strategy

The fundamental strength of a company can be related to the development of a Strategic Plan which should incorporate clear objectives for each core area of the business together with strategies and tactics to achieve each objective.

The main areas covered in a Strategic Plan include the following:

• corporate mission


• corporate objectives


• strategic options


• tactics, timescales, responsibilities


• monitoring and control procedures


• detailed SWOT analysis


• strategic options from SWOT analysis


• analysis of sales levels


• gross margin analysis


• cost of sales analysis


• review of overheads


• depreciation analysis


• budget and funding requirements

strategic consultancy

Most businesses cannot afford the luxury of in-house teams dedicated to continuous planning and strategic direction; neither can they afford the time necessary to carry out these functions themselves due to daily pressures and administration.

In any case, if Strategic Planning and Management is done internally owners often find it difficult to be fully objective. This is why more and more businesses are looking to employ the part-time services of external Professional Strategic Consultants.

Successful businesses are those that are able to introduce structures and disciplines which allow management to proactively review, expand or change their strategic directions regularly in response to internal or external activity.

business planning

A business plan is necessary for three primary reasons:

• it gives you a current assessment of the business as well as a roadmap for the future.


• it helps your business grow, both organically and through outside funding.


• it is essential for you to have an up to date business plan in order to secure financing, ranging from an overdraft facility or bank loan to venture capital funding.

A business plan is a tool for decision making - remember this and remember who it is written for - then design to suit.
The business plan is a living document that should be continuously reviewed in light of the business environment and actual performance. This enables you to oversee business performance.

When to use outside help? For a business plan to be effective those who will have to implement it should own it. So, it cannot just be delegated to a consultant. But an experienced consultant can add value to the process, whilst ensuring that ownership is in-house.

Objectives The objectives of the business plan are first to develop and communicate a plan of action that will achieve your strategic objective. Secondly, to provide a means of monitoring progress towards that objective and of stimulating alternative action if the objective is unlikely to be met by the original plan. These cannot be achieved unless the plan defines the strategic objective and includes benchmarks or performance measures at key stages during the year.

The planning process The planning process is a valuable and exciting exercise that can be a major contributor to team building and a means of developing ownership/commitment to the plan. Involve people, it should end up as "our plan" not "their plan imposed on us". There are various exercises that can be helpful in the planning process:

• analysis of current year financial results


• profit & loss and cashflow forecasts


• swot analysis - internal strengths and weaknesses, external opportunities and threats


• brainstorming - for alternative scenarios, opportunities, strategies

These however will vary depending on the product and/or service you provide and your niche markets.