Program Management Plan

Tips on managing an intern

Thursday, May 13, 2010 by Laura Colar

That time has arrived. Ambitious college students abound, hitting the mall for dress clothes, making a sincere effort to enjoy the taste of coffee and heading off to a nine to five -- all to gain a few lines on their resumes. Yep, we're talking about internships. What used to be an optional form of summer employment has now become a requirement if one hopes to get a job opportunity immediately upon graduating from college.

Internships are not only a great resource for students themselves but also serve a purpose for the companies who offer the programs. They are exposed to the talent and imaginations of a variety of young, fresh minds -- a valuable resource.

How do you manage interns? A good question as there are different parameters for this type of arrangement than there are for new employees. Inc. Magazine has some tips and tricks into best practices when dealing with an internship program.

1. Know what you want
In order for either party to get anything out of the experience, you must have clearly communicated your needs and expectations for your intern. This way they will have every opportunity to produce results for you and they, in turn, will learn.

2. Provide for your interns
From menial tasks to the really big opportunities. Interns should be required to deal with PowerPoint presentations and Excel sheets as well as delivering actual presentations to senior members of your team, providing them a well-rounded experience. You should also give them resources to use after their time with you is through such as connections to professional networking organizations.

3. Provide mentorship and advice
Part of the value in having an internship is derived from the intangibles, things we are exposed to when entering the working world on a daily basis. They can sit in classes and hear about how things work all day long but nothing compares to the knowledge gained from actually being in a given situation or environment. Make sure your employees make themselves available for interns to pick their brains and ask for advice.

You can find the entire article here. I think companies and the interns themselves both benefit from these programs. It is simply important that internships are built into your business strategy or business plan and serve a clear purpose in which some area, marketing strategy, technology, etc. benefits and that you have the time and resources to be sure the participating student benefits.

Insights from Guy Kawasaki

Wednesday, March 24, 2010 by Laura Colar

I read an interview with Guy that appeared in the New York Times a couple of weeks ago and thought it pertinent to share. Since entering the workforce and more specifically the world of communications and PR, I have looked to Guy for insight into the way people work and how understanding that concept can benefit the way you do business and simply work, on a day to day basis.

Some of my favorite insights are below:

Sales is everything. As long as you’re making sales, you’re still in the game.

You should hire people who are better at doing things than you are. So, in my case, I was not the warm-and-fuzzy manager, so I tried to hire people who reported to me who were warm-and-fuzzy types to provide a buffer. If you can’t do it, you should find somebody who can.

I learned from Steve Jobs that people can change the world. Maybe we didn’t get 95 percent market share, but we did make the world a better place. I learned from Steve that some things need to be believed to be seen.

Make yourself dispensable — what greater accomplishment is there than the organization running well without you?

Success in business comes from the willingness to grind it out. It’s not because of the brilliant idea. It’s because you are willing to work hard.

I don't think I am going out on much of a limb in saying that many managers, CEOs and entrepreneurs can all find a statement above that rings true or that hasn't already been incorporated into your strategic vision or strategic hr plan, etc. Listening to leaders such as Guy reflect on their experiences and impart wisdom is crucial to our own successes and failures as we grow in our careers and our companies grow. We should consistently investigate what others like Guy have experienced and incorporate their hard-learned lessons into our daily strategies our program management plans and even our financial plans (when appropriate).

5 Myths That Can Kill a Startup

Monday, January 25, 2010 by Laura Colar

The media doles out countless pieces of advice and daily insights into being an entrepreneur. Every day we hear another 'do', another 'don't or another 'look what they did'. I believe it's essential to read and learn about strategies that those who have gone before have implemented to achieve their respective success or to learn from their tragic failures.

However, we need to maintain a level of awareness and pragmatism. It's easy and to a certain extent, natural to romanticize start-ups, the involved processes and the wit and wisdom of those who run them. For every Mark Zuckerberg who vaulted to success after dropping out of college to launch his company there are scores more who are still struggling to make their dreams a reality. I say this to remind us all that what works for one individual may not work for another. Some of these tips or strategies are called out below:

Myth: Hire smart people and let them do their magic
Truth: Hire stars and let them do their magic

Myth: It's about your great idea
Truth: It's about your customers

Myth: Conflict is bad
Truth: Affective conflict is bad, cognitive conflict is good

Myth: It's about hard work, don't expect to have a life
Truth: It's about results and you need a life

Myth: It's an uphill battle until one day, then it all comes together
Truth: It's a roller coaster ride

The full post, courtesy of GigaOm, explains in-depth the reasoning behind each truth and is worth a read.

When you're in the beginning stages of launching a start up, it's important to gauge your personal philosophy regarding the above issues as well as the philosophies of those of your partners. These ideologies are necessary to nail down to build a business strategy, a program management plan or what your marketing plan process is going to look like. If these issues aren't addressed you leave room for misunderstanding of expectations which leads to inner conflict, something I am sure every entrepreneur would agree can be debilitating and distracting, wasting time and yes, money.

10 Characteristics of Superior Leaders

Tuesday, January 5, 2010 by Laura Colar

You may have a strategic HR plan in place at your company, but does it take you, the CEO, owner or leader into account? How often do you analyze your role within the company and how you affect such encompassing issues a program management plan down to the smaller matters of how you influence employees.

Entrepreneur has compiled a list of characteristics that define what it means to not be a good leader, but a superior leader. Below are some of my favorites:

Competency: You must be seen by your advisors, stakeholders, employees, and the public as being an expert in your field or an expert in leadership. Unless your constituents see you as highly credentialed--either by academic degree or with specialized experience--and capable of leading your company to success, it will be more difficult for you to be as respected, admired, or followed.

Communication skills: It does little good to have a strong mission, vision, and goals--and even a solid budget--if the executive cannot easily and effectively convey his ideas to the stakeholders inside and outside of the organization. He must regularly be in touch with key individuals, by email, v-mail, meetings, or other forms of correspondence. Of course, the best way to ensure other people receive and understand the message is with face-to-face interactions.

Getting out of the office or touring different sites is an irreplaceable method of building rapport and sending and receiving messages. "Management By Walking Around," or MBWA, meeting employees at their workstations or conference rooms, or joining them for lunch are just a few of the many effective approaches leaders can use to develop positive contacts with employees.

Be sure to check out the piece to see the rest of the important characteristics - you may have to work on developing some that you lack in order to do your part to ensure success of your company. Getting bank financing in place, yes, important. Creating a company marketing plan, yes, also very important. However, the style with with which you lead everyday operation is just as important as any of the above aspects and should be given weighty consideration on a regular basis.

Changes to Loan Program Favor Small Businesses

Tuesday, March 17, 2009 by Glenn Dunlap

Yesterday President Obama and the SBA announced the elimination of the lender fee and the Certified Development Corporation (CDC) processing fee as part of the Federal Stimulus Plan on 504 bank financing projects. This impacts loans approved by the SBA on or after February 17th. The funds to implement this program change are estimated to run through December 31, 2009, or until the stimulus funds are exhausted.

What does this translate into in real dollars as you put together your financial projections? On a $1,000,000 project where the bank is financing 50% and the CDC 40%, the borrower will save approximately $8,500 in fees. In addition, the rates are very favorable at 5.604% for a 20 year loan and 5.072% for a 10 year deal. These changes represent a significant reduction in fees.

Most banks in Central Indiana can offer 504 Loans. Companies have a few CDC's to choose from including Premier Capital Corporation, an Indianapolis-based nonprofit organization. By following the link to their website, you can utilize the tools that they offer to provide more information and to help with accounting for the program.

If you would like some help developing a plan for your corporate finance project, contact Milestone Advisors, a firm of Indianapolis business advisors who consult with CEO's of entrepreneurial companies throughout Central Indiana. Our management consultants and part-time CFO's can help you develop your business plan, finance model, and your capital structure.

Securing Financing for Your Business - Part II

Monday, January 19, 2009 by Jeff Good

As you can tell by now, being prepared is critical to anticipate the need for capital. However, adequate advance preparation will also help you answer many of the other critical questions that your banker will want answered. These questions might include:

Why do you need funding? How will the capital be used to help your business?
How much do you need and when?
Do you have a realistic business plan and financial plan to generate funds to repay the debt?
How strong is the management team? What is their experience managing and growing a company?

Sources of Funding

Picking the right source of capital is just as important to the business as actually receiving the money. Remember that lenders/investors will become "partners", in one form or another, in your business and will have different requirements, depending on the structure of the capital arrangement. Will they want an active voice in management decisions (e.g. a position on the Board)? What are their periodic reporting requirements and do you have personnel experienced enough to handle them? Will there be weekly meetings or status updates? Also, if you’re using debt, what is the interest rate on the loan and what impact will this have on profit margins and cash flow? While all of these requirements are not necessarily bad, they are often a necessary part of accepting funding from external sources and will, therefore, have an impact on your business. Some common sources of business financing are as follows:

Traditional Bank Financing – Local banks and credit unions are a major source of small business financing. If you need a short-term loan, a single-purpose loan, or a seasonal line of credit, your local bank may prove to be the best source. Banks can also offer other types of bank financing for specific situations.
Customer/Supplier Financing – Customers can often be sympathetic about your need to maintain good cash flow. In some cases they may be willing to pay up front for part or all of the services or products you supply. Or, they may respond to discounts for early cash payments that will free up cash for operating your business.
Factoring or Accounts Receivable Financing – A company with cash flow issues can turn uncollected invoices into immediate funding by assigning its accounts receivables to a factor or agent. Factoring usually involves high interest rates or a deep discount for which the factor assumes all risks involved with collecting payment. Nevertheless, factoring may be an appropriate vehicle in certain cases.
Working Capital Financing – This type of funding works like a line of credit that’s tied to your company’s receivables and/or the dollar value of your inventory. For example, you might request that your lender provide a 70% advance on qualified receivables or advance 50% of the value of your inventory.
Economic Development Programs – Many federal, state and local government programs offer small businesses loans and incentive programs. The funding is typically administered through banks, business development districts, and the Small Business Administration. Often, special consideration is given to ethnic groups, women, veterans and companies located in designated urban and rural locations. Funding through these special programs often requires a great deal of documentation and may also require that the company provide certain tangible assets, primarily real estate or equipment, as collateral.

Ways to Protect Your Business - Planning for Success - Part II

Tuesday, December 30, 2008 by Glenn Dunlap

Selecting the Right Legal Structure

The right legal structure can have a profound impact on the operating efficiency of the company as well as its tax treatment. The following highlights some of the different characteristics of each structure.

- Sole Proprietorship – One-person business where all business profits and losses are reported on the owner’s personal income tax return. In addition, the owner is also personally liable for the business’s obligations.
- Partnership – Business that is owned by two or more individuals, each of whom are personally liable for any debts or legal claims. In a partnership, each partner pays a tax on their share of the business income on his or her personal income tax return.
- Limited Partnerships – A partnership where the general partner is responsible for running the business and is liable for its debts. The limited partner(s) have minimal business control and no exposure for the business’s debts. This type of structure is taxed similar to a sole proprietorship or partnership if they comply with certain criteria.
- Limited Liability Companies – Business similar to corporations in that they provide limited personal liability for business debts and claims. But, the owners of an LLC pay taxes on their share of the business’s income on their personal tax returns, similar to a partnership.
- C Corporation – Corporation where taxes on business profits are paid by the corporation. The owners must pay individual income tax only on money that is withdrawn from the corporation as a salary, bonus or dividends.
- S Corporation – A corporation where all business profits "pass through" to the owners who report it on their personal tax returns, such as with a sole proprietorship, partnership and LLC. There are certain restrictions on the number of shareholders and other special rules that apply to S Corporations.

Managing Your Workforce

Imperative to the success of any business strategy is having a productive workforce that is able to help Company meets its business plan. As the business owner, it’s important not only to establish a philosophy and implement certain standards of performance, but also to clearly communicate this to your employees. Some things that you might want to put in place include a time recording system, a new employee orientation program, a training program that includes policies and procedures for dealing with internal controls, and a performance measurement system

Monitoring your employees’ performance and providing regular evaluations based on a consistent set of standards will put any employee on notice about his or her performance. It is also critical to document your discussions in writing to avoid disputes and to minimize exposure to legal or regulatory liabilities in the event an employee must be terminated.