Overview

Why a Comprehensive Business Strategy?

Road map to success: A comprehensive business plan is a reflection of the hopes and dreams for a business, not just a tool to secure funding. It assists in guiding a business effectively and efficiently while reducing risks.
Continuity on information dispersed can be maintained: Once the strategic plan is completed, the client now has the foundation on which to develop other communication tools. Continuity is ensured because all the dispersed information is based on that found in the plan.
Strategy is focus: Comprehensive strategies assign priorities and assists in selecting opportunities which guide growth at a manageable speed. It forces the allocation of resources where they reap the most benefit. This focus steers the business or project away from its weaknesses and more towards strengths. It defines the tasks required and how they are to be accomplished. The strategy continues by defining the responsibilities and authority associated with the personnel selected for these tasks.
Feasibility of a business’ or project’s success: Often while completing research for the plan unknowns and flaws are defined. In some instances this planning process can substantiate the opportunity to be greater than originally believed or in contrast, save the company from making a bad investment.
Strategies to reach objectives: Many consulting companies believe that a business plan and a strategy plan are two separate documents. CBS contends this is not true. How can there be a plan without a strategy, or a road map, to reach objectives and ultimately success?
Strategy also incorporates measuring tools: Tracking progress based on timeline based milestones helps in understanding whether the business or project is moving in the correct direction. The strategy spells out in detail specific responsibilities, activities, deadlines and budgets. These milestones are the brick and mortar to business planning and critical to any business success.
Planning the cash flow: Cash, not profits, pay the expenses. Businesses usually do not plan well for cash. When more money is going out than coming in, yet sales are strong, the company is “chasing cash flow.” No company can operate for long with a negative cash flow. Managing growth is the balancing of outgoing cash with incoming.
Shared vision within the rank and file: Everyone needs to share the same vision as to how the company or project should be initiated, steered and managed through growth and change. The entire workforce becomes aligned in the efforts resulting in an enhanced and reinforced organizational culture .
Long term commitments: Proper business planning ascertains when, and if, long term obligations are required such as renting or leasing equipment, buying real estate, inventory and so much more. It also assists in deciding whether to buy or lease assets, how many and their life expectancy within the company.
Employing Personnel: The strategy provides the timeline when to hire new people with what skill sets and their responsibilities. It shares and explains short term and long term objectives within the management team, employees and new hires. All company people can share the overall vision and better understand the planned direction to success.
Establishing strategic alliances: This planning tool helps in establishing targets for new alliances and the timeline as to when they are required. It guides what and how to communicate with these new alliances.
Communicate with capital sources: Investors and loan officers require a business plan in order to best understand the strategy for either an existing or start-up business. They need to understand the resources required, how and when will the funds be returned and what is the long term projected income and value of the company or project.
Communicate with outside services: Professionals such as accountants, attorneys, etc. can easily understand the direction of the company and the strategy to success.
Selling a business: A business plan is extremely instrumental when selling a business or project. It helps the buyer understand what the company has to offer, its actual value and assists the reader to understand why they may need the business or project.
Guide for starting a new business: Of course business plans are a critical element for starting a new business or project. It helps the reader understand who, what, when, why and how the business is to reach success. It dictates the resources needed to meet certain goals and objectives together with the measurable milestones to reach the expected results.