Business Implementation: Dormant seeds (Part 2)


Some business plans are excellent, but due to various factors, it might not be practical to implement some of them at certain times. Factors affecting this may include, the financial or physical disposition in terms of the originator’s time and resources.

One person once said that “the worst thing that can happen to a person is for him to become successful before he is ready”. It is not the actual resources that determine whether a person will succeed in any given venture or not, because resources in nature are temporal in that whatever is in this earth will pass away.

If you take this into account, then it is easy to realize that conditions or micro climates as those in a greenhouse scenario can be created in order to suit the needs of your business.

The successful implementation of a business model depends on the drive that the initiator of the model has. In the bible there is a king that was asked to thrash the floor with an arrow, instead of thrashing the floor several times signifying  the assault on his enemies, he did it only thrice and as a result he realized a victory that was way below the capacity that God had intended upon his life.

The same thing applies to the successful implementation of business models in our lives. We are all equipped with knowledge in certain unique, and sometimes not so unique areas of business, but it is important to note that we each have our own unique way of doing sometimes even the same things.

That is why in life some people realize more successes than others. It is the degree to which you implement the plans that are sown into you that determines whether you will succeed or not.

Usually, timing is useful but it does not constitute the total success or failure of the venture.

However, some models are heavily dependent on certain laws and circumstances for example the money market in Zimbabwe in the late 2008 period was a total disaster with investment in it at that time virtually impossible.

Fund investors reliant haevily in this sector were badly impacted, but this was a temporal scenario, with the introduction of multicurrency trading in Zimbabwe leading to an improvement in the trading conditions.

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The Root (Part 3): Support System


The most essential thing that you have to understand about one of the most essential parts of a plant, “the root” is to understand that it has the massive backing of the plant.

In business, you have to realise that you need to take care of your business in order for it to take care of you. If you are to reap any fruits from the investment input into your business you have to ensure that its internal clockwork and functions are at their optimal point.

Some plants can easily be reproduced by making cuttings from the parent plant. The new plant/cutting, continues to survive for a short while without some of the most essential elements as the roots and leaves.

It would not be a wise thing for a plant to assume that it can continue to operate in such a way for a long time.

There comes a point in the new plant’s “reasoning” that the plant realises that it has been separated from its source of nutrition and the time has come to develop an independant system.

If the plant fails to produce the necessary organs such as the leaves and roots because it thinks it is still alive, it will suddenly wake up one day and the internal storage would have been exhausted subsequently leading to its wilting and death.

If you neglect the most essential drivers of your business as it reaches its maturity, it may suddenly whilt and die on you. And you wonder what happened.

The business would have been operating very well for the last 12-15 months and because the systems in place appear to be operating very well. There is need to continualy review the systems in place and assess the functions, viability and overall feasibility going forward.

There is a need to continually review each and every function to make sure that it is well catered for and is able to perform its function to the best of its capability.

Some things that were efficient whilst you were serving five or ten clients may no longer be as feasible when there are now 25 to thirty clients.

New equipment may need to be purchased, vehicles acquired, software upgraded, buildings upgraded and refurbished. There are so many intricate details depending on the type of business that you have to look out for as you progress in business.

The bible says “do not restrict the horse that treads the corn.” There are certain “perks” that are derived from working in certain industries, at times these appear to be irrelevant to the operations of the business.

However they offer a certain level of satisfaction and quality of life to the employee.
These need to be regulated in order to ensure that the company suffers minimal loss from these activities but gains in improved perfomance from the employee. They can be used as moral boosters and perfomance enhancers ensuring that the core objectives of the business are achieved.

They say a hungry man is an angry man, this is obvious in many day to day business activities in a lot of our companies. We have seen industries being brought to their knees because the employees have been neglected.

The key unit of any business are its employees and if they are mistreated or given a package that is below the standard that a normal being can operate under, then the business owner is simply sitting on a ticking time bomb.

It is only a matter of time before the employee bomb explodes on it.
I am continually amazed at employers who choose to neglect and abuse their employees through poor pay packages as compared to the actual business net revenue and poor working conditions.

Whilst a dollar here and there is saved in the short run by employing strategies that disadvantage the employee, an employer should be wary because watering down the wine is a dangerous strategy.

Shortcuts in business are the quickest way to failure.

A strong, secure, solid employee root base ensures that the business system is founded on a solid rock.

“The Money Tree” : Land Preparation – Part 1


In any business, it is essential that you make sure that you do the ground work first before you begin to inject any of your seed.

Shoddy preperation, no matter how good the seed input and effort thereafter may rob you of the potential output from your input effort.

First impressions count.
The most important thing that you can have from a client is his confidence. Confidence in your ability to get… not just barely get the job done… but do it excellence, in a classy manner.

Confidence in your ability is the client retainer. Clients will come back for a second sale based on how impressed they are based not only on the work you have done but also the impression and perception they have of you.

It is this perception that markets you and extends your reach and influence.

On the other hand you should take note that you create an environment that suits the type of business. You have to, “dress the part, so to speak”.

There is absolutely no need to present an exterior that is clearly innappropriate for the job, for example going for an interview that seeks a proffessional plumber, gardener, landscaper or handyman putting on an expensive suit.

That is clearly not aligned with the job at hand, and if a suit sits well on you (like it does on me) you may have a difficult time convincing the interviewer that you are capable of getting the job done at all.

Appearances need to be appropriate for the job at hand, but then there is an added advantage for going the extra mile. For example a free lance photographer who shows up already in gear equipped with some cameras is at an adantage to one that just…. well for lack of a better word.. that just shows up.

The business premises reflect the characteristics of the culture and nature of the environment at the firm. In my gardening example, a farm that is producing crops in the middle of weeds, with stones dirt and garbage openly visible would greatly hamper the prospects of a potential supplying contract with a major buyer.

Likewise, the office environment speaks volumes about the attitude of the firm and its employees about its associated business. It is the responsibility of the principle promoter, that is the owner or manager of the business to ensure that the bar is set in terms of visible standards of organisation and seriousness.

A client walking into a building should not get lost! If the reception area is lost in a labyrinth of dark passages and corners, it is highly likely that you will lose more clients than those you gain.

I have been in situations where I end up knocking on the “Senior” Manager’s office, just to get directions to his receptionist, but that obvously defeats the very purpose of the system.

The layout of the firm is very essential if speedy and efficient execution of the work is to be done.

So a significant amount of time has to be spent in “clearing and preparing the land”, a well designed and good product may be discredited by the appearance that is displayed by ist handlers.

The environment has to be set up in a manner that allows for the free flow of information and the efficient transfer of goods and services.

In a set up where by production or manufacturing of the said product, it is advantageous to ensure that the client is kept as far away and as unaware of the hustle and bustle of activity.

I know of several people who just love to eat chicken meat but cant stand the sight of blood and would not want to be anywhere near a place were chickens are being slaughtered.

Thus it would be very unwise to have a butchery, were if one just peaks behind the counter, they can clearly see the slaughter house in full swing.

The Money tree: Part 1 Seed ~ Reliable Supply


This is a continuation of  “The Money Tree” series, you are advised to read the preceding posts uin the series before continuing as it will prove more beneficial, but, it is possible to grasp the concepts in this post alone.

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As we earlier alluded, clients place a high degree of trust and
confidence in a supplier of a product, especially if the product
relies heavily on repeat sales, which is what virtually forms the
cornerstone of all serious business models.
The strength of a firm is heavily dependant on the confidence of the
clients on the stability and the consistency of supply of the product
by the firm.
No right thinking individual would like to become dependent or reliant
on a firm to supply a product and makes plans with that in mind would
be pleased to discover that the firm can no longer maintain
a consistent supply.
More than just an exchange of goods/services and cash takes place
when a sales transaction takes place. It is as if a silent gentleman’s
agreement is made between the two parties.
The buyer trusts and believes that he is purchasing a good that will
meet a stated or implied need to the best possible ability of a good
in that category for the stated value.
And the seller is of the confidence that the buyer is purchasing the
good with good intent and will further promote the growth of the firm
by repeat sales or spreading the goodwill of the firm by word of mouth
or other and will not spoil the reputation of the store by engaging in
otherwise negative behaviour.
So the two enter into an unstated relationship that is expected to be
strenghtened with time in a good business relationship.
However the said relationship can be spoiled from no intention of the
firm by a failure in the supply of the seed input by their source.
This has the ripple effect of causing the firm to break the supply
chain to the consumer, thus breaking the sacred trust entered into by
the two parties.
A case of such broken trust may be so intense that repairing it may
prove too hard a task to be achieved within one lifetime. For example
a small town pharmacy which is the sole supplier of asthmatic medicine
fails to restock on this medicine and someone in the town suddenly has
an asthmatic attack and the individual is out of his prescription.
Such a case may be fatal, and regaining the confidence of the family
or the entire town for that matter may be something that will take
generations to achieve even though the failure to restock may have
been as a result of no fault of the pharmacy.
That is why you find in the developed world, a firm can actually sue a
supplier for damages incurred by failure to supply. A household might
not sue a bakery for failure to supply bread, but they may label that
bakery as unreliable after spending a morning lacking bread and switch
to another and advise any of their friends and family to do likewise
thus ruining the reputation of the firm.
Thus concludes my argument on the need to ensure a reliable supply of
your seed input. Please join me in the next blog on how to assess the viability of  a supplier as a going concern as we take a look at simple indicators that a firm may be liable to face supply problems in the not too distant future

The Fine Print 2


Please ensure that you have read “The Fine Print” before reading this note.

“The Fine Print” series is focused on PRACTICAL implementation of business strategy.

Take baby steps. There is no newly born baby that just got up and started walking.
Business and any project that you are going to carry out involves a certain level of coordination effort and experience.

If you do not have the capacity or resources to immediately carry out your project in its entirety, you may have to take the winding path up the mountain by building up to your vision.

Sometimes it may be necessary to take up other projects that are intended to finance your ultimate vision or goal.

Lets take our million dollar target at the end of twelve months example, (this is assuming that you have read the “fine print” post. If you havent, u may need to do so), you may have find it beneficial to build up to the set target rather than attempt to make $1200 per day if you are an ordinary person like me.

Urban legend tells of a guy who did a small job an got a few dollars, with those few dollars, he managed to buy a cluster of bananas.

He took them and sold them managing to double his income in the process, instead of spending the profits, as most of us would, he bought two clusters the next day, and the next day he bought and sold four clusters, this continued for a while until the man owned a chain of stores and was making thousands per day when he started out only with a few dollars.

So that may seem like an old story, but the ingrained concepts remain the same throughout ages.

In simple terms what I am saying is, consider a step by step financing system. Start off with a smaller business model and work your way to larger models with a larger cashflow and net revenue.

As we stated earlier keep your main focus on the bottom line. Some businesses involve a lot of cashflow, which is basically a lot of money exchanging hands, but the net gain realised in each transaction is very low.

These businesses are found for example in the form of retailing. These may be very dangerous because they depend entirely on a high rate of goods turnover. You should only take up such a business if you have a lot of implicit knowledge about the industry and market in question.

However once you gain a significant market share, they often prove to be a reliable source of a constant cashflow.

Anyway back to our discussion, it may prove useful to start off with a business that requires low levels of cash input to start off and build up the client base and rate of turnover on this one business until you have a unit that is able to stand on its own without much intervention from you as the principal.

Please note, this is the most critical aspect, the business should be replicable and be able to run on its own after a while without your constant monitoring. That is the key ingredient. If that does not happen, the model will not work. (We shall have to dedicate a section to discussing how to make an independant business model)

Now it becomes possible to take some of the profit generated by the initial business and direct it towards a new business startup financing.

Some entreprenuers may find it easier to sell off the business and take up the total recieved from selling the business and start a totally brand new project.

But my thoughts are that if something works, why shut it down? In business the gambling principle that you should get out while you are still winning does not hold true. In business you create your own luck (we shall also discuss this topic in detail later).

So once you have a small business running on its own independent system, you are now free to take up that extra net income and direct it towards financing a new bigger business that generates even more cashflow.

Please note that this method is relatively safe, but there is a possibility of making a few errors along the way, but do not be discouraged, because your initial investment is still quite secure.

As you continue to set up functional business systems, you take up bigger proposals and begin to generate even more net revenue.

The intention is to create an exponentially increasing business model composed of several little business models within it. It may sound a little complex, but it is the safest method of startup, because as you gain experience in running a small business model you gain the confidence to expand and realise greater income.

To be continued…..