Checklist Of 12 Basic Steps To Help Your Business Grow

The article 'Business Plan Preparation' enabled you to gain a thorough understanding of your business and the direction it should be taking. In this article we outline 12 steps to action this understanding.

1. Agree process
   
   Prepare a structure for your plan and decide on your team to complete the plan. Set the key goals for your business and agree upon the process to be adopted and the timetable to complete the plan. Assign responsibilities.
   
   
2. Know your business
   
   What business are you really in? Make sure you understand your industry and your particular segment of the industry. What are the recognised critical success factors and key result areas? Identify the specific issues facing your business in terms of your history and in terms of best practice.
   
   
3. Collect information and gather data
   
   Undertake market research on your industry and competitors. Gather historical information about your own organisation. Uncover the issues facing your products or services. Research the trends and developments in your industry.
   
   
4. Analyse your information
   
   Look at your company's strengths, weaknesses, opportunities and threats through a SWOT analysis (strengths, weaknesses, opportunities and threats)
   
   The strengths and weaknesses are internal factors.
   
   The opportunities and threats are external factors.
   
   Build on your strengths.
   
   Reduce your weaknesses.
   
   Manage your threats.
   
   Maximise your opportunities.
   
   
5. Conduct a PEST analysis (political, economic, social and technological factors)
   
   A PEST analysis addresses wider macro issues over which it is unlikely the business has any direct control. However maintaining an interest in and monitoring issues and trends that may impact on your business is crucial. Your business may be in position to recognise and take advantage of a "window of opportunity" before the rest of the market.
   
   Or conversely, you may need to take corrective action or implement strategies that will pre-empt an event that may have a negative impact on your business. Questions you may need to ask: Can the business be unduly influenced by political legislation or changes of Government? Can the technology be superseded? 
   
   
6. Plan your future
   
   Decide on:
   
   Vision - where you want the business to be.
   
   Mission - the purpose of the business and how this will be achieved in general terms.
   
   Objectives - based on the key management goals and prioritised.
   
   Strategies - broad statements as to how the objectives will be met. 
   
   
7. Schedule implementation
   
   This should list each initiative that you are proposing to adopt to ensure the achievement of each strategy.
   
   Each initiative should be assigned priority, timing, responsibility and cost. Delegate authority and assign resources.
   
   
8. Document the plan
   
   You are now ready to document the plan. Compile the results of the previous seven steps.
   
   
9. Give ownership
   
   Ensure your key management and staff have a feeling of ownership over the end product.
   
   
10. Consider outsourcing and professional assistance
    
    External consultants can bring a level of specialised knowledge and expertise to your planning process. They will be objective and have additional resources. Talking to insolvency practitioners, accountants, business coaches, lawyers, solicitors and employer organisations can help you to understand why and how your business ticks. They can keep you up-to-date with changes in legislation.
    
    Regard them as important assets in protecting the value of your business. If you go down this track, ensure you maintain ownership of your final business plan.
    
    
11. Executive summary
    
    A brief synopsis written at the completion of the planning process. Include:
    

    • Statement of business objectives.

    • Include your core mission statement and summarise the short and long term objectives.

    • Background and organisation.

    • How and why the business has developed.

    • Market structure and plan.

    • Size, segments and competition - detail the company's marketing strategies to achieve its stated objectives.

    • Organisational plan.

    • Key management resources - organisation and administrative functions.

    • Services/product summary.

    • A summary of production or service issues.

    • Implementation schedule.

    • A summary of action-oriented points which must be completed to achieve set objectives - include business development.

    • Initiatives to grow the business.

    • Financial plan.

    • Financial projections and assumptions - provides a measuring stick to gauge the actual performance against budget.

    • Annexures - used to provide detailed information supporting matters summarised elsewhere in the business plan.

12. Monitor and update
    
    The planning effort will be fruitless unless you regularly monitor the outcomes of your agreed initiatives. Update the plan quarterly and communicate the changes to key stakeholders.

Pitfalls

You will be setting yourself up to fail if you:

• plan on a short term basis only

• lack a commitment to the process

• lack involvement of key staff

• lack objectivity

• believe business planning is only a budgeting exercise

• don't recognise weaknesses in your business

• don't monitor and update implementation

• don't implement recommendations

• bind your business plan into a pretty report - this creates an air of finality - keep it loose-leaf

• become so involved in sales and marketing that you fail to plan for the financial aspect.

Reprinted with permission of NSW Business Chamber. For more information about this article or NSW Business Chamber, its products, services and membership, please call 13 26 96 or visit the web site: www.nswbusinesschamber.com.au
First published: 26 March 2007.
Last updated: 26 March 2007.