Top Tips
Businesses Urged To Invest In Strategic Thinking
UK businesses need to invest more time in planning for the future in order to succeed, according to David Robertson, chief executive of Bibby Financial Services, the specialist provider of business cash flow solutions.
Robertson’s belief is further backed up by research from the Department of Trade and Industry* which reveals that almost 90% of firms spend less than two hours each week planning for the future of their company.
“Once businesses are up and running it is easy to lose sight of the bigger picture. While many work hard to produce a winning business plan at the onset – identifying where the business is going and how it will get there – the document often sits dormant once it has served its initial purpose. It’s vital that a business plan is a living document, which is reviewed and improved frequently.
“Obviously trying to increase the time spent on strategy on a regular basis is important and the following top tips will help entrepreneurs make best use of the time they do have put aside. So dust off your business plan, look critically at it and invest in some strategic thinking.”
- Get real – Give yourself a reality check. At the onset many business plans are wildly optimistic so spend time reviewing the plan. Did you meet your sales and profit targets – if not set new ones based on your experience to date.
- Keep an eye out – Has the marketplace changed since you started up in business? Your business strategy will need to develop and reflect changing circumstances to ensure you still have the right formula for success.
- The flow of funding – Is this suitable for your current business needs? While an overdraft or loan may have fulfilled business requirements at the start, is it still the best solution for you. Review your funding and take a fresh look at the alternatives available.
- Stay focused – Increasing profits is what it’s all about, ensure you distinguish between increased profits and increased sales. Any expansion plans should raise profits as well as sales so make sure you’ve accurately accounted for all the costs associated with expansion
- Shout about it – A marketing plan should have featured in your original plan and promoting your business must be an ongoing priority. Revisit your marketing plan and consider how this activity can support your businesses in the future. Are you promoting your business in the best way to the right people?
- Ensure you’re covered – Only 40% of businesses have a formal plan in place to cope with the unpredicted. Regular planning should prevent the worst case scenario
- Climb the learning curve – Remember you are in a unique situation, it will be a learning process and nothing is ever a mistake. Build your experiences into your planning and continually review it in light of these
- Talk to the experts – There is a strong support network for entrepreneurs just like you from Business Links to Chambers of Commerce, find out about them and take advantage of their experience and knowledge
David Robertson added: “In an ideal world entrepreneurs would give more dedicated time to reviewing and driving business strategy. However, in reality the day-to-day activity of running a business often overtakes strategy in terms of priority. The research clearly shows that today’s entrepreneurs are increasingly taking time out at weekends or on holiday to think strategically. By being clever about how you tackle strategic planning you can reap maximum returns on the time invested.”
