This document discusses strategic planning for businesses. It emphasizes that successful businesses identify problems and take action to solve them, while mediocre businesses only identify issues but make excuses without taking action. The document also outlines the benefits of strategic planning such as increased profitability and opportunities. It provides a framework for developing a strategic plan including defining the vision, mission, goals, and targets. Finally, it discusses competitive strategies and Porter's five forces model for industry analysis.

1. Strategic Planning for your Business
Siân Kelly
Inform Accounting Director, BSc (Hons), ACMA
Inform
Accounting

2. SOME CONTENT LEFT OUT DUE
TO COPY ISSUES

3. Successful vs. Mediocre firms
n Successful businesses identify problems,
make decisions and then act on them.
n Mediocre businesses identify problems
and then make excuses about why they
can do nothing to solve them.
Inform Accounting Strategic Planning for your Business

4. Basic strategic ideas
n Do not dismiss ideas.
n Do not think of the handful of clients for
whom they will not work.
n Identify the underlying concept – could it
be adapted to fit your business?
The importance of ideas;
“if you always do what you’ve always done, you’ll
always have what you’ve already got”
Strategic Planning for your BusinessInform Accounting

5. The necessity of planning
n Roughly less than 10% of practices have
a strategic plan.
n It’s hard to know what you need to do if
you don’t know where you’re going!
Strategic Planning for your BusinessInform Accounting

6. The benefits of planning
n More likely to achieve business goals.
n Greater profitability (if that’s your goal).
n Heightened awareness of opportunities.
n More focussed.
Strategic Planning for your BusinessInform Accounting

7. Developing a strategic plan
Vision
Mission
Long-term strategy
Strategic goals (SWOT)
Functional objectives
SMART targets
Marketing/implementation plan
Communicate the strategy
Strategic Planning for your BusinessInform Accounting

8. Generic competitive strategies
Competitive Advantage
Lower Cost Differentiation
Competitive
Scope
Broad Target Cost
Leadership
Differentiation
Narrow Target Cost Focus
Differentiation
Focus
n Cost Leadership: offer the lowest prices.
n Differentiation: offering unique products to a narrower market.
n Focus:
n Cost focus – not the cheapest, but cheaper than majority.
n Differentiation focus – unique products/services to satisfy demands
of narrow market.

9. Threat of new
entrants
Porter’s five-force model (1985)
Industry
Rivalry
Bargaining power
of suppliers
Bargaining power
of customers
Threat of
substitutes

10. Strategic goals (SWOT)
n SWOT; Strengths, Weaknesses, Opportunities
and Threats.
n Strengths and weaknesses are internal issues;
n What is the business good/not good at?
n Opportunities and threats are external issues;
n Dictated by the market.
n Fairly global statements.
Strategic Planning for your BusinessInform Accounting

11. SMART targets
n Create SMART targets for each area of the
business plan;
n Specific
n Measurable
n Achievable
n Relevant
n Timely
e.g.
Increase consultancy income to
£50,000 by the end of the financial
year.
Specific: consultancy income
Measurable: £50,000
Achievable: can be implemented
Relevant: business requires income
Timely: end of the financial year
Strategic Planning for your BusinessInform Accounting