pay off and you will find that you’ve acquired a sense of achievement in addition to business growth and development.
Lastly, if you have yet to launch your business and you are still in the business planning and business plan writing stages, be sure to state your goals and objectives and begin to develop methods for how you will track your goals. Getting started on the right foot will make a big difference.

Tags: Business, Business 101, Business Plan, How to, Recording, Reporting

Top 5 Benefits of Creating Financial Projections

Posted on Tuesday at 12:00

An old Woody Allen joke resonates with financial modelers and forecasters: “If you want to make God laugh, tell him your future plans.” We all know that financials projections are based on assumptions that likely never come true. Yet, putting together the financial information for your startup might be one of the most important and eye opening experiences before the launch date. Sales projections for an existing business are derived based on past sales figures and reports as well as statistics regarding other known pertinent internal and external factors. Yet when projecting for a startup, all previous sales history is non-existent and therefore, there are some arbitrary fundamental assumptions that need to be made. Almost every experienced entrepreneur will tell you that financial projections are absolutely necessary for any launch process. Below are 5 of the major benefits that novice entrepreneurs will enjoy simply by spending time projecting hypothetical financial projections for their business plan.

You will be able to show potential stakeholders that you have a levelheaded grip of reality and your expectations are practical. Possible creditors or investors are most certainly looking for realistic financial expectations in your business plan. Creating financials that are not too optimistic or too pessimistic will earn the respect of potential investors and give them confidence in what you are presenting.
You will be able to price goods and services more accurately and competitively. Lining up costs with revenues will provide you with an idea of your Break Even Point. This knowledge will be essential when it comes down to setting up an appropriate price to charge. If you charge too little you will make an inadequate profit, or if you charge too much you will end up alienating and losing customers.
You will be able to trim costs strategically. Once you have categorized your projected expenses you will see emerging spending habits associated with your business. Noticing excessive spending before it has occurred will force you to create innovative money saving strategies to create value with less capital. Paying attention to areas that you are overspending can improve your bottom line. For example, if you anticipate spending money on outsourcing, you might notice that this expense could be eliminated by adding the duties to some of your employees. If you considered business lunches, those might have to be transformed into coffee meetings instead. In other words, consider if each expense category is sufficiently helping your business to generate income. Depending on your answer, you may need to take preventative actions.
You will be able to pace your growth more effectively. At the startup point you will not have any idea of when you might need to hire more employees, find suppliers on a bigger scale or extend your services to other markets. In reality, you will consider expansion when sales and profits are growing consistently for a several month period. At startup you need to be prepared for that possible expansion and be able to recognize and respond to it accordingly. Creating a cash flow statement will allow you to consider corresponding income to expenses and will not leave your business grasping for cash during a crucial point of early development.
You might be able to reduce taxes. Often startup businesses don’t know how to take advantage of controlling their tax spending. If your projections predict that you will be making profits by the end of the year that means that you will be paying taxes. So, if you plan on spending for a company vehicle, the best time would be exactly before the end of the tax year, so you can take advantage of the tax deductions. Businesses that are sloppy about predicting their expenses are willing to miss dollar saving tax opportunities. Financial projections and following up on actual bookkeeping will help you decrease the tax spending of your business.

Lastly but probably most importantly your financial projections are a way for your business to set goals and to try to reach them. Your employees are all working towards a clearly outlined financial goal and reaching it will only provide satisfaction for all involved.

Tags: Business, Business Plan, Cash Flow, financial projections, How to, pace growth, pricing goods, reduce taxes, sales projections, trim costs

The Structures of Social Enterprise

Posted on Tuesday at 12:00

We are beginning to see more and more companies begin to blend their traditional corporate structures with a more modern obligation to philanthropy and social awareness. Social Entrepreneurism is on the rise and suddenly profit isn’t the only driving force behind big business. Across the nation, various legislations have passed to establish new corporate structures that aid the social entrepreneur in improving environmental, educational, social, and economic conditions.

The Benefit Corporation

Legal state entities that mandate corporations focus on public benefits alongside their for-profit enterprise. Shifts mainstream thought away from maximizing shareholder value towards maximizing stakeholder value by placing an emphasis on social issues. Required annual reports provide transparency to the public and accountability toward the company. These reports are not required to be assessed by third-parties; however, this will change under California law in January 2012. (Read more about the difference between Benefit and B-Corporations in the blog below)

Available in: Maryland, Vermont, Virginia, New Jersey, Hawaii, California

The L3C

Formally known as a Low Profit Limited Liability Company, L3Cs are legal forms of business corporations that blend non-profit and for-profit investment efforts with a socially beneficial structure. With reduced regulations granted from the IRS, an L3C is classified organization that sets to attain social goals first, with profit second.

Available in: Vermont, Michigan, Wyoming, Utah, Illinois, North Carolina, Louisiana, Maine, Rhode Island

Flexible-Purpose Corporation

A Flexible-Purpose Corporation is a socially conscious enterprise that allows for extreme flexibility in their structure and processes. These corporations specify a “special purpose”, either with a social cause or charitable activity, in addition to their pursuit of seeking profit. While most business corporations focus mostly on maximizing shareholder value, the goal of Flexible-Purpose Corps is to have a structured legal organization where profit is pursued alongside social aims.

Available in: California

Main Differences:

- Company profit is still an expressed purpose of a Flexible-Purpose and Benefit Corporation, with neither profit nor social issue outweighing the other. With an L3C, the public benefit comes first, profit second.

- Flexible-Purpose and Benefit Corporations both produce annual reports on their purposes and objectives. Only in California, do Benefit Corporations require third-party assessment on the reports.

- On a scale from a fully functioning Business Corporation to a Non-Profit, Flexible-Purpose Corps would tilt towards Business Corporations, while Benefit Corporations tilted towards Non-Profits. L3Cs would be the mark directly before a full Non-Profit.

Tags: benefit corporation, Business, Business Pan Writer, Business Plan, evaluating business plan consultants, L3C, non-profit, nonprofit corporation, socail enterprise

Beaches to Business Plans: A Market Pulse Interview with CEO Tyler Jensen

Posted on Thursday at 12:00

bio-img-tyler

Serial Entrepreneur and CEO of The Startup Garage Tyler Jensen speaks with Market Pulse on ESPN 1700 in San Diego. Tyler was invited to talk with Market Pulse for their weekly “Words of the Wise” segment. In this hour long interview Tyler talks about his first business, his journey in the launch, growth and sale of VaVi Sports and Social club, and how to avoid the mistakes he made as a first time entrepreneur.

Highlights include:

How he went from having nothing in his bank account to selling his first company for 125 times the initial investment.
How, after having sold VaVi, a year spent on the beaches of San Diego led to the realization that helping other entrepreneurs was his passion.
Why many people have great business ideas but going from the idea to a successful business is the challenge.
The importance of matching the lifestyle you want to live with the company you want to start.
Why having a business plan writer write from a place of personal experience is paramount.

Tyler also answers listeners’ questions on what it takes to write a business plan, the process of creating a business plan and how they’re priced.

Click on the link below to listen to full interview.

Market Pulse Interview – Tyler Jensen

Transcription coming soon.

Tags: Business, Business Idea, Business Location, Business Plan, Choosing a writer, ESPN1700, interview, launching, personal foundation, planning, startup, VaVi

Driving Economic Development with Inclusive Business

Posted on Tuesday at 12:00

An Inclusive Business is a business model that strives to benefit the community by directly including low-income populations into their business cycles, whether as producers or consumers of the good or service. It is a strategy that aids a large and often forgotten section of the community through social initiatives while still fostering business growth and for-profit policies. A main driving force behind Inclusive Business models is to create sustainable means of support for the society without the use of welfare.

Inclusive Business models vary slightly in the way they approach social issues then the Social Enterprise models discussed in our previous blog. Social Enterprises are organizations that blend their business between financial and social returns on investment in attempts to raise social awareness and aid to their cause, and to funnel monetary support to both the company’s growth and social issue as well. Though extremely similar concepts, Inclusive Businesses are created with the direct intent of benefiting one social issue – the poor. Going further, Inclusive Business models do not just raise awareness or financial aid for their cause; rather, they take frank and hands-on approaches towards achieving their goals. This is done by utilizing local suppliers for the company, creating products and services that are targeting towards the low-income community, or by making a point in employing a large majority of low-income persons.

The Inclusive Business model theorizes that if companies target the low-income community, who on a global economic pyramid are our base and largest sector, we can slowly integrate them towards more modern and formal economies. Through employment, a sector that primarily works in labor now will begin to gain human capital through formal training as well as an income that introduces them to new financial markets. As consumers, the community can be endowed with new products and services that specifically match their needs. With all of these segments of the business cycle fully turning, we would see a rise in local employment, skill, and income which in turn would drive economic development and growth.

Tags: Business, Business Idea, Business Plan, How to, inclusive business, Startup Phase

How to Choose a Business Plan Writer

Posted on Thursday at 4:27

Regardless of whether you are a first time entrepreneur starting a new business or a seasoned entrepreneur seeking capital to leverage your existing business, any investor will require a business plan. Writing a business plan is incredibly daunting for most business owners, whether because of difficulty, lack of time or lack of expertise. As a result, many entrepreneurs turn to professional business plan writers and/or consulting firms to write their business plan for them.

When searching for a business plan writer or consulting firm, you will find there is a large variety in the types of services offered, the approach taken and the price quoted. Below are a few tips to consider when evaluating your options:

Collaboration

First and foremost, be cautious of any company that promises to write a business plan for you in less than week and only requires a limited amount of information from you. You should enter this process knowing that you, as the client, are the expert in your business and that you will be required to work side-by-side with your business plan service provider to ensure that your plan reflects your business and your goals. The service provider should have a sense of what type of collaborative or consultative process works best, but nonetheless, your involvement in the process is paramount.

Writing Quality and Previous Success

Before hiring a writer, you should request samples of previous business plans. Upon reviewing the sample, ensure that the writing is succinct and to the point (as this is what investors prefer) and that the document is free of any typos or major mistakes. Be sure to critically evaluate the executive summary and financial model as this is where investors will spend the majority of their time.

Furthermore, you should try to gauge your service provider’s track record. While the service provider likely will not have an exact percentage of success, they may be able to provide the amount of funding they have helped their clients secure or the number of businesses successfully launched. At minimum, they should be able to point to a few success stories that you can verify later on. You should also ask if the service provider has any testimonials available and potentially even references.

Price is Not Everything

As is the case with most service based businesses, you often get what you pay for. Nonetheless, you should certainly shop around your business plan to gain an understanding of the pricing options available, do not make the mistake of evaluating a business plan writer simply on the price they give. While you can likely assume that the cheapest option available will result in a lower quality product and service, the inverse is not necessarily true in that the most expensive option will result in the best product and service.

In any case, no matter how cash-strapped your company is in its pre-funding stage, you should not cut any corners on your business plan. A proper business plan will greatly increase your chances of raising capital and operating a successful business. Similarly, an inadequate business plan will stop you dead in your tracks. As a result, spending money on a business plan should not be seen as an expense, but rather an investment that you are making in your company’s future success.

Tags: Business, Business Pan Writer, Business Plan, Choosing a writer, evaluating business plan consultants, How to

A Visual Look at US Angel Investing

Posted on Wednesday at 11:56

The image below is the first of its kind – issued by The Angel Resource Institute (ARI), Silicon Valley Bank (SVB) and CB Insights, the Halo Report image provides us with new and graphic information regarding the Angel Investment world.

Some of the highlights we took from the report:

California leads in deals and dollars among individual states at 21% of investment
Median angel group investments grew to $700,000
58% of angel group investments were in healthcare and internet companies

60% of healthcare investments were in medical device and equipment companies

Tags: Angel Funding, Angel Investing, Business, finance, Funding, Venture Capital

« Older Posts