The strategic business plan for an organization is the fundamental bedrock of a successful enterprise. The process by which this is developed is where the real value is created. During the strategic planning process, all aspects of the business are analyzed including: market size, competitive forces, financing required and potential sources, operational requirements, and ultimately the value proposition of the enterprise. It is in going through this process that entrepreneurs really gain an understanding of why they are in business, what they need to overcome in doing so and how to do it. In order to accomplish this, we break this process down into three key phase; Clearly defining the business model, analysis of viability, and development of an operational plan in line with both.
In evaluating the business model, we drill down to define exactly what the business is about. This is not always (and usually is not) about the actual product or service being offered. For example, someone making cookware is not in the culinary business, they are in the manufacturing business. Thus we evaluate this business from the standpoint of a manufacturing organization and the key performance indicators (KPI’s) associated therewith. The organizational value proposition and long-term goals are discussed and clearly defined at this point.
Analysis of Viability
During this phase of the strategic planning process, we evaluate the size of the market, barriers to entry, competitive forces and any other pros and cons of this business. After collecting and reviewing this data, we can determine if the business model can be successful; and if necessary, modify our model to maximize the potential for success.
Once the Business Model has been defined and the business has a path to viability, we can then create an operational plan that allows the organization to execute in the most efficient way possible. This includes development of the organizational structure, financial projections, documentation of the business plan, operational workflows and standardization of processes to maximize the efficiency of the enterprise and build value in the operations. A business that minimizes waste (in both time and materials) has an advantage over those that do and, most importantly, builds value in the organization itself through proprietary systems which themselves can be monetized through divesture or additional investment for growth. All of this is evaluated against our KPI’s to ensure sustainability and on-going viability of the enterprise