Minding Your Business with a Business Plan

“By recording your dreams and goals on paper, you set in motion the process of becoming the person you most want to be." Mark Victor Hansen could not have spoken truer words. The idea of writing down thoughts, goals, and dreams, is a transcendental one. In fact this very practice has materialized to a standard requirement in the world of business, formally known as a business plan. It is the vital blueprint for any startup and entrepreneurs are recognizing just how drastic business can change positively, with written foundations. So why are business plans so important?

Vision

If you were traveling somewhere you’ve never been before, would you go without a map? Probably not, so why would you embark on a business venture, where the risk is far greater, without having a blueprint? Your business plan functions as a map—your big picture. Before you start any business your only tool is your idea. As you begin to think about it more and more, ideas develop and a plan emerges. You start to consider factors like your target audience, market research, funding, staff/ employees, business registration, and the list goes on, but they still just classify as ideas in your head.

Documenting this information is what keeps your vision alive. It is your way of stepping outside of yourself to allow your vision to materialize. Further, organizing your ideas by formulating them in a business plan helps you build effectively and remove information that may be detrimental to your business as a whole. This inherent editing and buffering allows you to keep your vision in mind; the more you work on the plan, the realer your entrepreneurship becomes. Simply put, creating your business plan takes you from a dreamer to a doer.

Accountability

Your ability to transition from the phase of a dreamer to a doer often determines how serious you are about your startup. Creating a business plan requires work and research and this investigative nature of the process keeps you accountable in more ways than one. Firstly, your business plan makes you accountable for your own actions. When you make a plan and write it down you are more likely to follow through on that plan than if you had simply stored it away in your mind. Your business plan is your personal correctional officer, ensuring that you are working towards the fulfillment of your startup. 

Secondly, a business plan keeps you accountable to your potential investors, sponsors, and banks (when you apply for a business loan).  At some point you will realize that your startup is less about you and more about what service you are capable of bringing to the table. Investors and those alike, want to ensure that you are worth the investment: a) is there a market for your idea b) is it lucrative, and c) how big is the return on investment. Additionally, they want to be able to trust you and your abilities. In most cases, the primary source of endorsement is a well-orchestrated and thought-out business plan.

To Answer the Question: Should you really be starting a business?

A common mistake entrepreneurs make is underestimating how much work actually goes into starting and running a business. A business plan is one of the primary tools to weed out the weak from the strong, the able from the disabled, and the determined from the desolate. As mentioned above, your business plan is where the evolution of your idea takes place. As you comb through each category of the plan and consider your place in the entrepreneurial world, things can become overwhelming. It is at this point that you must reason with yourself. Consider whether this is a journey you should embark on now or, alternatively, if you would benefit by waiting a while. 

You might also reflect on whether you should partner with someone or work individually. How much time would you have to invest daily, especially if you’re pursuing a startup while working a full time job? At the very least, your business plan is your platform for evaluation; don’t take it lightly.

We’ve shared some of the most fundamental reasons for using a business plan for your startup and we encourage you to consider them before your next venture.  If you’ve been working on a business plan tell us why it’s an important starting point for you!

How To Ensure Your Business Remains Innovative As It Grows

As companies get larger, there is a tendency for them to lose some of the innovative edge and versatility that defined them as start-ups and young enterprises. Several factors common to larger firms contribute to this, including increased bureaucracy and more rigid, hierarchical command structures.

Accordingly, one of the challenges that growing businesses face involves keeping the company nimble, and ensuring that the workforce and leadership alike continue to adapt to technology and changing market conditions.

Encourage experimentation, with some margin for error.

All businesses strive to offer products and services that are commercially viable, and for larger firms in particular, a preoccupation with maximizing shareholder value can intensify those commercial pressures. Unfortunately, a drive for immediate windfalls can undermine more sophisticated forms of innovation that require time and capital investment to develop.

Major innovations cannot happen without experimentation, and experimentation is inherently risky. Many successful businesses have invested in products and technologies that never really took off. (Think of Google Glass, or QR codes, for example.) To genuinely innovate, managers must be willing to take risks on novel concepts that may not always pan out.

Consider the potential, and not just past achievements, of job candidates.

In applying for a position at your company, job candidates will typically emphasize their past experience and achievements that are relevant to the role—and well they should. But in looking to hire and promote, don’t get so fixated on the past successes of a candidate that you overlook the potential of applicants to grow as individuals and expand their skill sets.

In the recruitment stage, in interviews, and in personality surveys, try to incorporate questions that will reveal whether a candidate is curious, open to new approaches to old problems, and believes in h/er own potential to cultivate new skills.

One question that may reveal all of these attributes is: “What new skills or knowledge have you gained in the past year, and what did the learning process involve?” Alternatively, the common interview question “Do you have any questions for me?” can help bring out the curiosity, level of engagement, and preparedness of the candidate. Consider giving job candidates an assignment that will test their skills and approach to problem-solving.

Personal accountability matters.

One of the most important attributes of strong leaders is a capacity to assume responsibility when something goes wrong. In other words, they believe the locus of control is primarily internal rather than external. These are the types of individuals you should seek to hire and promote.

Personal responsibility is important from the perspective of organizational growth. Individuals who are willing to assume primary responsibility for their own shortcomings are more likely to learn from them and modify their approach. By contrast, those who convince themselves that their errors are entirely attributable to bad luck or circumstances beyond their control risk missing the lesson.

Reflect on your performance.

It’s not enough to merely work harder or put in longer hours when your business faces a challenge: you need a plan to help steer your efforts in a productive direction. Real learning requires not only hard work and persistence, but also active mental engagement.

One practice that can help is daily reflection—over the course of the work day, what did you do well, what would you have done differently if offered a second chance, and where do you see room for improvement? To facilitate this kind of reflection, you can encourage staff to keep a work journal, and set aside time (10-15 minutes of the workday) for entry-writing.

How to Keep (For Real) Your Professional New Year’s Resolutions

The standard tale of the unfulfilled new year’s resolution—an ambitious goal that one articulates, commits to, and promptly abandons—has become a cultural cliché in our society. In fact, many fitness professionals joke that January is the busiest month of the year at the gym, whereas February usually brings a normal volume of customers. Regardless of the area in which we see room for self-improvement, thinking of a new year’s resolution is one thing; actually following through is another.

What is true of personal goals is equally true of professional ones—setting a work-related resolution is easy, but actually fulfilling our ambitions requires commitment, perseverance, and consistency.

Friends and colleagues can hold you accountable.

“Will power” needn’t merely be a matter of individual steel and grit; you can enlist the help of others

to hold you accountable for your commitments. If your goal is to keep yourself in better physical shape this year, try joining a running group or scheduling exercise sessions with a friend. If you have particular professional ambitions—such as finishing a project ahead of a fixed deadline—announce them to your colleagues, staff, and anyone else who will listen. Although most people won’t go out of their way to remind you of your shortcomings, the desire to avoid the shame of breaking a public promise can be a powerful motivator.

Set manageable targets.

If you have an ambitious, long-term goal, you may find yourself daunted by the thought of what you need to do in order to reach the finish line, and the massive amount of effort and commitment involved. Instead of approaching a challenge this way, you may instead find it helpful to identify intermediate landmarks.

For instance, if your office is disorganized and you’d like to rectify that, don’t allow the scariness of tidying up an entire room to overwhelm you; aim to keep a corner of your desk clear of clutter, then another corner, etc.

Create a roadmap for yourself, including a clear understanding of the process involved in reaching your final goal, and reward yourself as you surpass each milestone. Of course, you can expect that some days will be easier than others, but remember that even slight progress toward your desired outcome is better than none.

Foster new habits.

As human beings, we all tend to be creatures of habit. This partly explains why committing to a new year’s resolution is so difficult; unless we continue a particular activity long enough to cultivate a new habit, we easily slip back into familiar, comfortable patterns of behaviour. Our habits are like molds that shape our personal characteristics and abilities, and it takes time and dedication to restructure those molds. But fortunately, it can be done.

In the quest to develop new habits, planning and intentionality are valuable allies. Establish your intentions, write them down, and commit them to memory. To help manage your time, set temporal boundaries for yourself—for instance, “I will check my e-mail inbox at 11:00 a.m., but no sooner, and I will finish with that task by 11:20.” Personally, I find it helpful to work in segments of 20-30 minutes, and time myself with a stopwatch.

Don’t let a slight shortfall deter you.

Even after an honest effort, you may find that you’ve fallen short of your new year’s resolution. But don’t let that disappointment dissuade you from setting ambitious goals and pursuing the professional success you desire. Even if you don’t quite attain your goals this time, you will learn valuable lessons that will help you in your next attempt.

The Keys to Effective Internal Communication

Take a moment to browse online job postings, and you will see the same item listed recurrently under “Qualifications”: namely, effective communication skills. As important as this capacity is for

prospective employees, it is even more vital for businesses of every size. This obtains both for interactions with external stakeholders, and within an organization. No team, regardless of the talent and expertise of its personnel, can expect to achieve its potential unless information transfers seamlessly and comprehensibly among its members.

Although many of the requirements of functional internal communication are common sense, you may find the following guidelines useful:

•  Invoke the KISS principle.

 

When you initiate communication, take a moment to consider whether the information you intend to convey is presented in the simplest, most concise, most unambiguous form possible. Is there any room for misunderstanding or misinterpretation? “Keep it simple and specific” is a useful guideline here. Concision is also advantageous in most situations.

•  Accuracy is indispensable.

Double-check e-mails and other documents before you distribute them. If you have doubts about any aspect of the material, seek confirmation either by doing research on your own, or by consulting a colleague. Accuracy is paramount for effectiveness in communication, for two reasons: first, because inaccuracy can compound into missteps and delays that cost time and money; and second, because repeated errors on your part may erode the trust that others place in you. It is generally worthwhile to take a bit of time to ensure accuracy now, rather than spend a lot of time trying to correct mistakes (and repair any damage to your reputation) later.

•  Maintain records of important instructions and agreements. Communicate in both verbal and written form.

Even if you’re confident that you understand what you’ve been told, or believe you’ve made yourself perfectly clear, it is important to make use of documentation rather than simply rely on memory. If, as an employer, you have to convey complex instructions to an employee that involve multiple steps, write them down in clear, succinct language. (Recall the “KISS” principle.) The same advice applies to employees who need to communicate information up the chain of command.

•  Keep communications relevant to the recipient.

The human brain has a remarkable capacity to “zone out”, discounting intelligence it deems irrelevant. This is an adaptive evolutionary trait; for our distant ancestors, the ability to identify crucial facts, and save mental energy by omitting unimportant or superfluous ones, was a prerequisite for survival. However, in our modern civilization, this immanent skill can occasionally backfire; by skimming a lengthy document in order to save time, for instance, we risk overlooking information that is relevant to us.

One of the ways for managers to avoid this pitfall is by tailoring communications to each recipient, with specific details or instructions. This practice also sends a tacit signal that employers acknowledge and appreciate the unique contribution of every individual.

•  Who reports to whom?

All staff should know exactly to whom they are accountable, and for whom they are responsible. As the scale of a company or organization increases, this factor becomes all the more necessary. It is axiomatic that communication should occur through the proper channels, but what are the proper channels? Aim to ensure that everyone who works in your business can answer that question without a moment’s doubt or hesitation.

•  Details matter. But never lose sight of the big picture.

Every business should have a mission statement, which is not only clear and accessible, but understood by all staff at the organization. Once every member of a team buys into a common goal, you will have laid the groundwork for collective success.

Vulnerability and Self-interest: Qualities of Great Leaders

What is more important in a leader: the ability to project authority, or a knack for earning the trust of one’s cohort?

Surely both qualities are indispensable. But the latter is a precondition for the former. Unless they trust you, your team will be unwilling or unable to recognize your authority as a competent decision-maker. In other words, their confidence in you is a sine qua non of your effective leadership.

What is the source of this confidence?

There are many possible answers to that question—depending in part on the individual and the circumstances. However, two important but somewhat counter-intuitive leadership traits often go overlooked: vulnerability and self-interest.

Before I elaborate, allow me to define both terms.

Vulnerability in this context refers not to weakness, but rather to the capacity for empathy, humility, and accountability. In order to relate to the personal challenges faced by your employees, accept constructive criticism, and admit your own shortcomings, for instance, you must first let down your guard and accept that you are merely human.

Self-interest means the intellectual and moral steadfastness to pursue your own best interests, and the best interests of your business and your team, even in the face of counter-pressures.

Vulnerability and accountability

Occasionally, you will encounter people who attempt to mask their own vulnerability, presumably because they worry that others will try to exploit chinks in their emotional armour. But this is a false choice. It takes courage to acknowledge one’s vulnerability; on the other hand, many people associate a refusal to acknowledge vulnerability with a lack of authenticity, or even a deficiency of courage. Have you ever known someone who consistently refused to admit her own defects and attempted to mask problems—either personal or professional? Are you left with a favourable impression of that person?

Vulnerability is a prerequisite for developing meaningful personal connections with other people, including co-workers and employees. One of the most important ways this manifests itself is in the form of accountability and forgiveness. We all make mistakes, and the way we respond to them (both our own and those of our peers and employees) is crucial.

 A rigid, institutional intolerance of error has the effect of deterring even mundane risk-taking. A manager who refuses to countenance the missteps of her employees is somewhat like a vehicle without brakes. If we were all obliged to drive brake-less automobiles, motorists would putter along very slowly, avoid hills, and approach stop-signs and intersections at a snail’s pace. In other words, no one would get anywhere very quickly, and our society and economy would suffer the consequences. In the case of a business enterprise, this is analogous to reduced productivity and diminished willingness of employees to venture outside their comfort zone.

Nonetheless, forgiveness is not exactly the same as tolerance of error. Instead, the goal of a leader should be to identify miscues and point them out to the responsible party, allowing reasonable leeway while discouraging repetition of previous mistakes. Naturally, in order to build credibility for this purpose, leaders must be prepared to take ownership of their own failings too.

Self-interest versus selfishness

Through his magnum opus, An Inquiry into the Nature and Causes of the Wealth of Nations, Scottish Enlightenment philosopher and political economist Adam Smith popularized the idea that self-interest on the part of individuals would ultimately enhance the general welfare of society. One of the examples he cites is that of a baker, who produces bread for his customers not purely out of benevolence, but also in order that the baker himself may earn a living.

Centuries after the publication of that work, debate still rages as to exactly what Smith had in mind, and about the extent to which “greed is good.” But self-interest and greed are not necessarily synonyms. Another interpretation of “self-interest” is “taking care of oneself in order to better one’s chances of helping others.”

Leaders nearly always face extraordinary demands on their time. On a personal level, it is crucial to appreciate the role of time management and the effect of stress with regard to your own health and well-being. If you aspire to a long and successful professional career, you need to ensure that you lead a healthy lifestyle which includes adequate down-time. At times, this will require you to delegate duties to others. It may also require you to turn some invitations and opportunities down.

This concept of self-interest can also apply to your business and your professional team. In order for your enterprise to thrive, you will need to make choices, some of which may be difficult. But by putting the rational interests of your business ahead of competing priorities, you will increase your chances of success over the long term.

What to look for in a business partnership

Just like a marriage, a business partnership is a joining of two people working towards a common goal, sharing the same values and vision before it can move forward. These partnerships however, can take a variety of forms, ranging from joint ventures to long term commitments. Here are some tips on what makes a strong business partnership:

Sharing a common vision: It’s extremely important to define where you envision your business to be. Ask yourself questions such as; what type of clients do you want and what kind of service/product you’d like to offer? If your vision of the company is different than that of your partner, you will encounter problems down the road. To avoid this, sit down with your partners and discuss where you see the business heading. Ask yourself, what drives you and excites you about the business? Do not leave the table until you’ve come across an agreement.

Know what you bring to the table: Make sure that your partner has a skill set that is complementary to yours. By having an honest discussion on both your strengths and weaknesses, this will help you understand if both of you can create a successful partnership or require someone to fill in the gap.

Create both individual and company goals: Start creating company goals and then your individual goals. Your individual goals should support company goals. By measuring and holding each other accountable in achieving them, you should have no problems in being committed to the long term success of the company. It is also important that you meet on a weekly basis to review the status of your goals and discuss any challenges that may have come up.

Nip problems in the bud quickly: Like any marriage, partners will argue. To make it a successful partnership, what’s important is how you resolve those issues. Instead of letting a problem or an issue affect you or fester, make sure that you immediately discuss them with your partner. By meeting regularly to discuss this, everyone can address their concerns, create a plan to solve it, and find a resolution quickly.

Create accountability: This is the most important aspect of any business partnership! One of the major issues between partners is a lack of clarity around job responsibilities. Without clearly defining your tasks and responsibilities, there will be some confusion on who is actually running the business. So ask yourself these questions: Are your tasks and responsibilities clearly outlined? Do you know what your job is, what you’re responsible for and how you’re measured? All tasks should be clearly defined and assigned. Make sure that they support the long-term company goals and should also include clear metrics that measure the success of the job. This will measure your progress and help you be accountable to yourselves, to each other and to the business.

Keeping a Handle on Your Business

Operating a business successfully has often been compared to a high-speed train. When it runs at peak performance, it arrives at its destination on time. However, if it sits unused in the station, or is not maintained properly, it will cease running well and ultimately break down and fail completely.

Studies have shown that more than half of large business failures result from poorly designed business strategies. Many business leaders have the drive and desire but fail to properly assess the market or their abilities. It is not uncommon for a thriving business to adopt a new idea on the assumption that their notoriety alone will make it happen. "Biting off more than one can chew" has led to the downfall of many business giants.

Another common, and sometimes fatal, error is operating without any accountability. Even the boss has to answer to the board. When decisions are accountable, it makes them open to review by others and allows other sets of eyes to detect possible flaws. The smallest of companies – even one-person operations – should consult with someone else on major decisions. After all, none of us is perfect.

Sometimes change is necessary. Companies that have dominated certain markets have to change with the times or market conditions if they want to maintain their position. Failure to adapt can be suicidal, as there is always someone waiting in the wings to pick up the slack.

Leadership is a 24/7 position. Your employees look up to you and receive their inspiration from the top. A strong leader motivates by example. Failure to convey positive attitudes and emotions can lead to the downfall of your business. Even if your business takes a downturn, you need to continue inspiring your employees to work together with you to overcome. If you appear downtrodden, you can't expect your team to pick you up. The ship will go down with its captain.

Keep a handle on your business by charting your goals and progress. By maintaining control of a situation, rather than it’s controlling you, your train will speed forward to its next destination.

Incorporate in Canada with CorporationCentre.ca
Click. You're incorporated ®