Product Marketing Plan

How Is 2010 Shaping up for You?

Thursday, July 29, 2010 by Glenn Dunlap

I had a great meeting with the CEO of one of our client companies today. The meeting was to review the progress the company was making toward their business plan and financial projections. Now that we're half way through the year and June's financial statements are closed, it's a great time to dive deeper than we normally do on a monthly basis to see how things are shaping up.

We spend time asking lots of questions. Was our market forecasting correct? How effective has the new product positioning been? How do we see the last half of the year shaping up? Are there ways for us to improve the financial performance of the company? Are customers paying in a timely fashion? How can we improve cash flow? We ask these and lots of other questions to identify ways to improve the company's results.

But let me back up for a minute. The reason that we're able to compare actual results to their budget is because we created the business plan and projections in the fourth quarter of 2009. You know the old adage, "If you don't know where you are going, any road will take you there." Running your business is much the same. Taking the time to work through key strategic planning elements can go a long way to putting you on the right road. Executing the plan and monitoring your results can keep you there.

Switching places, two CEOs actually did it

Tuesday, June 1, 2010 by Laura Colar

Remember a while back when we addressed the value of walking a mile in someone else's shoes to gain fresh perspectives that might help you run your business better? Well, it appears some CEOs have actually done this - as a recent Fortune piece highlights. The participants, Maxine Clark (founder and CEO of publicly held Build-a-Bear) and Kip Tendell (cofounder and CEO of the privately held Container Store).

And yes, just as we anticipated, these retail veterans found they gained a great deal from the experience. Spending time in someone else's realm, dealing with their daily challenges shook things up and while dealing with employee issues, product questions and in-store management issues, they found themselves continually stumbling across ideas and inspiration that they could incorporate into their own operations.

Here's a peek at a few of their takeaways:

Clark, for instance, appreciated how the Container Store acknowledges sales associates for a job well done with Post-It notes left on lockers. Kendell, meanwhile, liked Build-a-Bear's "Strive for Five" technique, which is designed to sell each customer five items. (via MarketingProfs.com)

True leaders know that real ideas must come from a variety of experiences, sometimes you need to take on something completely new to move to another level. Innovation comes from so many places, from crazy situations to mundane tasks, maybe even, from spending time working in a different industry.

To me, the above insight is part of the beauty and value that our Indianapolis consulting services team here at Milestone Advisors brings to our clients. We have worked in a variety of industries, been tasked with an array of projects. Outsourcing bookkeeping, we've done that. Providing market research forecasting for a new business plan or endeavor, we've done that too. What about building a technology architecture to streamline a company's work flow and make them more efficient? Been there. With or staff's diverse backgrounds, we've done it all which better equips us to advise and inspire. What can we do for you and your operations?

Teaching others to blog

Tuesday, May 25, 2010 by Laura Colar

We discuss the importance of blogging and social media quite often. It should be a part of everyone's business plan and an even greater part of your company's marketing strategy. And while you can appoint one key person to handle the load, it's important you have diverse voices coming from all areas and levels of your company so the average reader gets a comprehensive look at your operations.

Yet explaining the importance of blogging, making sure others understand it and are willing (maybe even excited) to participate isn't easy. You should be prepared for it to be a long process, one in which you will need to be patient and regularly follow up with people. I have been charged with implementing a social media strategy here at Milestone Advisors and encouraging others to take part so we provide well-rounded information on all of our specialties (which include marketing, technology, outsourced bookkeeping and much more).

Here are some suggestions that might make the process a bit easier for you that I have learned through trial and error:

1. Take time to explain and be sure participating members truly understand the value of social media, what it means to your company, your customers and more.

2. Explain the technical aspects of the platform you're using. You will surprised at how many people don't adapt quickly to different software products. Carving time out to walk people through the steps, leading by example will save you time in the long run

3. Do some creative brainstorming as a group. Just explaining what blogging is and how to do it isn't enough. And leaving it at that can lead to your team members sitting in front of their computers with question marks in their brains and blank stares on their faces. Helping them talk through subjects they can write about a few times will help them to easily develop story ideas on their own.

4. Send them some examples of blogs you really like, whether that's because they are well-written, tackle pertinent subjects or are just fun -- giving your team examples will also aid in inspiration.

5. Continue to provide encouragement. You're asking your team to step out of their comfort zones and do something for the good of the company as a whole. A confident financial advisor or marketing strategy pro may be nervous about sharing their thoughts in an open forum like a blog, check in regularly with words of advice, tips or positive feedback. It will go a long way

Company blogs aren't easy to get off of the ground and they're not easy to maintain but I will say, they are more than worth the effort. They enable you to connect with like-minded businesses, leaders, enhance your brand and maybe, sell a little!

Jack Stack says we're recovering

Friday, May 14, 2010 by Laura Colar

Jack Stack believes the economic recovery is under way. In fact, he asserts it has been for quite some time. He then warns - if you don't have a business strategy or business plan developed and in place to take advantage of the upswing, you may miss it completely.

It may be difficult to believe, particularly in our tiny worlds where we still hear about small businesses struggling for capital or individuals losing their jobs. So, where does Stack get this perception from and what evidence is he using to support it?

"I’ve been speaking eyeball-to-eyeball with entrepreneurs all across the country — in places like Pittsburgh, New York City, Richmond, Va. and Fresno, Calif. — and when I ask them how they did in the fourth quarter of 2009 or the first quarter of 2010, I keep getting responses like, “amazing,” “fantastic,” “record-breaking” and even “best we’ve done in years.”

Yet it seems we're all a little afraid of admitting things might be getting better. Maybe for fear the the worst is yet to come, just as we've allowed ourselves to breathe easy.

But there is firm evidence pointing to companies around the country once again experiencing growth. Stack uses his own company as example, SRC. He admits he had spent so much time reflecting on the economic collapse that when portions of his operations were experiencing new growth, he missed it completely.

Another sign he claims to see -- an increase in lead times, the period ordering something and actually receiving it. This means more and more orders which means more money being spent. Can we get two huge thumbs up for that.

"If you’re still not convinced, do some research of your own. Ask your customers and peers how they’re doing (and tell us in the comment section below how you’re doing). Do your own eyeball-to-eyeball research. Just as importantly, start putting together a strategy to take advantage of the recovery whenever you believe it’s going to hit. If you keep looking in the rear-view mirror and forget to look at what’s headed your way, not only might you miss a golden opportunity to build your business, you might just give your competitors the chance to move ahead of you or, worse, to eat your lunch right out of your hands."

We'd love to hear what you're seeing, hearing and experiencing yourself that either confirms Stack's assertion or proves it wrong. Please share, do you think we're in the midst of recovery? What evidence do you have that supports your claim?

Depending on your answers this might be the perfect time to initiate buying a business that supplements current operations, compiling new financial projections or rebuilding your financial model for the improving economy or to begin the product launch plan you put off when the bottom dropped out of the market. Any way you look at it, it may be time for action!

Another visit from Stanley Bing

Saturday, May 8, 2010 by Laura Colar

Here at Milestone Advisors we advise businesses concerning almost every aspect of running a company. We consult on product marketing plans, financial market forecasting, writing business plans to attract potential investors or simply taking a look at someone's books to see if they could benefit from outsourced bookkeeping.

Recently, there has been a shift in the tools we recommend for marketing strategies. Social media has come out of the blue and now dominates most marketing and business strategy tactics. One of these mediums, Facebook, a social networking site, has become a hotbed for not simply B2C outreach but B2B as well.

In his most recent column, Fortune's Stanley Bing asks if this platform does society more harm than good. Even if you still plan on using the site as part of your social media strategy it's prudent to be aware of all the uses of Facebook as well as the different opinions being voiced about it.

He writes about Facebook as a place where the ugliest aspects of our worst high school nightmares come to life and fears that the worst perpetrators in this online environment will enter the business world and do immeasurable damage.

"In teaching social networking, virtual presence, aggressive electronic messaging and cold-blooded manipulation of group dynamics, Facebook is preparing young people to thrive in business life, particularly on the executive level. I’m just not sure it’s a future office space that I would want to live in."

What do you think? Is this a business world you want to live in? What can be done?

Do Facebook Fan pages make sense for B2B marketing?

Thursday, March 25, 2010 by Laura Colar

As social media continues to grow by leaps and bounds in its practical applications for business operations and people's careers it's imperative we know as much as possible about the ways in which people use the forums (potential customers/clients included), how they prefer to be communicated with and what their motivations are for spending time on them.

But does Facebook have practical application for those of us working in B2B? Granted, we can all relate to its useful nature for any consumer product -- people love to visit and connect with their most trusted brands, see what promotions are being offered, what new spring line is being revealed or who won the latest contest. I could go on and on but we get it, it makes complete sense for those brands and companies to have a visible presence on Facebook. I, for one, am connected to Ann Taylor Loft across all SM mediums, I can't help myself and I get some pretty great coupons (which of course, lead me to shop and spend there more often than normal but I still sleep at night).

Yet in the same breath, all of us who work in B2B will acknowledge that marketing plans and marketing strategies often look much different than the fun and flash often associated with B2C. Yet, marketers, social media experts and leaders (and market research itself) alike are finding that Facebook has become a great place for B2B operations to be seen.

Follow this link for well done and highly effective Facebook Fan pages that B2B companies have added into their marketing communication strategies, product development plans and business plans to connect with clients in new way and demonstrate they're on top of the trends.

An innovative approach to PR

Wednesday, March 17, 2010 by Laura Colar

Many of our clients are start ups or young companies with fantastic ideas on very tight budgets. It's not an easy process to start a company, become profitable and maintain that growth. Never mind initiating efforts to garner public exposure for your wonderful company and recruiting brand ambassadors through strategic marketing efforts.

There may be a new trend in public relations that will allow smaller operations or start ups to begin PR efforts on a tight budget. In a recent Inc. article a Los Angeles-based PR agency is offering a bundle of services for a flat fee, sort of like your phone bill. You pay a monthly fee and receive a specific amount of anytime minutes, nightime minutes and text messages. Except with these PR services, you won't be charged overage fees.

The packages vary but can include such things as media list building, pitch creation, 20 press releases a year and basic wire distribution. The minimum commitment for their services is three months and the longer you do business with the firm, the more tailored your service package bundle can become.

PR is an extremely powerful tool that can help point your operations in the right direction for profitability. Reaching out to the public should be a key element in any marketing strategy, product marketing plan, new product positioning or product launch plan.

Entrepreneur is synonymous with leader

Wednesday, March 10, 2010 by Laura Colar

The basic concepts that lie behind being an entrepreneur.

You're creating something out of nothing, you should build a team around you that will support your goals and vision who also have the capabilities to help you expand. They should be creative, smart innovators, like you and have some diverse backgrounds to bring skills to the table you may not have.

Hiring a team for a startup is different than hiring for an older business. For the latter situation, you should be looking for organized, experienced people who are also comfortable with being leaders. They need to reliable and have high ethical standards. And don't forget, good communicators!

What about when you are expanding beyond an initial or leadership team? You should have some protocol in place that touches on expectations for employees, meetings and compensation practices. This will make it easier to bring new people into the mix. The other consideration, anticipating a change in communication. More people means more diversity regarding personality type and communication preferences. Getting a system in place that will make sure you're facilitating positive communication will be essential.

Let's talk about some common mistakes entrepreneurs make formulating a company, product and culture. Often times, these can occur in the hiring process, it's easy to hire people who look great on paper but aren't committed to your mission. Unfortunately, their lack of motivation can unravel projects quickly.

Don't hold on to control too tightly. Learn to let go. If you trust the people you've hired, at some point, taking your hand off the back of the tricycle is a must. They should continue moving forward as you stop and watch them go - freeing up your time to think strategically about growing your baby (company). And be understanding of mistakes, they happen to everyone from time to time.

Most important, accept and embrace your identity as an entrepreneur. Take your passion and communicate it clearly to investors and employees. Use these facts about what it means to be a leader and what it takes to succeed to develop an organizational development strategy, marketing communication strategy strategic HR plan that will give your passion a blueprint.

You are completely responsible for building the new world as your company will be part of it.

Calling all marketers!

Wednesday, March 10, 2010 by Laura Colar

Any marketing professional worth their salt these days not only understands the importance of the Internet and technology to deliver a company's message and solidify their brand identity - they're incorporating these new platforms into their company, their marketing plan strategies, product marketing plan or marketing communication strategy.

But a truly smart, savvy marketer is going on step further and seeking out the next wave of Web 2.0 innovations that can bolster, aid or make more efficient their marketing outreach.

I did some research and found what some believe to be the emerging social media tools (via Social Media Examiner) that will continue to change the way we do business (and the tools we use to do it).

1. Foursquare
This location-based social network/gaming application is rapidly gaining users and mindshare. Users “check in” at local businesses and earn rewards for frequently visiting participating establishments. Business owners can get value out of Foursquare by offering incentives for users to check in, such as special offers for repeat visitors.

2. Google Buzz
This is Google’s latest entry into social networking. Buzz allows users to post status updates and upload pictures and videos to a Google profile, not unlike Facebook and Twitter. A user’s network is formed by contacts they interact with frequently on Gmail.

3.Loopt
Another location-based social service, Loopt aims to connect its users with their friends by visually displaying their location and availability on a localized map. Users can connect with friends in the area, see reviews and recommendations of restaurants, and find events in the area that might be of interest. Businesses have tapped into Loopt’s location data to offer targeted promotions.

4. Blippy
Blippy aims to connect people around the purchases they make. Blippy publishes the amount and location of customer purchases (with user permission), which the rest of the community can then react to.

5. Groupon
This site offers “collective buying power” by providing deals to groups of people who buy products and services in bulk from participating retailers. The site uses social networking to get users to share offers with their communities, in order to reach the target number of customers the “Groupon” requires to activate. Businesses could gain exposure and new customers by making offers on the site.

The options or opportunities for creative innovation or implementation into your marketing plan, marketing process or strategy with the above tools are endless. Whether you're revamping a brand and plan to utilize giveaways and promotions as part of a product launch plan, all of the above are technologies that should be explored.

Blogging, another perspective

Friday, March 5, 2010 by Laura Colar

Why do you have a blog? Is it to garner publicity and brand recognition in a cost-efficient manner? Is it to drive sales and growth? If so, you might be going about achieving those things in the wrong way says Joel Spolsky, founder of Fog Creek Software and management columnist for Inc. Magazine.

In his most recent column, Joel asserts that too many blogs focus simply on the companies themselves, new hires, acquisition announcements and other company events. This type of communication doesn't recruit regular readers or garner interest in actually doing business with your operation.

Joel asks, what's the proper formula to turn a blog into an area that helps generate revenue?

The answer:

"...an entrepreneur's blog has to be about something bigger than his or her company and his or her product. This sounds simple, but it isn't. It takes real discipline to not talk about yourself and your company. Blogging as a medium seems so personal, and often it is. But when you're using a blog to promote a business, that blog can't be about you. It has to be about your readers, who will, it's hoped, become your customers. It has to be about making them awesome." (Advice from well-known game developer and author, Kathy Sierra)

There you have it. Blogging should be about making those you seek to serve or do business with even better.

As you develop a marketing communication strategy that incorporate business blogging, be sure to align your communication with the needs of your audience just as you would in any other marketing activity (new product positioning or development, product launch plan, etc.)

Meetings making you unproductive?

Thursday, March 4, 2010 by Laura Colar

Every company has a different approach to communicating internally. Meetings are used to discuss company issues as well as brainstorm to develop plans for clients and delegate responsibilities for the execution of said plan.

Getting together is necessary to discuss the latest market research forecasting, new financial models or a product launch plan. Yet, sometimes they simply equate to lots of talking, little doing.

Yet, when run effectively, meetings put everyone on the same page and foster positive relationships throughout a company as well as the resulting creativity that occurs when minds meet.

MarketingProfs offers actionable advice to run a meeting that doesn't waste your time or your clients' time.

    •    Set a clear agenda when you schedule the meeting. The best outcomes happen when everyone is fully prepared to discuss the topic at hand.

    •    Ask for full participation. Instead of letting one or two voices dominate the conversation, create a collaborative environment in which all ideas are welcome. "Encourage everyone to speak up," he suggests, "but respect those that require time to process what they're thinking by not putting them on the spot right away."

    •    Don't lose track of time. According to Stephens, you should set a limit—and stick to it. "When the time is up," he notes, "the meeting is over. If you didn't accomplish [your] goal you'll plan accordingly next time won't you?"

    •    Establish what each participant will do next. Make everyone accountable by distributing an immediate summation of each team member's responsibilities.

I would recommend adding an area to your business communication strategy or strategic plan that deals with internal interaction and meetings. Establishing best practices for regularly occurring meetings will foster positive communication and increased productivity.

Inspirational black entrepreneurs

Thursday, February 25, 2010 by Laura Colar

In recognition of Black History Month, Entrepreneur has compiled a list of the most iconic black entrepreneurs in history and dubbed it 'The Soul of Small Business'.

1. Oprah Winfrey (this should have been blatantly obvious)
Her story is incredible, her beginnings meager and her success unprecedented. Oprah reinvented daytime TV and transformed her personality into a brand with sheer innovation.

2. Berry Gordy
Gordy transcended racial lines of jazz, R&B and soul music when he developed the interracial 'Motown Sound' later leading him to found the iconic Motown Records.

3. Madam CJ Walker
The daughter of slaves and no stranger to personal tragedy, Walker developed her own product (a scalp conditioning/healing formula) and became the first female, self-made millionaire in the U.S.

4. John Johnson
The founder of Ebony and Jet magazines, Johnson provided African Americans with their own mainstream media outlets.

5. Cat

hy Hughes
Hughes developed and grew Radio One to the tune of 65 stations after being denied financing by 32 banks.

6. Russell Simmons
Simmons is an icon and attributed with making hip hop an acceptable and often applauded part of America's mainstream pop culture.

7. Magic Johnson
Yep, he's a basketball star. But he's also a smart investor. He's developed movie theaters, restaurants and coffee shops in urban areas in an attempt to revitalize their neighborhoods.

8. Tyra Banks
Beautiful to look at and smart too. Banks has become a media mogul, developing wildly successful TV shows, dabbling in music and movies and creating camps to teach young girls self-worth.

Here's what to take away from their examples.

Oprah is a marketing machine and it's all based on who she is, inserting bits of yourself or your personality into your company's marketing communication strategy or marketing strategy plan may give you that slight edge.

Both Walker and Johnson created something brand new. Innovation will help you lead the way in your industry accompanied by a product development business plan.

Cathy Hughes struggled to secure bank financing and won the battle. It's not an easy process but you only need one yes.

Venture capital is alive and well (and it can do good!), we know this thanks to Magic.

As for Tyra and Russell Simmons, they welcomed new technologies and adopted advancements in the media to launch their brands.

The best place to learn can often be the past.

How much cash should you raise?

Sunday, February 21, 2010 by Doug Allgood

Many entrepreneurs wrestle with this question and may get opposing viewpoints. I have seen recommendations that say you sould figure out what you need, double it, and don't be afraid of dilution. Other views counter balance this approach with caution that you should not take too much investment money too soon. This view is supported by examples of how taking too much money results in pressure to deliver growth before you are ready. Causing a change in focus from creating customer value and building a durable organization to meeting arbitrary business plan goals.

As I work with technology companies to understand how much cash to raise, I suggest a detailed review of the business plan. With the pace of technology change, it is important that you frequently analyze the market potential for your products, the best approach for packaging and pricing, sources of supply, and go to market plans. The analysis of the market, competitors, and cost drivers becomes the building blocks to development of a financial model. The financial model provides the lense to see the potential for your growth and to give insight into how cash would help you achieve the full potential of your business.

Unfortunately, I have not found the easy rule of thumb to how much case to raise. However, I have learned that following a good methodology for strategic planning, having the right financial models, and getting outside expertise will give you the best answers.

Have an exciting big picture vision

Sunday, February 21, 2010 by Doug Allgood

As companies share their strategic plan, I have noticed a key ingredient to success is an exciting vision. In addition to having good numbers, make sure your enthusiasm is demonstrated in your vision for your company’s products and how they bring value and results to the market. It is amazing the difference I see in companies who can articulate their vision in a two to three page executive summary where they have demonstrated a passion for their product and understanding of how to go to market and scale operations. The results come in increased sales and an energized workforce who knows and understands the company’s vision.

Venture Capital deals remains hot with Software Companies

Thursday, February 18, 2010 by Doug Allgood

As Milestone Advisors works with technology companies to determine the best avenues to raise capital, we are excited that venture capital activity remains strong in software technology according to a recent PricewaterhouseCoopers MoneyTree report. For the full year of 2009, venture capitalists invested $3.1 billion in 619 deals, a 40 percent decline in dollars and a 35 percent decline in deals from 2008 when 45.1 billion went into 948 deals. Software remained the largest single industry category in terms of deal volume and second largest behind biotechnology in terms of dollars according to PWC. In the analysis of the software deals, Milestone Advisors has found that valuations for companies with recurring revenue through SaaS software get a higher valuation. As we work to help product development companies with their strategic business plans, we’re consistently seeking ways to leverage the SaaS model in recommending a go-to-market approach for technology products. The recurring revenue model is relevant in many products as a way to help customers conserve cash and can reduce the sales cycle in delivery of the product.

www.pwcmoneytree.com/MTPublic/ns/index.jsp

Don’t let firefighting take priority over planning

Tuesday, February 16, 2010 by Doug Allgood

I often find high growth companies struggle to balance fighting fires and doing appropriate business planning. They are growing so fast they find it difficult to get the needed time to plan. Milestone Advisors has helped business owners and executives with this balance by facilitating a strategic planning workshop. The workshop enables a management team to efficiently complete a new or updated business plan while ensuring their business goals are achieved. Recently, with a high growth technology company, we were able to leverage a cross section of our team to work on updating the strategic business plan. Leveraging our collective experience in financial analysis, product development, market analysis, and operations we were able to surface opportunities for growth and improved margin. Once a management team has the plan, decisions on priorities and investments can be made knowing how they fit into the strategic vision.

I recommend seeking outside consulting expertise to keep your plan alive and active while you manage daily operational.

Miller High Life

Friday, February 12, 2010 by Laura Colar

Post Super Bowl several discussions are bound to occur. Why the team who won was so deserving. What decisions were made by the opposition that led to their downfall. What the future looks like for the league. And inevitably, what everyone favorite commercials were.

My favorite this year was Miller High Life's spot that gave four small business owners a chance to shine and show off their humor. What a great idea! To begin with, this concept of buying a spot and advertising for another entity (let alone advocating for small businesses) generated more media attention and exposure than any of the other commercials did buy simply airing commercials during the big game. Because of the gesture, Miller Coors have probably solidified some passionate brand ambassadors for life.

Big business advocating for small business. We certainly don't see that a lot but when it happens, we should publicize it. I believe Miller Coors' efforts are proof that corporate America realizes that an essential part of our economic recovery will be small businesses launching, surviving, growing and thriving.

This is a truth we believe in at Milestone Advisors which is why we do what we can to extend accounting advice, facilitate the market research process, build product development business plans and equip thought leaders to bring to market new products and services, fulfilling their passions and dreams.

So, we tip our hats to Miller Coors and their Miller High Life commercial. We hope to see more advocacy for small business in the future.

Before You Build Your New Product . . .

Friday, February 5, 2010 by Jeff Good

I recently met with the CEO of an early-stage software development company, just to see how things were going. "Things are moving forward", he said, ". . . busier than you can imagine . . ." The good news is that the company had customers - good paying customers, in fact. Like many product development companies, though, they were tight on cash and barely making it month to month. In addition, because many of their products were still in the development stage, they had negotiated a wide range of pricing and payment arrangements with their customers. When I asked about the company's long-term pricing strategy and whether customers would be willing to pay prices that supported a profitable business (given the costs necessary to deliver the products), I got a blank stare. "That's a really good question," he said . . . "I sure hope so."

What a shame that so much hard work and money is often expended without really having a long-term vision for the company's profitability or a well thought-out business plan. As I reflected on our conversation, a few things that might help similar early stage companies came to mind:

Know your market - Having a great product is not enough. Market research is necessary to understand who will buy your product and how much they're willing to pay. Figure this out early before you spend too much time or money building a product.
Understand your cost structure - Just because someone is willing to pay for your product doesn't mean you'll have a profitable business. What does it take to deliver your product - all in? This includes not only the direct costs of manufacturing, delivery, installation, etc., but also the costs of product development, maintenance and overhead. Is there enough profit, given market pricing to cover projected costs? Does the projected profit make it worth your effort personally? As comedian/actor Steve Martin once said, "... it's a profit deal."
Predict your cash needs - Many early stage businesses sacrifice profits early on to capture market share and gain critical mass. This is fine as long as you have the cash to finance those early losses. Having a solid financial plan that carefully models cash flows is critical - you don't want to run out of money!

Of course, there are many other important elements to an effective business plan, but these are a few critical starting points before you get too far down the road.

Market Research Not Important? Think Again.

Tuesday, February 2, 2010 by Glenn Dunlap

I was approached recently by the CEO of an upstart software as a service company to consider helping his company develop a corporate finance strategy and raise the requisite capital. We talked at length about the application that the company had built, the customer base, the channels that the company sold through, and the market opportunity. We also talked about some of the obstacles that the company faced in order to be successful.

It appeared to me on first blush, that while the product was a great solution, the "problem" wasn't painful enough to the prospective customers to cause them to beat a path to the new application or even make the purchase if proactively presented with the solution. But that was only my first reaction and I've been wrong before. We needed to dig a little deeper.

I offered to review the business plan and bring in our part time CIO to help assess the technology and the opportunity. But before we had received the information for our discovery process, we received an interesting call from the CEO.

The company had decided to put everything on hold. Everything. The board had met over the weekend and decided that it would take too long to pull together the necessary funding to continue the next phase of the product development plan. The other option would be to attempt to grow the business organically but they didn't feel that could be done successfully either.

What initially appeared as an incredibly large target market was actually not nearly as large as thought. The challenge? The pain factor, or lack thereof, that I mentioned before. I was afraid of that...

It's difficult for early stage or startup companies to consider spending time or money on market research - largely because both resources are so scarce. The other concerns are that asking prospects for feedback and input could "let the cat out of the bag" too early, cause challenges with meeting deliverables, create competitors, or put intellectual property at risk.

All of these concerns are legitimate and should be addressed and treated with caution. However, the risk of spending time in production or development ahead of completing a thorough market research process can cause greater problems down the road.

If you have a great idea that you are considering turning into a product or business, work with an individual or firm that can provide you with the market research services to support business plans for small business. You'll be glad you did and you'll be better positioned as a result.

Innovation: Do you have what it takes?

Monday, February 1, 2010 by Laura Colar

One of the many insightful professionals whose tweets I follow and read on a regular basis drew my attention to this article about two weeks ago. 'Why Victims Can't Invent Anything' takes a fresh approach to why many struggle with innovation to either enter a new marketplace or continually develop in order to compete in their current one.

Part of the article can be broken down into a simple concept we're all familiar with - that is, in life, do you typically see the glass as half empty or half full? However, when applied to your business outlook, this theory naturally becomes a bit more complex.

When problems arise do you welcome them, knowing that in the end whatever product or service you produce will ultimately be more complete solutions for your customers/clients due to issues faced early on? Do you see these challenges as times to innovate, to stretch yourself, your employees, your company?

Or do you throw up roadblocks, adopt exasperation as an attitude and complain?

If you regularly do the latter, the piece asserts you're robbing yourself of the ability to innovate. When you complain about hiccups in time lines, frustrations with research and development or any other inevitable hurdles you make yourself a victim. And as the article argues, victims never invented anything.

To lead your company or organization into the future you're going to need the ability to innovate which means no excuses, problems/challenges = opportunities to change the landscape of your marketplace.

This outlook doesn't have to be inherent, it can be learned. After all, many traits or characteristics of entrepreneurs are more skills they have honed than anything else. You can't be the only one whose adopted this attitude either. It should be a part of your organization's identity and brand so all employees not only identify with it, but exhibit it in their approach their every day routines. This means assessing your business plan, product marketing plan business strategy or marketing communications strategy - make the can-do attitude a part of your company culture and you'll be able to innovate on a daily basis.