Components of a Business Plan


Business plan tells a very special story. It is the story of a unique business enterprise, the one you, the entrepreneur, will create. Telling this story will reveal how knowledgeable and competent you are, how certain the outcome is, and how desirable it is to proceed with the project.

There are similarities among all good business plans, but no two are exactly alike, because no two businesses are exactly alike, even if they make and sell same thing to the same market, two businesses will have different personalities. The behavior and attitudes of the managers will be reflected in the businesses. Even the décor will be different, just as the homes of the managers will reflect their individual taste and style. Each business plan is unique.

Several topics that deserve consideration in the plan: what, how, where, and when. You would expect to see topic headings like the following:

  1. The Product. What product or service is being offered? How is it made ready for sale?
  2. Target market. Who will part with their money? How many of them are there? Where are they?
  3. Competition. Where do the customers obtain the product or service now? How does that product or service differ from yours? How strong is the competition?
  4. Marketing. How will the customers learn about your product? Where can they buy it? How does it get to where they buy it?
  5. Management. Who will coordinate the activities of production, administration, and marketing? Who will decide what is to be done and when?
  6. Financial Performance? How much profit will be made and when? How much capital is required? What will the business’s net worth be a year from now? Two years from now?

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Greed


Technically, greed is not one of the seven cardinal (deadly) sins, avarice is. Greed is an excessive desire to get or have, as wealth or power, beyond what one needs or deserves. There is no mechanism , or even rationale, for deciding what  one needs  or deserves  or what is excessive.

Pride is the first of the seven cardinal sins, but we are encouraged to be proud of country, school, family, employer, and other institutions. The issue is not pride but the form that pride takes. This applies to wanting more than one has, what some people call greed. It depends on how the greed affects behavior. Greed is not bad. Immoral and unethical behavior is bad.

Greed means the desire to have more than one has. This trait leads, through the invisible hand, to competition. Greed causes us to want more in a free, competitive society we have to work harder and smarter. This increases human welfare by providing more and better marketing mixes (product, price, distribution, and promotion). It is the marketing mix that satisfies the buyer’s wants and needs. Competition keeps greed in check except when we act immorally. In business competition, unlike sports, there can be more than one winner.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Meeting Management: The Thank You Note


The common thank you note is applicable to large and small meetings. It may be handwritten and should be as informal as your organization style will allow.

If you send thank you notes, your message will stand out in memory. You must be sincere and never, repeat, never, attempt to curry favor by using a thank you note.

Thank you notes may be sent by the group leader or any participant. If you are a participant and wish to send one, only do so if you were honestly impressed by any event. Some examples:

  1. Excellent Presentation: A high-ranking executive of your organization makes a presentation on some aspect of a problem you face. If the presentation was exceptional, send a note, thanking the executive for time spent helping your team.
  2. Clarifying Remarks: A specialist visits long enough to clear up a few technical points. If this was a real contribution to your knowledge, send a note.
  3. Outstanding Work: Someone on the team does an exceptional job. Send a note if it is deserved.

These are only a few examples. More will occur to you as you consider this technique.

The thank you note must be written. A telephone call, while nice and possibly appreciated, will not have the same impact.

The thank you note is a reminder to the thanked individual that your group exists. It will make it easier to get him or her to come back for another meeting, and on return, be in a cooperative mood.

With thank you notes, be sincere; falseness shows. Use it as an expression of earnest thanks and appreciation for a job well done

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Outstanding Credit Culture


Just as individuals need a set of values (virtues) to guide their actions, systems should be designed to have a set of attributes which optimize their performance towards the goals. In this regard, the credit culture should have seven fundamental virtues:

  1. Provide fundamental insight to help clients achieve their economic goals and solve their financial problems.
  2. Responsive: the client deserves an answer as quickly as possible, even when the answer is no.
  3. Flexible (creative): commit to finding better ways to meet the client’s financial needs.
  4. Reliable: select clients as long-term partners and treat accordingly.
  5. Manage risk with agreed upon limits. Clients do not want to fail financially, and you should want a bad loan.
  6. Ensure an appropriate economic return to the firm for risk taken. The higher the risk, the higher the return the lower the risk, the lower the return. This is the expression of justice.
  7. Create a “premium” for service delivery. The concept is to provide superior value to the client through outstanding service quality.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

Response to Failure


What happens when someone makes a mistake that sends you through the roof? What happens when you want to rip a person apart for having made a mistake, even when he or she acted within the established guidelines?

First of all, it is important to recognize that those feelings are not a sign of weakness, they simply mean that you are human. The important thing is what you do with those feelings.

If you act on them immediately, more than likely you will destroy any trust you have established between the person and you. Any progress you have made in convincing people that it is okay to fail can be undone in an instant.

You will be better able to accomplish your objectives if you will abide by this unwritten rule: Never reprimand a person unless you are in full control of your own thoughts and emotions. This way you won’t say or do things that may result in momentary satisfaction in the short term but regret in the long term.

I am not suggesting that you never show emotion to your people that you let them know you are angry or upset. Showing your people how you feel can be quite beneficial at times, provided it is shown in an appropriate way and for the right reasons.

When you respond constructively to people’s failures you are doing the single most important thing you can do to let them know that it is okay to fail.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Equal Employment Opportunity


For the last 5-6 decades, women and ethnic minorities have sought equal employment opportunities. These include the desire for a) equal pay for equal work; b) jobs for women and minorities in high-pay, high-prestige occupations—in approximate proportion to their members in the general population; c) a fair chance for women and minorities to be promoted to better jobs based on merit; and d) recognition of the special problems women and minorities face.

Even though the number of working women has grown many times faster than the number of working men, they are concentrated in clerical and service jobs, where they earn less than men for the same work—even when education and work experience are equal. Women also suffer from untrue stereotypes and absenteeism and emotional instability. And they sometimes have to do much better work than their male colleagues to be promoted.

Business can help create equal employment opportunity by providing women with role models—examples of productive and successful women—and by promoting them when they deserve it. Business can also offer flexible work schedules, day-care facilities, and leaves of absence for child-care when necessary.

Business can help minorities to achieve equal employment opportunities by actively seeking them as employees, by redesigning job requirements so as to rely more on skills and less on traditional backgrounds, by financially supporting minorities who want more education, and by placing minority employees in mainstream jobs where rapid promotion based on ability is customary. Many businesses are also helping minorities by buying some of their supplies from minority-owned small businesses.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

Thinking about Processes


Many people don’t really think about the process they use, but why process planning is important:

  • You want to make products that satisfy customer demand;
  • The products must, in some way, be better than competitors;
  • The process makes the products;
  • To make better products you need a better process.

You can make most products by a number of different processes. If you make tables, you can use craftspeople to build them carefully by hand; you can buy parts and use semi-skilled people to assemble them; you can use automatic equipment on an assembly line; or you can mould complete tables from plastic. Each process gives a product with different characteristics. Process planning designs the best process for delivering any particular product.

It’s especially important to design the process for services, as you can’t really draw a line between the product and the process used to make it. How, for example, can you separate the service given by a bank, theatre or taxi from process used to deliver it?

There’s a huge variety of processes. It is easy to design a process for baking a cake; but if you want to bake 100 cakes for a garden party you will use a different process; and if you want to bake a million cakes every week, the best process is different again. Unfortunately, many managers don’t take their processes seriously, and can hardly describe them in coherent terms.

You can start thinking seriously about your processes by recognizing them and describing the details of each. Make everyone in the organization aware of the processes and their importance. Then you can see how well the processes are working and look for improvements. Your processes are at the heart of your organization, and you really should give them the attention they deserve. Emphasize your processes, which consist of all the operations needed to make your products.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, Line of Sight

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