Live Business Plans!

Business plans should be re-visited and referred to frequently eg. every quarter to compare your assumptions and estimates against reality. The plan should be updated and modified as needed. Make adjustments to contingencies and time frames for key milestones such as expansions, market growth or new product/service lines. This helps keep you focused and re-assess your strategy and business model.

Monitor the numbers real-time. Financial statements can provide a snap shot of the health of your business. If you project cash flow several months into the future based on reasonable expectations for sales and income, customer demand, regular payments (e.g. loans and rent), and other factors, you can then compare actual cash flow to projections. This process can reveal significant deviations which represent opportunities to improve performance / grow/curtail etc.  This will give you room to manoeuvre in the event of funding gaps, and opportunities for alliances, M&A activity etc. It is sometimes mind-blowing how overly-optimistic sales and marketing projections can be – and so much can hinge on them, including increasing spend and commitments in hiring, premises and IT. Get yourself a commercially focused CFO who understands the level of granularity necessary to properly evaluate sales projections. Give me a call! Make the most of your marketing $$.  Don’t waste $$$$ through acting in a vacuum or denying the true ROI (return on investment) of your commercial and marketing activities. Failing to take the right action on a timely basis could lead to a cash crisis and the collapse of your business.

Keep your finger on the pulse of the industry. Even slight changes can have a profound impact business!  The influences may be as far-reaching as a shift in demand for a certain commodity, seasonal weather, a new Apple app, the loss of a major customer/ sector, or as local as a new stoplight near your store.  Monitor macro (world) and micro (local) events; study sales records, and keep a running dialog with customers, suppliers, and colleagues.  You’ll have fewer surprises, and will be better prepared to anticipate and capitalize on changes.

Form productive connections and alliances. Although business growth usually means having access to additional resources, there may be other, more cost-effective options. Creating alliances with other businesses in your field and certain consultants, you can stretch your capabilities. These alliances can help you meet peak market demands and/or generate revenue from products/services that you may not have.

Revisit your sales and marketing plan. What has worked in the past, quite often is not working now. Consider incorporating Web 2.0 marketing including social media to your plan. Call on all employees to find creative ways to support sales efforts.