Business Development, Business Strategy

The Engineering Business Plan and the Business Model

Separate from a Business Plan is the Business Model. The Business Model is nothing more then a description of the means and methods the firm will employ to earn revenues projected by the Business Plan. The Business Plan describes what the business wants to accomplish and what resources it will use to reach those objectives. The model represents the business as a system of a series of steps (actions) to generate revenue and make a profit. The model includes the components and functions of the business, as well as the revenues it will generate and the expenses it incurs.

The traditional Civil Engineering Business Model is as simple as the engineering company and the customers within a key market like Land Development. The engineering company provides the services that the customer needs and wants, and in return the client pays a fess for those services. Once the engineering company has paid all of its expenses including salaries, the company is left with its profit.

This model although simplistic works well if there is very little or no competition and there is plenty of demand for your services. But rarely is this the situation especially in a declining market. The model in most cases needs to be more robust. One needs to see the “bigger picture.” In order to support the Business Plan the Model needs to address the four main components of the business; Framework, Financial, Client, and the Offer.

Business Framework (Infrastructure):

  • Key Resources – What are the company’s capabilities necessary to make the Business Plan possible?
  • Key Activities – What company activities are necessary to implement the Business Plan?
  • Key Partners – What company partners are motivated to participate in the Business Plan?

Client (Current and Prospective Clients):

  • Segment(s) of Clients – What is (are) the targeted audience for the company’s products and services?
  • Communication and Distribution Channels (Marketing) – What are the means the company will utilize to reach the customer and offer them those products and services? What marketing campaigns will the company utilize to reach its targeted clients?
  • Client Relationship – What are the processes the company will establish to maintain its relationship with the clients?

Business Financial:

  • Revenue Streams – What are the company’s sources that will generate funds to support the Business Plan?
  • Cost Structure – What costs will result from engaging in the Business Plan? What will be the company’s expenses?

Value Proposition (The Offer):

  • What are the company’s products and services being offered to the market?

To sum up the Business Model – The business resources of technical staff and equipment complemented by business partners are able to offer a wide range of products and services with a particular billing rate to potential and existing clients, which are obtained through on-going marketing efforts of the company’s staff with an ultimate goal of presenting a proposal and an agreement between the client and the business to provide certain services and products for revenues.

There are multitude of schematics that are used to represent the Business Model, but they all include the four components; the Business Infrastructure, Financial Strategies, Clients, and the Offer or Proposition. In order to get to the end result, revenues, each of these four components of the Business Model must be operating at the best level of efficiency in order to obtain the most revenues. Failure in any step will either reduce the amount of revenue or completely run your business out of business.

It would be difficult to provide services or products to your clients if the resources necessary were inadequate. Imagine if your firm was contracted to provide a Technical Drainage Study for a 200 acre site, but you were not capable of analyzing a proposed open channel using any of the available commercial software. You then have to sub-contract this work out, hopefully to one of your partner companies, to assist you in this area of expertise. Otherwise, you will not be able to provide the service you were contacted to perform.

The same is true if your firm has all of the necessary engineering design expertise it requires and has also contracted with other sub-consultants to provide surveying services, but you have no marketing expertise. Although there are a number of needy clients in your local market, you have no way of contacting them nor do you even know how to identify your potential clients. The chain is broken because there is no way for you to contract with clients to provide the services you have available. Of course, we you have no clients you have no revenues, and when you have no revenues you have no business.

Even if you have an excellent infrastructure and business partners, and you have a huge pipeline of clients that you obtained through marketing, all will be for not if your proposals do not provide your clients with the necessary services they need at a fair price.

The Engineering Business Model a tool that assists the company to implement the Business Plan. A properly prepared Business Plan and a well designed Business Model will focus your company on the task at hand, which is to obtain contracts and clients and to produce profits. If you have not already done so, now is the time to either put together your first business plan or update an existing one. Once completed, the plan is a resource with a great deal of information. It will make you well of aware of competition, the market, and your company’s capabilities. Updating the plan regularly will keep you well informed on what is happening in your business.

Most engineers have excellent technical skills, but not necessarily the same level of expertise in management. It is responsibility of the engineer to develop these management skills through continuing education. This continuing education can be obtained through Community Colleges, Universities, Professional Training Programs, Professional Organizations, and online training courses. In most states these continuing education courses qualify for continuing education units (CEU) or Professional Development Hours (PDH).

 

In this article Joe Haun, discussed how the Business Model is an integral part of the engineering business [http://www.engineeringbusinesspubs.com/ebp_seminar_018.htm]. To learn more about the business of engineering, and how to quickly receive your engineering CEU’s and PDH’s through online training, visit: Engineering Continuing Education [http://www.engineeringbusinesspubs.com/ebp_seminar_004.htm].

 

Article Source: https://EzineArticles.com/expert/Joe_Haun/701991

 

 

 

 

 

 

Business Development, Business Strategy

Bootstrap Business Financial Plan – Starting a Small Business With Bootstrap Financing

Preparing a sound, bootstrap business financial plan is the absolute key ingredient for any budding entrepreneur starting a small business with bootstrap financing. Unlike a traditional business plan, a financial plan for a bootstrapped business contains six essential components.

Components of a Successful Bootstrap Finance Plan

1. Expense Summary
The expense summary contains the start-up costs and ongoing operating expenses needed to get your business up and running.

2. Projected Profit & Loss Summary
Your profit and loss summary is a key tool for determining how long it will take your business to become profitable. It reflects a very simple formula of: revenues minus expenses, equals profit or loss.

3. Sales Forecast Summary
Your sales forecast summary is an estimation of what you believe your sales are likely to be each month. Sales forecasting requires research and a solid knowledge of your industry, niche market and product or service.

Starting a small business with bootstrap financing requires laser targeted forecasting. This is not as difficult as it sounds, it just means you must really invest the time in thoroughly researching your business.

4. Reserve Funding Plan
Establishing a reserve funding plan is essential for weathering the “start-up storms”. This is a back up funding plan for keeping your cash flows above dangerous levels.  Your bootstrap business financial plan must include a reserve funding plan, in order for your new venture to be successful.

5. Cash Flow Management Plan
This is simply the anticipated inflow (sales) and outflow (expenses) of cash through your business by month. Why it’s so tricky is due to the fact that you may have slow sales or no sales when you’re just getting started. Or, perhaps your customers are not paying within terms. Even if you have great sales on paper, your cash flow management plan will determine your success to a large degree.

6. Balance Sheet
A balance sheet provides a good overall picture of what your business is actually worth. It takes your assets (physical goods like equipment or property) minus your liabilities (debts owed to creditors) and gives you the equity value of your business.

What makes these components different from what you would prepare for a business plan written for bank financing? Well, the main difference is that this plan is just for you. It is an actual plan that you must follow to achieve success in your business. I have seen far too many instances where a traditional business plan is almost completely ignored, once the bank loan check is cashed.

With over one third of brand new businesses failing in their first year of operation, you owe it to yourself to minimize your start up risk, by being well prepared with a sound financial plan.

Where Does a Bootstrapped Business Plan Fit In?

 Where does a bootstrap business financial plan fit in? Well, first you must understand bootstrap financing. Starting a small business without borrowing is the ultimate goal of a bootstrapped business’ financing strategy. Many new entrepreneurs just don’t realize that you can start up a business, even if you have very little money, poor credit or don’t own a home. How is this possible? I know that I’m going against conventional wisdom here, but you really can start up a brand new business without BIG bank loans or a stockpile of cash.

Find the free sources of business start up funding your new business needs to survive and thrive. Start by claiming your free copy of The Bootstrapper’s Business Start-up Planner, by visiting my website.

©2009 Kimberly Kelly – All Rights Reserved Worldwide.

Permission to reprint this article is granted strictly on the condition that it be reprinted in its entirety, with all live links and author bio in tact.

 

Kimberly Kelly is a Certified Start Up Business Consultant, specializing in bootstrap start up financing. She teaches new entrepreneurs the secrets for finding free sources of business start up funding [http://www.startupbusinesssurvivalguide.com] through her ebooks, seminars and coaching services. She is the author of the popular selling ebook: The Start-Up Business Survival Guide: 101 FREE Products and Services to Help Finance Your Dream of Successful Business Ownership. Visit her website at [http://www.startupbusinesssurvivalguide.com]

 

Article Source: https://EzineArticles.com/expert/Kimberly_Kelly/337048

 

 

 

 

Business Development, Business Strategy

Business Plans – Essential Elements and Your Business Profile

Your business plan and business profile is the roadmap that you will follow not only in the beginning of your company, but throughout your time in business. Therefore, it is essential that this plan be well-developed, focused, and detailed enough to serve as a planning tool and as a reference as well.

Your business plan format should be a careful, systematic evaluation of factors that are both critical and suitable to your business purposes and goals. You should strive to include topics that can be tailored to fit your plan. Maintaining focus on the specialized market that you plan to serve is another imperative factor as you define and describe your business and how you plan to proceed with your plan-which is precisely what you will do with your developed business plan. Following here is a break-down of what should be included in your business plan and profile.

Cash Flow Assessment

You absolutely need to take the time to sit down and project your first year of cash flow, based on projected sales, profits, and expenses. This cash flow assessment should include

o Your capital requirements
o Marketing plans
o Realistic projections of sales and profits
o Plans for expansion
o Your assessments of what could possibly go wrong and how you would handle certain problems

There are many small business websites and government resources on the local, state, and national level (for all locations) that can help you learn more about developing the cash flow assessment portion of your business plan.

Market And Economic Assessments

You must put time into researching your target market. You need to know how your business is appropriate for specific demographics and which ones you’ll deal with. You also need to learn about what costs and expenses those demographics can afford, and what demand they have for your service or products. Demographic studies should be cited and a summary of your research needs to be included to show that you have developed a way to serve a need that is either in demand or will be once available. Local planning departments are one resource for finding demographics for things such as population and population break-downs, household demographics, and more. Trade associations are good resources for information related to supply, demand, and target market characteristics.

Meeting Regulatory Requirements

Some businesses have very few regulatory requirements while others bear quite a large burden. Your role is to know what you are responsible for in your line of business. This knowledge should be represented in your business plan, and you need to account for the costs and expenses relative to them. Include information such as

o Which agencies regulate your industry

o Which specific regulations you need to meet

o Licensing requirements

o Fees and costs

o Regulatory or licensing requirements that you have already fulfilled

o Plan for meeting outstanding obligations

Including Yourself And Others In The Plan

Naturally, the key factor in achieving business success is YOU. Sit down and focus on skills and experiences of the past pertaining to your new business. Prepare a resume for yourself and others who may be involved with your business; ensure it is strongly written as your plan will be reviewed carefully by those you look to forge business relationships with such as vendors, investors, and lenders. If you aren’t skilled at preparing resumes, there are many virtual assistants and ghostwriters who will be more than happy to accept you as their client; otherwise there are many books and online resources to assist you.

As you write your resume, be honest and don’t write any untrue information; if there is a particular function you lack the ability to perform, be sure to include this in your business plan, and address how the need will be filled. Your resume and business plan should inspire confidence for both what you do and do not know, and the skill you show in fulfilling all needs of your business.

Five Steps To Successfully Create A Business Plan

1. Sit down, relax, focus, and concisely describe your business concept-put it down on paper!

2. Perform research and due diligence, and gather as much data as you possibly can.

3. Based upon data you have accumulated focus and redefine your business concept.

4. Outline the specifics of your business, utilizing the “who, what, when, where, why, and how” approach; make sure all of these answers are provided within the text of the plan.

5. Proof and adjust your business plan.

In both the short- and the long-run, arranging your business plan into a compelling form not only provides insight and focus to you, but becomes a valuable tool when dealing with business partners and developing relationships that will become important to you.

Necessary Factors Contributing To Business Success

o Understand your market

Researching your target market and their needs is imperative. Find ways to test market your product or service before starting your business.

o Financial control

You’ll find out sooner than later the importance of accounting, cash flow management, and computer software; many entrepreneurs don’t have accounting backgrounds and either need to learn those skills, or find the right tools and professionals to perform those functions. Still, at some level you must be involved so that those professionals and programs get the most accurate information possible and you stay abreast of how your company is doing.

o Anticipating change

Your original business plan will lay the foundation for your business, but over time, perhaps even before your business gets started, there will be many changes you must adapt to. Obtaining a certain mindset and being prepared for changing circumstances will only expand your knowledge and your success.

Julie-Ann Amos is a professional writer and business consultant. She has over 14 books published in many countries. She runs Exquisite Writing, a large freelance writing agency that produces a wide variety of articles, web pages, website contents, books and ebooks for an international client base. Topic experts available for a wide range of subject areas, including small business and business planning.

 

Article Source: https://EzineArticles.com/expert/Julie-Ann_Amos/64822

 

 

 

 

Business Development, Business Strategy

How To Optimize Google My Business Listing To (Generate Sales)

20% of your local optimization efforts will give you 80% of your results.

Wondering how?

With Google My Business.

Google My Business (GMB): A free listing of your business’ operating information, reviews, posts, images and much more.

Google My Business

Most of the people you’d come across; consider GMB as just another place to display information about the business.

But that’s not true!

If you haven’t used Google My Business to its core, you are leaving money on the table.

If used correctly, Google My Business is such a powerful tool that can bring you more and more business!

How?

Here it is…

1) Ensure The Information Is Complete And Consistent
Don’t let your audience guess or assume about you. Make sure your listing details communicate enough facts. Try to provide as much information as GMB asks for.

If you’ve just entered NAP (Name, Address, Phone) on your listing and waiting for wonders to happen, then let me tell you, this is a complete waste of your time.

Also,

Ensure the information you’ve entered on the listing is EXACTLY THE SAME as on your website.

Inconsistencies in the information will negatively impact your search ranking.

Google-my-business2

2) Verify Your Listing (If You Haven’t Done It Yet)

This is the key to unlock all the GMB features.

To verify your listing, you’ll be required to submit a code that is sent to your business address.

If you’re expecting some business through GMB, it is highly important to verify your business. With so many fake business registrations every day, a user would not prefer to make a purchase from an unverified listing.

After verification, you’ll need to keep an eye on the inbox associated with your Google My Business Listing, for any emails from Google. Google may unverify any listing if it determines that the account is inactive for a significant duration of time.

3) Google My Business Descriptions ARE BACK!

Google My Business had descriptions back in 2015-2016. They were suddenly gone and since then businesses had no descriptions; which left the users assuming your products and services.

Well, the good news is…

Business Descriptions are back!

With Google My Business descriptions, you have the chance to describe your business to your audience and explain what makes you different from your competitors.

Google My Business Descriptions come with a character limit of 750. So, you can get your message conveyed to the people and simultaneously optimize the listing by using relevant keywords.

Optimize Google My Business

4) Get More And More Reviews (And Respond To Them)

As described by Neil Patel in one of his articles,

Good reviews = sales. More good reviews = more sales.

90% of people read reviews before purchasing because everybody likes the second opinion.

Ask your customers to review your business. But just gathering reviews won’t help. You need to acknowledge them.

All of them!

The positive ones, the negatives, the neutrals.

5) Update Your Business Hours And Payment Options

Make sure your business operating hours are accurate. Update your working hours for any special events. Make sure that you don’t lose any customer because of incorrectly listed business hours.

Also, update your listing for any changes in the payment options.

Also read: 7 Reasons Why Businesses Need To Invest In SEO 2018

6) Choose Best Google My Business Category For Your Business

Be specific while picking a category for your business. Consider your targeted keywords.

Be careful though. Don’t stuff your listing with keywords.

Remember to be specific. Don’t put “Cosmetology” if you run a “Nail Salon.”

7) Pictures, Pictures, And More Pictures

Pictures speak volume!

According to Google, businesses with photos see 35% more clicks to their website and 42% more requests for driving directions on Google Maps.

Adding photos of your business is a great way to let your customers get a “behind-the-scenes” look at what your company is all about… AND it can go a long way in promoting your business.

People don’t want to see stock images but the real face of your business – who you are, what you do and where you’re located.

The most important image in your GMB listing that gets the most exposure and has the most impact, is your ‘Profile Picture’.

However, the cover image is also of paramount importance, as it shows up front and center on your listing. You can also add other pictures based on the business you operate in; this might include pictures of interior and exterior of the business, goods and/or services your business, your staff or employees or any other picture that can summarize or describe your business.

8) Google My Business Videos

You can also add videos. Videos must be:

30 seconds or shorter

100 MB or smaller

720p resolution or higher

Unlike images, videos are not a ‘must have’. However, adding one will make you stand out among other businesses.

Creating a video will not take you any extra equipment or any video editing software. Just pick up your smartphone; take, save and share the video. This video must be taken at your location. Any commercials or advertising videos will be removed.

9) Add Posts To Share Business Updates

Google launched its ‘POST’ feature on all businesses in 2017. With this feature, you can post updates and offers to your listing. You can advertise the latest offers, share updates about new products/services or any special event for free.

Google Posts allows you to add text, photos, gifs, and even call-to-action buttons like ‘Buy’, ‘Sign Up’, ‘Learn More’, ‘Get Offer, ‘Reserve’, etc.

You can create posts only after you’ve verified your Google My Business Account.

However, Google My Business Posts disappear after seven days unless you set a shorter time frame. So, be time specific while crafting the post.

Conclusion:

Google My Business presents your business information to potential prospects. It gives you an opportunity to interact with your customers.

Not optimizing your Google My Business listing is like not opening door to a customer knocking at your door.

It’s an opportunity!

Local SEO takes time but can give you a big payoff. On the top of everything, it’s FREE!

If you need any help with your Local SEO or wish to optimize your Google My Business Listing, you can contact us.

 

Article Source: https://EzineArticles.com/expert/Gautam_Sharma/2579225

 

 

Business Development, Business Strategy

Importance of Family Business Management

Ready to be at the wheel?

March 10 and 11, 2018 gave aspiring and budding entrepreneurs an opportunity to connect and collaborate. As the best and brightest minds came together and brainstormed on on how to fuel their business growth. It is the most important aspect in any of the business. The conference at IIT Mumbai brought together the best breed of entrepreneurs, innovators, venture capitalists, business model creators, consultants, policy-makers, academicians, and business practitioners to present and discuss innovation and success under the aegis of entrepreneurship for Small and Medium Businesses.

Over the past decade or so, in the dilemma between joining family owned businesses and higher studies. The scales have been tipping towards entrepreneurship and joining family owned businesses.

Let us explore the genesis and the reason why:

The Genesis

Today, family-owned businesses account for two-thirds of the world’s businesses and generate most of the world’s economic output, employment and wealth. In many regions of the world, family companies dominate the economy. “Family-controlled firms now make up 19% of the companies in the Fortune Global 500,” states The Economist. In India alone, 67% businesses are family run. McKinsey forecasts, that by 2025,there will be more than 15,000 companies worldwide with at least $1 billion in annual revenues, of which 37% will be emerging-market family firms.

The need

There is a need for Family Business Management Programs whether you are in a successful family business or you are into a business facing challenges and trying to bring about a changeover.

Successful family business:

Successful family businesses are successful because families see important changes in their industry. Simply put, successful families are entrepreneurial. Also,families succeed because they invest in productive activities, emphasise growing assets, and consume relatively little of their wealth. These families maintain a culture that encourages family members to create things of lasting value. It’s not surprising that these families encourage entrepreneurs. Furthermore,successful families remain reasonably united, keeping supportive members loyal to one another and to the family’s mission. Over generations, as families become more diverse, it is likely that only a few relatives per generation will directly work in the business.

Outside-the-business members might still support family philanthropic efforts or social activities, and sometimes that level of involvement is enough to maintain family unity. But investing in family entrepreneurs can also keep talented members contributing to the broader family’s wealth and mission. Investing in family entrepreneurs has to be done objectively based on the feasibility of their business plans, and also fairly within the family. Even if some entrepreneurial projects don’t succeed, these investments will help you spot talent to keep your business growing. And you are sending an important message: this family is committed to creating value.

Family businesses – facing challenges

While family businesses on average are stronger performers than other types of enterprise, they face distinct challenges that need to be managed. This constraint often kills the family business.

This creates the need for a course of study in Family Business Management that helps students understand how to capitalize on the strengths, navigate the challenges, and guard against the weaknesses of the companies and the families that own them.

How is Family Business Management program different from an MBA in Entrepreneurship?

Both Family Business Management and an MBA in Entrepreneurship prepare you for setting up and gearing your own business. However, there is a subtle difference. Unlike MBA in Entrepreneurship which prepares students for a setting up a business, the Family Business Management programme is targeted at family business owners looking to sustain, scale and grow their businesses. The content and pedagogy includes concepts of entrepreneurship, business sustainability, market trends which thereby lead to portfolio expansion and business growth. The program would help you evaluate the state of your family businesses and gear you towards accelerating your business to the next level.

Colleges/Institutes for Entrepreneurial Management

Xavier School of Management (XLRI),Jamshedpur, offering a full-time six-month Post Graduate Programme for Certificate in Entrepreneurship Management (PGPCEM).

Entrepreneurship Development Institute of India, Gandhinagar,offering a two-year, full-time, residential Post Graduate Diploma in Management-Business Entrepreneurship (PGDM-BE).

SP Jain Institute of Management and Research – Mumbai,Start Your Business Certification Program (SYB), Grow Your Business Certification Program (GYB), The Entrepreneurial Manager (TEM).

Narsee Monjee Institute of Management Studies,Mumbai,M.B.A in Social Entrepreneurship

Xavier Institute of Management and Entrepreneurship – Bangalore, offering one year Entrepreneurial Development Programme (EDP)

Nirma Institute of Management,Ahmedabad,offering regular two-year MBA specialising in Family Business & Entrepreneurship.

Amity Business School,Noida, offering two year M.B.A in Entrepreneurship

IIM, Bangalore, specialization in Entrepreneurs & Family Businesses.

IIM Udaipur, Management Development Program for Women Entrepreneurs.

National Institute for Entrepreneurship & Small Business Development (NIESBUD), Delhi

The NIESBUD is an apex institute in the area of entrepreneurship and small business development under the Ministry of Micro, Small and Medium Enterprises, Government of India. It oversees the activities of various institutions and agencies engaged in entrepreneurship development, particularly in the area of small industry and small business. It also provides numerous training and development courses for budding entrepreneurs and small businesses.

Making the right choice:

In the world of family business, the entrepreneurs we celebrate are usually founders of companies. If you wish to be a founder of a company, start your new venture and learn how to navigate, go in for a pure MBA in Entrepreneurship. However, if you wish to join your family business and are supposed to take care of and grow the founder’s creation, you are not expected to be entrepreneurs but to understand and carry forward the vision of the founder,an MBA in Entrepreneurship would be more helpful.

Therefore, it is imperative that you make the right and informed choice…

Are these mutually exclusive?

If this makes you think that family business management programs are incompatible to entrepreneurship. The reason is because they are for students who are in family businesses that are usually tradition-bound, multi- generational. Let me tell you, we need to blur the lines here. The family businesses need to be more entrepreneurial. They need to pass on the entrepreneurial mindset and capabilities. To create new streams of wealth across many generations- not just pass the business on from one generation to the next. We need to come up with the concept of ‘family entrepreneurship’. When a leadership transition occurs in a family business, the new generation of leadership should be careful to maintain and build on the networks and knowledge of the former leaders, while expanding their own networks. This will insure that the business can continue to be entrepreneurial into the future.

And when they do, the distinction between Entrepreneurship and Family Business Management studies would begin to blur…

Based in Ludhiana, Gauri is a motivational speaker, career consultant, philanthropist, blogger and catalyst. She has made a mark for herself in the arena of Education and Careers. With over 15 years of experience in education and counseling over more than 1500 students and 35 schools and colleges, she has appeared on over 60 Radio and TV channels including AIR, FM Gold and ZEE. She is a columnist in leading national newspapers like The Hindustan Times, The Tribune and Daily Excelsior. For info visit: http://gaurichhabra.com/

 

Article Source: https://EzineArticles.com/expert/Gauri_Nagpal_Chhabra/2567734