Since you’ve made the commitment to go into business, as a Freelance Solopreneur who offers B2B or B2C services or an Entrepreneur, who employs a leadership team to operate a complex venture you, the founder and leader, will be expected to position your enterprise for profitability and success.
Strategic planning is the process by which business leaders aim to create sustainable success for their organization and it is the essence of business planning. Strategic plans typically forecast the upcoming 36 months. Strategic planning is eventually undertaken by all business leaders who fully grasp their responsibilities.
Freelance Solopreneurs might request that their advisory board members participate in the strategic plan development. Entrepreneurs can count on their team leaders and they may also invite other staff members to contribute to the process.
Step 1: A SWOT Analysis to reveal where the organization is today
Suggest that the planning team use the classic strategy planning tool, the Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis matrix. SWOT asks the planning team to acknowledge and document the current reality of the organization, in preparation for deciding how and when to move forward with plans for growth.
In the SWOT, basic information such as identifying resources that can be considered competitive advantages and factors that are considered minuses, start the process. Note that the Strengths and Weaknesses categories ask the team to acknowledge internal factors, that is, conditions that the organization can influence. The Opportunities and Threats categories hold external factors that the organization can strive to exploit or avoid as needed, but are unable to control.
Perhaps the most important document for the planning team to examine is the Income (Profit & Loss) Statement. Over the previous 8 to 12 quarters, have total net sales revenues met the forecast projections? What is the trajectory of (top line) gross sales? The P & L includes categories for each product and service that is sold and reveals the history of sales, gross and net. That data allows for reasonable projection forecasts to be made for sales revenue performance in the near term and up to three years out. From the P & L. the team will also acknowledge production or acquisition costs of goods sold for each product and service; all marketing and advertising costs; selling costs; fixed operating expenses; payroll expenses; and taxes, local and federal.
Your accountant will be an excellent resource for financial data analysis (whether or not your team includes a fiscal controller) and will be able to recommend attainable goals that will strengthen the company’s fiscal future, information that is essential to the SWOT process.
Statistics and other Information on market share, current and newly arrived competitors and changes in technology, government regulations, or the priorities and preferences of target markets, which can either help or hurt the plans for long-term growth and success, can be culled from quarterly or annual marketing data and reviewed during the SWOT process. Quality control, operational processes and customer service protocols should likewise be included in the SWOT Analysis.
Step 2: Use the SWOT results to determine your company’s best growth goals
Once the strategy planning team has a clear picture of the current conditions of the business, the next step is to decide what growth could look like for the organization. It is strongly recommended that the team research potential growth opportunities for the business, to first understand where expansion can be expected to be sustainable and second, the short and long-term expectations for the proposed expansion.
Plans for operational efficiencies, such as improvements in service delivery, customer service protocols, quality control and inventory management could also be evaluated and strategies for improvements formulated during the SWOT, since these elements can impact business growth and perception of the brand.
Decision-making is a huge part of leadership and the team will demonstrate its prowess here. in Step 2. Your team will have been guided by a comprehensive and candid SWOT Analysis, which allows the team to develop plans and move forward with confidence.
Step 3: Strategies, Action Plans, Monitoring and Review
Once the direction for growth has been determined and the financial and operational upgrades needed to promote that growth have been identified, then a list of growth objectives can be proposed and agreed upon by the planning team. Once the growth objectives have been officially accepted, then the affiliated strategies and action plans, with time tables and milestones to mark interim demonstrations of success, can be developed, discussed and accepted by the team,
Major planning initiatives benefit from monthly or quarterly review, so that incorrect assumptions and forecasts can be quickly revealed and corrections made. An internal communications plan designed to keep plan participants and non-participating staff apprised of the strategic plan’s progress supports the motivation to continue to carry out the action plans that drive success on the ground.
Thanks for reading,