A BUSINESS STRATEGY FOR SUCCESS

DO YOU HAVE A STRATEGIC PLAN FOR YOUR BUSINESS?

Your business plan documented your overall, long-term vision for the business which helped you to set up your business and its initial goals and objectives. It also assisted in setting up business structure and processes, products and services, financial resources and costing, staffing needs and all the basics which go into forming a business and getting operational. Your original business plan got you into the world of business.

 Most business owners plan their day-to-day operations, but do not have a strategic plan. They operate their businesses from a constant place of reaction. A strategic business plan can help your business to survive and grow in the ever-changing business environment in which you operate. It gives more detailed direction and ensures that your business is going in the desired general direction.  This plan should focus on the improvement of your business’ performance by identifying and exploiting opportunities, dealing with threats, and continually improving market share and profitability.

A strategic plan should focus on the following:

  • Identifying the influences of the changing business environment on your business and introducing the needed changes in direction.
  • Identifying your business’ strengths and weaknesses. Identifying and analysing available opportunities to identify and grab business opportunities that fit your business’ mission and vision. It also helps you to avoid those that don't.
  • Identifying and analysing potential threats to be able to put plans in place to overcome them before they impact negatively on your business.
  • Analysing your business culture and its impact on your business’ performance.
  • Identifying and eliminating poor performing areas.
  • Gaining control of operational challenges.
  • Developing a frame of reference for budgets and short-range operating plans.
  • Placing focus on the important things so that resources (time, talent, money) are properly allocated to those activities that provide the most benefit. 

When should you review your strategic plan?

  • The best time to prepare your strategic plan is at the start of your financial year.
  • When you have lost a key account/client
  • When you have acquired a major new account/client
  • When new competitors entered your market.
  • When you are not meeting financial targets.
  • When key projects are falling behind schedule
  • When there is major change/ shift in technology
  • When the business is growing faster and larger than expected.
  • When employee engagement and team performance are low.

REVIEW WHAT WORKED AND WHAT DIDN’T WORK

A good way to kick-start the review process is to look back over the last year and record both what worked and what didn't work. Consider the following areas:

 Business Area: Operations

  • Rethink how you are doing business. This might even require that you need to reconsider your business model, target market, business lines and pricing model.
  • Optimise your business. Determine what is required to ‘sweat your resources’ to their maximum capacity and productivity levels.
  • Consider offshore expansion to hedge your business against an inconsistent Rand.
  • Provide products and services to customers which are safe, cost effective and delivered timeously.

Business Area: Marketing and Sales

  • Maintain your current customer base. One way is to develop value adds which can lead to higher levels of customer loyalty and secure consistent sales from them.
  • Develop well-targeted and ‘fresh’ marketing initiatives and campaigns which are driven by innovation, creativity, and adaptability.
  • Endeavour to keep your marketing budget intact – most businesses decrease their marketing spend during challenging times. If most businesses are following this route, then your business will stand out from the crowd, as your visibility will increase.

Business Area: Information Technology

How can you apply technological advances to develop digital products and services? This will lower the cost of ownership for your customers, enable you to deliver in real time and make it more convenient for your customers to transact with your business.

Business Area: Human Resources

One of the most challenging decisions to make is to determine how many staff to employ during difficult economic times. Once you have ‘right-sized’ your staff component, you can consider appointing skilled contract workers to fill the resource gap as business flows fluctuate. In this way you will be more flexible to respond to market movements.

Business Area: Management

Align all your actions with the business purpose, values, and vision. There is a direct correlation between performance and the alignment of employees to a higher business purpose.

RECOGNISE YOUR ACHIEVEMENTS

Take some time to think about what your business achieved in the last year. Don’t just think of the big successes. Small successes are often the ones that really indicate you’re doing something right. 

RECOGNISE YOUR FAILURES

It is also important to examine where you missed the mark and identify what didn't work. If you don’t recognise your failures, they will probably occur again because you will not have the opportunity to learn from them.

CONTACT US TO FACILITATE THE CREATION OF A BUSINESS PLAN OR A FRESH STRATEGIC PLAN FOR YOUR BUSINESS!

Call: 063 6839231 or email: johan@coachbekker.com

© JH Bekker 2022