Irish Tatler | The Difference Between Mission & Vision?

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I always get confused when I hear people talking about mission and vision ‘statements’ for business planning / strategy – any idea how I differentiate the two?!

One of the main axes of success in business is clarity of purpose – it drives how we communicate both internally, to our staff and stakeholders – and externally, to our clients, influencers and suppliers.  I’m a very vocal advocate for businesses [of all sizes] really understanding their values, vision and mission in ‘life’ – because without this clarity, it’s very hard to fully understand and in turn, communicate the right messages to our key people.

A major stumbling block, is in understanding the difference between ‘mission’ and ‘vision’ – they are both unique, and not to be confused with one another! In order to ensure your business is ‘on message’ internally and externally, you really do need to have a coherent, cohesive mission and vision – so here are some tips on how to go about doing so.

Keep it simple: don’t over-complicate things, just ask yourself – what are we here to do? What are our key objectives, our purpose and defining key deliverables?  Understanding this will help define your mission.   The next step is in understanding the values by which you wish to achieve your mission – this is your vision.  It is cultural, and clearly sets out the organisations’ “stall”, so-to-speak, when it comes to expectations, future plans, as well as the manner in which the company plans to achieve them.  The most important factor for both? They need to be honest, focused and motivational for all concerned.  Good luck!

Green Shoots | Are they a reality or a figment of our imagination?

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'Green shoots' is a term now gaining as much ground [pardon the pun] as its predecessors, 'recession' and 'downturn'.  Many of us are thankful for its appearance.  However, what can we say of the realities of the actual existence of these nimble, sprouting shoots? Are they really 'out there' or are we imagining them?

The quiet revolution of these 'shoots' is simple: they are appearing, somewhat surprisingly, despite the economy - not because of it.  The proof? It's not exactly tangible, but it is there - it's a palpable feeling that things, gradually, are improving.  Fear for the future has waned somewhat for some [sadly, not all] business-people as orders or clients, prospects or potential opportunities ostensibly appear to be improving.  While undoubtedly, there are bigger issues for consideration as social welfare cuts and IR issues continue, as well as emigration, and ongoing budget adjustments - it is fair to say that, within the SME sector, people are beginning to sense optimism in the air.

So, what of this optimism? It is just that - and is being helped along by a sense of community that has begun to abound of late within certain sectors - as well as a good news story, here and there, like a slow drip of positivity.  Good news stories, and bad, are something we're well used to - and they are discussed weekly on the Small Business Show.   As someone who regularly interviews SMEs for the focus section of the programme, as well as listening and commenting on the aforementioned stories - I asked our Producer, Kehlan Kirwan for his thoughts on Ireland's "future" economy:

"There is a justified sense of frustration in Ireland when it comes to running a business.  Red tape, commercial rates and an economy with more questions than answers. So it’s a bad time to start a business, or be in business right?

Well, actually it’s an incredible time to be in business in Ireland right now. The old way of running a business or doing business is gone. It takes new ideas and new methods to create success. For example – looking for finance for a business has changed. The banks will continue to be the mainstay for business finance for the foreseeable future but different models have emerged as contenders. Crowd funding, Venture Capital and Pension funds have all emerged as serious contenders to the banking model.

There has also been a boom for technology and new business models. Both have ensured that Irish businesses are now looking globally to advance their brand. The gaining of new customers and recognition in foreign markets is now seen as must. Your brand is now global, not just in Ireland.

While the climate is still harsh domestically there is still scope for gains. The psychology of the consumer in all areas has changed. The experience has now become one of main the reasons for the handing over of monies. While small retail units find it hard to compete on price with large chains, they can offer better customer service and follow up service.

Green shoots are appearing, now they need fertile soil to flourish."

So, #SMEcommunity - what are your thoughts? Do you feel green shoots are really breaking ground, or is economic activity still stagnant? Comments welcome!

The Trick to Making Sales Easy

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I'm not a sales person, per-se... but inevitably, in every job I've had [and indeed, in my role of 'master of all trades', e.g. being self-employed], sales and the capacity to sell well has played a central role.  Selling is an art which has to be carefully, gently mastered - and it is different for every type of product or service.

As a large percentage of my clients are service businesses, and predominantly, we work on the key elements of strategy and communications in business - sales figure in this matrix strongly and often require definition and redefinition over time.

I would argue [well, I would, wouldn't I?] that without a strategy behind any action in business - it's a waste of time.  I'm sure many would share this view, and probably as many won't - but arguably, without having a defined level of clarity surrounding targeting a particular client, segment or market, for example, could be a little bit thoughtless [and moreover, a big waste of time].

I've made a pitch for clarity many times on my blog, and this comes from some simple homework any business-person can tackle: some of it is instinctual; some of it is observational; some of it is scientific. However, getting to know your customer, their habits and needs [remember NOSE?] makes closing sales a lot more straightforward.  Why? Well consider the round-peg-into-square-hole issue - most sales professionals would tell you they can sell to anyone... the reality of the SME? They need to sell to those who want to buy.  This means an effective, clarified sales process should be to the fore of how they do business. Rule #1 Know your product, know your customer.

Keep your message clear - yes, it aligns firmly with Rule #1, and here's why... communication is critical in the selling process; in fact, selling is all about communicating.  So understand your proposition and in non-industry terms [keep it simple] what it's value is to the customer.
Rule #2 Mind your message

Have a straightforward, tried-and-tested sales process - which works.  Don't spend hours and hours, or days, aiming to convert sales that just won't close - why? Do you really need me to tell you? Develop a systematic approach to how leads are dealt with, which will quickly [though not abruptly or impolitely] stream them into the right category of client and / or product offering [remember productisation?].  Have the 'cost of customer acquisition' in mind - e.g. what it is costing you to acquire the customer.  Avoid losing valuable, productive time on a lead which will not be right for your offering - this is where your process is critical.
Rule #3 Keep it simple and strategic

Finally - keep your leads in check... for many start-ups and SMEs, collection of potential, ongoing and closed leads is something that is managed on an 'ad-hoc' basis.  Which often translates into 'not managed at all'.  Keeping tabs on where leads are 'at', categorising them and clarifying their position is key to positive sales management, and indeed, building and maintaining a pipeline.  It may seem obvious, however this is a critical issue many businesses forget [or, as I said, manage badly!].  Rule #4 Stay focused and manage your leads!

#Budget14 | Pretty good for the #SMECommunity

It's certainly not anyones' favourite time of the year - but in the main, this years' Budget was a pretty positive one for the #SMECommunity,  Rather than penning our thoughts, here's the scoop from the FocuSME Small Business Show team, featuring Avine McNally of the SFA and Brian Cleary, CEO, Clonmel Chamber.

Learning is the New Black...[or something]

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I'm continually amazed by the seemingly endless amount of folk who no longer need to learn anything.  'That's a waste of time'... Yes, the ROI has to make sense but honestly, do we ever stop learning? In life, as in business, society and the economy - things are ever-changing - learning and being open to its merits, is so important.  Don't assume you know everything... nobody does.

Why Cashflow is a Royal Pain for SMEs

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"Cash is king" is the age-old phrase regularly trotted out in conversations regarding the equally age-old problem: cash-flow.

Having worked with and for SMEs for most of my career, the challenge of cash-flow is one which many businesses face on an ongoing basis - and in more recent times, it has become an increasingly problematic issue which can ultimately strangle a business.  I've written regularly on the importance of plotting out your financial requirements at various junctures in your business's trajectory: at start-up, during growth and particularly, when applying for various funding mechanisms.  Sadly, the 'life blood' of business - cash - can be a hugely difficult balancing act, and one which some businesses fail to manage successfully.

For three years of my career, I worked in the SME credit sector - at a time when things were good, and just as the recession showed its 'hand of cards'.  Paradoxically, in many ways, the problems were the same before, during and after - with debtors stalling payments unnecessarily, credit agreements ignored and perhaps most frustratingly, a complete lack of communication throughout.

The reality of the times we're in undoubtedly means that cash and credit are compromised and ultimately, very constrained - but this is not an excuse for money owed to become money unpaid.  As per the SFA's recent report on late payments - cash-flow or lack thereof can cause colossal problems for SMEs.  Not simply because it wastes management time and has knock-on effects for credit facilities, but in turn, businesses find themselves constricted in growth planning, their own ability to make payments on time and implementation of broader business objectives are also often impacted.

While Government measures seek to promote a more prompt payment culture, through various initiatives - an incompliant, deceitful culture still pervades, where it is almost a 'badge of honour' to delay payment.  The aforementioned SFA report clearly indicates that this is very much the case.

So, what can the SME owner do to avoid cash-flow headaches?  Here are some tips which may help...

• Manage risk from the outset | Credit-check and clarify the potential clients' position, financially
• Define expectations | Proposal, Terms of Business, Payment Outline / Schedule
• Request upftont percentage payment | Not always possible, but worthwhile considering
• Maintain contact | Ensuring maintenance of agreement throughout

The Real Meaning of Strategy in Business [Version II]

Many thanks to the SFA, who recently published this version of the SAGE Ireland post of the same name.  

Normally, at this point, a blog about business strategy will contain a pithy clipping from Sun Zu’s “The Art of War” … (“Tactics without strategy is the noise before defeat” is a favourite).  It’s hardly surprising that this recurring theme appears, given that Sun Zu’s statements of strategy and tactics contain very resonant themes when it comes to strategy in business.

However! The question for most businesses – SMEs in particular – is how or why strategy applies to their business (queue mutterings of “I just want to get on with it…” or “that sounds very corporate to me”).  The reality is, as Sun Zu infers, not knowing why your business is heading in any specific direction (or the role resources, objectives and plans are playing in it) is almost definitely going to bring about the wrong outcomes.  In some cases, rather unfortunately so.  It doesn’t matter whether you’re a Fortune 500 company, or a start-up operating from a shed in your back garden… without strategy, you’re likely to be setting out on a collision-course of risk and disappointment.

So, what is the real meaning of strategy in business? Opinions vary, and strategies change to suit different times in a business’s trajectory – guiding focus and resources to suit its point in the life-cycle.  From my experience, here are some key roles for any business strategy:

1. To provide you, your team and any other relevant stakeholders with clarity regarding the purpose, focus and objectives of the business;

2. To ensure financial, marketing, sales and operational targets are met – clarity, again, being the key focus;

3. Communication, collaboration, and cooperation: to develop buy-in, commitment and focus within your team [if you have one – if you’re a sole trader – to ensure buy-in from key stakeholders, partners, funders etc.];

4. To shore-up growth by highlighting a clear path for the future and allocating the right internal and external supports in realising same;

5. To provide an effective means for challenging, evaluating and re-strategising decisions, objectives and growth – as well as business model, marketing, financial planning and other key operational mechanisms.

Obviously, there are other associated positive outcomes for businesses implementing clear strategies.   For starters, they don’t suffer from the ‘fear factor’ as often: mainly because if something lands, meteor-style out of left field – their business strategy is resilient enough for them to ‘pivot’ [as Eric Ries talks of in Lean StartUp] or adjust the sails.  Growth becomes easier to map-out and manage:  every business experiences ‘growing pains’, but they are easier to manage when the growth trajectory is clear.

Strategy also plays a defining role in your business’s future state, how it will look and operate in the future, by activating your organisation’s “vision”.  Often business owners balk at the notion of such intangibles – but believe me, vision and clarity regarding your organisations’ aims and objectives is an absolute non-negotiable.  Arduous trading conditions require businesses to be even more focused than they previously may have been, as opportunities are not always so abundant and the playing pitch is far more competitive.

So, what could strategy mean for your business? Well, you could open yourself up to the opportunities that are potentially hidden from view right now [the clarity argument], you might also be able evaluate your ‘message’ [the purpose argument] and all of a sudden, your team, stakeholders and other valuable individuals may begin to facilitate your trajectory because they get it.

Communication [internally and externally] is a central tenet of every successful business and clear, focused communication is always underpinned by a strong strategy.  Why? Because it provides the rationale or reasoning behind why you’re communicating what you’re communicating.  Ensuring your business is delivering the right messages to the right audiences is critical – not just from a marketing and sales perspective, but in terms of management, HR and market positioning.

If you think your business is immune from strategy, you’re wrong – every business needs one. Strategy acts as the blue-litmus test for your business, not simply by being put in place, but through evaluation, regular progress reviews and continual objective appraisals… re-strategising the strategy, if you will! Don’t shy away from the ‘s’ word, it could revolutionise your business.