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.”
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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.
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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.
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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.
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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
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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?
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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
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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
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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.”
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