How To Sell A Website Fast

Writen by Manny Avedissian

Dear Website Owner,

If you have an existing website or domain name you no longer need and wish to sell it to an interested buyer for a one-time profit, or if you?re a speculator looking to build a steady source of revenue by buying and reselling valuable domain names, this helpful guide will explain the steps you need to take to ensure a quick,easy,profitable sale.

Step 1 - Establish a Reasonable Price for Your Site

How Much Can I Get?

Before you sell, it's a good idea to know how much the domain is worth. Market prices for domain names can run from a few dollars to thousands of dollars for premium names. The domain name "Loans.com", for example, sold for $3,000,000 just a few years ago.

The key to deciding whether or not to sell a domain name you own is to determine its worth to you if kept and, alternatively, how much a buyer is willing to pay. You may have heard -rags to riches- type stories of cheap domain names resold for hundreds of thousands of dollars. During the good old days of the Internet boom this was possible. However, things have slowed down considerably since then and there it is very rare to hear of a domain name sold for more than $10,000.

However, while big deal domain sales do occur less often in today?s domain market, selling domain names can still be very profitable. Short, catchy, top level domain names are selling for upwards of $5,000 on the domain aftermarket. Other longer, but still usable, names may be worth hundreds of dollars.

Pricing is relative. Relative to your desire to sell, the type and timeliness of bidder inquiries (individual or corporate) and how well the sale price is negotiated. Don't try to fit your domain name into some 'proprietary pricing model'. Every domain name is applicable to a different target market. Determine who your potential buyers are before determining your asking price so you don't over or under estimate that price. Most names (~85%) sell for between 15%-40% of the asking price. Exceptions to this trend:

Fantastic names - Truly great names can command what a seller requests, unless that amount is unreasonable.

High asking prices - Names that have ridiculous or greedy asking prices rarely sell. Important!

Poor names - Names littered with hyphens, adult names, "4"s for the number "four", "2"s for the number "two", "U"s for the word "you", etc. Don't waste your time listing names like these. They rarely sell.

How Do I Determine My Site's Worth?

Selling virtual real estate is a lot like selling physical real estate. Just like with the housing market, website ?homes? (also known as domain names) can be purchased for a low cost, remodeled and decorated to look very attractive to potential buyers, and sold for a considerable profit. To understand how this works, first consider that you were in fact selling an actual house built on land instead of an abstract entity on the web.

It would be impossible to price your home without doing extensive research to determine its worth. You'd need to take many factors into consideration, such as: size, landscape, curb appeal, the value of other properties in the area, the current buying market, and -perhaps the biggest factor- location, location, location! You'd never dream of arbitrarily assigning a sale price to your home without having some idea of its worth and what buyers might be willing to pay. If you underprice your home, you could be missing out on a substantial profit opportunity.

However, if you overprice your home, you might not be able to sell it at all. That's why it's so important to have all the facts before putting your home on the market - and the same holds true for selling your virtual home on the web.

When determining your site's value, you may need to do some research online. It is often a good idea to compare different websites on the Internet and to see which sites catch your eye. You can make a mental note of the methods used on websites that were appealing to you; then you can use those ideas when creating or updating your own website. The design of a website is very important when you are trying to sell an existing site online.

The design should be bold and colorful, but should not be too busy. You may want to use colors that relate to the theme of the site as well. For instance, if you are selling bottled water, it would be logical to use shades of blue on your website. However, no matter how brilliant the website design is, the purpose of the site must also be useful for the website to sell. A good website will revolve around an interesting idea or useful type of business. To reflect the purpose of your website, you should include clear, informative content that is easy to understand. A website with a clear and interesting purpose is very likely to sell on the Internet.

What Makes a Site Valuable to Buyers?

These days most websites are valued by the number of visitors they attract. One common yard stick is your domain name is valued at $10 to $30 per hit per day. If 1,000 people land on your front page each day, your domain could be worth $10,000 to $30,000. Another optimistic way of looking at domain values is each unique visitor you get over the course of a month is worth $250. If the visitor clicks to a second page on your site, her presence is worth $500.

By this measure, a site getting only 10 hits per day could go for $15,000. This strategy is a lot like the way traditional businesses have always been sold. The more customers a store has, the more it is worth to a buyer. That is a pretty solid way to value domains. It is a model that is likely to be around for a long time to come.

Here are some of the main questions a typical buyer will ask him or herself when considering whether or not a website is worth purchasing ? and at what price:

Is the site making any money? Is there proof?

What is the potential for future profits?

Does the site have traffic? Is there proof?

Is the site attractive/well designed? Is it functional and user friendly?

When was the domain name registered?

How is the site ranked with the major search engines?

What does is take to maintain the site? i.e. hosting fees, content addition, promotion, etc.

Why does the owner want to sell the website?

If you?ve purchased a unique domain name with a great deal of potential value, it may not be necessary for you to have an existing website in order for you to sell your domain name for a profit. Typically, domain names will sell based on its performance in four key categories:

1. Commercial Development Potential - The ability of your domain name to be used as a brand, redirect, campaign address, etc.

2. Recognition - The relevance of your name to the market and how easy it is to remember.

3. Length - In most cases, shorter is better. However, a longer more obvious name can sometimes be more valuable than a short classified-ad contraction style domain.

4. Extension Value - This refers to the .COM part of your domain name. Currently .COM names still command the highest values followed by .NET, some national domains (such as .UK) and .ORG names.

How Can I Guarantee I've Priced My Site Correctly?

Unless you are a true domain name expert, we strongly recommend having your site professionally appraised. In fact, this is probably one of the most important steps you can take towards ensuring a successful sale of your site. Appraisers are professionals and experts in their field, and they have the means and methods to conclude what your domain name is worth. As we mentioned earlier, if you place an exaggerated price on your name, potential buyers will be scared away from making a reasonable offer. If you undervalue your name, you may end up kicking yourself when your newly sold name rakes in millions - for someone else. Furthermore, an appraisal is a very handy thing to have when buyers want -proof- that your name is as special as you claim. In the end, it is an exceptionally valuable asset, available for a very small price.

For information on UK Website for Sale's professional appraisal services, visit: http://www.ukwebsiteforsale.co.uk/appraisal/. We offer a 20+ page Website Appraisal that can dramatically increase the value of your website. No one on the Internet offers a more complete or cost effective Website Appraisal, and certainly no one offers all the extras we do that are included for FREE!

Step 2 - Prepare your Business Information for the Sale

After you have decided to sell your business for whatever reason and chosen an asking price that you can support (hopefully with some advice from research or, even better, through a professional appraisal service), you are now ready to talk to some potential buyers. Or are you?

Much like the asking price, the art of preparing your business for sale is not that easy. So, what do you need to successfully prepare the business and information? The list and needs vary greatly over business types, revenue sizes, verticals, and so on. For any business, the basic requirements for what you will need are quite similar. At the very least, you should have the following items:

1. Business Summary -- what it is and why you are selling

2. Business Plan/Marketing Plan -- if you have them

3. Asset List -- both tangible and intangible

4. Search Engine Rankings

5. Website Traffic Reports

6. Any Technical details

7. Financials (previous years and Current YTD financials)

8. Most recent completed year's Profit & Loss or Income Statement report and Balance Sheet -- if you have it

9. Sales Forecasts

10. Supporting documents for the Financials -- Tax, Bank, and/or Merchant Statements

The previous items will give all potential buyers a good idea what is for sale and probably a good idea if they are interested in pursuing the sale or not. However, that is usually just the beginning, so be prepared for many, many, many more questions.

Also, please keep in mind that your materials, presentation, and responses will be graded as part of the business in a way. Why? Because, how can your business be successful if you are unorganized, not well presented, and not able to respond quickly and concisely? This is what the buyer will be thinking. And in my experience, this is pretty accurate.

Step 3 ? Market Your Website/Domain Name

There are various methods of putting your domain name up for sale. Decide whether you would like to sell your domain by owner or simplify the process and significantly increase your chances of receiving the best offer in the shortest amount of time by listing your domain name with a third party, such as http://www.ukwebsiteforsale.co.uk.

What if I Want to Market My Site On My Own?

There are 101 different ways to promote your domain name. One way we don't recommend is blanketing companies with unsolicited email. Writing mail to 200 banks asking if they want to buy -FasterInternetBanking.com- is not likely to win you many friends, nor make you any deals. Your time would be better employed using the methods listed below:

a) Update the domain name registration information

Many potential buyers will look at the information in the WHOIS database as a first step when investigating a name that they are considering buying. So make it perfectly clear that the name is for sale. Update the owner's name to include (This name is for sale) after your own name. Make sure all your contact information is current and accurate. Contact your domain name registrar to update your WHOIS listing.

b) Put a promotional website up

The other obvious way for a potential buyer to find out if a domain name is for sale is to visit the website. Don't disappoint them. If you don?t have an existing website, get some web space from a decent host provider and put a simple, one-page site up, showing that the name is for sale. Include a form or at least an email address so that interested parties can submit offers.

c) Get the Word Out

There are two different types of e-marketing strategies that may help increase your sales.

Direct Marketing: Identify and Address Your Audience. What types of businesses or individuals would be interested in your name? When you have identified your specific audience, you can take the next steps:

1. Visit newsgroups related to domain names and the nature of your name for sale. Post messages and begin discussions.

2. Subscribe to ezines related to the topic and find out where these people are on the web, and how you can contact them.

3. Once you have contacts, you can send out emails to potential customers.

Mass Marketing: Address Many. As opposed to direct marketing, mass marketing targets a large amount of people, hoping for a small response. Some ways to do this are:

4. Participate in domain forums, ask questions and seek out domain resellers or people who may be able to offer you more tips.

5. Use search engines. Although search engines differ in their methods of operation and website submission, you can often submit your site for no cost. To find out more information about different search engines and how they work, visit http://searchenginewatch.com/.

What are the Benefits to Registering My Site With a Third Party?

For a small fee, you can list your site with a reputable third party, such as http://www.ukwebsiteforsale.co.uk, and greatly enhance your site?s exposure to qualified buyers and ultimate profit potential. Among the many benefits you?ll receive by registering with ukwebsiteforsale are:

• High visibility ? Reach 1000s of qualified buyers every month

• FREE 3-Month Featured Listing with purchase of professional appraisal

• Professionally written ads

• FREE email newsletter

• A professional appraisal to accurately determine your sites worth and increase your chances of selling ? ready in three to five business days

• The security of working with a trusted, experienced and highly recommended company

• The opportunity to connect with a recommended site broker, who will further simplify the process by handling payment, escrow, and domain and registrar transfer.

Visit http://www.ukwebsiteforsale.co.uk/exchange/sell-a-website.htm to learn more.

Step #4 - Make The Deal

You could get lucky, and receive an offer just days after listing your name. Typically, though, names are listed for months before any offers arrive. The key here is to be patient. Think about it - a party needs to come along who believes that the name is right, even essential, for their new Web site. The only other offers you will get will be from domain resellers, who will typically offer you 20-25% of a name's potential value. Unless you really need the money, turn down these offers, but note them anyway, as they are external confirmation that your name has resale value.

Once you have agreed a deal with the buyer, then you will have to complete the deal. They send you payment, and you transfer the name to them. It's best to use an escrow service here. It protects both parties, but adds to the cost, so make sure you have agreed beforehand who will pay for it. Normally the buyer pays, but sometimes the cost is shared. Please note: to sell a domain name by owner, through a private transaction rather than a trusted third party, is risky business unless you completely trust the buyer.

There will be some wait time as money switches hands and the domain name ownership is transferred. Unless you are selling your domain to your mother or selling it for a very low price, we recommend using an escrow service to take care of the money transaction.

Copyright 2004

Good luck!

About The Author Manny Avedissian is the owner of UKWebsiteForSale.co.uk. He has operated and maintained various internet businesses. Mr. Avedissian has a business degree and has over 20 years of professional business expereince. manny@ukwebsiteforsale.co.uk

Will Retail Chains Lose Their Dominance

Writen by Vernon Stent

In most industrialised nations the the supply chain of goods from source to end user has changed little for many years. Firstly there are the producers. Then the wholesaler, then the retailer and then the customer and consumer.

In the U.S. the supply chain has always been pulled by downstream consumers. Europe had a different history where a mixture of world wars and interventionist governments led to supply chains that were pushed from the upstream end. Certainly, the rationing of the 1940's and beyond led to a culture of consumers who got what they were given and were thankful for small mercies.

As Europe has become more affluent, consumers have flexed their muscles and demanded an ever wider array of goods at a range of prices and standards. It has now joined the U.S. and most other industrialised nations with consumer-led supply chains.

A feature of this has been the trend towards large retail chains. Many of these chains have become so large that they have virtually dispensed with wholesalers, preferring instead to purchase goods directly from producers. They have also established the so called "own brand". This is where they have dictated the product specification to the producer and told them to brand it as their own product. And there is more: some of the largest chains have increasingly got themselves involved with all aspects of the supply chain from raw material sourcing, packaging procurement and design, all aspects of distribution and even their suppliers' recruitment policies.

This has resulted in a shift in the balance of power from upstream to downstream. Now that every aspect of the producer's business, including their all important costs, have been tied down by the ever inquisitive retail chain, has the pendulum swung as far as it could? We all know what happens to pendulums when they have gone as far as they can in one direction. Now, I cannot surely be the only person who has thought about this. I am sure that directors of some of the large producers out there must have thought to themselves "how did we let this happen?". Perhaps some of the smaller producers whose management can't even visit the washroom without permission from the retailer (it seems) are also thinking "enough is enough".

Just think of this: who has put the capital and risk into the very expensive plant that is needed in a production environment? Not the retailers. Who has the skilled staff including engineers and designers? Certainly not the retailers. Who has detailed product knowledge within their own spheres? Retail chains, by their very nature specialise in putting largely unskilled staff in large buildings with rows of shelving and a line of checkouts. They can only ever have a superficial knowledge stretching accross the vast product ranges they sell.

I know I have painted a picture of poor downtrodden producers that have been conquered by those nasty retailers. Firstly the retailers are not nasty at all - they are just doing their job - so let's not blame them. And there will be many producers out there who rather like the status quo and don't want to rock the boat. OK, so they don't get the kinds of profit margins they would like, but they do get volume. Though in my opinion, the reason why many producers want to leave things as they are is that they are slaves, even if they don't realise it.

It's a kind of drug dependancy, but with the drug being high volume sales and the drug pusher being the retail chain. It's a familiar pattern. The producer is forced to reduce costs by a retailer promising higher volume in return for a greater share of the margin, so the producer invests in larger production facilities, faster machinery and takes on more staff. This is fine until the producer realises that he is now dependent on the retailer. The producer is now in the position where he must be given volume orders in order to ammortise his costs. The retailer says: I can give you volume, but you must give us more margin. For some producers the moment of truth comes when they need to take a leap into a big new production facility in order to keep up with these demands. So, they take on a loan and expand the business. Now they need a constant fix of volume business, not only to keep the factory going, but in order for their business to avoid bankruptcy. Some producers who have converted to this high volume business have gone so far with it, and have partnered so closely with their master retailer that they simply see themselves as an extension to the retailer and will not contemplate change.

Others may feel differently. They may be run by more indpendently-minded bosses, or may have kept up sales to other outlets in order to keep some trade going that is outside the sphere of the retail chain. I am sure that some producers want to see that pendulum start to make its way back, even if it is just a little way. But what can they do? Well, things are changing out there, so opportunities may arise sooner than expected.

Firstly, there is safety in numbers. Just ask the unions, or a herd of wilderbeest. I can see alliances taking shape over the next few years between non-competing producers who, between them, can offer a full range of products to consumers. Why can't they open their own retail outlets? Remember, the billions made by today's retail chains will no longer need to be serviced, so prices will be very competitive and margin healthy.

Secondly, there is pressure on fuel supply and prices. There has been a recent blip that might fall off again, but most experts agree that the long term trend is that prices will rise. As fuel costs begin to impact margins and even product prices there will be pressure to retail goods as close to their source as possible. It may even make sense to sell goods directly from a producer's own shop. In the UK, local farmer's markets have taken a significant slice of business away from supermarkets. I am suggesting here that this principle could be extended to more local selling opportunities from producers and not just farmers.

Thirdly, there is an increasing trend - mainly driven by legislation - to re-use parts in products that are at the end of their life and to re-use packaging. This reverse distribution will benefit once again from having producers as close to consumers as possible and it may benefit further by cutting out the retailer altogether for the return of goods.

Finally of course, there is the internet - shopping on line. Not a cashier or a shopping trolley in sight. Yes, distribution infrastructure is still required, but remember that many bricks and mortar retailers have still not fully got to grips with the structures that are required to distribute internet sales. The internet gives producers a wonderful opportunity to change the order of things to their advantage and sell directly to end users.

What many large retail chains have done has been breathtaking and can only be admired. They took control of their supply chains and used their new influence and power to their advantage and therefore to the advantage of their shareholders. Just remember though, that retail chains consist of unremarkable buildings, staffed with unskilled labour and with low-tech plant. They do not produce goods (usually) and they do not own any brands apart from their own. Their main asset is customer goodwill with the large throughputs of customers visiting their sites. If this throughput is threatened by high fuel prices or because of alternative attractions, then these large buildings will become white elephants. If this ever happens, the decline could be swift and decisive, for those retailers are just as addicted to their customers as producers are to them.

There is a lot to be said for buying your products as closely as possible to their source. Arkay Hygiene sells fly killers. Yes they are stocked by retailers, but Arkay Hygiene sells most of them directly from their web site at www.eeeee.co.uk. Perhaps they are already ahead of the game.

By the way, you can get lots of information about the retail industry and the history of retailing at http://www.aboutretail.net. An example of the fly killers sold by Arkay Hygiene is the Stainless Steel IND61, the most powerful of their fly killers

The Underdogs Solution How To Break Into And Conquer Any Industry Online

Writen by Simit Patel

While the Internet has created entrepreneurial opportunities for the likes of both Fortune 500 companies and sole proprietors working out of their basement, the fundamental entrepreneurial dilemma still remains: how can entrepreneurs break into an already established market?

In this article, we'll outline the steps that entrepreneurs need to follow to break into and conquer any industry online. To reinforce the power of this formula, we'll use industry giants Google and Apple as case studies.

Step #1: Identify The Reigning Champ.

If you're going to break in and conquer an industry, you need to know who you're looking to take it from. Don't be afraid to aim for the biggest champion; if you don't you'll never get there.

Example: Entrepreneurs who wanted to take over the search market would identify Google as the reigning champ. Likewise, entrepreneurs looking to conquer the digital music market would look to Apple as the current market leader.

Step #2: Identify the Champ's Powers and Priorities.

To understand how to beat the champ, you have to first understand how the champ works. To do this, entrepreneurs need to focus on the reigning champion's powers and priorities.

Powers are what resources and skills the firm has. A firm's powers are critical to understanding how the firm gained dominance in the first place. Note that many firms -- especially those that have a very strong foothold on an industry -- have multiple powers. To help keep things simple, focus on identifying the champ's most important powers.

Priorities are what values the firm has that dictate how it proceeds. Priorities are generally closely associated with how the company earns revenues: whatever it does to earn revenue is a priority, as that's what allows the company to stay in business and grow.

Below is a look at the powers and priorities of Google and Apple.

Google Powers: Their biggest skill is the amount of text-based information they have in their database. Their specialty is delivering breadth of information so that its users can quickly find even the most obscure facts.

Priorities: How does Google make its money? Primarily by people clicking on the sponsored links on its search page. So, getting users to click on ads so that advertisers can pay them is a top priority for Google.

Apple Powers: With respect to digital music, Apple's key power is the iPod. The iPod far and away is the firm's competitive advantage, and they have demonstrated skill in creating portable music devices that have mass appeal.

Priorities: Just as Apple's key power is its iPod and its ability to make portable music hardware, it's key priorities are selling those devices. While the firm does make money selling mp3s, the true cash cow for its digital music division is the mp3 player. So the firm's priority is to make and sell hardware for digital music.

Step #3: Identify the Right Power for You.

Even if you are immensely talented and sure of the fact that you have far and away the best product, success is unlikely if you are trying to build your business around the same powers that the current champ wields. If you try to develop the same powers the champ has, you'll be competing with them directly on many fronts -- not just on acquiring customers, but also on dealing with suppliers, marketing venues, and employees. Because of this, you should place a big emphasis on cultivating powers that are different than what the champ has. In fact, the ideal scenario is to cultivate powers that are complementary to the current champ's powers so that you can partner with them. Google itself employed this strategy as they partnered with Yahoo! -- the champ Google was looking to dethrone -- to power Yahoo! search results from October 2002 to February of 2004. This partnership allowed Google, the underdog at the time, an ability to gain a critical partnership that allowed the firm to expand and eventually overcome the champion they initially befriended.

Example: Google's primary power is its ability to deliver text-based information. But what about non-text based information, like audio and video files? Search engines like AudioFind, SingingFish, and PicSearch are all engines that are cultivating powers in non-text search.

Likewise, Apple's primary power is hardware. An underdog looking to take down Apple should aspire to cultivate different powers, such as strong partnerships with music labels to deliver content, and/or flexible programs that provide users with more of the kind of music they are looking for. Rhapsody, Napster, and Yahoo! are some firms that have wisely taken this approach.

Step #4: Have Different Priorities.

Just as you want to have complementary powers, you can also benefit from having different priorities. The rationale for having different priorities is the same as why different powers are needed: you want to avoid competing directly with the reigning champ as much as possible. Essentially, the idea is that it's easier and far more feasible for an underdog to defeat the champ if he/she takes a "back door" approach rather than taking on the champ head on. What you're really competing for is not the powers or priorities, but rather the attention of the end user. In other words, to beat Apple at the digital music game you don't need to roll out a better mp3 player; rather, you need to find a more compelling way to get the end user -- who, in Apple's case, is a consumer of digital music -- to give you his/her attention.

Example: Snap.com, an underdog search engine looking to take down Google, has established different priorities by creating a new way that they can attract revenue from advertisers. Instead of getting paid per click from a sponsored listing on their search results page, they plan on getting paid when the user actually completes an action on an advertiser's site (such as making a purchase). This will cause the company to prioritize getting users to complete actions on their advertisers site -- not just getting them to click on an ad.

Likewise, Napster plans on taking the digital music market not by prioritizing the sale of hardware, but rather by making the sale of digital music a priority.

Step #5: Attack The Champ's Powers.

The way to attack the champ's powers is NOT by trying to be better than the champ at the champ's own powers. Instead, the idea is to devalue the champ's powers in the mind of the end user, and thus shift the basis of competition in the market to what your power is.

How can this be done? The most effective way to do this is to imitate the champ's power in the cheapest way possible. If you compete on price, you are bound to attract some clients -- perhaps those who do not value the service much at all or those that simply cannot afford it. In this way, you can attract some of the champ's audience, and convert them into utilizing the powers that you have to offer.

Example: Could Napster benefit by partnering with a low-cost mp3 manufacturer and distributing an mp3 player as cheaply as possible? In doing so, it could help to commoditize mp3 players, and thus shift the basis of competition in the digital music market back to content.

The search engine industry is slightly different, but the idea is still very much applicable. Search engines often sell their technology to web portals who need to offer search to their users; as a result, an underdog search engine could freely distribute a text-based search engine to attack Google's power.

The Tough Part: Identifying Powers and Priorities

Clearly, this five step formula to success is fairly simple and straightforward. The true challenge is in correctly assessing what the reigning champ's powers and priorities are, and then coming up with viable powers and priorities of your own that will help to debunk the champ. Once that can be done, knocking off the champ will be surprisingly easy.

Simit Patel is the Managing Director of The ActoNetwork, a company devoted to helping small businesses succeed on the web. The ActoNetwork publishes a free 102 page Internet Marketing eBook and has a free Internet Marketing Workshop for online entrepreneurs.

Incorporating Investor Feedback Into Your Business Plan

Writen by Dave Lavinsky

Investors, like the rest of us, have different tastes. One investor may love a concept and/or business plan while the next may hate both. It is important to understand this as business plans are working documents and are always undergoing iterations.

Management teams must not rush to incorporate each potential investor's comments. Instead, have several investors, partners and other business colleagues review the plan and provide feedback. Then incorporate common concerns and probe other comments to determine if they are valid.

Always try to understand the rationale behind an investor's comments. For instance, an investor may poke holes in a business plan if it doesn't have enough funds to fully fund the opportunity. In this case, the investor's criticism is solely for them to save face.

However, if you are hearing the same feedback from multiple investors, it is probably valid. In such cases, be humble. Tell investors that you appreciate their feedback and modify your strategy and plan appropriately. You may then be able to re-approach these investors with great success.

Many investors have significant operating and investing experience and can quickly and expertly find potential flaws in a business plan. Seek out investors who have such experience, and be open to their suggestions. Just don't take one point of feedback and blindly follow the advice. It is also important to note that even the most successful and largest public companies have Boards that provide similar feedback and advice, so don't take criticism and feedback as a sign that something is wrong with your venture. Rather, use it as a launching pad for an even stronger business.

Since its inception, Business Plans by Growthink has developed over 200 business plans. Growthink clients have collectively raised over $750 million in financing, launched numerous new product and service lines and gained competitive advantage and market share. Growthink has become the firm of choice for venture capital firms, angel investors, corporations and entrepreneurs in the know. For more information please visit http://www.growthink.com or visit our venture capital placement site at GT Venture Capital.

Whats The Point Why Hire Consultants And How Can You Get The Best Out Of Them

Writen by Karen Otazo

Moving from organizational life to consulting life didn't seem like a big deal to me. I'd been doing internal consulting for more than a decade. I'd been bringing consultants into my organisation as an "extra pair of hands" or as experts to present programs or coach executives. What I found as an internal customer was that hiring a consultant can be tricky. Through a trial and error process of discovery I found that the nature of the consulting relationship is the key to whether the company is going to get what it needs or throw money down a consulting black hole. Although a company is "borrowing" talent, not "buying" it the way they do when they hire someone, it's still a major financial and time commitment. I spent a lot of time managing consultants. I figured "What's the point?" if I didn't get the best out of them. And .for the consultant, the consulting assignment has both a financial and reputational impact. Why not make this arrangement a win-win?

To do that I found we had to learn to trust each other. The approach to low trust by the organization is often a "taxi driver" approach. The consultant is paid by the hour or day. This is a contractual relationship versus a relational contract. The consultant does what he or she is told. The good news is that this is a good way to use "one-trick ponies." When you have a speaker who can do a great presentation about what they know best this is the best way to use them. If you want any in-depth work from a consultant it's best to try the partnering approach. As one client said "We are depending on you to get our bench-strength ready for their next jobs. His approach was to put me into a relational contract where I was committed to his company's expected outcomes.

"Taxi driver" approach or partnering approach

One of the nicest compliments I ever got was "You don't think like a consultant." I realised that I see myself as partnering with my clients, almost as if I become part of their organisation for a period of time. When clients want to hire me by the hour, or minutes, I find it very strange. At one point, I was contracting with a prospective client who came out of a supply chain background. He spent the contracting period penny pinching me in all the aspects of the contract. For me, he was concentrating on the wrong aspects. When I tried to concentrate on the outcomes rather than the specifics of the process, he just didn't "get it." He was so used to taking farthings off widgets that he just couldn't focus on the end results. The "taxi driver" approach didn't engender enough trust for me to continue the contracting. I pulled myself out of the process.

I try not to work like a "taxi driver." I have found that thinking of consulting as day labour gets me, and other consultants too , to act that way. I prefer thinking like a partner in the project's success. It's vital for a company to think this way too. Partnering is a trust builder. There is a mutual commitment to success.

Consultant partnering trust occurs when there is both personal and professional trust. Personal trust is each party doing what they say they'll do, when they say they'll do it. Professional trust is demonstrating the talent, expertise and an understanding of the consultant's craft and of human behaviour that enables a consulting relationship to work.

Create a contractual relationship or a relational contract?

"Relationships of trust depend on our willingness to look not only to our own interests, but also the interests of other." Peter Farquharson, Early 20th century English cricketer

Even if you're hiring day labourers, a company wants its money's worth or more. Although many consultants are hired on a short time scale, their organisational "fit" is essential. One of the best ways to ensure fit is by knowing the company and its needs as well as the needs of the project or intervention that the company needs. When a company insists on a detailed contract they often get just what they negotiated and nothing more. My belief is that it's vital to keep your "eyes on the prize." What is it that the company and the specific client(s) want to get out of the relationship? Contracting is where you ensure that the commitment and professional expertise are there. There's an old American saying that could apply to contracting, "Good fences make good neighbours." By setting up the parameters in contracting the participants are then free to do more but not less.

It is vital that those who are doing the consulting be part of the contracting phase. If the person who initiates the engagement is the "finder" but doesn't do the work it may not be a good idea. That also goes for having a "minder" and a bunch of "grinders" whom you don't know well. If you contract with the experienced folks there is not enough pay-off from the rookies. It's vital that you get to know the consultant(s) you're using before, during and after the consulting engagement. Though the consultant(s) may not be employees they should be treated as if they are personally responsible. As an independent consultant, and previously as a corporate buyer of consulting services, I have found that independents are often the best choices. There have been at least a dozen situations when I've been called in after someone from a consulting firm hasn't delivered what was expected. Don't forget that you are hiring the person and not the company.

The way that a consultant (firm) approaches contracting is revealing. Are they happy to spend as much time as it takes in this phase? The time that it takes to contract and work with the company representative who is doing the contract is part of the big "bucks" that consultants charge. Part of the contracting should be a negotiated "package", or programme price. Part of the package price is that the consultant should not be charging for every small cost like taxi fares for local work.

The package should include written information that is necessary for the process to work. That might mean something in writing that can serve as a roadmap for clients to follow as they work with consultant. A report at the end of the consulting process is not one of the worthwhile things to pay for. When the consultant has left, the report is rarely of use. It may feel good to get one but often goes on a shelf after the consulting engagement is finished.

Most of all, I believe in generosity of spirit on the part of the consultant and the company. That means giving more than the contract stipulates when it's needed. That means consultants occasionally giving more consulting time, without extra fees, for those who need it and the company staying supportive and flexible with the needs of the consultant. In other words, the parties involved should be responsive to the other's needs. Over time, this kind of attitude breeds trust.

Being a consultant is a bit like being an employee for a period of time. Just the way employees "hold" the needs of their job and the needs of their company in their consciousness, an excellent consultant "holds" clients and their needs and the work in their thinking time outside of the actual assignment time. I am constantly surprised when a client says that a workshop I gave was only six hours so they that they should not have to pay for the entire day of eight hours. How amazing is that? It may have taken days to prepare the work which may, or may not have been remunerated. Moreover, when a consultant is at one company for six hours there is no way that two more hours can be squeezed into that day. That is one of the reasons why daily fees don't make sense for excellent work. The other is the thinking time that involves "holding" the client in your thoughts and plans.

Be careful with one-trick ponies and "consultant creep"

"The people I distrust most are those who want to improve our lives but have only one course of action." Frank Herbert , 20th century science fiction author

A company usually hires consultants for their expertise. In their area of expertise they need to be role models. I once hired a consultant who was superb at educating and empowering personal assistants to maximise their potential. When she was asked by an executive to work out a conflict among a group of personal assistants she overstepped her expertise and failed miserably. It's not uncommon for this kind of thing to happen since expertise is often specialised.

It's also the responsibility of the consultant to keep the company representative informed of every potential consulting request that the consultant gets to do additional consulting. Someone in the company needs to keep track to avoid "consultant creep," or consultants running amok around the organisation. I find that someone to vet each request, and the appropriateness of the consultant(s) for the request, is the only way to ensure the trust that you have the right person in place.

Trust comes from bringing in consultants who don't come in with a prepared idea of the issue and the solution. Consulting companies that have "models" that they use can be guilty of this approach.

Consultants need guts rather than glory

It's too easy for consultants to be sycophants rather than speak what they believe needs to be said to individuals of power and authority. This is not the place where executives should be told what they want to hear rather than what they need to hear and learn. It is important that a consultant, beyond an "extra pair of hands," be responsible for moving individuals, or the culture, to take action. The trick is that the "push" needs to be strong enough to show action and gentle enough not to cause reactive "push back," or organisational resistance. This is a major area of trust!

On the whole, mature consultants who are beyond wanting their own days of personal glory make some of the best choices. If the consulting work isn't satisfactory it's time to give the consultant(s) feedback. The way that they accept and respond to feedback without defending tells you a lot about their professional trust. I love adapting as a consultant. It's wonderful to get feedback and have a chance to adapt to the needs of the company and the individual(s) involved.

Consultants who need a lot of kudos and strokes can be trouble. A consultant can be a bit like a catalyst. They can have enormous impact for positive change yet not be part of the end result. If they need the glory they are not mature enough for this kind or work.

See more about Dr. Karen Otazo at the following
http://www.globalleadershipnetwork.com
http://www.otazo.com - Executive Coaching

Dr Otazo is an author, consultant and global executive coach. She worked in multi-nationals in US, China, Indonesia, India, France. http://www.globalleadershipnetwork.com http://www.otazo.com

Office Space

Writen by Kent Pinkerton

Many of us work in small cubicles, with nothing to look at but our computer monitors and piles of papers scuttled on our desk. Turning back, we see our colleagues scooped up the same way and facing the other side of the wall. Drab working conditions create stale minds and people get suffocated in their offices. Well, if you are not one of them, you are very lucky.

However, there are simple ways to beautify office spaces, making your working hours more pleasant and bearable. A flower or a plant on your desk will be a visual relaxation from the monitor radiation. Placing the desk near a window or a door, so that you face an opening will also refresh your tired eyes and brain. Add a picture or painting to this, and you will have a good office space.

If you are a company looking for new office space, you need to plan your requirements before shopping around for sites. Apart from simple additions like those mentioned above, you need to determine the working area you need, the number of offices, the seating types and arrangements for your employees, and amenities like lunch rooms, coffee bars, etc. that you would like to have in your office. Choose and plan your requirements to suit your business purposes. If you are a customer service company, each employee should have office space that facilitates easy and friendly interactions with customers. But if your company is basically running projects, cubicles for employees are a better option than elaborate office spaces.

Before you start planning, visit sample office spaces and search the Internet for space calculators and other requirements. Or contact professional office planners and decorators who will help you set up your office spaces to suit your business needs.

Office Space provides detailed information on Office Space, Corporate Office Space, Temporary Office Space, Office Space For Lease and more. Office Space is affiliated with Discount Office Supplies.

How To Avoid Cashflow Problems

Writen by V Selman

Cashflow problems are the main reason why more than 70% of UK businesses go under in their first year. Although this statistic is fairly shocking, the reassuring fact is that there is a lot that companies can do to manage their cashflow effectively.

We have put together our top tips to help you avoid cashflow problems and become a business success story.

1. Always run credit checks on companies that you do business with

Many people forget or think that it's not important to vet companies before doing business with them. However, doing so is an important method of avoiding cashflow related problems further down the road.

If you have not checked up on a potential new client, you expose yourself to the risk of not being paid.

There are a number of ways to run credit checks such as ordering an online credit rating from credit reference agencies or checking your potential customer's payment record.

2. Encourage prompt payment

You will have to pay your suppliers even if you have not been paid by your customers. Encouraging your customers to pay you promptly is therefore an effective way to avoid cashflow problems.

Try offering favourable payment terms to people who pay early and refer to the Late Payment of Commercial Debts (Interest) Act of 1998 on your invoices. This legislation allows companies to charge interest on overdue amounts.

3. Manage your budget carefully

It might sound obvious but good budget management is a key step to good cashflow management. Do not be tempted to spend money on promotional activity that has not been accounted for in your marketing plan.

Before you do allocate funds, make sure you know what the return on investment is likely to be and ensure that you can afford to spend the money in question.

4. Manage your accounts carefully

Do you know who owes you what and when payment is due? Keeping an invoice book detailing when invoices were sent out and to whom, as well when they were paid is a simple yet effective way of keeping on top of your finances and avoiding cashflow problems.

On Stop runs a unique service which allows its members to check potential customers' payment record and encourage prompt payment in order to help them avoid cashflow problems