Fourth Quarter Issue |FEB 2014 -APR 2015GLOBAL ENTREPRENEURSHIP WEEK EDITION

Successful Business P L A N N I N G

Successful

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STAFF ADVISORS:

Editor-In-Chief & Content CoordinatorKeneshia Nooks – JBDC Corporate Communications Unit

Design & LayoutMelissa Green – JBDC Visual Communications Unit

PhotographyColin Porter – Technical Services Unit

Assistant Content CoordinatorSancia Campbell – JBDC Corporate Communications Unit

Mr. Antonio VouranisChief Technical Advisor

Mr. Harold DavisDept. Chief Executive Officer

Ms. Valerie Veira, J.P.Chief Executive Officer

Successful Business Planning

Business & InnovationFacilitating Successful Small Businesses

Do you really need a business plan?

5 Steps to a successful business launch

Mobile Business Clinic Highlights

JBDC pilots implementation of US SBDC model

FinanceWhy is a business plan necessary for the loan process?

Culture and Channelling Corporate Behaviour – is the bottom line with the Boardroom?

TechnologyHow to create multimedia business proposals

Mobile Business Clinic Highlights

13

Keneshia Nooks is the Corporate Communications Manager at the Jamaica Business Development Corporation (JBDC), she has over 11 years experience in various marketing and communication techniques including advertising, media production, brand development, public relations, social marketing, market research and sponsorship. She has also coordinated publicity initiatives in the Caribbean, Europe and the United States for international music sensation OMI and Italian Reggae Singer, Alborosie.

Sancia Campbell is a PR Practitioner in the business and hospitality sectors with over 13 years experience in marketing, publicity and communications. An excellent writer and avid lifestyle blogger, Sancia enjoys reading, project management and events planning. She is currently the PR & Events Coordinator at the Jamaica Business Development Corporation (JBDC).

Marie Elizabeth Casserly, a graduate of UWI and the Jamaican Institute of Management, is a business and project development professional, specializing in branding, product development and marketing. Her career which spans some 30 years, includes close to a decade in management in the Jamaican private sector, she has focused primarily on the growth and development of enterprises, especially in the creative industries which she is extremely passionate.

Tax Adminstration JamaicaDevelopment Bank of Jamaica

ACCA Caribbean

Successful business planning

I am very excited to greet you in this the �nal issue of our Business Dialogue Magazine for the �scal year 2014/2015.

It has indeed been a busy but exciting period for the JBDC team and no doubt for entrepreneurs all across Jamaica. As you may recall, JBDC launched the Ministry led, Mobile Business Clinic Initiative in September 2014. The purpose of this initiative is to decentralize business development support to micro and small businesses across the length and breadth of Jamaica.

So far just about 1000 micro and small entrepreneurs have been impacted by the services o�ered by our public and private sector partners. The initiative has been to St. James/Trelawny, Westmoreland, Hanover and Manchester. The clinic is scheduled to visit St. Elizabeth, Clarendon, St. Ann/St. Mary, St. Catherine, St. Thomas and Kingston and St. Andrew, respectively over the next few months.

Having been on the road for the past few months, one of things that have been forcefully brought home to us is the importance of business planning. We have learnt that one of the main reasons why businesses, in particu-lar, micro businesses fail is lack of proper business planning. The focus therefore of this issue of the Business Dialogue is therefore on this.

Business planning is one of the most critical skills that every entrepreneur should acquire. It is important to note that a business plan is di�erent from business planning. A business plan is is a guide—a roadmap for your business that outlines goals and details how you plan to achieve those goals while business planning refers to execution and the processes involved in executing that plan.

We have zoned in on issues such as; the importance of a business plan, steps to successfully launching a business and facilitating small business success. We also look at the success of serial entrepreneur; Wayne Gallimore.

Importantly, the JBDC’s 8th Annual Small Business Exposition and Conference takes place on May 21, 2015 at the Jamaica Pegasus Hotel. Under the theme “Business Linkages: Connecting Jamaica to the World”, the event promises to once again provide a platform for micro and small businesses to gain important business contacts as well as assist entrepreneurs with the necessary skills and processes to regularize their existing business functions.

For the �rst time, we will introduce a featured dubbed “The Matchmaker” to the Expo. The purpose of this activity is to match local buyers to suppliers with a view to securing future business as well as to progress the Buy Jamaican campaign.

Several speakers, both local and international will also be on hand to discuss important issues a�ecting our client group. The JBDC team, our sponsors and exhibitors look forward to your continued support in the e�ort to build successful businesses.

Best, Valerie Veira, J.P.Chief Executive O�cer

Althea West-Myers is a development strategist. She has spent the last seven years researching and adapting global strategies to our Jamaican business environment. Her work at JBDC involves �nding innovative ways to assist MSMEs negotiate the variabilities of the sector in order to secure growth at the micro and macro levels. She is an adjunct lecturer in Entrepreneurship, Business Principles and Management, and Organizational Behaviour at Vector Technology Institute.

24

BUSINESS & INNOVATION

5

Across the globe, and particularly in developing and transition economies,

the Micro Small and Medium Enterprise (MSME) sector has been hailed as

the primary vehicle of poverty eradication and the engine of economic

growth. This critical role that the MSME sector will need to play in bringing

developing countries to the stage of global competitiveness has been

much documented, both in mainstream literature and in scholarly articles

on the subject. In addition, there is growing evidence to suggest a causal

relationship between entrepreneurship, economic growth and poverty

reduction. It is not surprising, therefore, that the establishment and

promotion of the MSME sector has assumed strategic importance across

the world, and especially so in emerging and developing economies.

The Global Entrepreneurial Monitor’s (2011) citing of Jamaica as the

country with the third highest level of early stage entrepreneurial activity is

important for at least two reasons: (i) it provides empirical evidence of

Jamaicans’ natural inclination towards entrepreneurship (ii) it highlights

the fact that Jamaica’s prevalence rate (businesses that have paid

wages for more than forty-two months) has remained constant at one per

cent for several years. Juxtaposed against each other, the two points

paint a curious picture. On the one hand, our people are naturally

entrepreneurial, but on the other this natural penchant does not translate

into sustainable businesses.

Any attempt to answer the questions which obviously arise must consider

the following factors:

(i) Despite our good showing in the global entrepreneurship monitor (GEM)

report, Jamaican entrepreneurs have been shown to be primarily

necessity driven rather than opportunity driven

(ii) In the global age of the ‘knowledge’ entrepreneur, studies have shown

that levels of awareness amongst Jamaican MSMEs (whether this be

about management practices, product development or simply

awareness of the amenities that are available to be used to their

advantage) are extremely low.

(iii) High levels of informality (especially among MSMEs) and low

productivity levels plague the sector.

Obviously, Jamaica’s ability to reap the fruits of its high levels of

entrepreneurial activity has been severely impacted by its large informal

economy. As yet, we have not as a nation been able to effectively bridge

the gap between the formal and informal economies. With current

estimates putting the informal economy at over forty per cent of the

sector, two things become clear: Jamaica must leverage its people’s

pre-disposition to entrepreneurship, create formal enterprises, and make

Facilitating successful small businesses: JBDC’s framework for MSME institutional support

By Althea West-Myers

them globally competitive; and sustainable business development

methodologies are a national imperative.

As the government’s agency with the mandate to facilitate and support

small business development, the Jamaica Business Development

Corporation (JBDC) has made its mission congruent to the development

policies that foster sustainable modernization and growth in the

productive sector, effect modernization of the business environment and

pursue cost-effective delivery of technical and marketing services. With a

business development model that is comparatively superior to many

utilized in other jurisdictions, the JBDC has the capacity to assist the sector

in realizing its full potential of driving the Jamaican economy. However,

Jamaica’s position as a transitioning economy, perched precariously

between the global demands of the new knowledge economy on the

one hand, and the wide-ranging diversities and complexities of the MSME

sector, on the other, only increases the challenge for the JBDC. The

agency is therefore faced with the task of finding strategies to counteract

the potentially attenuating effect of these challenges on its mission of

MSME business development.

Rising to these challenges has meant that the JBDC has had to leverage

its familiarity with the peculiarities of the Jamaican culture, its knowledge

of business development models used across the globe, the lessons learnt

in respect to model adaptation and its own expertise as business

development practitioners to adapt and craft a business development

model that has been extremely effective. This involves recognition that

sustainable development of MSMEs requires a cross-cutting strategy that

touches many areas. For example, government’s ability to implement

sound macro-economic policies, the capability of stakeholders to

develop a conducive macro-economic business environment through

simplified legal and regulatory frameworks, good governance, abundant

and accessible financing, suitable infrastructure, supportive education

systems as well as capable public and private institutions that enhance

the ability of MSMEs to implement competitive operating practices and

business strategies.

In order to meet all the needs of the sector, development support has to

be four-pronged. It must include business, technical, specialized

marketing and financial support. Because of the sector’s variability,

development support must be capable of guiding the entrepreneur

through the sometimes precarious phases of growth, from concept to

market. This is the predication on which the JBDC has successfully built its

business development model.

BUSINESS & INNOVATIONFacilitating successful small businesses:

JBDC’s framework for MSME institutional support CONTINUED

Crucial to successful strategy implementation is a responsive policy

framework, and whilst this is being addressed through the MSME policy

document, the JBDC has been at work engaging the private and

public sectors in creating an environment conducive to MSME business

development. The results of these efforts have underscored the value

of building networking relationships as a means of creating impact for

small businesses. Through partnerships with major universities,

multi-lateral agencies, government agencies, chambers of

commerce, private consultancies and big businesses, the JBDC has

been effective in seeking to change the profile of the Jamaican

entrepreneur; increasing the size of its audience, securing funding,

extending the reach and impact of its clients, and generally increasing

its own impact and visibility.

It is this platform of networking success that has propelled JBDC into the

fore-front of the effort to create industry networks and clusters among

small businesses as a means of helping them to secure needed

economies of scale and scope. The methodology has worked to

increase competitiveness among individuals and within industries alike

and continues to work to attract funding to these sectors. However,

while much has been accomplished, much is still ‘a work in progress’.

The Corporation remains focused on convincing potential stakeholders

of the viability of some ‘un-proven’ methods. One such is the

simultaneous provision of financial and non-financial services. Many

have argued against it, but convincing evidence suggests that the

existing framework of non-financial support is having benefit in

un-locking capital and working to create a more secure credit

environment.

As national small business network brokers and business development

practitioners, the JBDC is fully cognizant of the global context in which

we operate and measures being undertaken by other (similar)

transition economies. The business development strategies being led

by the JBDC are similar (and superior in some contexts) to those being

undertaken by other developing and developed nations. Sustainable

development requires that emerging economies like Jamaica ensure

the MSME policies that have been used most successfully across the

globe are adapted to the peculiarities of our culture and business

environment, inculcated, integrated into the delivery of business

development services and a cohesive strategic plan of action set up

to create an environment conducive to the long-term growth and

development of the MSME sector in the country. Indeed, the JBDC has

shown that it is equal to the task.

BD: What would be your 7 most important tips to share with aspiring/budding

entrepreneurs - your Super Seven?

WG:

1. Get a very good understanding of the market you want to enter.

2. Learn strategic planning, governance and sales skills.

3. Hire or partner with a brilliant and complementary team making sure you

have the needed knowledge and execution ability.

4. Put your customers’ needs first and build trusting relationships with all

stakeholders.

5. Discipline and focus are critical.

6. Know your numbers.

7. Provide great value.

Since his initial start-up in 1986, Wayne has been responsible for starting a series

of new businesses covering a range of industries. This ICT maverick possesses

intrepid sales skills and a passion to start the next “Big Thing”. After CCL, he

started Today’s Office Products, which had a similar focus to his initial start-up,

and shortly afterwards married his passion for collecting Jamaican art with his

technology know-how, to take Jamaican art to the world with Jamagination

Limited. The company established licensing arrangements with Jamaican

artists to produce giclees (prints on canvas) of select works, increasing their

visibility and distribution while creating a market niche for more affordable

Jamaican art. Alongside Jamagination was Magnets & Things Jamaica

Limited, which was the first company in Jamaica to manufacture full colour,

photo quality refrigerator magnets and stickers. The company secured rights

from the likes of Bob Marley Foundation, Red Stripe, photographer Ray Chen

and Waves to use their IP/images. Magnets and Things (M&T) produced

novelties that were targeted primarily towards tourists but also created

advertising speciality items for corporate use. Wayne shared that their secret

process, at that time, allowed M&T to produce even low volume runs at highly

economical prices. In addition to starting Southwind Trading Jamaica Limited,

a company which distributed wines from South America, the entrepreneur

co-founded DPK Business Solutions Limited, an Interactive Voice

Response-based (censored) Match-Making System which operated in

collaboration with the Gleaner, Digicel and Cable and Wireless (now LIME).

Wayne Gallimore, the consummate entrepreneur is currently a co-partner in

two businesses which he co-founded: Durastone Jamaica Limited in

Manchester manufacturing building finishes and Eco-san Caribbean in

Kingston, producing green and environmentally friendly cleaning solutions,

waste water treatments and insecticides. Business Dialogue will make sure to

keep you posted on his next move!Continued on pg. 21

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SPOTLIGHTTHE INSIDE THE MIND OF A SERIAL

ENTREPRENEUR: A CONVERSATION

By Marie Elizabeth Casserly

Wayne Gallimore, born in Jamaica, left his island home with his parents and

three sisters for Canada at the age of nine. He completed his primary and

secondary education there and on the attainment of his degree from York

University returned to Jamaica in 1984 to find employment. In short order he

became a business owner and a serial entrepreneur and in the midst of this

secured a Masters Degree in Psychology from the Caribbean Graduate School

of Theology.

He shares his story and a few insights with Business Dialogue.

BD: What made you become an entrepreneur?

WG: I learned at age nine that I had the power to earn more than the "pocket

money" my parents gave me by getting a paper route in an apartment building

near to my home in Toronto. In my early teens and into my early 20s, while still in

Toronto and living with my parents, I progressively sought more and more

financial independence from them. Hence I bought and resold Christmas cards,

I rented a “Simonizer” and waxed my neighbours’ cars, cut lawns, painted

homes, bought and resold bicycles, motor bikes and cars. I did this while also

working summers and part-time during high school and while pursuing my

undergraduate studies. I never really developed the desire, or expectation of

myself, to be a long-term employee.

BD: How did you decide which business you would start?

WG: From perceived opportunities. For instance, problems begging to be solved

or identifiable gaps in the market that are compatible with my values and fit with

my interests or expertise.

BD: What was your first deal or business?

WG: After moving back to Jamaica and working for 2 years, my first registered

business was Computer Components (Jamaica) Limited (CCL). It was formed in

December 1986 and I believe it was the first wholesaler per se of computer

equipment, parts and supplies in Jamaica.

BD: How do you keep motivated?

WG: I love to creatively solve problems, make customers happy, negotiate

deals, sell and innovate. I also enjoy the process and challenges from

conception of the business idea to start up.

BD: How do you deal with the risk?

WG: As best as possible I try to identify it and assess it. If it is beyond my comfort

level I try to consider all possible ways to reduce or mitigate it. If I can't, then I

take a pass.

BD: ...and failure?

WG: I am always seeking to learn and grow. So when I fall I pick myself up, brush

my tail off, consider the lesson learned from the experience, which usually

includes good that should be repeated and bad that should be eliminated.

BD: How do you stay ahead of the competition especially in a challenging

economy?

WG: By making the effort to figure out how to be of the greatest value to my

customers, as times and their needs change.

BD: Do/did you have any role models and mentors?

WG: My godfather Rev. Dr. Alton A. Davis (now deceased) who among other

things was an entrepreneur, inventor, business consultant, educator, historian

and philanthropist. I also try to learn from the strengths of people whom I

encounter on a daily basis.

BD: What can't you live without when you face your business each day? What

are your essentials?

WG: The hope and trust in God derived from my Christian faith; and integrity in

my relationships with God, self and others.

BD: Knowing yourself as both a business manager and an entrepreneur, what

would you say are the key attributes which distinguish these roles?

WG: Being a good business manager involves the competent execution of

functions important to the successful operation of a business. Being an

entrepreneur requires these abilities and more. Entrepreneurs must have an idea

or a vision, strong (pioneering) leadership, a risk taking propensity and the ability

to figure things out and make things happen... without a boss directing them to

do them. Good advisers and a great team however are essential to

entrepreneurial success.

Wayne Gallimore, Jamaican Entrepreneur at a Caribbean Week event in Toronto, promoting Jamagination

Successful business planning

I am very excited to greet you in this the �nal issue of our Business Dialogue Magazine for the �scal year 2014/2015.

It has indeed been a busy but exciting period for the JBDC team and no doubt for entrepreneurs all across Jamaica. As you may recall, JBDC launched the Ministry led, Mobile Business Clinic Initiative in September 2014. The purpose of this initiative is to decentralize business development support to micro and small businesses across the length and breadth of Jamaica.

So far just about 1000 micro and small entrepreneurs have been impacted by the services o�ered by our public and private sector partners. The initiative has been to St. James/Trelawny, Westmoreland, Hanover and Manchester. The clinic is scheduled to visit St. Elizabeth, Clarendon, St. Ann/St. Mary, St. Catherine, St. Thomas and Kingston and St. Andrew, respectively over the next few months.

Having been on the road for the past few months, one of things that have been forcefully brought home to us is the importance of business planning. We have learnt that one of the main reasons why businesses, in particu-lar, micro businesses fail is lack of proper business planning. The focus therefore of this issue of the Business Dialogue is therefore on this.

Business planning is one of the most critical skills that every entrepreneur should acquire. It is important to note that a business plan is di�erent from business planning. A business plan is is a guide—a roadmap for your business that outlines goals and details how you plan to achieve those goals while business planning refers to execution and the processes involved in executing that plan.

We have zoned in on issues such as; the importance of a business plan, steps to successfully launching a business and facilitating small business success. We also look at the success of serial entrepreneur; Wayne Gallimore.

Importantly, the JBDC’s 8th Annual Small Business Exposition and Conference takes place on May 21, 2015 at the Jamaica Pegasus Hotel. Under the theme “Business Linkages: Connecting Jamaica to the World”, the event promises to once again provide a platform for micro and small businesses to gain important business contacts as well as assist entrepreneurs with the necessary skills and processes to regularize their existing business functions.

For the �rst time, we will introduce a featured dubbed “The Matchmaker” to the Expo. The purpose of this activity is to match local buyers to suppliers with a view to securing future business as well as to progress the Buy Jamaican campaign.

Several speakers, both local and international will also be on hand to discuss important issues a�ecting our client group. The JBDC team, our sponsors and exhibitors look forward to your continued support in the e�ort to build successful businesses.

Best, Valerie Veira, J.P.Chief Executive O�cer

7

BUSINESS & INNOVATION

Business planning is an integral part of the theory and practice of business.

There is no MBA program or entrepreneurial course available that does not

include business planning as a component. Even students at the CSEC level are

exposed to and required to learn the elements of business planning. The virtues

of this business process have long been espoused and many agree they

remain valid today, however in recent years there has been questioning of the

necessity of the process in the ‘real world’. The discussion involves participants

from academia to the shop floor and the debate is ongoing: do you really

need a business plan?

Many successful entrepreneurs have been said to start their businesses without

a formal business plan. In fact, one study done in 2006 by William Bygrave of

Babson College found that there was no difference in the success rate for

Babson Business School graduates who started a business with a business plan

and those who started without one. But before concluding that a business plan

is a complete waste of time let us take a look at some of the benefits of

engaging the process.

From the perspective of one offering business development support to

entrepreneurs on a daily basis, I have the benefit of a dynamic view point. The

most common reason individuals approach us at the Jamaica Business

Development Corporation (JBDC) to develop and document a business plan,

is to seek funding for a new or existing venture. The next reason is usually to help

the entrepreneur develop a strategy for executing their business idea. Of the

two motives, the latter is more significant, though not always immediately

appreciated by those with the former. It is a better motive not only because it

meets both objectives, (to access funding and guide implementation) but it is

the motive more likely to have the entrepreneur’s full involvement in the

process.

And why is that important? Well, many of those business plans that are written

specifically to seek investment never even get read by the owners whose

business they were prepared for. The document gets shelved or filed away as

soon as funds are secured. This is unfortunate because the successfully drafted

plan satisfies the investor that the owners have a feasible idea with good

strategies to support its implementation but the entrepreneur may only be

superficially aware of the contents therein. Thus, they are unable to use it as a

guide for the business, and this could result in inauspicious consequences. This

does not mean that the business plan guarantees success but there is

significant value to be had from engaging in the process.

Do you really need aBy Keera Walters

The first benefit to documenting plans for your business is that it immediately

releases processing space by getting your ideas out of your head and in black

and white. Secondly, it forces you to think through your ideas in detail. When

you ink it, you can critically assess each idea, ensuring that the why’s, and

how’s are answered.

Other reasons are:

• It helps you to create a vision for your business; a roadmap for your aspirations

• It forces you to set goals which can be used to measure your progress

periodically

• It forces you to look at how you will get things done from operations to goal

attainment strategies

• It helps you identify needed resources and allows you to scale your plans

appropriately

• It requires you to become an expert in your business as well as the industry you

operate in, through the process of studying your customers, competitors,

suppliers etc

• It helps you to identify and prepare for opportunities and mitigate threats

before they arise

• Reduces real time decision making because though you cannot plan for

every possibility, just having a plan creates a guide for how to navigate your

environment.

The study done by Bygrave also found that just understanding the process of

business planning increased the likelihood that a person would actually start a

business, even if a plan was not documented. At JBDC, clients are fully

engaged in drafting their business plans and they are usually surprised at the

level of insight gained from the process. So from my experience, I would

conclude that business planning is a necessity. Even if you start off without a

written document, having an understanding of the pillars for any business’

success such as, markets, operations and finance will guide your preparation

for the business. Also, a written document becomes essential as you grow and

look towards expansion; especially with access to funding being identified as

the most common challenge facing Jamaican entrepreneurs, the need for a

plan is even more essential.

Though the plan is definitely a ‘must do’ the trend today is towards simple,

succinct plans that are strategically sound, yet easy to read. I strongly

recommend that each entrepreneur go through the process of writing his/her

business plan, even in rough draft before taking it to an expert for formal

construction. It will be worth your while.

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BUSINESS & INNOVATIONAny good business idea should originate from an equally

good business plan. The concept of the business plan is

that it should give a full description of the business,

outline the features, attributes and benefits of the

product or products it is offering, identify and analyze

the target market and the accompanying promotional

plans to reach this market as well as the financial

requirements for both start-up and future growth of the

business.

Now, there are those ‘entrepreneurs’ who will try to diminish the importance of

the business plan by pointing to their ability to start and maintain a business over

a period, however, without that roadmap providing a sense of direction,

outlining achievable goals and some type of vision, the business may record very

little growth. Importantly, a solid business plan does not guarantee success but

for entrepreneurs with lucrative ideas, it can boost the odds.

There are seven major elements of a business plan: executive summary, market

analysis, company overview, organizational and management plan, marketing

and sales strategies, service or product line and the financials.

Executive SummaryThe executive summary should tell the reader exactly what you want. It should

be kept short and professional, similar to the summary of a loan application.

Within that space, a synopsis of the entire business plan should be provided.

Other key elements to be included are the business concept, financial

requirements, the current business position and the major achievements of the

business to date.

Market AnalysisThis section should illustrate knowledge about the particular industry of your

business. A market analysis forces the entrepreneur to become familiar with all

aspects of the market so that the target market can be defined and the

company can be positioned in order to collect its share of sales. A market

analysis also enables the entrepreneur to establish pricing, distribution and

marketing strategies that will allow the company to become profitable within a

competitive environment. In addition, it gives an indication of the growth

potential within the industry. Begin the market analysis by defining the market in

terms of size, structure, growth prospects, trends and sales potential.

Company DescriptionThis section describes the nature of the business and lists the needs that are to

be satisfied. It further explains how the products and services to be provided will

meet consumer needs. The company description also lists the specific

consumers, organizations and businesses that the business will serve and

Elements of a successful business plan By Sancia Campbell

explains the competitive advantages that will make

the business a success. These include elements such

as location, expert personnel, efficient operations and

the ability to bring value to customers.

Organizational & Management PlanThe organizational and management structure in a

business plan covers several areas. It must include the

location of the organization and describe the area in

which it operates i.e. home country versus international

locations. The plan must also introduce a structure of

your organization, present professional experience and achievements of

people who are to manage the business. An employment plan for the next few

years must also be presented. This should cover:

- How many people are to be hired?

- What are the skills sets being sought?

- In what capacity will these persons be hired?

- Where had the members of the team worked previously?

- How much experience in this or other industry do your colleagues have?

- Is their previous experience relevant to your business/industry?

Marketing & Sales StrategiesThis element is the life of your business. Marketing creates customers and

customers generate sales. In this section, define your marketing strategies. Start

with strategies, tactics and channels that you have used to create your greatest

successes. Next, branch out to others that may be working for your competitors.

Remember that this section will be constantly updated based on your results.

Product or ServiceThe product or service your business will provide should be defined as best as

possible. Ensure that you highlight the features, attributes and benefits of this

product or service. Establish your unique selling proposition (USP). This means

you have to show not only how your product is different but also why it is better.

FinancialsThe placement of this element in no way negates its importance. In fact without

financing, a business remains just an idea. The financial plan must indicate how

the business will be capitalized, whether it is through self-funding or commercial

loans. Clearly state the amount of funding required for starting and expanding

the business. Very importantly, be realistic.

The most important note however, is that the business plan is meant to be

revised periodically. Writing it once and placing it in a file does nothing for the

business. Rework and rewrite the plan to ensure the growth and continued

development of your business.

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19

TECHNOLOGY

Driving broadband rates down by almost 75 per cent remains a “signi�cant” achievement of Columbus Communications since it began operating in Jamaica and the wider Caribbean 10 years ago.

It is one of several feats that have brought a brought smile to the face of Acting Managing Director of Columbus Communications Grant Hume, in an interview with CBS Times.

Hume, whose substantive role is Vice President for Sales at Columbus Business Solutions, also highlighted the improvement of speeds, as another major game changer in the telecommunications business inspired by the coming of Columbus Communications.

These achievements, he said, disrupted the marketplace to the bene�t of the consumer, bringing balance by making the other companies to do better.

“Iron sharpens iron,” he stressed in putting forward his favourite maxim. “The existing players had to improve. Columbus is nimble, we are �exible, and we understand the customer and our competitors had better get their running shoes on.”

Canadian Hume, a sales person by training, has extensive experience working overseas, including spending 18 years at world famous Xerox Corporation.

He insists that Columbus will be better arising from the merger with LIME, as the company will be able to provide a wider breadth of service.

“The holy grail of all telecommunications companies is quad play and we will be delivering that post integration. We have �bre regionally, and here in Jamaica we will o�er more that mixes both our companies’ o�erings into a single solution. This will give consumers and businesses – one place to access all your telecommunications needs and one place to obtain the best service and support.

“The secret sauce for us is the mixture of the expertise of our employees and their love for this company. Most of our employees have seen this company grow within the last 10 years and they have been here through and contributed to that growth.”

“If you look at the other organisations and the history of the ICT marketplace, not just in Jamaica, but in the Caribbean and Latin America, the focus on customers is paramount. Under the new combined company we are going to continue to make that a critical area of focus. Everything we are going to do will have the customer in mind… the new organisation is wired, designed for the best customer experience, residentially and commercially in Jamaica and the Caribbean,” he said of the upcoming merger between Columbus and LIME.

Emphasizing that there will be a major push for improving customer service in coming days, Hume underlined that this move is one that

Acting Columbus boss targets even better customer service BY TANIKIE McCLARTHY

CBS Times writer

has him “most excited.”

Customer service will only get better with the upcoming merger, which principals of the two organisations say should become reality within another month. Of the companies providing utilities to the public, LIME was rated number one for its customer service recently, while Columbus grabbed the number two spot. The survey was conducted by regulatory agency, the O�ce of Utilities Regulation.

“It’s signi�cant that the top two companies in customer service are now being united,” Hume said.

As for jitters and anxiety that may have crept in as the merger approaches, Hume praised the Columbus sta� for how they have faced the situation.

“Anytime you go through an integration of two large organisations in is almost impossible to do so without impacting the sta�. Our Team here at Columbus Communications Jamaica is going through this process with dignity and grace in the face of uncertainty which comes from the fact that we still have to work in a regulatory environment where the companies are operated separately and much of the pertinent details of the merger/integration cannot be shared. Our team members understand this and I can honestly say that we have not been able to share as much as we would like so that our Team members are as informed as they would like.

“Considering that, I think our employees have held their heads up and focused on our customers better than anybody in any previous integration I have been part of. CBS is still making headway in the commercial market despite the period of transition,” he said. “ CBS is still winning on business and Flow with residential service.”

Describing himself as one who has been to the Promised Land, Hume said that the idea of focusing on the customer excites him.“It’s one thing to have a passion to focus on the customer, but if your organisation is not designed to do it, then it breaks down somewhere. This new organisation is designed from the ground up to make the customer experience one that is di�erent from any that we currently have.

“Recognising the role our employees play in delivering this high service level, the new organization is also heavily focused on the employees. I have personally spoken to about 115 of Columbus’ 600 employees since ascending to this new role on Friday. Those conversations have reinvigorated my belief in our employees, because once we got past just updating the communication and the integration, about 90 per cent of the questions were centred on ‘how do I serve my customers better’? and ‘what can we do to improve the services and stay in front of the competitors’. All the employees are now focused on ‘how do I do my job better’, and that’s what makes our place di�erent,” Hume said.

18 11

FINANCE$ $

The boardroom of the 21st century plays a critical role in setting the ethical

compass of its organization. This was the simple and assertive statement made

in a new report from ACCA (Association of Chartered Certified Accountants)

and the Economic and Social Research Council (ESRC), called Culture and

Channelling Corporate Behaviour.

The report stressed that boards are also critical to help company’s avoid the sort

of dysfunctional behaviour that can cause accidents, undermine an

organisation’s values or create financial and reputational loss.

Based on a series of roundtable discussions and a survey of ACCA members, the

report advises that when assessing their organisation’s culture, boards should

ask themselves three fundamental questions, which are seen as basic good

corporate governance:

What are the goals and purposes of the organization?

What sort of behaviours do they wish to encourage and discourage?

How is the tone at the top set out and conveyed through the organization?

We know that an organization can have the most sophisticated code of

governance and rules, but as recent high profile scandals have shown, poor

organisational culture has been a significant cause of corporate wrong doing.

To design a system that works, we believe it is important to ask the right questions

– especially what kind of culture do you want in your organisation?

The report lists a number of trade-offs that need to be balanced by the

boardroom and by staff; is there openness to mistakes, or zero tolerance? Is the

organisation innovative, or controlled? Does profit rule, or public value matter

more?

Assessing culture can be difficult because it calls upon a brand new set of skills

and requires a multidisciplinary approach. But what we hope with this report is

that it will help boards and staffs avoid some of the potential dangers and helps

them on their journey towards evaluating and improving the culture within their

organization. For ACCA, this is where the skills and abilities of the professional

accountant can make a real difference. Trained to evaluate and measure, the

accountant needs to be attuned to ensuring that values can be measured and

reported internally and externally – after all, what can be measured can be

managed, and the accountant is of course adept at ensuring the bottom line

adds up.

Culture and Channelling Corporate Behaviour – is the bottom line with the Boardroom?

By Brenda Lee Tang, head of ACCA Caribbean

The report lists seven points for consideration by the board, serving as a starting

point for assessment and possible change:

1. Align and embed core values at the very topDo people who do not act in accordance with the company’s stated values

get promoted? Do management practices drive people to do things that they

regard as unethical?

2. Watch out for the trickle-down effect and dynamics in groupsWhat can prevent the tone set at the top from effectively trickling down

through the various levels of an organization?

3. Track how decisions are being madeHow aware are decision-making groups, from board level downwards, of the

risks of cognitive bias and group thinking? How is diversity of thinking and

challenge encouraged?

4. Be honest about the value of regulation and codesWhat attitude to regulation should an organization have? Does it want to

support and work with the spirit and the letter of codes or does it see regulation

as something to be avoided or exploited for its customers’ interests or its own

sake?

5. Beware of unintended consequences attached to any incentive structure Is it understood how incentives (deliberately created or not) work in practice?

Can the board identify better measures that properly reflect the long-term aims

of the organization and use them in better ways so they do not get ‘gamed’?

6. Find out what motivates peopleAre incentive structures in place actually fit for purpose? Do they

promote long-term sustainable performance or do they encourage

immediate self-gain only?

7. Anticipate trendsIs the organization open to new creative ways of thinking or is it

constrained by a fear of the uncertain? How aware of global market

trends are management and human resources staff?

These may seem like lots of questions, but they are the right ones to ask. The detailed report can be found at www.accaglobal.com/culture.

BUSINESS & INNOVATION

So you have been toiling with an idea for some time now. You have written down

your vision (or business plan), changed it to fit with the times and included some

adjustments based on how your potential competitors operate. And yes, you have

even included some of the suggestions from you harshest critics and even the ones

who think you are out of your mind to even attempt such a venture. Whether you

are an entrepreneur already or still getting there, nothing should stop you from

going after your vision.

Successful business leaders don’t go to work everyday expecting things to happen

by chance, awaiting the thrill of the unknown; they have a plan and go after it,

fixing and perfecting as they go along. There are great benefits to careful planning

and likewise great disasters that can result from failure to plan.

Before launching your business, here are five steps to ensure a successful start:

Go beyond the business plan.Planning carefully before launching the business should not be limited to preparing

your business plan. The business plan preparation is an important and valuable

exercise but there are other ways to plan according to entrepreneurship experts.

Clinical professor of management and director of the Entrepreneurship Lab at

Pace University in New York City, Bruce Bachenheimer recommend three (3)

methods:

The Apprentice Model: Gaining direct industry experience, as many successful

entrepreneurs have done. Work in the field you are aspiring to start a business,

network with industry experts and get on the ground!

The Hired-Gun Approach: Partnering with experts who have in-depth knowledge

and experience.

The Ultra-Lean School of Hard Knocks Tactic: Figure out a way to rapidly test and

refine your model at a very reasonable cost.

Research and test your idea.Sixty per cent of new businesses fail within the first three years and this is often

attributed to a lack of research. Too often, people rush into business without

carefully testing the idea to see if it will work. Research is essential. Get the views

and opinions of people who may be your potential customers and where possible,

test you ideas on the same target group. You may also consider using the

opportunity to determine price structure and how to reach your potential

consumers.

Know the market.Don’t be afraid to ask questions, conduct your own studies or gain practical

experience in your field to help you learn more about your market inside and out.

This includes identifying suppliers, distributors, competitors and customers. One

5 steps to a successful business launchBy Keneshia Nooks

entrepreneur indicated that it is also important to really understand the critical

metrics of your market, whether inventory turnover or obscure measures in highly

specialized niche markets. Many business owners spend years working in the

respective industry, allowing them to gain confidence in the field and develop

long-term partnerships with potential partners, suppliers and investors.

Understand your future customer.Since your customers will invariably determine the success or failure of your

business, you must take the time to know them inside out. Have a clear definition of

your target customer, how they make their purchasing decisions and what drives

these decisions. It is also important to find out what you can do to differentiate your

offer from that of your competitor and how you will convince them of the value in

taking your offer. The answers to these questions will come only from testing the

market. Understanding your future customer before you launch the business is a

critical part of your planning process. Once you have launched the business you

will be too consumed with its operation, giving you little time to think or make

adjustments. Therefore, understand your customer before you launch the business.

Choose the right business structure.Choosing the most appropriate corporate structure from the beginning is crucial

and can have legal and tax implications depending on your decisions. The

structure you choose can also ensure the success of future decisions such as raising

capital or exiting the business. In Jamaica, there are two basic structures to choose

from:

- A Company: a commercial enterprise registered or incorporated under the

companies Act. A company can either be non-profit (e.g. charity, club, NGO) or

profit generating.

- A Business: a sole trader or partnership registered under the Business Names Act.

- For more information about choosing the right business structure, contact the

Companies Office of Jamaica (www.orcjamaica.com).

Finally, it would be remiss not to remind you that Rome was not built in a day. As an

entrepreneur you have to be open to taking action daily, doing one thing at a time

and expanding your faith with expectancy! Your efforts will soon pay off.

FINANCE$ $Why is a business plan necessary for the loan process?

By Joan Lawrence (Strategic Services Department, Development Bank of Jamaica)

A business plan is a written description of your business's future. That's all there is to

it - a document that describes what you plan to do and how you plan to do it.

Business plans can help perform a number of tasks for those who write and read

them. They are used by entrepreneurs seeking investment to convey their vision

to potential investors. They may also be used by firms that are trying to attract key

employees, prospect for new business, deal with suppliers or simply to understand

how to manage their companies better.

The business plan conveys your business goals, the strategies you will use to meet

them, potential problems that may confront your business and ways to solve

them, the organizational structure of your business (including titles and

responsibilities) and, finally, the amount of capital required to finance your

venture and keep it going until it breaks even.

Who Needs a Business Plan?The only person who does not need a business plan is one who is not going into

business. You do not need a plan to start a hobby or for your sale of perfume as

a side business. But anybody beginning or extending a business venture that will

take up significant resources of money, energy or time, and that is expected to

return a profit should take the time to draft a plan.

Start-ups - The classic business plan writer is an entrepreneur seeking funds to help

start a new venture. Most companies had their starts-ups on paper, in the form of

a plan that was used to convince investors to put up the capital necessary to get

them under way.

It is not only cash-starved startups who need business plans. Business owners find

plans useful at all stages of their companies' existence whether they are seeking

financing or trying to figure out how to invest a surplus (diversify).

Established firms seeking help - Not all business plans are written by ‘starry-eyed’

entrepreneurs. Many are written by and for companies that are long past the

startup stage. These growth-stage enterprises may draft plans to help them find

funding for growth just as the startups do, although the amounts they seek may

be larger and the investors more willing.

Contrary to popular belief, a business plan isn't just there to help you secure

investment - it also gives you a place to map exactly how you want to run your

business, what your goals are, and how you will achieve.

Funding your planWhen an entrepreneur approaches a bank to fund a business it is important for

the business banker to understand all about the business which is being

contemplated by the client. A business plan is one of the documents which will

give the banker the information he needs to make a decision whether or not to

grant the loan. This loan may be from a commercial bank or a special

developmental loan which is offered by the Development Bank of Jamaica

(DBJ). Either way the plan is crucial to the loan process, as the banking officer will

look at the feasibility of the venture as well as how much cash flow will be

generated on a monthly or quarterly basis to repay the loan.

Small and medium-sized enterprises (SMEs) not able to provide this plan to a

business banker, may receive help in the form of a grant called the Voucher for

Technical Assistance. This voucher will assist in paying up to 70% of the cost of a

business plan and other relevant services required by SMEs to convince the

banker that they are (or will be) operating a sound business.

For more information about the Voucher for Technical Assistance grant and how this

product can assist SMEs in developing a business plan, contact the Development Bank of

Jamaica at 929-4000 or email jlawrence@dbankjm.com .

17

13

Taxes and taxation are often received with mixed emotions. Historically, taxes

have been met with much rebellion and unrest, patriotism, war and voluntary

compliance. Did you know that French tax collectors were sent to the

guillotine in 1789?

Filing your taxes is an important part of successful business planning. Here are

a few useful tips from the Tax Administration of Jamaica (TAJ):

Know due datesIt is important that persons operating a business, whether as a company,

partnership or self-employed person, know the various dates when the

respective returns are to be filed and payments made. Being late can be

costly, as interest and penalty may be applicable.

It pays to be compliantEmployers who file and pay over their monthly statutory deductions – S01, on

time, may benefit from an Employment Tax Credit. This may be applied

against their income tax liability, thereby reducing their effective tax rate

possibly as low as 17.5%.

File return even if you have a lossAll businesses, whether operated as an individual, partnership or company,

are required to file a tax return even if the business makes a loss. In fact it is in

your interest to report the loss, as currently the law allows for business losses to

be carried forward indefinitely. This may be used to off-set future profit.

Mobile Business Clinic Highlights Tax Tips

Hanover

St. James

St. James

14

BUSINESS & INNOVATION

15

Small Business Development Centres are the main source of

technical and managerial assistance for micro and small businesses

in the United States (US). The concept began over 35 years ago as a

project to lend impetus to small business development capacity.

Their mission is to promote MSME growth, innovation, productivity

and revenue through improvements to their business administration.

The services of SBDCs include long term one-on-one technical

assistance, training, market research and advocacy. The primary

focus of SBDCs is creating economic impact by assisting established

MSMEs. Nonetheless, they provide assistance to start-up enterprises

which currently form approximately forty per cent of their client

base. Importantly, SBDCs measure their performance by their ability

to help MSME clients generate economic impact by establishing

new businesses, creating and retaining jobs, increasing sales and

increasing access to capital. The US network of Small Business

Development Centre comprises just over 1,100 centres and serves

over 750,000 businesses annually. Currently the reach and impact of

the existing network of SBDCs is significant and far-reaching. Of the

approximately 700,000 new businesses started in the United States

annually, forty per cent of them are assisted by SBDCs.

The SBDC model combines the resources of public and private

sector and institutions of higher learning. The model is driven by

academia which is the primary information and capacity building

source. The SBDCs are funded by the Federal Government’s Small

Business Administration (SBA) with matching funds from state or local

sources and these institutions of higher learning. Recommitment of

funding for the operations of a small business development centre is

contingent upon the centre’s performance. If the centre fails to

meet the targets agreed with the SBA, it loses its funding and its

operations disqualified. Most SBDCs in the US are housed on

University Campuses. The role of academia within the model is

crucial. University or College affiliation usually involves funding (to

JBDC pilots implementation of US SBDC model By Althea West-Myers

include payment of salaries), crucial research information to back

business decision-making, primarily for small business owners.

The model has been introduced in Latin America (Mexico, El

Salvador and Chile) with relative success in recent years. The

programme aims to deliver the opportunities and benefits of

international trade among the SMEs and SBDC networks linking the

Americas. It is no surprise, therefore, that the Organization of

American States (OAS), which is the major project sponsor, is now

making regional Caribbean participation a priority for the US and its

Latin America SBDC network allies. The OAS hopes to influence or

encourage regional governments to support and ultimately adopt

the model in their countries. In the Caribbean, Belize and St. Lucia

have adopted and launched SBDC programmes. The Jamaican

leg is being spearheaded by the Jamaica Business Development

Corporation (JBDC) and was launched on January 23, 2015. The

ultimate aim is to create and link an Inter-American network of

SBDC/CDMYPE (Central American version of SBDCs) programmes

to leverage the talents, experience and available infrastructure to

foment the SME sector development, trade, improved

competitiveness and sustainable job creation.

The SBDC model is said to respond to SME needs throughout the

entrepreneurial life cycle. Its intervention services include:

• Counselling

• Management Training and Capacity Building

• Business Start-up and Formalization

• Viability Studies and Market Assessments

• Business Plans and Financial Forecasts

• Marketing and Sales

• Capital Access (debt, seed and risk capital)

• Technical Assistance and Research

• Innovation and Technology Commercialization

• International Trade

• Human Resource and Organizational Growth

• Suppliers and Production Chain contracting

• Disaster Preparation and Recovery

• SME Policy Advocacy

It is easy to see the natural synergy between JBDC’s services and

those provided by the US SBDCs. The model encapsulates the

services offered by at least one department of JBDC – Business

Advisory Services, and reflects similar methodologies and

approaches to client intervention.

Indeed, adopting and adapting the model would not represent a

departure from JBDC’s core business or from the methods used in the

provision of business development services. In fact, the programme

facilitates a systematic approach to data collection and impact

measurement. As the primary means of government support to the

MSME sector, the JBDC will now be in a better position to measure its

impact on the sector and to track the growth of its clients –something

the JBDC has, up to now, lacked the resources to do.

So what does piloting the implementation of SBDCs in Jamaica

mean for JBDC? What will it look like in terms of the way we work?

Due to the similarities in the current offerings, there will be little, if any,

difference to the way we work. Involvement in the programme’s

implementation has afforded JBDC access to NeoSerra, the

web-based client relationship management (CRM) system, designed

especially for the business development environment. Importantly,

the adoption of the model has somewhat forced data collection at

the macro and micro levels and reporting this information in terms of

its economic impact on the country’s growth and development. This

will ultimately lead to greater levels of accountability and efficiency

on the part of JBDC.

The pilot will run for one year. During this period, JBDC is tasked with

the responsibility of providing capacity building and guidance

through a ‘road to SBDC readiness’ programme to other potential

SBDC operators. Simultaneously, JBDC performance targets and

success indicators will be set by the Ministry of Industry, Investment

and Commerce - the lead agency in the expansion programme. The

Development Bank of Jamaica will serve as the project’s primary

funder in the pilot phase and as such is a crucial partner for this

implementation.

The advantages of the model are varied and may include:

• Increased competitiveness for clients and SBDC

• Increased participation in the formal economy

• A positive ROI for all program stakeholders

• Elimination of duplication and inefficiency when there is

co-investment in the program

• Access to SBDC’s international trade platform

(www.SBDCglobal.com)

• Links with 750,000 businesses and with the 1,100 SBDC centres in the

USA.

• Access to the market intelligence system (www.sbdc.net) which

provides geo-referenced statistics supporting market studies and

providing sales planning and marketing and export strategies.

We look forward to leveraging these advantages in building strong,

sustainable businesses and creating significant impact on the sector.

Here’s to success in business!