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Add You - Business Planning for Start-Ups - Make It Realistic
As a computer service company manager, it's your job to motivate your employees. You need to be familiar with the many motivational strategies in order to assure your computer service company runs smoothly. Your business will enjoy more success if your employees enjoy their jobs and feel pushed to do their best.How to Motivate EmployeesA successful motivational strategy will recognize an employee's work, make him feel in control of his job and be satisfying for him. The following techniques can be used to help managers get the most out of their computer service company staff: make the job worker-friendly;
The main point is that a bottom-up approach will produce a much more realistic forecast than the most conservative estimate about the market share of an estimated market size. The entrepreneur and his team can argue about the advertising budget, sales calls per week, new customers added each month, increasing the order size, and so on. The bottom-up a
Earlier relocation was the toughest work to do and people used to face various problems. But with the entrance of Redline Movers in the market tables have been turned now. After spending few years in the moving business, Redline Movers has been tagged as one of the best moving supplies in NYC.Redline Movers is one of the best New York moving companies providing easy move of goods and inventories. Determined in providing professional and quality services, Redline Movers makes sure that you get best moving supplies in NYC. Going by the latest trend moving supplies in NYC have gone through a radical change. Thus to sust
The academic approach to writing a business plan typically includes conducting market research to determine the size of the potential market, characteristics of the competition and nature of the customer base. The entrepreneur usually gets in trouble when it comes to using this information to determine a revenue and profitability forecast. Taking a large potential market size and calculating the penetration needed to become profitable can lead to an unrealistic conclusion. It may seem very possible, for instance, to assume gaining 1% market share of a $100 million regional market in the first year. A first-year forecast of $1 million even looks like it would be a very conservative projection. The key question is “how?”
A much more realistic approach is to work with the things the entrepreneur knows best about his venture. Determine the answers to the basic operating questions: how much advertising money does he have to spend; how many sales people he can afford to hire; how well known is the product or service; how easy will it be to convince a customer to buy; and how often will the customer re-purchase in a year. Then do a “bottom-up” forecast of the expected revenue and expenses for the first couple of years.
• Advertising will reach the eyes of how many customers?
• Each sales person can contract how many customers each week?
• How many customers would have to be contacted before a sale is made?
• After an initial sales call, how long should it take before the customer actually places an order and pays the invoice?
• What is the average sales revenue per customer?
As an example, the start up company can only afford to hire five sales people. Each sales person can be expected to get through to 50 prospects per week for 50 weeks in the year. Of those prospects, 5% will be become customers within six months. The average customer can be expected to order $500 each year. Therefore, a bottom-up approach would calculate the first-year forecast as follows: 5 x 50 x 50 x 5% x $500 = $312,500
The main point is that a bottom-up approach will produce a much more realistic forecast than the most conservative estimate about the market share of an estimated market size. The entrepreneur and his team can argue about the advertising budget, sales calls per week, new customers added each month, increasing the order size, and so on. The bottom-up a
If you are organising an exhibition, event or even exhibiting your own stands display at an event, you will want to ensure that people are aware of your presence, ahead of time. Making your presence known at an exhibition ahead of time can help to drive interest and visitor numbers. So what can you do? One idea is to submit an electronic press release online to one of the many websites who now specialise in electronic press releases. Before submitting the press release though, you need to know how to write one. Below are 8 tips to help you write the online press release to promote your exhibition or exhibition stand.
A much more realistic approach is to work with the things the entrepreneur knows best about his venture. Determine the answers to the basic operating questions: how much advertising money does he have to spend; how many sales people he can afford to hire; how well known is the product or service; how easy will it be to convince a customer to buy; and how often will the customer re-purchase in a year. Then do a “bottom-up” forecast of the expected revenue and expenses for the first couple of years.
• Advertising will reach the eyes of how many customers?
• Each sales person can contract how many customers each week?
• How many customers would have to be contacted before a sale is made?
• After an initial sales call, how long should it take before the customer actually places an order and pays the invoice?
• What is the average sales revenue per customer?
As an example, the start up company can only afford to hire five sales people. Each sales person can be expected to get through to 50 prospects per week for 50 weeks in the year. Of those prospects, 5% will be become customers within six months. The average customer can be expected to order $500 each year. Therefore, a bottom-up approach would calculate the first-year forecast as follows: 5 x 50 x 50 x 5% x $500 = $312,500
The main point is that a bottom-up approach will produce a much more realistic forecast than the most conservative estimate about the market share of an estimated market size. The entrepreneur and his team can argue about the advertising budget, sales calls per week, new customers added each month, increasing the order size, and so on. The bottom-up a
We could learn a thing or two from pro sports.Baseball players use stats to tell the story of their season and their career. Scorekeepers keep track of every at bat, every hit, every strike out, every run scored and every base stolen.Those stats are cited by commentators during the game, sports reporters after the game and they are featured on the backs of baseball cards to they tell the story of the player's career.Those of us in business could learn a thing or two from baseball players about using stats to size-up our careers and experience.Give your prospects a reason to listen to what you hav
• Advertising will reach the eyes of how many customers?
• Each sales person can contract how many customers each week?
• How many customers would have to be contacted before a sale is made?
• After an initial sales call, how long should it take before the customer actually places an order and pays the invoice?
• What is the average sales revenue per customer?
As an example, the start up company can only afford to hire five sales people. Each sales person can be expected to get through to 50 prospects per week for 50 weeks in the year. Of those prospects, 5% will be become customers within six months. The average customer can be expected to order $500 each year. Therefore, a bottom-up approach would calculate the first-year forecast as follows: 5 x 50 x 50 x 5% x $500 = $312,500
The main point is that a bottom-up approach will produce a much more realistic forecast than the most conservative estimate about the market share of an estimated market size. The entrepreneur and his team can argue about the advertising budget, sales calls per week, new customers added each month, increasing the order size, and so on. The bottom-up a
Every day in every town in the country, Human Resource Officers are training. They are training people to successfully tell tall tales. It is, after all, one of the most sought after skills in business, along with evading the truth.You might ask, "How are we doing this?" Others might silently exclaim, "Of all the nerve! Why would we want to train people to distort the truth and get away with lying? I would NEVER do that!" Really? Well then, read my take on a short-story classic (with apologies to Stephen Leacock).Here is a little thing that I have worked out, which is superior to business games
• How many customers would have to be contacted before a sale is made?
• After an initial sales call, how long should it take before the customer actually places an order and pays the invoice?
• What is the average sales revenue per customer?
As an example, the start up company can only afford to hire five sales people. Each sales person can be expected to get through to 50 prospects per week for 50 weeks in the year. Of those prospects, 5% will be become customers within six months. The average customer can be expected to order $500 each year. Therefore, a bottom-up approach would calculate the first-year forecast as follows: 5 x 50 x 50 x 5% x $500 = $312,500
The main point is that a bottom-up approach will produce a much more realistic forecast than the most conservative estimate about the market share of an estimated market size. The entrepreneur and his team can argue about the advertising budget, sales calls per week, new customers added each month, increasing the order size, and so on. The bottom-up a
Among the first things an entrepreneur would do when he starts his business is to get a logo designed. A well-thought, well-designed logo can speak volumes of your brand and image. Logo design is really that important. Today I got a big surprise at a popular shopping mall located along the East Coast of Singapore).I have not stepped into that mall for ages, and was duly impressed with the revamp. It certainly looked much younger and more hip. Then, I got into the lift. There was this large poster and I was casually browsing it when I saw their logo.I felt that the simple "P.P." logo design (with non-descript
The main point is that a bottom-up approach will produce a much more realistic forecast than the most conservative estimate about the market share of an estimated market size. The entrepreneur and his team can argue about the advertising budget, sales calls per week, new customers added each month, increasing the order size, and so on. The bottom-up approach also forces everyone to carefully think about the strategies and the tactics that must be implemented to achieve the planning goals. Certainly these statistics should be monitored and the planning model revised accordingly as more actual results are known. More importantly, positive or negative results compared to the original assumptions will dictate the actions needed and the urgency required by the team.
Unless the company is blessed with an unlimited amount of start up capital, the entrepreneur must base his business planning on cash flow for the initial years. Uncollected receivables, sales growth, market share and “paper” profits are not going to ensure the survival of the new business. Each year 7 out of 10 new businesses fail and one of the primarily reasons is poor management of cash flow. This means that the start up may have to pass up some possible sales if those sales would take a long time to collect, and it may also have an influence marketing strategy for the product or service. Ideally the product or service has a short sales cycle (less than a month), practically sells itself (low selling costs), payment is received on delivery (account receivables less than 30 days sales), advertising is word-of-mouth and customers re-order often. If any of these are not ideal, then the cash flow requirements will likely be higher than expected. Managing for cash flow, not sales growth and profitability, is not for the long term, but it is essential until the company has accumulated a cash reserve or can attract financial backing.
Business planning provides the initial roadmap to the future for the new start up company, but it must be modified and revised periodically if it is to be of any real value as a management tool. Day-to-day, the entrepreneur will have to make decisions rapidly based on his knowledge, gut-feel or intuition. There usually is not enough time to conduct research and investigate alternatives thoroughly. As Mas Kodani, a Buddhist in Los Angeles, points out, "One does not stand still looking for a path. One walks; and as one walks, a path comes into be
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