Over the past few years, I have witnessed numerous B and C-Level executives simply miss their mark when it comes to creating efficiencies in their company and taking their business to the next level. There are several reasons for this, which is why I felt compelled to write this article. I wanted to offer some helpful information that will not only better enlighten, but to teach at the same time.
It is common business wisdom that if you want to start a business, it is typical to create a business plan. But, honestly, how many of you viewing this have created a business plan for your business? Out of those who have, how many of you created it as a living document that you actually use to guide your business? I am going to bet that number is quite small.
Most people do not create business plans in the first place because a large part of the population who have created businesses had no previous training. I am not referring specifically to college. I am referring to any or all of the following: being an apprentice, reading business books, going to seminars and going to college. From my experience, most people “wing it.” They try their hand at it and do a lot of internet searches. Which is not entirely bad, as long as they qualify the sources of the information.
One thing that is guaranteed on the internet, you can find a source to agree with your position, always. So, cutting through the non-qualified and qualified information can be tough. And for those who have created a business plan, they either A) hired someone to create the business plan or B) bought software or a template to work their own way through it. With the main reason to do so is so they can get financing.
Now, that would explain why those with no previous training are lost. But what about those who are formally trained and their companies have well thought out and structured business plans? They too can quite often be lost. Why?
What a Business Plan Really Accomplishes
Business plans are great for company structure, identifying the SWOT (strengths, weaknesses, opportunities and threats), planning the overall marketing, etc. However, in many cases, this is created and placed on the shelf. It may be reviewed from time to time but it is not used as a “play book.” It is more like an encyclopedia that is referenced when someone forgets a Vision or Mission Statement.
We live in the Information Age. It is a time when information flies at the speed of light, around the globe, within seconds of an occurrence. That means that changes can take place, literally at the speed of light. It is an age when plans need to be nimbler and more flexible. This is not common in a business plan. This is where Take Control can offer vital assistance.
As a Strategic Advisory Firm, we create strategic plans. These plans are nimble, flexible and effective. They are based upon a one year cycle, include the resources required to execute the plan, as well as all action steps that tell you what to do tomorrow, next week, next month and throughout the year. I know you may be thinking, “All fine and well. But this does not explain why executives and business owners are lost. How does this apply?” When we create strategic plans, we have found that most executives and business owners fall into two categories:
- The first category is one where they have tried to solve a specific problem but do not know how to proceed. An example would be “We want to open manufacturing in another country to save on shipping to other parts of the globe but we are not sure where to start.”
- The second category pertains to those who think they have a goal or, as I refer to them, an objective, but none really exists. Remember, an objective without a plan is just a wish. They have wishes…like I wish we made more money, I wish we had more customers, I wish our employees were happier, I wish….well…you get it.
These categories have one thing in common, they both are in need of a plan. Admittedly, we see more companies fall into the second category than the first. Regardless, they both need a plan and they both need it to be specific yet able to be flexible to account for the shifts the information age can create.
The ability to be specific and create a plan around it does take time and experience; both of which we do have. The lack of specificity is common. And because of this, it is hard to achieve the objective if it is not specific. Here is an example of an actual conversation I have had with a potential client.
Client: I want to make more money.
Me: Here is a dollar. Your objective has been reached.
Client: That is not what I meant!?!?
Me: You wanted more money. You now have $1 more than you had.
Client: I want to make more than that.
Me: Now we are getting somewhere.
In this scenario, I would ask questions like:
- How much money do you want to make in the next 12 months?
- What is the profit margin you seek?
- What products or services will be sold to generate this revenue?
- What geography or geographies will this take place in?
- Are sales online, in person or both?
I would have more, but you get the idea. I am getting down to the bottom of things with a specific metric that can be measured and managed with a result something like this:
I want to make $500,000 in the next 12 months with a 20% profit margin selling product X and all sales will be online and in the US only for the first 6 months and then growing to Canada and Mexico in the second half of the year. That is more specific than “I want to make more money.”
How To Find The Right Road To Success
Think about a strategic plan like a vacation. Most do not walk out their front door and say “I want to go on vacation” and then just start walking. Literally anywhere that person goes would meet the objective because they were not specific. In most cases, when someone decides to go on vacation, they have a destination in mind. By having a specific vacation destination (objective) a person can then map out a route (strategic plan) on how to get there (action steps) and the supplies (resources) they need while on the trip.
If you want to try to do this on your own, you can easily follow the advice above. Just remember to be specific. The more specific the better and the more measurable objectives you can include the more manageable things will be. However, if you would like to do what you do best (run your company), you can save time, hassle and headache and just contact us.
The Take Control Advantage
At Take Control, we help C-Level Executives and Business Owners develop specific objectives that, when met, will solve their stated problems. We create a strategic plan that provides details, resources and action steps on how to get there.
There is no need to feel lost or on your own. Take Control can help you navigate the way forward, contact us today for a free consultation