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A Complete Guidebook
RUSHBOY@2013
RUSHBOY Business Consultant@2013
"Verily, the Best of Men for you to Hire is the Strong, the Trustworthy" [Qur'an 28:26]
CONTENTS
Introduction
3
Business Analysis
4
Business Consulting Process
4
Business Plan Guide
6
Marketing Strategies
10
Small Business Strategies
17
Small Business Leadership
21
Successful Family Business
23
Internet Marketing Strategies
28
Franchise Assessment
32
Visionary Company Ideologies
36
Appendix
43
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Introduction
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Business Analysis
Business Consulting Process
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Business Plan Guide
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Marketing Strategies
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Small Business Strategies
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Small Business Leadership
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Succesful Family Business
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Internet Marketing Strategies
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Franchise Assessment
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BUILT TO LAST 1. CORE IDEOLOGY=CORE VALUE + PURPOSE Core Value= General Guiding Principles/ Global Belief Purpose=Reasons for existence 2.
3. VC=Premier institution + Widely admired + Indelible Imprint on the world + Multiple Gen of CEO+ Multiple product/service Life Cycles + 50+ Years Track Record
4. Visionary Company Myth: a. b. c. d. e. f. g.
Need a Great Idea? No Need. Slow Start-Win Long Race. Need Charismatic Leader? No Need. Reason Exist? More than Money. Correct Core Value? No Right or Wrong. Change? Preserve Core, Stimulate Progress. Blue Chip Play Safe? BHAGs. Great Places to work for everyone? Only Fit Core Ideology Stays. No Middle Ground. h. Best Moves by Complex Strategic Planning? By Experimentation, Trial & Error, Opportunism and…. Literally-ACCIDENT. i. Hire Outside CEO? Home Grown Better. j. Beating Competitor? Beating Themselves using Kaizen. k. Eat the Cake? Tyranny of the OR ≠ Genius of AND. l. Vision Statement? Doesn’t make them a VC. 5. Clock Builder Ultimate Creation=The Company itself. 6. Our CREDO: We Believe… 1st Responsibility 2nd Responsibility 3rd Responsibility 4th Responsibility 5th Responsibility
Anybody Who Use our Products, Services Those Who Work with Us Our Management Communities in which We Live Our Stockholders
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BHAGs=Big Hairy Audacious Goals; a. b. c. d. e.
So Clear > a Goal≠ Statement ≠ Leader > no need explanation Must Outside Comfort Zone So Bold & exiting in its own right Inherent Danger, avoid We’re Arrived syndrome, Need Follow on BHAGs Must be Consistent with DA Core Ideology
Cult Like Cultures=Stronger Indoctrination + Greater Tightness of Fit +Greater Elitism (Sense of superior belonging) Tangible Mechanisms=Core Ideology Implementations a. b. c. d. e. f.
Orientation program > teach values, norms, history and tradition Internal Universities > Ongoing Program On Job Socialization Rigorous Up-Through-The-Rank Policies >Hiring & shape Young Age Unique Language & terminology Corporate songs, cheers, affirmations, pledge to reinforce psychological commitment g. Tight Screening Process > During Hiring & 1st 3 years h. Awards, Contests & Public Recognition: Reward=Those play Great effort consistent with ideology Tangible/visible Penalties= Those who break ideology i.
Tolerance for Honest Mistakes : Non Sins Breaching the ideology: Sins : Penalties or Termination
j. Celebrations ≥ Reinforce successes, belonging & specialness k. Plant & Office Layout= Reinforce Norms & Ideals l. Constant Verbal & Written ≥ Corporate Values, heritage & sense of being part of something special
Try A lot of Stuff & Keep What Work=Corporations as Evolving Species = A Mutation Species = Branching & Pruning = Nice Idea; have change to prove its worth, if not Good > Insurance for impractical Survival of The Fittest: “Multiply, vary, let the strongest live and the weakest die” Multiply – Try Enough Experiments Vary – Different Types Let the Strongest Live – Keep the ones that work Let the Weakest Die - Discard the ones that don’t Evolutionary Progress Blueprint; a. “Give a Try and Quick!” – Vigorous Action b. “Accept that mistakes will be made” – Lots easier to learn for Failure than Success c. “Take small steps.” – easier to tolerate failed experiments d. “Give people the rooms they need” –
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#15% Rules – Encourage employee to spend 15% their time on their own initiative project #Own Business Opportunities – Employee get to runs his own project or division e. Mechanisms that build ticking clock!” # 25% Rule - 25% annual sales from new product after 5 year launched #Golden Step Award – Successful new business ventures (branching) #Genesis Grant – Venture Capital Fund for researcher to develop prototype and market test #New Product or Technical Forum – all divisions share their latest products & ideas #Problem Saving Missions -Sent small team to customer site #Autonomous Small Divisions & Units – spread across diff small town or states, to stimulate a “small company within a big company” feel. #Customer Service All Star- Employer of the month>New Business card> 33% discount #Sales Per Hour (SPH)- Set High Sales Goal per day> Exceed SPH> Get 10% commission on net sales ≠ only get basic hourly wages – Can track on Computer #Q1 Standard- Screen supplier base on quality rating #Dual Ladder = Technical + Management = Entrepreneur
Home Grown Management = Next Successor Strong Internal Leadership Candidates Good Enough Never is = Greater Long Term Investment New Property, plant & equipment Pay out less cash dividends to shareholder R&D Human Capital via 3R – Recruit, Retrain & Retain Technical Knowhow, New Tech, New Management Methods and innovative industry practices # Beat Yesterday Comfort Program
8. CEO Guideposts: a. Paint the whole picture - Great Work of Art = Need Overall Effect b. Sweat the Small Stuff - Emphasize on Details, each division operates with the psychology of autonomous, entrepreneurial business units. c. Cluster, Don’t Shotgun – Synergy & powerful combined punch between management & technical d. Swim in Your own Current, Even if swim against the Tide e. Correcting Misalignments f. Keep The Universal Requirements while Inventing New Method
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GOOD 2 GREAT FLYWHEEL
BREAKTHROUGH
BUILDUP… LEVEL 5 LEADEARSHIP
FIRST WHO… THEN WHAT
DISCIPLINED PEOPLE
CONFRONT THE BRUTAL FACTS
HEDGEHOG CONCEPT
DISCIPLINED THOUGHT
CULTURE OF DISCIPLINE
TECHNOLOGY ACCELERATORS
DISCIPLINED ACTION
1. Level 5 Leadership ≠ High profile leaders, big personalities or celebrities = Self effacing, quiet, reserved, even shy, blend of personal humility & professional will eg. Lincoln & Socrates than Patton or Caesar.
2. First Who… Then What ≠ Begin with new vision & strategy ≠ “People are your most important asset” =First, Right People on the bus, Wrong People off the bus, Then they figure out where to drive it not you! = “People are not your most important asset, the right people are”
3. Confront the Brutal Facts (Yet Never Lose Faith) ≠ Most book on corporate strategy = Stockdale Paradox-maintain unwavering faith tills the end AND same time, have discipline to confront most brutal fact of current reality.
4. Hedgehog Concept (Simplicity within 3 Circles) ≠ Years of core business-not necessarily be best at it = Must replaced with simple concept understanding 3 Circles
5. Culture of Discipline ≠ Only few company have ≠ Hierarchy + Bureaucracy + Excessive Controls = Culture of Discipline (People + Thought + Action) + Entrepreneurship = Magical Alchemy
6. Technology Accelerators ≠ Primary need to ignite transformation = Pioneers in application of carefully selected technologies
7. The Flywheel & Doom Loop Doom Loop = Single action, grand program, one killer innovation, lucky break Flywheel = Pushing in one direction-turn upon turn-momentum-breakthrough pointbeyond
Established/Start-up Company + G2G Concepts Sustained Great Results + B2L Concepts Enduring Great Company (Timeless)
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G2G Leaders LEVEL 5
Builds greatness-Paradoxical Blend= Personal Humility + Professional Will
Effective Leader LEVEL 4
Commitment pursuit clear vision-higher performance standards-(more selfegoistic )
Competent Manager Organize people & resources-effective & efficent- pursuit predetermined objectives
LEVEL 3
Contributing Team Member LEVEL 2
Contributes individual capabilities-to achieve group objectives-works effective with others
Highly Capable Individual LEVEL 1
Productive contributions-through talent, knowledge, skills & good work habits
HUMILITY + WILL = LEVEL 5 LEADERSHIP
Professional Will
Personal Humility
Superb results, Clear catalyst transition from G2G
Compelling modesty, shunning public adulation, never boastful
Unwavering faith, Best long term results, No matter how diff
Acts with quiet, calm determination, rely on inspired standard not inspiring charisma to motivate
Set standard enduring great company, will settle nothing less
Channel ambition to company not self, set up successors for next gen
Looks in the mirror when poor resultsnot blame people, internal factors
Look out the window when credit for success- to other people, external factor, good luck
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LEVEL 5+
MANAGEMENT TEAM
A GENIUS WITH A THOUSAND HELPERS
LEVEL 5 LEADER
LEVEL 4 LEADER
FIRST WHO
FIRST WHAT
Get right people on the bus. Build a superior executive team
Set vision where to drive. Develop road map.
THEN WHO
THEN WHAT They will drive it to greatness!
GREAT LIFE & COMPANIES(LOVEAFFAIR) Right people=People who loved you-Dont need to be there all hours
Enlist crew of highly capable "helpers" to make the vision happen
GREAT COMPANIES, NO LIFE! No great life coz cant balance. Wrong people-make you spend more time motivate them-Simply waste of time!
“Be Rigorous, not Ruthless” - Discipline #1: When in doubt, don’t hire…keep looking. A company should limit its growth base on its ability attract enough right people on the bus..
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Discipline #2: When you know you need to make a people change-ACT! Bipolar pattern in Top Management-People either Stay Long / Got Off Hurry. No Result=Give time-move them Max 3X Different Seat on the bus where they might blossom. Wrong People= Must Fired quickly off the bus-letting them hang around not fair for all right people. Waiting too Long to Fired them=Not fair to them coz you know they will not make it to the end! How to know to Fired? If off bus-would you hire again for 2nd time? (ask yourself before firing)
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Discipline #3: Put your Best People on your Biggest Opportunities not Biggest Problems…If you sell off your problems, don’t sell off your best people!
“It’s Who You Pay, Not How you Pay Them” -
Purpose of Compensation System is not to “motivate” the Right Behaviors from the Wrong people, but to get & keep the right people on the bus in the first place
“Weak Generals, Strong Lieutenants” –Breaking the Bank -
Weak general=Wait direction from above-Strong Lieutenants likely stick around Strong General=Competitor will leave
“No company can grow revenues consistently faster than its ability to get enough of the right people to implement that growth & still become a great company. If your growth rate in revenues consistently outpaces your growth rate in people, you simple will not-indeed cannot- build a great company” - Packard’s Law
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Charisma can be Liabilitycan deter people from bringing you the Brutal Facts. If ignore will DeMotivate the Right People
Either #1 or #2 in each market, or Exit!
CONFRONT THE BRUTAL FACTS (Yet Never Lose Faith) The Stockdale Paradox Retain faith that you will prevail in the end, regardless of difficulties
AND at the same time
Confront the most brutal facts of your current reality, whatever they might be
1. Lead with Question, not answer 2. Engage in dialogue & scientific debate, not coercion. Play role of Socratic Moderator 3. Conduct Autopsies, w/o Blame 4. Build “Red Flag” Mechanisms- information that cant be ignore
“Create Climate Where the Truth is Heard”
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Learn about the business Identify problems Identify future opportunities Perform analysis Provide solutions through a concrete plan Listen to feedback and adjust plan Implement and track the plan
Step One: Learning About
The Business
Tour the Company Facilities
Company's Competitive Advantages
Read all the Company Materials
Financial Track Record
Meet with Founders & All Key Employees
Banking & Finance Connections
Understand the Product or Service
Company Organized Quality Control
History of the Business & Track Record
Employee Incentives, Benefits & Wages
How the Business is Run
Meeting the Company's Advisors
How the Decisions are Made
Company Process & Trade Marks
Step Two: Indentifying Problems
Problems seen by Ownership
Identify Revenue Points for all products
Issues identified by the Business Consultant
Identify Expense Ratios for all products
Unrestricted Access to the Company so that problems can be identified
Understand Tax Implications
Problems seen by Management
Clear Communications: Trust is Vital
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Step Three: Indentifying Opportunities
Hidden Opportunity for every issues
Undertanding Margins
Opportunities seen by Ownership
Undertanding Sales History
Opportunities seen by Key Employees
Undertanding Sales Growth
Opportunities Discovered through Business Consultant's Process
Identifying New Products & Services
Step Four: Analysis Analyzes the Identified Problems
Identify Future Problems
Analyzes the Identified Opportunities
Identify Symptoms of Problems
Decides which Problems are Important and which Are Not
Decides which Opportunities are Important and which Are Not
Opportunities Discovered through Business Consultant's Process
Provide certain Conclusions & Facts
Step Five: Solutions Business Consultant provides a Plan which provides Solutions
Business Consultant Illustrates how certain Expenses can be Reduced
Business Consultant provides a Plan which Identifies Opportunities
Business Consultant Illustrates how certain Profit can be Maximized
Step Six: Feedback &
Adjust Plan
Business Consultant receives Feedback on the Proposed Business Plan
Plan is Re-Adjusted as Necessary Moving Forward
Business Consultant Oversees Implementation of the Business Plan
Business Consultant ensures Plan is Integral to the Company Mission & Vision
Business Consultant Tracks Progress of The Plan
Business Consultant ensures Plan is Intertwined into the Company's Culture
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