The Strategic Plan

441 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
441
On SlideShare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
5
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide
  • Suggest ways to approach the banker
  • The Strategic Plan

    1. 1. Effectively Operate and Grow Your Business Strategic Issues
    2. 2. Products and Resources <ul><li>Identify the skills and experience needed to effectively manage a business </li></ul><ul><li>Perform a risk assessment and SWOT analysis of YOUR business </li></ul><ul><li>Define your product or service and your target customer. </li></ul><ul><li>Determine the level of financial resources needed for your business and evaluating your cash flow </li></ul><ul><li>Decide on a legal structure of the business </li></ul>
    3. 3. Marketing and Business Plans <ul><li>Determine the process and methods for developing an effective marketing plan </li></ul><ul><li>Evaluate operating (income) statements and cash flow projections </li></ul><ul><li>Develop processes for regular checks of your business plan and key operating measurements; identify how to determine operating adjustments </li></ul><ul><li>Evaluate and revise plans, regularly and as needed </li></ul><ul><li>Need assistance? www.scoreworks.org , </li></ul><ul><li>513-684-2812 </li></ul>
    4. 4. Risk Assessment <ul><li>Assess each element as a risk to YOUR business </li></ul><ul><li>Lack of commitment </li></ul><ul><li>Lack of vision, purpose, or principles </li></ul><ul><li>Lack of management systems </li></ul><ul><li>Poor market definition and strategy </li></ul><ul><li>Competition </li></ul><ul><li>Lack of Cash </li></ul>
    5. 5. Know Your Business SWOT <ul><ul><ul><li>Strengths: attributes of the organization that are helpful to achieving the objectives. </li></ul></ul></ul><ul><ul><ul><li>Weaknesses: attributes of the organization that are harmful to achieving the objectives. </li></ul></ul></ul><ul><ul><ul><li>Opportunities: external conditions that are helpful to achieving the objectives. </li></ul></ul></ul><ul><ul><ul><li>Threats: external conditions that are harmful to achieving the objectives. </li></ul></ul></ul>
    6. 6. SWOT Analysis
    7. 7. Typical SWOT Analysis Factors STRENGTHS WEAKNESSES OPPORTUNITIES THREATS Marketing expertise New, innovative product or service Location of business Cost advantage Quality advantage Strong brand/reputation Developing market (China, Online Sales) Mergers, joint ventures, alliances Loosening of regulations Removal of trade barriers Market led by a weak competitor Undifferentiated Product/Service Location of business Superior distribution channel by competitor Quality disadvantage Weak brand/reputation New competitor Price War Tightening of regulations Increased trade barriers Increases in taxes
    8. 8. Use of SWOTs: Challenges <ul><li>How can we Use each Strength? </li></ul><ul><li>How can we Stop each Weakness? </li></ul><ul><li>How can we Exploit each Opportunity? </li></ul><ul><li>How can we Defend against each Threat? </li></ul>
    9. 9. Target Customers <ul><li>Describe the target individual or group of people on whom you will focus your attention. </li></ul><ul><li>Who are they? </li></ul><ul><li>Where are they? </li></ul><ul><li>What are they buying? </li></ul><ul><li>From whom? </li></ul><ul><li>Describe your product or service and the benefit it will provide your customers. </li></ul><ul><li>Identify your Customers: </li></ul><ul><li>Retail </li></ul><ul><li>Business to Business </li></ul>
    10. 10. Customer Profile Factors <ul><li>Define your Retail Customer’s Profile: </li></ul><ul><li>Define your Business to Business Customer’s Profile: </li></ul>Industry Size Volume Levels Decision Maker vs. Purchasing Agent Location Other Age Gender Income Levels Ethnicity Homeowner / Renter Location Other
    11. 11. Match Characteristics to Customer Wants <ul><li>Define characteristics of your Service or Product: </li></ul><ul><li>Features </li></ul><ul><li>Benefits </li></ul><ul><li>Uniqueness </li></ul><ul><li>Does it fill a “Niche”? </li></ul><ul><li>Define your Customer’s wants: </li></ul><ul><li>Features </li></ul><ul><li>Benefits </li></ul><ul><li>Advantages </li></ul>
    12. 12. Consider the Competition <ul><li>Compare your Service or Product with your </li></ul><ul><li>Competition against the same criteria: </li></ul><ul><li>Features </li></ul><ul><li>Benefits </li></ul><ul><li>Uniqueness </li></ul><ul><li> “ Niche” </li></ul><ul><li>Does your target customer want your product or service OR your competitor’s? </li></ul>
    13. 13. Financial Analysis <ul><ul><li>Prepare a formal Profit and Loss statement each month </li></ul></ul><ul><ul><li>Prepare a formal Balance Sheet each month </li></ul></ul><ul><ul><li>Prepare a forecast of income and expenses for the balance of the year </li></ul></ul><ul><ul><li>Compare the forecast to the budget by line item </li></ul></ul><ul><ul><li>Make required adjustments to achieve the budget </li></ul></ul>
    14. 14. Break-Even Point <ul><li>The break-even point (BEP) is the point at which cost or expenses and revenue are equal </li></ul>It can be calculated once fixed costs and variable costs are identified
    15. 15. Cash Flow Management <ul><li>Cash Flow is the flow of money coming into and going out from a business. </li></ul><ul><li>Positive cash flow is when cash flows in faster than it is flowing out. </li></ul><ul><li>Managing cash flow is a matter of planning: </li></ul><ul><li>If you don’t start with a plan, you will spend a great deal of time reacting to events instead of anticipating events. </li></ul>
    16. 16. The Elevator Pitch <ul><li>Elevator Pitch </li></ul><ul><li>Someone who does not know your product would understand in the time it takes to ride an elevator up to the second floor (30-45 seconds) </li></ul><ul><ul><li>State your business concept </li></ul></ul><ul><ul><li>What is it you do for customers? </li></ul></ul><ul><ul><li>How does the customer benefit? </li></ul></ul><ul><ul><li>Who is in your target market? </li></ul></ul><ul><ul><li>How can prospects be identified? </li></ul></ul>

    ×