Planning to Go Global

The Many Faces of Globalization

It is very hard today to go through an entire day and not hear something about globalization or the phrase used over and over in the media.  However, have you ever stopped to think what all this actually means to you?  Especially to my friends who own a business or run a non-profit organization.  Have you thought about the impact of globalization to your business or organization?

Perhaps you have considered joining the ranks of many start-ups and jumping across the seas to venture into a new partnership or business venture.  You see yourself exploring new lands, making new connections, and hitting the gold rush.

Perhaps you are settled in your region and the idea of going overseas came in a fleeting moment and you just let it keep fleeting.  You are comfortable, prospering, and have no intention or desire to move into these new ventures.

Perhaps  you are at the very early stages of starting your company and have no idea what all this chatter is about regarding globalization.  Your energies are being exhausted by just learning how to run a business in your own native land any thought beyond that is overwhelming. 

Whatever your status the reality is we all have to begin thinking about globalization and its impact on our lives and businesses and this does not exclude non-profits or churches.  The impact may be direct and/or indirect – who knows today.  Nonetheless, we all have to stop and ask ourselves a few questions. 

To my business friends who may be thinking if this new global frontier is worth venturing into here are a few questions you may want to ponder:

·      How will my customer base change?

·      Will I need to expand my services to reach a broader audience?

·      Can my current business model support global expansion?

·      What tools will I need?

·      What are the unwritten rules in the region I am thinking about expanding?

·      Would it be more beneficial to partner with an established entity?

·      What are the other cost besides finances that need to be invested such as time, emotions, travel, values that may be tested. 

·      What will be the additional financial cost to reach this larger audience?

·      Are the profits large enough to validate any expansion into new markets?

·      If I decide to utilize a free service (such as Skype, FaceBook, or free Webinar) will the quality be good enough to service my customers?

This is by no means a full list of the questions you want to consider before exploring this venture.

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On the other hand there are my dear business friends who have NO desire to reach over the far seas and venture into new markets.  Unfortunately, you and your business may still be impacted as a result of the increase in globalization.  Therefore, you may also want to ask yourself a few questions to help prepare.

·      Can my organization survive competition from a broader global environment?

·      Am I likely to see my cash flow impacted and how am I prepared to react to this change?

·      Does my business model reflect the impact of a new global market?

·      Do I have enough loyal customers, members, or associates to continue to yield a profit or meet my monthly expenses?

·      Will my current customers, members, or associates be pulled away because of additional benefits provided by other vendors in the global market?

·      Are my suppliers going to be impacted by the new global market and how will this affect my business?

·      Exposure to a broader market could mean increase in innovative ideas and tools.  How would my organization survive or be impacted by this innovation?

As you have probably guessed there are very few business people who are not going to be impacted by the global market one way or another.  The one major question that lies ahead is how will you react and how will you be prepared to handle the change.

For more information and assistance on building innovative business strategies for your organization contact EDALS Consulting at info@edalsconsulting.com.

Are you afraid to start a business?

I attended a meeting the other day and the speaker told the crowd that during this change in the economy it would probably be a good time for them to start a business. Actually, I change that, they said, ‘Hey, instead of looking for a job. Start a business.” There that’s a little closer. At any rate you could almost feel the terror rise in the hearts of the attendees.

What’s the fear. Are they terrified that after working at something for 20+ years one day the client will just pick up the phone and fire them? Are they afraid their retirement account will suddenly become depleted without any of their input or activity? Just one day there and the next day vanished without a trace.

If I had the opportunity I would hold these little ones tightly in my arms and say, “Sweetie, I wouldn’t worry about starting a business. That’s the easy part. I would be concerned about keeping it running and dealing with the day to day activity.” But before they would attempt to climb down in discouragement I would then tell them. “But, control and independence of one’s destiny and wealth is always going to be work.”

A few pointers for those who are on the fence:

1. Remember the founder of Kentucky Fried Chicken started the business when he was well in his 60’s. He prayed up the idea after he received his first social security check and it wasn’t enough. It was told ‘no’ over a hundred times before he heard ‘yes’.
2. You don’t have to jump into a venture all by yourself. Build up a team or get a partner with similar passions and skills. Make sure you work well together and balance out one another.
3. The technology around today makes starting and expanding a business much easier then it was 10 years ago. Your target audience can be the world as a result of the internet, cell phones, fax machines, and other products and services.
4. Be prepared to spend a little money to get things set up right. Trying to go cheap will cost you down the road. However, you can find creative ways to use those financial resources effectively.
5. Think outside the box. This may be a good place to put some of your resources but first try a few social groups and the internet.
6. Starting with your passions is a good idea. However, make sure there is a target market with the revenue and ability to pay. If your passion doesn’t feel a need or fix a problem for a population willing to pay it won’t do you much good financially.
7. Step OUT. You won’t know if your idea will work or fail if you never put some work behind your idea.
8. Don’t get discouraged if things don’t work immediately. Some good ideas take time to find the audience that will appreciate it and be willing to pay. NOTE: You may have to step out of your comfort zone to reach this audience.

Watching out for Value Parasites.

Business owners beware of people who seek to steal the value out of your products or services.

http://www.mediafire.com/?zmtndmfgnnv

Fixing the Cash Flow Problem

http://www.mediafire.com/?jwzzzytkemi

BIG MOUTH!!!

I am probably not like many of you I don't make a large amount of purchases through the year of products or services. I have my up years and then I have my lean years. However, I do have a BIG MOUTH! When I like a product I tell everyone. When I like the customer service I tell everyone. When the service is bad - Yep! I tell everyone.

Take for example my cell phone carrier. I had just about tried all the major carriers before I landed in the house of Verizon. You guessed it! Before landing in the house of Verizon everyone I knew in the market for a cell phone heard my opinion about the carriers I had to leave. Ironically, one of them is trying now to treat me with good customer service. OOOPS! To late. I am in the house of Verizon and as long as they keep having great service and friendly customer service I will stay with them. Of course, I will tell everyone.

Microsoft just recently surprised me with good customer service on a return. Granted I thought the product was overpriced but that is another issue. However, I must admit this subsided by the time I finished with customer service regarding my return. No problem and they understood my issue. I ended up downloading a free version and then ordering my own copy. You see business people. At times some of your customers just want to know you care and hear their issues.

Apple is another story. I think most of the items I have purchased from them the warranty must expire when I cross the threshold of my home. To extend the warranty you have to purchase Apple Care. It's not cheap!

I wonder how many business executives calculate the cost of a dissatisfied customer versus a satisfied customer. It seems there is a very small population of business owners and/or executives that understand the concept of taking care of the customer and it's long term affect on the bottom line and cash flow.

However, like I said earlier. I don't spend a tremendous amount of money on new products or services today. BUT I DO HAVE A BIG MOUTH!!!

Choices

Have you ever had the feeling in the pit of your stomach you needed to make a decision yet you tried to avoid it. Such as dealing with an employee with low moral. Perhaps moving a person you liked to another position because their work quality was bad. How about having to fire a customer?

You and I both know no amount of coaching makes these decisions easy so I won't try to sugar coat things. Delay of the action is not going to make it any more pleasant for either party. However, also think of the economic impact on your company. How many non-productive hours are being wasted by yourself, the person in question, and other staff. What would be the calculated cost & effect on cash flow? Remember everyone is still on the clock even though less work is getting done.

In may not seem apparent but everyones production has the potential to be impacted just because of the quiet voice of tension in the air. So do everyone a favor and take care of the issue.

In other words... Make the choice of the door you need to walk through and get it done.




Denise D Johnson
EDALS Consulting
Business Strategist

The Big Picture is Colored Outside the Lines

During our elementary school years we were taught to color in between the lines. If we went outside the lines it was a mistake. We were to conform to a set pattern that had been proven to work and deliver an end result. So why rock the boat. Ironically, it seems we tend to look at many things in life from the same perspective even how we operate our businesses.

We attend various coaching and training seminars with the newest great way to achieve quick success. Each telling us how so and so made it and now if we do just what they did we will get just what they got. Success!

Is there any point in time we stop and evaluate our business to see what factors are equivalent? What things are different? Many times we are led to believe we are doing everything wrong or otherwise we would be holding the training sessions. Therefore, we must saturate our entire organization with their methodology and then we shall see success.

In reality no two business entities are alike; therefore we can’t just stay within the colored lines of dictated methods. Let’s try to go outside the lines in some situations. Let’s start evaluating some of these programs and see what really fits and toss out the rest. Something that works for one organization may cause disaster in another. Be brave! Go outside the lines! Mix and match colors. Try crazy patterns because this may actually work for your market. Have fun and enjoy coloring your organization outside the lines.

Failure can be added up

Isn't it interesting that many of the company failures somehow get tide back to financials.

So what's my point.

Financials are perhaps the least interesting document for most management teams. Most view with as much interest as visiting the dentist. But this lack of interest may have cost millions.

Think of it this way. What is the least exciting amoung the two? An invoice from your lawyer handling a case of embezzled funds by your previous employee or reviewing your current cash flow statement.

Have a great time with the financials.

Denise D Johnson
EDALS Consulting
Business Strategist

Sitting Still

Sometimes we assume the only way to profit in our business is to keep moving. However, many times this just ends up being nervous activity that does not bare fruit.

Try to begin each day sitting quiet for a few minutes to hear your task for the day. Then visualize how they should look or be executed.

It may seem like you are wasting time but in reality you are using your time more effectively. Try it for a few days just to see what happens.


Denise D Johnson
EDALS Consulting
Business Strategist

NewYear Expectations

Expect the sweetest year you have ever had thus far.






Denise D Johnson
EDALS Consulting
Business Strategist

When the Thrill is Gone

It is the New Year and many are pretty excited about the unknown of the road ahead. This excitement is good but very short-lived. Around the end of the month the cheers start fading, less people are wishing you a blessed New Year, and the days at work seem longer. Now what?


Do you just sit back and drive down the road of life with no true destination or is there a purpose for you being on the road? If you are just on the road with no purpose then you are just causing congestion. Extra traffic with no purpose but to slow up those who are going places. So why are you here?

What if the answer is not as cumbersome as finding a needle in a hay stack or trying to solve a calculus problem. Perhaps it’s no even rocket science but just a simple truth you just keep ignoring. What if that truth comes forth within the rhythm of your life and the heartbeat of passions weaved into your character? Would you recognize it?

I wonder if you recognized this sound and began to move to it’s beat would you then find purpose. Would you then begin to flow with direction into your destiny? Perhaps as you began to move, a beat would be created that could merge into a sound that could help another find their rhythm and thus flow. Congestion only happens when we are out of flow.

Having a Special Day

Standing where you are today there may be many questions of where you are going. The fact is we all stand in front of doors that look questionable; however, if we know where we are going the look of the door will not scare us.

If a Man Doesn’t Work Shall He Eat

Helping others does not mean I do everything for them and thus rob them of the incentive to work. Nothing destroys a man and a culture faster then the loss of the incentive to create and produce.

It may seem a little insensitive to suggest we don’t help out people who are hungry but wait a minute. I think we should help out our fellow man. In fact I think we should be very driven to help out as many people as we can especially when they are between blessings; however, I don’t support poverty or the mindset of poverty. A poverty mindset suggests that one person should go out and work while another sits and reaps the benefits. There is something a person can give even if it is just their labor, their time, their encouragement, etc. You have something of value even if it isn’t cash.

It is a total lie to believe that each person born upon this great earth and created by God doesn’t have some type of gift. You may have to be creative but you have something. It is in this search of your gift that opportunities are found that will enable your current situation to change. If we rob you of this moment then we rob you of having a fulfilled life and a sense of purpose which are some of the greatest joys of all.

You are more to God then Your Checkbook

This may come as a surprise to some of you but the vision God has for your life is bigger then the checks you are able to write. Don’t get me wrong I believe in tithing and giving to where you are taught the Word of God. However, I honestly don’t think when God formed me in my mother’s womb that was the biggest thing he saw for my life.

For one reason God is not short sighted. He sees things from the position of eternity. My mother use to always say that whatever God was grooming me to do here I would be doing throughout eternity. There would still be a world running and things would still have to get done. We are not just going to be sitting around hanging out in heaven. So what is God’s bigger picture. He is working to bring all things together in both heaven and earth. (Ephesians 1:10).

So your purpose here on earth has got to be bigger then your ability to write a check. If God has gifted you in business then He expects you to use that gift for a bigger purpose. Yes, pay your tithe and give your offering. But also see that Monday through Friday are not just an excuse to keep you busy until Sunday comes around again. There are things God expects you to do through the gifts of your hands that expands His impact far beyond the walls of the traditional church.

One last thing. I guarantee when this reality hits you and you grab a hold of it there will be a joy in you that will overflow. It will feel as though a dim light has gotten brighter and something suddenly came alive in the depth of your soul. You have not fully lived until you have lived out the purpose God has for your life.

Your Business is Not Your Island

Not sure when this philosophy started but after so many bank failures, major corporations dissolving, and tons of small and medium size business doors closing; the reality we are connected should have birthed a light bulb over our heads. “Hey! Perhaps I need to think broader then the walls of my firm or my stockholders portfolio.”

The reality is when a decision is made in one organization it has an impact on a number of people, groups, and cities. Strangely the budget of a major car dealership in the mid-west has an impact on a small business in California where they don’t even use their product. Imagine that! What about vice versa? The closing of a number of small businesses located in Texas has an impact on a major International company and its budget.

Today, our companies are not our own small islands in which we can afford to make consistent bad management decisions. We must begin to think on a broader level and ask ourselves constantly how my company will affect the global market. Then ask ourselves how will the global market affect my business?

If Cash is King…The Cash Flow Statement is His Wife

In a good marriage the husband and wife have good communication; understand one another’s character, and a good understanding of who rules the house.

If you are going to have a successful business today you had better make sure the marriage between your cash and the cash flow statement has not filed for divorce. In other words, you need to understand how money is flowing through your organization and the impact on operations. Basically, how they are talking to one another. If not, lack of good communication can cause the house to crumple and your only customers are lawyers.

It doesn’t matter the size of your organization make sure you know the exact profit for your organization and if it has already been allocated. Owners should know the true character of transactions – is money actually flowing into the business or is it just a paper entry. (Ex. Change in Accounts Receivable.) This will give you a clear path to plan for the future and make necessary adjustments.

Lastly, it is not the balance in your checkbook but the balance at the bottom of the cash flow statement that truly rules the house.

Eating to the Edge of My Bread

There is an ancient farming philosophy which states you do not harvest your field to the very edge but leave the edges for the poor and needy so they may be fed. Farmers would instruct their staff to harvest only the main sections of the fields and leave the edges alone. The harvest of the farmer would be enough to meet their needs, provide revenue from what was sold, and provide additional seed to sow for the next season. After the land owner would finish harvesting, the poor would come along and harvest the edges of the field to feed their households and provide for their needs.

In my opinion, I believe this could be a secret for having great success in the midst of troubles and prospering when everyone else is struggling especially for business owners. Yes, a business strategy that could actually move you from being in the red to being in the black.

Think about this. How are most of us trained to run our businesses today? How have we seen most corporations manage their cash flow, today? Now, what has been the end result?

Today more organizations run their businesses with a ‘me mentality’. Most believe, “I take care of me and the rest of the population can just try to make it the best way they can.” We can see from our current worldwide situation that this methodology does not work.

On the contrary, we are not supposed to set up systems in which people can sit around and just be taken care of as others produce. This system has also proven it does not work by the example of Africa. Over the years, billions of charity dollars have been poured into this nation yet it still remains one of the poorest nations in the world.


Operation of the Strategy

To implement this strategy you have to think different then you have in the past about what it means to help another. Helping others does not mean I do everything for them and thus rob them of the incentive to work. Nothing destroys a man and a culture faster then the loss of the incentive to create and produce.

To institute this strategy in a business you must first outline it in your business plan and see it as a policy for the entire organization. Set up budget line items specifically focused on developing the widows, poor, and orphans. What service or skill set can this group bring to your organization that will take care of small task (which represent the edges of the field) and how much money can be allocated to pay for these services?

Note, in the example of the farmer he has already harvested the main harvest for his livelihood and operational budget. The edges of the field have not been factored into the equation for regular operational needs. Consequently, the overall organization will not suffer if the task is not completed. In our example, if the harvest is not picked by the widows, poor, or orphans then it will simply dry up and return to the ground to nourish the soil.

A few things to notice in the illustration of the farmer: First, he has proper financial projections to know how much grain is needed for the current season (how much for personal needs, how much to sell, how much to reinvest for a future harvest). Secondly, the vision is properly planned and communicated to their entire staff for proper execution. Thirdly, he understands that as he prospers he has an obligation to take care of those who are less fortunate and give them opportunities. Fourth, he has control over where his wealth is allocated and he can define how others can be helped without putting a strain on his companies operations.

Perhaps you may feel as a business owner trying to survive that you can’t afford to give much less add one more line item into your budget to care for others. Honestly, you can’t afford not to give and take care of others who are less fortunate. Let me put it this way! You may not pay at the moment and you may not pay directly but at some point in time you are going to have to pay and it will cost you much more. Additionally, someone else will be making the decision on how you will give and how much. It’s your choice. You can control the bottom line of your company today or you can hand it over to someone else for them to control it tomorrow. Be mindful that hand may be the government.

For more information on this strategy or help implementing it into your organization please contact EDALS Consulting.

How Over-Regulating Goldman Sachs Will Lead to Higher Oil and Commodity Prices

How Over-Regulating Goldman Sachs Will Lead to Higher Oil and Commodity Prices

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