Business Advice
PLANNING TO PROFIT
If you want your business to grow in strength you need a strong business plan, reckons our resident business guru Adam Bernstein. With a new decade looming, we detail how planning ahead needn’t be painful; indeed, if you follow the correct advice, it can be very profitable…
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here’s a whole industry that has grown up to support firms of all sizes wanting to plan for their future. But for the smaller enterprise – for example, the independent photographic retailer – where budgets are perhaps leaner, the issue of strategic planning might have been be left to one side. So what can they do? Leanda Hickman, former marketing and operations manager at the Forum of Private Business and now small business owner herself, reckons that the starting point should be a business plan, which codifies where the firm wants to be in time. “A business plan is one of the most important documents a business will ever own,” she says, “as it ties together ideas, targets and plans for the future, as well as giving space to consider if those ideas are realistic and workable.” As part of the process, thought must be given to five key areas: ideas; business
A business plan is one of the most important documents a business will ever own, as it ties together ideas, targets and plans for the future, as well as giving space to consider if those ideas are realistic and workable.” viability; the purpose of the business and how it communicates; predicting the future; plus the development of a clear strategy with a plan for growth over time. Every business will have a different perspective on what they want to achieve, but most will be driven by the same goal, which will focus on an exit strategy in the medium to long-term. If the plan requires the acquisition of another business – say, a retailer in another town – it should be done with care, appropriate due diligence and a very clear understanding of how the acquisition will impact on the existing business. Whatever the goal, it’s important, says Hickman, that
your plan is easy to digest. “The objectives need to be clear. Part of this means being comprehensive, yet concise with predictions, while avoiding any contradictions.”
BE A ‘PEST’ Predicting the future is incredibly difficult, but nevertheless all businesses should have a short to medium term view. This could take the form of a high level 3 to 5-year plan that is then broken down into an annual plan. Short timeframes mean that owners can understand the impact that growth will have on the resources within the business. With this in mind it’s easy to see why
Got an idea for a photo trade-related business issue you’d like us to cover? Let us know direct via info@bpinews.co.uk 26 December 2019 / January 2020 | BPI News
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