Business Condition And Solution

I. What is a Strategic Plan?

Business Owners or Managers are often so preoccupied with day to day immediate issues in their business they lose sight of their ultimate objectives. Taking a step back and reviewing their business is essential. There is no guarantee of success, but without it a business is much more likely to fail. A strategic plan is NOT a Business Plan. It is likely to be a very short or short document whereas a Business Plan is very detailed and much more substantial. A sound plan will:

• Serve as a framework for making decisions or for securing future support or approval as required

• Provide a basis for more detailed planning

• Explain the business to others in order to inform, involve and motivate

• Assist in performance monitoring or benchmarking as required

• Stimulate change, and become a foundation for the next plan

II. Why make a Strategic Plan?

Making a Strategic Plan is an exciting exercise, and gets the adrenaline going! It should be visionary, conceptual and directional, and because it must be realistic and attainable too, it will provide owners and/or managers to think strategically and act operationally. Being able to think strategically means that, when you make decisions and choices, you settle for the best strategic option. Operational issues are all taken care of, but without having to think too hard about it, you ensure that your decisions and choices are supportive of your long term strategic objectives.

Setting goals and focusing on them causes these goals to become subconscious drivers that guide your actions. Doing this in terms of a structured strategic planning system, means that you will tend to steer your business in the right direction all the time, and you will do this without consciously thinking about it.

Starting with developing a Vision and working from there means that the Vision becomes firmly entrenched in how you think about your business, and becomes a subconscious part of your thinking process.

The effect can be really powerful and rewarding. By putting the necessary effort into creating a comprehensive Vision and building on it, you become a strategic thinker. Taking the right strategic action becomes easy.

III. What is involved?

A critical review of past performance by Owners and/or Managers of a business, and the preparation of even a short Strategic Plan beyond the normal annual budgetary horizon requires the type of thinking described above. Some essential points which should be observed during the review and planning process include the following:

• Consider the medium term of 3-5 years

• It must be undertaken by Owners/Directors

• It must focus on matters of strategic importance

• It must take place outside normal day to day work

• It must be realistic, detached and critical

• It must be written down

• It must be reviewed periodically

IV. What does it contain?

In developing a Strategic Plan, it is necessary to clearly identify the current status of the existing business, its objectives and strategies. Correctly defined, these can be used as the basis for a critical examination to probe existing or perceived Strengths, Weaknesses, Opportunities and Threats. Also forming part of a Strategic Plan are the following requirements:

• Vision

• Mission

• Strategic themes

• Strategic Objectives

• Measures or Key Performance Indicators

• Targets or Goals

• Initiatives or Action Plans

V. Summary

The preparation of a plan is a multiply step process, but is not difficult to carry out, and can be done reasonably quickly. For business Owners who want to drive their businesses to the next level, a plan for the future is essential.

Is you’re current job search technique yielding interview results 80% of the time?  It can!  Make it your job to find a job!  With your fine-tuned resume in hand, incorporate this proven Job Search and Targeting Strategy into a comprehensive Job Search Action Plan that will yield definite results.

Job Search Strategy:

Statistically, networking lands jobs 80% of the time.  Match that with 60-70% of your job search effort. Dedicate about 20-30% of your job search time following the Job Search Action Plan.

The Job Search Action Plan

This Action Plan keeps your job search moving, and your job search activities structured and organized.  Work in batches, spending about 1-2 hours each day working the Plan.  Networking results are definitely HOT status (Step 4).  Handle them in a dedicated, unique batch.  Restart the plan for Steps 4-8 once you land an interview.

Day 1  SEARCH Step 1: Find and print any job ads/posts that appeal to you at a first glance.   Don’t dig or probe; create a pool of possibilities.  Label with the job post date and title.

Day 1  TARGET Step 2: Grab your resume.  Highlight all the words/phrases on your resume that match those in the job description.  Highlights must cover at least 90-95% of the ad’s requirement and skills words.

Day 1-2  REVIEW Step 3: Review each targeted job for attractive features and practical points (location, commute, hours).  Prioritize those that pass review into 3 categories; HOT, WARM, and COOL.

Day 2-3  RESEARCH Step 4: Starting with the HOT stack, research each ad.  Define words, research policies, performance and company details.  Research similarities and differences with other similar posts.  If possible, call the company to confirm job details, status and the application process.  Get contact info for follow up and follow through activities.  Research “HOT” then move to “WARM” and “COOL.”

Day 2-5  RESPOND Step 5: Write cover letters.  At least one sentence and example should be given for each job/skills requirement.  Respond to each post with the letter, your resume and other appropriate info.

Day 6  FOLLOW UP Step 6: Within 2 days of responding, call or email to insure your info was received.  Confirm the job status.  Ask for timelines and what you can expect for next steps.  Be friendly, cooperative, and persistent. Step back into the Plan here after an interview.

Day 7  FOLLOW THROUGH Step 7: If you haven’t been contacted within 7 days of responding, call again and reconfirm the job status.  Again, check timelines and next steps.  Ask for feedback if possible.

DOCUMENT  Step 8: If the job is a “no,” remove the ad from your working file and move on.  Document status for any unemployment or necessary activity reports.  Keep a list of keywords that “worked.”  Incorporate them into future Action Plan batches.

Good luck.

My neighbor asked me, “Why would anyone sell a successful company?”. He could not understand why anyone would leave a business that was doing well. Of course successful companies get sold all the time.

So why do these business owners sell? The short answer is that most closely held businesses sell for human reasons, such as burn out, retirement, illness, partnership disputes, family issues or other personal reasons. Usually the business is fine but the human being running the business needs a change. To understand this better it is key to understand the other options for exiting a business.

Close the Business/Liquidation

Closing a business that is profitable never makes sense. Even if the assets are liquidated the price is likely to be pennies on the dollar versus selling the business as a going concern with employees, customers and a reputation that is intact. Not only does the business owner get the lowest value but the employees, vendors and customers are hurt by this type of exit.

Accident, Illness or Death

No one wants to exit their business this way, but many do. The loss of an owner not only creates tremendous issues for the family but also creates a leadership void in the business. Even the most competent management can struggle when a key business leader is lost to a serious accident, illness or death. No one plans for this type of exit but many end up exiting the business this way because they failed to create an alternate plan.

Succession

Succession by a family member or key employee has its benefits. They know the business, its product or service, employees, customers and vendors. Succession can be operationally successful for the exiting owner if they make sure the successor is carefully selected, qualified and groomed for the position. The owner must be careful not to make an emotional choice of a relative or favorite employee but instead choose the successor with the right skills to lead the company into the future. You are not seeking an “Employee” mentality but an “Owner” mentality. If that rare person can be found in the business who can make the transition to Owner, they often do not have the cash needed to purchase the business. They are also likely to want to pay less for the business as familiarity will blind them to many of the value drivers of the company. So although succession can be operationally successful it is rarely a financial success for the outgoing owner.

Sell

Closing or liquidating the business minimizes the value to the owner. Accident, illness or death forces the issue on the owner. Succession provided a very limited pool of options with limited financial reward.

Selling on the other hand allows the business owner to decide their ideal timing, maximize the value of the business they worked so hard to build, coordinate the use of the sale proceeds for financial planning and align their personal goals with the sale of a business. Selling the business allows the business owner to create a wealth event and often significant on-going passive income without having to run their business.

Whatever they are, human reasons are always pushing and pulling on a business owner. Burn out, stress, divorce, illness, partner disputes and limited growth capital are some of the human reasons that push owners out of the business. Retirement, enjoying life, relocating, a new business opportunity and passive income are some of the reasons that pull a business owner out. Whatever the motivation, the fundamental reason a business owner chooses a sale as their ideal exit plan is control. The business owner chooses to understand the value of their business and to proactively pursue the right buyer and the right price. By selling a business you choose to exit your business by choice, not by force.