When -- and How -- to Reposition Your Business

When -- and How -- to Reposition Your Business
by Ram Charan

From mom-and-pop shops to regional manufacturers to vast Fortune 500 corporations, the range of disparate businesses that make up the global economy is almost mind-boggling.

Yet for all of their diversity, businesses of every size, shape, and location have one vital thing in common: the need to make money.

Taking a Position

If you're not generating cash, covering your expenses, and providing a financial return to banks or investors, you're not likely to be in business for long.

When your business can't achieve those simple things, you may be failing to execute. But equally likely today, your business may need to be repositioned.

Positioning means creating an unmistakably clear central idea for your business that does two things: meets customers' needs better than other options, and makes money.

Out with the Old

Positioning and repositioning a business is the most difficult know-how to master. Maybe that's why it's in such short supply at a time when it's so desperately needed.

Positioning methods that worked for decades are crumbling with increasing regularity. Think of the U.S. auto industry or of the troubled newspaper industry.

Think, too, of Wal-Mart, which is wrestling with slowing comp sales growth (sales at stores open for at least one year) largely because consumers' lifestyles are changing. Meanwhile, Target appears to be in the mainstream of changing lifestyles and its comp sales are growing faster.

Given this external context, should Wal-Mart think hard about repositioning its business?

Unforeseen Changes

Some leaders try to stem declining profits, revenues, or market share with a one-time, one-dimensional fix, such as cutting prices or dumping more money into advertising to enlarge the company's "slice of the pie." They think, or hope, that the downturn is temporary.

Too often, more profound action is needed. In today's environment, leaders can expect to have to reposition their companies four or five times over the course of their careers.

For instance, repositioning may be required when:

• Technology changes
For over 100 years Kodak was a stable, profitable business, selling photographic equipment, supplies, and film at high margins. The emergence of digital photography, however, caused sales to decline, and the company went into a long period of deep soul-searching as it tried to reposition itself as a player in the digital imaging market.

In doing so, it introduced digital photography products for consumers and more recently moved into inkjet printers, pitting itself against highly successful and extremely well-embedded Hewlett-Packard.

Newspapers used to think they competed against each other. But ever since the Internet, they've lost readership to web sites and advertising to major search engines and online job boards.

Today, the traditional newspaper business model is universally broken. No one as yet has successfully repositioned their business to take advantage of the proliferation of media and changes in how consumers use it.

• Competitors change
Positioning is a fast-evolving game in which players act and react to one another. Just when you find a great way to reposition your business, a complacent competitor wakes up and changes the game.

Any time a competitor changes its positioning, it can affect yours. If Wal-Mart successfully repositions itself around providing value to slightly more upscale customers, for instance, will it cause blurring and confusion between Target and Wal-Mart?

While Kodak is focused on repositioning itself as a better alternative for photo printing, HP isn't likely to sit idle. This battle is going to continue for some time. If Kodak succeeds and HP doesn't pay attention to it, will HP then have to reposition its printer business?

Mental Agility Required

Tighter profits may indicate that your positioning is slipping, but tracking external trends will help you detect any threats to your positioning much sooner. You'll have more time to adjust. (See my earlier column "See Your Business from the Outside In" for more on this.)

As you see external patterns taking shape, keep asking yourself, "In light of what I see, can the company continue to make money the way it has in the past? If not, why not?"

Then it may be time for the mental challenge of figuring out a new positioning, preferably a game-changing central idea that can transform a whole industry, as Google did. This is a matter of taking many factors into consideration and going through many iterations until things click.

Don't think your work is done when you come up with a way to position the business that appeals to consumers. You must know for sure how you'll make money at it.

Down to Specifics

You have to think at multiple levels for this. Some leaders are particularly gifted at creating visions for their organizations. They think expansively and conceptually, and often possess the communication skills to gain support for their ideas.

But leaders who master the know-how of positioning also understand the importance of ground-level specifics: Exactly why will customers prefer our offerings? How will the sources of revenue and cost structure change? Will we be more or less capital-intensive? How will cash flow be affected? How are competitors likely to respond? And do we have, or can we get, the capabilities to actually make it happen?

Concrete answers to such questions are necessities if an organization is to be successfully repositioned.

The Psychological Challenge

Repositioning a business is a test of a leader's psychological toughness. It's one of the greatest challenges a leader can take on, and it can prove time-consuming and require a great deal of perseverance.

You need to be open, receptive, and perceptive, actively seeking out the signs that point to the need for the business to be shifted. And you need to willingly surround yourself with people who will challenge your assumptions and help you to take a brutally honest view of the business and its future prospects.

After all, even though repositioning a business can mean introducing exciting new products, adopting cutting-edge technology, or making a splashy entrance into a new market, it also can mean shuttering divisions, laying off workers, and answering to skeptical analysts and investors.

A Risk Worth Taking

Repositioning is definitely risky, but so is failing to reposition a business when the world is changing. It's been proven many times that delays can deeply damage a business.

Not every leader will have what it takes mentally and psychologically to make and follow through on such difficult decisions -- only those who can set aside emotion, be comfortable with the risks, think creatively and at many levels, and do what's ultimately best for the business.

Regards Extraordinary,

Wuryanano

http://www.wuryanano.com/

Kenyataan Atau Pura-Pura?

Setelah memajang selama beberapa bulan, SURVEY PENDAPAT tentang Pendapat Memulai Bisnis di Blog Saya, ternyata HASILNYA SANGAT MENGEJUTKAN...sungguh diluar perkiraan dan harapan saya. Selama beberapa bulan saya pajang Survey Pendapat itu, ternyata ada 600 orang resoponden yang mau ikut memberikan pendapatnya. Dan...sangat mengejutkan hasilnya, seperti yang bisa dilihat pada "image" di samping ini.

Pertanyaan saya, Pendapat Anda Tentang Memulai Bisnis Sendiri, dari 600 orang responden yang mengisi VOTE secara sukarela di Blog Saya, hasilnya sebagai berikut:

• Harus Punya Dana Besar: di Vote oleh 381 orang atau sebesar 64 %


• Harus Punya Keberanian: di Vote oleh 158 orang atau sebesar 26 %


• Perlu PartnerBisnis: di Vote oleh 13 orang atau sebesar 2 %


• Perlu Mentoring Bisnis: di Vote oleh 28 orang atau sebesar 5 %


• Perlu Dukungan Keluarga: di Vote oleh 7 orang atau sebesar 1 %


• Belum Berani Bersikap: di Vote oleh 13 orang atau sebesar 2 %

Itulah hasil mengejutkan, yang saya maksudkan.

Apakah hasil Polling di Blog Saya ini bisa mewakili suara sebagian orang, yang berpendapat atau punya pandangan mengenai memulai bisnis sendiri, saya pun belum tahu pastinya. Dan bisa jadi, memang kita tidak akan tahu atau tak akan pernah tahu kepastian Mental Entrepreneurship seseorang.

Kalau saya lihat di berbagai talkshow, seminar dan workshop tentang kewirausahaan atau entrepreneurship, kok sepertinya para pesertanya sangat antusias dan passion bahwa mereka ini PASTI BERANI MEMULAI USAHA SENDIRI. Bahkan, saya juga pernah melakukan survey pendapat secara offline langsung ketemu responden, untuk mengisi Vote di Form yang telah saya siapkan...hasilnya juga sangat menonjol di KEBERANIAN MEMULAI USAHA.

Boleh dikata, sebagian besar orang yang saya survey ketemu langsung, maupun mereka yang hadir di berbagai talkshow, seminar ataupun workshop kewirausahaan atau entrepreneurship; selalu berani mengatakan bahwa Modal Uang Bukanlah yang Utama. Mereka pun berkata bahwa yang penting dipunyai seseorang untuk memulai bisnis adalah BERANI, dan...BERANI. Modal Uang bisa belakangan, begitu rata-rata kata mereka.

Nah, sungguh mengherankan, mengapa setelah saya lakukan Survey Pendapat melalui Dunia Maya (internet) lewat Blog Saya ini, kok sebagian besar justru MENGANGGAP bahwa Modal Uang adalah yang Utama...HARUS PUNYA DANA BESAR...baru menyusul Punya Keberanian.

Saya jadi bertanya pada diri saya sendiri, mengapa bisa begitu? Apakah mereka, saat bertemu di dunia nyata, ketemu langsung di berbagai acara motivasi entrepreneurship itu...ADA RASA MALU untuk mengungkapkan pandangannya secara jujur? Sehingga akhirnya mereka ini SEGAN mengatakan bahwa mereka TIDAK BERANI MEMULAI USAHA, dan...merasa HARUS PUNYA DANA BESAR terlebih dulu, baru coba memulai usaha?

Apakah hal ini yang sebenarnya terjadi di dunia nyata? Mentalitas Entrepreneur Pura-Pura? Yaa...pura-pura berani memulai usaha, jika ditanya secara langsung dan ketemu langsung secara "kopi darat". Padahal sesungguhnya jauh di dalam pikiran dan lubuk hatinya...mereka aslinya masih TAKUT, KHAWATIR bagaimana cara memulai usahanya...tapi mereka GENGSI atau MALU untuk mengatakan yang sejujurnya.

Tapi sangat BEDA halnya, jika Polling Pendapat itu lewat dunia maya atau internet seperti yang saya lakukan ini. Di dunia maya ini, mereka yang memberikan Vote, bisa bebas saja tanpa perlu takut diketahui identitas dirinya. Dan...akhirnya, mereka ini bisa lebih JUJUR dalam berpendapat mengenai apa yang ada di dalam pikirannya, saat ditanya Pendapat Tentang Memulai Bisnis Sendiri ini...tanpa perlu was-was dan malu, dan nggak perlu jaga gengsi; kalau nantinya dianggap sebagai orang yang nggak berani memulai bisnis sendiri. Karena kan jati dirinya memang nggak mungkin diketahui lewat Vote di Blog Saya ini.

So, apapun alasannya, hasil dari Survey Pendapat tentang Memulai Bisnis Sendiri, memang begitu adanya, seperti yang Anda lihat pada "image" di atas ini. Semoga hasil ini bisa memberikan bahan pemikiran ulang bagi kita semua, bahwa ada kemungkinan perbedaan yang bisa jadi sangat signifikan tentang kualitas mental entrepreneurship di kalangan masyarakat, yang secara kasat mata, seakan-akan sudah sebagian besar masyarakat punya mental entrepreneurship...berani memulai usaha sendiri.

Akan tetapi TERNYATA ada kemungkinan besar juga, bahwa JAUH di dalam sana...di dalam pikiran dan lubuk hati mereka...MASIH TAKUT dan KHAWATIR MEMULAI BISNIS SENDIRI, sehingga mereka tetap saja beranggapan bahwa UNTUK MEMULAI BISNIS...HARUS PUNYA MODAL BESAR terlebih dulu.

Ayo...kita bersama-sama tetap bergandeng tangan untuk selalu mengobarkan SEMANGAT ENTREPRENEUR SEJATI dimulai dari lingkungan sekitar kita, dan semakin meluas...dan terus semakin meluas...seperti ketika kita menjatuhkan sebuah batu di air, yang gelombangnya semakin melebar...semakin meluas jauh dari titik jatuhnya batu itu.

Sukses dan Berkah selalu buat Entrepreneur Indonesia!

Salam Luar Biasa Prima!

Wuryanano

http://www.swastikaprima.ac.id/

Measure Your Business Plan Results

Measure Your Business Plan Results

By: Tim Berry

No plan is ever right on, but having no plan is never right. Here's how to analyze the actual results compared to the plan.

Plans are wrong, but nonetheless vital. There's a paradox for you. It's a simple statement, one that I hope is somewhat surprising coming from a business planning expert; but it's still very important. And it gets right to the heart of what business planning is all about.

More than ever, those who plan look to projections that often miss the mark. Nobody I know, and in fact nobody I've even heard about, accurately predicted the sharp plunge in the economy last fall. So of course those who actually use a business planning process are implementing a lot of course corrections, reviews and revisions.

It's a great example of how this paradoxical statement--plans are wrong, but nonetheless vital--makes sense. As we look at the year to come, most of us are dialing down our forecasts. Does that mean we wasted our time making them? Not at all. How do we even make sense of where we are if we don't have a map that shows us how we got there?

If you had a plan earlier this year and results differed greatly from what was expected, I hope you're taking the time to compare those results, in detail, to the earlier plan. Look for where the differences were greatest. Look for where expenses were tied to sales. Look for the bright spots where sales held up. Look for how the numbers were supposed to come together, and not just how they didn't.

And if you didn't have a plan, then think of this as a good time to get a planning process started so you have a better view of your business in the future. Start making simple sales and expense projections. Don't worry that they're wrong; just make sure you go back each month and plot where and how and in which direction they were wrong so you can correct them.

You should only be wrong a month at a time, and as you use that plan-vs.-results analysis to look more closely at how things are going, you adjust again and improve results for the next time around. With each month, your grasp on reality gets better.

And then, as things go back up--and they will--you'll be able to use what you learned to see the signs, anticipate and act accordingly.

This kind of planning process is what's meant by the phrase, "The plan may be wrong, but planning is essential." Then there's another old military saying: "No battle plan ever survived the first encounter with the enemy." What does happen, though, with battle plans as well as business plans, is you don't know how to recover or how to adjust the plan if you didn't have a plan in the first place.

Regards Extraordinary,

Wuryanano

http://wuryanano.wordpress.com/

Ten Things Every Good Business Plan Must Have

Ten Things Every Good Business Plan Must Have

By: Mary Crane

Solid business plans don't guarantee success. But for entrepreneurs with decent ideas, they surely boost the odds.

A good plan accomplishes three important tasks. First, it aligns the management team toward a common set of goals. Then, once the vision is on paper, it forces the team to take a long, hard look at the feasibility of the business. "A business plan is like a dry run to see if there is a major problem with your business before losing any money," says Mike McKeever, author of How To Write A Business Plan. Finally, a business plan is a sales document: It aims to attract professional investors who may only have time for a cursory glance at each idea that crosses their desks.

The fact is, crafting a meaningful business plan takes thought, time and money. If you farm out the writing, the price tag could run from $5,000 to $40,000, including market research, legal and financial expertise, says Jim Casparie, chief executive of The Venture Alliance, which gives fledgling companies advice on nabbing venture funding. For that, entrepreneurs get a 30- to 40-page document that often obscures even the most fundamental facts about the business--what it does and how it makes money.

"If, after reading those first few lines, I still don't know what they're doing, that's not a good sign," says Casparie. But it's not just the nuts and bolts that matter, he adds: "You have to tell me in a few lines why you have a competitive advantage in whatever market you're going after, because I need to know why you're going to win. Most plans don't do that."

Here, then, are some highlights of an effective business plan.

Start with a clear, concise executive summary of your business. Think of it like an elevator pitch. In no more than two pages, billboard all the important stuff. At the top, communicate your value proposition: what your company does, how it will make money and why customers will want to pay for your product or service. If you are sending your plan to investors, include the amount of money you need and how you plan to use it. You have to know the whole picture before you can boil things down, so tackle the summary after finishing the rest of your plan.

Next, establish the market opportunity. Answer questions like: How large is your target market? How fast is it growing? Where are the opportunities and threats, and how will you deal with them? Again, highlight your value proposition. Most of this market information can be found through industry associations, chambers of commerce, census data or even from other business owners. (Be sure to source all of your information in case you are asked to back up your claims or need to update your business plan.)

While you may have convinced yourself that your product or service is unique, don't fall into that trap. Instead, get real and size up the competition: Who are they? What do they sell? How much market share do they have? Why will customers choose your product or service instead of theirs? What are the barriers to entry? Remember to include indirect competitors--those with similar capabilities that currently cater to a different market but could choose to challenge you down the road.

Now that you've established your idea, start addressing the execution--specifically, your team. Include profiles of each of your business's founders, partners or officers and what kinds of skills, qualifications and accomplishments they bring to the table. (Include resumes in an appendix.)
If potential investors have read this far, it's time to give them the nuts and bolts of your business model. This includes a detailed description of all revenue streams (product sales, advertising, services, licensing) and the company's cost structure (salaries, rent, inventory, maintenance). Be sure to list all assumptions and provide a justification for them. Also, include names of key suppliers or distribution partners.

After all of that, one big question still remains: Exactly how much money does your business stand to make? More important, when will the cash come in the door? That's why you need a section containing past financial performance (if your company is a going concern) and financial projections. Three-year forward-looking profit-and-loss, balance sheet and cash-flow statements are a must--as is a break-even analysis that shows how much revenue you need to cover your initial investment.

For early stage companies with only so much in the bank, the cash-flow statement comparing quarterly receivables to payables is most critical. "Everyone misunderstands cash flow," says Tim Berry, president of business-plan software company Palo Alto Software. "People think that if they plan for [accounting] profits, they'll have cash flow. But many companies that go under are profitable when they die, because profits aren't cash."

After you've buffed your plan to a shine, don't file it away to gather dust. "A business plan is the beginning of a process," says Berry. "Planning is like steering, and steering means constantly correcting errors. The plan itself holds just a piece of the value; it's the going back and seeing where you were wrong and why that matters."

For more help writing your own business plan, check out the free sample plans and advice from your local Small Business Development Center, SCORE (Service Corps of Retired Executives) office, or Berry's BPlans.com, which offers free sample business plans online.

Regards Extraordinary,

Wuryanano

http://wuryanano.wordpress.com/