Don’t get me wrong; a business plan is a useful tool. We write them for two reasons. Reason 1: It helps us as small business owners assess risk on paper so we can make an informed decision about the viability of the business. Reason 2:  Financial institutions want it to assess how risky you are as a potential borrower. A business plan is fiction. It is a fabrication; a story of what could be. I often hear entrepreneurs say when pitching a business plan, “Our numbers are very conservative”. No, your numbers are not conservative. They are fiction. They have not happened yet. It is all “Pie in the Sky” thinking. By its nature, a business plan is optimistic. No one ever comes into to the bank with a business plan that shows how the business fails in nine months.  Once you commence operations, all bets are off. Your business is in a constant state of flux. Customers, marketplace, and technology are continuously evolving. Your business plan needs to be continuously updated to reflect the changing business environment.

Here are some resources to help you draft your business plan:
SBA: How to Write a Business Plan
NSBDC's: Business Plans made Simple
SCORE's: Business Planning Templates and Tools
Seth Godin's: The Modern Business Plan
The Funding Roadmap: The Business Plan Reinvented

Operating Hours Sign Failure

I wanted to eat lunch at a Chinese restaurant that I have been to before. The restaurant serves its food buffet style. The food is good and so is the price; A perfect spot for a quick lunch. When I arrived at the restaurant, I was greeted by a sign on the door that said that the operating hours of the restaurant were 11am until 11pm, Monday through Friday. The time was 11:30am, clearly within their hours of operation. I was supervised to find that when I pulled on the door, the deadbolt was still locked. I looked in the tinted windows and thought at first that this restaurant had gone out of business. There was no activity to be seen. No people, no greeters - the lights were even off. Then some motion caught my eye. It was the golden lucky cat figure that the restaurant has in the waiting area. The lucky cat was waving its paw - someone had to have turned it on. Perhaps the owners of the restaurant had forgotten to open their doors or they had lost track of time. With my face pressed against the window, I scanned the interior for additional signs of life. The buffet steam tables sat in the back of the establishment and a you could note steam coming off of the heated water. There was steam, but no food. A couple standing nearby told me that they had been waiting since 11am for the anticipated opening. They had not seen anyone either. They should open soon, I thought, I sat down at an outside table under the front patio of the business. While I waited, I observed. More than a dozen potential patrons approached the restaurant in anticipation of the same quick lunch that we were hoping to eat. Each one of them did the same thing that I did: they tried the door, pointed to the sign where the operating hours were posted, and pressed their faces to the glass to see why there were incongruences between the sign and the locked door. They all saw the lucky cat just as I did. I was fascinated by the duplicate behavior and the disbelief the potential patrons had when they found the information on the door to be untrue. I decided to wait until noon to see if the place would actually get it together and open for lunch and to observe how people continued to act towards the sign on the door. Just before noon, a large family approached the door. Their behavior was identical to everyone else’s. To my surprise, a man dressed as a cook came to the door. Instead of opening the door, he made hand signals to the family that he needed more time before they were to open. The family pointed to the sign on the door in protest. They were annoyed that he would not let them in and soon left. At noon I left as planned. As I counted the people who tried to eat at this restaurant today, my count came to 15. Each of them including myself had expected to eat at the restaurant. All of us left disappointed. Those 15 people could be the profit margin for the day for that business. How many of them will post on their Facebook page a negative comment about this experience? How many will never return?

The Importance of Signs as Brand Promises

We as consumers are exposed to hundreds of signs every day. What is amazing is that we believe what we see on a sign. We take them literally at face value. We are so used to being directed that we rarely question if the information is correct. Signs are brands. A brand is a promise of an expected product or service. We all expected that the brand of this restaurant was that they were open at 11am. They were not. They lied. Their brand lied and broke the brand promise. Now the only brand promise we have is that their brand is unpredictable. Unpredictability in the marketplace does not fetch a premium price. It gets what is leftover, because that is what it deserves. No one should have to beg a business to take their money. A business should make it easy for customers to transact with them. If the business was having a problem that day, they needed to communicate that with their customers. A simple piece of paper that said "Sorry, we are opening at 12pm today" would have been sufficient. That would have preserved their brand with the 15 of us and kept their brand promise; even if we would have chosen to go elsewhere for lunch. A sign is a brand promise. Customers will hold you to your sign. It is your unwritten contract with them. Don’t break promises to your customers. This restaurant will need more than a lucky cat to help them survive if this is the way they keep their brand promise.


Photo: Steve Snodgrass, Creative Commons License, Some rights Reserved

I have had many inventors as clients that come to me for marketing assistance. They all have the same problem: the product isn’t selling. They all came up with a brilliant idea, patented it, found a manufacturer, and sunk their savings into production run of their invention. Now they are broke, sitting on a garage full of their great idea gathering dust. What is really funny is that most of the inventions seem like they would sell. They seem like wow! This is a great product! But, no one purchases the product. Sometimes the best inventions don’t sell in the marketplace. Sometimes the best product doesn’t sell. Consumers are fickle. They are taken by fads. They are predictable in one moment and erratic in the next. Even when the product is extensively tested in the marketplace there can be unpredictable results. Just ask Coca-Cola. Remember “New Coke” formula that was introduced in April 1985. It tested well in focus groups. It was abandoned 3 moths later due to 400,000 complaint letters and phone calls that Coca-Cola received from disappointed customers.

The National Export Initiative:
Double U.S. Exports in the next 5 Years
On March 11, 2010, US President Barack Obama signed an Executive Order which formed the National Export Initiative (NEI). NEI has the broad goal of improving conditions that directly affect the private sector’s ability to export. President Obama’s plan has the goal of doubling exports from US companies in the next 5 years. The NEI calls for removal of trade barriers and advocacy assistance directed especially at small businesses to help them overcome the barriers of entering new export markets.

The National Export Initiative: U.S. Priority Markets
There are several emerging market countries that the NEI has identified as priority export targets for US products. These countries include: China, India, Indonesia, Taiwan, Thailand, and Vietnam. The NEI has put together a series of videos about doing business in these markets. All of this excellent information is contained in the Federal portal for international trade: Export.gov.  Visit the International Trade Administration’s YouTube Channel for over 50 webinars about doing business in regional environments.

The Trade Information Center
For additional information or general trade questions, you may contact the Trade Information Center (TIC) at: 800.872.8723 (1-800-USA-TRAD(E)), or send an email to: tic@trade.gov The TIC operates between 8:30 AM & 6 PM EST.  You can get answers to your exporting question topics including: Tariffs, International Documentation, Logistics, Free-Trade Agreements, Country-Specific regional Information, Trade Data, and General Export Information.

U.S. Export Assistance Centers
The Commercial Service has a network of U.S. Export Assistance Centers that house export and industry specialists. These centers are located in more than 100 U.S. cities and over 80 countries worldwide. These trade professionals
provide counseling and services to assist U.S. businesses in exporting their products and services. They can assist in: Assessing market potential for your product or service, develping and implementing a market enrty strategy, and identifying potential trade partners in foreign markets. 
  

Indonesia http://www.youtube.com/watch?v=FrBuHAIsK-4&feature=relmfu

PayPal Steps Up: Mobile Payment Solution with PayPal Here
PayPal just announced their newest venture called PayPal Here. It is a competitor to Square. The only question many have is: why did it take them this long to release it?
Get the reader from PayPal.

New Features on the iPad
Today the new, third-generation iPad went on sale at Apple stores around the world. The iPad 3 brings many of the innovations that Apple has released with the iPhone 4s to the iPad line of devices. The first in a laundry list of new features that the new iPad has included is an enhanced Retina display that boasts 3.1 million pixels and a 2048 x 1536 resolution. The new iPad is powered by the A5X chip which despite the enhanced performance, Apple claims will still command a 10 hour battery life. The new iPad features a 5-megapixel, 1080p, full HD, iSight video camera. The camera will shoot 5mp stills and has built in face recognition software that auto balances exposure across up to 10 different faces. The aperture on the new iPad is an f/2.4 which lets in more light and produces better looking pictures. The HD video also has auto stabilization built-in. The SIRI voice software which was released on the iPhone 4s, enables voice dictation. The new iPad additionally has the latest 4G LTE wireless technology. International travelers will appreciate the ability to use of a local SIM card to get a connection while traveling.  A new first is that you can use the new iPad as a personal hotspot. You can connect up to 5 devices as long as your carrier supports it. You can also use AirPlay on the new iPad to stream videos, photos, and music to your HDTV via Apple TV or to AirPlay enabled speakers over a Wi-Fi network. The device is the same size as the iPad 2 with the exception that it is slightly thicker in the middle, however the edges taper more and it is hardly noticeable.  All features combined, the new iPad comes with several new features that could convince iPad2 users to upgrade.
 
Using the iPad in Your Small Business
The iPad is a great device for small business. Ease of use, intuitive interface and instant-on capability make the iPad a laptop replacement about 90% of the time. It browses the web with ease, and handles email very well. It is also an all-in-one entertainment device on which you can watch a movie, play a game, or read a book. One of the things I had a hard time using the iPad2 for was writing. To compose an email with the on-screen keyboard is tolerable; however, writing a 5 page article was not something I would have even attempted on the iPad2. The voice dictation capability that is now built into the new iPad might convince me to write or speak my newest article. This makes taking my heavy laptop even less necessary. The iPad gives you instant access to information. Agility gives small business a competitive advantage.  If you can apply the technology of the new iPad in your small business, you will enhance your marketability. 
 
Photo Credit: Leon Lee

The Small Business Google Search Nightmare.
One of my clients is a local handyman. He came in to talk with me about marketing his business more effectively. He was concerned because his clients weren’t finding his business online. I typed the search term “handyman las vegas” into Google. The Google search returned 2.2 million results! We don’t even have 2.2 Million people in Las Vegas. My client was also not pleased to see his closest 25 competitors fighting it out on the first page of Google’s search results. He asked me how it was possible for a small business to compete against so many similar businesses. Our conversation led to a discussion on Differentiation. 

What is Differentiation? Be Different – Be Better
Differentiation is strategically deciding to make your business different from your competition, while at the same time making it better as well. Differentiation allows companies that sell similar products to justify pricing fluctuation between brands. For example, Texaco, Shell, Citgo, and Chevron all sell gasoline. They all charge differently for their product. Why? Because each product has been differentiated from the other. In Las Vegas, the most expensive gas comes from Chevron, then Texaco, Shell and finally Citgo. Citgo is sold exclusively at 7-11 convenience stores. One of the ways that Citgo is differentiated from Chevron is that you can buy a Slurpee and a BigBite hot dog while you are pumping gas. At Chevron, Texaco, and Shell you can’t. But you probably can purchase a car wash. Many Chevron, Texaco, and Shell stations are paired with car wash services. This is something that you will rarely see at a 7-11. You have to be able to set your business apart from your competition and then be better.

5 Tips on How to Be Better Than Your Competition
1. Make differentiation part of your overall marketing strategy
2. Know your customers and give them what they want and need
3. Don’t try to compete head-to-head with a rival. Find your niche instead
4. Add value in all areas of your business: Operations, Finance, and Marketing
5. Branding helps you remember your promise to your customer 

Pepsi NEXT - The Newest Mid-Calorie Soda 
Pepsi is making a big move into the "Mid-Cal" cola market with it's newest product called Pepsi NEXT. NEXT will hit the shelves March 26th and promises 60% less sugar with all the cola taste. Pepsi hopes to attract the lucrative market of people who have left traditional sodas for lower calorie enhanced waters, sports drinks and bottled teas. This product comes on the heels of many failed products in this segment including Pepsi's own Pepsi Edge, Pepsi XL, which had both been pulled from production by 2007. There is a renewed sense of hope since the launch of Dr Pepper Ten, Dr Pepper Snapple Group's 10 calorie soda last fall. The Dr Pepper Snapple Group is currently testing a line of 10 calorie sodas they hope to release to the general market. Both Pepsi and it's market dominating rival, Coca-Cola, have had market declines in recent years due to heightened public awareness to health risks related to the high-sugar content in soda. Pepsi, hoping to regain some traction in this market, is rumored that it will invest more than $600 million this year to market Pepsi NEXT.

Pepsi NEXT Commercial : Drink It to Believe It
Advertising agency TBWA/Chiat/Day produced a television commercial that features a young couple and their crawling toddler who is ready to stand and walk at any moment. The video-camera ready couple is prepared to immortalize the moment. The commercial shows the exited couple trying and praising the new drink. At the same time the baby, who feels neglected starts to perform tricks in the background to regain the parents attention. The parents are so enamored with the new product that the mother pulls out the video camera to document the wonderful new Pepsi product instead of the baby. The baby who is trying to get the parents attention progresses from standing to walking on it's hands to dancing and then ultimately playing a Fender Flying V guitar. The Pepsi NEXT loving parents miss the whole thing, but are satisfied with the amazing new drink they have discovered. In addition to the commercial, Pepsi NEXT will be promoted digitally via a Facebook campaign, and sampling efforts to get consumers to taste Pepsi NEXT will take place in more than 800 Walmart stores. The real question is: will Pepsi NEXT deliver the needed boost in sales that Pepsi needs in this segment? Only consumers will answer that question.

_ Life Without Square: The Hassle of accepting Credit Cards
Dealing with the hassle of taking credit cards was something small business owners used to dread.  A merchant account had to be set up with a bank or financial institution.  The merchant was charged a monthly service fee.  The fee was sometimes as high as $50 a month.  In addition to the fee, business owners had to rent or purchase credit card processing equipment.  This also included purchasing consumables such as paper and ribbons for the receipt printers.  This often proved expensive for the small business owner.  Thanks to a San Francisco based company called Square, the hassle of taking credit cards is now over.

How Square Works: Everyone Can Accept Credit Cards Via Mobile Devices
Square was created by Jack Dorsey, one of the founders of Twitter. Square's mission is to remove the barriers for small business owners to accept credit cards.  Square is simple.  It is elegant and easy to use.  The most important feature of using Square is that your clients feel secure with the transaction.  Square allows you to accept credit card payments on your Android, iPhone or iPad with the free square card reader device.  Square will send you a free Square card reader to plug into the audio port of your mobile device.  You can sign up and install the app in just a few minutes.  You can then begin accepting credit cards!  Your customers can review their purchase on your mobile device and even have a tip added to the bill.  After their credit card is swiped, they sign a signature line on the screen with their finger.  Customers instantly receive an electronic receipt via text or e-mail, which makes them feel secure about the transaction. Square charges one simple rate: 2.75% per swipe for MasterCard, Visa Discover and Amex.  Unlike most credit card processors, square charges no monthly fees.  The funds are deposited into your bank account the next business day.

Square Lets Small Business Owners Accept Credit Cards Via Mobile Devices
Even if you run the one person micro business, you have a need to accept credit cards from your customers. PayPal made it easy to accept payments online. Square now makes it easy to accept payments in person with a mobile device. Expect to see Square being used by your hair stylist, gardener, babysitter, or anyone you currently pay in cash. All you need is a mobile device and a bank account to accept payments. Square is making the process easy and fun as well. Small Business owners: get one of these now and get set up to take credit card payments. Your future sales may depend on it.

Visit http://www.squareup.com to order your Free Square Card Reader