This morning, I'm heading out to run the 500 Festival Mini-Marathon. After weeks of training, it all boils down to left, right, left right.
I'm thinking that training and running a race is no different than preparing for funding your company. Business funding in Indianapolis or any other city involves the same discipline and persistence.
There will be positive days and negative days along the way especially if you are in a project involving business formation. As a business consulting firm, we see the training from an outsiders perspective.
Our advice: Stick with the training. When you cross the finish line, you will appreciate all the work along the journey.
It takes more than one link to create a chain. In a similar fashion, the supply chain of a company involves several links to be complete.
As a business consulting firm, we are currently involved with the creation of a supply chain management company. When I say supply chain, I'm describing a business focused on warehousing, fulfillment, logistics, transportation and the underlying technology. Going through the process of educating myself about this industry has given me a deeper respect for the connection points necessary to make a business run.
Most companies tend to think that the most important supply chain is the one which helps achieve a client interaction. What about the supply chain that helps a company function. Have you ever though about what it takes to get that pen you are using to your office and into your hand? Here's a clue: it doesn't just magically appear at Staples. Whether you are an Indiana life science company or a marketing firm from South Africa.
What does your internal supply chain look like? Do you manage it the same as your client-facing supply chain?
When you read the title, you probably thought I was going to mention China, India, etc. Outsourcing is a broad term. For example, if your company uses an outside printing firm to complete your marketing materials, then you are outsourcing.
We are currently working on a project for a medical device start-up in Central Indiana. The scope of the project involves formation of the supply chain for the product to get to market.
During our initial conversation with the client, we discussed the potential for outsourcing the manufacturing to places outside of Indiana. I know that many of you are not happy with outsourcing in its various forms. In my opinion, I think that outsourcing can be the key to the growth of a business. The focus of the business should be on its core expertise. All the rest, you need to outsource.
Fortunately, we are working with our Indianapolis business relationships to keep the initial launch local. As a global business consulting firm, we could have worked with our partners outside of Indiana. We decided to outsource locally to control the initial process.
Is your company focusing 100% on its core business?
A non-scientific review of Indianapolis business trends reveals that technology companies are growing despite the economy. Now, I'm not selecting the technology industry to suggest that everyone should switch to that industry.
As a business consulting firm, we use technology but are far from a technology company. One of our partners, Dave Castor at Alerding Castor, keeps our team informed about technology.
I just think that other industries can learn from the technology industry. Whether your firm is a manufacturer or a business services organization, the lessons from the technology company can help you.
I could use examples from our company or our clients but I thought I would a share a video clip which prompted my thoughts on this subject. Although David Lawee, VP Corporate Development at Google is speaking about business formation issues related to technology, he presented two themes that resonated with me and probably will with you as well.
#1 - Passion, Partnerships and Speed #2 - Maximize time and people resources
We all use technology in our organizations for-profit and NGO alike. What can you or have you learned from those organizations that create the technology you use?
The time for complaining about the economy is over. Whether you are a start-up dealing with business formation issues or a existing company looking for ways to grow your business, it's time to walk through the door.
Business owners need to take a step back from the noise and review the landscape. Broadly speaking, business are failing and people are losing jobs. Upon further review, some businesses are failing due to bad management or lack of investing in their infrastructure during the good times. If your organization is looking to survive or grow, you may want to explore strategies outside of working with banks or grants for funding sources to assist with growth.
For example, one of our clients, a start-up, is working on closing their first round of funding. They will use the funding to begin production of their product. In concert with the funding round, they have secured LOIs (Letters of Intent) and other agreements which will generate revenue in their first year. As a potential solution, we have been approached by and are in talks with several marketing firms which can make the investment. The marketing firm would be the strategic partner and investor. The revenues of both companies are projected to benefit from this partnership.
Although we are a business consulting firm based in Indianapolis, we are observing the success of alternative business models from Seattle to South Africa.
Have you been successful with strategic partners investing in your business?
Much has been made about smart grids, energy independence, clean energy, etc. Whether you like it or not, I think we will have a clean energy infrastructure in place in the United States. Even today, the National Clean Energy Project forum is being held in Washington, DC. This forum is a follow-up to the National Clean Energy Summit.
From a corporate development standpoint, this will present an opportunity for those companies willing to get connected to the grid. By "grid", I'm talking about the technologies, organizations and funding sources that will help to change the energy infrastructure paradigm.
We are currently working on business development opportunities for a client in the energy management sector. Their technology connects the suppliers, consumers and the energy markets. This is one example a business opportunity.
Regarding funding, several top VC firms are looking to invest in clean energy including Kleiner Perkins (KPCB GreenTech Team). Multiple funding sources may add in business formation efforts.
As a business consulting firm and network orchestration firm, we are fortunate to be on the front line of the clean energy movement. Yes, clean energy is good for the environment but it can also be good for the growth of your business. I think the rhetoric is about to take a back seat to action by mutliple sectors. Will your company be connected to the grid..the action?
It is often said that your reputation is defined by your community and the company you keep.
As
a global business consulting firm, we are fortunate to work with a
phenomenal community consisting our clients and partners. Although the
confidential nature of our relationships prevents me from mentioning
our entire community, I want to mention a few companies that have made
2008 a great year for our team.
Our relationships with our virtual business partners including the entrepreneurial business law firm, Alerding Castor, and the creative business blogging firm, Compendium Blogware, have helped us to expand our platform of services and geographic reach. Most recently, we have expanded our reach to Africa.
We look forward to continuing our relationships in 2009.
What do you want your equation to look like for 2009?
I've been reading a few new books lately. While reviewing my notes from Thirteen Days by Robert F. Kennedy, I was reminded of the lessons that can and should be learned from alternate sources.
In the book, a quote from Basil Liddell Hart is mentioned with regard to proper negotiations.
"Keep strong, if possible. In any case, keep cool. Have unlimited patience. Never corner an opponent and always assist him to save face. Put yourself in his shoes--so as to see things through his eyes. Avoid self-righteousness like the devil--nothing is so self-blinding."
Although this quote refers to military-related negotiations, the lessons are transferable to other industry settings. For example, one of our current projects for a client includes business formation activities and negotiating licensing agreements for their patented product. In order to complete these agreements, we must follow some of the lessons from Mr. Hart's quote.
In another situation, we have been retained to consult on an equity raise for an Indiana life science company. During the raise, we have to always consider the situation through the eyes of our investors.
As a global knowledge management firm, we also encounter the complexities of international negotiations which include the need to understand the cultural differences. This is especially true while working in emerging markets.
What lessons have you learned from your negotiations?
The use of the correct words to convey your company's message is paramount. This is true whether you are crafting a blog post for online social networking or attending a meeting for one of your business networking groups.
We have started to use a new tool (thanks to my attorney - Dave Castor) to assist our clients with crafting a consistent message. Along with all the other tools on the market, we have found Wordle to be a simple tool for quick check up. Of course, we also utilize the Wordle program. In a world or exponential amounts of information, a consistent message is key. The image above is the most recent snapshot of our blog. We are happy to see that our focus areas are represented including clients, business consulting and international/global.
Have you used Wordle in the past? If not, you may be surprised by the results. What are you really saying to your clients and partners?
The temperature outside has dropped 30 degrees in the last 24 hours here in Indianapolis. With the frigid temperatures and strong winds, a strategy from staying warm has to be implemented. One of the key strategies is to dress in layers rather than wearing one big coat.
In business, we are all experiencing a change in the weather. If we try to use a one-size-fits-all solution, we may not be able to weather the storm. We prefer to advise our clients on incremental solutions similar to wearing layers of clothing to protect yourself from the cold weather. You've heard about the principles of Kaizen and Six Sigma. For those that don't know, Kaizen focuses on ocuses on continuous improvement. Six Sigma focuses on improving processes and eliminating defects.
As a business consulting firm, we help our clients (including virtual business clients) to implement the components of these principles that work for their given industry. From a law firm to an Indiana life science company, we partner with our clients to develop incremental solutions which can help to provide stability in a time of "quick fixes".
When the winter temperatures hit our area, we prefer to use layers and dress for long-term warmth. What does your winter clothing look like?
In our role as a business consulting and knowledge management firm, we assist our clients in several areas including business formation. I'm excited to tell you that we have been working on the creating a new business of our own.
We are finalizing the formation of a specialized division focused on emerging markets in South Africa, Zimbabwe and Southern Africa. We expect to finalize by the end of the year. Due to this expansion, we are welcoming a new member to the S4X family. Brighton Dube will be our Senior Managing Director for Southern Africa Strategic Initiatives.
I'll keep you posted on what the equation for the division looks like. Is Africa in your equation?
“Logic will get you from A to B. Imagination will take you everywhere.” - Albert Einstein
On the recommendation of good friend, I purchased and started reading Einstein, His Life and Universe by Walter Isaacson. After starting the book, I can't help but realize the lessons from Mr. Einstein that can be transferred into business.
From the beginning, Einstein was a curious person with a continual thirst for knowledge. I think we tend to forget in business that there is always an opportunity to gain knowledge. Then, we can use this knowledge to impact our business and clients. Business formation funding is an area where a company could leverage this type of thirst. If you think traditionally (especially in the current environment), the only solution is a bank. Through this thirst for knowledge, you would learn there are many ways to structure funding including private equity. My partner Dave Castor explains the private equity in detail in his blog.
From emerging markets to established markets, this thirst for knowledge can lead to many opportunities. As a business consulting firm, we work to help our clients understand the value of this thirst to their firm's culture. This holds true in a slow economy or fast-moving economy.
What new opportunities have happened due to your thirst for knowledge?
In recent BusinessWeek article titled Why Clean Tech Is Taking Biotech's Shine, the author makes an observation on the linkages between the life science and clean tech industries and the entrepreneurs in each. Although I don’t agree with the complete analysis, I understand the similarities.
The article made me think about the linkages we see from a business consulting perspective everyday. In addition to the common skill sets of our clients. We look to other industries such as the hospitality industry for examples of best practices or transferable linkages. For example, an Indiana life science company’s sales team could learn from a team that serves them while dining at a fine dining establishment such as Moe’s Steakhouse. From touch points to playing a particular role for the particular client, there are many lessons to be learned.
On a more technical level, professional services firms such as a solo practice law firms can learn many lessons from a start-up IT firm. Consider business development. A start-up IT firm will use guerrilla marketing including blogging to make things happen. Forget the yellow pages. The solo practice firm could be successful by using just this aspect of the IT ecology.
Whether you are hiring new people or growing your current market share, you can learn from the indirect linkages you have with other industries. Have you checked out your indirect peer group lately?
I had a mid-morning meeting this morning with a business partner. His firm focuses the social media industry. During the meeting, we talked about various ways to increase business development opportunities without straying outside of your core business.
From a consulting standpoint, we discussed how we tend to forget that our most valuable assets are our knowledge and time. He mentioned how his firm has given away strategic implementation materials to potential clients. Now, his team is working on maximizing the knowledge they have acquired over the years. I know they will do just fine.
Are you leaving revenue-generating opportunities on the table?
Yesterday, I attended a performance in Chicago by the Born Again Floozies. A good friend of mine is a member of the band and invited me up for the day. My plan was to use the day to recharge and relax. I was able to do both with an added bonus.
The bonus was an introduction to a potential business partner. This potential partner is the president of a global corporate security firm and friend of my friend's husband. We talked about our virtual business model at S4X and the business consulting we provide for our clients. He explained the intricacies of corporate security.
Moving forward, we both believe by working together in some capacity we can provide more comprehensive business solutions for our clients. Of course, the next meeting will be at another Born Again Floozies concert.
Everyday the news seems to be getting worse. High gas prices, high food prices, on and on. But as the say goes, "one person's trash...".
In today's economy, there are still deals being done. Yes, the credit markets are tight. That does not mean the economy is stopping its progress. Are you reviewing your strategic plan? From a business consulting perspective, Our clients are looking to global joint venture opportunities, virtual business models and acquisitions to take advantage of the current market
Are you turning your trash into treasure or will another organization do it for you without you benefiting?
As a business consulting firm, we use practical connections for creating solutions. Last night I volunteered for the Drum Corps International World Championships in Bloomington, Indiana.
From the press box, I watched the collection of individuals in each of the drum corps execute on the movements and musical notes. They moved onto the field, performed and moved off the field as one unit. Each individual doing his or her part to make the system work. The drum corps have been working on these performances for several months.
A business could learn from the focused efforts of these corps. In the off-season, they have their strategic sessions. In the spring, the strategic implementation begins. In the summer, the execution and refinement begins. Behind the scenes, the business social networking occurs amongst the executives of the corps and the typical social networking occurs between the corps members. All of this occurs in a highly competitive landscape. For example, each year, more than 8,000 students audition for the fewer than 3,500 positions available in top-tier DCI member corps.
If you have never attended an event, I highly recommend you check it out. In the meantime, they have a promo video that helps to showcase the event.
Lessons can be learned in the most unlikely places. Are you keeping your eyes open for learning opportunities?
Yes, you read the title correctly. On the recommendation of a colleague, I've just started reading, The Art of the Start by Guy Kawasaki. After I researched Guy, I found his blog, How to Change the World.
In the book, Guy talks about starting and not waiting for perfection. I think this holds true for most situations. For business blogging, I have to remind myself to write without limits then send it. I can refine it later. If you are in the business development role, you will never have the perfect situation to further the relationship or make the sale.
As a solutions-based business consulting firm, we work with our start-up clients to help them understand that starting the business now is better than waiting for the "right time". If they aren't moving forward on their idea, the world will pass them up.
I recommend this book for many reasons but the primary reason that it speaks to starting now. Business formation does not need perfection to happen, it needs action. Are you starting or planning?
In a recent article in the NY Times titled As Travel Costs Rise, More Meetings Go Virtual, Steve Lohr talks about the increasing use of videoconferencing by global firms. The rise in travel costs was discussed as a reason for this increase.
In part, I agree with Mr. Lohr. Yes, the travel costs are increasing. Additionally, I think leveraging technology in order to increase the ROI per employee should be considered. As a business consulting firm, we view the refinement of the technology as an internal and external benefit. Internally, we are able to decrease our costs and increase business development opportunities by the use of webinars, business blogging, social networking sites and videoconferencing. Externally, we are able to work more efficiently with our clients by using similar technologies.
For start-up firms, the use of telepresence technologies can help to increase your efficiencies and set you apart from your competition. The adoption and acceptance of these technologies will only increase.
Are you positioning your organization to benefit or will you be left on the sidelines while your competitors be the market leaders?
When I attend a function hosted by any of the numerous business networking groups, I tend to observe two types of people. The business card collector/networker and the business formation networker. We all know the collector. They tend to ask a couple of quick questions and then ask for your card and move on to the next person.
The second person is focused on the long-term view. As a business consulting firm focused on solutions, the methods of the second appeal to me. When attending an event such as the one described, the goal should be to foster long-term relationships which could lead to future collaborations not just one deal and done. Collaboration lead to a growth in the knowledge base of all parties. Knowledge leads to solutions.
Which would you rather have...one big deal or several small-to-medium sized deals over multiple years?
This morning, I'm heading out to run the 500 Festival Mini-Marathon. After weeks of training, it all boils down to left, right, left right.
It takes more than one link to create a chain. In a similar fashion, the supply chain of a company involves several links to be complete.
When you read the title, you probably thought I was going to mention China, India, etc. Outsourcing is a broad term. For example, if your company uses an outside printing firm to complete your marketing materials, then you are outsourcing. 
Much has been made about smart grids, energy independence, clean energy, etc. Whether you like it or not, I think we will have a clean energy infrastructure in place in the United States. Even today, the 
It is often said that your reputation is defined by your community and the company you keep.
OR 
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