First Step Marketing

Assembling a cash flow statement: chronicling the past. To help you get started in putting together your own cash flow statement, this section describes the cash flow statement of a hypothetical architectural firm, ABC Architectural Services.

The cash flow statement is for the four months just ended (For the purpose of the exercise, we assume that we’re now at April 30.)

A few notes about this company:

It employed seven people in January and received two new architectural design contracts in January for $25,000 each. These jobs should each take five months to complete and are payable as completed. Read the rest of this entry »

All business owners know what cash flow is—if not technically, then emotionally. Nevertheless, it’s worthwhile to approach this subject from the very beginning because it is key to business success. Some business school professors have even begun to impart to their students the latest thinking about cash flow: “Cash flow is more important than your mother.”

A useful way to think about cash flow is to view the business as a living organism. Cash is the nutrient that runs through its arteries and veins. The brain might be viewed as the product or service, the heart as the marketing, and the stomach as the finances, at which point it all begins to get a little messy. If you don’t have enough cash flow, though, rest assured that the living organism turns into a skeleton. , Read the rest of this entry »

Selling is tough. Salespeople have to be able to deal with endless rejection and still remain positive and enthusiastic.

Moreover, they must be able to make professional presentations, answer questions, handle complex requests, and otherwise turn prospects into customers.

Clearly, then, simply deciding which sales avenue you plan to use isn’t the end of the planning process. The business plan must discuss how you will motivate your salespeople. Here are three tasks that must be dealt with:

Training. The salespeople, whether they’re your own or representatives, must be thoroughly familiar with your productor service. That means they must understand how it works, what its benefits are, and how to sell it most effectively. If the product is going to be updated frequently, the salespeople need to be informed about the changes. Read the rest of this entry »

An excellent example of assumptions underlying a business plan is provided in the People Express financial. Here we find a list of 12 assumptions that help clarify the projections that follow. Most have to do with revenues and expenses associated with flying the company’s expected three plane fleet. Thus, we learn in points 7, 8, and 9 that revenues don’t include certain items that could become important later, like excess baggage and charter fees. And we learn in points 4 and 5 how the aircraft lease and personnel costs are figured in. Read the rest of this entry »

Most business owners write business plans because theyhave a specific need that can be met by a particular audience.

The owners may need a bank loan. In that case, the business plan will be addressed to bankers. The owners may have decided they need to formalize their company’s planning process and require a business plan that all managers can understand. Read the rest of this entry »