Keeping up with Creativity

Strategy Plan One

September 9, 2012

Creativity

We have all been there.  Planning, writing, blogging, tipping and then we hit the wall with no creativity left to continue.  Seems to happen frequently with some, while others never seem to have a problem cranking out volumes of interesting, valuable information.

As an entrepreneur, executive or specialized staff working in an organization, you need to keep up with your creative edge.  Creativity helps you and your business stay on the leading edge as it is applicable to so many facets of business.  Business plans, marketing plans, product and service offerings, campaigns, projects, methods, processes … all require a significant degree of creativity to make things stand out.  Creativity takes plans, products, and processes to the next innovative level, sometimes leading to a competitive advantage over the competition’s standards.

Here is a brilliant infographic from Copyblogger, that illustrates some major creative blocks and how to bust out of them to maintaining your high level of creativity.

Creativity

Source:  Copyblogger

Summarizing some tips to bring out your best creativity:

  • Maintain creativity as a priority in your business and personal development
  • Take a breather – writers can face exhaustion; take a break mentally and physically and watch creativity come back
  • Jump on some ideas after researching, reading and analyzing others’ work
  • Take mental notes of objects, scenarios and people in your environment and how it relates to your topic (you will be surprised at the content you can create from this)
  • Diet – the brain needs nutrients; many studies have show that healthy diets fuel the brain
  • Ask a colleague for input, ideas, co-authoring (will generate ideas and content that you would add on to others)
  • Colors can activate creativity; tune into, focus on colors
  • Sound can create a response in you
  • Confidence – high level of confidence and you will be always ready to go
  • Don’t get stuck in perfection; no one is perfect
  • Don’t feel your work isn’t valuable as your work can have a significant impact on 1 person, 100 people, or a massive crowd
  • General rule – quality is always best; don’t feel pressured to pump out massive volumes of material
  • Set up a schedule of focused time; distractions and not getting organized can cause stress which causes mental blocks

More on creativity:

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Strategy Plan One

http://strategyplanone.com

Business information, resources and tips for the entrepreneur

© 2012 Strategy Plan One

Revenue Forecast – Factors and Projection Models

Strategy Plan One

April 12, 2012 

 

revenue forecastRevenue Forecast – Overview

In one of your key business planning activities you will need to accurately project revenue streams. As part of revenue management, the information on your revenue forecast would be your strongest indicator in your business plan.

 

Your revenue forecast will illustrate how successful your financial situation is projected to be.  Investors, partners and bankers will be reviewing how you arrived at your numbers, at how you justified revenue and sales levels.  Your forecasting will need to be more than just an educated guess, however, an educated, experienced background is essential to forecasting.

 

Everything in your financial and business planning will be centered on revenue numbers, from estimating variable and fixed expenditures, to determining the amount of debt that can be serviced with the projected revenue levels.  So many factors, differing in various industries, need to be included in revenue projections.  Integral to forecasting revenue, your marketing plan will include some factors and will need to incorporate market potential information.

 

Revenue Forecast – Tools

Spreadsheets and calculators can assist in a formula based approach, but some are generic and do not take into account industry specific factors and differing revenue projection models.  In essence, you will need to incorporate specific factors into your calculations and run differing simulations to capture all potential circumstances.

 

The following describes some of the various factors and models to determine your revenue forecast:

 

revenue forecastRevenue Forecast – Based on Historical Financial Data

If you are forecasting revenue for an existing business, revenue projection may not be as difficult as you may think.  There is a historical track record of data for existing businesses to build on.  In reviewing revenue and sales trends in the historical financial data, you can estimate the ongoing continuous trend forward.

 

When reviewing and analyzing financial trends, pay attention to the rate of growth or rate of change in revenue and expense categories.  The rate of change must be taken into consideration, and don’t rely on a calculation of straight-line revenue projections.  If negative growth or declining trends are showing, differing strategies may need to be developed to get trends back on the right track.

 

Using Intelligence for Your Revenue Forecast

As an experienced entrepreneur you may carry some intelligence from past employment, from operational and management experience.  If your experience was industry specific and applicable to your start-up or existing business, you may have the intelligence to develop some close to accurate projections.

 

You may also be able to surround yourself with professionals that also have this intelligence.  We are not suggesting that you steal information from a competitor, but acquire professionals that are well-versed in a certain applicable industry, that have an innate ability to complete an accurate revenue forecast.  Accountants also specialize in this area but will need access to information and intelligence on the industry and markets.

 

Revenue Forecast – Industry Standards Data

Revenue models can be generated from using the industry standards data.  Loads of generic industry data has been compiled for decades.  The US Census Bureau is also a good source for industry data to base your projections on.  In Canada, you may want to search through Statistics Canada for general industry data.  Note that utilizing this data is more along the lines of a theoretical, averaging approach and may not take into consideration the factors of your specific business circumstances, area and markets.

 

Marketing Information for Your Revenue Forecast

Good potential sales data can be obtained from surveying your potential customers and potential markets.  You can base your revenue forecast on the total market and on your estimated market share.  If you have excellent relationships with your potential customers and there is a mutual agreement to supply products or services you may be able to sign into a preliminary agreement, or Letter of Intent (LOI) for future sales.  You can definitely extrapolate more solid information from this for your projected revenue and sales.

 

In addition to your own surveying efforts, you can obtain the services of a marketing company to do the work for you or to provide you will more specific market information for you to base your projections on.  Depending on the firm used and type of information obtained, this would be an additional reliable source of information, and more valuable to your revenue forecasting.

 

Tips to Assist in a More Accurate Revenue Forecast

  • Be realistic, and plan modestly
  • Generate projection scenarios, from conservative to optimistic
  • Back all projections with information to make it more objective
  • Use multiple information sources in developing projections
  • List your assumptions and justification for your numbers
  • Seek advice and feedback on your information
  • Develop strong relationships to build in LOI, MOUs with potential customers to assist in revenue projections
  • Adjust wherever needed and frequently; the more effort you put in the better the forecasting will get.
  • Remember this is not a perfect science but are tools for estimating

 

Using a fusion of models and factors indicated above may result in more comprehensive, more accurate revenue forecast.  Ensure you complete the due diligence required on detailed business planning, including using revenue projection models to minimize risk, and you will experience actual results closer to your financial projections and goals in the future years.

 

Strategy Plan One

http://strategyplanone.com

Business information, resources and tips for the entrepreneur

© 2012 Strategy Plan One