Good, I have your attention now.  Over the last few weeks I have been posting about strategy concepts.  I feel like I have been missing my mark.  These concepts have detailed various tools for developing strategy, but say little about the true nature of strategy.  Unfortunately this is the prevailing approach in business schools as well.  No offense to my strategy professors, but the study of strategic management is academic in its nature and largely fails in teaching how to think…

So, I realize that I touched on some of this back in part one when discussing information and intelligence.  I think that it is worth revisiting in more detail, and will be especially good for anyone still in the process of planning a business.  External analysis is an evaluation of factors outside of your organization with an emphasis on strategic importance.  The simple version is the second half of the SWOT analysis covered a couple of weeks ago, and all of Porter’s Five Forces.  Look for…

Vision

This probably should have been part one of the series since knowing your end objective is part of the foundation of good strategy.  Do you intend to provide the best pizza in the region with a family atmosphere?  Are you trying to be the market leader in high tech widgets?  How about providing the highest quality financial and strategy consulting to small businesses with a focus on those trying to grow?  Yes, that last one is a shameless plug.  Don’t be afraid to be…

This is intended to be the first in a series of posts over the coming weeks discussing different aspects of business strategy and some tools for developing it.

Information and intelligence are vital to the effective development and execution of any strategy.  Just as a general would never take the field without first surveying the terrain and attempting to locate the enemy, no manager should ever commit to any strategy without first collecting as much relevant intelligence as…

My younger brother has recently embarked on a quest to purchase his first car, prompting me to proffer some advice on optimizing on the negotiations.  It is a subject which I hope will be of interest and benefit to those of you who read my periodic ramblings. 

BATNA

Bat-what?  In the academic study of negotiation, this term represents your best alternative to a negotiated agreement.  Many of you probably had a good understanding of concept before it had an…

I am sure many of you are familiar with the concept and development of a cash budget, and some of you are likely familiar with the capital budget as well.  This post is primarily for the benefit of those not familiar with the latter.  If you would like an explanation of the cash budget I would be happy to cover it in a future post.

While an operating cash budget is a fairly simple undertaking, tracking when money comes in and goes out, a capital budget starts to include…

When I first decided to start my consulting practice I had all of these grand ideas of how I was going to attract customers and how rapidly business was going to take off.  Optimism, that quintessential trait of the entrepreneur, has a frequently unpleasant side effect.  Sometimes (often) things don’t go according to plan or remotely near the way we would like them to. 

The plan was to use and build my professional network to attract small business owners as clients.  I…

For those of you who didn't make it to Launchpad INW's Entrepreneur and Small Business Community Event today; guest panelist, Katy Brown of Thin Technologies, described starting a business as "terrifying."  As I go through the early stages of starting my own business, I can sympathize.

When I first made the decision to 'take the leap,' I was excited by all of the…

How does someone decide whether or not to start a business?  While I cannot make this decision for anyone besides myself; I can certainly suggest a few things to consider. 

The first thing to consider is your opportunity cost.  Opportunity cost is an economist’s way of defining the value of your other options.  What are you going to give up if you start a business?  What can you gain?  What are the pros and cons of other things you could do rather than start a business? …