What’s The Strategy Behind Your Business?
The course is set, it’s time to go … but wait! Where are you going and what’s your plan for getting there? You wouldn’t necessarily embark on a roadtrip without a map, money for gas or a general idea of where you’re headed, right? The same holds true when it comes to owning and managing a business. Putting together (and implementing) a strategic plan will help you map your journey toward success.
Success rarely just happens. In fact, it takes a lot of hard work, planning and direction from your management team. Furthermore, it requires company-wide dedication that aligns with your entity’s comprehensive roadmap – also known as a strategic plan.
A strategic plan not only allows management to align resources, it encourages associates to work toward a common goal while identifying areas for improvement and providing direction in responding to external and internal business issues. Companies that implement a strategic plan also benefit from improved internal communication and innovation.
Here are the stops you need to take on your roadmap to success:
Listen to episode 56, “Keep Your Business Healthy, Conduct A Yearly Business Physical,” on Rea’s award-winning podcast, unsuitable on Rea Radio, featuring Alan Hill.
First Stop: SWOT Analysis
The strategic planning process begins with a thorough review of your company’s strengths, weaknesses, opportunities and threats. Then determine how your company can take advantage of the strengths and opportunities you identified. How can it minimize the exposure of the vulnerabilities and threats that were revealed? Analyzing your company’s performance record, outlook and business plan can provide you with a better understanding of the past and clear guidance for the future.
Second Stop: Focus Your Energy
In simple terms, a strategic plan paints a picture of what a company should look like at some point in the future, say three to five years. Once designed, the plan should provide you and your team with clear guidance toward attainable, timely goals. The ability to set these goals and stick to them can help you determine your company’s true potential for success.
As a business owner, you obviously want your company to be successful. You might even want your company to survive so it can be successful for future owners, too – especially when those future owners are family. A commitment to a robust strategic plan will provide you with greater opportunity for success.
Rea’s valuation and transaction advisory services team has assisted many businesses with their own strategic planning Initiatives. Contact us to learn more or check out the articles below for additional tips and insight.
By Mary Beth Koester, CVA, CEPA (Dublin office)