Answer You - Business

The Importance of a Customer Focused Vision
Have you caught the fantasy-baseball bug yet? When asked to join a friend’s fantasy league this year, I accepted, not knowing what was required. I knew I was in trouble when my friend told me he had spent over 20 hours dissecting his team, position-by-position, and searching other rosters for possible trading partners. I didn’t even know my team’s name, let alone how to access the league’s Website! Here’s the point.My buddy is obsessed with fantasy baseball, and to do something extraordinarily well, it must be your obsession. Part of “hitting the Grand Slam” and putting the thrill back into customer service is articulating a customer-focused vision. In short, from top to bottom, the entire organization must be obsessed with delivering unparalleled customer service. Over the years, my experiences have taught me that it is simple to create a customer-focused culture, but it certainly isn’t easy.Here are some tips for living and breathing customer service.•The CEO must be obsessed, whatever the plan. Assuming the top CEO knows what he or she is doing, they must demonstrate an unwavering commitment to their plan. The Atlanta Braves won 14 straight division titles in an unrivaled streak that finally ended just last year. Their General Manager, John Sherholtz, is about winning and only winning. This is how a great leader operates.•Discuss the vision all the time. Companies spend an inordinately small amount of time talking about the company’s raison d’?tre (reason to be). Within the company associates should always be asking "Where are we going and what’s it going to look like when we get there?”•Motivate your associates by giving

no conflict of interest issues with “deals” that could be perceived as favored or the result of nepotism. This allows for shifting of costs and revenue in ways that are totally legal, but at the same time unfair to the investor due to subjective factors. This is fine in a wholly owned private company owned by a single individual (a lifestyle company), but should not really ever happen with outside investors. Enron, Adelphia, Worldcom and Tyco are perfect examples, and these have made everyone more aware of how easy it is to abuse executive positions. It is even possible that in the future institutional investors who allowed this could be perceived as violating their fiduciary responsibilities and have liability. After the fact, if something went wrong and the company shut down, the perception could be that things were done improperly. The room for interpretation on the dissolution of assets could easily be perceived as improper, even when it is done right, due to the wide room for judgement on the value of the remaining assets of any company that is closing. Since this is effectively a fire sale prices will be well below “fair market value”. In sh

Delegating as a Motivational Tool
Managers who delegate regularly and delegate well create a motivating work environment for their employees. But it’s not enough to simply hand off assignments and responsibilities and walk away. The manager needs to stay involved from describing the assignment clearly, to providing ongoing feedback, and finally acknowledging the work of the employee who completed the delegated task. So delegating is not a hands-off strategy or a way to off-load unpleasant tasks.A few months ago, I had an experience as a volunteer at my daughter’s elementary school that highlighted just how motivating (or de-motivating) the delegating process can be. I volunteered to produce the second-grade classroom newsletter with another mother who has computer skills. The teacher handed over 25 paragraphs written in the inimitable style of six and seven-year olds. She gave no instructions but requested that the newsletter be completed by the following week and said, “I should just type the paragraphs as the kids wrote them.” I dutifully found a newsletter template, entered the kids’ journalistic efforts (complete with spelling, grammar and punctuation errors which were adorable), added clip art, and printed 25 copies to go home with the kids. I thought my handiwork was competent, creative, and pretty darn cute.Imagine my surprise when the following month the newsletter was delegated to my colleague who produced an equally attractive newsletter on the same template but with 25 journalistic entries that were well-spelled, grammatically correct, and perfectly punctuated. “What’s up with that?” I wondered. When I checked with her, she informed me that the principal of the school was not at

I am not writing this to create a list of things not to say so people can hide the facts or in any way mislead potential investors. On the contrary I personally believe you must be 100% upfront with any potential investors, and even volunteer some weaknesses to be credible. I am writing it to help entrepreneurs and CEOs “design” these issues out of their business so they never have to say them. Although there are certainly many exceptions to these, as a general rule there are many good reasons why all of these things should not be part of your company, if you are looking for outside investors. I have discussed some of the logic why, but this should not be considered a comprehensive discussion of the reasoning behind each item. You should also realize some of the reasons are a function or perception, of the market. I would never say they all make sense all the time. Each situation is always different.

Most entrepreneurs greatly underestimate the difficultly and time required to succeed at this task. They also underestimate the opportunity cost to their business while they are “away” focusing on something else. You only want to raise outside capital, if you really NEED to have capital to grow. I am recommending to many CEOs I coach and mentor today that because it is so difficult to raise money today, and valuations are not great, it would be a far superior alternative to spend the same amount of time selling, or adding value to your business in other ways, than to spend six to twelve months chasing investors. In many cases spending the same amount of time and effort selling your products, or service, could generate just as much money and not dilute your ownership and subject you to the whims, regulations and covenants of bringing in outside capital. This does not, however, mean you should not develop a complete business plan. This process will greatly increase your chances of success whether you are raising outside capital or not.

1. I have not invested my own cash in the business, but have only put in lots of sweat equity. Experienced investors know that a start-up is a roller coaster ride of both highs and lows. They want founders to prove their commitment by investing their own money to the point where it will REALLY hurt if they walk away during tough times. Skin in the game is your vote of confidence, so don’t expect others to invest if you don’t. This does certainly not have to be all your personal net-worth, but it must be a significant portion. You can take out a home equity loan, borrow or withdraw from retirement funds, or just invest personal savings. In the end this will pay off, if you do it right, because it will make you more efficient with capital usage and allow you to bring in investors later, after you have created some value and increased your company valuation. Ultimately, if you are successful, you will likely own more of the company as a result.

2. This (or that) market research firm said this market will be a $2 billion market in five years, so all we need is 5% of that market to build a $100 million company. Counter institutively this is basically saying you have NOT done your homework, and do not really know who your customers will be. This is “top-down”, not “bottom-up” market research. Besides most of these analysts firm’s lost huge credibility when the bubble burst and people realized some projected numbers beyond what the population of the entire planet for Internet users. You need to describe, if not actually list, the exact customers where you can win in most cases and why. Research says that 32% of angels site weak market analysis and analysis of the competition as the most critical mistake entrepreneurs make in their business plan. You must design your launch strategy around a particular customer profile and offer something that that customer cannot get elsewhere. Smart investors would prefer an unfair advantage in a smaller focused market, because the marketing and selling costs will be lower (concentrated) and the sales close rate higher. This also shows you know what you are out to accomplish and are focused on a smaller market you understand well and can win.

3. My spouse (or any immediate family) will be our other senior officers. – Or we are going to use my brother’s company for distribution (or anything else). Investors do not like nepotism and also know that a divorce could destroy the company. They are taking enough risk already, so why should they add another layer of risk with the divorce rate at 50%? Why should they believe out of all the management in the world your brother is the best qualified? Also, there can be no conflict of interest issues with “deals” that could be perceived as favored or the result of nepotism. This allows for shifting of costs and revenue in ways that are totally legal, but at the same time unfair to the investor due to subjective factors. This is fine in a wholly owned private company owned by a single individual (a lifestyle company), but should not really ever happen with outside investors. Enron, Adelphia, Worldcom and Tyco are perfect examples, and these have made everyone more aware of how easy it is to abuse executive positions. It is even possible that in the future institutional investors who allowed this could be perceived as violating their fiduciary responsibilities and have liability. After the fact, if something went wrong and the company shut down, the perception could be that things were done improperly. The room for interpretation on the dissolution of assets could easily be perceived as improper, even when it is done right, due to the wide room for judgement on the value of the remaining assets of any company that is closing. Since this is effectively a fire sale prices will be well below “fair market value”. In sho

Payroll Missouri, Unique Aspects of Missouri Payroll Law and Practice
The Missouri State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:Department of Revenue Division of Taxation and Collection Withholding Tax Section P.O. Box 3375 Jefferson City, MO 65105-3375 (573) 751-5752 http://www.dor.mo.gov/Missouri requires that you use Missouri form "MO-W4, Employee's Withholding Allowance Certificate" instead of a Federal W-4 Form for Missouri State Income Tax Withholding.Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Missouri cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.In Missouri supplemental wages are taxed at a 6% flat rate.You must file your Missouri state W-2s by magnetic media if you are have at least 250 employees and are required to file your federal W-2s by magnetic media.The Missouri State Unemployment Insurance Agency is:Division of Employment Security Unemployment Insurance Department 421 E. Dunklin St., P.O. Box 59 Jefferson City, MO 65104-0059 (573) 751-3215 http://www.dolir.mo.gov/ls/wagehour/The State of Missouri taxable wage base for unemployment purposes is wages up to $8000.00.Missouri requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.Unemployment records must be retained in Missou

ital, if you really NEED to have capital to grow. I am recommending to many CEOs I coach and mentor today that because it is so difficult to raise money today, and valuations are not great, it would be a far superior alternative to spend the same amount of time selling, or adding value to your business in other ways, than to spend six to twelve months chasing investors. In many cases spending the same amount of time and effort selling your products, or service, could generate just as much money and not dilute your ownership and subject you to the whims, regulations and covenants of bringing in outside capital. This does not, however, mean you should not develop a complete business plan. This process will greatly increase your chances of success whether you are raising outside capital or not.

How to Get an Interview Call from a Big Company
To get an interview call you have to enter the job market to hunt for a job. And you must be prepared to work hard for it. Hard work generates opportunities. Get an attractive visiting card printed. In your job search it will not be easy or practical to hand over your Resume to every person you meet. But it is convenient to give your visiting card.Sometimes even our friends don't know about our skills or qualifications properly. Mention your name, address, e.mail, phone numbers, qualifications, skills in the card. Several good job offers may land in your pocket through friends, relatives or neighbours. They may refer any good opening to you. This is one of the several steps you have to take to get interview calls. Other steps are:a) Read Situations Vacant columns in various newspapers carefully. There are also walk-in interview calls in several advertisements. Just visit the company on the mentioned date and appear for an interview. Also look for vacancy advertisements in special career supplements of a newspaper (which are published every week with the main newspaper).b) See through other employment newspapers. Many magazines also publish vacancy advertisements.c) You may contact reputed placement agencies. But here you have to be very cautious. Many agencies extort money and you never get a good job. Even if there is a good job offer through them they charge a big amount of money.d) There are many websites helping both job seekers and job providers. You can definitely take their help. But be careful not to get in a trap. Never shell out any large amount of money to find a job.e) Many companies don't advertise if they

ur vote of confidence, so don’t expect others to invest if you don’t. This does certainly not have to be all your personal net-worth, but it must be a significant portion. You can take out a home equity loan, borrow or withdraw from retirement funds, or just invest personal savings. In the end this will pay off, if you do it right, because it will make you more efficient with capital usage and allow you to bring in investors later, after you have created some value and increased your company valuation. Ultimately, if you are successful, you will likely own more of the company as a result.

Effective Management Through Leadership
Leadership and ManagementLeadership and management skills are essential throughout our working life with leaders found in industry, commerce, sport, and even social settings. The aim is the same wherever they are found, leading a group towards a common goal or set of stated objectives. The essential leadership and management skills can be learned through training courses or from studying textbooks, though the very best learning comes through on their job experience.Effective leadership: Everyone Working TogetherIt is only possible to truly appreciate the complexity and skills involved in effective leadership in guiding a group, through practising leadership and management in the field. Those following the leader will be disparate in many ways having different skill sets, motivations, personalities and tastes. Everyone is different, but it is essential that they work together. An effective leader is able to bind the group together in whatever setting, sports, school, the workplace, or even socially.Companies need effective leaders to ensure their success. This is why we find many companies sending their management staff on leadership and management courses. Even those with substantial experience are likely to benefit from refresher courses. This helps keep managers motivated and channel their experience and knowledge in a positive way in encouraging those around them.Effective leadership is important in schools too, with teachers needing leadership and management skills in order to go about their work to best effect. It is vital that they can motivate the pupils, encouraging them to learn and re

e, if not actually list, the exact customers where you can win in most cases and why. Research says that 32% of angels site weak market analysis and analysis of the competition as the most critical mistake entrepreneurs make in their business plan. You must design your launch strategy around a particular customer profile and offer something that that customer cannot get elsewhere. Smart investors would prefer an unfair advantage in a smaller focused market, because the marketing and selling costs will be lower (concentrated) and the sales close rate higher. This also shows you know what you are out to accomplish and are focused on a smaller market you understand well and can win.

No Vacancy for Customer Service
When I first started staying at the Neptune Motel, they had a decent continental breakfast with a good selection of donuts, bread for toast, muffins, fresh fruit and more. My favorite items where the orange juice and the little packets of Carnation Hot Chocolate that I would mix with my coffee.The motel rooms were nice and new, the towels fluffy. I even liked the hand lotion. It didn’t dry my hands like some alcohol based lotions and it didn’t make them feel greasy . . . they felt just right after rubbing on the lotion.In the three years or so that I’ve been staying there, a couple times a month or so, things have changed. The carpets are showing stains, the towels seem thinner and so is the hand lotion. The selection for breakfast has dwindled. There are no more donuts. The hot chocolate is gone, and the orange juice has changed to a cheaper brand and now tastes watered down. I never eat the complimentary breakfast anymore.About a hundred yards down the street is another motel where I can stay for about 20% less and yet, I choose to stay at the Neptune.What keeps me coming back is Betty, the morning desk clerk. I like her. She’s friendly and always has a smile. When the Neptune decided to raise their rates, Betty fought for my standing commercial rate. She won. I stay. When Betty goes, I will, too. And I’m sure she will be going.Just as the Neptune has continually shown a lack of understanding of service to me as a client, I’m willing to bet they show the same disregard also for their internal customer service as well. I have seen turnover at the desk many times in the last three years. I’ve not heard Betty complain, but one day she wi

4. I am going to also be doing some consulting to cover my expenses because of my low salary. Or I have other businesses to run also. Or anything else I invent I will personally own the rights to. These are all variations of the same theme. You are not fully committed to the business you want them to put their money in. This might work for Donald Trump, but for anyone who has not made his or her first $25 million don’t expect that kind of latitude. Investors want and deserve your full-time attention as soon as they invest. This might be OK while you are pulling together your plan and don’t have outside investors yet, but investors are buying YOU lock, stock and barrel and want your full-time attention and focus. This not only means your time at the office, but as a CEO, or any senior executive really, it also means they want to own your thinking in the car and shower, and all your ideas that are a result of your work.

5. We have it all figured out. The fact of the matter is that the only guarantee you can make is the plan will evolve and change and the business plan is pretty much guaranteed NOT to happen. Only naive investors would think you are going to do everything that the plan says and not make changes as you go. If they really believe this, you probably do not want them as investors anyway. If you say this, you are basically saying you are wet behind the ears or unrealistic. Besides, if you really had it all figured out and proven, you probably would not even need their money, you would be “bankable” and pay prime rate instead of twenty to fifty percent per year to get equity dollars.

6. We have everyone we need on board in management to be successful. If this were true, you are either spending WAY too much money on staff, or you do not understand the skills you will need to bring on as the business grows and evolves. This is never true and saying it is like waving a flag saying I am an amateur. All investors assume you will need to hire other key players and set aside a stock option pool for that purpose.

7. We are going to sell this product to everyone (even in a single industry), because everyone can use it. This worked during the bubble for a while when $30 million was being dropped (foolishly) at a pop to fund some broad horizontal plays. Today, the smart money is mostly funding companies going after niches, and maybe some verticals (with top management teams, ideas and markets). Virtually every company today needs a market entry strategy that is narrow and focused to establish them as the “go to company” for a particular problem or solution. You NEED to be the big fish in a small pond first because small fish in the ocean get eaten alive more often than not. You can add niches, products or expand to an entire vertical later after proving every element of your business in a single niche. By the time you get there so much can change it is usually even a waste of time figuring out what that order will be in advance. Markets and technology are too dynamic today.

8. We have no competition. This is virtually never true, as people are doing something to deal with the problem you solve today. If you are a restaurant then the grocery store across the street is your competition. You can almost never view a market that narrowly, unless you just got the patent on nuclear fusion, even then coal, oil, hydroelectric and solar are still competition. Besides you really can’t know who else might be working on the problem and if it is an attractive market you will clearly have followers. So you need to articulate how you will stay ahead of competition either way.

9. Only our management team is qualified to develop and execute this business. This is about as false, naive and arrogant a statement as anyone can make, so don’t even come close. To say you are the only people in the world who can do this is not only terribly unlikely, it is in FACT something you can not possibly know for sure, because you don’t actually know everybody else do you? So it is always a false statement and shows overconfidence. It is better to err on the side of saying something like: “we know there will be competition and here is how we will be cheaper, different, better and/or faster.”

10. Our projections are very conservative. This is the most overused expression of the lot and I would guess it gets said in more than ninety-percent of investor presentations. The fact is that entrepreneurs are always optimistic; they wouldn’t be entrepreneurs if they were not, as they are certainly fighting the odds

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.answeryou.net/article/24786/answeryou-Top-10-Things-NOT-To-Tell-Angel-and-VC-Investors.html">Top 10 Things NOT To Tell Angel and VC Investors</a>

BB link (for phorums):
[url=http://www.answeryou.net/article/24786/answeryou-Top-10-Things-NOT-To-Tell-Angel-and-VC-Investors.html]Top 10 Things NOT To Tell Angel and VC Investors[/url]

There's only one thing worse than delivering bad news to your boss. That is not sounding the alarm when you know trouble is brewing, because it is a cardinal sin to let your boss be surprised. A crucial ingredient in career success is knowing how to deliver the negatives as well as how to receive them. Learn how and when to manage your boss with bad news.

Here is a method that is teaching people who work from home about integrity in business and life!

Fundraising is an every day occurrence for so many churches today. There are a variety of different types of church fundraisers available today with the selling of products being one of the most popular. What you sell is only a portion of what is important when you are having a fundraiser. The way you sell is equally as important if not more to make your profits soar with a sales type fundraiser.

Tags

Links

Answer You - Top 10 Things NOT To Tell Angel and VC Investors

Related Articles: