Posts Tagged ‘Business Planning’
What is a Business Feasibility Study, and can you afford to skip it?
Most successful entrepreneurs will tell you that conducting a feasibility study is vital in that very first stage of developing a business. But if we’re honest, how many of us actually understand what a feasibility test really is? continue reading
Getting the most from your Accountant
We all know the general consensus that people dread visiting their accountant like they dread visiting the dentist..
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Dreams From My Father – Barack Obama – Reviewed by Fiscal Student
You may ask, why a book written by a politician who has no business background is included in my business book reviews? My answer is that there are lessons to be learned from an extraordinary performer in any field, and it is apparent that Barrack Obama is an extraordinary performer by any standard. Because this book was written before Barrack entered politics it is perhaps more honest than it is possible for him to be now. This honesty allows the reader to gain a great insight in to Barrack’s personal character and makes it possible to identify some reasons why he has been such a success.
1. Successful People are People Too!
Generally when he hear stories of very successful people, we hear about their amazing work ethic and drive, they are presented as people with almost superhuman focus. So what was refreshing for me as a 23 year old was to find out that at one time Barry (as he was called at the time) was just another college student, unsure of who he was or what he wanted to do with his life, who enjoyed parties and girls just as much as the next guy!
2. It is Never Too Late
Barrack Obama did not graduate from Law School until he was 31. The general consensus is that you got to college, pay off your loans, and work until its time to retire, probably changing companies and roles a few times along the way. But it is evident from Obama that it does not have to be done this way. Obama did what he wanted to do after college. Then after a few years he decided that he would go to Grad school and increase his knowledge and skills and begin a new departure in his life. I think it is fair to say that Obama’s journey to the presidency did not begin until Law School. He did this at an age where most people have accepted that the way their life is now is how it will continue to be. But he has shown in the time since he graduated that it is never too late to try and change and improve.
3. Passionate Perseverance
You only get once chance at life, therefore it makes sense that we should all do what makes us happy. While this is easier said than done, there is a generally held belief that we should all work at something we have an interest in and we are passionate about. But in our busy world filled with bills, invoices and doctors fees, it often doesn’t seem practical to pursue your passions or something gets in the way of our dreams. Most people prefer to take the safe job that they might hate, rather than take a chance on something they love but may not seem practical or provide enough financial support. Barrack Obama though, did what very few people do. After college he chose his career based on his passions not his paycheck. He became a community organiser in the south side of Chicago. He wasn’t making much money, but he was truly doing what he loved. The result of this (although he is modest in the book) is that he was fantastic at his job and had a profound impact on those he worked with in the community and their lives. Obama then went to Harvard Law School and on completion of his degree, he again turned down the option of pursuing a career with great financial rewards, and began work as a lawyer helping the poor in Chicago. From that point on we all know that he rose quickly in politics and eventually became Senator and eventually President. I think this shows the power of passionate perseverance. Obama was passionate about helping people and trying to improve government and this passion has lead him all the way to the White House.
The two main lessons I took from this book can be universally applied. If you are passionate about something, whether its playing a sport, volunteering in your community or writing a blog, the extra time, effort and energy required always seems worth it. And secondly if you are passionate about something but haven’t done it yet, joined a team, cooked for a bake sale or started writing, then why not just start now, because it’s never too late…
Thanks Fiscal Student…another great review.
Do your research, and get off the doorstep…a blog by Dr Peter Stafford
Many of us who listen to politicians mentioning what people “on the doorstep” are telling them, wonder which doorsteps they’re canvassing.
Politicians have a strange ability to pick doorsteps owned by people who want to tell them how great they are. Second hand reports from the doorsteps give politicians great ammunition when facing a hostile interviewer. How many times have we heard a cabinet minister say “actually, the issue of the missing money isn’t an issue, Pat/Miriam/Holy Father. The people on the doorstep are telling me that I’m doing all of the right things and they want me to keep on as minister.”
An unverifiable anecdote masquerading as fact is great when you’re a politician being interviewed on drive time radio but it’s no use at all for a start-up business person who wants to know if anyone likes his product. Politicians have incredibly selective hearing and it’s only by tuning out the sound of all of the doors which are slammed in their faces and by ignoring the angry constituents who vow never to vote for them that they’re left with a group of loyal fans whose welcoming doorsteps give them the self-belief to keep on working.
Many small businesses fall into the category of tuning out opposition and ignoring people who aren’t interested in their product. They think to themselves “actually, people aren’t saying that I’m flogging overpriced tat six months after the trend has moved on. The people on the doorstep are telling me that my product will change their lives and they’re willing to pay twice as much for it.” Survey sample? One person.
Good businesses need good research. They need proper analysis of the facts, not an unverifiable anecdote from a loyal supporter. Not only do businesses need to know who will buy their product and how much will they pay for it, but they need to know what external factors are likely to have an impact on sales. What’s government doing to regulate the field? What’s happening to the economic context in which you’re making a sale? Is there a societal consequence to your business?
Bill Clinton ran an election campaign on the simple statement that it’s the economy, stupid. The economy will dictate everything. The economy will decide how many clients you have and how much money they have to spend on your product. It will dictate how much the government will tax you on your product (and, if you’re lucky, any profits) and it will dictate whether competition from home or abroad will gobble up your business.
At the time of writing, the stockbrokers and financiers are beginning to make their economic forecasts for 2010. Ireland will, depending on whose forecast you read, emerge blinking into the sunlight of strong economic growth, or spend next year in the darkness of prolonged recession. GNP growth (% per annum) is not an abstract number, created by economists for the amusement of economists (although if you go for a pint with a group of economists, you’ll find it is) but it matters enormously to the start-up business Do you want to start your company in a recession? Is there merit in waiting? Will the forecast for the economy help you persuade the bank to finance your endeavour? Have you factored the tax implication of the change in the economy into your business plan?
Personal anecdotes from potential clients and customers will undoubtedly help you hone your business model into one which can maximise customer loyalty. Politicians, economists and stand-up comedians all use focus groups.
But the input of potential customers needs to be grounded in fact, and all start up companies should be spending time listening to the financiers and the economists talking about their projections for the economy. This doesn’t mean you necessarily need to read the Financial Times every day. Indeed, one of the great secrets of economics is that nobody really reads the Financial Times; they just look at the adverts for expensive watches and cry for their lost millions. The pink pages of the paper blot away the tears.) But using good, well-networked research support can help put some facts in place which will make an enormous difference to your business plans.
Why? Well, for one thing, the chances are you already have a better understanding of the macroeconomic context in which your enterprise takes place than anyone else. Donald Rumsfeld (who, as a politician, is probably guilty of using doorstep anecdotes in place of the Financial Times) said of the Iraq War in 2002 that there are “known knowns. These are things we know that we know. There are known unknowns. That is to say, there are things that we now know we don’t know. But there are also unknown unknowns. These are things we do not know we don’t know.”
In six short, but bewildering sentences, Rumsfeld summarised the need for solid research, well presented. And that’s exactly what I’m trying to help Irish businesses do – find out what they know and what they don’t know, but also what they think they know, what they think they don’t know, and sort it, and fill in the gaps.
There are countless books about how to keep your home clutter-free. There are – dotted around different sections of the bookshop – more books about how to keep your mind, your career and your spirituality clutter-free. But there is a task to keep the flow of information in and out of your businesses clutter free. How do you compile and use all of the information you know about your business and how can you use it effectively? How do you summarise it into a report you can give to your bank manager, your PR Company or your shareholders? How can you fill in the gaps in your knowledge without becoming cluttered with more useless information?
The answer is by taking some time to find out what information your company lacks, and present what you do know convincingly. My aim is to look after all of that for Irish companies – streamline and maximise the usefulness of what you know, and present you with what you don’t know. Grounded in fact, stripped of clutter, presented clearly and convincingly, your company will be on better footing than any politician, blinking under the studio lights as he launches into another tale from the doorstep.
Dr Peter Stafford
peter.stafford@gmail.com
+353 (0)86 150 2891
twitter: @peterstafford
