Moving Business Plan Date Back

Good day all!

Sometimes you just have to be realistic. Due to my 2 week vacation during the Christmas Holiday, I want to move the date back 2 weeks to give time to work on the Marketing Part which is the last part of the plan. Below I am recapping what we have done and how all the pieces will come together:

1. Identified Who Target Customers Are
2. Set the Floor for the minimum amount/project you will accept
3. Determined How much in expenses you will have each month
4. Then Divide the Expenses/Floor Amount = Number of Projects You Need to Do Each Month
5. Develop Marketing Strategies To Get That Number of Projects

That is it.

So, I hope that this has helped out everyone and I look forward to working on the last part with everyone over the last 2 weeks. Please see the revised milestones.

C.

Group Business Plan: Finances, Finances, Finances

Many people are very worried about the financial piece of a business plan, they dont know where to start or how to complete it. But to keep in line with much of what we are doing here (a bare bone business plan FOR YOU so you can conduct business better in 2010).

Well, I went ahead and prepared a template budget. Now this isn’t perfect but this is a start. What you will see in this budget is 7 areas.

• Administrative
• Salaries
• Communication
• Professional
• Operating
• Cost of Goods
• Other

The xls spreadsheet is set to do the totals and averages for you. Just enter in how much you expect or want to spend in January and then the rest of the spreadsheet will do the math for you.

The big thing for you to look at is the bottom line number. Each column serves as a month so at the bottom you will see how much you need to bring in to meet this goal.

Questions:

• Calvin, where is the cost of goods?

Being how I didn’t know what your direct costs were, I just made a section called cost of goods. Costs of goods is the actual cost (labor/parts) that it costs to create your product/service. It could be per hour or per product but that cell is for the total amount that you project you will spend on costs of goods.

• Calvin, I produce the work, I dont pay anyone?

Then you have to see yourself as an owner and as a employee. If you were an employee and you had an hourly salary ($30.00/hr) and on average you have 100 billable hours per month, then that means that your Cost of Goods is $3,000.00. That is the fee just for you as the employee.

The Salary part is what you are paid as the owner of your business. So you might bill out 100 hours a month and take a $750.00/month salary. This way no matter how your billing is, you will pay yourself something (if you are just starting out). Then as you see the bottom total you will see how much you need to bring in.

To treat your business like a business, you have to begin to pay yourself a set salary. If $750.00 is too big, start small. No one will know but you.

• Calvin what is Exchange Server?

I use an exchange server to manage my email (www.mailstreet.com).

• Calvin, can i add or delete rows?

Yes, please customize to your hearts content. If you have questions please do not hestiate to ask.

• Calvin, why do you start your questions to yourself with Calvin?

Because I can and I am cool! just playing.

• Calvin, what is Savings in Operating?

This may not be the best place for it but I feel it is important to build a savings in your business. Whether you are padding your account or moving the money to a business savings account. It is good to begin to build up a cash reserve and the only way to do that is to plan for it.

I would start with the following goals and when you achieve it, work your darnest to never fall down to the goal below.

Goal 1: $1000.00 Pad or 1 Month’s Bills (whatever is greater)
Goal 2: $2500.00 Pad or 3 Month’s Bills (whatever is greater)
Goal 3: $5000.00 Pad or 6 Month’s Bills (whatever is greater)
Goal 4: $10,000.00 Pad or 12 Month’s Bills (whatever is greater)

When you reach $10k then it is time to speak with your banker about other ways to store your money and getting a better return.

So have fun and let me know if you have questions.

C.

PS. There is one more part of this bare bones business plan and we are good to go.

Mind you this isn’t perfect but hopefully for those who haven’t ever planned for a year you can use this as just a general tool to figure out how much you need to gross per month.

There are more sophisticated tools and always a CPA :).

Group Business Plan: Finances – Where’s the Floor?

We have all taken clients that looking back we shouldn’t had taken. We knew they might be trouble (and they were), we knew they didn’t have the finances needed (and they didn’t). So, why do we take them? A lack of focus and a lack of faith that we step up our business, our clients will step up with us.

Well, maybe the current clients wont step up with you. But I believe and serve a God that is all supplying and my provider. He knows your heart and your desire to provide an amazing product/service to your clients but that your current clients are appreciating you and your services.

So it is time to set the floor. From this day forth, I will no longer accept work under $____.00 limit. Yes, that big of a statement.

What will happen?

You will get a bunch of potential clients near and under that limit and you will think about taking them on. How do I know this? Because I have gone through it myself as I increased my minimum price from starting at $400.00 to where I am now (no, I am not going to tell you! lol)

Every time I set the bar, clients would come under the bar and in an overflow. One time I tried to take them on and looking back I regretted it. So what do you do? Be a blessing to someone else!!! Find individuals that provide your service but aren’t in competition with you and refer them the work. Develop partnerships and friends. Help them grow their business. After that initial flow of client of your old type of clients passes, then you will have/go after the type of clients that you want and you will have the availability to service them.

Looking at your current clients or the client’s that you deserve to work with find out what is the average that they invest/spend with you. For some they do not want to have clients under $800.00 while others do not want clients under $20,000.

In addition, you may set this floor based off of any number of things:

• To minimize the number of monthly clients so you can focus on the projects and do your best.A desire to stop a certain type of troublesome clients
• To force yourself to go after a certain type of client

But whatever your reason, think about the projects that you have done and where you want to be. If you aren’t sure about your floor, just set one low. Soon, you will change it.

Set this goal for next year.

I will only accept clients that will be willing to invest $______.00 in their project and with my company.

Lets Go!

C.

Tiger’s Infidelity Connected to My Celibacy

Right now Tiger Woods and his private matters have become quite public. This morning as I was watching ESPN they had more coverage on it and I began to think, what can I learn from this situation. One thing came to mind…

The importance of self control.

Now, I was in no way shape form or fashion on the same level of Tiger Woods but I did have an interesting college experience :joining a fraternity freshman year, going on to be Student Body President, starting a company on campus. Looking back, at the time, I could barely fit my head in the same room as other people. I felt like I could pretty much do what I wanted and how I wanted to do it.

So taking that feeling and multiplying by $1 Billion, I had a glimpse to how Tiger could have felt while sitting on top of the world. Now, during part of that time, I didn’t have a girlfriend and like I said, I felt like I could do anything that I wanted. After college, I went through a period of isolation where I dealt with alot of my weaknesses and areas that I had to improve in. Coming out of that, I had a closer relationship with God and a determination to be celibate until marriage.

Now, celibacy definitely started as a major challenge and I had  some interesting experiences as I became more comfortable with it. But now since starting down that road 3 years ago, I can see some of the most important lessons that I have learned. If I am to be as successful as I desire to be, I must learn how to control myself when no one else is going to hold me accountable. It is the battle within that is rarely fought while we dress up our exterior.

Now, I do not know if Tiger practiced celibacy or abstinence before marriage but I do know that for myself, that since going down this road, I am a stronger man and I no longer fall for the same temptation. If I continue on the path that I have set out to be on, hopefully  I would be protected from any of these types of Tiger Wood’s press releases.

So, I just ask that all of us that have aspirations to be great that we tackle our inner challenges. If not, when put under a international microscope, everything will be revealed. Sex can be a monster… Celibacy can help control it.

———————————————————

My prayer:

My prayers are with Tiger, his wife,and his children during this very sensitive time and I pray that the strength of God and correction of God will rest in Tiger and he will grow to become the internal man that God created him to be, and not just the professional juggernaut he has become. I pray for his wife that she is comforted with the love of God and that she knows that even in this time of betrayal there is one who never betrays and is always with her, Jesus. For his children, I pray that they are protected from unnecessary conversations and exposure, and that through this experience they gain a closer relationship with Christ, as he is the only perfect man to ever live on the earth, and that they will increase in compassion and love for both of their parents. Amen.

Group Business Plan: Suggested Reading – The Gospel of Business

In every effort, there is almost always someone who has been there before that can help. Well, this is one of those situations. The book that I am recommending, The Gospel of Business by Clay Howard, is a amazing read not based off length but by the content provided.

The book is a short read, seven short chapters and the whole book can be read in less than 30 mins. I recommend that anyone that is going down this road with me read this book for the following reasons:

1. It puts things in very simple terms so that if you have alot of book knowledge/experience it will put things in perspective quickly and if you are new it gives enough to get you going
2. It shows how and why your business may not have kept the success that it was on pace to achieve
3. It’s focus on marketing pushes the business owner to ensure that they are organized and prepared for the future

The book cost $10.00. I am going to pull more from the book as we continue on…

Group Business Plan: 1st Step – 5 Ws

Yes we will move aggressive to get this done, it is your business like mine. No one ever was successful being sloppy and last minute. If you have to stay up late or wake up early get it done.

The first step is to define the 5 Ws.

Define the 5 Ws: Who? What? When? Where? Why? How?

1. Who is your target market?

• Define this as closely as possibly and include 3 example clients.

2. What is your product/service?

• Define this as precisely as possibly.

3. When do you plan on launching into the market?

• Define when you plan on starting and why?
• If you are already in business then state when you are launching your “new”/”newly organized” business and change the way you conduct business

4. Where are your clients?

• Define where are they in the world.

5. Why should anyone choose you?

• Name at-least 3 of your strengths.

6. How will you provide your service to your clients?

• Define the process of how you will provide your services to your clients.

Assigned and Due December 13, 2009.

Yes we will move aggressive to get this done, it is your business like mine. No one ever was successful being sloppy and last minute. If you have to stay up late or wake up early get it done.

Love ya!

C.