Fourth Quarter Issue |FEB 2014 -APR 2015 GLOBAL ENTREPRENEURSHIP WEEK EDITION
Successful Business PLANNING
Successful Business Planning
Business & Innovation
9
5
Facilitating Successful Small Businesses
7
Do you really need a business plan?
11
5 Steps to a successful business launch
13
Mobile Business Clinic Highlights
14
JBDC pilots implementation of US SBDC model
Finance 17
Why is a business plan necessary for the loan process?
18
Culture and Channelling Corporate Behaviour – is the bottom line with the Boardroom?
Technology Mobile Business Clinic Highlights
23
How to create multimedia business proposals
STAFF ADVISORS: Ms. Valerie Veira, J.P. Chief Executive Officer Mr. Harold Davis Dept. Chief Executive Officer
23
Mr. Antonio Vouranis Chief Technical Advisor
Editor-In-Chief & Content Coordinator Keneshia Nooks – JBDC Corporate Communications Unit Assistant Content Coordinator Sancia Campbell – JBDC Corporate Communications Unit Design & Layout Melissa Green – JBDC Visual Communications Unit Photography Colin Porter – Technical Services Unit
Successful business planning I am very excited to greet you in this the final issue of our Business Dialogue Magazine for the fiscal year 2014/2015. It has indeed been a busy but exciting period for the JBDC team and no doubt for entrepreneurs all across Jamaica. As you may recall, JBDC launched the Ministry led, Mobile Business Clinic Initiative in September 2014. The purpose of this initiative is to decentralize business development support to micro and small businesses across the length and breadth of Jamaica. So far just about 1000 micro and small entrepreneurs have been impacted by the services offered by our public and private sector partners. The initiative has been to St. James/Trelawny, Westmoreland, Hanover and Manchester. The clinic is scheduled to visit St. Elizabeth, Clarendon, St. Ann/St. Mary, St. Catherine, St. Thomas and Kingston and St. Andrew, respectively over the next few months. Having been on the road for the past few months, one of things that have been forcefully brought home to us is the importance of business planning. We have learnt that one of the main reasons why businesses, in particular, micro businesses fail is lack of proper business planning. The focus therefore of this issue of the Business Dialogue is therefore on this. Business planning is one of the most critical skills that every entrepreneur should acquire. It is important to note that a business plan is different from business planning. A business plan is is a guide—a roadmap for your business that outlines goals and details how you plan to achieve those goals while business planning refers to execution and the processes involved in executing that plan. We have zoned in on issues such as; the importance of a business plan, steps to successfully launching a business and facilitating small business success. We also look at the success of serial entrepreneur; Wayne Gallimore. Importantly, the JBDC’s 8th Annual Small Business Exposition and Conference takes place on May 21, 2015 at the Jamaica Pegasus Hotel. Under the theme “Business Linkages: Connecting Jamaica to the World”, the event promises to once again provide a platform for micro and small businesses to gain important business contacts as well as assist entrepreneurs with the necessary skills and processes to regularize their existing business functions. For the first time, we will introduce a featured dubbed “The Matchmaker” to the Expo. The purpose of this activity is to match local buyers to suppliers with a view to securing future business as well as to progress the Buy Jamaican campaign. Several speakers, both local and international will also be on hand to discuss important issues affecting our client group. The JBDC team, our sponsors and exhibitors look forward to your continued support in the effort to build successful businesses. Best, Valerie Veira, J.P. Chief Executive Officer
Keneshia Nooks is the Corporate Communications Manager at the Jamaica Business Development Corporation (JBDC), she has over 11 years experience in various marketing and communication techniques including advertising, media production, brand development, public relations, social marketing, market research and sponsorship. She has also coordinated publicity initiatives in the Caribbean, Europe and the United States for international music sensation OMI and Italian Reggae Singer, Alborosie.
Sancia Campbell is a PR Practitioner in the business and hospitality sectors with over 13 years experience in marketing, publicity and communications. An excellent writer and avid lifestyle blogger, Sancia enjoys reading, project management and events planning. She is currently the PR & Events Coordinator at the Jamaica Business Development Corporation (JBDC).
Althea West-Myers is a development strategist. She has spent the last seven years researching and adapting global strategies to our Jamaican business environment. Her work at JBDC involves finding innovative ways to assist MSMEs negotiate the variabilities of the sector in order to secure growth at the micro and macro levels. She is an adjunct lecturer in Entrepreneurship, Business Principles and Management, and Organizational Behaviour at Vector Technology Institute.
Marie Elizabeth Casserly, a graduate of UWI and the Jamaican Institute of Management, is a business and project development professional, specializing in branding, product development and marketing. Her career which spans some 30 years, includes close to a decade in management in the Jamaican private sector, she has focused primarily on the growth and development of enterprises, especially in the creative industries which she is extremely passionate.
Tax Adminstration Jamaica Development Bank of Jamaica ACCA Caribbean
BUSINESS & INNOVATION Facilitating successful small businesses: JBDC’s framework for MSME institutional support
BUSINESS & INNOVATION
Facilitating successful small businesses: JBDC’s framework for MSME institutional support By Althea West-Myers
CONTINUED
Crucial to successful strategy implementation is a responsive policy
Across the globe, and particularly in developing and transition economies,
them globally competitive; and sustainable business development
the Micro Small and Medium Enterprise (MSME) sector has been hailed as
methodologies are a national imperative.
framework, and whilst this is being addressed through the MSME policy
BD: What would be your 7 most important tips to share with aspiring/budding
the primary vehicle of poverty eradication and the engine of economic
document, the JBDC has been at work engaging the private and
entrepreneurs - your Super Seven?
growth. This critical role that the MSME sector will need to play in bringing
As the government’s agency with the mandate to facilitate and support
public sectors in creating an environment conducive to MSME business
WG:
developing countries to the stage of global competitiveness has been
small business development, the Jamaica Business Development
development. The results of these efforts have underscored the value
1. Get a very good understanding of the market you want to enter.
much documented, both in mainstream literature and in scholarly articles
Corporation (JBDC) has made its mission congruent to the development
of building networking relationships as a means of creating impact for
2. Learn strategic planning, governance and sales skills.
on the subject. In addition, there is growing evidence to suggest a causal
policies that foster sustainable modernization and growth in the
small businesses. Through partnerships with major universities,
3. Hire or partner with a brilliant and complementary team making sure you
relationship between entrepreneurship, economic growth and poverty
productive sector, effect modernization of the business environment and
multi-lateral
have the needed knowledge and execution ability.
reduction. It is not surprising, therefore, that the establishment and
pursue cost-effective delivery of technical and marketing services. With a
commerce, private consultancies and big businesses, the JBDC has
4. Put your customers’ needs first and build trusting relationships with all
promotion of the MSME sector has assumed strategic importance across
business development model that is comparatively superior to many
been effective in seeking to change the profile of the Jamaican
stakeholders.
the world, and especially so in emerging and developing economies.
utilized in other jurisdictions, the JBDC has the capacity to assist the sector
entrepreneur; increasing the size of its audience, securing funding,
5. Discipline and focus are critical.
extending the reach and impact of its clients, and generally increasing
6. Know your numbers.
The Global Entrepreneurial Monitor’s (2011) citing of Jamaica as the
Jamaica’s position as a transitioning economy, perched precariously
its own impact and visibility.
7. Provide great value.
country with the third highest level of early stage entrepreneurial activity is
between the global demands of the new knowledge economy on the
important for at least two reasons: (i) it provides empirical evidence of
one hand, and the wide-ranging diversities and complexities of the MSME
It is this platform of networking success that has propelled JBDC into the
Since his initial start-up in 1986, Wayne has been responsible for starting a series
Jamaicans’ natural inclination towards entrepreneurship (ii) it highlights
sector, on the other, only increases the challenge for the JBDC. The
fore-front of the effort to create industry networks and clusters among
of new businesses covering a range of industries. This ICT maverick possesses
the fact that Jamaica’s prevalence rate (businesses that have paid
agency is therefore faced with the task of finding strategies to counteract
small businesses as a means of helping them to secure needed
intrepid sales skills and a passion to start the next “Big Thing”. After CCL, he
wages for more than forty-two months) has remained constant at one per
the potentially attenuating effect of these challenges on its mission of
economies of scale and scope. The methodology has worked to
started Today’s Office Products, which had a similar focus to his initial start-up,
cent for several years. Juxtaposed against each other, the two points
MSME business development.
increase competitiveness among individuals and within industries alike
and shortly afterwards married his passion for collecting Jamaican art with his
paint a curious picture. On the one hand, our people are naturally
and continues to work to attract funding to these sectors. However,
technology know-how, to take Jamaican art to the world with Jamagination
entrepreneurial, but on the other this natural penchant does not translate
Rising to these challenges has meant that the JBDC has had to leverage
while much has been accomplished, much is still ‘a work in progress’.
Limited. The company established licensing arrangements with Jamaican
into sustainable businesses.
its familiarity with the peculiarities of the Jamaican culture, its knowledge
The Corporation remains focused on convincing potential stakeholders
artists to produce giclees (prints on canvas) of select works, increasing their
of the viability of some ‘un-proven’ methods. One such is the
visibility and distribution while creating a market niche for more affordable
Any attempt to answer the questions which obviously arise must consider
in respect to model adaptation and its own expertise as business
simultaneous provision of financial and non-financial services. Many
Jamaican art. Alongside Jamagination was Magnets & Things Jamaica
the following factors:
development practitioners to adapt and craft a business development
have argued against it, but convincing evidence suggests that the
Limited, which was the first company in Jamaica to manufacture full colour,
(i) Despite our good showing in the global entrepreneurship monitor (GEM)
model that has been extremely effective. This involves recognition that
existing framework of non-financial support is having benefit in
photo quality refrigerator magnets and stickers. The company secured rights
report, Jamaican entrepreneurs have been shown to be primarily
sustainable development of MSMEs requires a cross-cutting strategy that
un-locking capital and working to create a more secure credit
from the likes of Bob Marley Foundation, Red Stripe, photographer Ray Chen
necessity driven rather than opportunity driven
touches many areas. For example, government’s ability to implement
environment.
and Waves to use their IP/images. Magnets and Things (M&T) produced
(ii) In the global age of the ‘knowledge’ entrepreneur, studies have shown
sound macro-economic policies, the capability of stakeholders to
novelties that were targeted primarily towards tourists but also created
that levels of awareness amongst Jamaican MSMEs (whether this be
develop a conducive macro-economic business environment through
As national small business network brokers and business development
advertising speciality items for corporate use. Wayne shared that their secret
about management practices, product development or simply
simplified legal and regulatory frameworks, good governance, abundant
practitioners, the JBDC is fully cognizant of the global context in which
process, at that time, allowed M&T to produce even low volume runs at highly
awareness of the amenities that are available to be used to their
and accessible financing, suitable infrastructure, supportive education
we operate and measures being undertaken by other (similar)
economical prices. In addition to starting Southwind Trading Jamaica Limited,
advantage) are extremely low.
systems as well as capable public and private institutions that enhance
transition economies. The business development strategies being led
a company which distributed wines from South America, the entrepreneur
(iii) High levels of informality (especially among MSMEs) and low
the ability of MSMEs to implement competitive operating practices and
by the JBDC are similar (and superior in some contexts) to those being
co-founded DPK Business Solutions Limited, an Interactive Voice
productivity levels plague the sector.
business strategies.
undertaken by other developing and developed nations. Sustainable
Response-based (censored) Match-Making System which operated in
development requires that emerging economies like Jamaica ensure
collaboration with the Gleaner, Digicel and Cable and Wireless (now LIME).
Obviously, Jamaica’s ability to reap the fruits of its high levels of
In order to meet all the needs of the sector, development support has to
entrepreneurial activity has been severely impacted by its large informal
be four-pronged. It must include business, technical, specialized
agencies,
government
agencies,
chambers
of
the MSME policies that have been used most successfully across the
in realizing its full potential of driving the Jamaican economy. However,
of business development models used across the globe, the lessons learnt
globe are adapted to the peculiarities of our culture and business
Wayne Gallimore, the consummate entrepreneur is currently a co-partner in
economy. As yet, we have not as a nation been able to effectively bridge
marketing and financial support. Because of the sector’s variability,
environment, inculcated, integrated into the delivery of business
two businesses which he co-founded: Durastone Jamaica Limited in
the gap between the formal and informal economies. With current
development support must be capable of guiding the entrepreneur
development services and a cohesive strategic plan of action set up
Manchester manufacturing building finishes and Eco-san Caribbean in
estimates putting the informal economy at over forty per cent of the
through the sometimes precarious phases of growth, from concept to
to create an environment conducive to the long-term growth and
Kingston, producing green and environmentally friendly cleaning solutions,
sector, two things become clear: Jamaica must leverage its people’s
market. This is the predication on which the JBDC has successfully built its
development of the MSME sector in the country. Indeed, the JBDC has
waste water treatments and insecticides. Business Dialogue will make sure to
pre-disposition to entrepreneurship, create formal enterprises, and make
business development model.
shown that it is equal to the task.
keep you posted on his next move!
24
Continued on pg. 21
5
1-888-NCB-FIRST | www.jncb.com
THE
SPOTLIGHT
INSIDE THE MIND OF A SERIAL ENTREPRENEUR: A CONVERSATION By Marie Elizabeth Casserly
BD: What was your first deal or business? WG: After moving back to Jamaica and working for 2 years, my first registered business was Computer Components (Jamaica) Limited (CCL). It was formed in December 1986 and I believe it was the first wholesaler per se of computer equipment, parts and supplies in Jamaica. BD: How do you keep motivated? WG: I love to creatively solve problems, make customers happy, negotiate deals, sell and innovate. I also enjoy the process and challenges from
I took a leap of faith…
conception of the business idea to start up. BD: How do you deal with the risk? WG: As best as possible I try to identify it and assess it. If it is beyond my comfort level I try to consider all possible ways to reduce or mitigate it. If I can't, then I take a pass.
...and my partner NCB took that leap with me. They have stuck with me and helped me grow my business and put my Best LIFE Forward.
Wayne Gallimore, Jamaican Entrepreneur at a Caribbean Week event in Toronto, promoting Jamagination Wayne Gallimore, born in Jamaica, left his island home with his parents and three sisters for Canada at the age of nine. He completed his primary and secondary education there and on the attainment of his degree from York University returned to Jamaica in 1984 to find employment. In short order he became a business owner and a serial entrepreneur and in the midst of this secured a Masters Degree in Psychology from the Caribbean Graduate School of Theology.
He shares his story and a few insights with Business Dialogue. BD: What made you become an entrepreneur? WG: I learned at age nine that I had the power to earn more than the "pocket money" my parents gave me by getting a paper route in an apartment building near to my home in Toronto. In my early teens and into my early 20s, while still in Toronto and living with my parents, I progressively sought more and more financial independence from them. Hence I bought and resold Christmas cards, I rented a “Simonizer” and waxed my neighbours’ cars, cut lawns, painted homes, bought and resold bicycles, motor bikes and cars. I did this while also working summers and part-time during high school and while pursuing my undergraduate studies. I never really developed the desire, or expectation of myself, to be a long-term employee. BD: How did you decide which business you would start? WG: From perceived opportunities. For instance, problems begging to be solved or identifiable gaps in the market that are compatible with my values and fit with NCB Capital Markets Limited | NCB Insurance Company Limited Advantage General Insurance Company Limited | NCB Global Finance Limited | NCB Foundation
my interests or expertise.
BD: ...and failure? WG: I am always seeking to learn and grow. So when I fall I pick myself up, brush my tail off, consider the lesson learned from the experience, which usually includes good that should be repeated and bad that should be eliminated. BD: How do you stay ahead of the competition especially in a challenging economy? WG: By making the effort to figure out how to be of the greatest value to my customers, as times and their needs change. BD: Do/did you have any role models and mentors? WG: My godfather Rev. Dr. Alton A. Davis (now deceased) who among other things was an entrepreneur, inventor, business consultant, educator, historian and philanthropist. I also try to learn from the strengths of people whom I encounter on a daily basis. BD: What can't you live without when you face your business each day? What are your essentials? WG: The hope and trust in God derived from my Christian faith; and integrity in my relationships with God, self and others. BD: Knowing yourself as both a business manager and an entrepreneur, what would you say are the key attributes which distinguish these roles? WG: Being a good business manager involves the competent execution of functions important to the successful operation of a business. Being an entrepreneur requires these abilities and more. Entrepreneurs must have an idea or a vision, strong (pioneering) leadership, a risk taking propensity and the ability to figure things out and make things happen... without a boss directing them to do them.
Good advisers and a great team however are essential to
entrepreneurial success.
23
BUSINESS & INNOVATION Do you really need a
Innovation that excites
By Keera Walters
NISSAN
X-TRAIL
Business planning is an integral part of the theory and practice of business.
The first benefit to documenting plans for your business is that it immediately
• Robust Capability
There is no MBA program or entrepreneurial course available that does not
releases processing space by getting your ideas out of your head and in black
• Family Proof Interior
include business planning as a component. Even students at the CSEC level are
and white. Secondly, it forces you to think through your ideas in detail. When
• Seriously Stylish
exposed to and required to learn the elements of business planning. The virtues
you ink it, you can critically assess each idea, ensuring that the why’s, and
of this business process have long been espoused and many agree they
how’s are answered.
remain valid today, however in recent years there has been questioning of the
Other reasons are:
necessity of the process in the ‘real world’. The discussion involves participants
• It helps you to create a vision for your business; a roadmap for your aspirations
from academia to the shop floor and the debate is ongoing: do you really
• It forces you to set goals which can be used to measure your progress
need a business plan?
periodically
READY OR NOT.
• It forces you to look at how you will get things done from operations to goal Many successful entrepreneurs have been said to start their businesses without
attainment strategies
a formal business plan. In fact, one study done in 2006 by William Bygrave of
• It helps you identify needed resources and allows you to scale your plans
Babson College found that there was no difference in the success rate for
appropriately
Babson Business School graduates who started a business with a business plan
• It requires you to become an expert in your business as well as the industry you
and those who started without one. But before concluding that a business plan
operate in, through the process of studying your customers, competitors,
is a complete waste of time let us take a look at some of the benefits of
suppliers etc
engaging the process.
• It helps you to identify and prepare for opportunities and mitigate threats before they arise
THE ALL-NEW 2015 NISSAN
Robust capability
From the perspective of one offering business development support to
• Reduces real time decision making because though you cannot plan for
entrepreneurs on a daily basis, I have the benefit of a dynamic view point. The
every possibility, just having a plan creates a guide for how to navigate your
most common reason individuals approach us at the Jamaica Business
environment.
Development Corporation (JBDC) to develop and document a business plan,
No more compromises! Combining smart urban design and offroader toughness, the new Nissan X-trail is both dynamic and elegant. From its sculpted lines to streamlined curves, it is designed
is to seek funding for a new or existing venture. The next reason is usually to help
The study done by Bygrave also found that just understanding the process of
the entrepreneur develop a strategy for executing their business idea. Of the
business planning increased the likelihood that a person would actually start a
two motives, the latter is more significant, though not always immediately
business, even if a plan was not documented. At JBDC, clients are fully
appreciated by those with the former. It is a better motive not only because it
engaged in drafting their business plans and they are usually surprised at the
meets both objectives, (to access funding and guide implementation) but it is
to adventure in style and get the most from every journey. Ready
level of insight gained from the process. So from my experience, I would
the motive more likely to have the entrepreneur’s full involvement in the
conclude that business planning is a necessity. Even if you start off without a
or not, the X-Trail is here to take you on an adventure!
process.
written document, having an understanding of the pillars for any business’ success such as, markets, operations and finance will guide your preparation
And why is that important? Well, many of those business plans that are written
for the business. Also, a written document becomes essential as you grow and
specifically to seek investment never even get read by the owners whose
look towards expansion; especially with access to funding being identified as
business they were prepared for. The document gets shelved or filed away as
the most common challenge facing Jamaican entrepreneurs, the need for a
soon as funds are secured. This is unfortunate because the successfully drafted
plan is even more essential.
plan satisfies the investor that the owners have a feasible idea with good
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strategies to support its implementation but the entrepreneur may only be
Though the plan is definitely a ‘must do’ the trend today is towards simple,
superficially aware of the contents therein. Thus, they are unable to use it as a
succinct plans that are strategically sound, yet easy to read. I strongly
guide for the business, and this could result in inauspicious consequences. This
recommend that each entrepreneur go through the process of writing his/her
does not mean that the business plan guarantees success but there is
business plan, even in rough draft before taking it to an expert for formal
significant value to be had from engaging in the process.
construction. It will be worth your while.
7
BUSINESS & INNOVATION
Just Imagine...
Elements of a successful business plan By Sancia Campbell
explains the competitive advantages that will make
Any good business idea should originate from an equally
An advanced PBX telephone solution designed to increase your business’ efficiency and productivity
good business plan. The concept of the business plan is
the business a success. These include elements such
that it should give a full description of the business,
as location, expert personnel, efficient operations and the ability to bring value to customers.
outline the features, attributes and benefits of the
Organizational & Management Plan
product or products it is offering, identify and analyze the target market and the accompanying promotional
The organizational and management structure in a
plans to reach this market as well as the financial
business plan covers several areas. It must include the
requirements for both start-up and future growth of the
location of the organization and describe the area in
business.
which it operates i.e. home country versus international locations. The plan must also introduce a structure of
Now, there are those ‘entrepreneurs’ who will try to diminish the importance of ADVANCED CALLING FEATURES INCLUDED
your organization, present professional experience and achievements of
the business plan by pointing to their ability to start and maintain a business over
people who are to manage the business. An employment plan for the next few
a period, however, without that roadmap providing a sense of direction,
years must also be presented. This should cover:
outlining achievable goals and some type of vision, the business may record very
- How many people are to be hired?
little growth. Importantly, a solid business plan does not guarantee success but
- What are the skills sets being sought?
for entrepreneurs with lucrative ideas, it can boost the odds.
- In what capacity will these persons be hired? - Where had the members of the team worked previously?
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There are seven major elements of a business plan: executive summary, market
- How much experience in this or other industry do your colleagues have?
analysis, company overview, organizational and management plan, marketing
- Is their previous experience relevant to your business/industry?
and sales strategies, service or product line and the financials.
Executive Summary
This element is the life of your business. Marketing creates customers and
The executive summary should tell the reader exactly what you want. It should
customers generate sales. In this section, define your marketing strategies. Start
be kept short and professional, similar to the summary of a loan application.
with strategies, tactics and channels that you have used to create your greatest
Within that space, a synopsis of the entire business plan should be provided.
successes. Next, branch out to others that may be working for your competitors.
Other key elements to be included are the business concept, financial
Remember that this section will be constantly updated based on your results.
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business to date.
Product or Service The product or service your business will provide should be defined as best as
Market Analysis
possible. Ensure that you highlight the features, attributes and benefits of this
This section should illustrate knowledge about the particular industry of your
product or service. Establish your unique selling proposition (USP). This means
business. A market analysis forces the entrepreneur to become familiar with all
you have to show not only how your product is different but also why it is better.
aspects of the market so that the target market can be defined and the company can be positioned in order to collect its share of sales. A market
Financials
analysis also enables the entrepreneur to establish pricing, distribution and
The placement of this element in no way negates its importance. In fact without
marketing strategies that will allow the company to become profitable within a
financing, a business remains just an idea. The financial plan must indicate how
competitive environment. In addition, it gives an indication of the growth
the business will be capitalized, whether it is through self-funding or commercial
potential within the industry. Begin the market analysis by defining the market in
loans. Clearly state the amount of funding required for starting and expanding
terms of size, structure, growth prospects, trends and sales potential.
the business. Very importantly, be realistic.
Company Description
The most important note however, is that the business plan is meant to be
This section describes the nature of the business and lists the needs that are to
revised periodically. Writing it once and placing it in a file does nothing for the
be satisfied. It further explains how the products and services to be provided will
business. Rework and rewrite the plan to ensure the growth and continued
meet consumer needs.
development of your business.
The company description also lists the specific
consumers, organizations and businesses that the business will serve and
9
TECHNOLOGY Acting Columbus boss targets even better customer service BY TANIKIE McCLARTHY CBS Times writer
Driving broadband rates down by almost 75 per cent remains a “significant” achievement of Columbus Communications since it began operating in Jamaica and the wider Caribbean 10 years ago. It is one of several feats that have brought a brought smile to the face of Acting Managing Director of Columbus Communications Grant Hume, in an interview with CBS Times. Hume, whose substantive role is Vice President for Sales at Columbus Business Solutions, also highlighted the improvement of speeds, as another major game changer in the telecommunications business inspired by the coming of Columbus Communications. These achievements, he said, disrupted the marketplace to the benefit of the consumer, bringing balance by making the other companies to do better. “Iron sharpens iron,” he stressed in putting forward his favourite maxim. “The existing players had to improve. Columbus is nimble, we are flexible, and we understand the customer and our competitors had better get their running shoes on.” Canadian Hume, a sales person by training, has extensive experience working overseas, including spending 18 years at world famous Xerox Corporation. He insists that Columbus will be better arising from the merger with LIME, as the company will be able to provide a wider breadth of service. “The holy grail of all telecommunications companies is quad play and we will be delivering that post integration. We have fibre regionally, and here in Jamaica we will offer more that mixes both our companies’ offerings into a single solution. This will give consumers and businesses – one place to access all your telecommunications needs and one place to obtain the best service and support. “The secret sauce for us is the mixture of the expertise of our employees and their love for this company. Most of our employees have seen this company grow within the last 10 years and they have been here through and contributed to that growth.” “If you look at the other organisations and the history of the ICT marketplace, not just in Jamaica, but in the Caribbean and Latin America, the focus on customers is paramount. Under the new combined company we are going to continue to make that a critical area of focus. Everything we are going to do will have the customer in mind… the new organisation is wired, designed for the best customer experience, residentially and commercially in Jamaica and the Caribbean,” he said of the upcoming merger between Columbus and LIME. Emphasizing that there will be a major push for improving customer service in coming days, Hume underlined that this move is one that
has him “most excited.” Customer service will only get better with the upcoming merger, which principals of the two organisations say should become reality within another month. Of the companies providing utilities to the public, LIME was rated number one for its customer service recently, while Columbus grabbed the number two spot. The survey was conducted by regulatory agency, the Office of Utilities Regulation. “It’s significant that the top two companies in customer service are now being united,” Hume said. As for jitters and anxiety that may have crept in as the merger approaches, Hume praised the Columbus staff for how they have faced the situation. “Anytime you go through an integration of two large organisations in is almost impossible to do so without impacting the staff. Our Team here at Columbus Communications Jamaica is going through this process with dignity and grace in the face of uncertainty which comes from the fact that we still have to work in a regulatory environment where the companies are operated separately and much of the pertinent details of the merger/integration cannot be shared. Our team members understand this and I can honestly say that we have not been able to share as much as we would like so that our Team members are as informed as they would like. “Considering that, I think our employees have held their heads up and focused on our customers better than anybody in any previous integration I have been part of. CBS is still making headway in the commercial market despite the period of transition,” he said. “ CBS is still winning on business and Flow with residential service.” Describing himself as one who has been to the Promised Land, Hume said that the idea of focusing on the customer excites him. “It’s one thing to have a passion to focus on the customer, but if your organisation is not designed to do it, then it breaks down somewhere. This new organisation is designed from the ground up to make the customer experience one that is different from any that we currently have. “Recognising the role our employees play in delivering this high service level, the new organization is also heavily focused on the employees. I have personally spoken to about 115 of Columbus’ 600 employees since ascending to this new role on Friday. Those conversations have reinvigorated my belief in our employees, because once we got past just updating the communication and the integration, about 90 per cent of the questions were centred on ‘how do I serve my customers better’? and ‘what can we do to improve the services and stay in front of the competitors’. All the employees are now focused on ‘how do I do my job better’, and that’s what makes our place different,” Hume said.
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FINANCE
Culture and Channelling Corporate Behaviour – is the bottom line with the Boardroom?
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By Brenda Lee Tang, head of ACCA Caribbean
The boardroom of the 21st century plays a critical role in setting the ethical
The report lists seven points for consideration by the board, serving as a starting
compass of its organization. This was the simple and assertive statement made
point for assessment and possible change:
in a new report from ACCA (Association of Chartered Certified Accountants)
BUSINESS & INNOVATION
5 steps to a successful business launch By Keneshia Nooks
So you have been toiling with an idea for some time now. You have written down your vision (or business plan), changed it to fit with the times and included some adjustments based on how your potential competitors operate. And yes, you have even included some of the suggestions from you harshest critics and even the ones
and the Economic and Social Research Council (ESRC), called Culture and
1. Align and embed core values at the very top
who think you are out of your mind to even attempt such a venture. Whether you
Channelling Corporate Behaviour.
Do people who do not act in accordance with the company’s stated values
are an entrepreneur already or still getting there, nothing should stop you from
get promoted? Do management practices drive people to do things that they
going after your vision.
The report stressed that boards are also critical to help company’s avoid the sort
regard as unethical? Successful business leaders don’t go to work everyday expecting things to happen
of dysfunctional behaviour that can cause accidents, undermine an organisation’s values or create financial and reputational loss.
2. Watch out for the trickle-down effect and dynamics in groups What can prevent the tone set at the top from effectively trickling down
Based on a series of roundtable discussions and a survey of ACCA members, the
through the various levels of an organization?
report advises that when assessing their organisation’s culture, boards should ask themselves three fundamental questions, which are seen as basic good
3. Track how decisions are being made
corporate governance:
How aware are decision-making groups, from board level downwards, of the
What are the goals and purposes of the organization?
by chance, awaiting the thrill of the unknown; they have a plan and go after it, fixing and perfecting as they go along. There are great benefits to careful planning and likewise great disasters that can result from failure to plan.
Go beyond the business plan. Planning carefully before launching the business should not be limited to preparing
challenge encouraged?
your business plan. The business plan preparation is an important and valuable exercise but there are other ways to plan according to entrepreneurship experts.
4. Be honest about the value of regulation and codes
Clinical professor of management and director of the Entrepreneurship Lab at
What attitude to regulation should an organization have? Does it want to
Pace University in New York City, Bruce Bachenheimer recommend three (3)
We know that an organization can have the most sophisticated code of
support and work with the spirit and the letter of codes or does it see regulation
methods:
governance and rules, but as recent high profile scandals have shown, poor
as something to be avoided or exploited for its customers’ interests or its own
organisational culture has been a significant cause of corporate wrong doing.
sake?
How is the tone at the top set out and conveyed through the organization?
– especially what kind of culture do you want in your organisation?
5. Beware of unintended consequences attached to any incentive structure
The report lists a number of trade-offs that need to be balanced by the
Is it understood how incentives (deliberately created or not) work in practice?
boardroom and by staff; is there openness to mistakes, or zero tolerance? Is the
Can the board identify better measures that properly reflect the long-term aims
organisation innovative, or controlled? Does profit rule, or public value matter
of the organization and use them in better ways so they do not get ‘gamed’?
more? Assessing culture can be difficult because it calls upon a brand new set of skills and requires a multidisciplinary approach. But what we hope with this report is that it will help boards and staffs avoid some of the potential dangers and helps
6. Find out what motivates people Are incentive structures in place actually fit for purpose? Do they promote long-term sustainable performance or do they encourage immediate self-gain only?
accountant can make a real difference. Trained to evaluate and measure, the accountant needs to be attuned to ensuring that values can be measured and reported internally and externally – after all, what can be measured can be managed, and the accountant is of course adept at ensuring the bottom line adds up.
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specialized niche markets. Many business owners spend years working in the respective industry, allowing them to gain confidence in the field and develop long-term partnerships with potential partners, suppliers and investors.
Understand your future customer. Since your customers will invariably determine the success or failure of your business, you must take the time to know them inside out. Have a clear definition of your target customer, how they make their purchasing decisions and what drives these decisions. It is also important to find out what you can do to differentiate your offer from that of your competitor and how you will convince them of the value in taking your offer. The answers to these questions will come only from testing the market. Understanding your future customer before you launch the business is a critical part of your planning process. Once you have launched the business you will be too consumed with its operation, giving you little time to think or make adjustments. Therefore, understand your customer before you launch the business.
network with industry experts and get on the ground! The Hired-Gun Approach: Partnering with experts who have in-depth knowledge and experience. The Ultra-Lean School of Hard Knocks Tactic: Figure out a way to rapidly test and refine your model at a very reasonable cost.
Research and test your idea. Sixty per cent of new businesses fail within the first three years and this is often attributed to a lack of research. Too often, people rush into business without carefully testing the idea to see if it will work. Research is essential. Get the views and opinions of people who may be your potential customers and where possible, test you ideas on the same target group. You may also consider using the
them on their journey towards evaluating and improving the culture within their organization. For ACCA, this is where the skills and abilities of the professional
The Apprentice Model: Gaining direct industry experience, as many successful entrepreneurs have done. Work in the field you are aspiring to start a business,
To design a system that works, we believe it is important to ask the right questions
metrics of your market, whether inventory turnover or obscure measures in highly
Before launching your business, here are five steps to ensure a successful start:
risks of cognitive bias and group thinking? How is diversity of thinking and What sort of behaviours do they wish to encourage and discourage?
entrepreneur indicated that it is also important to really understand the critical
7. Anticipate trends Is the organization open to new creative ways of thinking or is it constrained by a fear of the uncertain? How aware of global market trends are management and human resources staff?
opportunity to determine price structure and how to reach your potential
These may seem like lots of questions, but they are the right ones to ask. The detailed report can be found at www.accaglobal.com/culture.
experience in your field to help you learn more about your market inside and out.
consumers.
Know the market. Don’t be afraid to ask questions, conduct your own studies or gain practical This includes identifying suppliers, distributors, competitors and customers. One
Choose the right business structure. Choosing the most appropriate corporate structure from the beginning is crucial and can have legal and tax implications depending on your decisions. The structure you choose can also ensure the success of future decisions such as raising capital or exiting the business. In Jamaica, there are two basic structures to choose from: - A Company: a commercial enterprise registered or incorporated under the companies Act. A company can either be non-profit (e.g. charity, club, NGO) or profit generating. - A Business: a sole trader or partnership registered under the Business Names Act. - For more information about choosing the right business structure, contact the Companies Office of Jamaica (www.orcjamaica.com). Finally, it would be remiss not to remind you that Rome was not built in a day. As an entrepreneur you have to be open to taking action daily, doing one thing at a time and expanding your faith with expectancy! Your efforts will soon pay off.
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FINANCE
Why is a business plan necessary for the loan process? By Joan Lawrence (Strategic Services Department, Development Bank of Jamaica)
A business plan is a written description of your business's future. That's all there is to
Start-ups - The classic business plan writer is an entrepreneur seeking funds to help
it - a document that describes what you plan to do and how you plan to do it.
start a new venture. Most companies had their starts-ups on paper, in the form of
Business plans can help perform a number of tasks for those who write and read
a plan that was used to convince investors to put up the capital necessary to get
them. They are used by entrepreneurs seeking investment to convey their vision
them under way.
to potential investors. They may also be used by firms that are trying to attract key employees, prospect for new business, deal with suppliers or simply to understand
It is not only cash-starved startups who need business plans. Business owners find
how to manage their companies better.
plans useful at all stages of their companies' existence whether they are seeking financing or trying to figure out how to invest a surplus (diversify).
The business plan conveys your business goals, the strategies you will use to meet them, potential problems that may confront your business and ways to solve
Established firms seeking help - Not all business plans are written by ‘starry-eyed’
them, the organizational structure of your business (including titles and
entrepreneurs. Many are written by and for companies that are long past the
responsibilities) and, finally, the amount of capital required to finance your
startup stage. These growth-stage enterprises may draft plans to help them find
venture and keep it going until it breaks even.
funding for growth just as the startups do, although the amounts they seek may be larger and the investors more willing.
Who Needs a Business Plan?
Contrary to popular belief, a business plan isn't just there to help you secure investment - it also gives you a place to map exactly how you want to run your
The only person who does not need a business plan is one who is not going into
business, what your goals are, and how you will achieve.
business. You do not need a plan to start a hobby or for your sale of perfume as a side business. But anybody beginning or extending a business venture that will take up significant resources of money, energy or time, and that is expected to return a profit should take the time to draft a plan.
Funding your plan When an entrepreneur approaches a bank to fund a business it is important for the business banker to understand all about the business which is being contemplated by the client. A business plan is one of the documents which will give the banker the information he needs to make a decision whether or not to grant the loan. This loan may be from a commercial bank or a special developmental loan which is offered by the Development Bank of Jamaica (DBJ). Either way the plan is crucial to the loan process, as the banking officer will look at the feasibility of the venture as well as how much cash flow will be generated on a monthly or quarterly basis to repay the loan. Small and medium-sized enterprises (SMEs) not able to provide this plan to a business banker, may receive help in the form of a grant called the Voucher for Technical Assistance. This voucher will assist in paying up to 70% of the cost of a business plan and other relevant services required by SMEs to convince the banker that they are (or will be) operating a sound business.
For more information about the Voucher for Technical Assistance grant and how this product can assist SMEs in developing a business plan, contact the Development Bank of Jamaica at 929-4000 or email jlawrence@dbankjm.com .
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Mobile Business Clinic Highlights Hanover
Tax Tips Taxes and taxation are often received with mixed emotions. Historically, taxes have been met with much rebellion and unrest, patriotism, war and voluntary compliance. Did you know that French tax collectors were sent to the guillotine in 1789?
Filing your taxes is an important part of successful business planning. Here are a few useful tips from the Tax Administration of Jamaica (TAJ):
Know due dates It is important that persons operating a business, whether as a company,
St. James
partnership or self-employed person, know the various dates when the respective returns are to be filed and payments made. Being late can be costly, as interest and penalty may be applicable.
It pays to be compliant Employers who file and pay over their monthly statutory deductions – S01, on time, may benefit from an Employment Tax Credit. This may be applied against their income tax liability, thereby reducing their effective tax rate possibly as low as 17.5%.
St. James
File return even if you have a loss All businesses, whether operated as an individual, partnership or company, are required to file a tax return even if the business makes a loss. In fact it is in your interest to report the loss, as currently the law allows for business losses to be carried forward indefinitely. This may be used to off-set future profit.
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BUSINESS & INNOVATION JBDC pilots implementation of US SBDC model By Althea West-Myers
Small Business Development Centres are the main source of
include payment of salaries), crucial research information to back
• International Trade
technical and managerial assistance for micro and small businesses
business decision-making, primarily for small business owners.
• Human Resource and Organizational Growth
The pilot will run for one year. During this period, JBDC is tasked with
• Suppliers and Production Chain contracting
the responsibility of providing capacity building and guidance
in the United States (US). The concept began over 35 years ago as a project to lend impetus to small business development capacity.
The model has been introduced in Latin America (Mexico, El
• Disaster Preparation and Recovery
through a ‘road to SBDC readiness’ programme to other potential
Their mission is to promote MSME growth, innovation, productivity
Salvador and Chile) with relative success in recent years. The
• SME Policy Advocacy
SBDC operators. Simultaneously, JBDC performance targets and
and revenue through improvements to their business administration.
programme aims to deliver the opportunities and benefits of
The services of SBDCs include long term one-on-one technical
international trade among the SMEs and SBDC networks linking the
It is easy to see the natural synergy between JBDC’s services and
and Commerce - the lead agency in the expansion programme. The
assistance, training, market research and advocacy. The primary
Americas. It is no surprise, therefore, that the Organization of
those provided by the US SBDCs. The model encapsulates the
Development Bank of Jamaica will serve as the project’s primary
focus of SBDCs is creating economic impact by assisting established
American States (OAS), which is the major project sponsor, is now
services offered by at least one department of JBDC – Business
funder in the pilot phase and as such is a crucial partner for this
MSMEs. Nonetheless, they provide assistance to start-up enterprises
making regional Caribbean participation a priority for the US and its
Advisory Services, and reflects similar methodologies and
implementation.
which currently form approximately forty per cent of their client
Latin America SBDC network allies. The OAS hopes to influence or
approaches to client intervention.
base. Importantly, SBDCs measure their performance by their ability
encourage regional governments to support and ultimately adopt
to help MSME clients generate economic impact by establishing
the model in their countries. In the Caribbean, Belize and St. Lucia
Indeed, adopting and adapting the model would not represent a
• Increased competitiveness for clients and SBDC
new businesses, creating and retaining jobs, increasing sales and
have adopted and launched SBDC programmes. The Jamaican
departure from JBDC’s core business or from the methods used in the
• Increased participation in the formal economy
increasing access to capital. The US network of Small Business
leg is being spearheaded by the Jamaica Business Development
provision of business development services. In fact, the programme
• A positive ROI for all program stakeholders
Development Centre comprises just over 1,100 centres and serves
Corporation (JBDC) and was launched on January 23, 2015. The
facilitates a systematic approach to data collection and impact
•
over 750,000 businesses annually. Currently the reach and impact of
ultimate aim is to create and link an Inter-American network of
measurement. As the primary means of government support to the
co-investment in the program
the existing network of SBDCs is significant and far-reaching. Of the
SBDC/CDMYPE (Central American version of SBDCs) programmes
MSME sector, the JBDC will now be in a better position to measure its
•
approximately 700,000 new businesses started in the United States
to leverage the talents, experience and available infrastructure to
impact on the sector and to track the growth of its clients –something
(www.SBDCglobal.com)
annually, forty per cent of them are assisted by SBDCs.
foment the SME sector development, trade, improved
the JBDC has, up to now, lacked the resources to do.
• Links with 750,000 businesses and with the 1,100 SBDC centres in the
success indicators will be set by the Ministry of Industry, Investment
The advantages of the model are varied and may include:
Access
to
SBDC’s
international
trade
platform
USA.
competitiveness and sustainable job creation. The SBDC model combines the resources of public and private
Elimination of duplication and inefficiency when there is
So what does piloting the implementation of SBDCs in Jamaica
• Access to the market intelligence system (www.sbdc.net) which
sector and institutions of higher learning. The model is driven by
The SBDC model is said to respond to SME needs throughout the
mean for JBDC? What will it look like in terms of the way we work?
provides geo-referenced statistics supporting market studies and
academia which is the primary information and capacity building
entrepreneurial life cycle. Its intervention services include:
Due to the similarities in the current offerings, there will be little, if any,
providing sales planning and marketing and export strategies.
source. The SBDCs are funded by the Federal Government’s Small
• Counselling
difference to the way we work. Involvement in the programme’s
Business Administration (SBA) with matching funds from state or local
• Management Training and Capacity Building
implementation has afforded JBDC access to NeoSerra, the
sources and these institutions of higher learning. Recommitment of
• Business Start-up and Formalization
web-based client relationship management (CRM) system, designed
We look forward to leveraging these advantages in building strong,
funding for the operations of a small business development centre is
• Viability Studies and Market Assessments
especially for the business development environment. Importantly,
sustainable businesses and creating significant impact on the sector.
contingent upon the centre’s performance. If the centre fails to
• Business Plans and Financial Forecasts
the adoption of the model has somewhat forced data collection at
Here’s to success in business!
meet the targets agreed with the SBA, it loses its funding and its
• Marketing and Sales
the macro and micro levels and reporting this information in terms of
operations disqualified. Most SBDCs in the US are housed on
• Capital Access (debt, seed and risk capital)
its economic impact on the country’s growth and development. This
University Campuses. The role of academia within the model is
• Technical Assistance and Research
will ultimately lead to greater levels of accountability and efficiency
crucial. University or College affiliation usually involves funding (to
• Innovation and Technology Commercialization
on the part of JBDC.
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