Why people begin SMEs

 Wow!!!! What's going to get you to ensure your SME business started or grown? 

One thing is certain. You will have to fulfill quite a bit of criteria. Ignorance will not be an excuse and you will have to get professional assistance to get going. The rules and regulations governing businesses will begin to change at fairly rapid rate under the guise of compliance. 

The trend has started but the pace is picking up. Governments are strapped for cash and will therefore use SMEs as an approach to justify the provision of employment. However, they will essentially kill the goose that lays the golden egg. 

There was once a time where incentives were given to encourage people to get into business. These are now few and far between. Start up costs were written off over a grace period of years. Technical assistance programs and funding programs were in place to ensure that businesses got a good start. Were these the good old days? Hardly; back then businesses had their share of challenges but they were different. 

In short, business people need to serious ask themselves why they should get into business. With some serious thought, we would find that the reasons have changed. 

Business people want:

• More control of their time and talent
• To be their own bosses, in short to have autonomy
• To have choices regarding their pay 
• To work on what they have "control" over
• To travel to areas they believe would benefit their businesses
• To work when they want, if they want
• To match their wits against the market
• To surround themselves with people they want to interact with on a timely basis
• To have access to finance and banking support to facilitate their capitalizing on opportunities that become available 
• To have quick turnaround times on such expansion/significant revenue making opportunities
• To network with peers and colleagues at times suitable to them
• To get educated about their line of business so they can work more efficiently and effectively

If this resonantes with you and you can think of others reasons not included here, feel free to comment below. Thank you for stopping by. 

KEEP THEM POOR | This Is What The Richest Don't Want You To KNOW (an ill...

When you watch this video as I have, you tend to ask yourself. What if he was right, what am I doing to make a difference? What am I teaching letters when I stand before a group of entrepreneurs?

Every time I share with a group of people who are ambitious about beginning a business, I tend to be very direct with them. I don't sugarcoat anything and make any guarantees other than they have to put in the work, a lot of it, in order to see any kind of a reward.

Sure there are systems and models that can be taught to participants, but if they are unwilling for one reason or another to use them, then they have just attended another talk shop.

One person said to me that when they first entered a program where I taught, they didn't like me. I sounded too surefooted about what I said. They subsequently found out, that I have made more mistakes than many facilitators. That what I referenced during the program was things that I actually did, and therefore knew what would/wouldn't work.

My language isn't the cautious language of most facilitators. I have found that those who make the most strides in educating others are those who don't say what the participants want to hear, they say what needs to be told. It's not that I am harsh and uncaring, far from it; but I need to have participants take the information they are given seriously, and act upon what they've learned.

There was a time that I did a consultation, and the client said to me that I don't tell them what to do, but make them work by pulling the solution out of them. I believe that the aspect of discovery is greatest when this approach is taken since through the experience, they recognize for themselves that through the work, through the effort, they then know what will/will not work.

Robert Kiyosaki's video title shocked me when I first read it, I watched it out of sheer curiosity, and I found what the video presented to be memorable. Have a look for yourselves, and feel free to share what your thoughts were when you have finished. I can almost be sure that some learning would have taken place at one level or another, and you may just be willing to act on this information to ensure you are not being kept poor.

Here's my Money - Why should I give it to you?

Daily, I manage to have numerous business plans come across my desk with requests to review them. It's been years that this has been happening and this is a process that's paid for by the clients. Often though, my feedback may not be what they want to hear, but it definitely needs to be told if they are going to meet any measure of success in their attempt to get funding.

Here are some findings:

Based on many of the plans that have been presented, here are some common threads that go through most of them. The reason I'm putting them out here is so that they can be addressed before your next wave of funding is being sought. Hope this helps the entrepreneurs / small businesses.

Businesses are not well researched

• Too many feel good statements are made. One that sticks out in particular was one which under the title of Research and Development, the document said, "Research and Development will be ongoing". Tell me would you part with your hard earned dollars for a plan with this in it?
• Many of these business plans use assumptions that are filled with errors and overly simplistic with these kind of results - "Earnings should reach $1 million dollars within 12 months and then grow by x% per month for the next year". Many start ups span years of operating without seeing a million dollars pass through it. It depends on too many factors which are often not addressed within the confines of the document. 
• Benchmarks are used which originate in markets dissimilar to the one within which the business has to function. 

The request for capital are hugely unrealistic 

• "Did you really just ask me for that much money?"  How did you arrive a such a figure and; what will you do with that much money? These questions are often asked and seldom answered adequately when presentation time comes up. 
• Capital requirements are often not recorded or given in lump sum in the hopes of the reader glossing over them.
• If you were presenting to someone like you, would you part with that much money for so little benefits? That's a question that needs address. 
• How will you pay it back? Investors are not only looking for ROI (Return on Investment), they are also seeking Return of Investment.
• WAIT A MINUTE?!?! What are you putting into this business other than an idea?

The operations elements of the business are at best weak

• How does this business operate? Truly! The vague information that you put up here does not suggest that you've done your research. Matter of fact, it doesn't even seem like you know what you're doing in this business. Sure I understand that you want to say what you do, without saying how you do it; but clue me in - that you know what you're doing!
• This document does not show that you've even considered the elements of the business that you need to at planning stages. DO NOT WASTE THE TIME OF THE INVESTORS / FINANCIERS!
• Who is your team? What will they be doing? What examples do you have for success in other ventures with which you were involved?

The marketing addresses mostly all elements except sales 

• The demographics and psycho-graphics look great! So does the industry information that you pulled from the internet. But....how does it related to what's happening in this area where you want to set up business?
• You've sort of addressed advertising - newspaper, radio, television. Your budget looks more than a little low. Do you know how many times you must run the advertising before people even hear about you, let alone purchase what you're offering? Blank look / dead silence comes back.
• Then you say, but we're going to use Social Media - you know Twitter, Pinterest, Facebook, LinkedIn, and a host of others. Once we throw enough mud at the wall, something's got to stick, right? Do you have a network that we can have access to? 
• What are you going to say to them? Based on what you've presented, quite frankly - NO! 
• Learning to use Social Networks has a learning curve that is steep for some. Most don't manage to develop a following as quickly as some may presume. 
• But all this marketing is expensive. Putting together ads before they even get to go out costs - no kidding. Are you going into business to give things for free? Why then are you trying to get everything for free? 
• Where are you sales strategies? Is often met with, "I don't like selling". That's why I'm doing marketing. Well, you tell me what's wrong here. Yes sales is an element of marketing, and it is the only one that brings in the money. All the others are cost centers. 

Things that you should consider   

• Often, there is a need to get have sound business planning documentation prepared
• When you intend to go into business you need to have money for a variety of reason
• You will need
• Business start up funds - registration / incorporation, bank account
• Professional fees - legal, accounting, business advisory, real estate 
• Meeting costs, research for your business may be time consuming / costly
• Remember, excess greed will not make you money. As you wish to be paid when you are in business, those whom you contract their products / services will also want to be paid in a timely manner. 
• If you still decide to get into business, and do it well, chances are you will be successful. Here's wishing you every success. 

Richie B. is a Business Consultant & Trainer located in Barbados. He's well versed in business development for start ups, expansions, and turn-around projects. Richie's also capable of training to implement the plans that have been developed. For more information, see Blades & Blades Consultancy Services.

The Potential in People

There's something about sharing business information with people that's exciting.  At least I find so. When participants arrive they have all kinds of expectations, their needs for information are quite varied and numerous.

Over the years, I have been rewarded with success stories from programs that we have conducted. In some cases the results were fast. Here are a few:

• Learning what I did from this program, I went out and implemented some of what I learnt with tremendous results. I'm here again to see what else I may have missed. 
• When you said what you did about handling objections in the sales process and that we should never allow the same answer to stump us more than once, you got me listening. When you suggested some of the responses, I tried them and got significant results. Thank you. 
• Treating my work colleagues as customers has made a difference to my work day. Our environment is so much more friendly and productive. We get more done in less time and with little stress. Please come again. 
• Richie B. I have done programs with you that included customer service, sales, business planning,  and they have all yielded fruit. Whatever you put on in the future, and I can make it, I'll be there. 

Comments like these warm the heart. I remember stopping the use of reviews in our training since I once got graded 11's with 10 being the top end of the scale outlining excellence. My reasoning was that it may have caused me to lose my edge by becoming complacent. 

Sometimes, we would be there to do just one training program. Especially having been told that there were budget constraints. When the organization realized the effectiveness of the program, the changes in the participants, and the speed with which they saw results (sometimes as quickly as 24 - 48 hours); we would be called back for further programs often within weeks of completion. 

There was one client in the early days that we prospected for five (5) years before we closed the deal for us to do one program. Within weeks of completing that program on customer service, we went back on multiple occasions within that said year to do sales, and then team building. We were then subsequently booked almost yearly since that time. 

Within the last couple of years we have been conducting training in business planning, complete with the final sessions being to have meetings with investors and financiers. The participants loved the process, so did those with the money. Since they were getting people who were at least prepared in so many ways to do business. 

There are too many stories to share in this short article. I would love to hear yours too. Perhaps we can do business sometime. Check us out. We just love to see other people realize their potential. 

My Teacher - Experience

Those who know me, would realize that when I interact with them, I tend to be direct. Up to this week, I was told that by someone who just met me fleetingly. Having heard it so often, I paused to think about how my characteristic trait was affecting others with whom I interacted. Further probing revealed that though direct, I am not brash.

Let's turn to what excites me immensely - Business. 

I just love it when people bring me business problems that seem insurmountable. It may seem strange but some people like puzzles, I like the ones that have real life effects. When people describe their challenges to me, I almost immediately or at least within a couple days am able to identify solutions to the challenge. Not from the standpoint of any special gifting that I may have. It often comes from experience. 

What gives me this immense experience?

Usually I would have gone through a similar experience before either via a third party or personally. Lots of things happen to me, and truthfully, I often ask God why these situations are happening to me. One time after  my pleading for an answer, I finally got it. "It's not about you." 

What a revelation that was...

Who trains the trainer? Who develops the consultant? In my case, it's experience. What has experience taught me? Here are a couple, just a few of those lessons. 

• It is possible to realize just about any business deal providing you communicate you case well. 
• All things are possible, when presented with the right conditions. The word can't exist only when all the angles haven't been developed / explored. 
• You don't necessarily need an asset base to obtain money. You need to demonstrate a clear and reliable, well thought out and practical system of operating, marketing, and financing. 

Because of these and similar lessons, through God's grace. We've successfully:

• Obtained financing from a local bank for a business established in another country
• Employ turn around strategies for entities that were in the "red" permitting them to get their finances in the black within rather short times. The fastest one was a one day turnaround. The second one was a six figure turnaround within 90 days. 
• Enabled an entity to secure 3 forms of financing with one document
• Loan
• Direct Investment
• Grant Funding
• Developed collaborations whereby teams have helped businesses and charities realize their business objectives within the required time lines and within budget. 

There's something about developing the plans and then providing the training for the implementation of the same plans. Those entities enjoy greater success. Did I tell you the amount of fun I have helping these entities? It's exhilarating! 

Maybe we can do business sometime... 

Thank you experience. You're a great teacher. 

Just thinking...about money

How can business be done faster at a slower more methodical pace? Is a question that comes to mind on occasion.  We live in the islands and often times end up so busy that we rarely get to enjoy what's around us.

They are people who have to spend thousands of dollars to get here to have a sea bath, feel the sand sift through their toes, or just feel the salty air against their skin as they sip their favorite drink.

We are surrounded by all the wonderful herbs that can help with the healing of most illnesses. Yet, we are too busy to enjoy them.

Why do we have the internet? In an age of the super highway one would think that by now we can do most things more easily. The banks are still being resistant to PayPal; even though the said PayPal has authorized that citizens within the islands can use their system for receiving payments and not only make them like once before.

How can this help enable the entrepreneurial climate? I would have thought that by now a seminar about using PayPal to enhance your business banking experience would have been introduced to the public. I would have imagined that such a seminar would be speaking to the safety of using such a service and what you should look out for in terms of virtual trading on the internet. We seem to be fearful of what can happen rather than equipping our business people.

I will stop here now. Got to head out for the office and realized that I was just thinking something that can be quite viable. Now I can't wait to get to work.

Have a great day folks. We'll link soon.

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