Business Planning

Why is this item important? 

Every business has limited resources, which typically can be measured in “time” and “money”. Regardless of the size of the business, it’s industry or maturity, the most effective use of these valuable “time/money” resources provides the greatest return for the owners. Thus, having a well-considered forward strategic plan is beneficial – as it permits the optimal use of the business’s resources. 

Planning also enables the consideration and testing of various plan options “on paper”, which is faster and cheaper than “experimenting in the real world”. The inclusion of milestones in the plan then provides for the objective measurement of performance, so that incremental progress towards your end goals can be planned and tracked.  

How can I tell if I meet this item in my business? 

• Specifically, you will have a documented strategic plan for your business operations with a 3-5 horizon. The plan must be documented and not just in your mind.
• The plan should be current – ideally under 12 months old with assumptions confirmed as still being correct. 

What do I need to do to meet this item? 

1. A good business plan process which fosters a holistic and all-encompassing view of your business operations.
2. Some time for the considered thought of your business, to enable the completion of a business plan.
3. The discipline to not create a business plan in a single afternoon, but to methodically consider each business element – with suitable internal debate and discussion.

Why is this item important? 

Self-awareness about your strengths and weaknesses enable you to “pitch to your strengths” whilst “protecting or deflecting from your weaknesses”. In a business context, this understanding  will often mean that you can improve or leverage efficiency in your core activities – which will provide either a competitive marketing advantage or an enhanced financial return. Understanding your weaknesses also permits focused training and development, or perhaps the recruitment or outsourcing of functions that you are not proficient in.  

How can I tell if I meet this item in my business? 

• You will have a documented S.W.O.T. analysis of your own business and capabilities.
• You will have taken conscious actions off the back of the S.W.O.T., to leverage your strengths and defend any identified weaknesses.
• Within your business operations, you will have taken steps to mitigate your external threats and have aligned your business growth/potential in line with your opportunities. 

What do I need to do to meet this item? 

1. A S.W.O.T. analysis process which is suitable for your type and size of business.
2. A good business plan process which fosters a holistic and all-encompassing view of your business operations, which integrates with your S.W.O.T. analysis.
3. Use the planning and S.W.O.T. to identify tangible actions which enable the effective management of your business for growth or improvement.
4. Hold yourself accountable to undertake suitable action.

Why is this item important? 

A tight and detailed action plan for the forward 12 months (being a subset of your wider 3-5 year plan) is the driver for targeted action. A detailed business plan by itself can be enlightening for a business, but its only through incrementation action which brings the plan to life and drives business improvement. Clearly articulated actions – specific to business plan strategies/objectives – with the S.M.A.R.T. formatting for accountability, will drive progress towards your defined business objectives. 

How can I tell if I meet this item in my business? 

• You will have a considered business plan – from which, you have a list of clearly defined actions for the short term with clear milestone points.
• You are using this action list to drive business progress, with this linked back to your ongoing business reporting for monitoring and accountability. 

What do I need to do to meet this item? 

1. A business plan is great to identify the strategy and requirements for your business but its only action which will get it there. A focused action plan identifies what actions need to occur in the short term to drive the forward movement towards your defined business objectives.
2. A clear list of defined actions with timeframes – coupled with a resources/intent to complete them.
3. Appropriate S.M.A.R.T. monitoring within the business for accountability.

Why is this item important? 

The market is dynamic and ever changing, so a strong business plan review process will enable 2 things. Firstly, it will ensure that your plan remains relative to the business objectives and the market conditions. Both of these can change over time (sometimes unexpectantly), so the plan should evolve in a controlled manner to accommodate these. Secondly, continual review of the business plan will strengthen your accountability for delivering it. Accountability , as part of a robust monitoring process will drive the achievement of action – or highlight where this is not occurring.  

How can I tell if I meet this item in my business? 

• On a monthly basis, you are formally considering your progress towards the achievement of your business plan. This would include reference to the completion of actions, their outcomes and adherence to milestones.
• You are acting on the outcomes of your business plan actions. If they are not delivering the desired outcomes, then you are aware of this and you are taking remedial action.
• You are achieving your business goals – or as a minimum, working incrementally towards them. 

What do I need to do to meet this item? 

1. A clear and well considered business plan which appropriately defines your business objectives and strategies to achieve them.
2. A regular “business as usual” review process within your business to review your progress against your stated business objectives.
3. A mechanism to trigger an update of your business plan if it no longer aligns to your business environment or objectives.

Why is this item important? 

A business is simply part of a wider business ecosystem or industry, which is part of a wider economy. Thus, planning consideration must incorporate the market elements which your business operates within. This will cover your supply chain, client market, wider industry, technology and general economics. Each industry will have its own specific set of critical dependencies which should be considered as part of the planning process, with due consideration also given to not just the current position, but importantly – where the external market is going to.  

How can I tell if I meet this item in my business? 

• You will have a documented S.W.O.T. analysis which has specifically considered your industry and wider supply chain.
• Your business has an ongoing awareness of your supply chain and can identify elements which may impact your supply.
• You have defined action plans formulated to safeguard against critical changes in your supply chain. 

What do I need to do to meet this item? 

1. Understand the importance of your supply chain to your operations, with a S.W.O.T. built into your strategic planning process.
2. Have an ongoing mechanism within your business to maintain oversight of your supply chain environment, so that adverse issues can be quickly identified.
3. Manage your supply chain risk, with oversight and remedial action to ensure continuity of supply at acceptable margins. 

Why is this item important? 

Target markets change over time, as they are impacted by wider external factors – just like your business operation. Thus, you must consider in your planning what factors are likely to impact their buying preferences and spending ability in the future. Identified changes in these patterns will then permit business planning consideration of either a variation in your offering to align to the change in your target market, or it may provide the opportunity to diversify and seek out new markets to trade in.  

How can I tell if I meet this item in my business? 

• You will have a documented S.W.O.T. analysis which has specifically considered your existing clients and target market.
• Your business has an ongoing awareness of your client base and target market, so that changes can be quickly identified to enable action to be taken to reposition the business as needed. 

What do I need to do to meet this item? 

1. Understand the importance of your existing clients and target market, with a clear definition of each and an associated S.W.O.T. built into your strategic planning process.
2. Have an ongoing mechanism within your business to maintain oversight of your existing client and target market environment, so that adverse issues can be quickly identified.
3. Manage your market risk, with oversight and remedial action to ensure continued sale of products/services at acceptable margins.