James Burke
Being a grandpa is more fun than working
FastTrac Growth Venture: Week 4
Operations…”Why do we do things THAT way?”
Fortunately, our instructor didn’t give us any homework this week as we’re still trying to tie up loose ends from our previous assignments related to financial matters, our marketing plans and our competitive analysis.
This week’s class centered on operations, and why we need to have detailed, written operational plans of who does what, how and why.
For those of us who are sole proprietors, it seemed like a waste of time to go through this assignment…detailing our every action. But did you know that it’s actually our first step to freedom? The pay off comes when it’s time to hire employees….and then eventually sell the business when the time comes.
The first time I listened to Michael Gerber’s “E-Myth Revisited” on audio book, I balked at his directive for setting up “systems”. But at this stage of the game, I’m now five years down the road from where I first started. All I know is that the road is paved with hard knocks, and even harder decisions. And, in a nutshell, I find myself seriously reconsidering Gerber’s wisdom.
Working through the operational plan has been an eye opener. I’ve found areas of my business where operations can be consolidated and fine tuned to allow me to focus on other more pressing needs of the business.
Our first assignment was to analyze one mundane thing that seemed to consume much of our time and energy. We then broke down the task into step by step details so we were able to scrutinize why we do things the way we do. And in doing so, I was able to identify and solve a couple of key problems I was facing with our current process for writing quotes, work orders and invoices. It’s amazing how a fresh approach can bring back clarity and renewed energy.
The ultimate goal is to have all our business operations documented in some manner, but that’s a huge step to take all at once. For now, I will focus on the areas where I feel like I have the least control and then work my way back from there.
Our business plans are due in two weeks, and along with the plan, we are to give a presentation to the class…as if we were pitching our business plan to an investor or banker.
Trying to assemble a business plan on my own has only resulted in a folder of scattered notes papers and five years of getting nowhere. But the pressure to get all this stuff done in six weeks has been good…even though it's the middle of our busy season.
I'm still in the process of tying up the loose ends on the finances. Quick Books is now set up on the computer and I'm scheduled to visit the accountant this week to get things in order.
Had I known that owning my own business would end up being so much work, I probably wouldn't have made the jump. So I guess ignorance does have a few rewards. And now that I'm in the thick of it...I'm lovin' it.
JB
FastTrac Growth Venture: Week 3
“Hi, my name is Jim and I don’t know how to read a balance sheet, cash flow statement or a profit & loss statement…”.
I’m running the risk of sounding like I’ve joined one of those anonymous self-help groups, but I really don’t know how to do any of those things I stated above. And, as a matter of fact, I’m not too many steps removed from the old “shoe box” method of accounting, although I have been quite sophisticated in my meager efforts to keep on top of finances.
Enter week #3 of FastTrac Growth Venture:
This week, we worked on two chapters: #4 Using Financial Tools, and #6 Establishing a Marketing Plan. Since I have a fairly good handle on the marketing plan, I spent the majority of my week on that. But when I came back around to Chapter 4, my blood began to run cold as I faced off with the primary reason for taking the class in the first place.
I didn’t complete my homework for that chapter. I leafed through the book trying to make sense of it, but to no avail. And even though I have five years of detailed hand-written analysis sheets of accounts payable and receivable, I was still at a loss as how to plug them into our homework templates.
Today’s class consisted of a little one on one time with a consultant who sat me down and gave me firm direction amidst my confusion. The plan: #1) Get a good accountant #2) Learn how to use Quick Books…and in a hurry.
As it stands, I only know one fact: the business is somehow making money because the lights are still on and it’s been a long time since I’ve been on the receiving end of one of those not-so-nice letters the mortgage company sends out….you know….just reminding me who really owns the house.
I’ve spent the better part of my working years as a tool and die maker, one of those guys who measures things down to the tenth of a thousandth of an inch. EVERYTHING I did required measurements…and numbers…and constant checking. Day in and day out…it was all about measurement.
But for some strange reason, flying by the seat of my pants…financially speaking… has “worked” and seems to require very little effort. The downside of that thinking, however, is the heavy price I will pay for my ignorance.
Today, I learned that I need to forsake the old ways of doing things if I want the business to grow. That’s easy in some areas, but other areas are sure going to take some effort.
So, at week #3, my greatest discovery has been the realization that much of our new growth will occur within the business as we establish better methods of operation. It’s tedious and boring work, but the payoff is worth it.
JB
FastTrac Growth Venture: Week Two
This week’s class was informative and fun, to say the least. We spent the majority of the six hour period doing research on our competitors and studying the demographics of our present and future customers.
Our two primary resources were:
Business Decision http://www.businessdecision.info/ It’s a database for demographics that can be used in several unique ways. Just type in a zip code, and how large a radius around that zip code you wish to study. It can pull up information about lifestyles (urbanites, yuppies, rural dwellers, etc…) / interests, income, median home prices and general demographic profiles of the residents. It also is capable of breaking down how the general population spends their annual incomes, plus a whole bunch of other cool stuff. It also shows satellite maps of where the various income levels live, shop and play. It also comes complete with mailing addresses for each demographic segment for those who use direct marketing.
Reference USA http://www.referenceusa.com/ was another resource, and that was primarily used to take a closer look at our competitors and the markets we both serve…and compete for. All we had to do is type in a business name and it brought up just about everything except an Experian credit rating number. Just for kicks, I looked up a few businesses from here on the forum and it looks like big brother is watching us all.
It allowed us to see a general credit rating (letter grade) based on the company’s maturity, years in business, number of employees, general indications of loans they’ve acquired over the years (no specific numbers, though), and quite a few other hard-to-get tidbits of information that the courthouse won’t (or can’t) give out. And, it also gives a complete hyperlinked list of THEIR competitors…way too cool. More sensitive information such as a full credit report is available for an additional fee.
I used it (Reference USA) to check up on one troublesome customer and got a better understanding of what’s going now…and what I should be expecting in the future.
Access to these databases is too pricey for the average small business, but some libraries offer them free to their patrons. Our library allows us to remotely access the databases from home while logged in through their home page.
Free reports from each database, complete with graphs, pie charts and other visuals can be downloaded in .pdf or MS Excel formats.
So, the take-home lesson this week is: Get to your local library and see what they have to offer your business…you might be pleasantly surprised.
JB
PS: I’ll leave older posts about FastTrac Growth Venture attached to each new post so you don’t have to go back through the older threads.
FastTrac Growth Venture: Week One
A few weeks ago, I had mentioned the Kaufmann Foundation's FastTrac Growth Venture classes that were being offered in our community. Basically, Growth Venture is designed for current business owners who desire a better understanding of their business in preparation for future growth.
Since Michigan's economy is practically at the bottom of the dumper, each participant was given a $720 scholarship (from grant money) for the class, leaving us with just $100 to pick up on our own.
Several of us in the class come from non-business backgrounds, but I was surprised by how many seasoned business owners were coming "back to school" to take a long hard look at re-defining their businesses in a declining economy...fraught with new upstarts and ever increasing competition. The "battle stories" they gave were quite an eye opener.
Last Thursday was the first day of class. The course runs six weeks, and we meet one day a week for six hours of instruction and group discussion. I'm finding that the homework takes me about four to six hours to complete each module.
A majority of the material can be studied independently, but the interaction between participants during class has proven very beneficial, and has challenged my thinking in several ways. I'm looking forward to breaking away from a lot of the preconceived notions I have.
For those who might be interested in what they teach, I'll try to keep a weekly outline of the material we cover.
Here's what was on the schedule for last week:
Module 1: Sizing Up Your Business-
Conducted a SWOT Analysis (Strengths, Weakness, Opportunities, Threats)
Defined a three-year vision of our business
Identified goals for the business and our goals for the FastTrac program
Module 2: Exploring Growth Opportunities
Assessed Industry potential
Developed my customer profile
Analyzed my direct, indirect and future competition
Evaluated our business growth opportunities
Module 3: Making Strategic Decisions
Defined my business strategy
Defined my executive summary (for business plan)
Operations…”Why do we do things THAT way?”
Fortunately, our instructor didn’t give us any homework this week as we’re still trying to tie up loose ends from our previous assignments related to financial matters, our marketing plans and our competitive analysis.
This week’s class centered on operations, and why we need to have detailed, written operational plans of who does what, how and why.
For those of us who are sole proprietors, it seemed like a waste of time to go through this assignment…detailing our every action. But did you know that it’s actually our first step to freedom? The pay off comes when it’s time to hire employees….and then eventually sell the business when the time comes.
The first time I listened to Michael Gerber’s “E-Myth Revisited” on audio book, I balked at his directive for setting up “systems”. But at this stage of the game, I’m now five years down the road from where I first started. All I know is that the road is paved with hard knocks, and even harder decisions. And, in a nutshell, I find myself seriously reconsidering Gerber’s wisdom.
Working through the operational plan has been an eye opener. I’ve found areas of my business where operations can be consolidated and fine tuned to allow me to focus on other more pressing needs of the business.
Our first assignment was to analyze one mundane thing that seemed to consume much of our time and energy. We then broke down the task into step by step details so we were able to scrutinize why we do things the way we do. And in doing so, I was able to identify and solve a couple of key problems I was facing with our current process for writing quotes, work orders and invoices. It’s amazing how a fresh approach can bring back clarity and renewed energy.
The ultimate goal is to have all our business operations documented in some manner, but that’s a huge step to take all at once. For now, I will focus on the areas where I feel like I have the least control and then work my way back from there.
Our business plans are due in two weeks, and along with the plan, we are to give a presentation to the class…as if we were pitching our business plan to an investor or banker.
Trying to assemble a business plan on my own has only resulted in a folder of scattered notes papers and five years of getting nowhere. But the pressure to get all this stuff done in six weeks has been good…even though it's the middle of our busy season.
I'm still in the process of tying up the loose ends on the finances. Quick Books is now set up on the computer and I'm scheduled to visit the accountant this week to get things in order.
Had I known that owning my own business would end up being so much work, I probably wouldn't have made the jump. So I guess ignorance does have a few rewards. And now that I'm in the thick of it...I'm lovin' it.
JB
FastTrac Growth Venture: Week 3
“Hi, my name is Jim and I don’t know how to read a balance sheet, cash flow statement or a profit & loss statement…”.
I’m running the risk of sounding like I’ve joined one of those anonymous self-help groups, but I really don’t know how to do any of those things I stated above. And, as a matter of fact, I’m not too many steps removed from the old “shoe box” method of accounting, although I have been quite sophisticated in my meager efforts to keep on top of finances.
Enter week #3 of FastTrac Growth Venture:
This week, we worked on two chapters: #4 Using Financial Tools, and #6 Establishing a Marketing Plan. Since I have a fairly good handle on the marketing plan, I spent the majority of my week on that. But when I came back around to Chapter 4, my blood began to run cold as I faced off with the primary reason for taking the class in the first place.
I didn’t complete my homework for that chapter. I leafed through the book trying to make sense of it, but to no avail. And even though I have five years of detailed hand-written analysis sheets of accounts payable and receivable, I was still at a loss as how to plug them into our homework templates.
Today’s class consisted of a little one on one time with a consultant who sat me down and gave me firm direction amidst my confusion. The plan: #1) Get a good accountant #2) Learn how to use Quick Books…and in a hurry.
As it stands, I only know one fact: the business is somehow making money because the lights are still on and it’s been a long time since I’ve been on the receiving end of one of those not-so-nice letters the mortgage company sends out….you know….just reminding me who really owns the house.
I’ve spent the better part of my working years as a tool and die maker, one of those guys who measures things down to the tenth of a thousandth of an inch. EVERYTHING I did required measurements…and numbers…and constant checking. Day in and day out…it was all about measurement.
But for some strange reason, flying by the seat of my pants…financially speaking… has “worked” and seems to require very little effort. The downside of that thinking, however, is the heavy price I will pay for my ignorance.
Today, I learned that I need to forsake the old ways of doing things if I want the business to grow. That’s easy in some areas, but other areas are sure going to take some effort.
So, at week #3, my greatest discovery has been the realization that much of our new growth will occur within the business as we establish better methods of operation. It’s tedious and boring work, but the payoff is worth it.
JB
FastTrac Growth Venture: Week Two
This week’s class was informative and fun, to say the least. We spent the majority of the six hour period doing research on our competitors and studying the demographics of our present and future customers.
Our two primary resources were:
Business Decision http://www.businessdecision.info/ It’s a database for demographics that can be used in several unique ways. Just type in a zip code, and how large a radius around that zip code you wish to study. It can pull up information about lifestyles (urbanites, yuppies, rural dwellers, etc…) / interests, income, median home prices and general demographic profiles of the residents. It also is capable of breaking down how the general population spends their annual incomes, plus a whole bunch of other cool stuff. It also shows satellite maps of where the various income levels live, shop and play. It also comes complete with mailing addresses for each demographic segment for those who use direct marketing.
Reference USA http://www.referenceusa.com/ was another resource, and that was primarily used to take a closer look at our competitors and the markets we both serve…and compete for. All we had to do is type in a business name and it brought up just about everything except an Experian credit rating number. Just for kicks, I looked up a few businesses from here on the forum and it looks like big brother is watching us all.
It allowed us to see a general credit rating (letter grade) based on the company’s maturity, years in business, number of employees, general indications of loans they’ve acquired over the years (no specific numbers, though), and quite a few other hard-to-get tidbits of information that the courthouse won’t (or can’t) give out. And, it also gives a complete hyperlinked list of THEIR competitors…way too cool. More sensitive information such as a full credit report is available for an additional fee.
I used it (Reference USA) to check up on one troublesome customer and got a better understanding of what’s going now…and what I should be expecting in the future.
Access to these databases is too pricey for the average small business, but some libraries offer them free to their patrons. Our library allows us to remotely access the databases from home while logged in through their home page.
Free reports from each database, complete with graphs, pie charts and other visuals can be downloaded in .pdf or MS Excel formats.
So, the take-home lesson this week is: Get to your local library and see what they have to offer your business…you might be pleasantly surprised.
JB
PS: I’ll leave older posts about FastTrac Growth Venture attached to each new post so you don’t have to go back through the older threads.
FastTrac Growth Venture: Week One
A few weeks ago, I had mentioned the Kaufmann Foundation's FastTrac Growth Venture classes that were being offered in our community. Basically, Growth Venture is designed for current business owners who desire a better understanding of their business in preparation for future growth.
Since Michigan's economy is practically at the bottom of the dumper, each participant was given a $720 scholarship (from grant money) for the class, leaving us with just $100 to pick up on our own.
Several of us in the class come from non-business backgrounds, but I was surprised by how many seasoned business owners were coming "back to school" to take a long hard look at re-defining their businesses in a declining economy...fraught with new upstarts and ever increasing competition. The "battle stories" they gave were quite an eye opener.
Last Thursday was the first day of class. The course runs six weeks, and we meet one day a week for six hours of instruction and group discussion. I'm finding that the homework takes me about four to six hours to complete each module.
A majority of the material can be studied independently, but the interaction between participants during class has proven very beneficial, and has challenged my thinking in several ways. I'm looking forward to breaking away from a lot of the preconceived notions I have.
For those who might be interested in what they teach, I'll try to keep a weekly outline of the material we cover.
Here's what was on the schedule for last week:
Module 1: Sizing Up Your Business-
Conducted a SWOT Analysis (Strengths, Weakness, Opportunities, Threats)
Defined a three-year vision of our business
Identified goals for the business and our goals for the FastTrac program
Module 2: Exploring Growth Opportunities
Assessed Industry potential
Developed my customer profile
Analyzed my direct, indirect and future competition
Evaluated our business growth opportunities
Module 3: Making Strategic Decisions
Defined my business strategy
Defined my executive summary (for business plan)
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