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If you ever thought that strategic planning wasn't designed for the fast-paced reality of entrepreneurs, BDC consultant Gerry Hunchak would like to set the record straight.
"Strategic planning is for any business that wants to ensure a viable fit between company objectives, skills, resources and changing market opportunities," he emphasizes. "You can adapt it to your business environment, whether you're a small organization or a larger player." Despite the common perception that the process is cumbersome and best left for corporate giants, strategic planning is much more focused than most business owners imagine and can be implemented step by step, he says.
Aim for focused goals
"If you determine that you need an infusion of cash in your company, then you can concentrate on strategies to reach that specific goal. You don't have to tackle every aspect of your business at once. You have to be realistic about your efforts," stresses Hunchak. "Strategic planning is about systematically setting a course and direction for your company, whatever that specific need is," he says.
Ultimately, entrepreneurs should expect a strategic plan to address their immediate priorities. "It's not just developing a plan to leave on a shelf. It's an actionable document to be used on an ongoing basis. You have to keep the planning process alive by ensuring it always meets your current needs," he says. "Your goal should be to organize your company in a way that will keep your business healthy. You want to be able to meet growth and profit targets, even through tough times," he adds.
So how do you do realistic and focused strategic planning that delivers results? Hunchak shares a few key pointers.
Seek external help
A third-party viewpoint is essential to the success of your strategic planning efforts. Hunchak recommends that entrepreneurs get outside help to develop a structured plan on paper that meets their realistic needs. "Most people running businesses don't have the time required to take on strategic planning by themselves," he says. But more importantly, a consultant can provide an objective point of view. "If you're too close to your business, it's hard to see where you can improve and drive more growth. That's where an advisor from an organization such as BDC Consulting can bring fresh ideas," he says. As well, an external consultant can provide the discipline you need to carefully measure your progress and take action to correct the gaps.
At the same time, Hunchak stresses that entrepreneurs needn't hand over their entire strategic planning exercise to an external consultant. "Be sure somebody in the organization is assigned the accountability for the whole process. This helps ensure that there is follow-up from development right through to implementation."
Get SWOT working for you
To get a clear picture of a company's situation, Hunchak usually begins with an analysis of strengths, weaknesses, opportunities and threats. "The SWOT provides insight into what the company needs to do to succeed in the current market and helps close gaps and correct weaknesses." For example, a business strength could be its marketing expertise while a weakness might be its cash position. An opportunity could be the potential to forge a strategic alliance, while a threat could be a new competitor in the local market.
Armed with this kind of invaluable information, entrepreneurs are better equipped to devise strategies that will help them win, he says. For example, if you pinpoint a weakness such as your current cash position, then you can establish the necessary tactics that will enable you to correct it.
Define a company vision
Hunchak also works closely with entrepreneurs to define their company vision, or "tomorrow's game plan." Unlike a company mission, a vision shows where a company will be going in a few years. A clear vision will lead to clearer strategies and tactics and more realistic goals. A vision statement can even help employees buy into a company's strategies. Ideally, a vision is inspirational and involves a long-term planning component. For example, "ABC Courier is going to become one of the leaders in their market by providing an unmatched level of customer service and winning the confidence of clients who are now with major competitors."
Decide on the scope of your plan
Your strategic plan should always be directly in line with your current resources and needs. "It's about dollars and sense," says Hunchak. "You need to know exactly how much the plan will cost, how you will implement it and where you will see the results." Strategic planning may often get a "bad rap" because businesses try to take on too much at once. "Keep in mind that your strategic plan has to be attainable," he emphasizes. One simple way of keeping your plan realistic is to ask yourself this basic question: what specific improvements do you want to see? i.e., new market penetration, a broader range of products and services, increased sales, sharpened competitive edge? Once you have identified the goals and objectives, the key is to find the right tactics to achieve those specific goals. For instance, if you want to improve your buying power, your strategy could be to form an alliance with similar companies in your field.
Get your financial planning in order
For Hunchak, strategic planning is inevitably about driving profitable growth, and of course growth can cost money. The BDC consultant recommends that entrepreneurs closely assess their financial needs when considering strategic planning. In the case of BDC, he emphasizes, both consulting and financial resources are conveniently all under one roof. Companies can find innovative ways, for example, to increase their working capital and direct these funds at specific strategies such as developing current markets or developing new ones aboard. Loans can be used to carry out research and development activities, adopt new quality standards or buy equipment. "Long-term financing is ideal for strategic planning and related activities. The key is to ensure that you have the cash you need to bring your company to a new level of growth," he concludes.
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