The key to building a Great Business! Anthony Moss

The reality is the pace of change in all industries, in technology, in business models is superfast today whether at the local, national and international level. So what impact does all this 'change' have on our businesses? Well most often it means alternatives to our products or services are now readily available cheaper than we can supply -hence our margins are squeezed; it can also mean the trend where customers’ band together leveraging their buying power and it can manifest in suppliers becoming competitors... This change doesn't mean the end – it’s merely an opportunity masquerading as a problem.  So how do we turn that problem into an opportunity? It’s about building the right strategy, making sure you have the right business model and wrapping it all up in a plan that guides the actions of all your staff. 

I’d hazard a guess that you want to build a great business –it's  far more fun than running a less than great business!

The management guru Jim Collins has excellent books (and tools on his website) on this subject including Good to Great and Great by Choice amongst others.  Essentially he’s studied the traits over many years of a number of American corporations that achieve stellar performance in their industry segment. I would highly recommend reading Jim’s material there are many excellent insights. But I would imagine if you’re reading this article your organisation may not quite have the level of resources as the businesses that Jim Collins has analysed.

So how does a Small or Medium enterprise become and remain a great business?

Management consultants tend to use lots of jargon in this field but the reality is the methodology of creating a good strategic plan is pretty straight forward. Indeed  there are many templates available on the web.  I believe any strategic planning exercise should address the following issues:  

• Where are we now - the reality check? How is the business performing now?  What market are we in?  What are the trends? How do we compare? What could we achieve? What is holding us back?
• Where do we want to go and why? Why does our business exist –what is it trying to achieve and for whom, what is our culture? 
•  Objectives? What do we want to achieve in the next 12-36 months? Revenue, market penetration, profit cash flow, staff, product development, exit plan?
• How will we achieve those objectives? What’s our chosen business model and why-what will make us different –why will customers buy from us –what resources do we need?
• What return will we get and when? The budget
• Accountability: How frequently do we review performance to the plan  (answer min quarterly) and to whom are we accountable - shareholders- a board or an advisory board?
• Engagement: Who within the organisation has responsibility for the achievement of the plan, how will our plans be communicated to all staff?
•  The Document:  Capturing the outcome (not the process) of all these deliberations should be succinctly documented in no more than 2 pages yes that was 2 not 52... Then there is a chance it will be used a tool to build a great business –not as a tool to keep the door open...

A simple formula right –but it will take some effort to respond to those questions. The challenge to complete a strategic plan for all businesses is threefold, 1 to follow a rigorous process to develop the plan-including being prepared to explore alternate business models if necessary, 2 to be truly objective about the business and its prospects, and perhaps most importantly 3, just more than occasionally to look in the rear view mirror to ensure we continue to learn from both success and mistakes.

As owner –CEO you can do all this yourself –but are you objective, do you have more than anecdotal information about your market and what your customers think? Most businesses benefit from having objective outside assistance (their Advisory Board or consultant) to guide them through the process –or at the very least to critique their approach and conclusions.

Following this process does not guarantee you having a Great Business –that all depends on how you execute the plan –but following this approach will certainly put you on the right track.

So when will you start?

Why not come to the Sydney Hills Strategy and Planning Workshop -Feb 27th see link below for more info
The Key to building a Great Business

Anthony Moss

Global Strategic Growth

For more info contact me at www.globalstrategicgrowth.com and connect with me on LinkedIn

http://au.linkedin.com/in/anthonymoss/ and twitter www.twitter.com/anthonymoss