Business plan strategies for success - short notes version

1. Building a Business for
Effective Growth &
Increased Value
Presented by
Warren J. Rutherford
The Executive Suite

2. Key Points
 Business Planning Elements
 Planning for Value
 Growth Strategies
 Target Marketing
 Financial Management
 Human Resource Development
 Transition Strategies
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3. Business Plan Elements
 Executive Summary –
 Mission, Objectives, Keys to Success
 Company Summary –
 Ownership, Products/Services, Locations/Facilities
 Products and Services –
 Description, Competitive Comparison, Sales
Literature, Sourcing, Technology, Future Products &
Services
 Market Analysis –
 Market Segmentation, Industry Analysis, Market
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4. Business Plan Elements
 Strategy and Implementation –
 Marketing Strategy, Sales Strategy, Strategic
Alliances, Service & Support, Milestones
 Management –
 Organizational
Structure, Management Team,
Management Gaps, Personnel Plan, Other
 Financial Plan –
 Assumptions, Financial Indicators, Break-even
analysis, Projected P&L, Cash Flow, and Balance
Sheet, Business Ratios.
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5. The Successful Business
Plan…
 A Written document
 Describes your business
 How it will be successful
 Outlines the purposes and goals of the business
 Illustrates how the goals will be realized
 Will include a detailed marketing strategy
 Contains formal profit & loss projection and cash
flow projections designed to show that if
business develops as expected, it will be
profitable and will generate positive cash flow.
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6. Planning for Value
 Align goals & objectives to specific value set
 Values and guiding principles such as –
 Humility, Loyalty, Trust
 Respect for self, others, the competition
 Caring, Responsive, Adaptable
 Integrity, Credibility
 Industrious, Hardworking, Fulfills Obligations
 Socially Conscious, Legally compliant with laws
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7. Growth Strategies
 Align functions to meet customer and
employee requirements.
 Leverage information technology for
efficiency in customer service, production,
sales & marketing.
 Establish goals that allow performance
incentives –align orientation to employees
– team-based, participative, empowered.
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8. Target Marketing
 Customer Retention –
 Who are your Customers?
 Cross-Sell/Up-Sell –
 What do your Customers like?
 Increase Revenue –
 Where can you find more Customers?
 Target Marketing/Reduce Costs –
 How can you best advertise to potential
Customers?
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9. Who Are Your Customers?
 Do you know where they live?
 Do you know how much they spend?
 Have you identified what they purchase –
and do not purchase?
 Are there ways you can service them
better?
 Have you identified the purchasing
behaviors in your selling or “trade” area?
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10. What Do Your Customers Like?
 How can you offer the right product to the
right customer, at the right time?
 Based on your location, have you identified
the likelihood of what any customer will buy?
 Have you developed a mailing list for
customers most likely to buy products you are
promoting?
 Have you developed a model that identifies
cross-sell/up-sell opportunities at the point of
sale?
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11. Financial Management
 Budget, then budget some more – tie to Plan.
 Revenues, COGS, Other Expenses.
 Budget analysis, break-even analysis.
 Monthly P & L, Balance Sheet.
 Regular Cash-Flow Analysis.
 Aggressive AR process – professional
 Regular, steady AP process – think credit rating
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12. Human Resource Development
 Who does what, when, for what purpose?
And how well?
 Job descriptions, pay rates, performance-
based pay, performance appraisals.
 Employee handbooks – rules of the road.
 Benefits – medical, leave, retirement.
 Tie to value and guiding principles.
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13. Transition Strategies – When to
Begin an Exit Strategy
 When you are ready to retire?
 When you decide to pursue another endeavor?
 When your child is ready to take control?
 The day one starts a business is the best and
most appropriate time to implement an exit
strategy.
 WHY?
 You start out focused, tracking your personal
goals & business objectives.
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14. Why Plan to Exit When I Am
Just Beginning?
 Establish a clear set of business goals.
 Create the mechanism to monitor these goals.
 Aim the strategy at building strategic value.
 Value? Where did I hear that before?
 Building strategic value contributes to
economic wealth for the Entrepreneur.
 Strategic value derived from value drivers.
 Strategic value transferable to a strategic buyer
commands an acquisition premium.
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15. Transition & Succession Plan
 Choosing the successor.
 Commitment to family and employees of the
business.
 Using strategic business plan, identify specific
company objectives and goals for successor.
 Provide family and business with set of goals to
strive for.
 Position family members in functions with
complimentary skill sets to successor.
 Leadership Transfer – Successor runs business
more, owner runs business less.
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16. Transition & Succession Plan
 Owner establishes sound financial retirement
plan and outside activities to enjoy.
 Family discussion on leadership skills needed,
entry and exit conditions, decision-making
policies, and conflict resolution procedures.
 Successor works to practice sound
management.
 Ensure employee benefit plans in place to keep
key employees.
 Financing owner transition – options limited in
family-held company.
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17. Thank you!
For more information -
Warren J. Rutherford
Owner
The Executive Suite
129 Airport Road
Hyannis, MA 02601
wjr@theexecutivesuite.com
www.theexecutivesuite.com
508-778-7700
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