Business Strategy – Why a good plan is the number 1 priority for your business

WHY A GOOD PLAN IS THE NUMBER 1 PRIORITY FOR YOUR BUSINESS

Business Strategy

Ivan Slavich

Introduction

According to insolvency experts, the number 1 reason businesses fail is because they don’t have a proper strategic plan.

When I ask businesses, fewer than 20% have a strategic plan that is documented and followed.

Why is this so?

Leading causes of business failure

Poor

Stra

tegi

c Man

agem

ent

Poor

Cas

h Flo

w

Trad

ing

loss

es

Poor

Fin

ancia

l Con

trol

Poor

Eco

nom

ic Con

ditio

ns

Under

Cap

italis

atio

n

Poor

Deb

tor C

olle

ctio

n0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%18%

17%

14%13%

12%

9%

5%

Strategic Planning Framework

Why?•Really understand the business drivers

•Truly understand why you are pursuing your strategy to give purpose

What? •Clearly understand Strategic Objective

•Develop message you give to your stakeholders; Customers, Staff, Suppliers, Owners

How?•What is the competitive advantage?

•What is the value proposition?

•Develop Comprehensive Action Plan

Who? •Understand what resources will be used to deliver the Operational Plan?

•Develop the KPI's that measure success

When?•Develop the time frame expectation against each of the action items.

Value Proposition Triangle

Products and

Services

Customer

Service

Price

Product and Geography Matrix

Existing Products and Services New Products and Services

Existing Clients and Geography

Products and Services: Geography:

Clients:

New Clients and Geography

Target Future Clients:  

Action Item Prioritisation Matrix

1 2 3 4 5 6 7 8 9 100

1

2

3

4

5

6

7

8

9

10 123, 410

5

6

7

8

9, 105

11, 12, 138814, 158

16, 1710

18

19

20

21

Action Items

Hard Ease of Implementation-> Easy

Low

Valu

e t

o t

he B

usin

ess -

>

Hig

h

Any questions?