We all have plans, some are realistic and some are well - just plans. When running a business, you plans have to be very realistic. It's better to know you are doing bad that trying to convince yourself you are strong!
After starting businesses, learning along the way, having fun with my decisions and failures. Here are a few points that can help you as you plan and make tough decisions for your business to succeed.
Leadership is much like flying a plane, when you're up in the sky's, you can't open the doors or window.
"Most leaders grossly underestimate what it takes to lead effectively."
"Failing of leadership starting and ending at the top."
"Lack of a true motivating leader."
"Weak leadership. This results in improper resource allocation, lack of buy-in, poor follow-through, inadequate checks, misaligned goals/ strategies/ actions, inefficient rewards and punishments, cover-ups, etc."
No Plan Behind the Idea
"No Plan Behind the Idea"
"Most great plans aren't. They are just nice, high-level ideas."
Those of you that have attempted to execute plans that were as thin as the soles on Newman's shoes may easily relate to this: "'Strategic initiative?'
No, it wasn't 'strategic' and it wasn't an 'initiative'. Calling something a strategic initiative doesn't make it one."
This is characterized by assuming that things will run themselves after we get them started, which is about as likely as being hit by lightning while being eaten by a shark.
Instead, I suggest that implementing strategic plans is more like keeping plates spinning atop a number of pointed sticks. If we don't put forth a regular effort to keep them spinning, the plates will fall down and the sticks will end up in uncomfortable places.
"When the implementation phase begins there is not enough follow-through or follow-up for that matter from senior management."
"Poor and inexperienced management to execute the plan."
Communication channels. Since we can't get it right at home, with one in two U.S. marriages ending in divorce. What makes us think we're going to get it right at work?
Poor communications seems to take many forms. Apparently, some groups like to develop strategic plans, and then hide them under a rock. But they don't do it on purpose.
"The failure to communicate the vision and strategic objectives to stakeholders" may mean that the developers of the strategy aren't getting out enough information for folks to understand what they're supposed to do with it.
"New initiatives or objectives are outlined but not communicated throughout the organization as to how the new objectives should look and feel, what steps to take, time-frame, etc."
"Poor communication among team members responsible for decisions in implementation of tasks. Expectations and opinions are not shared openly, thoroughly, and effectively."
Overestimation or Underestimation of Revenues
If you have decided as a business that you will need additional funding, you will then need to prudently evaluate your needs and then determine the amount you need and when you need it. Most businesses seem to overestimate or underestimate their capital requirements.
Therefore, a very realistic business plan should consider any overestimation or underestimation of revenue. A business plan needs to look at every aspect of the business through the planning process.
To avoid unexpected revenues issues, a business plan should answer the following questions.
What are the most critical needs? How much will I need to operate my business until it becomes self-sustaining?
An Appraisal of the closest Competitors
A business plan should not solely focus on the business; it should also address the competition. A good business plan should include an appraisal of the competition.
As a business, you need to take a closer look into the strength of any competition on plane sight or else you will be substituted. To do this, a business must assess the current competition as far as terms of service and frequency of service are concerned.
Your business plan should assess how your business compares to the competition in terms of the flexibility, pricing and current services and products.
As a business, you can achieve this by surveying current as well as potential customers.
Key Employee Resumes
In most cases, a business plan may include a listing along with descriptions of key employees. Then again, as the business grows investors would be interested with the key employee resumes.
Investors and leaders alike may ask for such resume with the intention of wanting to know more about the employees. Basically, the business planner can include a short bio in the appendix section of the business plan that highlights the most important areas of an employee.
A Social Media Strategy is a must
Social media has grown significantly over the years, and it has been impacting businesses at different levels.
Therefore, a good business plan should highlight ways of using social media to their marketing advantage.
Any strategic considerations impact every aspect of the business. Approaching social media as part of the business strategy will allow your business to find the right use of social media with a maximum business value.
Preparation for Success
A good business will use its business plan to get ready for unexpected success. Most businesses, particularly small businesses do not like to think about the success.
When developing a business plan, you should include preparation for success. When a business does not prepare for success, chances are that when it achieves unexpected success, the entrepreneur will be forced to redo the plan.
An Exit Strategy for your business
Every business should have a business plan going forward for a number of years (At most 5 years). The absence of a business plan is simply bad management practice. However, even with a good plan, you still need an exit plan included in your business plan.
There are unexpected events that may force you to exit, such as when retiring or venturing into another profitable line of business.
Divine Tumenta is an entrepreneur and professional digital marketing expert who has worked in digital marketing for more than 8 years. He is currently founder and CEO of backlinkfy.com and a go to consultant for startups and small businesses in the USA.