After having business leaders tell us their strategy for development and expansion for nearly one year, the growing call for smart positioning which enables brands take advantage of the traditional money windfall anticipated as the 2015 elections draw near has been a constant topic for discussion in business circles.
With venture capitalists putting all efforts on board as they prepare to tap into of the expected increase in cash flow during the election campaigning period slated for the first half of the coming year, it has become vital for brands offering diverse services – ranging from manufacturing to financial institutions – to make detailed plans that help utilize the income that may be generated during this period effectively for the progress of the company and improved well-being of employees.
As with most successful business, a thorough review of the current performance as well as designing strategies for meeting the ever changing needs of its customer base is key.
Thanks to the analysts at Canada Business Network, organisations seeking to make head way in spite of the rough economic climate pundits’ project can now do so by transforming their business plans from static documents to flexible templates that will enable ventures both survive and thrive.
Draw up a more sophisticated business plan
If a business has grown to encompass a series of departments or divisions, each with its own targets and objectives, they may need to draw up a more sophisticated business plan.
According to the experts, the individual business plans of the departments and separate business units will need to be integrated into a single strategy document for the entire organisation.
The timeframe for execution has to be made clear to all the parties’ involved too.
If it is an owner-managed business, one may wish to include an ‘exit plan’. This includes planning the timing of your departure and the circumstances, e.g. family succession, sale of the business, floating your business or closing it down.
Set objectives for individual departments
It’s important for each department to feel that they are a stakeholder in the plan. Typically, each department head will draft the unit’s business plan and then agree on its final form in conjunction with other departments.
Each unit’s budgets and priorities must be set so that they fit in with those of the entire organisation. Generally, individual unit plans are required to be more specific and precisely defined than the overall business plan. It’s important that the objectives set for business units are realistic and deliverable. However complex it turns out to be, the individual business unit plan needs to be easily understood by the people whose job it is to make it work. They also need to be clear on how their plan fits in with that of the wider organisation.
Plan and allocate resources effectively
The business plan plays a key role in allocating resources throughout a business so that the objectives set in the plan can be met.
Once progress has been and the strategy for growth identified, the existing business plan may look dated and may no longer reflect your brands’ position and future direction.
To make headway, an assessment of how to align resources and strategy is essential.
In practice this could mean recruiting more office staff, spending more on marketing or buying more supplies or equipment. They may want to provide funds through current cash flow, generating more profit or seeking external funding. In general, it is always better to fund future growth through revenue generation.
However, precise budgeting should be done to decide on the right level of resourcing for a particular unit or department. It’s important that resources are prioritised, so that areas of the business which are key to delivering the overall aims and objectives are adequately funded. If funding isn’t available this may involve making cutbacks in other areas.
Use targets to implement your business plan
A successful business plan should incorporate a set of targets and objectives.
While the overall plan may set strategic goals, these are unlikely to be achieved unless you use SMART objectives or targets, i.e. Specific, Measurable, Achievable, Realistic and Timely.
Targets help everyone within a business understand what they need to achieve and when they need to achieve it.
They also make it clearer for individual employees to see where they fit within an organisation and what they need to do to help the business meet its objectives. Setting clear objectives and targets and closely monitoring their delivery can make the development of your business more effective. Targets and objectives should also form a key part of employee appraisals, as a means of objectively addressing individuals’ progress.
Begin quarterly reviews early
This process is called the business plan cycle. In some businesses, the cycle may be a continuous process with the plan being regularly updated and monitored. For most businesses, an annual plan – broken down into four quarterly operating plans – is sufficient. However, if a business is heavily sales driven, it can make more sense to have a monthly operating plan, supplemented where necessary with weekly targets and reviews.
It’s important to keep in mind that major events in your business’ target marketplace (e.g. competitor consolidation, acquisition of a major customer) or in the broader environment (e.g. new legislation) should trigger a review of your strategic objectives.
Regardless of whether or not there are fixed time intervals in your business plan, it must be part of a rolling process, with regular assessment of performance against the plan and agreement of a revised forecast if necessary.
Rita Ohai
