EFFECTIVE BUSINESS PLAN

5 Tips for Effective Business Planning

Clearly define your business idea and be able to succinctly articulate it. Know your mission. Examine your motives. Make sure that you have a passion for owning a business and for this particular business. Be willing to commit to the hours, discipline, continuous learning and the frustrations of owning your own business. Conduct a competitive analysis in your market, including products, prices, promotions, advertising, distribution, quality, service, and be aware of the outside influences that affect your business. Seek help from other small businesses, vendors, professionals, government agencies, employees, trade associations and trade shows.

GOOD BUSINESS ATTITUDE AND STRATEGIES

You will need to do things in a certain way to maximize your chances to succeed. This “certain way” is what we call strategy, from the general business attitude to specific approaches.

1. Fail Often

Good judgment come form experience but experience come from bad judgment, Not entirely true, I know, but enough to make you think. Don’t be afraid to fail. Kill all your ”brilliant“ ideas by making them real first. 99.99% of the genial ideas don’t survive after you make them real. 99.99% is a big number. Prepare to fail for 99.99% of your time. The 0.01% is really worth.

2. Fast Is The New Slow

If you really want a piece of the online cake you have to think super fast. If you think fast, you’re slow. Technology is evolving at such a rate that you can almost hear it growing. The adoption of the phenomenon is the fastest in the whole humankind history. You’re doing business during a revolution. And, usually, during revolutions they get rid of the old / slow stuff pretty fast (think head chopping and you’ll have an idea).

3. If You Don’t Blog, You Don’t Exist

The old days of anonymous business presence on the Internet are over. You need an identity. Preferably, your own identity. And the easiest way to establish, maintain and promote an identity is having a blog. Blogging has become an internal part of the online business process, much like a domain name: without it, you don’t really exist.

4. Be Informed

Stay on top of the news but filter the information. Being informed is a balanced attitude. Don’t rush to become a hype whore, praising every single ”next boom“ idea, but don’t get too skeptical also. Watching the trends in the online business can be a business in itself, though you need a really good filter and a cold judgement in order to take only what’s really useful for you or your business niche.

5. Social Media Works

It might be overrated lately, I agree, but social media really works. As an observer of the online phenomenon in the last ten years I can tell you for sure that this IS a revolution. Much slower than it’s perceived or presented, but there is a real shift from consuming information to interacting in larger communities. Social media is a place where you really want to be if you want to do business on the internet.

6. Praise Your Success

I really don’t see any reason whatsoever you shouldn’t be proud of what you did. If you’re successful, let the world know. Being shy will not help you here. You’re acting on a field so crowded with information that even your own identity is difficult to persist, if you don’t actively work at it. Just because your clients know your name that doesn’t necessarily mean you’re perceived as an expert in your niche.

7. Don’t Focus On The Competition

But don’t ignore it either. This business field is so crowded that you’re surely having a lot of competition. Focusing on it will most likely drain all your resources. Instead, focus on your resources, on your projects and on your clients. Pure ranking (like I’m #1 and you’re #2) doesn’t really work in the online, but identity does. Work to establish an identity rather than engaging in competition wars.

8. Is This Really Useful?

Before starting to actually build your project make sure you’re able to respond a big, capital letters, no hesitation, out loud ”YES“ to that question. If you have the slightest hesitation, start the analyse over. If you will build something that wouldn’t make a difference (but it will just look good or shiny) you will lose. Your business must solve a problem. Period.

9. What Brain Real Estate Do You Own?

I usually describe branding as the real estate property you own in people’s brains. The ”shoes“ land is owned by Nike, the ”luxury car“ is owned by Ferrari, the ”classy watch“ is owned by Rolex, and ”mobile phone“ tends to be owned by Apple, lately. Almost every human concept can be defined as a real estate property in one’s brain. And a brand is actually the connection between that brain land and a specific product . Once you succeed in owning a pice of real estate in people’s brains, you’re set.

10. Don’t Listen To Them

Listen to you. Don’t listen to those who are telling you’re making a big mistake by quitting your daily job and starting a new business. You know better. They’ll praise you in a few years. So go for it.

11. Don’t Be Afraid

Yes it’s risky. Yes, nobody can guarantee total success. Yes, you may fail. So what? Being afraid will only amplify those possibilities. Accept that you can fail or succeed and move on. The beauty of the journey will soon make those fear fade like they never existed.

12. No Risk It, No Biscuit

Learn how to deal with risk and how to embrace it. There is no such business with “zero” risk. If it is, it isn’t worth the trouble. The bigger the risk, the bigger the payout of the business. And the online field is one of the riskier business fields you can imagine.

13. If It Was Never Done, Look Twice

Most of the time, an idea nobody had until you is worth the trouble. But if nobody implemented it so far, there must also be a reason. The “first of its kind” ideas are not always a sure win, look twice. This is not meant to inhibit your creativity, but to ground you more and avoid seeking novelty just for the sake of it.

14. When It’s Cooking, It’s Cooking

If your idea is starting to take off, don’t stop. You may be surprised how high you can go. Don’t just stop when your initial goal has been met. More often than you think, this initial success is only the gate to something bigger than you ever imagined. Don’t let yourself out of this bigger picture by remaining stuck in an initial, comfy, small success.

15. Seek For Advice

You don’t know everything. Fortunately. Because if you would know everything you’ll miss all that thrill of discovering the unknown. Just ask for advice when in trouble, don’t assume you know everything. Or do an online search. Chances are that somebody had the same problem before and the answer is out there.

16. Do Whatever It Takes

if you have to convince 100 people to make your project alive, do it. If you have to walk 1000 miles, do it. Do whatever it takes to make your idea real. Don’t think: “but this is too hard”. It isn’t. It’s your idea and you’ll be so happy when you’re going to see it live. So, do whatever it takes for that.

17. Trust Your Intuition

There are no schools for that, so it cannot be learned. Intuition is that instant light shed on a subject only for a split of a second, just enough for you to think it was there. Things are different in that light. Whenever you see it, trust it. Intuition can often draw the line between a “correct” entrepreneur and a brilliant one.

18. Practice Courage

This one can be learned, so do your best to learn it. Courage means doing stuff regardless of the context. Act with all your power towards making things happening. It doesn’t mean you’re not going to be afraid from time to time, it means you’re going to pursue your goal regardless of those fears.

19. Maintain Enthusiasm

This one can also be learned. If courage is the action, enthusiasm is the fuel for that action. Make sure you always have enough of that fuel. Seal your doors in such a way that depression will never make an entrance. In my opinion, enthusiasm is an asset bigger than any financial support you can get.

20. Do It For Yourself

Entrepreneurship is a fantastic personal development tool []. Regardless of the outcome of your business you will learn tremendously out of this. Do it for yourself, not for the money (although money is pretty good, also). Whatever you do, keep in mind that there aren’t really failures or successes, there are only results.

21. Be Self Sustainable Before Asking For Money

Going around and asking for funding while you’re still on negative cash-flow will create more harm than good. At this eraly stage – which is most of the time unavoidable – all the funding you can find is either angel investors, either the 3 ”F“: family, friends and fools. I gladly recommend the 3 ”F“ anytime, an angel will put a lot of pressure on your development and strategy. Once you have a constant, positive cash-flow, go out and shout for funding, they’ll line up at your door office.

22. Balance Your Expectations With The Market Status

When establishing strategic (and financial) goals pay attention to the market conditions. Always balance your own ambitions and expectations with real numbers from the market. If you don’t do that you’ll end up either aiming unrealistically high, either going under your true potential. If you’re that good, those realistic expectations will be surpassed by your results anyway.

23. Brand Yourself

In the online field, more than in any other I know, personal branding is compulsory. And by that I mean absolutely unavoidable. Your online presence will work while you’re asleep, while you’re on holiday, while you’re working hard on a new secret feature. Maintaining a solid, persistent online presence is the key ingredient to a successful personal branding. Don’t assume people knows everything about you, constantly reinforce what YOU want them to know about you.

24. Watch For Your Break Even

But don’t consider it a success in itself. That’s what a business have to do in the first place: pays the money invested in it. A common strategy mistake is to slow down after the break-even, considering that the simple fact of reaching it will further endorse the business. On the contrary, it’s only after the break-even that you’ll see how much your project really worths in terms of profit.

25. Network, Network, Network

Go out and meet new people. Clearly state your expertise and and ask the same from your peers. Let them know why you’re doing business and how. Join professional organizations and attend to informal meetings. There is no such thing as an upper limit to your connections in the online field.

26. Don’t Fall Into The Productivity Trap

Sometimes you get so caught in a productivity trap that you lose sight of the long term goals. You work so hard and so organized that you can’t see where you’re heading anymore. If you reached this level, it’s time for you to hire a manager. You’re en entrepreneur, you have to see the road and lead your people there.

27. Don’t Let It Eat You

A business is just a business, not your life. Took me years to understand that. Too much of an implication in your own business is not good. At some point, you’ll be burned out. Be sure to build some fences between your private life and your professional life.

28. Boredom Is Bankruptcy

If you get bored about your business it’s time to get out of it. Quick. Out of any imaginable dangers of a business, I cannot think of a one more powerful than boredom. The second you feel you got bored, make whatever you can to leave it. Otherwise you’ll end up having the worst job ever: being a bored employee (you) working for a bored boss

BUSINESS TIPS FOR ONLINE ENTREPRENEUR

1. A Brilliant Idea Worth Nothing

I can have 100 brilliant ideas per minute. And I’m not joking. I know a guy who can have his brilliant ideas in his sleep. Guess what: he’s not an entrepreneur. An idea without action worth nothing. Nada. Zilch. Zero. Focus on your immediate resources to make something plausible working as fast as you can rather than waiting for something allegedly brilliant to grow by itself. It never happened and it will never happen.

2. You Sell Processes, Not Products

In the online business, what you are selling is not a product, nor even a service. It’s a process. You sell an entire experience, regardless of your niche. From a personal blog up to a link directory, what you are offering is not atomically identified as one single product or service but as a unique process. Is this unique combination which creates the value behind the business, not the parts. Look at the whole experience, not only at the most visible pieces of the puzzle.

3. If They Copy You, You’re Good

One of the most accurate proofs that you’re doing a great job, is your clone trend. If your site / product gets cloned, you are in for something. If you’re not cloned at all, something must be wrong. Many young entrepreneur have this fear of not being copied. In fact, being copied is the only surefire sign that you’re good. Of course, you WILL have to deal with all the legal hassles of content theft or copyright infringement, that’s for sure, and I’m not advising in any way to ignore that. I’m just telling you this is a sign of success and should be treated like this.

4. Don’t Look For Traffic, Look For Trends

One of the most present obsession among online entrepreneurs is related to traffic. How much traffic I could generate with this project? In my opinion, traffic is overrated. At the speed of the Internet, traffic is becoming really volatile, users are bombed with loads of information each hour, so rough numbers are not a reliable way to judge your product impact. Instead of numbers of visitors, look for trends: how fast is the site growing / slowing down? Think in percentages, not in thousands of users.

5. The Network Effect

If you want to launch an online business, think twice. It may be worth to launch 5 online businesses at the same time and link them in a network. Maybe your flagship idea will consume most of your focus and resources, but having 2-3 satellite websites / projects orbiting the main product will have a bigger impact. Not to mention the learning advantage: you will incorporate much more knowledge from a network, than from a single product.

6. If You Don’t Like It, It Usually Won’t Work

If you don’t like your idea, but you ”feel“ it will generate lots of money, usually it will won’t work. It might generate lots of money, if it exploits some market uncovered niche, but without your enthusiasm fuel, it won’t be there for long. It will be extinct faster than a passion fueled idea. A good project must give you the thrills, not the only the money as empty numbers.

7. Fall In Love With Your Project

If you experience familiar sensations, like chills and butterflies in the stomach, whenever you’re thinking at your project, that’s a sign you’re falling in love with it. No, it’s not awkward. No, you don’t have to block those feelings. Let them express and treat your project like you would treat your beloved half. I’m not joking.

8. Measure, Measure, Measure

Always use all the available metrics to see where you are with your project. Don’t be fooled by your imagination nor let those wishful thinking episodes get in your way. Measure your impact. Watch your money, trends, team, partners and see what’s happening. Keep your eyes opened and be ready to cut if things are not looking as you would expect. Better sooner than later.

9. Manage The Break Up

Sometimes, your projects won’t work. Accept it. Even more, manage them carefully. Closing a project is a skill in itself, a skill that you’ll have to master. Each closed project may (and it should) give you resources for the next one. Just leaving debris floating around in the web universe will not make you popular, on the contrary. Not to mention the hidden costs of keeping those projects around.

10. Build A Community First

Your product (or process) will be useless without a backing community. It might be the next best thing since sliced bread, but if you don’t have a reasonable pack of people vouching for it by using it and promoting it every day, that product is as good as dead. Building a community first is one of the awkwardness of the online field, when you have to build a positive reaction around your product even before launching it for real.

11. Be Curious

Don’t assume you know everything. Allow yourself to be curious about stuff that looks interesting or intriguing. Creating good online products (or processes) is often the result of an unstoppable curiosity about ”why is this like this and not the other way around?“. Curiosity may have killed the cat, but that really has nothing to do with your projects. Really.

12. Your Projects Are Your Teachers

You learn by trial and error. There are no foolproof books on how to build a successful online business. Even this list is the result of my personal experience and believe me, it isn’t foolproof at all. It may or it may not work for you. And you will never know until you go out and start doing stuff. Don’t search for the perfect recipe of a successful online business because you will never find it. Just do stuff and you’ll learn how to do it by yourself.

13. Plan, Plan, Plan

Carefully write down every step you need for your project. Create milestones. Respect them. Try to predict any potential danger and take it into account. Planning thoroughly your projects will be the best service you can make to yourself and to your team. Sometimes you’ll realize the project is simply not worth doing, when you realize how much work really is involved. Sometimes you’ll realize you need fewer resources than you initially thought.

14. Build Discipline

You already have high goals, all you need is some discipline. The bigger your internal discipline, the higher your chances to respond well to market changes. Being disciplined won’t make the field less hectic, you’ll still be walking on very thin ice, but you’ll be able to react faster to external change.

15. The Excitement Stage

Each project has an excitement stage. It’s the beginning, the novelty, the thrills of making something happening. It will not be like this for ever. Many entrepreneurs are abandoning projects after this initial stage, and that’s a pity. Just use the fuel you get from this enthusiasm but still walk the path when the thrill is gone.

16. The Involvement Stage

After the excitement come the real action. This is where you actually start to implement the processes in your business. It’s a long and sometimes tedious interval. In my experience, the involvement is the most expensive part, in terms of time consumed, skills and money. This is where you build your business, stay there.

17. The Measuring Stage

This is where you start drawing lines and do the math. This is most of the time the moment you know if the investment was good or bad. It’s fundamental and you should not skip this under any circumstances. Be sure any project have a measuring stage, in which you can decide the resource allocation.

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KEYS TO BUSINESS SUCCESS

Though there are many factors that are key to creating business success, our analysis over the years indicates that the most successful companies have followed the following principles.

Follow the Process of Accomplishment
What enables companies to make giant leaps and great improvements in a short period of time? Is there a process that can be learned that we can follow that will bring about radically accelerated growth, profitability, and success in a company? We think there is. Develop core goals, strategies, and values at the top, see that they are fully committed to among top executives and managers, and then insure that they are communicated to and have the full endorsement of everyone in the company.

Core Values
In many recent business management books and journals, developing, adopting, and implementing values has been identified as perhaps the single key in the success of many high growth, high profit companies. A passion for a value and its implementation into the daily activities of work was identified by many as the single key to their business success. Implement your core business values in every system, activity, and operating procedure, down to every act in the company. Especially powerful values are Continuous Improvement, Customer Delight, Developing People, Maximum Utilization of Resources, and Innovation.

Organize and Systematize Everything
Make everything spotless and orderly in the company. Insure all job positions are well defined, all standard operating procedures are defined, and activities are clear. Turn every activity in the company into a system. Then coordinate systems to one another.

Coordinate Organization Components
Make your organization more "dense" by coordinating departments (or divisions, teams, and other components) with one another. For each department (or other component) think about how it can be coordinated with every other department (e.g. R&D with Sales, HR with R&D, etc., etc.). Then implement the best coordination ideas.

Commitment to People
Treat everyone in the company as family. Do everything you can to improve the morale, input, skills, energy, career, aspirations, and personal growth of every employee.

Customer Delight
The most successful businesses have discovered a formula that goes beyond product and service. Their business is providing delight to their customers by understanding their specific personal interests, anticipating their needs, exceeding their expectations, and making every moment and aspect of the relationship a pleasant -- or better yet, an exhilarating -- experience.

Do anything and everything possible to please the customer.


Awareness of Opportunities
Life is continuously throwing up new opportunities in every industry for those who have the eyes to perceive them. It does not require a visionary's genius, just an open mind and a will to see. New opportunities are constantly emerging because society is continuously evolving, and the rate of social development is greater today than at any prior time in recorded history.

Do everything in your power to be aware of, understand, and take advantage of the opportunities in the marketplace.

Align with Aspirations of Society
The greatest growth occurs at moments when companies align the development of these internal engines with the explosive emergence of new forces in society.

Understand the social aspirations and energies of the society around you, and make an effort to align your business with those energies.

Personal Growth of Highest Management -- Often the greatest limitations to a company's growth is the limited capacities and character of its owners, and top officials. If they grow, the possibilities for the company are endless.

Determine Strengths and Weaknesses
Examine the strengths and weaknesses of the company and make a total commitment to overcome the most important weaknesses. One approach is to examine the strength and weaknesses of each of the five growth engines -- market, products & services, organization, people, and finance.

Openness
Be completely open to change, new opportunities, and new direction. Leave dead attitudes, habits, and opinions behind.

Unfailing Success
Follow through on every valid initiative (goals, plans, etc.). Consider if there is a positive, emotional attitude, and the persevering, unflagging effort to see that the initiative is carried out.

Overcoming Problems
Think of negatives as positives. Look at problems as opportunities for improvement, change, growth.

HOW TO CHOOSE A PROFITABLE BUSINESS

BUSINESS!! BUSINESS!! BUSINESS!!

A business isn't something you can choose off the shelf like a can of beans. The most profitable business for you to start won't be what someone else tells you will produce a lot of income. To be successful - and profitable - a business has to be something that matches up with your abilities, interests, skills, lifestyle, time available to work, personal contacts, ability to find new customers and the money you have available to launch the business. Many people build successful businesses by doing the same kind of work they did as an employee. For instance, people who work as artists often start their own graphic design firms. Writers sometimes start newsletter businesses or other businesses in the communications field. Corporate software developers start their own businesses as computer consultants or programmers. Some people get their start by turning former employers into customers. Others start successful businesses by turning hobbies into income-producing ventures. And sometimes people teach themselves new skills and then launch successful businesses based on those skills. Your best bet for finding the right business is to do a self-assessment. List all the things you know how to do and like to do. Consider ways that each can be turned into money. Then consider who would buy each of the things you might possibly sell and what you'd have to do to find those people to buy your product or service. Look for matches. Is there anything on your list of skills and interests that ranks high as far as the number of people who need that item or service? If so, do you know how to reach those people? And would you have enough money to launch the business and wait for a few months to get back your costs if you start to be successful? The more "yes" answers you can honestly give to any business idea, the more profitable it is likely to be for you. Good luck!