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April 18, 2012 

Popular Apps for Business

Tools and resources are critically important in keeping your business operations competitive and efficient.  Multiple functions require multiple solutions and tools to get the job done more effectively and efficiently.  Thousands of apps are readily available to assist businesses and entrepreneurs in all functions such as sales tracking, marketing, financial management, project management, data backup and payment processing.

Some of the highlights of this infographic produced by Mavenlink include these popular apps in the following functional categories:

• Email: Google Apps
• CRM: Salesforce
• Data Storage: Backblaze
• Sales Processing: Paypal
• Storage / Backup: Dropbox
• Social Media Management: Hootsuite
• Accounting and Billing: Quickbooks

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© 2012 Strategy Plan One

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April 18, 2012 

Retail Industry

The retail industry is potentially on the rebound with some of the most current data out for public consumption.  This is good news for businesses and entrepreneurs around the country who are all desperately looking for signs of recovery.

The latest advance report is out by the US Census Bureau on retail statistics estimates for March 2012.  The report, including the statistics for the combined retail and food industry, cites that the industry total revenue for March 2012 was $411.1 Billion.  This represented an increase of 0.8% over February 2012 and a 6.5% increase over March 2011 figures.

Retail industry sales alone increased by 0.8% from February 2012 and consistent with the 6.5% increase above March 2011 data.  The biggest sector jump in the retail industry occurred in building material and garden retail sector, with a 14.1% increase over March 2011 statistics.

Business owners and the industry will cautiously analyze the next few months to determine if this pattern will continue and if it is solid signs of recovery.

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© 2012 Strategy Plan One

Economic Efficiency

In tough economic times, the global economic environment is striving for economic efficiency.  As an entrepreneur you need to keep operations running smooth and cost-effective.  

Competitive environments require team solutions and creativity in developing and implementing efficiencies in your business.  Through economic efficiency and efficient operations your business will realize a higher earning potential and at the same time, experience reduced, cost-effective methods and procedures to earning that revenue.

Here are 5 tips to creating economic efficiency in your business.

Economic Efficiency – Eliminate Redundant Procedures in Your Business

Undertake an operational review to identify unnecessary repetitive methods and procedures.  Many approval processes go way over board in requiring multiple persons to review, analyze and either recommend approval or approve a project, cost, or contract.  Federal government processes in many cases highlight this problem, as procedures go over the top to ensure the highest accountability.  Maintain your accountability, but streamline your operations to the necessary reduced human resources to make decisions.  Rely on and empower your professional team to make great recommendations at each level.  With elimination of steps in procedures, your operation will be more cost-effective.

Implement Technology Wherever it Makes Sense for Economic Efficiency

Automate procedures when it makes sense from operational and budgetary perspectives.  Reduce laborious tasks if automation and technology can do the same task more efficiently and cost-effective over the long run.  The implementation of Kiva System robots in warehouse operations is one example of efficiencies gained through automation.  It would also be a shocker if businesses have still not adapted to computerized sales, accounting and inventory systems – a must in business operations to keep competitive and cost-effective.

Economic Efficiency – Make it Easier For Everyone to work together

In business operations today, being all physically located in one location is not as important as it was decades ago, due to improved technology and connectedness.

Through innovation and technology, staff can work at any location and be easily connected by phone, mobile device, web or cloud-based applications.  All current technology methods make communication and business functions more smooth and easy.  Businesses that can provide work-life balance flexibilities and mechanisms, can ensure the work can get easily done from any location.  Collaboration across units, teams and partners can happen seamlessly with the implementation and the availability of smart technology in your organization.

Business Efficiencies – Making the Customer Process Easier

Straight forward information and sales procedures for your products and services will make the overall experience with customers more effective and efficient.  Make the product or service information readily available to the customer, whether at a physical location or web-based.  When designing e-commerce sites, ensure the client can easily navigate through to the completion of the sales process.  Nail down a streamlined sales process both internally and externally and ensure that your have contingency CRM plans to deal with issues around customer complaints.  The more prepared you are, the less time per customer it will take to generate revenue or resolve an issue.  More time can then be spent on building the relationship aspect of customer service with more customers.

Business Efficiencies – Getting the work done without the Travel

If you want to quickly and effectively reduce costs in your organization, travel budgets can be significantly reduced, while getting the same scope of work (meetings) done by using technology.  Phone and video conferencing can easily replace face-to-face meetings and the costs associated.  Meeting in person may be the richest form of communication in cutting a deal or working collaboratively.  However utilizing video conferencing or using Skype or other forms is more the standard and acceptable these days.  As an entrepreneur you will have to make a careful decision on the appropriate forms of communication for the appropriate audience, while cognizant of the need for cost-effective methods.

Economic efficiency can be achieved in your business, however ensure you take adequate business planning steps to maximize benefits from reduced resources and methods.

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© 2012 Strategy Plan One

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April 17, 2012 

Social Media Sites

We have all heard the hype and buzz around the valuations of social media sites.  These sites have gained massive users quickly and before you blink, now are worth billions.  WithFacebook on the verge of an Initial Public Offering (IPO), the estimated value puts Facebook near $100 Billion, 50 times revenue value!

Here is an interesting look at timelines, revenues and valuations of social media sites, courtesy of gplus.com.  Statistics and valuation highlights of this infographic on social media site valuation:

• Facebook: $3.7 Billion in revenue (2011), 1 Billion users, $100 Billion valuation (50 times revenue)
• Twitter: $150M Revenue, 300 M users, $7.7B value (50 times revenue)
• Linkedin: $200M in revenue, $9B valuation (45 times revenue)
• Groupon:  $760M in revenue, $25B valuation (32 times revenue) 

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© 2012 Strategy Plan One

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April 16, 2012 

Social Media Sites

Social Media sites seem to pop up out of nowhere, gain popularity, and before anyone knows it, the company behind the site is worth millions or billions of dollars.  What is driving business valuation of a current wave of social media sites?

This pattern is very similar to what was seen in the early internet years of internet sites popping up and soon valued at millions of dollars.  There are certain valuation factors that go into valuing web sites and the new wave of social media sites.  Although heavy financial analysis has much weight in valuation, factors such as the number of users, market potential, innovator factors, revenue potential, goodwill and speculation are all considered into the valuation models.

Social Media Sites – Revenue

The biggest revenue driver behind social media sites is advertising revenue.  In approximately 77% of social media sites, ad revenue dominates the revenue streams.  In 2011, Facebook alone was estimated to bring in $2 Billion from ad revenues.  Based on financial analysis formulas and calculations, analysts can determine advertising revenue potential by the number of users, visitors and page views.  

Valuation models can involve calculations on potential revenue and future value of earnings or revenue.  Models can factor in complex valuation, with estimates of total revenue potential of social media sites which would include ad, user fees, subscription, licensing and other sources.

Social Media Sites – Number of Users & Market Potential

Even if the social media website has not generated one dime, but has millions of users and potential to earn revenue, speculative valuation can be determined.  An investor will be interested in a business acquisition if there is a projected return on investment.  A website that contains an existing, massive base of subscribed members, paid or unpaid membership base, would be appealing to an investor.

Most investors are looking at the revenue potential and would be interested if the valuation of that same asset has been projected to increase.  Obviously the investor may be looking for a return based on an asset turnover a few years down the road when selling off the acquired business.

Information, Mechanics and Proprietary Features of Social Media Sites

Valuation factors may also include value based on the mechanics and functionality of the website.  Through some analysis of backlinks and SEO, some automated valuation models can determine valuation of a website based on the standards created by other existing websites.  The value of the content is also important, along with any proprietary and/or patented features, widgets and coding, original to that website.

Speculation of Social Media Sites

Those in the technology field may fuel speculators by stating the what the next greatest social media sites will be, citing the next greatest thing on the internet.  When that buzz occurs, so does the buzz around the speculation on value.  Once again like other valuation factors, speculation may be driven by revenue potential.  Speculators may estimate the market potential, number of future users, future revenue, future return for investors.

Social Media Site – Valuation of Assets and Goodwill

In most acquisition projects, business valuation is undertaken to determine the valuation of assets and the valuation of goodwill.  Goodwill is the valuation of the intangibles (non-assets of the company) such as the name of the company, the Brand of products and services, and the value of relationships with the audience.  Goodwill in the name will be carried forward with the new owner or investor, as long as names or Brands, or customer appeal do not change that much.  Speculation sometimes drives up the valuation of goodwill, and sometimes investors must gamble with investing on an acquisition that has a high goodwill valuation attached to it.

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April 16, 2012 

Business Women

In the recent decades, great emphasis has been placed on employment equity to ensure all have opportunities at all operational, management and compensation levels.  This informative infographic from mba-online-program.com illustrates some trends and statistics of business women, making great strides in the corporate world.

Interesting statistics and trends to note from this infographic on business women:

• More women attending professional schools, increasing on an annual basis
• MBA salaries of women in the US higher than men
• Salary gap has improved by almost 20% for women

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April 15, 2012 

Franchise Opportunities

Peering into the past, franchise opportunities may have been offered to eager entrepreneurs as early as in the 1930′s.  Fast food franchises came on full steam in the 50′s with Kentucky Fried Chicken, McDonald’s and Burger King.

Today, franchise opportunities are reaching 1 Billion outlets in number in the US, with nearly a $1 Trillion in output to the US economy.  Here is an interesting look at franchise opportunities then and now, courtesy of sonus.com.   Check out the top franchise opportunities for 2012.

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April 15, 2012 

Smart Meter

Across North America and around the globe in many jurisdictions, smart meters are being installed, sometimes without much notice and much choice.  Electrical power companies are eager to jump on this efficiency improvement in monitoring and managing power consumption.

Implementation has been so rapid that consumers have not had a chance to digest the information and implications around these new devices.  In its early implementation period, consumers and critics have come out speaking against the efficient electrical monitoring devices, citing smart meter issues ranging from impacting health and personal finances, to an increase in illegal electrical energy consumption.

Smart Meter – How it Works as an Efficiency Measure

There are some measurable benefits to the implementation of smart meters to the power grid that make solid business cases.  The devices allow the utility companies to accurately monitor the consumption on an hourly basis and by wireless transmission, send the data instantaneously to the power companies. 

In the better management of power consumption, many utility companies have changed their billing game plan by charging tiered rates for peak and non-peak utilization periods.  The consumer, with new gained knowledge on smart meter electrical consumption, would alter consumption patterns to save, and thus the electrical companies would then spend less acquiring external power sources.  Reports are citing an average of 8-9% decrease in energy consumption in jurisdictions where the smart meter has been installed.

Smart meter benefits spreadsheet courtesy of emeter.com

The wireless transmission units would also save with the elimination of utility soldiers marching up and down residential and commercial streets, monitoring,reading and recording monthly power consumption by consumers on the old devices.  No need for employees when a smart meter can send the data seamlessly through its wireless device.  This same work force would either be down-sized or moved to be trained in more value-added positions in the power utility corporations.

The smart meter has been toted as one of these devices that would stamp out the theft of electrical power by those who bypassing old metered systems.  These new devices would pinpoint any anomalies in patterns and target the theft issue right at the source.  With a track record of normal electricity consumption, utility companies would be monitoring to observe changes in this pattern.  This factor alone is said to save the utility companies potentially hundreds of millions in not into the billions in the long-term.

Smart Meter – Consumer Experience

The installation process has not been a smooth one in many areas, with concerned consumers raising concerns and demanding old meters to not be replaced by the newer, more efficient smart meter.  In some cases, legal challenges have been initiated by consumers and groups.

Results experienced by consumers to date have been less than favorable with most bills rising in costs.  With very little warning and education to adjust to changing methods, the initial period has been disastrous for some residential consumers who are experiencing double the cost for electrical services.  This is mostly due to the daily consumption occurring during peak periods.  The electrical companies’ strategy of tiered peak changing is hurting mid-lower income level consumers who can’t afford to turn on the lights during peak periods.

Potential Health Risks of the Smart Meter

Posted all over the internet and in the media are reports that the electrical signals coming off of these smart meter devices are powerful and could potential cause severe health risks.  Similar to the concerns around cell phone use, advocates are calling for more research and testing prior to autocratic implementation by power companies.  Several videos on YouTube demonstrate the measurable power of these wireless signals originating from smart meters.  The power companies have rebutted with a “tested and safe for use” message, but this somewhat biased and not coming from independent science sources.

Theft Continues Despite the Implementation of the Smart Meter

In a detailed FBI report, the FBI warned power companies that smart meters and power grids are easily being bypassed and tampered with.  It appears that smart meters have not alleviated the issues of power theft as rogues have found new methods of stealing off the grid, outside of where a smart meter measures.  The FBI has issued warning that thieves can easily penetrate the smart meter with software hacks and thus power theft at the smart meter level.   In Puerto Rico alone, this problem could cost the utility companies $400 Million per year.

Warnings have also been broadcasted about power theft at the street level, before power comes in and is monitored by building smart meters.  It would appear that primary thieves such as marijuana grow operators would now find ways of bypassing at the street level and powering up operations, to be unnoticed by power company monitoring.

Critics have called out the strategic placement of smart meters within buildings as the wrong placement and have called for placement of meters at the area level to pinpoint area problems.  Critics have also blasted the elimination of employees as most anomalies or identified problems were being observed by humans when physically on site at a location that was stealing power.  Gone is that ability to physically monitor and observe with a smart meter device (it’s not that smart to observe).

Smart Meter – Creative Work Around?

As fast as these smart meters can be implemented, the consumers and pseudo-entrepreneurs come out to demonstrate (via Youtube) several methods to counter smart meters.  It may be hard to determine if any of these methods, from magnets to tin foil, actually work, but for sure appear to be illegal methods of interfering and tampering with a device (and thus a theft on its own).

The best, more constructive solution to the potential multitude of issues would be to put pressure on power companies, local power authorities and all levels of governments.  Voices, feedback needs to be heard on this, and everyone’s collective, valid feedback has power that a smart meter can read.

The Smart Meter – is it really worth it?  Too early and not enough research & development to implement?  Does it really curb electrical theft?  Are we absolutely sure there are no health risks to these wireless transmitting devices?  Too costly to be installed broadly then ripped out after a successful consumer legal challenge?  Speak out, research more and if you feel unsafe or being gauged, make your voice be heard.

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© 2012 Strategy Plan One

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April 14, 2012 

Color and Design

Many factors influence how, when, where and what we buy in the marketplace.  Marketing plays a key role in tapping into these cues, and utilizing them out front to build a more richer, more powerful message to the consumer.  Making the powerful message resonate with the consumer more will result in a deeper connection, relationship and eventually sales and revenue.

This infographic from KissMetrics digs deep and illustrates color and design, and other factors that influence our purchase decision-making process.

Color and Design Facts

Interesting facts to note from this infographic on color and design influences:

• 93% of consumers place visual appearance as the primary factor in purchasing
• 85% state color as the primary visual factor
• Color influences brand recognition by 80% (confidence factor)
• Online shopping – 42% based an opinion of a website on its overall design
• Webpage load time factor / correlation:  longer load times result in decreased sales
• Different colors have different effects/purposes: Blue – security/business, Red – Sales, Yellow – optimistic/youth

When developing your marketing plan and marketing activities, use the appropriate color and design for maximum impact and benefits.  You may have to complete some market testing with color and design in your products and services.

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April 13, 2012 

Construction Spending

Construction spending has one of the biggest impacts on economic indicators, as the construction industry is huge.  Construction spending gives us a picture of how well the construction industry is doing in the economy.  Construction, as a major employer is tied to employment and to the housing industry statistics.  The value of construction includes key cost categories such as labor, materials, professional services, and overhead costs.

The following graph from the US Census Bureau shows the trend in construction spending.  The data report indicates that in February 2012, construction spending was at almost $809 Billion, +5.8% increase over February 2011 data.  This represented a $45 Billion increase in construction spending (Feb. 2012 - Feb. 2011).  Private construction spending accounted for almost a $49 Billion net increase, while public construction spending dropped by nearly $4 Billion.

Overall, the construction industry is on the road to recovery it seems, but still not near the highs of over $1.2 Trillion in construction spending back in 2006.

Strategy Plan One

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