Forming Beneficial Strategic Alliances

Establishing a strategic alliance is not a “shake hands” deal that gets put in place and then becomes the forgotten part of your business. In order to be successful, strategic alliances must be carefully selected, rigorously tested and, like your transformed business, properly systemised in order to work effectively. Many business owners make the mistake of forming strategic alliances with unsuitable partners that end up costing the business considerable amounts – both in lost revenue, costs in unwinding the relationship and in terms of damaged goodwill. When evaluating reasons for these failures, some common trends emerge:

  • Poor planning and budgeting
  • Assuming, trusting and not checking the alliance partner’s credentials, capability, reputation etc
  • Failing to assess the strategic and cultural fit of the proposed alliance partner
  • Not properly documenting the relationship and responsibilities
  • Not agreeing (and documenting) the split of income, contribution to overheads and client ownership
  • Failing to plan and set targets for the alliance
  • Not adequately communicating the nature and purpose of the alliance to staff
  • Not providing adequate coaching or support to enable staff to cross sell or identify opportunities
  • Having poorly defined procedures to manage the flow of work

So how do you go about establishing a strong strategic alliance? We believe there are 9 essential steps after you have decided a strategic alliance is right for your business:

  1. Understand the advantages and disadvantages of a strategic alliance
  2. Conduct a rigorous analysis of your potential partner(s)
  3. Understand what you and your potential partner(s) bring to the arrangement
  4. Negotiate the arrangement
  5. Structure and document your arrangement
  6. Agree on who does what
  7. Plan
  8. Execute
  9. Manage

You will notice that nearly 90% of the process takes place before you and your strategic alliance partner start to do anything with clients. There is a good reason for this – the 90% of the time you invest in preparation will allow you two important things: time to get to know your potential alliance partner even better and time to make sure you have structured an alliance partnership that suits your business.

Get in touch and ask us to conduct a FREE Business Evaluation Meeting and find out about our unique way of designing and implementing strategies to generate sustainable business improvement.

Best Business Planning Practices

What separates a weak business plan from a good plan? Or a good plan from a great one? As with any reliable roadmap, a powerful business plan clearly lays out a course and provides alternatives to follow should any roadblocks appear.

A business plan is an important tool for internal planning in any business and for garnering support from external sources. Use the business plan best practices here to create a solid plan for your business.

Build the plan around its audience

A business plan can be used for many purposes and should be created with its use and audience in mind. You might create a plan as a tactical rollout guide for a new product or market, as an annual strategic guide, as a tool to lure investors, or as a way to get your organization excited about the coming year. The way you’ll use the plan should shape its focus. A plan aimed at raising money needs to focus on the talent and experience of your team to boost investors’ confidence in your company. It should also be slickly produced, printed and packaged. A strategic guide for internal use, on the other hand, might focus more closely on the steps required to roll out a new product. Multiple versions of your plan may be required if you have more than one audience and purpose.

Focus on finances

A strong business plan demonstrates that there is a financial impact related to all strategies, ideas, and assumptions. In one way or another, every section of your plan needs a financial bent – How will marketing generate income? How will the competitive environment impact your ability to make money? What will production of a product cost and how will that impact profitability?

Be realistic in your enthusiasm

While it is natural for a business plan to reflect a belief that your offering or approach is superior to anything else on the market, remember to temper your zeal. In creating each section of the plan, ask yourself what a sceptic would be concerned about regarding your statements and assumptions. For example, if your plan concerns a new product introduction, ask yourself about the barriers to acceptance. Always return to the “why” – Why would customers switch allegiance to you? Why would companies outsource a service to you, etc? You can put a plan to the test by sharing a rough draft with someone you know who has a sceptical nature.

Segment whenever possible

No small business can be all things to all people. Focusing on specific market segments will improve the accuracy of your planning, since you will be able to build your financial assumptions around the specific needs of those segments. Don’t limit segmentation just to your marketing efforts – the habits and values of your target audience will likely influence everything from product development to pricing.

Produce carefully

Whether you are sharing a business plan with staff only or a discriminating outside resource, features such as charts that clearly illustrate a point, statistics that back up an assertion, or judiciously-placed graphics can increase the likelihood that your audience will be receptive to your message. Once your plan is complete, have it proofread by two different people to ensure that mistakes don’t undermine its effectiveness. Also, consider the appropriate way to package a plan. A plan for bankers, partners or investors should be printed on high quality paper and bound. You can cut some corners with an internal document, but be sure your document reflects the effort you put into it.

Revise, revise, revise

A business plan is a “living” document that requires periodic review and continual improvement. Your plan may be your company’s roadmap, but your business can quickly be thrown off course by market downturns, shifting buying habits, or even better-than-anticipated sales. Review your plan regularly to see if you’re on track and adjust budgets and priorities accordingly.

Get in touch and ask us to conduct a FREE Business Evaluation Meeting and find out about our unique way of designing and implementing strategies to generate sustainable business improvement.

How to Grow and Managing a Business for Profits: Seminar

Growing and Managing a Business for Profits – What business owners need to do to boost income and manage a business through tough times

http://nuorderbusinessgrowth.eventbrite.co.uk/

Event Details:

Duration: Tuesday 13th June, 9am to 12.30pm.
Location: Mere Court Hotel Conference Centre, Mere, Knutsford, Cheshire.

Full Fee: £35 including booking fees and VAT
Early Bird Fee: £25 including booking fees and VAT (Sold Out)
Finders Fee: Receive £5 for every person you recommend who then attends the seminar.

Normally £50 + VAT, this personal invite entitles you to attend this joint seminar at a discounted rate.

Seminar Details:

Do you want to recapture your enthusiasm for your business or for the business you work for?  Are you looking for ways to grow your business and instill a sense of pride in your workforce that will result in increased profitability?

Then this is a seminar not to be missed.  Delivered by two experts in their field, Roger Brown and Lisa Gibson, the 3 ½ hour seminar programme will provide you with simple yet highly effective techniques to achieve your business aspirations.

You will come away with top tips on Social Business and the use of CRM and well as understanding the power of having the right person in the right job within any organization.

This seminar programme will benefit anyone who:

  • owns a business and wants help to grow or manage the business more effectively
  • wants tips and advice on managing and inspiring a team
  • want to increase leads and grow a client base

How do I book a place?

  1. Purchase your tickets. http://nuorderbusinessgrowth.eventbrite.co.uk/
  2. Once your booking has been received and assessed, you will be sent a booking confirmation, which will include the location, directions, and the terms and conditions.

About your speakers:

For information on Roger Brown and his testimonials visit http://www.linkedin.com/in/rogerbrownnuorder

For information on Lisa Gibson and her testimonuals visit http://www.linkedin.com/in/lisagibsontriple3

Business Strategy – Complacency

“A feeling of contentment or self-satisfaction, especially when coupled with an unawareness of danger, trouble, or controversy”.

“An instance of contented self-satisfaction”.

How often have you heard one of your business clients utter the immortal words “Things were going so well – I didn’t see the danger until it was too late!”? While having a feeling of satisfaction in a job well done is a positive outcome, that same feeling can be the ruin of a good business when overshadowed by short sightedness, arrogance and over confidence. The one critical characteristic that separates okay businesses from great businesses is their desire (at all costs) to avoid complacency creeping in to their operations.

Complacency comes in many disguises:

  • Thinking you are so far ahead of your competitors you can “take it easy” for awhile
  • Considering you know what your clients need better than they do
  • Ignoring the importance of clients (and staff) who refer new business
  • Believing you have enough experience, knowledge and/or skills
  • Disregarding high staff/client turnover and considering it someone else’s problem
  • Assuming that “good enough” is going to be satisfactory to your clients

These are some of the signs of a business that is complacent about its success. Complacency can strike at any area in your business: your efficiency and productivity; the effectiveness of your procedures and systems; the quality of service you offer your clients. Some of the most common areas of complacency we see are in the leadership, knowledge and skills in a business. While complacency is defined as a “feeling”, unlike being happy or angry, the damage to your business can be profound. Let’s consider the impact of a complacent leader and complacent business:

  • “I know enough/I have sufficient skills to run this business” – people, businesses and markets change every day. If you are satisfied that you know enough, or have enough experience to effectively lead your business towards your vision, reconsider. Leaders who seek to continually build their knowledge and skills are far more effective in keeping abreast of important changes and making course corrections so benefit of their business. The day you stop learning is the day you stop leading
  • “We are far too good for our competitors” – that may be true today but what about tomorrow? If your business is complacent, it fails to understand that there is always going to be another business in the market seeking to overtake it and attract your clients
  • “Our service is good enough” – service can always be better. A Business that cast’s off complacency and adopt’s continuous improvement are those that have recognised how dangerous being satisfied with the “ways things are” can be
  • “Sure we have high staff turnover but that’s just because staff can’t hack the pace” – if you are complacent about staff turnover, you are failing to recognise that things are not all rosy in your business. Thinking it’s your staff’s problem is a certain recipe for eventual disaster.

Complacency is insidious and starts with something as simple as “oh – that’s good enough”. As the leader, you need to ensure that you continue to challenge the status quo to avoid complacency creeping in. Ask yourself: “How can we do better?”; “What ways can we improve our service?” and most importantly “What lessons did we learn when things went wrong?”