|
|
|
|
|
Article by Steve Hancox, published in Acquisition Magazine, Vol. 7, Issue 9, Sept. 98, page 6. |
Strategic Planning for the Small Business Owner Strategic business plans and their annual updates are routinely required of managers of most large companies. Venture capitalists require them from start-ups they fund as do business brokers from companies that are for sale. Occasionally, a banker will request a formal business plan when lending money. Yet it is widely believed that the overwhelming majority of small businesses operate without one. Maybe therein lies a problem. The focus of strategic business planning is often for the benefit of someone else. If that is what has been keeping so many entrepreneurs from the task, it is unfortunate. No one benefits more from a business' plan than does its owner. And the rewards are substantial - for all companies, regardless of size or industry. There are a lot of misconceptions about a business plan. Many managers see it as a stale, labor intensive document that gets forgotten until it is time for the next update. Some see it as limiting; others complain that it is a distraction. A business plan is not a management document. It is a leadership document. It is not a task that a CEO can delegate and then wait for the finished plan to be presented to him or her. The strategic plan is the leader's vision of where the company is today, where it is going and why, and how it will get there. Others, both from within the company and from outside, should be asked to contribute. The list of outside contributors might include the company's accountants, attorneys, bankers, directors and even certain customers. Their knowledge and perspectives of the company, its customers and competitors are invaluable. This presents an excellent opportunity for a CEO to acquire and build upon the ideas of others. The strategic planning process is a time of critical assessment and of creativity, visioning and problem solving. A well-developed business plan requires a variety of skills, for which a number of tools have been developed. If your company lacks the skills or knowledge, or simply cannot dedicate enough people to the development of a business plan, there are many external resources available to augment your efforts. Depending on your needs, there are consultants, books and even computer software programs that can assist you. A good business plan requires an intensive effort. But it is well worth the investment of time, energy and money. Even if yours is a one-person company, the formal process of writing a document and addressing each key area is sure to produce valuable insights and clearer thinking. If you have employees the benefits are multiplied. As the CEO acquires ideas, perspectives and insights from the company's employees and then shares the vision, everyone is able to pull together in the same direction. Higher profits, increased sales, greater market share, improved customer satisfaction, and enhanced employee morale are all realistic expectations for an entrepreneur who takes the time to build and implement a strategic plan for his or her business. |
|
|
|
|
Excel Management |
ABOUT EXCEL + SERVICES+ NEWS + LINKS |
|
(513) 646-3437 |