As I have discussed with many business owners over the years, a business plan is your blueprint for success. It can help you manage your business more effectively, help support growth and secure funding. There are “Static Business Plans” and “Lean Business Plans”.
Since your business isn’t static, it doesn’t make sense to have a static business plan, which is typically long, complicated and never changes. Lean business plans assume constant change. They’re streamlined documents with no extraneous information. Instead of bloated paragraphs, lean business plans are written concisely with bullet points, lists and tables – easy to read and easy to revise.
A lean business plan is more than just a plan; it’s an ongoing process designed to optimize your business. This powerful tool includes strategy, a financial plan, action plan, tactics, milestones, responsibilities, performance metrics and tracking.
A lean business plan is a dynamic document that must be reviewed regularly and revised as needed. It’s something that can benefit every business. I’ve outlined below four important points of every lean business plan here:
- The pitch tells your story. Who are you? What do you do? What is your value proposition? What problem are you solving for your customers? How are you solving that problem? Who is your customer? Who is your competition? How are you different from your competition?
- The financial plan explains how you’re going to make money. What is your business model? What are your revenue streams? What is your sales forecast? Cash flow forecast? What are your major expenses? What is your budget to cover expenses?
- The action plan is how you’re going to do it. Who are your key team members and what are their roles? Who is your target market? What are your sales channels – online, bricks and mortar, third party distribution? Pricing? How will you be attracting customers – marketing, advertising, promotions, social media, messaging, public relations? Do you have partners or additional resources? If so, list them.
- Performance tracking measures the success of your plan. It compares results with expectations. List all of the specifics that you can track – money generated, products/services sold, number of new clients, milestones reached, web traffic, foot traffic, social media followers, conversions…
A lean business plan evolves as your business evolves. It will never be finished; it’s a process of continuous improvement. The cycle is constant – plan, run, review, revise. Review and revise your plan regularly to ensure that your business is on course with meeting goals, sales targets and operational milestones. In my experience, this plan can keep your business on track, and help you determine its success.
Are you using a lean business plan? Want more advice on lean business plans, or general advice from other business owners like you? Find out if a TAB Board is right for you!
One of the biggest challenges I find many small business owners face is dealing with complacency. When a new business first starts out, owners are overcome with excitement with every forward step. But at one point or another, the excitement of the early days starts to slow down, and eventually your company may begin to experience a plateau.
A stagnant business is one that faces little to no new activity for an extended period of time. Complacency tends to come from sticking with the status quo and getting used to your business’s “comfort zone”. Many business owners adhere to the mindset of “if it was working for the first 5 years, why change it now?” The truth is, sometimes change is exactly what you need to revitalize your business and get it growing again.
If you’re facing complacency in your business, below are 5 steps for revitalizing your business to get it back on track for growth.
1) Find out what your customers want
A lack of understanding about what your customers truly want from your business can be detrimental to your small business. This is why engaging in market research is essential to drive your company’s growth. Have you had a conversation with your customers to find out what needs are being met, and what needs aren’t? By hiring a market research company or a marketing agency with a specialization in market research to conduct unbiased market research, you will be able to gain invaluable information about your customers as well as your competitors. Once you’ve done this research, you’ll have a much better idea about how you can fulfill your customers’ needs to the best of your ability.
2) Focus on increases in certain sectors and products
Your industry landscape changes at such a rapid pace, and as a small business owner, it’s important that you keep up-to-date with it. Look at projected growth sectors to get an understanding of which products or services are headed for long-term growth, and which ones are on the decline. Some may be obvious, but others may not be so apparent. This is why it’s crucial to take the time and do proper research. Once you have a better idea about the projected growth rate of certain sectors, consider shifting your business model to become more aligned with these industry changes.
3) Re-examine former revenue sources
While focusing on changes in the industry landscape is important, equally important is looking at what has traditionally brought you revenue. After the first few years of your business, you may have lost focus on areas that were once reliable sources of revenue for your company. Have you steered your attention towards niche areas as a result of increased demand, and lost sight of your more dependable revenue sources? If your business has stalled, one of the first things you should do is gauge whether or not you have neglected some of your core competencies at the expense of chasing something new.
4) Review your company’s operations
I’ve found that many small businesses do not focus enough time and energy on their internal operations. Often, owners struggle to let go of the “startup” mindset they once had. This is a shame, as a company’s internal operations can have a huge influence on the productivity of their business. As your business grows, it’s important you grow with it. In a previous blog, I discussed the importance of delegation. Are you delegating work where necessary? Have you considered outsourcing certain tasks to allow you to focus on growing your business?
5) Create a plan
The only way you will be able to properly execute the above steps is if you have a solid plan in place. It’s essential you know exactly what resources are required and how much time and energy is needed to accomplish what you want done. Understanding these two key areas will allow you to set realistic short-term and long-term goals for your business. Remember, making any large-scale changes to your company takes time, so patience is needed to see through your goals.
It is important to keep the momentum going in order for your business not to stall. Although complacency is a frustrating obstacle to face, it is quite common. By following these 5 steps on how to revitalize your business, you’ll be equipped with the confidence to move forward and make the necessary changes needed to get your business back on the track you want it to be.
As a business owner, you know how important it is to keep things fresh and innovative in your workplace, but when making changes, you’ll need to consider how your plans might impact your employees.
If you are in the process of job redesign where employees are assigned new roles that play into their strengths and contribute to a more successful business, these changes can be stressful to your employees. If someone has been hired for a particular job and then he or she is suddenly expected to perform a different role in the organization, tension and stress can result.
A recent report found that 46% of 1,018 Canadian employees recently surveyed had taken time off work or noticed other employees taking sick leave following workplace changes, a common symptom of a stressed-out workplace.
I’ve outlined below a few tips on how you can shift roles in your organization without contributing to employee stress:
- Share your vision.
Why are you doing this? What is this change going to accomplish for your organization? Sharing this vision with employees will allow them to understand exactly why this is happening, and help them find their part in it.
- Keep the lines of communication open in regards to role change.
Ask employees how they feel they can contribute to a new role and encourage conversation. By doing this, you can evaluate each employee’s strengths and weaknesses, while giving them an opportunity to work in a new role they would truly enjoy.
Make sure employees stay up to date as things begin to shift. For example, when you have made some final role decisions, send out an email to all staff informing them of the new structure. Keeping everyone in the know will ensure a smooth transition process.
- When your employees begin their new role, make sure they feel supported.
Assuming a new role can be challenging, especially if the employee doesn’t have a lot of previous experience in the position. Positive reinforcement can go a long way, as employees are less likely to experience stress when they report a positive and supportive workplace culture.
In today’s workplace, you need to keep things fresh, but maintain a balance against a backdrop of inclusiveness and communication. Learning how to handle change effectively is what will keep your team on the right path to growing your business.
How have you successfully restructured your business?
Forbes published an article on the importance of peer advisory boards, “10 Reasons To Join A Peer Group.” While I thoroughly enjoyed the read, I noticed the author overlooked a few key benefits that I’ve been lucky to witness firsthand as a facilitator. As a business advisor, I take pride in facilitating a peer advisory board that has proven results for my members. The peer boards help business owners reach new heights and succeed in ways they never imagined.
Peer advisory boards led by trained facilitators embody the power of collaboration, accountability, and perspective. A deep bond can be created and a business asset is formed that business owners crave and are hard pressed to find in any other forum. I’d like to share with you my list of top 7 reasons many business owners join a peer advisory board:
One of the greatest benefits of joining a peer advisory board is the exposure you’ll receive to other small business owners much like yourself. Entrepreneurship is unlike any other job, which means the challenges you face on a daily basis are just as unique. As a member of a peer advisory board, you’re able to share ideas with people in similar situations. As a result, the business ideas you’ll be provided with won’t just be erroneous but tried and true.
As the owner of a business, there aren’t many people you have to report to other than perhaps a Board of Directors or other shareholders. When you’re part of a peer advisory board, however, your fellow business owners will often hold you accountable for the executive decisions you’ve elected to make. Many peer groups meet once a month and they often expect some form of progress each month.
We’ve all had ideas that we considered to be foolproof, but as we’ve come to know in business, not every idea is feasible. In becoming a member of a peer advisory board, you’ll receive constructive criticism from the board regarding your potential business decisions. This allows you to fill in any gaps that you may have overlooked.
With competition at an all time high, it’s difficult to know whom you can share your ideas with. With peer advisory boards, anything that is discussed is confidential among members, so you’ll receive reassurance in knowing that you can freely discuss your business decisions without compromising trade secrets.
As previously mentioned, you’ll surround yourself with like-minded entrepreneurs as a member of a peer advisory board. What this means is that you’ll witness them experience successes and/or setbacks, just as they’ll witness the same for you. Either way, you’ll challenge one another to learn from your mistakes, grow, and ultimately succeed.
A common benefit I hear from board members is that a peer advisory board allows them to focus on developing their business rather than working in the business. Don’t get me wrong, one of the best qualities of a business owner is someone who knows the ins and outs of their product or service, but when it boils down to growth, strategic decision-making is a necessity.
As the saying goes, “it’s lonely at the top.” But it doesn’t have to be. Your fellow board members are there to support you through your journey, and many if not all are experiencing, have experienced, or will experience the trials and tribulations you are facing as a business owner. They are as much of a support group as they are anything else.
Have you ever considered joining a peer advisory board? What would be your top reason for joining?
Fourteen years ago, Charles Benayon embarked on a journey to create a company that would support mental health issues for employers and students. Fast-forward to today and his company, Aspiria Corp., has helped tens of thousands of people and their families.
As the Founder and CEO, Charles and his team provide Employee and Student Assistance Programs to medium- and large-sized businesses and schools. Reflecting on his successes, he credits much of his recent progress to the advice he has received from The Alternative Board ® (TAB).
“Prior to joining TAB, I was doing a ton of things on my own that, perhaps, I shouldn’t have been doing,” he recalls. “I was working too much “in” the business and not working enough “on” the business.”
For Charles, however, it wasn’t an instant decision to seek business advice from an advisor. “I couldn’t see how an advisor who knew nothing about my industry could help me grow my revenue base,” he said.
But it was roughly four years ago that he felt as though he was at a standstill with his business.
“We were at a level in my company where I was making all sorts of decisions and I really didn’t have someone at my level that I could bounce these decisions by. I thought it would be helpful to try to find an advisor who could provide support for me, who could help me with some decision-making, and who could help me develop a strategy for the company.”
It took about a year, but Charles decided to make a phone call to Phil Spensieri that would forever transform his business – for the better.
“Prior to meeting Phil, I didn’t have a strategic plan for the company,” he admits, “but he helped my management team and I develop a five-year strategic plan which has now become our blueprint for everything that we do.”
Providing structure is something in particular that Charles attributes to Phil’s expertise
The strategic plan isn’t the only thing keeping Charles and his team focused. As he mentions, The TAB Advisory Board is quick to keep him on his toes.
“I feel as though this team of advisors, including Phil, hold me accountable for my actions. If I say I’m going to do something and the next month I attend the group meeting and I haven’t done it, they’re going to call me on it.”
There’s much to gain from peer discussions, according to Charles. “The TAB Advisory Board can help any small business leader reach their business goals by providing a supportive, structured environment to help you get there.” Problem solving and like-minded support, as he mentions, are two of the biggest takeaways from a TAB Board meeting.
Joining TAB was pivotal for Charles, who recommends the dual-model approach to business coaching as a recipe for success: “If you don’t have one-on-one and group support to assist in reaching your goals, then your business will not be successful.”
Do you belong to a peer advisory board? How has it helped your business? Do you see how joining one can help you grow your business?
Regardless of whether a business is seeking to satisfy a major increase in demand, or strengthen its competitive position, growth is a vital step in the development of any business. From hiring employees and increasing office space to increasing production, expanding services or extending product lines there is a lot to consider. Growing your business requires you to take a bit of a leap. Look for these signs before you look to grow your business:
1. You are being approached by potential clients
When you find that you are receiving request and inquires from customers and clients, this is usually a sign that you are in a position where growth is possible. Your brand has now gained just the right amount of exposure to for growth to take place.
2. Your team is strong and ready to grow
It is vital to know if your company has the right staff in place for growth to be possible. Valuable leaders are important however, having a strong team of employees who are experts at what they do and are committed to your business, is crucial in the growth phase.
3. You have the necessary funds for growth
Knowing your sales cycle and what income you can expect on a regular basis will ensure that you do not experience a shortage in cash flow during growth. It is important to know this as you will not be able to successfully grow if your sales do not match with your income. Measure this before you grow.
4. You are personally ready to grow
Are you ready for the commitment that comes with growing a business? If you are not prepared, business growth can have affect your personal well being as well as your family and daily life.Your business may be ready for growth but it can only be successful if you are ready for it. Experts say business owners should assume a 12 month adjustment period to achieve normal balance in the business after a growth spurt.
5. You have realistic expectations
Know what your business can handle. It may be difficult to not get carried away if you’ve mastered a particular market or excelled in a specific area. You may think you have everything you need to do exactly this all over again but be realistic in what you hope to achieve and what you can handle. Consider the economic benefits, your existing infrastructure and current resources to evaluate if you will be trying to take on too much at once.
6. You have met and continue to meet set goals
Stop making excuses for failed goals and instead find alternate ways to meet them. Doing this will encourage confidence throughout all levels of your business and help overall growth in the long run.
If your business is growing, you’re doing something right. It’s also important to understand that growth is a disruptive force. A period of substantial growth will influence every single aspect of your company, which is why you need to adopt a strategic mindset.