6 Simple Answers Your Business Plan Should Provide

As I finish the editing on my upcoming book – How to Successfully Startup a Small Bakery Business, I cannot help but realize the importance of planning before starting any business venture. Here in Kenya, there is a particularly disturbing belief or perhaps I should say a kind of ignorance on the importance of a business plan. As I meet startup entrepreneurs and train individuals on starting up small bakery businesses; I continue to stress the importance of a business plan – even a basic one just to get you started.
Now you might wonder why I stress this point and I’ve decided to share it in a different way today. I want to give you six questions that your basic business plan can and should have answers to regarding your small startup. These answers will provide clarity and direction to your business as you start and continue growing. As I always point out, your business plan will change as your business grows and adapts; however, it’s important to have a basic plan as you start. You can then go changing it and adapting it to any business model or market changes you encounter as you progress.

It's very important!

It’s very important!

What?
The first question your basic business plan should answer is ‘what is your business?’ This is the part where you write your business name and the products and/or services it offers. Today I will use an example of a service business start-up that provides food delivery services. The ‘what’ of this business would be: Fresh Delivery Services provides food delivery services to its clients in Nairobi County.

What are you selling?

What are you selling?

Why?
The second question your plan answers is ‘Why your business offers the products and/or services?’ This is a very important question for your business since it should highlight what sets your business apart from any other businesses in that industry. To give an example of the ‘why’ using Fresh Delivery Services.
We realized that most delivery or errand service companies in the market offer delivery for many items but not for food. Those that do are not always effective or careful with the food contents and do not ensure customer satisfaction. Our errand services are targeted to only food and baked goods deliveries and we are well-equipped to assist in packaging, transporting and effective delivery of those goods.
Who?
Another important aspect of your business is who you’re selling to; your target customers. It is very important to know the types of customers you want to sell to in order to ensure the products and/or services are well suited to their needs as well as your marketing strategy. An example:
We offer our delivery services to home-based bakeries and catering businesses who deliver their food and baked products to their clients. We also make deliveries for restaurants and bakery shops who offer home or office delivery options to their clients as well.

Who is your target customer?

Who is your target customer?

Where?
Your basic business plan should state the location of your business as well as the location of your target customers who you are serving. This applies for both types of businesses who have brick and mortar locations such as shops, stores or warehouses. As well as any home-based businesses who deliver to their target customers. As we stated above, an example of our featured business is:
Fresh Delivery Services provides food delivery services to its clients anywhere in the Nairobi County area.
When?
This refers to the daily operations of your startup business. State the time schedules for both your in-house operational hours for employees; as well as for your clients’ delivery times.
Fresh Delivery Services is open from Monday to Saturday. Delivery hours are from 7 a.m. to 5 p.m. We are closed on Sundays.
Employee hours are as follows: Monday to Saturday 6.30 a.m. to 6 p.m. Closed on Sundays.
How?
Your business plan should state how you will sell products and/or services and how you will execute your daily operations. For your daily operations; it is important to have a simple system setup on daily tasks to be completed by your employees and yourself as well. You can create a basic operations manual based on the nature of your business. You should also have a marketing plan section in your business plan that describes the various marketing activities you will execute to attract your customers and therefore lead to sales for your business.
I hope these simple questions will help you while writing your basic business plan and answering them while doing so ^_^!
If you would like to get a free Basic Business Plan template, click on this link to get one.
Any questions on writing a basic business plan for your small business startup? Stuck on a specific section in your basic business plan writing? Feel free to ask below.
Please share this post if you found it helpful, help someone else who might need this information as well ^_^

4 Important Things that Start-Up Entrepreneurs need to always remember

I haven’t been posting consistently on this blog lately (I have decided to break the silence – and follow my own advice ^_^)

I was inspired to blog due to an interview I was invited to during the week of the GE Summit for a radio program called The Conversation for The BBC World Service. I was proud to be part of such an inspiring program and I met a lovely lady who was also guesting on the program; she is a co-founder of Closet 49, Serah Kanyua.

Our lovely hostess; Presenter Kim Chakanetsa, asked us several questions. One that really stood out for me and I thought was very important (enough to warrant a blog post ^_^) was: ” What do you think are the top tips for aspiring business women and men out there?” I will share my four top important tips for those who want to be or are starting out businesses.

1. Planning

Make sure before you start your business to plan ahead; make a business plan, including your start-up budget. Make an action list of what you need to do in order to get started properly. It’s also important to plan all other aspects of your life; if you’re an employee quitting a job to start a business, your personal life will change as well. Depending on what you were doing before starting your business, you need to adjust your life accordingly in order to focus completely on your business venture.

It's very important!

It’s very important!

2. Research

While you’re in the planning process for your business start-up, you also need to do a lot of research. It is imperative for your business’ success to conduct research on your business industry, your target customers, business location, whether your product or service is viable in the market and many other important aspects of your start-up. The reason it’s very important to conduct research is to reduce your business’ chance of failure. When you research thoroughly and plan properly; you have knowledge and insight that will increase your chance of success.

3. Mentorship

At any phase of starting up your business; whether it is during planning and research, after starting your business or during your entrepreneural journey – I think it’s important to have a mentor (or if you’re lucky, mentors). Mentors can be different types of people who help you gain insight into entrepreneurship. They can be individuals in your industry who guide you in the right direction while doing business; they can even be your customers or family members who also own businesses or among other individuals who offer insight and positive guidance to help improve your life. Mentors can help you “fail fast” as an entrepreneur – or at least help you avoid some business failures that slow down your business’ success. I can personally attest to the importance of having a mentor in your life as a start-up entrepreneur.

Get your own Yoda ^_^To guide you on the right path

Get your own Yoda ^_^To guide you on the right path

4. Self-Motivation

I said it on the interview and I will say it again – sometimes you don’t have someone to give you a pep talk; or to support you and inspire you daily. You have to wake up everyday and motivate yourself; you need to get up and tell yourself that you’re going to make it. You should be able to find various ways of getting inspiration to keep going; especially on those tough and challenging days. Whether it’s your favorite inspirational music, quotes that motivate you to do better or just an amazing pep talk to get you revved up for the day. Find your motivation daily, from within – then go out there and succeed!

Motivate yourself to succeed

Motivate yourself to succeed (Image Credit: BusinessDailyAfrica)

I hope those four business tips have helped you, especially if you’re planning on starting your own business soon. Make sure you are prepared before starting your venture (or as prepared as you can be).

Do you have any other important business tips to any aspiring start-up entrepreneurs you would love to share? Please do so below on the comment box – feedback is always appreciated ^_^

Don’t forget to share this awesome post with your friends – I bet they’ll thank you for it ^_^

3 Signs You Need To Change Your Business Model

I hope your New Years was great, mine most definitely was. I have been reviewing my business plan and model to see if I needed to change it for this new year. I feel that this has been a long time coming due to certain results in business actions that I took and therefore; I decided to sit down and see how to make necessary changes.

I’m sure as a start-up entrepreneur or even if you are a seasoned entrepreneur, you’ve made certain changes in your business model over time. This happens especially if you realize that you’re not getting desired results in your business or for other reasons. Today I want to share three signs that show you need to change your business model for the better in this new year.

1. Your sales have reduced drastically

If you realize that your sales have reduced a lot and you’re still doing the same things you’ve been doing in your business then you have to change your business model. You may be trying very hard to market to the same customers and you still don’t get higher sales; if anything, they continue dropping. This is a very big sign that you need to change the direction of your business (like big flashing red light kind of sign ^_^). If you can’t sell, then your business can’t survive. Find a way to change your business for the better.

26036627.cms

If your sales keep going down – something’s gotta change

2. Your market industry has changed

Customers sometimes change their preferences and tastes; what used to be a trending product or service stops being popular. As an entrepreneur, you have to continually observe these trends in your industry and your business may have to adjust as they change. As a start-up entrepreneur, you may notice these changes late and that may affect your business. Start-up entrepreneurs have to learn to keep their ear to the ground when market trends shift or change so as not to get left out and start losing out in sales. This means you have to keep getting feedback from your customers, keep reading about your industry and any new changes or trends. Always stay informed and keep in touch with your customers by taking surveys and ensuring they are satisfied; as well as improving your products or services to suite their ever-changing needs.

Markets change often - keep an eye out

Markets change often – keep an eye out

3. You, as an entrepreneur, have changed

As an individual sometimes changes can occur in your life that change you in different ways. This can happen due to certain situations, environments or even changes within you as a person. These changes can affect you in a positive or a negative way. If you’re a start-up entrepreneur; if these changes affect you negatively, it can affect your start-up business negatively. This can manifest in different ways such as neglecting your employees or customers; which would result in lower productivity and sales. It’s best if you feel that you’ve changed as an entrepreneur; make the changes work for you in a positive way – even if it means changing your business model. This is especially necessary if your priorities have changed and they don’t go hand in hand with what your business is doing.

Image Credit: essentiallifeskills.net

Image Credit: essentiallifeskills.net

If you are experiencing any of the signs above or even all of them (yup, this can all happen at the same time ^_^), make sure you sit down and have a serious review of your current business model/plan and see what you have to change. Make changes that are necessary and positive to you and your business in the long run.

Have you ever had to change your business model as an entrepreneur? How did it go? Please feel free to share below.

If you found this post helpful, please share it with your network. Sharing is caring ^_^

5 Ways To Build A Positive Corporate Culture In Your Business

I’ve been rather terrible with my content scheduling since last month I will admit, (due to a busier schedule ^_^) and so I’ve decided to follow my own advice – plan ahead and stick to the plan! Today’s post is motivated by three different business cultures that I’ve encountered over the last two months that have highlighted the need for a deliberate organizational culture in any setting; whether an NGO, Church organization, Government organization or business.
I’ve encountered two negative corporate cultures; in a festival setting that I was involved in and a church organization I’m consulting for that’s in transition from one leader to another. I’ve also encountered a very positive and open culture with a vendor I deal with that is very inspiring. This made me realize that whether a business or organization leader chooses to cultivate a culture deliberately or not; a culture forms anyway. If a leader or leaders of a business or organization cultivate a positive culture deliberately, they build a very positive, happy culture and staff that extends to their clients or customers as well. If a leader does not actively promote positive attitudes and perpetuates a negative attitude and actions as well, the organization’s culture becomes a very negative one that also extends to clients, customers and even interns (if such a program exists within the organization). This should motivate any entrepreneur to cultivate a positive business/corporate culture in his/her business for long-term success in the business. Success will be achieved because you will have highly productive employees who are happy and have a positive attitude. This positive attitude will shine through in daily operations to vendors, clients, interns and this will lead to people being satisfied with your business and staying loyal to your brand. Here are a few ways you can build a deliberate positive corporate or organizational culture in your business.

1. Show your employees respect at all times
Many company or organization leaders, especially here in Kenya, don’t show respect to their employees. They like to treat them like lowly servants and show them they are of a lower class, by addressing and treating them in negative ways. This is a colonial and out-dated way of thinking and it’s becoming increasingly ineffective in the management of companies. Many successful companies in the world these days have very positive cultures and focus on ensuring the satisfaction of their work force e.g. Virgin or Hubspot. They realize that happy employees are highly productive and will help you build a successful business. No matter what your position as a leader is in an organization or a business; respect your subordinates, whether you are a manager, department head or even the CEO or founder.

Respect each other

Respect each other

Bottom Line: Treat your employees with respect and dignity as you would treat any other human being and you would like to be treated in kind. Listen to them and do not put them down verbally or otherwise. This will earn the respect of your employees and they will work hard for the company to make it successful.

2. Keep an open line of communication in your business
Are employees afraid to speak up in meetings? Are they afraid to answer honestly when you ask any question? Is it difficult for employees to reach you when they want to discuss a sensitive matter with you? If you answered yes to any of these questions, you need to change the way you communicate with your employees or subordinates. Have brief meetings weekly with your staff to get their opinions on the way the business is running and any challenges they are dealing with daily. Encourage honest feedback on operations and any other issues that concern the business. Employees may share important information on challenges being faced and ways to overcome them in your organization.
Bottom Line: Whether you are a small startup where your staff report directly to you or a larger company where they report to unit or department managers; ensure there is always an open line of communication. This will cultivate a culture of happy employees who feel they are listened to and their opinions are important to the company. They will work hard to make sure your company is a success.

3. Trust your team
If you have hired a team to help you run your business e.g. an accountant, a human resource manager, head of operations, a secretary etc. You have chosen them due to their qualifications, experience and they have showed they work well with minimal supervision and deliver positive results. Don’t micro-manage them, trust them to do their jobs without having to call them or stand over their shoulder every minute to inquire on the progress.

Trust your team (Image: mashable.com)

Trust your team (Image: mashable.com)

Bottom Line: Trust your team to work well and efficiently; monitor them periodically by putting systems in place to check the progress on all operations. Don’t micro-manage.

4. Show accountability
Company leaders are always asking their employees to be accountable for their actions and their work. A good leader leads by action; if you want your staff to be accountable, you should do the same. If you set goals that involve your employees or make any promises in the work place; make sure to work hard and achieve the goals, as well as fulfill your promises. If you’re not able to, communicate the reasons why to your staff and how you intend to deal with the situation effectively.
Bottom Line: Be accountable in your company or small business. Employees feel motivated to be accountable in their work if their leaders are accountable as well.

5. Have fun at work
As a business leader, CEO or founder of your business; you spend 90% (or more) of your time at work. Your employees also spend most of their week at the work place as well. It therefore makes sense to make the working place an easy and fun environment to work at for any individual who works there. It’s alright to loosen up and have some fun while working. You can even plan monthly team building or sports activities that are fun for your employees and will create a bonding experience for the whole company.

keep calm - work hard and have fun poster
Bottom Line: Ensure your employees are having fun at work, but not at the expense of professionalism or your company’s business goals.

These are just a few ways of creating a positive corporate/organizational culture for your business in order to ensure success for your company as well as your employees.
If you have any other suggestions feel free to comment below.

If you find this post helpful and would like to share – please do so below.
Spread the word ^_^!

Interview with Pauline Twala of Affordable Eats, Kisumu

I’ve recently been meeting great people and also connecting with amazing people online. I’ve decided to start a segment where I’ll be sharing some interviews with inspiring entrepreneurs who have built a successful business or are in the process of doing so. I will have them share their insight on what they do and a bit of entrepreneurial advice for all of us start up entrepreneurs out there.

Pauline Twala of Affordable Eats

Pauline Twala of Affordable Eats

I recently connected online with an amazing lady (we bakers gravitate towards each other ^_^) called Pauline Twala; she’s the owner of Affordable Eats – Kisumu’s Boutique Catering. Affordable Eats is a catering business that serves events as well as a bakery that makes cakes for occasions and weddings. Pauline is also a baking instructor who teaches students how to bake and decorate amazing cake creations in Kisumu. Pauline is not originally a pastry chef or culinary artist; she has a background of political science and public administration. She is however a self-taught baker and cake decorator who followed her passion and started her own business about two years ago in Kisumu. To learn more about her story, please click on this link.

Pauline in the Daily Nation - she's the next big thing!

Pauline in the Daily Nation – she’s the next big thing!

Here is our online interview; very insightful responses.

1.) Why did you start a business? Why in this industry?

My passion for baking and cooking developed when I was very young. I remember I was a member of the cooking club back when I was in St.Georges’ Primary School – Nairobi at the age of 9 and I’d always go back home to try out recipes we had learnt. Then life took over I did a degree in Political Science and Public Administration at Moi University. I have worked as a market researcher and an office administrator with a number of organizations but I just couldn’t settle and felt so unfulfilled. After my contract ended with Italian Embassy – development co-operation in December 2011, I thought it was about time I change careers and do something that I enjoyed doing.Initially when I started in 2012, my main focus was outside catering but the demand for catering services tends to fluctuate primarily because catering services reach peak demand for special occasions i.e. wedding and end year corporate parties. I later added the cake section in the same year in response to market demands and after a lot of research. You don’t need an occasion to celebrate cake and it was the best decision I made. I have fallen in love more with cakes as I really love the creative elements of cake designing.

 2.) What’s your niche in your business? What problem do you solve?

A niche is basically “find a hole and fill it” So the hole I fill is creating a cake that tells a story as well as push limits with cake and create things that look so real that someone may have to ask “is that cake”

3.) How do you market your business? Is it effective?

I figured early online the importance of having an online presence and took a DIY approach to build my website as well as a Facebook page to grow the business and drive customer growth and this has greatly opened doors for us not only with clients but with media coverage as well.

 4.) What is your motivation? How do you get inspired?

Cakes make people smile. I get delighted when I make others excited with unbelievable cakes and it keeps me motivated to get better at what am doing.

5.) Favorite inspirational quote?

My favourite quote and one that I also live by is “Never give up” This quote has kept me going. I am where I am right now because I believe in my dreams and I am inspired to make them a reality. God has blessed me with a talent so I will be acting ungrateful if I didn’t use it. So sometimes when things get hard and I want to stop, I remind myself that He would not have given it to me if I could not bear it so “never give up”

6.) What is your morning routine? When do you wake up?

Every day is different and since I’m a “night owl” my mornings do not all begin at the same time. However currently am in between routines, trying to come up with something I could fit in an hour or less that still has all the elements that nourish me on the physical, mental and emotional level.

7.) How do you de-stress? Relieve business stress?

In no apparent order: I take deep breaths, take a walk, listen to my favourite music and sing it out loud, laugh out loud, watch a movie, call a friend or family to vent out if need be

8.) Top 3 favorite websites? and why?

I bookmark any site that has great decorating advice and tutorials as well as forums to connect with others to talk about baking and decorating

9.) Any advice for any youth who have started a business in Kenya & facing challenges?

I would just say this – if you have the desire and inspiration and eagerness then do it and never despair the rest will happen along the way. There are many people out there who will tell you that you can’t. What you’ve got to do is turn around and say ‘Watch me.’”  It is also so important that you have fun and treat it as a joyful experience. Also make sure you have a good support system around you, whether it be a spouse, family or friends.

10.) Your current favorite song?

I have loved still love and will always love “so close I believe” by Hillsong this song is so inspirational and will get me into tears just being amazed at God’s faithfulness.

11.) What’s the best part of your business? Worst/Annoying part?

My highlights: Firstly it’s finding myself through this journey of cakes. Now I can’t imagine my life without Affordable Eats. I live it, talk about it and most times bake and decorate cakes in my dreams. Secondly without a doubt, seeing the smiles on my client’s face, the feeling of satisfaction and accomplishment. When they take the time to write feedback and say thank you for the inspiration or for a great cake. That for me is the most rewarding feeling. The same applies to my students whom I teach cake baking and decorating it’s so nice to see a student’s face when they realize they can and giving them skills at a shot at making it a career…Lastly I have made so many virtual friends through Affordable Eats although I’ve never met them in real life, I do consider them friends, bound by a common interest. It’s Amazing the kind of support I have received from fellow “cakers”! Who knew cake could do that?!

For challenges: Firstly there’s no universal cake language – you can refrigerate fondant covered cake/you cannot refrigerate fondant covered cake, fondant should be used up immediately it’s made/fondant should rest at least 8 hours or overnight before use, you should use straws to dowel/only use wooden dowels………….it’s a long list of this is the way/that is not the way. Secondly the time investment can be pretty tough and I mean REALLY TOUGH. Most of the cakes take 20 to 30 hours each.  I’ve had some that took more than 50 hours and all this in between meeting clients, making deliveries, book keeping, social media marketing and advertising, answering calls and emails, classes etc. It’s physically demanding. Cake decorators are really a special breed – to make cakes we can stay up until wee hours of the morning and then still manage to function during the day, as if we were sleeping well all night long.

12.) Who are your key influences/ role models?

You can learn so many things from so many people around you but my favourite role model has to be my late mother. No word can encompass her but she was simply the best

13.) Five words that describe you?

Determined, Fighter,Spontaneous,Generous,Reliable

14.) How do you deal with financial crisis in your business? or any other crisis?

By taking actions that will cut on spending as much as possible and focusing on increasing cash flow or generating more income and saving that income even if it means extra hours.

Amazing cake by Affordable Eats.

Amazing cake by Affordable Eats.

Great interview! Amazing Kenyan female entrepreneur to watch out for, I wish her all the best!

Make sure you check out her business website as well as her Facebook page for Affordable Eats – Kisumu’s Boutique Catering. If you’re in Kisumu please order some cake for any occasion as well as catering services ^_^