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Strategy - The Key to Your Success

Wednesday, December 10, 2014   By Mike Reddy

 



Endeavouring to succeed in a small business is much like taking on a massive road trip.

Having a map (in our case, a business plan) is a must. It will provide a route and will offer a big-picture view at where you want to go and how you will get there.

Along the way, you will encounter the unexpected; potholes, flat tires and detours may come without warning. However, with the right tools and a proactive character (in small businesses this is strategic planning) preparation can save the day.

A business plan and a strategic plan are not the same thing, though the two often intertwine along the way.

Strategic planning is designed to present a guideline for conflict resolution so that before problems arise, a procedure is in place to handle them. Employees and key players are educated on the plan and always ready for implementation.

A sound strategy encourages pro-activity and discourages reactivity.

Typically, there are three steps employed by small business owners for strategic planning:

  • Analyze context.
  • Identify strategic options.
  • Evaluate and select the best options.

Keep in mind strategic planning requires that you study the past, analyse the present and anticipate the future.

The SWOT analysis works well for strategic planning - identifying and evaluating Strengths, Weakness, Opportunities and Threats.

Once a strategic plan is in place, it is time to articulate the idea and educate your team. The best managers find it helpful to bring employees in at an earlier stage, allowing their input to help formulate the best plan. Brainstorming strategy often breeds creativity and boosts motivation.

Strategy suffers under stagnancy. Planning meetings should be held at least once a year in order to ensure that when the future becomes the present and the present turns into the past, you will be ready!

Remember, we have lots of experience in helping businesses like yours excel. Contact us for more information.


Mike Reddy is a Chartered Accountant, business coach and advisor helping businesses in Sydney, Melbourne, Brisbane and Gold Coast to easily increase their profits and cash flow. He is currently President of the North Sydney Chamber of Commerce, a Regional Councillor for Sydney North East and a member of the Institute of Chartered Accountants Sydney leadership team. As well as advising businesses, Mike presents business development seminars and webinars and is regularly contacted by the media to comment on small business matters. You can connect with him on Facebook, Twitter and Google+.