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!

When Clients Take a Long Time To Pay

If you’re a business owner or independent contractor, you’ve probably dealt with clients who fail to remunerate you in a timely manner. It can be awkward.

Of course, you’d like your late-paying client to expedite the payment you’ve earned. On the other hand, you don’t want to alienate someone who might otherwise have been inclined to retain your services again in the future, and perhaps tell h/er friends and associates how exemplary your work was.

How can you encourage clients to make timelier payments without sounding overly pushy, souring a professional relationship, and potentially undermining your reputation?

Agree in advance on a payments system that is convenient for the client.

You’ll probably find that different clients have their own preferences with respect to payment methods. Some may favour writing cheques, others may be more comfortable with PayPal, bank transfers, credit card, or even in-person cash transactions.

Set up accounts with multiple secure payment processing services and through your bank. If the client can choose among several payment options, s/he is likely to find one that is convenient for h/er.

Expect to receive payments late, and plan ahead.

As a general rule, you shouldn’t depend on timely payments from invoiced clients. Instead, try to keep a fairly robust cash reserve on hand to cover your own short- and medium-term expenses.

Although you want to encourage all clients to pay on time, realistically you’ll almost certainly encounter laggards here and there. One way to compensate for this is to request payment on a date well in advance of the time when you actually need the money—if possible, leave a margin of at least ten days.

Remember: you’re unlikely to suffer significantly negative consequences from being paid earlier than you expected.

Be clear and specific about when you expect to be compensated.

“Payment on this invoice is due within 20 days” as opposed to “Payment due upon receipt.” (In the latter case, your client could invoke the phony excuse that s/he received your invoice late.)

The clearer and more comprehensible the instructions, the less of an excuse the client has for failing to follow them.

Consider an early-bird discount.

No one enjoys wasting money, and by offering your client a slight discount for early payment, you introduce a direct economic incentive in favour of timelier compensation. Even a discount of one or two percent can provide your client sufficient impetus to get the ball rolling sooner.

Alternatively, you could institute a penalty of one or two percent for late payment.

Send cordial reminders.

If a week or more has passed since the deadline you originally established for payment, it’s reasonable to send the lagging client a gentle reminder, indicating that you would appreciate being compensated for your work as soon as reasonably possible.

Withholding of services is a drastic, but sometimes necessary, step.

You won’t need to resort to withholding services in the vast majority of cases. However, you may encounter a handful of situations in your career where there is simply no reasonable alternative. Your client has failed to pay up despite numerous polite reminders, and you need to draw a line in the sand. 

Your skills have value in the marketplace, you can’t afford to work for free, and you don’t want to garner a reputation for being overly lax on clients who refuse to keep their end of the bargain.

Confronting Attacks On Your Reputation Online

Anyone who has dealt with online attacks on either their own or their business’ reputation knows how unpleasant it can be—especially when the criticism is disproportionate, inaccurate, or unfair. You may feel inclined to respond to unflattering comments and reviews on your own, to set the record straight. But you’re still busy trying to keep the day-to-day operations of your business running smoothly, and realistically, you just don’t have time to answer every critic. Worse, you know that what gets written online stays online for a long time.

So, what should you do when you’re being trashed on the web? How can you salvage your reputation from haters with seemingly unlimited time on their hands?

Prioritize the most prominent or most commonly recurring negative opinions

You may find that many commenters are highlighting similar themes in their negative reviews. Maybe they’ve all had a comparable experience, or maybe they’ve been influenced by a particularly outspoken seed-planter. Regardless, you’ll save yourself valuable time and energy by locating the original or most prominent exponent of a particular derogatory view. Address that person directly, and try to be diplomatic if you reasonably can.

If a misconception about you or your business is very prevalent in public discourse, or there is a significant issue affecting your organization that requires explanation or clarification, an open letter or public announcement would be more effective than trying to address individuals’ concerns one at a time.

Resist the knee-jerk temptation to become defensive

Defensiveness is a natural reaction when one feels under attack. But a defensive tone can easily invite escalation. Many disgruntled-sounding customers will become more reasonable and even-handed once they’ve calmed down. By contrast, the more heated and argumentative an online discussion gets, the lower the probability of a mutually satisfactory outcome.

A good first step in many cases is to express regret over the unpleasant experience the complainer has had—“I’m sorry that this happened to you.”

Often, you’ll find it’s not difficult to identify the source of the individual’s discontent and possible solutions.

Try to set things right

Does the complainer have a legitimate gripe? Did you or your company do something that caused offense or dissatisfaction? Can the problem be rectified, or at least mitigated? Was it within your control?

Be honest with yourself as you contemplate these questions, and think about ways that you can offer a legitimately dissatisfied customer, client, or stakeholder some consolation. Would a partial or total refund be appropriate? Or a free session or product?

Don’t waste time on lewd or scurrilous comments

You’ve undoubtedly come across the phrase “Don’t feed the trolls”. Indeed, not all critics  are fair, civil, or reasonable, and it’s okay to be discerning about the ones you choose to engage.

Online harassment remains a very serious problem in our society, and the ability to offer opinions anonymously online brings out the worst in certain people. Unfortunately, even in 2016, women and girls in the public eye are still regularly subjected to degrading, misogynistic diatribes. Abusive language and character assassination aren’t justified by any error or misjudgement on your part, and you needn’t feel obliged to put up with such behaviour.

Online fora and social media platforms typically have content management policies, including harassment protocols. If someone is either harassing you directly or spreading hateful innuendo about you or your organization, don’t hesitate to report it to the site’s administrators.

Keep your eye on the ball

While you can’t always dissuade people from making negative comments about you or your business, you can focus on your present and future clients and customers. If you continually learn from your mistakes and do your job responsibly and effectively, you should receive plenty of positive reviews to offset the nasty ones—especially if you make a point of soliciting and incentivizing feedback.

Conquer the Fear of Saying No

If you ask a person on the street which word is likelier to contribute to personal and professional success—yes or no—that individual will probably choose the former. But as many leaders in the world of business and politics will tell you, learning to say no can be every bit as important as knowing how to say yes. The reasons for this are largely intuitive: by turning down some engagements, you free up time, energy, and mental focus for the endeavours you find most inspiring.

However, many of us feel distinctly uncomfortable with saying no, often because we worry that doing so may cause offence or otherwise lead to negative social consequences. Insofar as it compels us to take on more commitments than we can handle at any one time, this anxiety can hamper our pursuit of the professional and life goals that are most important to us.

Establish and respect your own boundaries.

Your work is surely a high priority for you—but so are your health, quality time with friends and family, leisure time, and other hobbies or avocations. Think of your lifestyle as analogous to a meal: nearly everyone would prefer a flavourful medley of high-quality, healthy ingredients to a monochromatic, humdrum dish of little nutritional value. Likewise, if you devote all of your time to a single work-related project, you probably won’t enjoy a wholesome existence.

Once you set parameters like the number of hours you’re willing to devote to a new project, and commitment versus expected benefit, you’ll find it easier to distinguish the undertakings that really interest you from the also-rans.

Be honest with yourself.

Before you dive headfirst into any significant assignment, ask yourself the following questions:

1)  Am I genuinely passionate about this project?

2)  Five years from now, will I look back on my efforts with pride?

3)  Is it consistent with my values?

4)  Why is it important to me to take this on?

5)  Will I be able to dedicate sufficient time to this?

6)  Do I have the necessary technical expertise, and/or can I partner with someone who does?

Unless you can answer all or most of those questions, you’re better off saving your talents for something that’s more up your alley. Otherwise, you’ll likely either feel stretched too thin, or a sense of regret about the opportunity cost.

Know your strengths.

We all have strengths and weaknesses. The first step on the path to success in any field is to identify your own. Once you know where your own aptitudes and deficiencies lie, you can work to refine the former and improve the latter. You’ll also know which of your personal attributes you can rely on in high-pressure situations.

The willingness to venture outside one’s comfort zone is often an admirable quality. But if a project either isn’t your cup of tea from a technical standpoint, or you sense that your time would be better spent elsewhere, you should consider either turning it down or delegating it.

Strategies for politely declining:

“I’d like to know more. Can you send me more information?” This serves two purposes. First, it provides a test of the other individual’s commitment; if you never hear from h/er, you will know. Second, it gives you the opportunity to learn more about the endeavour itself before deciding whether to take it on.

“Let me check my calendar and get back to you.” This is not an explicit demurral, but it does enable you to buy time. It is possible that the person who pitched the idea to you will forget after a while. Alternatively, on further reflection you may decide that the project is right up your alley.

“This seems like an excellent, worthwhile idea, but unfortunately...” Shortage of time is an excuse that most people will accept, particularly if they’re not close friends of yours who happen to be conversant with your schedule.

The Art of Self-assessment

Self-assessment is an art, and knowing precisely who we are, where we’re at, and what we offer is an essential component to business management. Looking inward can be cathartic, it can be eye opening, and it can even be shocking. But no matter what, it has to be revealing and it has to be authentic. In the process of assessing ourselves, if the truth does not surface, even if it’s a hard truth to face, your business could soon find itself in peril. Of course, it’s hard, even seemingly impossible, to be incredible – to always be ahead of the business game and driving the market forward – but it should always be an ideal to strive toward. Most of the time every business out there is just trying to stay relevant and stay in the game – we want to find a niche, grab a slice, and build a life. A credible business that stays true to itself and that feels solid from sunrise to sunset is where the lion’s share of us to look to invest our time and energy - it’s how we earn our living; it’s how we eat. Done properly, a thorough self-assessment can be the difference between being a credible business and being an incredible business. On the other hand, an inauthentic self-assessment can be the difference between being credible and being eaten alive.

Leave your ego at the door

The story of how the artist suffered through countless years of having their work overlooked and receiving rejection after rejection before they eventually had their big breakthrough is so mainstream that it’s become cliché. Typically, the reason even some of the greatest artists, musicians, and writers suffered for so long isn’t because the world wasn’t ready, or that their work just hadn’t reached its audience, it’s because their work probably wasn’t very good. Inventors also go through hundreds of designs that fail miserably before they hit on the one that works, goes public, and then viral.

The roadblock that proves so difficult for these artists and inventors to overcome is their own conceptions of their real, or perceived, talent. In much the same way that a mother always believes her child is the most beautiful baby ever born, so an artist believes that their work is brilliant. It’s too crushing to the psyche to admit that what came from the most intimate part of us is ugly or worthless, so we end up living in denial instead of taking the positive out of negative criticism.

Harness the force of negative feedback

Anyone who has studied the ancient Chinese martial art of judo understands that the key to subduing your opponent is to use their own weight, and their own force, against them. This is how we have to begin to understand self-assessment from a business standpoint. If our work, or our product, is receiving negative feedback it’s important to make the distinction that it’s not as much about our clients pointing out our inadequacies, as it is about responding to what our clients are telling us they want. Every piece of negative feedback, whether about your product or service, or your competitors, is a window into what customers in your market are looking for. Isn’t business, after all, about meeting that demand?

The seldom-told story

Whereas the story of the struggling artist has become almost trite, there is another story that you don’t really ever hear about. It’s the story about the artist who after years and years of rejection eventually just gave up and was never heard of, ever. It’s not a story many people like telling, but the unfortunate reality is that it is by far the more common. Conventional wisdom tells us that what separates the successful artist from the one that got out of the game was a result of their superior talent. But in art, as in business, Darwinian principles rule where it is not the strongest of the species that survives, but the one most responsive to change. The successful artist, like a successful business, is able to tap into what their clientele is looking for by successfully internalizing the criticism they receive. After an objective self-assessment whose focus is on growth, one can then use any criticism to make positive strides forward and leap from being edible to credible, or even credible to incredible.