When you are planning for the future of your business, you often wish you had a crystal ball. While this is an unrealistic wish, the truth is there are a number of programs available that can give you the information you require. It is not enough to simply guess what the future will hold for your business. You need to invest in forecasting software which can provide you with the answers you need. When you are involved in strategic planning, you need to be able to take a look at several different business models with ease to help you decide what the right course of action for your business is.

Quality forecasting software can often work in conjunction with budgeting software so that you can analysis your current position and what is going to impact your business in the future. First, the forecasting software will predict what the demand for your product or service will be. It will use that to determine whether the number of employees you have now is appropriate. It will also take a look at your resources and determine whether you have what you will need.

Another important function of forecasting software is to help you decide how much you should charge for your goods or services. This will lead to an examination of how much money you can expect to make. The software will also help you understand the market and predict how the market will change. You should also be able to get an idea about which investments should be considered.

When choosing your forecasting software, you need to make sure that you pick a package that offers quality options. It should be able to take large amounts of data and then make an equally large number of forecasts quickly. It should be able to determine if there are any abnormalities in the data which need to be discarded. The program should be simple to use even if you are a beginner. Finally, you should be able to present a complete planning package that includes analysis of your data and forecasting. It is also easier if the software comes with the ability for you to create charts and graphs. This can allow you to present the material to others in an easy to understand way.

Forecasting is essential to a business that wants to succeed. You can not attempt to run a business on guesswork alone. Strategic planning relies on forecasting and you should be able to rely on forecasting software to give you the answers you need.

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!

Strategic planning is critical for any sort of business. Initial stages of business are considered the most critical as this requires the involvement of every aspect of the business.

What Exactly is Strategic Planning
Planning cannot guarantee any success but a business done without planning is sure flop. Strategic planning is a way of stream lining your thoughts into very essential details and to decide upon what has to be done and precisely when. A good strategic planning success in most cases and this involves planning with respect to the ratio of risk involved and resources to be accumulated. It brings a great amount of clarity to your business. Strategies of how to sell your product, how to do the marketing, how to add value to the product and most of all how to establish the brand equity in the market.

Benefits of Strategic Planning
Strategic planning enables to view your business in a macro aspect by still considering the essence of micro aspects. Strategic Planning is something which we foresee of the future about a certain business venture. Most often business are made to last. Strategic planning to an extend ensures a long term success by taking up the investment opportunities at a regular basis and mobilize the funds to grow it further.

Though strategic planning offer most of the ill effects in the business. One must make sure you should not chalk out over ambitious plans for your business. The planning should be precise but should contain detail so the business. Strategic planning has to be a routinely updated to ensure success. Board meetings at regular intervals for this cause shall do more good to the business.

For small business owners experiencing the obstacles encountered by newly developed and struggling small businesses, it is important to recognize the advantageous nature of business plan development. For a business to be successful and profitable, the owners and the managing directors must have a clear understanding of the firm’s customers, strengths and competition. They must also have the foresight to plan for future expansion.

Whether yours is a new business or an existing business in the process of expanding, money is often an issue. Taking time to create an extensive business plan provides you with insight into your business This document can serve as a powerful financing proposal.Developing a well thought business plan is an essential management tool. It identifies potential challenges and provides success strategies. It is critical for planning or operating a for-profit or nonprofit business as well as seeking investors, loans, real estate, or partnerships. Business plans can fulfill a variety of roles:

- The process of putting a business plan together forces the person preparing the plan to look at the business in an objective and critical manner.
- It helps the entrepreneur with starting a business to consider all options.
- It helps to focus ideas and serves as a feasibility study of the business’s chances for success and growth.
- It may show the business is not viable and help realize the idea is flawed.
- It is a strategic planning tool that can be shared with the investors, bankers or other funders, partners, and business development professionals.
- It is a strong communication tool for your business It defines your purpose, your competition, your management and personnel. The process of constructing a business plan can be a strong reality check.

However, the process of writing a business plan can sometimes be a painstaking experience. A business plan is very specific to each particular business However, while each business needs a unique plan, the basic elements are the same in all business plans. To complete an effective business plan you must dedicate time to complete the plan. Essential components include:- Executive Summary

- Company Summary
- Products or Services
- Market Analysis
- Strategy and Implementation Summary
- Management Summary
- Financial Plan including Pro Forma Profit and Loss, Cash Flow, and Balance SheetsRealizing that many small business owners are frustrated and overwhelmed by the process, business consultants have created business plan services that are aimed at making the creation of business plans as simple and effortless as possible.

Business development experts consult with entrepreneurs throughout the planning process, offering a variety of tools and resources to ensure the plan will be successful in achieving its goal.A quality finished product incorporates all necessary elements, including financial forecasts, marketing strategies, color charts and graphs, and is created in the Small Business Administration’s preferred format. Whether you’re seeking a business plan to attract investors, get a loan, or simply determine whether your idea is viable, an adequate planning process will focus your thinking and provide an objective and critical view of your business Realizing the vital role small businesses play in our nation’s economy, business consultants offering small business planning and development services are bridging the gap between a person’s dream of being a business owner, and the reality of opening their doors.

Strategic planning takes a lot of time anywhere from 40 to 100 hours if not longer depending upon the size and complexity of your business. However, you don’t have time because you are small business owner and wearing a lot of hats as the owner or president.

Many small business owners are in this boat of knowing that planning is a good thing, but not having the time to plan. Let’s take a few quick moments to define some terms that may help you as you look toward 2008.

Simple mean easy to use and not complex. A one page document is simple including easy to read font size and overall structure. Strategy means to deceive the enemy. In today’s business world, that means to out think and outlast the competition. Business means that the information contained is necessary to effectively running your business where money is exchanged for goods or services. Growth means that you know where you are and where you want to go. Action means that there are goals to be executed. Plan means that you have an overall thought process from which to manage and work the strategy and the goals for the business.

Beyond the definition terms, a simple strategic business growth action plan would include some of these key elements:

Time Frame (should not exceed 12 months)
Company Name
Core Foundational Business Statements (Values, Vision & Mission)
Tag Line or Unique Selling Position
Dashboard of Key Performance Indicators
Goal Categories
Goals for each goal category including target date and completion date

When all of these elements are united, you have a basic building template from which to work ON your business instead of always working IN your business.

Now is the time to start looking at your business through a proactive planning lens instead of a reactive one of “Spray and Pray.” Remember failure to plan is planning to fail.