Whenever I got in trouble in elementary school, it usually had something to do with dreaming. Apparently I spent too much time daydreaming, gazing out the window, cruising somewhere out there, light-years from the topics our instructors were diligently trying to teach.

I managed to get myself into enough hot water that I eventually came to view dreaming as a waste of valuable time and a negative thing. The culture I was born into insisted that I adopt a more mechanical, left-brained approach to life. And it appears that this was all facilitated with my best interests at heart. By the time I reached adulthood, I had buried my dreams deep inside.

I was in my late thirties when I found myself ensconced in a workshop participating in an activity that required me to write a list of my dreams. I was stumped! I looked around in amazement while others vigorously scribbled out their lengthy lists. I drew a blank.

I felt a tad sheepish. Furthermore, I realized that I had been subduing my dreams for a very long time.

How can a person live to be almost 40 years old and not have . . .Continue reading Everything Starts With a Dream]]> Everything starts with a dream!

Whenever I got in trouble in elementary school, it usually had something to do with dreaming. Apparently I spent too much time daydreaming, gazing out the window, cruising somewhere out there, light-years from the topics our instructors were diligently trying to teach.

I managed to get myself into enough hot water that I eventually came to view dreaming as a waste of valuable time and a negative thing. The culture I was born into insisted that I adopt a more mechanical, left-brained approach to life. And it appears that this was all facilitated with my best interests at heart. By the time I reached adulthood, I had buried my dreams deep inside.

I was in my late thirties when I found myself ensconced in a workshop participating in an activity that required me to write a list of my dreams. I was stumped! I looked around in amazement while others vigorously scribbled out their lengthy lists. I drew a blank.

I felt a tad sheepish. Furthermore, I realized that I had been subduing my dreams for a very long time.

How can a person live to be almost 40 years old and not have dreams? I was flabbergasted that I had somehow come from being a purebred practicing daydreamer to complete inertia. That experience, though painful at the time, was a pivotal point in my life. It was enough of a jolt to motivate me to revive my dreams. I now view dreaming as a critical skill and the fountain of life, not a flaw.

In his book, Lead The Field, Earl Nightingale states that our imagination is what separates us from all other forms of life. Imagination is a powerful tool that each of us has at our beck and call and what a tragedy to let it slip away unused. When it comes to our ability to use our imagination, it seems to be a clear a case of ‘use it or lose it’.

I determined to build my list of dreams again. It was like rekindling a fire. As I fanned the flame with more and more oxygen it grew, and one by one I began to remember the precious tiny elements of my passion. Over the following few months my list grew to 46 core dreams that continue to shape my life and give birth to my goals.

I want to introduce you to a simple goal setting system that works for me. What I am about to suggest is not cumbersome, nor does it need to be particularly time consuming. For a number of years I lugged around a hefty daytimer with detailed written daily goals and to-do lists. I’m sure my left arm was a couple of inches longer than my right from the sheer weight of that daytimer.

A couple of years ago I parked the daytimer at my desk and I now use it only for specific meetings and appointments. I still set goals and work toward those goals, but I spend a lot less time writing, re-writing, fiddling, stressing and micro-managing my goals.

Instead, I now do a major goal-setting session about this time each year with a couple of mini-reviews during the year. Sometime in the wee hours between now and New Year’s Day, I will review my goals from the past year, re-set my targets for the next year and rewrite my personal and business plan.

Simply put, I check my list of dreams, determine and write out my goals, and take action. Rather than spending all my time fussing over the goals I invest the time in handling whatever comes up.

I’m not downplaying the importance of writing out your goals. I believe this is extremely important. Writing out your goals brings focus. Goals that are not written down are only wishes.

Not writing out our goals is one way we deceive ourselves into not committing to them.

To be real and effective, goals must be written down and SMART. SMART goals are:

S – specific
M – measurable
A – achievable
R – realistic
T – time-dated

The simple act of writing your goals down allows them to begin to take on a life of their own. Try it and prove it for yourself.

Here are seven key areas in which you can set goals:

1. Physical
medical check-up, nutrition, exercise programs, weight control

2. Family
good role model, listening habits, forgiving attitude, supportive of others, respecting, loving

3. Financial
earnings, savings, investments, budget, adequate insurance, charge accounts

4. Social
sense of humour, listening habits, self confidence, manners, caring

5. Spiritual
inner peace, sense of purpose, prayer, religious study, beliefs

6. Mental
imagination, attitude, continuing education, reading, curiosity

7. Career
job satisfaction, effectiveness, job training, understanding job purpose, competence

As well, here are five lists that will help to inspirate and motivate you:

• A list of your Dreams
• A list of your Successes
• A list of your Strengths
• A list of your Blessings
• A list of your Affirmations

There are two superb goal-setting resources I wish to recommend. One is the system that Brian Tracy teaches in his seminars and the other is a 1-hour video called Goals by Zig Ziglar. Both of these systems are available through Nightingale-Conant at http://www.nightingale.com/

I urge you to take rightful control of your life and to make the most of your time and energy. Why not live it to it absolute fullest?

Whatever you envision for yourself, you can be, have or do if only you want it badly enough and if your are willing to do what is necessary to get you there.

I encourage you to dream big, bright full-colour dreams.

After all… everything starts with a dream!

Pay down loans, clean up any bad debts, collect some business-related equipment and save some money.

2. Bring some equity to the table.

Save money, sell some toys, borrow some love money, create something for your business, or get a second or third job for a while.

3. Prove your business case to yourself and to those who will read your business plan.

Persist in your market research efforts until you become ‘the expert’ for your business. Talk to people, ask questions, search the Internet, take courses, read books, listen to tapes, and subscribe to trade publications. You will feel more confident and have an easier time convincing your readers that you know what you are doing.

4. Listen and learn.

Listen to those who agree with you AND to those who do not. Listen to all who shoot holes in your business idea, they might just be pointing you toward success. When you think you’ve heard it all, listen harder!

5. Be honest… and thorough… and accurate.

Missing information or inaccuracies definitely invite questions and send the wrong message. Putting in wrong information or conveniently leaving out . . .Continue reading Twelve Tips For Business Planners]]> 1. Tidy up your personal finances before applying for a business loan.

Pay down loans, clean up any bad debts, collect some business-related equipment and save some money.

2. Bring some equity to the table.

Save money, sell some toys, borrow some love money, create something for your business, or get a second or third job for a while.

3. Prove your business case to yourself and to those who will read your business plan.

Persist in your market research efforts until you become ‘the expert’ for your business. Talk to people, ask questions, search the Internet, take courses, read books, listen to tapes, and subscribe to trade publications. You will feel more confident and have an easier time convincing your readers that you know what you are doing.

4. Listen and learn.

Listen to those who agree with you AND to those who do not. Listen to all who shoot holes in your business idea, they might just be pointing you toward success. When you think you’ve heard it all, listen harder!

5. Be honest… and thorough… and accurate.

Missing information or inaccuracies definitely invite questions and send the wrong message. Putting in wrong information or conveniently leaving out some of the less obvious, non-flattering financial information (like unpaid long overdue taxes) is a sure way to turn off potential investors.

6. Answer the basic business questions.

Who? What? Where? Why? When? How? A proper business planning system will provide you with a framework in which to place the confusing array of information you will gather. Choose a system and use it.

7. Provide a professional presentation.

There is no reason in these times, for a poor presentation. Use a proper business planning system, ask a friend, or pay someone to proof. Get someone to keypunch the plan if you need to, but do a professional job on it. Demonstrating that you care will increase the odds that a lender might care also.

8. Keep your language clear, simple and to the point.

If you must use technical jargon, provide an explanation of potentially confusing terms.

9. Write in the third person.

It is important to separate your business from yourself and to think and write about it as a separate entity.

10. Use charts, graphs, pictures and bulleted lists where appropriate.

Make sure your numbers match what is being stated in the narrative part of your plan. Keep the business plan brief, 20 pages or fewer, but be sure to make pertinent information available in the Appendices.

11. Be realistic in your expectations.

No matter how lofty your financial aspirations might be, know that businesses are rarely profitable in the first few months or even years. Estimate your sales conservatively and your expenses a bit higher than you think they will be. Keep that cash flow realistic and be sure to include ALL expenses and some contingency money.

12. Get into a business about which you know something, preferably a LOT…

In order to be of maximum value, a business plan must prove supply, demand and the financial case.

This can be confusing for those new to business. It’s hard to know what to believe, and naturally nobody wants to waste precious time if a business plan is not needed, nor should they—unless there are tangible benefits. Let’s kill a myth. Most of those who will tell you they have no business plan, when questioned further, will admit that they actually do have a plan; it’s just that they don’t think of it- or refer to it as a formal business plan. Make no mistake about it; where there’s a thriving, sustainable business, there is a plan.

Many who started without written business plans did so back when it was possible to travel the railways with manually powered scooters. Trains were much slower then, and a hardy lad could almost always yank the . . .Continue reading Smart Entrepreneurs Cruise with Business Plans]]> A quick search of the Internet will get you a mess of articles extolling the pros and cons of business planning. The advocates claim that anyone getting into business must have a business plan. On the other side of the argument are those who think business planning is a waste of time, including a few seasoned owners who matter-of-factly claim they’ve never had a business plan.

This can be confusing for those new to business. It’s hard to know what to believe, and naturally nobody wants to waste precious time if a business plan is not needed, nor should they—unless there are tangible benefits.
Let’s kill a myth. Most of those who will tell you they have no business plan, when questioned further, will admit that they actually do have a plan; it’s just that they don’t think of it- or refer to it as a formal business plan. Make no mistake about it; where there’s a thriving, sustainable business, there is a plan.

Many who started without written business plans did so back when it was possible to travel the railways with manually powered scooters. Trains were much slower then, and a hardy lad could almost always yank the scooter off the tracks before being crushed by an oncoming train. Nobody worried too much about having a train schedule; you could wing it and live to tell about it. Since then, railways and the world of business have gotten more complex. Nowadays, rail workers wouldn’t dream of travelling the rails without a lineup or traffic schedule, nor should entrepreneurs take unnecessary risks in today’s business climate.

Entrepreneurs who take the time to develop business plans will enjoy the following benefits.

1. You’ll know whether your business stands to profit or lose money.
2. You’ll understand the flow of cash in and out of your bank account and if or when you might need to borrow money.
3. You’ll be able to identify significant risks and figure out how to avoid them.
4. You’ll have a marketing strategy for getting your goods into the hands of customers.
5. You’ll use market intelligence to develop realistic sales projections.
6. You’ll get a clear picture of your business expenses.
7. You’ll know whether the business will meet your personal needs and whether it is a wise investment of your time, energy and money.

In the complex marketplace of today, some sort of planning process must precede a business start-up or expansion. Smart pilots don’t fly without maps; savvy entrepreneurs don’t cruise without roadmaps. Marketplace graveyards are littered with the bankruptcies of those who were fooled into thinking they didn’t need a business plan.

If you’re starting or growing a business, do you really need a business plan? If you’re risking any more than chump change, yes. If you can afford to lose the investment, lottery tickets are a more efficient way to part with your money than failing a business. When putting serious money on the line, a success bound entrepreneur will always be stronger when armed with business plan.

If you’re self-employed and providing services at prices anywhere near the rates you earned as an employee, you might be missing some of the deadliest hidden costs.

The obvious overhead costs include things such as rent, utilities, advertising, insurance, and office supplies; business expenses not directly related to the production of goods or services. However, there are a few costs that aren’t visible until after your venture is in play. They are easy to overlook, difficult to measure, and they’re seldom factored into the start-up financial projections.

Here are a few expenses to consider when setting your prices.

1. Audits, Fines, Penalties. Taxation and worker safety organizations can call for an audit just about any time. They can also cheerfully penalize you if you happen to be late with your remittances.

2. Downtime. As an employer, you are responsible to provide workers with everything they need to be organized, efficient and productive. Any losses or downtime come right out of your profit.

3. Political, Bureaucratic or Regulatory Changes. As a business owner, you will invest a certain amount in keeping up with changes, and then you will expend money, time . . .Continue reading Deadly Overhead Costs to Consider When Setting Your Prices]]> Are your prices high enough to keep you in business?

If you’re self-employed and providing services at prices anywhere near the rates you earned as an employee, you might be missing some of the deadliest hidden costs.

The obvious overhead costs include things such as rent, utilities, advertising, insurance, and office supplies; business expenses not directly related to the production of goods or services. However, there are a few costs that aren’t visible until after your venture is in play. They are easy to overlook, difficult to measure, and they’re seldom factored into the start-up financial projections.

Here are a few expenses to consider when setting your prices.

1. Audits, Fines, Penalties. Taxation and worker safety organizations can call for an audit just about any time. They can also cheerfully penalize you if you happen to be late with your remittances.

2. Downtime. As an employer, you are responsible to provide workers with everything they need to be organized, efficient and productive. Any losses or downtime come right out of your profit.

3. Political, Bureaucratic or Regulatory Changes. As a business owner, you will invest a certain amount in keeping up with changes, and then you will expend money, time and energy to adapt to those changes.

4. Disputes, Legal Battles, Allegations. Even if you choose your battles wisely, and even if you take the high road, all skirmishes will take a bite out of your overhead budget.

5. Unplanned Professional Development. Just about the time you get comfortable with a software application, somebody with move your cheese and you’ll find yourself propelled into a fresh new learning adventure. The time spent with your lawyer and accountant is necessary and valuable, and must be factored into your overhead calculations.

6. Theft of Goods, Inventory, Time. Employees might sneak the odd free meal from your restaurant or some self-serving soul might help themselves to a truckload of your products. You pay, either as a result of the losses or higher insurance premiums.

7. Non-Payment for Goods or Services. If you’re in an industry that expects you to accept payment after delivery of goods or services, you run the risk of non-payment. When that happens, you must decide whether to fight (court, collections agencies) or let it go (your loss). Either way, you pay.

8. Economic Changes and Natural Disasters. Finally, if there are any funds left in your overhead budget after all of the other possible challenges, you may be hit with any of a host of external complications. Who is ever prepared for a hurricane, a fire or a flood?

Business owners will recognize the hidden costs already mentioned, and can probably add a few of their own to the list. Optimistic newbies tend to hope these awful things won’t happen to them, but no business owner goes unscathed. Relentless low pricing will keep you broke and drive your business into the dirt.

The key to surviving in business is keeping your prices high enough to withstand any unpleasant surprises, while staying competitive enough to keep making sales.

1. Determine why the business is for sale.

Every seller will have a story, but the truth is – if a business is doing all of the things it should for its owner it should be very difficult to part with. There has to be a very credible reason for selling, such as poor health or retirement. Most anything else should raise . . .Continue reading Thinking Of Buying a Business? Buyer Beware!]]> For some reason, many people seem to want to spend too much money to purchase existing businesses. This is confusing, until you realize that buyers are trying to purchase solutions to a number of problems. Prospective buyers see an operating business and tend to think that they can simply buy it and it will continue to operate as it does under the ownership of the seller. As a buyer, you might imagine the business will allow you to be your own boss, pay you a great salary, raise your self-esteem, afford you an attractive lifestyle and eventually make you rich. If this is to be your destiny, you’ve got some serious homework to do… before signing away your hard-earned equity. If you are thinking about buying a business, you should take a few moments to consider the following:

1. Determine why the business is for sale.

Every seller will have a story, but the truth is – if a business is doing all of the things it should for its owner it should be very difficult to part with. There has to be a very credible reason for selling, such as poor health or retirement. Most anything else should raise your suspicions and cause you to dig deeper.

2. The most important information available to you will likely come from the financial history.

Insist on accessing the past three years of statements and if you can’t get them without a fuss, walk away. This is usually the first sign of trouble. If you can’t get the financials easily and quickly, your seller may be dishonest or disorganized, either of which is bound to bring you sorrow. Unless you are an accountant, turn the financial statements over to a qualified, trusted accountant for interpretation.

3. If the business location is leased and if it is important, what are the terms of the lease?

How long is the term of the existing lease? Are there any hooks that tie the lease rate to your revenue/sales? Are there any stepped increase-type clauses that could cause you to be paying more to the lessor than you can afford to pay yourself? I’m aware of at least one lease that resulted in the business owner paying in excess of $8,000 per month, far more than this owner could ever pay themselves. This is clearly a rent-seeker out of control and one stressed, broke business owner.

4. If the business is in a strip mall or a hotel, does the lease allow the landlord to lease to another similar business in their facility?

Or does it protect you with a clause that prohibits the landlord from doing this?

5. Can the business pay down the cost of the purchase and still pay you a reasonable salary?

This is critical to you from a personal perspective but also when selling the concept to a lender.

6. Determine what you are paying for.

When purchasing a business you can choose to purchase the entity or the assets. Purchasing the assets is often less risky from the buyers perspective. Purchasing the entity is the cleanest and easiest from the seller’s perspective.

7. If you purchase the entity (for example, the corporation), you may be buying some liabilities that you might not wish to take on.

For example, have the taxes been paid? Can the seller provide proof that taxes have been paid? Are there any outstanding lawsuits or employee or customer claims? Be sure to get a clean bill of health in writing.

8. If you are purchasing assets, how much of the purchase price is inventory and how much is equipment?

You will want to place your own value on these items but it is stronger to get a third party assessment of assets when trying to gain the vote of a lender. When it comes to assessing values, lenders might have a preference as to who does the assessments.

9. Determine what value the seller places on goodwill.

Most lenders place zero value on goodwill. If you are attempting to borrow money to purchase the business, you will likely find it difficult to sell the lender on any significant amount of goodwill.

10. It is important to understand that the process of ‘being in business’ is very different than it appears to an onlooker.

Once you have become enamoured with the notion of owning and operating a particular business, it gets difficult to be objective. Try to imagine what it would be like to work in the business. Can you see yourself standing serving customers in this business for the next five to ten years? Is it something you will enjoy doing?

11. You should definitely check the seller’s product or service sources, the companies or individuals he or she purchase from.

Determine how stable they are and if they will do business with you (at the same rates as they give him or her).

12. If you are planning to borrow the money to purchase the business, where will it come from?

Do you have at least 10% to put in of your own money/equity? Whether you’re going through a chartered bank or an alternate lender, 20% of your own equity makes a stronger application. To avoid surprises, know your target agencies and determine what they expect.

I’m not trying to create the impression that business sellers are dishonest or less than ethical. As an owner who might want to sell one day, I know that we place a high emotional value on our investment in our business. We pay for it each day with our energy and our lives and when it comes to selling, we expect and hope to get top dollar for our efforts. For me, ultimately it will be most rewarding if the new owner is able to pay a fair price and then succeed.

Buyers often ask me if a business plan is as important or necessary when purchasing a business. Yes, it is. Your business planning should be made somewhat easier by the fact that some of your market research should come from the existing owner. I know this is an old cliché, but the rule with purchasing a business is buyer beware. Take off those rose coloured glasses and take the time to get a clear picture before putting your assets on the line.