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Starting a Successful Small Business
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Running a Successful Small Business
One of the common mistakes made in setting up a small business is the confusion of strategic plans and business plans. A business plan is very detailed and full of substance; a strategic plan is much shorter, but it provides the basic framework for the business plan.
A strategic plan is essential in a business because it gives you the goals for the business and an idea about the effort it takes to achieve them. Many small business owners get so busy in handling the essential business tasks that the focus of the business is completely lost. Not knowing where you want to go with the business is unhealthy, so you should always have a strategic plan in place. The strategic plan is not the recipe for your success but without it, your business will fail.
The vision of the business should be developed realistically. The picture you come up with should be what you perceive your business to be in the next four to five years. The plan should be as crystal clear and easy to understand. While writing this part of the strategic plan, you should carefully consider the following: markets, customers, location, staffing processes.
Mission
The business’ nature is expressed in the mission statement, indicating why you are in business. Most mission statements begin similar to this: “the primary objective of our organization is to design, develop, and manufacture these specific products”. Such a statement brings out your true intent in a clear manner and tells your customers exactly what the business is all about. Do not use unclear phrases such as “we’re in the flying business” or “we are in business to make money to help you live comfortably”.
Objectives
The objectives outline what you project your business to be five years from now, and what the responsibilities and expectations are for each employee. The objectives should state the underlying issues of the business and cover issues such as technology, offerings, market, growth and profitability.
Values
The values section covers how the business will answer to customer, society, suppliers, employees, shareholders and all other personnel involved in the business.
Strategies
The strategies section is the actual plan of how the business will proceed to achieve the goals mentioned in the mission and the objectives statements. The strategies should focus on issues such as organic growth, acquisition plans and diversification; or you can implement a strategy for the business as a whole. Plans can contain strategies such as the internal cash flow that will fund all future funding of the company, the replacement of old products over a given period.
Goals
Goals are important tell you exactly the direction in which the business will head. For example, you could say that five years from the start of the business the total sales should be over five million dollars per fiscal year. The goals should be realistic, accomplishable and consistent.
Programs
Programs tells you exactly what should be done and when so the goals can be achieved. Points that should be covered in your programs section are be deadlines, budgets, timescales and performances.
Small Business Setup
One of the common mistakes made in setting up a small business is the confusion of strategic plans and business plans. A business plan is very detailed and full of substance; a strategic plan is much shorter, but it provides the basic framework for the business plan.
A strategic plan is essential in a business because it gives you the goals for the business and an idea about the effort it takes to achieve them. Many small business owners get so busy in handling the essential business tasks that the focus of the business is completely lost. Not knowing where you want to go with the business is unhealthy, so you should always have a strategic plan in place. The strategic plan is not the recipe for your success but without it, your business will fail.
Here are some key elements every strategic plan should
have
- It should act as the base for approvals and decisions
- It should act as an information center to inform, motivate and involve them
- It should monitor the performance of the business
- It should activate changes and be the base for the next step
in the plan of action
The strategic plan should
be conceptual keep and people focused and motivated. The plans outlined
in the strategic plan should be reachable and be realistic.
A strategic plan should involve the following points, (explained
in detail below):
- Vision
- Mission
- Objectives
- Values
- Strategies
- Goals
- Programs
The vision of the business should be developed realistically. The picture you come up with should be what you perceive your business to be in the next four to five years. The plan should be as crystal clear and easy to understand. While writing this part of the strategic plan, you should carefully consider the following: markets, customers, location, staffing processes.
Mission
The business’ nature is expressed in the mission statement, indicating why you are in business. Most mission statements begin similar to this: “the primary objective of our organization is to design, develop, and manufacture these specific products”. Such a statement brings out your true intent in a clear manner and tells your customers exactly what the business is all about. Do not use unclear phrases such as “we’re in the flying business” or “we are in business to make money to help you live comfortably”.
Objectives
The objectives outline what you project your business to be five years from now, and what the responsibilities and expectations are for each employee. The objectives should state the underlying issues of the business and cover issues such as technology, offerings, market, growth and profitability.
Values
The values section covers how the business will answer to customer, society, suppliers, employees, shareholders and all other personnel involved in the business.
Strategies
The strategies section is the actual plan of how the business will proceed to achieve the goals mentioned in the mission and the objectives statements. The strategies should focus on issues such as organic growth, acquisition plans and diversification; or you can implement a strategy for the business as a whole. Plans can contain strategies such as the internal cash flow that will fund all future funding of the company, the replacement of old products over a given period.
Goals
Goals are important tell you exactly the direction in which the business will head. For example, you could say that five years from the start of the business the total sales should be over five million dollars per fiscal year. The goals should be realistic, accomplishable and consistent.
Programs
Programs tells you exactly what should be done and when so the goals can be achieved. Points that should be covered in your programs section are be deadlines, budgets, timescales and performances.
