Why Is Stage 5 of the Business Strategy So Difficult?
If you haven’t done it already December is the time you will probably be thinking about next year 2019 – what will it hold for you in your business and personal life? Avoid the 6 mistakes business owners make when developing their business strategy and increase your success in 2019.
As a business owner what happens in your business can have a huge impact on your personal life, so you need a strategy and a plan which will get you to where you want to be in the time frame that you have set. As Benjamin Franklin said “If you fail to plan, you plan to fail” and it’s true. Without a goal and a plan how do you know if you have succeeded?
So here are the 6 mistakes that business owners make with their business planning.
Thinking that the strategy is a plan. A strategy is the “Why” and sets out the goals and how the business will achieve them taking into account the sectors, resources and culture needed to achieve them. A plan is the “How” and sets out the steps and measured actions (KPI’s) needed to ultimately achieve the goals.
We don’t have a written strategy. “We are always busy” is an excuse often used by business owners without a plan. Usually this is used by businesses which react to their customers demands and keeps them busy with the the supply of goods and services that the customer wants, but which may not be as profitable as the goods or services that they could be supplying.
We have a business strategy devised years ago and it works. At least they have a strategy; however, things change over time. Change is constant, just take the rise of social media and how that has affected buying and selling practices. Without regular reviews and updates to the strategy your business is at risk of losing out your to competitors who have their fingers on the pulse of the market/sector and adapt accordingly.
We plan every year but are still not achieving the results we hoped for. The business strategy plan is in place, however working in the business rather than on the business is seen as being more important by many owners, especially in busy periods, and the time for working on the business is not set in ‘tablets of stone’. This means that they don’t happen and these opportunities to monitor and take remedial action are lost. You need time to work on your business on a monthly basis, for you to review progress towards your goals and take action. This should be diarised as if you are having a meeting with your most important customer.
The Strategy is not communicated to all employees. If the goals of the business are not communicated to, or understood by your employees they will be disengaged. Your business strategy should be communicated to all employees and make clear what culture you are trying to create with regard to employees, customers and suppliers.
The business strategy is not a working document. It takes a great deal of management time to design a comprehensive business strategy yet, once designed and communicated to the employees and other stakeholders, is not referred to by the senior management and directors of the business until it is time to start the planning for the next year.
A business strategy is a working document to be regularly reviewed and adjusted to reflect changes in your business, the sector in which you operate, the industry, politics, economy etc. that could affect your business, for better or worse. Any changes should be communicated to all stakeholders,
Planning the strategy is the easy bit; implementation of the strategy – Stage 5 – making it work is often where it can fall down. Have a named director responsible and accountable for your strategy implementation to dramatically increase your chances of success.
Where are you today & where do you want to be in 12 months time? – Getting the strategy right will help you achieve your dreams.
About the Author – Paul Clayton FISM
I work with successful SME business owners and Directors who want to increase their success. I help businesses to develop and grow through increased customer focus and engagement to boost sales to new and existing customers. My belief is that for you to consistently develop and grow your business customers must be the focus of everything that you, with planned, positive action taken to continuously improve your People, Processes & Profits.
If by working together, we can get you where you want to be quicker, easier and with less risk I need 4 pieces of information about you and your business
- Where you are now?
- Where do you want to be?
- By when?
- What is stopping you getting there?
Get in touch with me now by completing our free online business analysis and arrange a no obligation consultation, valued at over £200, of up to 30 minutes on the phone or Skype/Zoom to identify and agree any actions that may be needed for you to increase your success. You have nothing to lose as I can guarantee that you will take at least 2 positive actions from the consultation to improve your business.
Or contact me directly to take the next step on the road to your success.