Quick Steps to a Robust Business Plan
Easy Steps To Knock Out Your Plan
Planning is so fundamental to success in business, as in everything else, that it should assume a prime place in what you do. Proper planning ensures that you not only set clear goals for your business but also carefully outline the strategies and action plan for reaching those goals. Running your business without a clear plan is like sailing a rudderless ship or groping in the dark. Both actions are not only laden with danger but indeed stand only a minimal chance of success. For a business designed to succeed, a sound business plan is imperative.
A thorough business plan is important if you hope to attract funding, establish major business partnerships or secure dealership of major companies. If however you do not have any of these needs and cannot find time for a comprehensive plan, you can help your business with our quick plan model which should meet the basic objective. Follow these steps to knock out a quick plan:
Define The Purpose/Mission of The Business
Here, you clearly define the nature of the business you wish to commence or are already engaged in, spelling out its purpose. What difference do you desire to make and what unique package are you are bringing to the table. An example: 'cinema entertainment in cozy environment for the upper market segment'.
Develop Your Vision For The Business
The business vision simply looks relatively far into the future (say 5 to 10 years) and realistically conjures up what status you expect the business to attain at that point. Here, you're defining the direction of the business and the market position expected of it. Ideally, this will be a big vision that should inspire you and the work force as you strive to actualize it. It may be market leadership (or say one of the top five in your sector), international presence, technology dominance or whatever you are inspired to pursue. Capture your vision in a brief vision statement.
Evaluate Your Strengths, Weaknesses and Competitive Effectiveness
SWOT analysis will primarily achieve this goal. Identifying the strengths and weaknesses of the business, the opportunities open to it and likely threats to its success will place its competitive advantage, if any, in clear perspective. It will also highlight its resource requirements and areas that need to be addressed to put the business on a sound footing.
Analyze Your Market And Profile Your Customers
Without a market to buy your goods or service, there is simply no business. Market analysis and customer profiling must be seen as a major task in planning your business. Which market are you targeting and what is its size? Can the market be segmented into subgroups? What are the characteristics, habits and interests of the customers you wish to serve? Are there market trends that are likely to dictate the shape of things to come? Who are the competitors and how much of the market do they control? What are their strengths and weaknesses? What share of the market are you targeting? These and more are relevant questions that will help you understand the market and formulate appropriate strategies for success.
Set Goals And Objectives
With the insight you've gained, you should be in a good position to set realistic and challenging targets for your business. Objectives are broad targets that tie into the vision of the business. Goals should be specific, measurable, time-bound, challenging but achievable. They draw from the strengths and aim to exploit identified opportunities. Define targets for sales, market share, margins, etc.
Define Action Plans
Setting targets doesn't immediately say what specific action to take to accomplish them. You must go further to spell out what you need to do to achieve the results you desire and which, based on your analysis, are within your scope and resources. For each goal you have set, clearly outline the important steps that you will take to deliver on it. The timing of each step should be clear. In the end, it is the extent to which correct actions are defined and implemented that your set goals will be achieved.
Action, Action, Action
If you have spelt out results you will be satisfied with and have defined the action plan for accomplishing them, action must now take predominance. Pursue your set plan relentlessly, always with an eye on the coveted crown - your set goals.
Measure Results And Stay on Course
You must monitor your progress to ensure you remain on course. Measure your results and weigh them against the plan to confirm you are right on target. If you fall short, you will need to raise your run-rate to cover lost ground. The review exercise may also reveal the need to alter your plan. It is not cast in stone, so do it. Go on with the same zeal to pursue your revised plan.
Make The Process a Routine
Planning is not a one-dose treatment. Circumstances change: new opportunities, more challenges, increased resources, etc. These could mean that the framework you have deployed has substantially lost relevance. If you fail to respond proactively, you possibly are singing the nunc dimitis of the business. So, make the planning process a living experience in the business. That way, your business will live and prosper!
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