Financial resources are usually limited in small business so planning is critical to determine how resources will be implemented into every phase of business activity. You should have relevant strategies based on profitable financial statements. They must demonstrate the possible future financial impact of the various courses of action directly related to the strategy. Some examples of financial statements are: budgets, income statements, balance sheets, and cash flow statements.
Business owners should also undertake a complete review and evaluation of the proposed strategies to determine their feasibility. Some strategies require the use of common sense. Others use sophisticated and complex models designed from high level market intelligence. In either scenario, every dollar spent should be for a good reason. Always ask yourself and somebody else before you pull the trigger on large financial expenditures; it never hurts to get a second opinion even if you do not agree with the response. Adding additional perspective to your decision making process is a good thing, in many cases it’s the best of things.
Often when we talk about business plans we see that existing business owners feel like they don’t need one since they are already operating. In order to connect with them, we talk about growth strategies as something they need, and they often agree. Existing owners embrace this process more than a startup business does. But what these entrepreneurs don’t realize is that growth strategies are a part of a business plan.
Growing a company takes a lot more than good intentions – you need a functional business plan. Every business owner plans to grow their business and increase sales and profits. There are certain methods companies must use for implementing a successful business growth strategy.
The method a company uses to expand its business is largely contingent upon its financial situation, the competition and market diversification. Some common growth strategies in business include:
– market penetration
– market expansion
– product expansion
– diversification and
Business growth strategies are the single most important set of strategies to develop and maintain growth in your company. The overall objective is to link competitive advantages, business growth strategies and company resources. To achieve growth, you will need to be realistic about the calculated risks related to what you hope to achieve. Not every growth strategy is appropriate for every small business. The key to finding the right business growth strategy is to properly match your product and/or service with a specific market demand. Always be informed of the market and remember why you started your business in the first place.
Have you ever been confused by a business? Maybe their products don’t match their image, or their mission statement seems to have a different message than the services they provide. Every business organization must know why it exists and how its current business can be profitable today and in the future. It isn’t a quick easy process, but the information is so integral to your success in small business. How do you position yourself for success in an ever changing market? Well, we’re glad you asked.
Successful businesses define themselves according to customer retention and consistent sales of products and services. Management plays the key role and identifies:
– the customers
– their buying preferences
– product diversification and
– geographical location
Analyzing all relevant data in relation to the business environment is necessary to help management determine 1) the future market potential, 2) the economic variables affecting this market and 3) potential changes in buying habits. Management also articulates the overall goals to and throughout the organization in order to coordinate all business activities efficiently and effectively.
Communicating the goals is a process with several facets. Beginning with formulating and distributing a clear, concise statement of the central purpose of the business, management then leads in the formulation of long-range organizational goals and finally, coordinates the activities of each department and division in developing strategic objectives and policies.
So in summary, management identifies, analyzes, and then articulates relevant information as it relates to customers and sales. Need more information about pricing strategy? Check out this article.
Formulation of an effective business strategy requires detailed planning to consider the three major functions of the business: the company itself, its customers and the competition. It is also important that strategies include only a few main concepts in order to maintain clear operational objectives. Every strategy should be related to every tactic in a functional business model; this is called “linking.” You want the strategy to be clear and streamlined.
Business strategies should attempt to build a strong yet flexible position for the company so that it may achieve its goals whatever the reaction of external forces. External forces will change! The strategic choices available to a company are not unlimited; rather, they depend upon the company’s capabilities, resources and its position in the marketplace.
A strategic plan is a tool by which a business owner can ensure that their business is constantly growing and excelling at the level they desire. You should plan out tasks and also plan out the way they should be done. Involving the employees in this process is critical; you obtain important feedback and employee buy-in. Moving forward with a strategic plan and clear business strategies will help position your business for success no matter what external forces may throw at you.
- Strategy vs Tactics (collinsfabien.wordpress.com)
Having your own business is more than just creating a job for yourself. You will have to manage the basic roles of marketing, administration and sales. You must know which parts you can handle yourself and which parts you’re going to need help with. The time you spend in your business should be based on where your time spent can produce profitability based on operations development. Every microbusiness owner may carry out 90% percent of the workload – this requires solid preparation.
Business planning is a continual process of gathering and analyzing the information necessary to achieve a full understanding of the business situation. Then use this knowledge to periodically update the goals, strategy and tactics that guide the organization toward sustainable profitability. Throughout the year business planning activities are necessary in order to keep the plan current and to monitor the effectiveness of its implementation. Time spent well in each area of the business will produce overall business growth; so remember to dedicate time to all areas of your business.
Planning is a term you hear thrown around often in the business world. Basically, there are two timetables for business planning. The cheat sheet is:
Long-range (1-5 years) = strategic (objectives and goals)
Short-range (less than 1 year) = tactical (priorities and specific tasks)
Long-range extends beyond one year and is normally less than five or ten years. Often called the strategic plan, this process establishes the objectives and goals from which short-range plans are made. Long-range plans support the organizational purpose by providing clear statements of where the organization is going. These plans affect every part of the organization.
The second planning horizon is short-range, covering a period of up to one year. Short-range plans are derived from an in-depth evaluation of the long-range plan. The annual budget is a quantified expression of the enterprise’s plans for the fiscal year. It generally is divided into quarters, and is used to guide and control day-to-day activities. It is often called the tactical plan because it sets priorities, in the near term, for the long-range plans through the allocation of resources to specific activities.
All functional business plans evolve from the strategic plan and define themselves through tactical operations.
The business environment is changing faster and more dramatically than ever before. Shifts in the demographics of the marketplace and rapidly changing consumer preferences and buying patterns mean that businesses must be willing and able to adapt quickly. The emergence and acceptance of new ways to shop and new types of virtual stores creates a fiercely competitive, continually evolving business environment. The number and variety of new products and services being introduced into the marketplace means businesses must be more alert and responsive. Recognizing the new realities of the marketplace is an important part of the market analysis. Local issues and trends can be analyzed and then compared and contrasted to national trends in an effort to assess the current local situation and create a new form of market intelligence.
Project management is a methodical approach to planning and guiding specific business projects from start to finish. It can be applied to any type of business and we see it widely used to control the complex processes of business development objectives. These activities consist of tactical and strategic plans through which a business owner can ensure that their business is constantly growing and excelling at the level they desire.
Project management consists of methods to improve processes, eliminate the attention from fault-finding or assigning blame, and focuses on working as a team to get rid of the wasteful activities that limit productivity. In applying this idea to an organizational strategy, one of the most trying tasks is encouraging employees to adopt a mentality of cooperation. A paradigm shift must be implemented by top leaders which can result in significant change in the way business is done in the minds of your employees. Keep in mind that it is crucial to make sure employees keep up a good rate of development within the business through this process.
Focusing on personal development creates the ability to improve ourselves in all areas and gain control over specific situations. This involves taking 100% responsibility for your health, your career, your finances, your relationships, your emotions, your habits, and your spiritual beliefs. It requires taking a hard look at yourself, consciously deciding what kind of person you truly are on the inside, and then getting your actions to be congruent with your true self. The goal is to achieve outstanding effectiveness while maintaining internal balance – where your thoughts, feelings, actions, and skills are all working together to create the life you truly desire. Always remember that personal development and business development are connected for the small business owner, you can’t have one without the other.
For an existing business, business development is the process of boosting the number of sales and revenue to gain new customers and target new markets that might benefit from the products and services that are being offered. The first thing that you need to do is generate leads for your products and services. Start by carefully planning and executing a very aggressive marketing campaign that will help you reach out to those people who are most likely to buy from you. If you are running a traditional business, you can use radio, TV, newspaper, and local magazines as your marketing mediums. However, if you are running an e-business, you can use effective internet marketing tools like PPC advertising, article marketing, forum posting, banner ads, paid links, SEO, blog marketing, social media marketing, and video marketing. It is very important that you have a solid idea about the people that you are serving. This will make it much easier for you to create products/services that these people will appreciate.