Leadership: When is it time for a change

You have taken the time to build something from the ground up, whether it’s your company or even a specific project that you have spent months on. You have formed every painstaking detail. And it’s just not working. Do you go for the big change? Or do you stick it out? Well, the answer to that question is both simple and complex. The simple version is, “it depends.” The complex version is, well… complex. There are many deciding factors in answering this question.

How many times have you sat through a team meeting where the boss was so excited about a new direction for the company that they just had to tell you and begin implementing before they even thought it through? And how many “pivot presentations” have you had to sit through with an overly thought out PowerPoint showcasing a new overall focus for the company… The third in the past month.

Change is inevitable in business. Customer needs and wants shift, and new competition will continuously push the boundaries of what you have created. However, change doesn’t have to be catastrophic, and it doesn’t have to set your team back.

The first thing you need to do is determine if a change is actually needed. If you are shifting focus constantly, you never really give your strategy a chance to develop, and you will likely lose the confidence of your team along the way.

Here are a few tips to help determine if a change will do you good… or bad.

#1 Missing a connection or a spark

Day to day operations is running like a well-oiled machine, which is great, but it is running so well, that it is void of personality, and in spite of output, you just aren’t connecting with your audience like you used to.

#2 Loss of purpose and passion

You have been slogging at it for a while now, and it’s become more about profit than the business. You are unhappy, and aren’t satisfied with anything that the business is doing. You’ve forgotten hat is your light at the end of the tunnel because you can no longer see that light.

#3 Your team feels undervalued

It’s great if your team works hard for you, but after a while, you stop caring about how the work gets done and more that it is just done. Your expectations are that your team should be putting in the long hours even though you don’t pay them very well, you always take the credit for the work they put out, and you really don’t care that they see you leave every day at 4.

#4 Business has plateaued and there is nowhere for the brand to grow

You know there is something bigger for the brand, but you just can’t get there with the current business model, whether it’s an audience that is too narrow, a stale product line, or you are limited by geography.

#5 You keep bringing up the good old days when the company was thriving and exciting

There is nothing wrong with celebrating where you have come from, but when that is the sole focus of your discussion because you can’t think of anything great to say about business now, then there is an issue.

#6 You are constantly lying about the status of your company or project to make it sound better

Every business owner or project manager will inevitably get the question “how’s business?” or “how’s the project going?” If you find that you are embellishing to make yourself look better constantly, you may have an issue.

#7 The team has no idea there even is a mission statement

When you build a business from the ground up, it’s important to know what you stand for. Along the way, it’s easy to forget some of the important things, or perhaps your new team members weren’t told.

#8 You feel you are settling

You know there is something better in store for the company or the project, but you either don’t know how to get there, what it is, or if it’s even possible, so you ignore the feeling. Ignoring that type of thing will only perpetuate the cycle.

Next week we’ll talk about how to approach change once you decide you need it. But for now, we’ll leave you with this.

15 things you need to know to write your business plan

A business plan is one of the most important things you will ever create for your business. As a start-up, it helps to outline your pathway to a sustained profit. As an established business, keeping your business plan up to date and revisiting it on a regular basis keeps you on track. Measure your achievements against the milestones you set out for yourself.

I have worked with clients both in the start-up phase as well as established businesses to develop their business plans. In both cases most don’t realize how much you need to prepare before you start so you can make sure you don’t miss anything.

Here are 15 things you need to know before you set out to write your business plan:

1. Be unique: Following a sample business plan is not usually in your best interest. There is nothing wrong with using it as a guide, but your business plan should be as unique as your business is. Just because it is a business document, doesn’t mean that it can’t tell a really exciting story. In fact, it should, but stay away from “marketing speak”.
2. An executive summary is necessary: Sometimes this is the only thing that investors will read before making an initial decision. It should be the last thing you write and it should SUMMARIZE EVERYTHING in your business plan in two pages or less.
3. Summarize what you do in one sentence: So many people get through an entire business plan and it is still unclear what exactly the purpose of the business is. If you start off by summarizing in one sentence, you can add detail from there.
4. Know your target audience(s): You should be able to talk about them as groups of people based on both demographics and psychographics.
5. Know your market: Do some research and see if you can find some good data to justify your entrance into the market.
6. Know how the market is segmented: How does your target audience fit into things? Are you limiting yourself with a really narrow scope? Are you trying to cast your net too wide?
7. Know your competition: Be realistic about this. If you are a small start-up, your direct competitor may not be a multi-national billion dollar organization. However, you can aspire to that!
8. Know your differentiators: What makes you sure you will succeed against your competition? Tell potential investors how you will stand out.
9. Create a financial forecast: Your financial plan should talk about the money you are going to make in the future. This is called financial forecasting. It is a pretty good idea to forecast 3-5 years to give everyone a sense of the growth you plan to achieve financially.
10. Charts and graphs are your best friends: A document that is just long blocks of text can be cumbersome to read. Break it up by creating visuals out of your text and data.
11. Images should have purpose: Putting an image in the document just for the sake of using an image is not a great idea. Make sure it’s there for a purpose, just like your business.
12. Include details: You can be detail oriented while still being concise. Make sure you cut out the fluff and fill the space with necessary information.
13. List your references: Any data or facts that you use throughout your business plan should be from a credible source and listed in the appendix. Your grandma may not be the most credible source to talk about what kids like these days, and the same goes for Wikipedia.
14. Don’t be afraid to hire an expert: Sometimes, an expert can give you insights into your business plan you may not have thought of.
15. Leave time for review: It is important to take the time to do a final review of your business plan before sending it anywhere. Even better is to have someone else read it for you and give you feedback.

In many cases, when creating a business plan I like to apply the Goldilocks principle to business. There is that sweet spot where you are at the right temperature and the bed is just soft enough. Your business plan, when you get it just right, is the narrative that will attract investors and consumers to your business.