Most entrepreneurs do extensive planning and research before starting a business. But, after they get everything up and running, they tend to fall back into a natural bias for action mode. Once your business has been launched, it doesn’t mean your days as a strategist are finished. In fact, they are just beginning.
Ongoing planning is necessary because the environment in which your small business operates is continually changing. This has become more important over the last year or two. Many of the new marketing tools have created new opportunities. Challenges like the current downturn in the economy may arise that may be vastly different than those assessed during the start-up stage. Initial financial projections can be literally and figuratively on the money—or trending in a different and unexpected direction.
With just a few planning tips, you can keep your small business right on track for long-term growth:
Make your business plan a living document. Many business plans become nothing more than “artifacts” of business start-ups. Don’t let this happen. Refer to your business plan every quarter or six months to compare estimates against current realities. Then, update your plan as needed with new or modified contingencies and adjust time frames for key milestones such as expansions or new product/service lines.
Capture and monitor the numbers. Financial statements can provide a snap shot of the health of your business. If you project cash flow several months into the future based on reasonable expectations for sales and income, customer demand, regular payments (e.g. loans and rent), and other factors, you can and then compare actual cash flow to projections. This process reveals significant deltas which represent opportunities to improve performance. Companies that don’t do this often find themselves in a situation with no room to maneuver.
Keep your finger on the pulse of the industry. In today’s global economy, even slight changes can have a profound impact on small businesses. The influences may be as far-reaching as a shift in demand for a certain commodity, or as local as a new stoplight near your store. Monitor macro (world) and micro (local) events; study sales records, and keep a running dialog with customers, suppliers, and colleagues. You’ll have fewer surprises, and will be better prepared to anticipate and capitalize on changes.
Form productive connections and alliances. Although business growth usually means having access to additional resources, there may be other, more cost-effective options. Creating alliances with other businesses in your field and certain consultants, you can stretch your capabilities. These alliances can help you meet peak market demands and/or generate revenue from products/services that you may not have.
Develop an irreplaceable staff. Because a growing business will demand more of your time, invest in your employees so they can take on both routine as well as management responsibilities. This strategy will pay multiple dividends. Your staff will relish the opportunity to grow personally and professionally which will strengthen their loyalty to you and your company. You will be free to focus on more important issues.
Revisit your marketing plan. Marketing has changed and continues to change. What has worked in the past, quite often is not working now. If you haven’t already, consider incorporating Web 2.0 marketing including social media to your plan. Call on all employees to find creative ways to support sales efforts.
If you would like to contact me, you can do so by emailing me at mike.clough@bestbizpractices.org or visiting my LinkedIn page.
Posted by: Mike Clough
