The Difficulty of Essential Resources

When starting a new or growing an emerging business, what seems to be the greatest need of an owner is the essential capital is takes to build and operate it. Regrettably, in today’s economy, capital can be considered the most difficult resource to attain.

Looking back over the years, I remember a growing, healthy, and free enterprise system that always afforded each of us the opportunity to purse a life of abundance and plenty. Yes, it is still doable if we are willing to sacrifice and do what it takes to tackle the obstacles that come with entrepreneurship, but what has changed over the last decade are the challenges we face. The financial/banking system as we knew it—the moderate, risk-taking financial institution that would partner with small businesses to make their dreams a reality—is gone. They have all developed the mentality of “killing the golden goose,” where insatiability has overrun good business sense. After interviewing a number of bankers, their responses to loan lending have all but been the same sad song: “I have plenty of money to loan, but I can’t find business owners that qualify.”  “I’m in the loan-lending business, not the risk-taking business.” It used to be that having good credit was enough to qualify, but the mantra of our banking system today is “collateralize or no loan.”

Coincidentally, as loan lending has decreased so has the job market. If businesses do not have the resources required to grow, they cannot afford to operate and, unfortunately, cannot offer employment. If we do kill the golden goose that has made this country so very special for the growth and nurturing of our business opportunities, I’m afraid that a banking implosion may be right around the corner. There is only so much low-hanging fruit for the banking industry to share.

 I’m still a great believer in the free enterprise system, and so I am looking to 2012 for a better outlook on today’s loan lending business.

We will resume posting in January.

_{Mike Levi is C.E.O. of Levi Inc. a 19 year old business advisory firm that is in the business of building and implementing sales and growth strategies for emerging businesses.} 

_{http://www.high-performancesales.com/}

Growing Your Business: Are You on the Right Track?

There are several components for growing a successful business that allow you to bring more to the table than your competition. Product uniqueness, detailed plans, and an individual’s background can all benefit a new project if used simultaneously and correctly.

Your product should be sufficiently developed (and positioned) to solve client problems, and solve them better than your competition. Does your product have differentials that clearly separate it from the competition? Consistently, the one who makes the better bread-box will receive the highest praise and loyalty from customers.

Detailed plans can also make or break a new idea. Is your product positioned for future innovations and creative changes to address an ever-changing market place? Staying power for the long haul is critical, but knowing when it is time to move on can be just as equally beneficial. You need to have resources in place that will allow you to tackle unexpected obstacles that are bound to creep into the equation. Outlining a game plan for your business can make transitions for a product smoother and less stressful.

Though having a better product than your competition is a great start, individuals in your business are the real foot soldiers of your new idea. Are their sales and marketing expertise adequate enough to ensure that they will be a significant force in moving the project forward? To ensure success the company should take the time to truly explore the potential of the market they are entering. Remember, for each new product or endeavor there should be growth for learning innovative tactics that best compliment your company.

_{Mike Levi is C.E.O. of Levi Inc. a 19 year old business advisory firm that is in the business of building and implementing sales and growth strategies for emerging businesses.} 

_{http://www.high-performancesales.com/}

Developing an Effective Game-Plan

Every entrepreneurial venture begins with an idea, a product, or service; a comprehensive game-plan will allow you to transform that idea into a reality.

·         First, there should be two business plans. One can be a comprehensive business document, and the other can be an executive briefing, which would be a short overview. This will give you the flexibility of designing a plan that can be either a detailed description or a summary, depending on the use or the need.

·         Your business plan should describe your business and its goals, a clear understanding of the potential market, a marketing strategy, and financial objectives.

·         Your plan should allow you to evaluate your proposed opportunities, potential risk, and determine feasibility.

·         Your plan should contain an action plan with initiatives as to how to capture market share and a time-table to complete various projects.

·         Some questions to ask: What business are you in? Needs for this product or service? Profile of who would buy it, and for what reasons? What problems are you solving for your potential clients? Are you on the front of the wave vs. the back? The potential short and long-term possibilities of your proposed industry? What differentials separate you from the competition?

As I mentioned in my last blog, this should be a working document, a game-plan that will allow you to have a clear understanding of your objectives and goals, and a road map as to how you are going to get there.

_{Mike Levi is C.E.O. of Levi Inc. a 19 year old business advisory firm that is in the business of building and implementing sales and growth strategies for emerging businesses.} 

_{http://www.high-performancesales.com/}

Business Plan vs. Game Plan

            As a business advisor, I always find it most interesting when I ask a client if they have a business plan. I get a lot of varied responses, such as: “I’ve got it in my mind,” or “I’ve been working on it,” and even “I’m not after money, so I don’t need one.” A business plan or game plan is a working document that not only outlines your entrepreneurial venture but also maps out your businesses’ future goals and how you are going to accomplish them.

The mistake that most people make is assuming that a business plan and a game plan are not one in the same when, in fact, they are. If you are submitting your plan to a financial institution it should be the same plan that you use in your everyday business life. Keep in mind that the officers and underwriters at a financial institution have read hundreds of plans over the years, so it’s most important that we do not insult their intelligence. Communicating accurate financial numbers may be the key to a well thought out business plan—they need to be real.

            Certain components can be found in an effective business plan. One that reflects money management, a great business team, the needs and wants of the business, active leadership, and the delegation of important to-dos can be a business plan that you can look back to when considering new opportunities. Every plan should address significant questions, such as: What separates you from the competition? How do you intend to capture market share? These plans are the corner stone to any successful business and can be achieved by making smart decisions in the beginning.

_{Mike Levi is C.E.O. of Levi Inc. a 19 year old business advisory firm that is in the business of building and implementing sales and growth strategies for emerging businesses.} 

_{http://www.high-performancesales.com/}

Is it Doable from a Money Perspective?

            A key resource for any successful business is money. As I mentioned in a previous posting, to get your business up and running it usually takes 1½ to 2 times the amount of money that you had initially proposed.

I’ve had the opportunity to interview a number of bankers over the past year and the one universal comment that they all share with me is that they have plenty of money to lend, the problem is finding the right borrower to lend it to. There is money for small, emerging businesses with a strong track record of growth. Start-up businesses are not as lucky. A reoccurring mantra that I’ve heard is that small businesses must be collateralized to be able to qualify for a loan. The majority of banks are transfixed on safe, low-hanging fruit. I’ve had many a banker explain to me that risk-taking is for the entrepreneur, the bank is in the loan business.

Sounds like good business sense, but it has currently put a major dent in the number of loan transactions taking place, which means the amount of new funding for start-up businesses is not as readily available. As you may know, if the amount of loan lending is down the amount of new start-ups is down as well. No one likes to hear this but it’s the real economic world we are living in today. On a positive note, I continuously watch emerging, start-up businesses succeed (with a lot of work) in finding capital if they are willing to look at, not only conventional methods to funding, but non-conventional approaches as well. The money is out there it’s just simply harder to find these days.

Next week I will begin to address the many needed components of an effective business plan.

_{Mike Levi is C.E.O. of Levi Inc. a 19 year old business advisory firm that is in the business of building and implementing sales and growth strategies for emerging businesses.} 

_{http://www.high-performancesales.com/}

Planning Business Growth

            Every business starts with an envisioned concept, lots of ideas, and a creative product or service that solves others’ problems and is, hopefully, positioned on the front of the wave. This may be one of the most exciting times when launching a new product or service, but many may find that the next step of planning business growth is the most challenging.

This step in the planning process is to develop a game-plan that identifies potential markets. A game or business plan is a working document that reflects the continuous changing market trends and includes essential activities and initiatives to ensure that you reach your goals and objectives. Game-plans can keep you organized and focused on your most important and time sensitive goals.

Some questions you need to ask yourself:

·         Is it doable?

·         Do I understand the marketplace that I’m entering?

·         Does it compliment my strengths?

·         Who is my competition?

·         Is it a growth industry?

More companies could succeed if they do their due-diligence and make well thought out, educated decisions.

_{Mike Levi is C.E.O. of Levi Inc. a 19 year old business advisory firm that is in the business of building and implementing sales and growth strategies for emerging businesses.} 

_{http://www.high-performancesales.com/}

Poor Decision Making

When it comes to businesses, sometimes we fail to do sufficient due-diligence for a new project. We’ve heard the term ‘thinking outside the box’, but many hidden obstacles are ones that can be solved by thinking inside the box.

This way of thinking can help you view your goals and objectives in a different way than before. Ask yourself intuitive questions, such as:

·         Have I taken a real, objective look at the business venture from a negative and positive point of view? The positive attitude is essential, as long as it makes realistic and purposeful sense.

·         Do the differentials that I am proposing to the potential customer solve their problems in the short and long term?

·         Is my product uniquely competitive, and does it have a relatively long shelf-life?

·         Is it on the front of the ‘wave’, vs. the back?

·         Do I have the resources to make this opportunity viable?

·         Have I prioritized my objectives?

·         Am I good at this?

·         Did I do a thorough S.W.OT. analysis?

Try using this inside-the-box checklist for your next project. A new blog will be added each week. Take care. Thanks for listening.

 

_{Mike Levi is C.E.O. of Levi Inc. a 19 year old business advisory firm that is in the business of building and implementing sales and growth strategies for emerging businesses.} 

_{http://www.high-performancesales.com/}

Why Do Businesses Fail?

___________________________________________________

_{Mike Levi is C.E.O. of Levi Inc. a 19 year old business advisory firm that is in the business of building and implementing sales and growth strategies for emerging businesses.} 

_{http://www.high-performancesales.com/}

Eighty-five percent of all businesses fail within the first five years. Three main reasons for this are:

1.    Inadequate funding

2.    Poor decision making

3.    Lack of a well thought out game plan

Let’s address inadequate funding first. I find that a majority of emerging businesses underestimate the amount of capital it takes to launch and sustain their businesses into a profitable entity. A good rule of thumb is to have enough capital to run your business for the first year before planning on a withdrawal of personal income. You will often find that it is going to require 1 ½ - 2 times the capital requirements that you originally estimated.

The realities of real world business are better dealt with upfront than the stress of uncertainty that comes with poor financial planning.

We will continue to address these three critical areas in the coming posts…

Succeeding in an Economic Downturn

Talks of our country falling deeper into the recession grow louder each day.  I personally never thought we were out of it.  I was just not seeing the changes and the availability of resources that were needed to help stimulate business growth.  In this uncertain economic climate, we as small business owners are all faced with the challenge of maintaining the viability of our companies.  I’m often asked, “What are some of the key components to ensure business continuity in this market?”  

·        Attitude: Start by simply refusing to participate in all the negative dialogue, it’s impossible to feel good when you’re having negative thoughts.  Instead, begin to see your company in a more positive light, see it reaching its potential, concentrate on abundance and plenty.  You’ll love the results.

·        Game plan: You need to have a well thought out game plan.  Develop a strategy that is not only do-able but makes sense.  Shelve the play of the day mentality; it never works.

·        Undercapitalization: The number one reason for business failure is the lack of capital and financial resources.  Take the time to do a thorough financial analysis, find out where you really stand.  Then begin to build a plan for reaching and maintaining financial stability.  Never hurts to spend a little time with your banker and C.P.A.

·        Effective Sales Initiatives: Is your sales force doing all the things they need to be doing?  Do they have a clear understanding as to the critical role they play in ensuring the companies success?  Until someone sells something, there’s not much for anyone else to do.  Sales is the fuel that drives the company.

·        Differentials: Being able to understand your weaknesses and leverage your strengths is one of the keys components in separating yourself from your competition.  Value positioning your company by discovery your unknown strengths.    

The key for any aspiring small business is to have a clear vision and a game plan that reflects that vision.  We need a spirited and competitive attitude that embraces all that is right about our opportunistic free enterprise system. 

_{Mike Levi is C.E.O. of Levi Inc. a 19 year old business advisory firm that is in the business of building and implementing sales and growth strategies for emerging businesses.} 

_{http://www.high-performancesales.com/}

___________________________________________________

Welcome to my blog!

Welcome to the High-Performance Sales blog!  My name is Mike Levi, CEO of Levi Inc., and I am in the business of building and implementing sales and growth strategies for emerging businesses.  This blog will have entries about a variety of business topics, from my Sales Tip of the Week to the Top 3 Reasons Businesses Fail, and much much more.  For more information about me or my company, please visit my web site, http://www.high-performancesales.com/, and feel free to sign up for the Sales Tip of the Week there as well.