3 AESOP FABLES TO MAKE YOUR BUSINESS BETTER!

1.     The Crow and Mercury

A CROW caught in a snare prayed to Apollo to release him, making a vow to offer some frankincense at his shrine.  But when rescued from his danger, he forgot his promise.  Shortly afterwards, again caught in a snare, he passed by Apollo and made the same promise to offer frankincense to Mercury.  Mercury soon appeared and said to him, "O thou most base fellow? How can I believe thee, who hast disowned and wronged thy former patron?'

DID YOU GET THE POINT?

KEEP YOUR PROMISES!

Your customers expect you to deliver on promises made to them. If you’ve offered to do the job for half the price of the competition then do it and do it well! Do not shy away from fulfilling obligations to customers simply because you have become ‘better off’ and you think you wouldn’t need them again. No matter how difficult it is to deliver on promises made to clients, it is best if you just do what you say. This leads to trust, trust leads to preference of your product or brand, sustained preference leads inevitably to dependence and dependence (boy that is what you want!) ensures REPEAT PATRONAGE!

The crow in this story forgot that bad word of mouth would lead to future problems. Even if your customers do not complain, others who saw how you treated them deceitfully would not give you their business.

In short:

“Just let your word Yes mean Yes, your No, No.” – Jesus (33CE)

2.      The Dancing Monkeys

A PRINCE had some Monkeys trained to dance.  Being naturally great mimics of men's actions, they showed themselves most apt pupils, and when arrayed in their rich clothes and masks, they danced as well as any of the courtiers.  The spectacle was often repeated with great applause, till on one occasion a courtier, bent on mischief, took from his pocket a handful of nuts and threw them upon the stage.  The Monkeys at the sight of the nuts forgot their dancing and became (as indeed they were) Monkeys instead of actors.  Pulling off their masks and tearing their robes, they fought with one another for the nuts.  The dancing spectacle thus came to an end amidst the laughter and ridicule of the audience.

DID YOU GET THE POINT?

      a.     CREATE A LOVABLE PERSONAL PRESENCE!

Your dress and grooming - a subset of your personal presence- has a huge effect on how people perceive you. You must dress and groom according to the standards of the industry you are consulting for.

Aside from dress and grooming, your speech and actions affects your business growth, so talk like a professional, be confident and assured and the business may just keep coming your way.

Even the monkeys in Aesop’s fable got all the attention in the world and they were respected because they dressed well!

In short:

“Dress British, think Yiddish” – Unknown

      b.   IF IT IS TOO GOOD TO BE TRUE, THEN IT PROBABLY ISN’T TRUE!

You want to undertake a business endeavor – or thinking of hiring a new staff to fill a delicate position- the prospects look stunning and the stats are just perfect! But the whole thing just doesn’t feel right.  Like masked, royally adorned expert dancers? Too good to be true?

Then do not hesitate to investigate!

Beneath that entire fancy garb might be a fraud masquerading as the real thing. Ask questions, satisfy your curiosity. Ensure you make sound decisions based on facts, not on emotions

In short:

“Not everything you see is what it appears to be”

3.   The Crow and the Pitcher

A thirsty crow comes upon a pitcher with water at the bottom, beyond the reach of its beak. The thirsty crow tries hard to push the pitcher over but the heavy pitcher won’t even budge. Then the crow happens upon a fine idea. It drops in pebbles one by one into the pitcher until the water rises to the top of the pitcher, allowing the crow to drink.

DID YOU GET THE POINT?

      a.     USE YOUR HEAD: THINK, THINK, THINK!

The Crow and the Pitcher is one of Aesop’s most studied fables and is numbered 390 in the Perry Index. This story stresses the virtue of ingenuity.

You will always be a market leader if you look for smarter and smarter ways to satisfy your customers. If your solutions are trendy, modern, more efficient, then you just might be in business for a long long time.

Steven Jobs was a master at being ingenious; his tablets produced for Apple became popular simply because it afforded customers the ability to do the same things (computing) in a new and more interesting way.

The future belongs to those who look for new ways to solve old problems!

In short:

"Thoughtfulness is superior to brute strength." - Avianus

      b.     DON’T GIVE UP: KEEP TRYING!

A basic lesson from this fable that should not escape the mind of a shrewd business man is this: the crow was persistent. 

The crow did not abandon the pitcher in frustration when it could not turn it over. Think about the number of times it would have to go get pebbles in its beak to drop into the pitcher. Now that is persistence!

As a businessman, you should persistently try to find solutions to problems, not run away from problems. Solutions earned through hard work, does three (3) things for the businessman.

            i.         the lessons learned are ingrained and permanent

            ii.       there is now an increase in self believe and confidence to solve other problems

            iii.       the joy of being "so smart" is a great feeling

In short:

'Where there's a will, there's a way'. - Unknown

IS YOUR PERSONAL PRESENCE WORKING AGAINST YOUR BUSINESS SUCCESS?

“Just when the caterpillar thought the world was over, it became a butterfly” - Anonymous

As an entrepreneur, you may be quite skilled and knowledgeable of your area of business. You may even possess qualifications that stand you out as exceptional in the market, but you may find out that business is going away from you rather than coming to you.

What might be responsible for this? While I cannot say specifically what may be in all instances, research has shown that a common denominator of such situations where you are skilled and knowledgeable and the business does not come to you is your personal presence.

But what is your personal presence?

Your personal presence consists of “how you dress, how you conduct yourself, how you use your voice and how others experience your persona when you are with them”¹

People naturally are drawn to people that are just like them. You must act dress, speak and act accordingly.

Best-selling author Diana Booher in her book Creating Personal Presence – Look, Talk, Think and Act Like a Leader classifies your personal presence in four categories viz:

1.       How you look

The way we appear to others has a huge impact on their perception of us. As a businessman, you must have the right look to earn the confidence of current and prospective clients. In fact looks are SO important; you must give it serious thought. A popular cliché is “dress English, think Yiddish”.  Dress to be accepted by the people you are calling on and consulting with. Avoid clothes that make you mundane. Do not wear flashy jewellery, expensive gaudy watches. Before approaching prospective clients, take a good look at yourself in a full length mirror. Do what you see match what you’d like to see? Do you need to start trying to lose some weight? Does your wardrobe need some updating? When in front of the client, translate your body language to credibility.¹

2.       How you talk

Nothing puts people off more than another person who is seen as not knowing “how to talk”. An arrogant professorial manner makes others feel insulted and would ultimately lead to their despising you and the business you stand for. The thing to avoid is to say only the right things at the right time and leave the wrong things unsaid during emotionally charged moments.

Apart from what you say, how you sound also has a direct bearing on whether you would get that business. The book Independent Consulting-A Comprehensive Guide to Building Your Own Consulting Business, provides the following advice: “tape your voice. Do you like what you hear? Does your voice have the qualities of resonance, vitality, clarity and support you’d like?”² It is best to speak before some friends as you would before a prospective client and have them criticise your speech, with emphasis on the tone and quality of the speech. Words of caution though; while you do not want to appear timid and not in control, do not also sugar-coat or embellish your credentials or abilities. Remember; only say things you can reasonably offer. The Latin maxim nemo dat quod non habet should guide you here. It means roughly: you cannot give what you do not possess.

3.       How you think

To be successful, you must think strategically. This involves organising in your mind the key variables and throwing away the clutter which inevitably labours the thought process. The ability to in many cases proffer on the spot solutions for your clients is a big plus to your personal presence. You need to be able to think on your feet while under pressure. Always take a point of view and ensure it is the right one, then think it through without allowing emotions to cloud your decisions. You must be able to organize ideas coherently and think in pictures as it were. Such thinking will help you communicate your ideas in a more colourful and impactful way

4.       How you act

The way you act is the final piece in the jigsaw puzzle that is your personal presence. You need to act in a confident and calm manner. Note though that confidence and arrogance are two different unrelated concepts. A confident person shows of enough self believe to convey to clients his technical competence and professionalism without offending such clients. If you need to take a different position from what your client is taking do so in a calm manner.  Make commitments when you communicate, show your clients that you appreciate their business. In order to be persuasive, create an atmosphere of working together. Do not concentrate on your achievements; no one wants to hear how good you think you are. Concentrate instead on showing them what they stand to benefit by using your product/service.

On a final note, it is important to here say that if your intent is to add value to your clients business, that intent would come across in what you say, how you say it and in how you act. Your client should hear it in your voice, in your language and in other forms of non-verbal communication. Be genuine, have a good sense of humour. Demonstrate to your clients your thoughtfulness and act with impeccably good manners.

So take a long honest look at yourself and at your business practice. Do you see areas to improve your personal presence? An honest assessment would bring these areas to the fore and help you develop a sound personal presence that would work for and not against your business success!

References

1.         Diana Booher, Creating Personal Presence – Look, Talk, Think and Act Like a Leader. Berrett-Koehler Publishers, 2011

2.       David, Kintler et al. Independent Consulting – A Comprehensive Guide to Building Your Own Consulting Business. F+W Publications, 1998.

Capsule 1: Positivity

Capsule 1: Positivity

Nothing tastes sweeter than victory.

 

The sheer joy that comes from triumph totally obscures the pain and effort involved in its achievement. But success does not just fall into your lap, IT COMES FROM DEVELOPING A WINNING ATTITUDE.

 

To achieve the unimaginable, to break boundaries, to evolve into the super you, you need loads of positivity - the believe that you can.

 

Barack Obama's presidential campaign was made alive by this desire to win against all odds. His campaign slogan infused his team with a lot of positivity and made them drive themselves harder to do the eithertofore unimaginable. All through the campaign in 2008, the words: "Yes We CAN!" drove the Obama campaign team and spurred it on to great success.

 

Notable American tech expert and enterpreneur Steve Jobs also had a can-do spirit. His remarkable success was due to the firm conviction he had in himself and in his ideas. He did not feel that he was inadequate nd incapable of meeting challenges, instead he  faced challenges with a lot of positivity.

 

A positive person totally believes in himself and does not for a second feel that a set target/task is impossible- difficult yes, but never impossible.

 

Think for example of David in the Bible. Up against the most feared warrior of his time- a gaint warrior, several times bigger, several times more experienced, several times more dangerous- David did not doubt the possiblity of overcoming the fierce Philistine. In your daily endeavours, you need that kind of attitude. a good mantra to adopt should be: IT IS POSSIBLE, I CAN DO IT!

 

A word of caution though.

 

The positivity here encouraged is not a thoughtless recklessness based on emotions but an intelligent force based on hard evidence and competence.

 

Remember to always say to yourself: IT IS POSSIBLE, I CAN DO IT!

BUSINESS PLANS

In this second part of a four-part paper on business plans, I look at what you should include under each plan element discussed in Part (1), what guidelines you should follow in writing your business plan and where you can get help and advice in writing a business plan and in developing financial projections

Writing a Sound Business Plan – A Dummy’s Guide

As we have seen in the previous paper, a sound business plan is an essential part of a business man’s armoury. As you write your business plan, remember to bear the reader in mind. The business plan is not a theoretical composition filled with technicalities and bogus high sounding terms. It is your description of what your business is now and what you want it to be in the very near future.  Think of it as an opportunity to tell others how sound your business is and how much better it can get.

So, always write in your own style. There is no place for being too technical. Just say what you want to say in the language of your business and industry.

While writing, avoid exaggerating.  The truth may not be as flowery as some cooked-up scenario, but the truth trumps fallacies always. Also do not make unrealistic claims about your business’ future prospects. Base your projections on hard evidence! Write only what you can back up and prove.

Avoid verbosity. There is no need to embellish or elaborate to an excess. Just say what is necessary.

Make reference to other key staff in your organisation and the role they would play in the organisation’s future success.  Also remember to acknowledge outside professional help.

Do not include confidential information. You do not know into whose hands your business plan may find its way.

You are not allowed to be grammatically wrong. Typographical errors are largely unpardonable

Okay. Now you know what to avoid.

What should be included in the plan elements?

1.   Cover Page

Should include

a.       The title

b.      Date of preparation

c.       A statement showing that the document is confidential

d.      Contact information

          i.   Company name

          ii.   Address

          iii.  Phone numbers

          iv.  E-mail addresses

          v.   Principal contact person

2.   Table of Contents

Should be structured in such a way that “readers can quickly find the part that interests them”¹

3.   Mission Statement (should be limited to one paragraph)

Here you tell the reader exactly what your business is. Should specifically state

a.       The purpose of the business

b.      The target market

c.       The factors that make your business and its products different from your competitors

4.   Executive Summary

Under this plan element, tell your reader

a.       the structure and background of your business

b.      the company’s management and key staff

c.       the relative position of your company in the industry

d.      future growth prospects

e.      what is required to make those prospects reality

f.        if you are requesting for funds, state

i.                     the amount required

ii.                   how the funds would be employed

iii.                  how the funds would be repaid

NOTE: WRITE THE EXECUTIVE SUMMARY LAST!

5.   Marketing Plan

Should include

a.   A description of the product or service to be offered and how these satisfy what consumer needs

b.   A comparison of the unique benefits your products and services offer over those of other closely competing products

c.   A documentation of forms of intellectual property protection you may enjoy – patents, trademarks etc.

d.   Identify your market. Who are your customers? Where are they located? What is there size?

e.   List your major competitors along with their size, strength , weaknesses and other relevant information

f.    Describe environmental, legal or governmental factors that could affect the future of your business.

g.    Document your pricing strategy

h.    Identify your product distribution channels

i.     State your sales, service and warranty policies

j.    Document your promotion and advertising plans and how they compare with competition.

6.       Operational Plan

Should describe in detail

a.     Who will direct the affairs of the company

     i.  Who make up the management team?

     ii.  How are your staff organised?

b.      How will they direct the affairs of the company

     i.   How will new personnel be recruited

     ii.  How will they be trained

     iii. Discuss the company’s management and operational policies

7.       Management Control Systems

Describe systems in place to monitor,

           i.   Company’s investment in  inventory

           ii.  Product or job profitability

           iii. Sales management and effectiveness

           iv. Admin and other overhead costs

           v.  Cash flow management

8.       Financial Statements and Projections

Start by discussing

     a.      the present financial position of the company then,

     b.      the funds required for further expansion

     c.      how the funds will be spent

     d.      your plan for repayment

     e.      show how the additional funds requested would increase your profitability

The above narrative presented should be supported with historical financial statements for the last three years if available. The financial statements should be audited and certified by a firm of chartered accountants

                                You should here present:

i.    Projected Statement of Cash flows

ii.   Income Statement

iii.  Projected Statement of Financial Position

iv.  Income Statement and Statement of Other Comprehensive Income

v.   Debt Repayment Schedule

(A firm of Chartered Accountants would be glad to help you with this. You may also contact me using feyitimianthony@yahoo.com )

9.       Long Range Strategic Plan

Here describe

a.   Where you want your business  to be in the next few years and how you plan to get there

b.   Include an explanation of your strength and weaknesses and opportunities open to you in your line of business

c.   Explain your strategy for minimising your weaknesses and exploiting your strengths and opportunities

On a final note

After you have a rough business plan draft, let your accountant review and edit the document. This is VERY important.

If you need further assistance and professional advice on this matter, feel free to write to feyitimianthony@yahoo.com

Or call +2348184251501

You may also check the following online resources for helping you write sound business proposals

i.     www.bizplans.com

ii.    www.bplans.com

iii.   www.masterplans.com

iv.   www.sba.gov/starting_business/planning/basic.html

v.    www.myownbusiness.org

The next part would show a sample business plan to serve as a model for you in developing your business plan. It will be entitled “Summing Up the Plan Elements – A Sample Business Plan”

References

1.    Martin, Davis E. Managing a Small Business Made Easy. Entrepreneur Press, 2005.

2.    Harroch, Richard D. Small Business Kit for Dummies. IDG Books, 1998.

3.    David, Kintler et al. Independent Consulting – A Comprehensive Guide to Building Your Own Consulting Business. F+W Publications, 1998.

NEGOTIATION AND YOUR BUSINESS: DON’T “GIVE AWAY THE STORE”!

What is negotiation?

Negotiation is a process “by which two or more parties attempt to resolve their opposing interests.”¹ It is a conflict resolution tool.

Again, negotiations may be viewed as “discussions aimed at reaching an agreement”²; “the action or process of conferring with another so as to arrive at the settlement of some matter”³

All negotiation situations have basic features common to them all.
Lewiki et al 2009⁴ identifies six (6) characteristics of negotiation situations, namely

a.     There are two or more parties.

  Negotiation is a process between individuals, within groups, and between groups

b.    There is a conflict of needs and desires between the two or more parties.

c.     Parties involved in a negotiation situation negotiate by choice.

d.    Parties expect a give-and-take process. Although there is a lot of strenuous arguments for what they each want, ultimately both sides will adjust their demands to reach a final agreement

e.    People or groups who negotiate, prefer to negotiate rather than to fight openly, permanently break off contact or got to a higher authority to serve as an arbiter.

f.    Successful negotiations deals with the management of tangibles as opposed to intangibles. Tangibles basically refer to the key terms of the contract – for example- whereas intangibles are the underlying emotional and psychological motivations that may directly or indirectly affect the parties during a negotiation.

BEFORE ever you negotiate these factors must be present. If they are not then what you are involved in is not a negotiation where the two parties win – a win-win situation – but a bargaining, a competitive win-lose situation, that would leave one party feeling like Alexander the Great and the other like Darius at the Battle of Guagamela in 331 BC.

When should you not negotiate?

J.C. Levinson et al in their book Guerrilla Negotiating: Unconventional Weapons and Tactics to Get What You Want⁵ list situations you should NOT negotiate.

You should not negotiate when:

1.   You could lose everything.

In such a case, choose other options rather than negotiating

2.  You are already running at capacity. There is no need to negotiate then just raise prices.

3.   The demands are immoral or unethical.

The other party may ask you to do something illegal, immoral or otherwise unethical – say giving kick-backs to government officials or accepting a bribe.  “If you tell lies to get business, if you involve in shady business practices…or in other unethical business practices… in the long run, the effects are damaging.”⁶

4.  You don’t care.

If you have no stakes whatsoever in the outcome and have nothing to gain, then do not negotiate. As an example, a company you buy raw materials from has a by-product X from its plant. It intends to sell X at a really low price, since it is occupying space in the store and would expire after three months. It has already been in the store for a month now. The company asks you if you’d be interested in buying at 1/10^th of the normal costs in the market. You do not need X and you currently have no installed capacity to process or even to store it. You have no means of trading in X within three months. 

5.   You are pressed for time.

A lack of time may pressure you into making mistakes. In fact in most cases when you don’t have time, you’d settle for less than you would under normal circumstances. As an example you might be offered a very good contract with attractive financials but then be told that the offer expires in 48 hours. Corporations use these tactic – exploding offers – in a negotiation to “prevent the other party from continuing to search for a potentially superior offer”⁷

6.   They act in bad faith

If they start acting in bad faith, it is time to stop negotiating. If you can’t trust their negotiating you may not be able to trust their agreement. In this case stick to your guns, do not negotiate. You may even discredit them

7.   When waiting would improve your position.

Let’s say you deal in a good which is slowly becoming the fad. A customer wants a large quantity of the good at a price you deem too low based on your estimated projections. Drag the negotiations. Wait it out. Or maybe you’ll have a new technology soon or another opportunity may present itself. If the odds are good that you will gain ground by waiting, wait.

8.   You are not ready

If you’re not ready just say “no”. There’s a reason athletes prepare for competitions even though their daily life is usually dedicated to the sport of their choice. If you do not prepare you start the negotiations from a weakened position and will ultimately lose out.

References

1.   Roy J. Lewicki, Bruce Barry, David M. Saunders. Negotiation (International Ed.). Mc Graw Hill, 2010.

2.   Hornby A.S. Oxford Advanced Learner’s Dictionary. Oxford University Press, 1995

3.   Editors of Merriam-Webster. Webster’s New Encyclopedic Dictionary. Merriam-Webster Inc., 2002

4.   Roy J. Lewicki, Bruce Barry, David M. Saunders. Negotiation (International Ed.). Mc Graw Hill, 2010.

5.   Levinson J.C., Smith M.S.A., Wilson O.R. Guerrilla Negotiating: Unconventional Weapons and Tactics to Get What You Want. John Wiley & Sons Inc., 1999

6.   Feyitimi A.O., Why Having A “Must-Win” Mentality May Actually Be Damaging To Your Business. www.feyitalksbiz.blogspot.com, 2012

7.   Roy J. Lewicki, Bruce Barry, David M. Saunders. Negotiation (International Ed.). Mc Graw Hill, 2010.

How can you ensure successful negotiations? What are some negotiating tactics you should be aware of and how can you successfully overcome them? What should you do if the other party starts ‘fighting dirty’? I will consider these questions in the next part of the Negotiation series, a paper entitled: “Negotiating: Untangling the Chinese Puzzle.”