5 Things to Consider When Starting a Business

A few days ago, a good friend emailed and asked what the 5 key things to consider when starting a business were.  Here is what we said:

1). Do you know there is a market?  Can you name, think of and profile the people or companies that will buy your product?

2) The business plan is actually for you so don't worry about what a banker needs to see and start with what you need to know and manage.

3). Know your numbers - knowing your accurate costs and also some reasonable sales targets is critical.  1000 units in month one is usually a sign of a bad plan

4) Who else is selling what you are going to sell?  If the answer is no one, you probably arent looking hard enough.  Rarely is a product or service so unique- even the iPod WAS competing with mp3 players initially.

5) Most plans take three times as long to get going and are two times the budget.  Plan according to this even when it seems like your sure-thing, guaranteed, hit a home run plans seems fool- proof.

Starting a business is exciting and challenging.  Having some guidance like a strategic business coach or mentor is critical.

When Do You Need HR?

Managing your HR is not a once a year, here’s your raise, here’s where you can improve event.  Managing your HR is a form of leadership and it takes place every day.

There is a formalized portion of managing the relationship with your people that means sitting down more formally a few times annually to give them feedback AND to get feedback.  To possibly review their compensation and also to give them an outline of how the business is doing.   It is a formalized sharing of information.

Most people perceive HR as forms, formal reviews and conflict resolution with some third party (internal or external).   So many of these processes are things that should be handled by managers and leaders within a company.  When a conflict escalates to needing someone outside the business to manage it – it is a breakdown of leadership.

Great leadership is about managing the most valuable resources your organization has, your people.  Managing your people means taking time to manage the relationships with them daily.

Great HR is talking to your people regularly.  This is true of a corporate CEO and also a department manager.  It is about putting your people first and ensuring your ego is out of the way so you can best serve them.

3 tools I love to use for good HR:

1)   30 minute coffees – sit down with each of your team and just talk – not about the business but about them.  What’s on their mind, what are they liking, what’s new, what’s frustrating, what’s new in their life.

2)   Annual roundtables with an outside person – having an HR professional host a round table with the team to get their honest opinions, ideas and questions.  Things get said that won’t always get said directly to an owner or manager.

3)   Random recognition – randomly recognizing the great work of team doesn’t require a formal presentation or review.  At the Monday morning meeting it should be a “play of the week”, a “customer support of the day” or some small recognition of your team’s efforts.

When people know they are valued and that HR is being well managed, they perform to their best ability.  That’s good business.

Financial Metrics - Cash versus Statements - Where to Look

In dealing with business owners and entrepreneurs, we are often asking questions about the financial health of a business.  This is also true when we deal with departments in a larger corporation.  Knowing the financial state and status of your business or department is truly critical.  

It is scary to see how infrequently some business people are monitoring their financial metrics and also understandable.  Most people that start out in business get annual statements from the accountant or perhaps quarterly.  Managers get a quarterly summary or see published quarterly numbers.  People get conditioned to waiting long periods before knowing how they are performing.

It is critical that finances and cash are monitored weekly and even daily and this doesn't mean waiting for the accountant.  Financials serve their purpose and update you on the health and condition of a business.  Unfortunately, changes in a balance sheet are often slow to demonstrate trends and a business owner need to know where things are constantly.  Cash is King in business.  Knowing your cash situation is the timely and critical means for managing business tightly.

We work with clients to ensure they are running at least a weekly financial/cash performance summary.  This includes, sales, accounts receivable (current and also immediately expected), accounts payable (current and also must pays), then current cash positions.   We can see cash shortfalls and manage our clients and suppliers.   We have seen people grow a $15 million dollar company on cash management without being able to read a financial statement ... this isn't ideal but does show the value of cash metrics before statement reviews.

Establish your weekly Key Performance Indicators (KPI's) for team performance and responsibilities AND then set the weekly cash flow KPI's next.  It is the key to growing a performing, profitable, company and team.

Strategic Plan or Strategic Execution - Where is the Best Value?

Most companies have some form of strategic planning, strategic development, goal setting and business planning.  In fact, when was the last time a major corporation didn't go through annual budgets or a start-up business didn't submit a business plan to the bank?   All forms of business strategy.

Developing a business strategy and a high level plan is critical whether you have 1 employee or 500.  As the organization grows, the need for more strategy to unify the team and their efforts compounds.   It is critical the plan is strategic and high level but also that it has ties down to the actions required every week.   This is the downfall of most plans/strategy work; it gets done in a boardroom and never makes it into the hallways of action and tactics.

At Evolve, we love to help clients develop their strategic plan AND then help them start to implement it.  Too often we find struggling companies with a solid strategic plan that is sitting in the president's office on a shelf.   A plan without action is a waste of the time committed to thinking up the plan! 

So the best value is in being able to know each week, month and quarter, what actions each person is undertaking to move the strategy forward.  This requires a review and discussion of strategy every week, and even daily, at times.   The regular review of strategy keeps what is important out in front of what is urgent (where most people exist). 

Use some tools like the gazelles.com one page plan as an example of how your strategy should get down to a single page outline.   We then recommend you take each strategic mandate and break it into pieces that can be executed weekly.

Strategic business is like marathon running.  You know when the big race is, you know what training will be required AND you know what distance and speed needs to be implemented today to make it happen.

The Key to Time Management is Condensing Time

It comes as no surprise that most of us struggle with managing our time and controlling our time.  With the on-going interruptions of the blackberry, the endless emails, the days of meeting after meeting and even the old fashion phone ringing ... where does someone find time to work?

Most people think the issue is FOCUS.  In some ways, it is.   But the second dramatic improvement that can be made for all of us, in terms of time management, is CONDENSING time.   When you book a meeting is it always 60 minutes?  When you sit down to do email, is it a set period of time, like 30 minutes?   How many 15-30 minute breaks do you have between events in a day?

One of the best exercises to condense your time is taking a 5 day week and being forced to condense it into a 3 day week.   You are instantly forced to look for opportunities to save time and put limits on things that can be limitless (ie. email).

Here are 7 other tips:

1) Set time to review email ... and then TURN IT OFF.   Yes, I am saying that to really maximize your time, you need to cover off emails early in the day and again later in the day but turn off the incessant bings, alerts and notifications.

2) Cut your meetings from 60 minutes to 45 and then to 30 minutes.   Try odd numbers to make the time limit more obvious and conscious - 28 minute meetings work better than 30 just like 43 works better than 45.

3) Stop accepting every meeting that is requested of you.   Review all meeting requests once a day and book in only those that add value to your role or work.   Have someone else in your office cover the meetings that "might" add value - get a report in 5 minutes instead of a 45 minute meeting.

4) Know what the top 3 ways you create value are and ensure that 80% of your time is dedicated to these focuses.

5) Move weekly meetings to bi-weekly with slightly more time.

6) Have stand-up meetings and daily huddles with your team - 10 to 12 minutes tops!

7)  Set meetings back to back with 5 minutes to transition;  have your meetings 3-4 in a row to cover them off in a half day and then enjoy a half day back at your desk where you can get some work done.

8) Work outside of your office in a meeting room or outside place (a coffee shop) to avoid interruptions and distractions.

9) Don't set any meetings until 10am.  Create a work period for yourself which your team and colleagues know is a Do Not Disturb period.   Buy a sign for your door if it isn't clear to others.  If that fails, buy a lock.

10) Review meeting agenda's and participate in only the pieces that affect you.  Excuse yourself when you are not vital to a conversation.  A 60 minute meeting may only require you for 20 minutes.

As you start to condense your time and create urgency it will be something people begin to respect and honor (maybe not in the first 4 weeks but soon after that).   Move your 5 days into 3 days and watch how you suddenly feel a new control on your time and your workload.

Plan for Booming Business Year-Round

So many people return from holidays and realize they haven't done nearly enough planning, scheduling and preparation with clients. They spend most of January trying to connect, get started or re-kindle lost momentum. In order to reduce slowdowns and eliminate being at a standstill, you’ve got to have a plan in advance! There are 2 key things to remember to ensure you are ahead of the game, not falling behind….

Plan Future Projects

Whether you’re a business owner or in sales, often our relationship with clients is only planned out as far as the next transaction. Ideally you want to engage clients in conversations that get them thinking about their future purchases and also the timelines to those things. Often clients say, lets tackle it in the spring. Well, let’s set some dates! The other issue is does the client realize what type of preparation and lead time is necessary to hit "spring"? We need to be asking clients about future projects and purchases while they are in the thick of the existing ones. We need to educate them on all the steps and time requirements (which often educates them on just how much value you provide).

Know your Client

When I go buy clothes in the winter, my favorite clothing salesperson, Carmen is already asking me if I golf and telling me when the spring/summer lines come in. Then she always asks if she can call before then to book a VIP appointment so I have first pick on new items. She made me feel special by taking an interest in my hobbies, positioning things so I was a VIP and ensuring I committed to a future appointment.

Another great example is the printer that calls 3 months after you order business cards as a courtesy to ask if you need cards again now or in one more month – note that NOT re-ordering wasn't a choice.
Or how about the pumps/compressor salesman asking clients about 24 months of upcoming projects and selling 5-10 units at a time simply by suggesting clients look at their long term needs (and again created more value for customers as a planning facilitator versus just a salesperson).

Sit down with clients and plan for this coming summer now. There is no reason to be slow this summer if you start to book up the whole spring now. When you're in demand and make the effort to plan and guide people on when they need to buy, they will!

Your Elevator Speech

How do you respond when someone asks 'what do you do?' There are a couple of key things to consider and unfortunately most people do it wrong. Most people just answer the question: their role, company they are with and products/services they offer.
Unfortunately, they stop there.

It results in something like:
"My name is John, I work for Johnson Manufacturing, we make kitchen countertops and pre-fab stone structures."

Wow! Gripping! Who wouldn't walk away from John after this uninspiring speech?!

This is where the elevator speech comes in. Basically it is your short window of opportunity (similar to a ride in an elevator) to educate someone on what you do in a way that is inspiring, intriguing and BEGS for questions to be asked!

1. Start with what you offer: Your audience is judging whether they want to keep talking to you based on what is in it for them. So tell them.
2. Make it sound exciting: Don't just manufacture something - own the industry, be cutting edge, hold a record. Your tone of voice will also say everything you're not - BE excited, smile and share your passion and energy!
3. Ask a question: Engage people in order to get them talking about what you do and what they need. Make it an open ended question not a yes/no answer.

A replay on John's speech should be more like this:
"My name is John, I turn people's kitchen into works of art that make having dinner parties thrilling for our customers. I work with Johnson Manufacturing and we lead the industry in creativity. When was the last time you had your kitchen upgraded?"

Final tip: Practice it. Moving to a new, interesting elevator speech is awkward for most people. Repeat it to yourself 50 times, to others 20 times and then take it out to the next meeting or network event.

4 Client Gift-Giving Guidelines that make YOU stand out

So often this time of year your mailbox is bombarded with holiday cards from business associates, your realtor, and friends. The ones from friends tend to be the most effective because they usually take the time to write a personal message that sticks and impacts you. As well you get boxes of chocolates at the office … how many pounds of sweets do you really need? Here are 4 great ideas for giving gifts that make an impact and stand out:
1) Give gifts or cards to clients, employees and key alliance/vendors/partners. Don’t leave people out.

2) Make the card handwritten. Pre-printed cards or a Hallmark with just your signature actually can send the message that you don’t care enough to actually write something yourself.

3) Gifts should be for the individual and not for the office (unless you deal with a whole group of people). So often I get a gift for the company (coupon for discount) or for the office (giant box of cookies).

4) Call an assistant or co-worker to really find out what makes that person tick or where their interests lie. A gift card from their favorite running store (if they run) or for the movies (if that’s a love of theirs) is a always more memorable. Memorable means relationship and relationship means more business in the new year..

Get 2011 off to the right start. Many companies have good ideas ... at Evolve we ensure that action and accountability are in place to make it a reality. Our philosophy is that any business can move from being good to great with the right tactics, strategies and implementation. What is your goal and how can we help you achieve it? Contact us for a free assessment.

Tips on Tactfully Collecting Receivables

First off, stop being so apologetic. It is your money. It is owed to you. You and your team have worked hard for it, so make sure you remember that you are in the right and not the wrong. Often people dealing with receivable calls will try to put you in the wrong, will be vague or occasionally, even aggressive. When you call about a receivable owing be prepared, have the reference number, invoice number, date sent, all ready to go for quick reference. The best way to dodge calls and commitments is to say "its in process" or "we have it in for payment". Most people then are satisfied and hang up. Wrong!! Its in process?! How long is that? It's in for payment? This year?


The objective is to get specific commitments. When someone says it will be ready next week, you have to ask, Is that Monday or Friday? (because next week is a period not a time) What day will it be ready? Will that be morning or afternoon? Ask people to hold the cheque for pickup. Then it never gets lost in the mail (It's in the mail; a classic!). I often send a courier because $8 on a courier is always cheaper than not having control of money owed to me.

Be as friendly as you can be. Try to kill the person with kindness but be firm and persistent. The person who is pleasant but calls consistently get the early payments.

Dealing with Client Relationships

Every person in business has good client relationships... and then some that aren't as connected. There are so many variables to how to manage a relationship with a client in order to ensure its long term, honest and strong. Here are 5 key things to think about in caring for your client relationships:

1) It is YOUR responsibility to make the relationship work. Yes, yes, it is both parties responsibility in a relationship but the bigger person and the driving force behind the relationship is you. You initiate communication with clients. You call to check in. You present ways to communicate regularly that might work for them. If you wait for the client to manage things, you are not owning that responsibility. (Tough conversations are also yours to start).

2) Get Results. Business relationships are fundamentally built around the work. So you can be the greatest person on earth but if your project or service is being poorly delivered, then the relationship will ultimately fail. Sure, a good personality and friendship might give you some extra chances but make no mistake, results are what a client needs.

3) Systemize the communication. Formalize the methods you use with a client so they get updates, reports, emails and status on things regularly, on time and at the same time daily or weekly. No news or silence is not a good idea. People always think the worst when they don’t hear from you. You are better to send consistent reports that say, no change, than to provide no word at all.

4) Ask for Feedback. We all dread the idea of asking for feedback but it is essential to knowing where your client relationship stands. People who are surprised when a client ‘lets them go’ shouldn’t be. They are only surprised because they never had the courage to ask the client how things were going and where they could’ve improved.

5) Be Courageous. Tough conversations around price, delivery and client cooperation are going to come up. If you are feeling bad or there is the proverbial white elephant in the room, your job is to bring up the issues before your client. You are proactive about issues, able to voice concerns for the client from their perspective and willing to admit mistakes. People appreciate courageous communication.

How to Win Every Challenge Before it Begins

Have you ever had a favorite competitor or team that was so dominant, they had destroyed the competition before they even got on the field or reached the start line? These athletes have a success mindset and it’s a necessity for you, in business today.

You, your customers, your team and co-workers all have pre-conceived notions and ideas that form your beliefs around work. It could be beliefs around pricing, effort, money, whether you’re better at sales. The beliefs you start each day with determine your effectiveness in sales, in customer service, in leadership. It impacts what you make each year as income.

Here are some key exercises to master your mindset and identify your limitations:

1. How do you define your skills and abilities? Ask yourself this, what am I not good at? Make a list. Now let us ask, how do you know? Is it an opinion, or a fact? Very often people’s limitations are based on a belief about what they can’t do. It’s an opinion that they are “not really creative”, “not good with numbers” or “bad in front of clients”. Is this really true? Most of the time it is a lack of practice and a belief in that limitation which creates the result. Look at what your list is; now write out what you would need to do to get good at these things. What would you need to practice? Where could you get help? Who could mentor you? Creating an action plan of steps to improve a limitation often uncovers its temporary nature.
2. Play Out the Ideal in Your Head – if you want to get comfortable with a new belief you need to play with it in your imagination. For example, if you aren’t making enough money, you need to start to imagine what it might be like to make double or triple. What would you spend it on? What would those big paychecks feel like to receive? Write one out to yourself. Once you really start to enjoy imagining the new situation it is easier to start to say, how could I do it? It starts with you feeling comfortable before you start to create it.

Get on the right track - Join us for Success Mindset- the first seminar in the Leadership Selling Series beginning Monday October 18th.

Managing Time Versus Energy

Evolve Business Group was one of the sponsors of a WIIFM Productions presentation June 29th featuring Russell Hunter from the Human Performance Institute (http://www.hpinstitute.ca). During his talk, Russell likened a business person to a high performing athlete. There are chronic demands on energy and over time if the appropriate measures are not taken the life span of a “corporate athlete” is diminished. The key point is that energy is the fundamental currency of high performance.

In order to perform at one’s best there are four principles of personal energy management to assess:

Principle number 1 is energy is four dimensional. The four dimensions of energy are: physical, emotional, mental and spiritual. All four dimensions are connected and work to create either physical or emotional based energy. The ideal situation is to move between quadrants of high physical energy & low physical energy along with positive emotional energy. This allows for opportunity based energy.

Principle number 2 is energy investment requires renewal. It is important to be able to have “micro-recovery” so that you can have sustained performance. Check in with yourself and ask what are already doing to recover in small ways throughout the day? Some examples are: getting up and stretching periodically, walking at lunch or taking a book and reading over a break.

Principle number 3 is stress is not the enemy. Stress is created simply by how we frame situations and things and attach meaning to them. Studies have shown that by experiencing “training stress” the capacity for performance increases. In other words stress is important in stretching our abilities and creating learning.

Principle number 4 is willpower is overrated. 95% of how we perform is determined by non conscious habitual behaviours. Only 5% is conscious and self-regulated behaviours. By creating specific performance rituals, these will become embedded in the 95% of non conscious habitual behaviours.

By doing a quick self assessment and a process of development based on these 4 principles, you will be on your way to becoming a corporate athlete. Enlist a partner to create performance rituals or consult us at Evolve (results@evolvebusinessgroup.com) and get training!

Tips to Success at Work and in your Health:

So you are sleeping poorly? Too stressed? Not eating as well as you could from your desk? Exercising monthly? All business people have periods like this. They do. Some people take a different approach to solving these issues though. Exercise is incredible for reducing stress, improving sleep, giving you energy, clearing your head, even improving what you eat (no one wants potato chips after a workout).

So why aren't you making health and exercise a part of your weekly routine? Can't find the time? Can't get out of the office? Can't get all the way to the gym? Maybe 2010 is where you need to start.

Here are some critical tips for making fitness part of your life in 2010:

1. Find a gym close to your house or close to your work - if you have to drive more than 10 minutes you won't do it. People tell themselves they will drive 30 minutes to the gym ... no you won't.
   
   
2. Go at a time when you are energized ... if you are not a morning person then quit trying to convince yourself you will get up at 5am. If you do get up early, set 2-3 alarm clocks to ensure you succeed.
   
   
3. Get a trainer - they will give you routines, exercises, ideas and companionship for every workout.
   
   
4. Find a sport or activity you like - if you hate weights, don't lift them. If you hate swimming then don't swim. What do you like to do?
   
   
5. Learn more ... most people know little about kinesiology, bio-mechanics, caloric intake, exercises for different parts of the body, etc. Get interested and become a student of health.
   
   
6. Get a trainer - they will push you harder than you thought you could ever go and will show you what you are capable of.
   
   
7. Find a partner - people who workout with a partner are 4 times more likely to stick with it. Find someone at work, at the gym or get a trainer to help you.
   
   
8. Tell your boss or co-workers ... I know, it seems crazy but telling those you work with about your commitment to fitness and health will increase their understanding and support of you hitting the gym.
   
   
9. Get a trainer - they will encourage you, hold you accountable, teach you, hug you, make you successful!

Personal Touch Your Way to Success

Personal Touch Your Way to Success:

No matter what position or role you play in a company, personal touch matters. How are you putting a personal touch on things with your co-workers? Your suppliers? Your customers? Sure people all send out those chocolate boxes or a fruit basket this time of year. What about next month in January? Adding a personal touch is something you need to do each day, week and month. It doesn’t have to be big things. Here are ideas you can use no matter what time of year or what position you are in:

1. Personalized notes – attach a little handwritten note of thanks whenever you send papers out.
2. Personalized cards – send a card out saying thank you, great job or sharing some admiration. You appear more human than an email ever will.
3. Bring Food – send cookies to a client and watch the reaction. Bring donuts to the Monday meetings and show someone you thought of the team.
4. Send Kudos to the Boss – send a message to the boss letting him/her know what a great job was done by them (they’re people too).
5. Magazine subscription – get a client a magazine subscription they will love. It’s a gift that gives for 12 months!
6. Inspirational Sayings – put some inspirational message in the kitchen or the boardroom for people to read and appreciate
7. Wrap it Up – next time you send a report, a book, a part – wrap it up like a gift. Amazon does it with books and people love it.
8. Gift cards – send someone a gift card every week with a note telling them how they impact you.
9. Take Someone for Lunch – who never seems to leave the office? Take them out for lunch on you and get to know them.

Use little extras like this to make a big impact on people … during this festive season but also in all of 2010.

Plan B

With many of our coaching clients at the ownership and management levels we talk about Plan B. What is your plan to generate income that doesn't rely on your current job or your current company? If you assumed no one else was going to cover your retirement or long term well-being, what plan do you need in place? Now some people think this is about being a financial planner. It's not. It is about business strategy for you as an individual and as a company. It is critical to know that you have a second income stream, second opportunity and cushion if things ever finished up quickly with your primary role/job.

Where are your interests? What things do you love? Real estate? Stocks? Makeup? Organic Products? Find your interests and see where Plan B can fit around those. If you had to spend 3-4 hours a week working on your future then you have the makings for a Plan B. Do it with your spouse. Know that getting rich and being independent isn't based on what your financial advisor tells you - he or she has hundreds of clients and isn't watching your money every minute of the day. It is based on you taking time to find a hobby called Plan B that will continue to grow your knowledge in business and your wealth outside of your first role/career.

Money is the Result.

So many people are focused on making money in their companies and in their careers that I thought it was important to write about how they can do this. The fundamental problem most people have is that they don't recognize that more cash, bonuses, sales, commissions and salary are results. They are an output and not an input. Therefore, by just focusing on the result of things (I need some more money personally, we want more sales this quarter) we are missing the critical focus - the inputs that create money for us.


In your job you should know exactly why you get paid what you do. What is expected of you in order to earn your salary? My experience is many people aren't quite sure. Well, you need to know in order to be able to increase your inputs to get more output (money). Talk to your boss and your co-workers, AND your clients and see what generated results for them. Then you have a sense of what you need to produce more of in order to get more money. A raise doesn't show up without more effort and results. You don't get a bonus at the start of the quarter, it's at the end when your results can be measured. So start today in knowing what you need to do to serve more people and to create more results worthy of more cash.


As a business owner or manager, how can your organization serve more clients and better serve the clients you have? So often companies think that clients deal with them because of their base product or service. Well, your clients can get your product or service from probably 50 different suppliers (or at least 5). So why are they dealing with you? You need to know in order to create more value. As you create more value for clients you create more buzz, strengthen your reputation, advance your product offering and generate more results for clients. It is a cycle. So figure out fast what you offer. Then set some new goals based on how many people and companies you will help this quarter. That is the input you control and revenue is the result.

Business Plan Tips

I had a good friend ask me about doing up a business plan for a new business idea he has. He had gotten all sorts of answers and templates from the bank and friends. I thought, they really don't know what people often look for so based on my experience of launching 11 companies, I'd throw in my two sense ...

Here are some things that I think are critical to a good plan:

1) A summary that makes simple sense. It amazes me after reading people's summary of their idea and business that I still don't get it. Because they drink their own kool-aid, they think its clear but to most outsiders it is clear as mud. So be able to explain the idea in 1-2 sentences. Like I say for Evolve - we are like personal trainers for your business - working business parts to make them stronger, leaner and more profitable. People see to register with that better than some long winded explanation with big words.
If you have a story then tell it too. You survived a fire and in that moment you knew that making people's skin clear was your life's work and calling ... (well, something like that).

2) If you are looking for investment have a summary of what you want, how you are going to spend it, how I get my money back and also what return I get. This should be a one pager. It is a page that most people don't include and then investors get frustrated trying to figure it out on their own. Most money people are impatient and will not read pages to figure out their role - they'll just decline.

3) If there is a business you are modelling anywhere in the world then get stats, pictures and stories of it. This tells people that you aren't a pioneer and that the idea works (even if its in Europe). Include photos just because people seem to love photos - seriously, I have had people look at photos for long periods of time of just concepts. Way more effective to get the ideas across.

4) Include a section on operations (how its going to run), marketing (how we are going to promote it), opportunity (why it is different and why you believe it will work), bios on the key players (people buy people), Threats and how you have already addressed them.

5) Finances is a key section. People want to see you have done your homework so include substantial projections and numbers. Most people show they are going to make $500K the first year or sell 1000 memberships the first month. It never happens. Bankers and investors presume that you are overstating your projections unless you can explain your assumptions (a key separate sheet with the numbers for reference). I would expect to be able to show a small loss or breakeven in the first year and then some good growth in year two. That's the typical business path. It takes 6 months before things start to roll. I would include cash projections, sales projections and even a balance sheet (although it will be really simple). It shows you understand the numbers which is a key.

6) The projections and numbers have to demonstrate that a payback of the loans or investors is possible. Sometimes I have seen plans where the business makes $60K a year profit and somehow the business is paying back investors 100K on some other page. Seems obvious but its not.

7) If things go sideways, can you outline the worst case scenario. For example, at the restaurant we say we would liquidate the equipment as the worst case (.20 cents on the dollar) but would list the restaurant for sales before that because as an on-going concern we can get approximately .70 on the dollar. This is the reasonable downside. People like to know the worst case.

8) Make it pretty. Glossy, professional, photos, logos and brand, all of that gets people emotionally and has an impact.

I think those are some of the key items that most business plan templates miss. Often your answers verbally when people sit down with you are the most important. If I can talk with you and you seem to know every figure, detail and component then I think, wow, this guy knows and that has more impact than anything on paper. I have had people invest and buy after talking without ever opening the business plan. They are buying you.

Sales Tip: Master the Mental Battle

Going out and selling each day is a tough job. You face adversity and challenge that most people don’t know. One of the keys to selling is the commitment to winning deals. This commitment starts in your head. Many sales are won or lost based on your commitment and will to get a sale. When you enter a sales situation you need to be more committed to working with the client than they are about not working with you. If they are wishy-washy and you are committed, who do you think wins? You do.

If you approach each sale driven with hope instead of commitment – then you are as wishy-washy as your prospective client and that will never aid you in getting deals.

Get up each day and know that you are going to win some new clients. Remind yourself as you walk into each meeting and see how your mastery of mind wins people over.

Leadership Tip: Make a List of All the Things You Hated

What are the things you have hated about every job you ever had? What things did your old boss or manager do that drove you wild or made you feel bad? Often realizing what didn’t empower you gives insight into what you need to avoid as a leader.

Although we like to work in the positive of “do these things”, we also can formulate those by recognizing what didn’t work with us and making sure we don’t do it to others.

Sales Tip: Give Me Something For FREE

People love FREE. It’s usually something they want or can use, sometimes not, but people always respond to free. When you are selling into a new account or company you need to provide some value without asking for anything. Free is a great way to do that. I don’t know you. I don’t trust you. But when you offer me something for free I start to think I can trust you and you are looking out for me – which builds trust fast. Make it a free trial, a free demo, a free sample, a free whitepaper, a free study, a free assessment (a real assessment not a sale wrapped as an assessment).

Find something to give away and people will open their doors to you for more sales.