Why Is a Broad Perception Critical For Creativity, and Decision Making.

Posted on January 24, 2024August 8, 2024 by harborcapitalgroupinc

A broader perception is indeed critical for understanding, creativity, and decision-making, and

the reasons why it’s often overlooked in education are complex and multifaceted.

To visualize different perspectives, I have a great story from one of Edward De Bono’s books on Thinking.

It demonstrates why you need to go beyond the obvious. A group of young boys are standing around, and they decide

to tease Billy once again. So they show Billy two coins, a large one worth a dollar and a small one worth two dollars,

and tell him to pick one. He picks the large one, and the group laughs and has a good time at Billy’s expense.

So anytime the boys need a good laugh, they offer Billy the same two options. He keeps picking the

large coin, to their delight. One day, an older man sees what happened and says to Bily, you picked the wrong coin;

the smaller one is worth twice as much as the larger one. Billy says, “I know that. But, if I picked the small coin,

they would never keep coming back again and again to give me money/” Your perspective can make a big difference.

Here’s Why a Broader Perspective Matters

Creativity:

Breaking free from the box: Broadening your perception exposes you to new ideas, challenges assumptions,

and fuels your imagination. This freedom opens up possibilities for unconventional solutions and groundbreaking innovations.

Cross-pollination of ideas: Combining diverse perspectives gives birth to novel concepts and approaches.

Imagine combining scientific principles with artistic expression or merging business models from different industries – endless possibilities.

Thinking outside the lines: By stepping outside your comfort zone and embracing the unfamiliar,

ou tap into your latent creative potential and break free from the constraints of conventional thinking.

The Power of Perspective: Some Numbers.

Research paints a compelling picture. Studies by the University of Chicago found that teams that are diverse

in perspective outperform homogenous ones by 60%. A Harvard Business Review analysis revealed that CEOs

with broader perspectives generated 20% higher revenue. And, in a surprising twist, a Stanford study showed

that simply imagining another person’s perspective can boost your creativity by 25%.

These stats show that perspective hacking is the ultimate mental multi-tool. It unlocks doors to:

More brilliant Strategies: By considering multiple viewpoints, you anticipate blind spots

and craft strategies that adapt to the shifting landscape.

Faster Problem-Solving: Different perspectives reveal hidden connections and cracks in

the problem, leading to quicker, more effective solutions.

Untapped Creativity: Stepping into another’s shoes sparks unexpected connections,

igniting the fires of innovation and generating novel ideas.

Here Are Some Ways to Cultivate a Broader Perception

Seek out diverse perspectives:

1. Read books and articles from different viewpoints.

2. Watch documentaries on unfamiliar cultures.

3. Engage in conversations with people from different backgrounds.

Challenge your assumptions:

Question your own biases and beliefs and actively

seek out evidence that contradicts your expectations.

Embrace curiosity:

Stay curious about the world and explore new ideas and experiences.

Travel and immerse yourself in different cultures:

Experiencing different ways

of life can expand your worldview and challenge your assumptions.

Conclusion

By actively cultivating a broader perception, you can become a better understander, creator, and

decision-maker, navigating the world’s complexities with greater confidence and success.

It’s now your turn. Break free from tunnel vision and boost your creativity and decision-making.

How To Create Strategies For Business Growth

Posted on January 21, 2022 by harborcapitalgroupinc

How To Use Business Growth Strategies To Become A Superior Competitor

If you are in a competitive market long-term, you will likely go out of business because eroding margins are the consequence of destructive competition.

Therefore, you need a powerful strategy for business growth to become a superior competitor.

The good news is there are three strategies we will cover in this blog that you can repeatedly use:

keep creating new ideas and innovations to acquire new clients,

get them to purchase more,

and increase the number of times they buy each year.

Learn how to get out of that long-term competitive race with a superior, long-term strategy for business growth.

Our strategic framework will elevate your products and services over the competition—no more short-term tit-for-tat competitive strategy.

You will have a process that will deliver endless business growth strategies, opportunities, and revenue growth, making you the market’s value leader.

Without the hype, buy now marketers we see so much of today.

This Strategy For Business Growth Blog Will Briefly Cover:

1. How to make better decisions more often. It covers expertise and critical thinking from one’s perspective and vision.

2. Then, three ways to increase revenues and what you can afford to spend to acquire a new client.

3. And then, we will discuss only three things — business growth strategy, creative insights, and marketing strategy —

you can repeatedly use to keep improving value and increasing revenues and profits.

Let’s talk about decision-making first because you may want to change how you approach decision-making.

And we know you must make many daily decisions as a business leader. So, let’s start with a question.

With So Many Growth Strategy Decisions, How Often Do CEOs Make The Right Decision?

The answer is 52%. You only have to make the right decision 52% of the time to be a top decision-maker — 2% more than the flip of a coin.

Remember New Coke or the Edsel car? Billions were spent and lost by brilliant people making poor decisions.

Why is this number so low? The first reason may surprise you. It’s due to our reliance on expertise.

They specialize in their industry, markets, and products to get to the top of their company and industry.

They have built a kind of wall around their perception of the world.

They know the norms of their industry and are comfortable. So they are comfortable making informed decisions.

Many Executives Have Put Themselves In A “Limited Perception Box.”

Executives often limit their business and industry worldview.

This limits their situational perception, which is a significant reason they can’t get past 52%.

For example, If you looked at the front of a house, you would have a real, accurate perception of that house.

If someone else looks at that house from the rear, they would have a different and precise perception of it.

Here’s a fun perception example that I like from Edward de Bono.

This group of 12-year-old boys tends to pick on or tease Bobby because the group thinks it’s fun.

They show him two coins one day, a large one (worth $1) and a smaller one. (worth $2).

Bobby picks the large one, and the group laughs and has a good time at Bobby’s expense.

They do this several times over the summer.

One day, an older man sees what’s happening and afterward tells Bobby that the smaller coin is worth twice as much as the larger one.

Bobby says I know that. But, if I had taken the $2 coin, they would never have kept offering him the opportunity again and again.

Perceptions can be valuable and increase opportunities.

This short story shows how vital your perception is,

and the broader your perception, the better you will be at solving problems, coming up with new ideas, and making good decisions.

You can’t limit your perception of your industry, market, or how you think about your company.

Why “Perception” Matters When You Are Trying To Create Business Growth Strategies

If I asked you what you do, you might answer: I own a hardware store, I am a doctor, or I manufacture light fixtures, or whatever.

You probably would say yes if I asked if you wanted to grow the business.

So, now let me REFRAME your answer by changing your perception,

Let’s say your first answer was. “I own a hardware store, and I sell products and services.

That perception may then limit your market growth.

But what if you reframed your answer to, “I own a marketing company that sells hardware and services.”

Now, you have a different and much broader perception of what you do and how you would approach your objective or goal differently.

Your job is marketing which means you focus on increasing sales and profits.

You can now focus on ethically building your company, sales, and profits, not as a hustler.

This change in perspective gives you a broader perspective and have you searching for ways to market your business by focusing on your clients.

Note: your focus is now on the client because a client is someone you care about and want to help solve their problems. A customer is a transitory perspective.

There Are Only Three Traditional Ways To Get Additional Revenues.

1. Increase the number of your clients. Start by looking at the “lifetime value” of the client.

If you sell a product for 1,000 dollars, the client makes a purchase once per year,

and the average customer remains a client for five years; the lifetime value of that client is $5,000.

I assume you would prefer the $5,000 to the $1,000. So, you now know you can spend up to $5,000 (less your costs) to acquire a new client.

If you could increase the number of clients by 10%, you would increase your revenues by 33.5 percent.

2. Increase the average size of the orders

Start by satisfying the client with add-ons or solving the client’s problem better or differently, which might require additional or different items.

Maybe the way they sell cars.

After you agree to purchase the car, they show you the sunroof to make your driving more fun, the better radio that brings in more stations, and more.

3. Increase the number of times they buy each year

Create other ways for clients to use your products or services.

A great example is American Express or Visa, which enables you to purchase plane tickets, theater tickets, and a frequent flyer miles incentive program.

Or maybe a special spring and fall sale at your store for current, specially invited clients only.

Those are all excellent traditional things you could do to improve your revenues. But an even better approach will give you continuous revenue growth.

How To Achieve A Sustainable Competitive Advantage

Generally, if you are in a competitive market long-term, you will likely go out of business because of eroding margins

due to the problematic competitive nature of competition.

But, there are only three strategies you can repeatedly do to keep coming up with new ideas to get new clients and get them to purchase more,

plus increase the number of times they buy each year.

Revenue Opportunities Start With Your Strategy For Business Growth.

Using your new perception, create a new strategy for your business

based on your goal or a problem that needs to be solved to reach your objective or goal.

We could talk for days about what strategy is, but Richard Rumelt, author and professor,

explains a practical and straightforward definition that makes a complex description simple and easy to understand

A strategy Process Is:

1. Identify and define your problem or objective.

2. Diagnose the objective or situation (data is essential but not sufficient) because you rarely come up with new insight

because your mind is dealing with the information you already know

3. Innovate through insight and creative thinking. There are many innovative techniques you can use to create new ways of solving problems, and knowing how to reach the objective,

4. There is never enough time or money to do everything, so you must prioritize and ensure the solution conforms to your strategy

4. Prepare a coherent plan and execute it.

There is never enough time or money to do everything, so you must prioritize and ensure the solution conforms to your business growth strategy.

Then Creativity And Innovation:

I need to talk about innovation briefly because many people think they are not creative, but everyone is creative.

Again, Edward de Bono shows why your mind is set up to be creative.

It requires you to learn innovative techniques to put your mind in gear to do the creative work.

And it’s a great way to get business growth strategy ideas.

Humor is a beautiful example of how the brain works.

Humor indicates how our information system gives rise to perception and how you can see the world differently.

You might enjoy this example from a Winston Churchill story.

A woman MP meets Churchill in the hallway (after lunch and a few drinks) and says to him,

“If I were married to you, I should put poison in your coffee.”

And he replies, “and if I were married to you, I should drink the coffee.”

Our information system gives rise to perceptions and how you can see the world differently.

Perceptions set up in one way can suddenly be reconfigured in another way. Humor is the essence of creativity.

One can use many creative thinking techniques to create different concepts, insight imaging, and ideas and turn them into innovations.

For example, the random word technique is an easy and quick way to get many ideas.

See our blog post, “How to turn negative problems into positive results. or Michael Muchalko’s book, “ThinkerToys.”

Then Marketing Strategies For Business Growth

Marketing strategy and tactics are the third groups of tools we can repeatedly use to reach our objectives.

It begins with the same strategy format explained above — objective, diagnosis, insight, and a coherent execution plan — but is applied to marketing strategy.

Apply a market strategy to every tool used. For example, you need a marketing strategy in b2b for your website, blogs or ads, publicity, and other marketing tools.

You might want to see our blog posts on websites and value propositions.

For example, over one million blog posts are created every day.

How would a potential client find and read your blog post?

You need material the client is looking for, not necessarily the material you want to give him;

you need to be different and have a strategy and some creative insights to make it effective.

Also, because your perspective is now broader, you can use marketing strategies and tactics – from any industry-

to get new clients, get them to purchase more items, and buy more often.

Conclusion

Long-term, it is difficult to compete profitably in a competitive market because of eroding margins.

However, you can win this competitive race with better thinking, a broader perspective, and tools that can be used repeatedly.

To achieve a sustainable competitive advantage, you need to start with your business strategy for growth and keep adapting it to market and buyer changes.

Then use your creativity — everyone is built to be creative. It is a learned skill, not a talent. Learn to create ideas and then turn them into innovations.

Then create your marketing strategy for each objective and program — like website, blogs, advertisements, publicity, etc. — you will use and make sure you also have a coherent execution plan.

How will you use this approach to strategy for business growth to drive more revenues and profits?

Tell us what you think Also, if you would like more information like this blog post, sign up for our free blog post program.

PS. You might also be interested in the blog post, Why Your Business Growth Strategy Is Your Story.

Innovative Strategies: Leverage Potential Change

Posted on November 15, 2021 by harborcapitalgroupinc

Exploit Market Changes

Industries and markets are constantly changing for many reasons, including technology, a new business model, or a pandemic.

When this occurs, companies have two choices: adapt to current changes or, longer-term, be disrupted.

But, if you pay attention to these changes, you can develop innovative strategies for revenue growth and exploit these market changes.

That is what we are going to talk about in this blog, how companies react to these changes, how you can adapt your strategy to these changes

to gain product value, revenues, and even a long-term monopoly in your market.

Companies that do not adapt generally resort to inertia or entropy.

What is inertia?

Inertia is the unwillingness of the affected company to adapt.

Not adapting could be caused by routines (the way we have always done things) or an unwillingness to change strategies because it will hurt current profit streams.

They assume that these current profit streams will continue.

However, this also opens up opportunities for others. For example, Netflix replaced Blockbuster. Walmart replaced K-Mart.

What is entropy?

Inertia generally leads to entropy. Entropy is not keeping your product line up to date and, therefore, losing clients, sales, and market share.

The primary reason entropy becomes the problem is that the company becomes less focused on its products,

often reduces prices and generally becomes less responsive to its customers. You might agree with Elon Musk, “I think you should always bear in mind that entropy is not on your side.

Again, entropy opens opportunities for competitors to innovative strategies for revenue growth. Product-market fit is not a permanent status.

For example, the Encyclopedia Britannica was replaced by Wikipedia. Photographic film was replaced by digital cameras.

Innovative Strategies: Examples of Potential Opportunities

Your strategic opportunity is to pay attention to these changes and be willing to innovate your products or services and experiment.

In that case, you can leverage your current strategy.

You can capitalize on these changes with new concepts, ideas, products, or services that should generate new revenues and profits for years to come.

A few examples of potential innovative strategies for revenue growth in market changes are happening today.

Innovative strategies for potential changes in auto Insurance

Every car insurance company says -one way or another- you only pay for what you need.

And there are companies with apps comparing prices. How long can profitability last?

I also realize that much of their money is made on premiums and reinvesting premiums into other interest-paying assets.

But what happens when interest rates change, and the spread collapses?

What happens when car buyers switch from buying cars to subscribing to vehicles?

This concept is just getting started, but the idea is increasing globally.

Just pay a monthly fee and drive off the lot. You have a three-year subscription and can change car models every 12 months.

You subscribe at the dealership, and your monthly subscription includes insurance (they want to protect their asset.)

This concept is new, and I assume changes will be made along the way.

Other opportunities include electric cars, charging stations, gasoline prices, parts costs, and many more.

Is there an opportunity for an innovative strategy for growth, or are insurance companies the next Blockbuster video rental company?

How could you take advantage of these opportunities if you are in this industry?

Innovative strategies for opportunities in the phone market

One telephone service company sells its service for $75 per month,

and another sells the same service with the same coverage for $25 per month.

Are costs plummeting, or are more and more competitors entering the market?

Or are the phone companies still making money on phone sales?

But we see ads claiming you can save about 50 percent on some phones.

Are these companies simply discounting to get updates or new customers

— or calling it the marketing cost of acquiring a new customer who will eventually be profitable over the long term.

Plus, what technological advancements are going to happen? Will SMS messages all become MMS multimedia messages?

Will there be anyone left on laptops? What will happen with 5 G?

How will this evolving industry affect your market, product, or service? And how quickly?

Innovative strategies for opportunities in the real estate market.

Real estate companies continue to reduce their commissions and have gone from 6% commission down to about half that amount.

Companies and agents use marketing companies to get listings and independent agents to sell homes.

This new sales model has dramatically reduced costs.

There have also been new sales models like “ibuyers,” who buy a home in cash with no fees,

spend a few dollars updating the home, and resell the house for a profit. Can this last with higher interest rates and slowing house prices?

Also, many real estate companies own title companies because that is another way to “cross-sell” and increase their sales and profits.

But what if title companies begin using blockchain technology to make title registration faster, easier, and safer –maybe reducing title insurance?

Or what if the real estate agent took the average discount the buyer wanted and gave the buyer a portion of that discount as a “bonus” at closing for buying the house?

That money would be much more valuable to the buyer than the small amount that would reduce the monthly payment.

Considering all the variables that go into the real estate market, how will this market change in the next 3-5 years?

How will the real estate companies deal with all the brick-and-mortar offices across the country?

More changes and opportunities to come

Those few common examples are only the beginning of the changes we will see in the coming years.

For example, what will RoKo streaming television do to cable companies?

Or is Artificial Intelligence taking over more and more tasks?

Or are 3D printers building homes in a couple of days?

The list could be extensive, but you get the idea: everyone is or will be affected by continuous changes in our world.

One way you can deal with these changes is to monitor the changes knowing that some companies

will adapt quickly while others will respond with inertia and/or entropy.

Those companies are easier to identify and give you time

to create and modify your strategy to be the value leader in your industry and market

-and maybe own the monopoly position in a new market niche.

Conclusion

Gain Strategic Leverage From Market Changes

-Market fit continues to evolve and change with the economy and the customer’s needs and wants.

Therefore, stay alert and be ready to take advantage

of the many new opportunities to modify your strategy as required.

Who can argue with Elon Musk’s perception of the future?

He says, “you have to get into a new market several years ahead of the apparent trend to be a player in that market.”

Cheers,

Jim Zitek

PS. If you would like to learn more about business growth strategies,

check out this blog post: Why your business growth story is your story

PPS If you want to get the right information at the right time, check out our website,

How You Approach Problem-Solving Matters

Posted on March 3, 2021 by harborcapitalgroupinc

How You Approach Problem-Solving Matters

No matter who you are, a seasoned businessman or an entrepreneur, you continuously face different problems on that pathway to success.

And you can add to that the challenge of not having enough time to do everything.

We want to change that by getting you off on the right foot with how you initially approach problem-solving.

It’s important because the way you approach problem-solving matters.

Most problems need a timely solution. Some linger because we don’t know how to solve them.

It often happens when you suddenly have to face some things that you did not expect.

So, choosing the best path to reach an effective solution matters.

Following are several approaches to problem-solving.

Understand them, and you will be able to see the changes in how fast and effective your problem-solving techniques will become.

A Team Approach To Problem-Solving

If you are working with a team, everyone on the team must know and understand the problem from their own perspective.

And every person on the team must be able to freely express their point of view without criticism.

Leadership means that you remove all the fear in people’s minds of any repercussions if their idea is ridiculed.

The good news is it often happens that some off-the-wall comment is picked up by someone else and turned into a potential solution.

If you find that you cannot find “the” solution after a reasonable amount of time, compile a list of all the suggested solutions.

You can then analyze which one has the potential to solve your problem.

A day or two later, when people are not intensely focused on the problem’s details, someone often comes up with an insightful solution.

Having an open-minded approach is needed to develop transparent communication.

With an open mind, you can see things more clearly and see the bigger picture.

Finding and assigning important tasks to all the open-minded people will help in reducing the problem-solving time.

People with open minds can take you forward in your quest to find the best solution to any of your problems.

Creating a team of people who know exactly where to look when a problem occurs is always an interesting approach to problem-solving.

Mindsets Make A Difference In Approach And Outcomes

Next, let’s take a look at different mindsets and how these mindsets approach problem-solving.

Analytical thinking:

People who think analytically generally consider every aspect of the problem.

From here, they can move forward in a calculated way.

People with analytical thinking mindsets find it very easy to take on and solve any problem, so they proceed step by step.

They make assumptions and considerations because they have expertise in discovering new things, and they are sure about it.

Logical thinking:

People who think logically and straightforwardly learn from their actions from past actions.

Logical thinking can get you the solution you seek for any of your problems.

Logical thinking is the basis of their solution.

They approach the problem from how they think a normal person would view the problem.

They try to see the long-term solution.

Rational thinking:

It is a kind of thinker who would use their knowledge and assumptions.

They would not look for any experience or any other factor.

From their perspective, they may be like the problem,

and he would solve them in a way that others may find questionable.

Absolute thinking:

The absolute thinker wants surety for everything.

He has just two solutions, and one is right while the other is wrong.

He only selects from two of them, and for that, he always seeks permission from higher authorities.

He does not live with probabilities.

Creative thinkers:

Creative thinkers do not remain limited to one or two solutions based on their judgments or past experiences.

They can create solutions from scratch.

And they do not focus on one thing when there are so many potential solutions.

They will also take tier time in coming up with these solutions.

Conclusion:

Your approach to problems tells how you will solve your problem.

Identifying and agreeing on the problem rather than working on a symptom is critical to your success.

Learning how to solve problems creatively is a crucial talent and a toolbox for anyone who wants to succeed in business.

Solutions, no matter how difficult the problem or challenge, can be solved — some instantly and some, like solving the theory of relativity, took Einstein 10 years.

Always choose your method or technique according to the complexity of the problem.

Lastly, remember that trying to approach and solve a problem as a team can be fragile because you have to give space and freedom without criticism to each member.

We hope this information gives you some food for thought as you approach a specific problem.

I would love to hear your comments on using this approach.

Avoidable Mistakes Made Preparing Business Plans For Investors (part one)

Posted on November 13, 2020 by harborcapitalgroupinc

Your business plan is often the first impression you make on investors, and it could also be the last impression the inverter gets if you make the kinds of mistakes illustrated here. If you don’t get a referral, your business plan is how the investor will judge whether or not to invite you to the office for an in-person meeting.

With the hundreds of “opportunities” investors get every month, they are looking for ways to say no. Therefore, you mustn’t make a lot of mistakes. Every mistake will hurt your chances.

.The following list of examples is from Cayenne Consulting.

Content mistakes

Failing to identify a real pain

Identifying and solving real pain that customers are willing to pay to get solved is not necessarily easy. Check out these posts: https://https://harborcapitalgroupinc.com/wp-content/uploads/2024/07/Braintopview-1.jpg.com/the-critical-first-step-toward-new-product-success/ and https://https://harborcapitalgroupinc.com/wp-content/uploads/2024/07/Braintopview-1.jpg.com/part-two-how-to-get-product-validation-and-commitment/

On the other hand, pain is synonymous with market opportunity. And the more widespread the problem is, the greater your potential market. Businesses and consumers pay good money to make pains go away. Your business plan is how you tell this opportunity story.

Overstating the impact your company will have

Phrases like unparalleled in the industry or unique and limited opportunity or superb returns with a limited capital investment are only hype. Investors will determine your company’s impact based on their specific criteria.

You should simply lay out the facts: the problem, your solution, the market size, how you will sell the product, and how you have a competitive advantage and will keep it.

Stretching the potential uses of your product

To impress investors, entrepreneurs often try to show that their product can be applied to multiple, very different markets or explain they can have a complex suite of products to bring to the market.

They don’t realize that most investors prefer to see a focused strategy, especially for a very early-stage company. Investors want a single, superior product that solves a big problem in a large market sold through a proven distribution strategy.

Additional products, applications, markets, and distribution channels don’t have to be left out; they can be used to enhance and support a highly focused core-strategy. Tell your core-story and let everything else play a minor role.

No, go to market strategy.

Business plans that fail to explain the sales, marketing, and distribution strategy are doomed. Be sure to answer these questions: Who will buy it, why, and most importantly, how will you get it to them?

Also, explain how you have already generated customer interest, obtained pre-orders, or better yet, need actual sales. And describe how you will leverage this experience through a cost-effective go to market strategy.

We have no competition.

No matter what you think, you have competitors. Maybe not a direct competitor who offers an identical solution but at least a substitute. First-class mail is a substitute for email.

Competitors, simply stated, consist of everybody pursuing the same customer dollars.

To say that you have no competition is one of the fastest ways you can get your plan tossed. Investors will conclude that you do not have a full understanding of your market. The competition section of your business plan is also your opportunity to showcase your relative strength against direct competitors, indirect competitors, and substitutes. Besides, having competitors is a good thing; it shows investors that a real market exists.

Your business plan is too long.

Investors are very busy and did not have the time to read long business plans. They also favor entrepreneurs who demonstrate the ability to convey a complex idea’s critical elements with an economy of words.

An excellent executive summary is no more than 1 to 3 pages. An ideal business plan is 20 to 30 pages, and most investors prefer the lower end of this range. Remember, the primary purpose of a fundraising business plan is to motivate the investor to pick up the phone and invite you to an in-person meeting. It’s not intended to describe every last detail.

Document the details elsewhere in your operating plan, R&D plan, marketing plan, white papers, etc.

The end of part one. This information is a lot to contemplate. That’s why we divided this vital block of data into three parts. Be sure to read part two, which covers more things to avoid doing, and part three covering financial information.

The Elements Of Your Business Plan

Posted on April 27, 2020 by harborcapitalgroupinc

Your business plan is the primary document you will use to convince investors and others to work with you or invest in your startup. This business plan is not a one size fits all. You will want to tailor your material to what the audience wants. For example, if it is a venture capital company with recently raised funds, they will be looking for a longer-term view. If it is a venture capital company that has been investing for a while, they may be interested in more of shorter-term outlook and faster exit,

Following is the typical format for a business plan. It is intended as a guide because different kinds of companies will have different requirements.

1 Executive Summary

Describe (summary only) what your company is, what it does, and why it will be successful. Include your story, products and services, goals, company leadership and team, growth plans, financial information, and why and use of the funds you need.

2 Company Description

This section goes into more detail about your company. What are the problems you are solving, how you solve them, and the benefits to the buyer from buying your product or service? You can go into detail here with a list of specific customers, markets, organizations you serve, and any partnerships you have established.

Explain the competitive advantages your product has over the competition and if that advantage is long term—for example, Intellectual property, Patents, Trademarks, .etc.

Describe the strengths of your company, including product, market, or industry expertise.

3 Market Analysis

What are your target industries and markets? What is the outlook for size and growth in each target market? Who are your competitors, and how do you compare to them. Do any of them have a significant advantage (market share, business model, IP, etc.) over the others in the market? What about pricing and market share?

Why is your solution to the problem better, faster, cheaper, etc.? Are there any barriers to entry?

4 Organization and Management

Start with your legal structure (incorporation or Limite Liability Company), which be essential depending on the type of investor you seek. Mostly, angel investors are with LLCs, but venture capital companies want companies that are incorporated.

Explain your company’s structure and who will head up each department. Use an organizational chart, if possible, to talk about how each department head is qualified to run that department.

5 Service or Product Group

Explain your line of products or services in some detail, including their features, functions, and benefits. Describe how each of these products benefits the customer. What is the product life cycle? How long will you be in Beta?

Do you have any plans for future patents, trademarks, or other product designs that will protect the uniqueness of your products or services?

6 Marketing and Sales

What is your sales story? Describe how you plan to get, keep, and expand sales to your target audience. What marketing methods will you use? Will you be using outside agencies or inhouse personnel for marketing and sales. What kind of experience do these marketing and salespeople have?

How long is the sales cycle? What kind of funnels will help develop prospects? Will you be using any distributors or wholesalers. If so, who are they, and what procedures and compensation are involved?

7 Funding Request

Describe your funding requirements in as much detail you can. If it is for one year, five years, or are you planning to fund by milestones? What type of funding are you looking for: debt, equity, loans, or some combination. Are you looking for a strategic partner or multiple investors?

How do you plan to use this funding: product development, sales, marketing, equipment, facilities, salaries, etc.

8 Financial Projections

Sone of the documents that will be requested includes the capitalization table, income statements, balance sheets, cash flow statements, capital expenditures, and budgets. Also, you will need to prepare a Pro Forma which uses assumptions and hypothetical events that occurred in the past and may occur in the future. This comprehensive financial overview gives outsiders a good look at your business from an economic viewpoint going into the next five years.

9 Appendix

Thie appendix includes documents that support your business plan like resumes, licenses, patents, legal documents, permits, any contract documents, etc.

Want To Make Better Decisions? Here’s How To Start

Posted on March 3, 2020 by harborcapitalgroupinc

We all make some decisions. Some we celebrate and some we would like to redo. Estimates are that CEOs from established companies make the right decision 57% of the time. However, If you are the leader of a startup company, you will have to make more decisions, more quickly, and with uncertain information or little information at all.

Our culture says that leaders are strong, confident, have conviction and remain consistent. But what if they are wrong? It actually happens quite often. For example, Blockbuster, Blackberry, Xerox, and Sears to name a few. Ninty-five percent of startups are started and closed every year in the U.S. Most of us could do better. Here’s how.

The key to better decisions, according to Al Pittampali in his book “Persuadable,” is the willingness and the ability to change your mind in the face of new information. To do this, you have to reject absolute certainty and treat your beliefs as temporary. Plus, understand that no matter how confident you are in your view, you could be wrong,

This kind of thinking requires you to seek out counter-arguments against even your most long-standing trusted beliefs.

Therefore, exceptional decision-makers, are people who are first, “Persuadable” and have the mental flexibility to change their opinion. If they are persuadable, they need to evaluate critical information or arguments as objectively as possible and update their beliefs accordingly. This analysis starts with a good knowledge of critical thinking skills. We will have information on critical thinking skills at a later time.

Here is another way to think about it, Maybe rather than you trying to persuade someone else of your opinion, maybe you may need someone else to persuade you.

Do you consistently question yourself about your opinions and biases? And let others know you are willing to listen to their arguments and views?

At Harbor Capital Group, we help entrepreneurs turn ideas into businesses.

Prepare To Deal With New Regulations On Privacy Protection

Posted on January 10, 2020 by harborcapitalgroupinc

Starting on January 1, Americans – or at least 40 millions of them living in California – now have a comprehensive online privacy protection law in place called CCPA (California Consumer Privacy Act). Just like it’s European General Data Protection Regulation (GDPR) counterpart, which was passed in 2018. CCPA will eventually extend far beyond the State of California and reach the entire nation.

Professionals and experts believe the odds are pretty strong that CCPA will be the foundation of privacy regulations in many other states or even U.S. federal online privacy law.

CCPA has established much stronger rights for Californians concerning their online data. For example, California residents now have the power to order any company NOT to SELL their data to any third-party for any purpose without their consent. Californian consumers can also ask just about every company that has collected their data and anybody else with which the company has shared it, to delete the information from the company’s record.

What Can a Business Do?

Under the newly enforced regulation, Californian consumers are entitled to know the categories of information that companies have collected and able to see any specific bits of the data, such as postal address and browsing history. Although CCPA is meant for consumers residing in the state of California, most companies will find it difficult to pinpoint the exact location of every single consumer. It is just the nature of the Internet that no one knows where a user is. Some businesses will have to apply CCPA across the board simply because they cannot effectively distinguish between Californian consumers and those from other states.

Another thing to consider is that Californian consumers have the right to take legal action for unlawful use of their online data in any form, so failure to comply may lead to disastrous consequences on companies’ part. CCPA applies to any for-profit entity which does business in California, collects consumers’ data, and meets any of the following thresholds:

Generates an annual gross revenue of more than $25 million

Trades (buys or sells) personal information of at least 50,000 consumers or households, or

Earns more than 50% of annual revenue from selling consumers’ data

The thresholds may appear to target medium-to-large-sized companies, but many small businesses and even startups can quickly meet one or more of the limits. But then again, this is not the end of the world. Online data privacy regulation has always been a hot topic over the years, and CCPA is the logical first step into the culmination of the discussion. There are several things businesses can do to ensure compliance without sacrificing profitability.

Read the fine print

Unless you have an executive team to do it for you, it is always best to try and understand CCPA yourself. This way, you can make notes of the things you don’t fully comprehend so that you can ask the more experienced legal professional for help later. While you’re at it, pay attention to the following rights granted to Californian consumers:

the rights to know what personal information is collected about them
the rights to know whether the personal information is being sold or disclosed to any third-party and who the party third is
the rights to decline the sale of personal information
the rights to access the personal information
the rights to receive equal price and services, regardless of how they exercise their privacy rights

And in the case of loss of personal information due to theft or other causes, California consumers have the right to seek damages.

Understand what personal information your business collects

As obvious as it may seem, many companies are not fully aware of the kinds of personal data their own businesses collect from consumers. Some probably don’t know that their businesses collect data at all. This is most often seen in startups where the focus is mainly on growing the business. Privacy regulation is likely considered an obstacle in growth, but now they cannot just ignore CCPA for the consequences can be severe.

Have your business partners read the law too

If you run a reasonably sized company, chances are you have multiple employees (or departments) to handle various tasks from bookkeeping to marketing, from networking to customer service. To properly implement CCPA and ensure compliance, make sure everyone in the company also reads the bill. Your officers, executives, and legal teams should understand the law better than anybody. Know the potential risk and craft a plan to avoid penalties.

You can read the full text here.

Privacy policy and regulation have the reputation of being the dark sides of business conduct. The reality is that many companies most likely takes advantage of personal consumer data for marketing or downright additional revenue by selling the information to third-party entities such as advertisers. CCPA is trying to get rid of the murkiness and provide a clear path for both companies and consumers to play it fair and square.

Recognize And Adapt To Your Stage Of Business

Posted on January 10, 2020 by harborcapitalgroupinc

Recognizing the growth patterns of small businesses and the peculiar set of challenges presented by every stage of development are indispensable for every budding entrepreneur who often seems to get lost in the process of penetrating the market. Businesses, especially small-scale ones, are in constant growth. They start with just a few employees and a very limited range of objectives, but they all have the potential to embark on major expansion with properly crafted and well-executed action plans. While all small businesses are unique in terms of organizational structure, strategy, and managerial style, they have one thing in common: they experience or follow the same set of growth patterns.

A business does not simply come into existence and become profitable overnight. Businesses have to go through a sequence of developmental steps and overcome all the challenges that every step creates. Believe it or not, the same pattern applies to every company including startup with just a handful of employees to the multi-million dollar software developers.

The similarity of the growth pattern makes it easier for startup founders to understand the opportunity and obstacles ahead of time, and create an effective plan in accordance with market conditions, so they can survive and thrive in the long run.

Such an understanding is the foundation for business owners to devise a creative plan that ensures the efficient use of available resources.

Growth Pattern

Various studies have attempted to come up with a definitive model to examine the growth of a small business, but the most commonly used pattern is as follows.

Planning

At this very early stage, the business to be established must answer these questions:

Does the idea (of goods or services) fill a need in the market?
Will the company make a profit?
How will people react to the product idea?
What is the right business model for this business?

The “initial” plan is just that: initial. You cannot stick to that same plan over the years and expect steady growth. The key to a successful startup is adaptability, meaning the business plan must change in accordance with current market conditions and consumers’ demands. Every single part of the action plan must be under constant review and ready for quick adjustment. Many times the plan also includes a requirement for outside investment.

Establishment

The next growth stage is Establishment, in which the business is starting to take shape, and therefore a change of plan is most likely necessary. A small business undergoes a massive difference at this stage because the initial plan can no longer sustain growth. Some of the most common challenges include:

Seeking outside investment because the actual budget exceeds the allocated amount
Hiring more employees to support day-to-day operation, which also adds more expense
Establishing market presence and customer base
Ensuring a balance between cash reserves, expenditures, and sales
Determining more appropriate management styles due to market demands

In the establishment stage, the most important thing to achieve is sustainable operating procedures with risk management.

Early Growth

A significant milestone in building a business is the ability to gain steady cash flow from the customer base. It is a sign that the production and delivery of goods and services are well-managed. At this point, small businesses have overcome all the difficulties endured during the earlier stages of growth and are in the process of generating revenue. As profit starts to come through the door; however, competition is catching up and bringing some new challenges:

Fulfilling the demands of an increasing number of customers
Streamlining company operation to minimize operational cost
Keeping up with competitors
Increasing the volume of cash reserves

During the Early Growth stage, the deciding factor is whether the company can recognize the key profit driver and optimize its impact on the business itself.

Profitability

With more reliable distribution channels and effective marketing strategy in place, small business has earned its place in the market despite fierce competition and makes money. Being profitable is a sign that the business is moving toward the expansion process. Naturally, the company is seeking to:

Stay ahead of competitors
Acquire competitors whenever possible
Expand the business sectors
Increase the volume of production

Many small business owners think that Profitability is the final stage, and they are not entirely wrong. After all, the purpose of building a business is to earn a profit. However, complacency at this stage often leads to a decline, mostly because the competitors can afford to stay creative. There is always room for improvement, for example, employee engagement, customer satisfaction, brand image, and collaborations with partners.

Revitalization

Also often referred to as the maturity stage, Revitalization is the beginning of a process where the business must think about new and improved products or services or an effective exit strategy. As you know, the market is always changing; your goods and services need to stay relevant if you want to stay in business. Go back to the drawing board and craft a new plan to support and encourage innovations. But this time it will be easier because you have reliable financial resources to get the job done.

How to stay focused on your key objectives

Posted on October 6, 2019 by harborcapitalgroupinc

This article will cover a brief overview of the OKR (Objective and Key Result). All companies, including nonprofit organizations, are goal-oriented, purpose-driven, and yearning for accomplishments. Regardless of size and industry, however, they all operate with a limited amount of resources.

It doesn’t matter whether you run a startup or a company worth billions of dollars; you always need an effective goal-setting and measurement process. This is where OKR comes in.

What is OKR?

In simple words, OKR (Objective Key Result) is a framework used for setting strategies and defining goals to be achieved within a specified amount of time. At the end of the specified period, OKR provides a reference on how well the individual or company has performed in executing strategies and achieving the goals. As the name suggests, there are only two significant points:

Objectives: these are the goals you hope to accomplish within a specified time. At Google, for example, the results (goal plus where you are in completing the process) are on a dashboard for the entire company to see. OKRs help the whole company stay on schedule and give the company time to adapt if they are not on the schedule.

Key Results: think of key results as indicators of or pathways to achievement. Commonly the indicators are written in numbers, for example, percentage, time, reference, or monetary value. Numerically-based objectives or expectations are often easier to measure, as well. For example, the Objective is to (specific goal) by (date).

Not every key result is quantitative or indicated in numbers. Instead of using numbers to track progress, you can use a qualitative (milestone) method. Every milestone represents a specific challenge or a portion of the larger initiative. Each milestone met means a step closer to the objective. For example, step one (25% of tasks required) completed (date) as scheduled and currently on track to achieve the overall goal as expected.

The maximum a person should have is four to five significant objectives. Four meaningful goals and four tasks to each means focusing on sixteen tasks.

Why use OKR?

To make sure that every individual and team in a company is on the same page, OKR must be widely distributed and easily understood. OKR is crucial because it acts as a management and communications framework.

Key results, ether quantitative or milestone-based, are measurable values used as the foundation to determine overall performance. Key results are indicators that mark both the easiest and hardest parts of an initiative. This way, the company can define the right strategy to focus on and the most immediate challenges by diverting or allocating more resources accordingly without compromising workflow in progress.

Main benefits of OKR

In addition to measuring success, OKR opens the door to better utilization of resources. As simple as it may sound, this is a complicated process; yet when done correctly, it promises a wide range of benefits including but not limited to:

Effective employees: well-communicated objectives and key results allow the companies to focus on the most important task at any given time. The sense of achievement with every milestone met is also a strong motivation to keep on moving forward as employees realize that they are closer toward project completion.

Better planning: based on current achievements and remaining resources available, a company can craft strategies and execute all elements in more efficient ways. OKR gives a good understanding of the company’s situation and performance.

Manageable execution of strategies: the key idea here is prioritization. OKR helps a company to recognize any weak points in the planning or performance that will hinder progress and the completion of the objective itself. The company can then prioritize resources to address the identified shortcomings.

The idea behind OKR is to manage and measure success. Because some objectives can be too difficult to achieve, given a limited amount of time and resources, a generalized statement of success or failure is not good enough. OKR gives a clear overview of how far or close you are to achieving goals and foretells possible difficulties to come.

Here is an example of how to use OKR. T.J.Rogers, CEO of Cypress Semiconductor, who, through a dashboard, reviewed each person’s status daily. If an employee were behind in reaching his goals, he would call the person and ask,” how can I help.” He assumed they would have completed the task unless there was an obstacle holding him/her up. That’s a positive management tool and a positive approach to team members.