A strategic business plan is the foundation for the planned strategic actions necessary to outthink and outlast the competition. Within the strategic plan is the strategic action plan that records all of the hits, misses and even errors for the current as well as past year. NOTE: A simple strategic plan definition is who does what by when and its construction is dependent upon the analysis of real time information.

With the current year quickly coming to an end, now is the time to review the business hits and misses for the last year. Success in business is directly tied to how much time is invested in working on the business instead of just in the business. These 7 top tips can quickly double your business results in 2007.

Tip One: List all of your hits. Hits are all revenue from the sales of your products and services.

Tip Two: List all of your misses. Misses include:

Lost proposals Lost contracts and sales Lost opportunities such as not asking for referrals Lost performance from management to employees
Tip Three: Assign a dollar value to all of your misses. Then compare the results from this tip to Tip 1. Note: As a business coach, I have discovered that this simple reflection may create significant pain for the business owners, entrepreneurs or executives because they have been so busy working in their businesses they have failed to work on their businesses.

Tip Four: Learn the causes of the misses. Misses may be the result of poor job specific skills from sales to customer service, poor planning or lack of individual accountability. This real time information is necessary when constructing your Strategic Action Plan.

Tip Five: Identify your desired business results for the next year. Using the W.A.Y. S.M.A.R.T. goals criteria (W-Written, A-Aligned, Y-Yours, S-Specific, M-Measurable, A-Attainable, R-Realistically set high and T-Target date, time driven), you avoid those past missed opportunities and turn them into homeruns for the next business quarter or business year. These goals are based upon data received from the previous 4 tips.

Tip Six: Construct your business dashboard. By identifying key performance indicators and monitoring these on a daily or weekly basis, you can determine that your firm is operating at peak performance and quickly make any necessary course corrections to achieve the desired business results.

Tip Seven: Make a weekly appointment to work on your business. Schedule at least 1 hour each week working on your business. Use this time to review both your dashboard and strategic business plan. Your strategic plan (Who does What by When) should also include, but is not limited to your marketing plan, sales plan, growth plan and financial plans. Using your dashboard and other tools including organizational assessments, you can quickly monitor your business progress and become a proactive decision-maker instead of a reactive one.

These 7 tips can quickly help you create your own strategic action plan and can double your business results within 30 to 90 days.

Now you are ready with the guiding torch for your organization i.e. the strategic plan. The key requirements and associated resources and implications are well understood and based on them the bible has been prepared. Now all that you need is actual implementation of this laborious theoretical preparation.

This implementation is in fact another landmark where various organizations tend to falter. The extensive research and resources used up for the drafting of strategic plans often make organizations believe that whatever they have understood and devised is the optimum and therefore requires no second thoughts. However, what has been ignored is the fact that plans can be tested only if they meet actual usage. Only planning or theoretical application cannot be guarantee complete success. Actual implementation yields the true picture.

This stage of implementation often results in a consequence wherein it is required to monitor and evaluate the implemented plans to understand if they are moving the desired direction. But, many experienced and learned thinkers tend to falter here. They believe that what ever has been devised is the best. Yet, it must be understood that what is great for one might be average for others. Therefore, there could be loopholes. Hence, it is suggested to keep a scope of change based upon extensive monitoring and subsequent evaluation based upon inputs and output. Any implementer must not be closed for these changes. Keep a scope for changes!

Appoint Concerned Personnel:
To achieve the desired make sure that your plan appoints the concerned personnel responsible for close monitoring at the implementation stages. Even minute deviation from the planned could render the entire cycle ineffective at the core. The frequency of monitoring depends upon the execution and process deployed.

Evaluation: Key Considerations
To evaluate the outcome of devised strategy, try answering the following questions:

o Are the goals being achieved?

o If no, than is the key reason behind lack of realization of goals is lack of coordination or poor planning?

o Are the resources adequate?

o Do employees understand and implement as desired?

o Should the goals be altered?

o What are the learning outcomes?

o What is the implementation Impact of future strategy?

Now that you have carefully analyzed answered the mentioned questions, make sure to record and report the same in an easily comprehendible manner. As these observations would go in a long way in devising you organization’s strategy and associated growth.

Based upon these observations and recommendations at various level, formulate the guideline to the desired changes in the overall strategy. These changes could be minute or major but careful analysis of the same would sure result in better managed and growing organization.

Contrary to many entrepreneurs’ expectations most investors won’t read an entire business strategy plan, especially when the plan is more of an operational plan with too much detail. A strategic business plan is critical to your success in business however is not as critical as you might expect when raising capital. If your proposal doesn’t appeal to an investor then many will not read beyond the executive summary. In assessing between 10-30 businesses per month, investors and venture capitalists need to be ruthless and can’t just waste their time reading every proposal hoping that a more exciting proposition will come along at the end. Importantly the investor will draw conclusions from various facets of the proposition, such as the track record of the management team to work out whether it is necessary to check out every last word written in the strategic plan.

The message of the story – make the executive summary correct.

An executive summary is a 2 to 5 page summation of the significant information in the actual investment business plan.An exec summary is a 2 to 5 page synopsis of the really important points in your investor business plan.The executive summary is a 2 to 5 page synopsis of the crucial points in the strategic plan.

Usually an investor will assess the executive summary and gauge whether the opportunity and this investment really adds up, whether management look like they know what they are doing, and has been carefully thought through. Is this business reasonably going to take advantage of the mentioned opportunity? They’ll also want to conclude that the timing in the venture is appropriate – not too late & not too early. Cosmetically, the plan on the whole has to be clear, concise where it has to be and fleshed out where applicable.

Keep in mind the company idea does not have to be a paradigm shift, simple can be best and so wherever it isn’t don’t make it any much more complex than it has to be.

To arrive at the above conclusions, a excellent executive summary would include the following – and this is as much a information for what a great proposition looks like as what should be included in the executive summary:

1) The issue must be stated clearly, how large the issue is and that this problem is fitting for a company answer – following all not all difficulties within the planet ought to attract a business answer.

2) The market must be growing and be large sufficient for an expense chance to make sense. Investing in a shrinking industry isn’t an appealing proposition. Further, the expense will make much more feeling when the market discuss targeted isn’t a materials share from the overall market eg less than 5%, and still results in an appealing return for the investor.

3) The answer to the problem should be strong and shielded against the opposition, through a reasonably competitive edge, or patented protection all of which indicate the service or product will be outstanding, which is important. Further we must have a wide understanding from the competitors and what they have achieved and are likely to accomplish.

4) To be given uniqueness, the executive summary must articulate what the value proposal is to the end client, and determine that end client, and qualify the group targeted.

5) The management team must be introduced briefly (and in more detail within the investor business plan, exhibit why their history is appropriate for that business, and if they have not come from the business, demonstrate their desire to seek proper support.

6) The synopsis should demonstrate robust financials, with a return five-to-ten times inside of a 5 yr timeframe and note that recurring revenue reduces risk

7) The valuation should be sensible – thought should be paid to industry benchmarks – do this carefully as this what an investor will do. If there is one flag against management and entrepreneurs that often causes disappointment it is extreme valuations by entrepreneurs. It does nothing for management standing.

An exit should be stated, if possible with a selection of specific strategic partners quoted. So if you are seeking to be acquired…who are you ideal targets

If all these points were included in the executive summary, presented clearly and concisely and made logical sense, an entrepreneur ought to expect strong results, subject of course to the proper numbers falling out and matching the investors expectations.

Businesses tend to avoid doing their annual business plan thinking that it is an arduous task that does not accomplish much. Formulating your annual plan is, however, critical to your business success and if done correctly should be quick, easy and generate bottom line results.

Rather than creating a business plan that achieves no results, other than to gather dust, you should be writing a strategic and operational plan. The words ‘strategic’ and ‘operational’ are important as they give purpose and results to the plan. Your annual plan needs to be strategic so that you know where you are going and what you would like to achieve from your business or division. The plan needs to be operational so that it will tell you how to get there. It will determine the strategies and goals that need to be achieved to reach your end point.

Strategic business planning is about deciding on the future you want for your business or division and then deciding how you intend to obtain that future. If you have been in business for a number of years and your results each year are much the same as the year before then obviously something will have to change if you would like to see an improvement. It comes down to the saying: If you keep on doing what you have always done you will get what you have always got.

The steps we outline below are perhaps unconventional to people familiar with business planning, but then most business plans don’t deliver results. All too often business plans are created out of a corporate requirement rather than a focused result. This system of business planning has been proved to deliver results for over 20 years. Try something new and you may be surprised by the outcome.

To achieve results it is important that each step is well thought out and no step is omitted. Equally important is that the steps are completed in an open and collaborative environment that encourages learning and new ideas.

Step 1 – Vision and Mission Statements

Businesses and divisions tend to ignore the importance of their vision and mission statements. These statements should tell you where you are going and why you are in business. If you don’t know why you are in business and why someone would buy from you, then your clients and customers will not know either and will go to your competition.

A vision statement should paint a picture of the business you would like. It should get you thinking about your business and dreaming about what is possible. You can’t exaggerate your vision so go wild and have large dreams. You won’t know where it will take you unless you give free reign to those ideas and get excited.

A vision statement can contain what you would like to see in revenue in a number of years. You could want to become a “world leader” in something, or become a “specialist” in something else. What would you like out of your company? Let it be more specific than flowery language that sits in your entrance foyer.

A mission statement should answer the question as to why your business or division exists. Why would someone buy your product or service? What makes you different from your competition? Who are you selling too? What problem are you solving? Keep your mission statement short but answer why you are in business. Nike is a good example – ‘Do it” Who needs more?

Ensure that your mission statement supports your vision. Ensure that it is concise and unique to your business. Try and capture your competitive edge and unique selling proposition in a statement that motivates.

Step 2 – Celebrate Successes

We tend to be quick to criticize, slow to praise. But by recognizing your successes, you increase your confidence to move on to make new things happen. What we have failed to accomplish always stands out in our minds, but our successes are where the opportunities lie.

Take some time to think about what you achieved in the last year. Whether it was reaching a goal you had set or handling a crisis that arose. A thank you from a client indicates a success as does appreciation from your staff. Make a list of all the successes you achieved and find ways that you can expand on those achievements.

Step 3 – Learn from Failures

It is also important to examine where we missed the mark and then identify what didn’t work. If you do not analyze your failures they will probably occur again as you do not give yourself the opportunity to learn from them. You are your own best teacher, the best source of your own wisdom. We never really need advice and hate it when we get it because we hate being told what we know already.

Make a list of your failures and mistakes and for each examine why it failed and how you can prevent the failure in the future. What needs to be changed? What needs to be put in place? What is missing?

By examining both what worked and what didn’t work, you can find the lessons that you need to learn. You can then identify opportunities and the way forward.

Step 4 – A New Paradigm

Using steps 2 and 3 to analyze where you succeeded and where you failed you will then be able to discover if there are any common factors that cause you to succeed or fail. You might find that your failures are all in a specific situation or there is some other common factor. This will tell you how you limit yourself by what you assume to be true. Everyone has assumptions about their truth and these assumptions are usually not true but only serve to limit your true potential.

Complete the following sentence … “I’d love to ____, but I can’t because I’m/we’re _____. What are the words in the second blank? This is an example of a limiting assumption. The second blank need not be about you but could be about your market, your clients, your competitors etc. To move forward and achieve your vision these limiting assumptions need to be changed, you need to take responsibility for where you are.

Change your limiting assumptions to empowering perceptions. Find a way around the external factors you feel are limiting your business or division. There are no “cant’s”, only new alternatives and new possibilities. Create a new paradigm.

If you really are not able to get around a “can’t” then you need to examine how important this factor is to your business and therefore whether you are in the right business.

Step 5 – Values

By understanding your values you will understand what motivates you. Your company and business goals need to reflect personal goals as well. If not this misalignment will cause discontent and poor performance as staff will not align with the goals. You will only be able to achieve your goals successfully if they are supported by your values. Think about what motivates you, what gets you out of bed in the morning. Make a list of the values you cherish or wish to abide by. Prioritize them. Be clear about what makes you feel good about yourself. What value does that represent?

If your business supports your values, such as honesty and integrity, it has a greater chance of success than one that requires you be dishonest on a daily basis.

Step 6 – Strategies to Success

Strategies define how you plan to grow your business and achieve your vision over time. They are critical to setting direction and keeping your business on track. Strategies are often industry specific and if you follow the core strategies of your industry your business will have a greater chance of success.

Create your strategies based on opportunities and threats that your business faces. Think about what is critical to growing and operating your business and achieving your vision.

Remember that you can’t be all things to all people and you should therefore specialize in what you do. Strategies can include topics such as technical knowledge, reputation, visibility, quality, employees and service.

Select up to 5 topics that are critical to building your business and achieving your vision. Formulate a strategy statement for each topic and ensure that it is easy to understand and results in growth and profitability.

Step 7 – Specific Goals

Allow each of the first 6 steps to shape your goals. Write a short list of what you want to achieve in the different areas of your business. Keep your vision in mind so that you shape your goals to achieve that vision.

Goals differ to strategies in that goals should always be SMART goals:

Specific/Simple
Measurable
Attainable
Relevant
Time-focused

Strategies are big picture items that work towards your vision. Goals should have number and dates in them to serve their purpose. If goals are not SMART goals they are not specific enough and will not provide focus on the tasks to be achieved.

Goals can be formulated for each area of your business such as financial, marketing and sales, human resources, operations etc. Ensure that meeting these goals will achieve your vision and mission.

As goals are measurable they can be graphed and also broken down in to weekly or monthly goals. If you are trying to increase sales over a one year period take the amount that you trying to increase it by and make smaller goals to achieve on a weekly or monthly basis. The good thing about graphing them is watching them go up!

Conclusion

For an annual strategic business plan to deliver results it needs to be used on a weekly basis. Nothing new will happen if you put it on your shelf and forget about it until next year. Every week or month (depending on your business) you should evaluate the goals you set for yourself and your business:

o Did you achieve them?

o If not, what was the problem? Can you recover and move forward?

o If yes, congratulations are in order

o Do you need to change any goals? Have you shifted your focus since your plan?

Living by your plan will keep you focused. It also ensures accountability in a team setting and therefore improves performance and productivity.

One word of caution however, using these 7 steps in a team environment requires open communication and contribution from all members. If you are unable to generate open communication in your team, then facilitation by an outside person can be invaluable.

There are a number of excellent systems on the market that can facilitate this business planning process. They have been proved to be affective in delivering results to companies of all sizes and in all industries. They differ in certain aspects of the 7 steps listed above but they achieve the same purpose.

Happy Planning!

The hard part about joint ventures is the actual work in convincing a potential JV partner about the merits of the venture. Once you have a JV partner in hand, the next step is communicating together and working toward forming a solid business plan that will guide you to success with the venture.

A joint venture marketing business plan does not need to be a fully composed booklet like the type mainly used for acquiring loans or other funding. Of course, the more detail you and your JV partner can put into your strategic plan, the better guide you will have. However, your business plan could be as simple as a one-page point-by-point strategic outline.

Goal of Joint Venture Marketing Partnership

Your number one assignment in forming a JV business plan is to spell out the goal for each party. The goal doesn’t necessarily have to be the same. Your specific goal in the partnership may be to get access to wider marketing base, while your JV partner’s goal may be to increase revenue through the sharing of technology and expertise.

Be sure to spell out the goal so that neither you nor your JV partner has any miscommunication about why you are in the partnership.

Assignment of Duties

What specific duties will you perform? What will your JV partner do? Again, to avoid any misunderstanding in the division of duties to reach your JV partnership goals, write out the duties that each will perform along the way.

Funding Sources

How will you and your JV partner split expenses? Is your JV partnership large enough that it may need a bank loan? In your JV business plan, know how you and your partner will fund the venture. It may be as simple as contributing $1000 each into a JV “kitty” to get the venture rolling. Wherever the funding comes from, clarify who will pay for what expenses and how much each is willing to contribute.

Resource Allotment

Will you and your joint venture marketing partner need additional resources in addition to money? Perhaps you will contribute some of your employee expertise, or your JV partner will utilize his distributing network to make the JV a success. Be specific in how you will allot the resources needed.

Division of Profits or Benefits

If there is a profit to be made and split from the joint venture marketing endeavor, how will the funds be allocated? Perhaps it will be a 50/50 profit split, or depending on one partner’s additional resource allotment, the profits may be split 70/30. Be sure you each know what you will be receiving from the partnership.

Exit Strategy

Finally, make an exit strategy in your business plan, which will allow you and your JV partner to know when it is time to fold the cards. Perhaps your goal is a short-term partnership that will terminate after a specific event. Or, it could be an ongoing joint venture marketing project until one or both of the partners says they are ready to terminate the agreement. Spell it out clearly so that you both know how to wrap up the JV cleanly and without ill will towards the other.

Copyright (c) 2009 Christian Fea