Once you’ve conducted your research it’s time to plan. We develop plans to create direction; they present our overall game plan and should outline the foundations, goals and strategies of a business. A strategic plan will provide an overview of the business and an outlook into the future, which can reveal any challenges that may arise. It is a run through of the business and its operations, if it is unsuccessful on paper, the chances of success in reality are slim.
In the past, poor strategic management has led to the failure of countless businesses. The Sydney Morning Herald reported 44% of businesses going into external administration in 2011-12. This trend has been prevalent over numerous years in Australia and can be avoided by creating a detailed business plan.
Forbes published an article entitled 5 reasons you need a business plan, which detailed the vital sections of a business plan and also explained why they are necessary. Business plans include common goals that all teams within a business will work towards; this creates fluency throughout departments and increases the chance of success. The plan should highlight the market opportunity and explain the current market and its trends which then impact your goals and department objectives. These areas of the plan provide the business with a cause for operation.
The reason for setting long term goals
- Your business concept
- The business opportunity
- Your mission and vision
- Your overall goals
- A situational analysis; where are you now
- Strategies and methods
- Your financial plan
- A review process
Builders are familiar with using plans in construction, it would be foolish to start building without constantly reviewing a detailed plan; this is what you need to do in business. These sections of the plan are the foundation of your house; the details are walls, flooring, fixtures etc. If you were to add them in without a sound structure would you want to live in the house?
Each section of your plan should be detailed and explain how they will address organisational objectives. This will assist in prioritising tasks and delegating resources over an extended period of time. Plans provide the pportunity to look in the future and determine if your business is sustainable and has the ability to effectively operate over time.
One vital aspect of a plan that is often overlooked is analysis or review. You may have a sound and extensive business plan, however without a review process you will be unable to determine which strategies are effective and areas for improvement. These are all learning opportunities for business owners and should not be ignored. Feedback should be welcomed; it is a valuable insight into operations and a process that should be included in your business plan.
Customer experience feedback can fix your business.
Hotondo Homes’ business owners are supported in their planning process by their sales managers; they work together in determining their pricing, budgeting, operations, design, sales and marketing plans. We work together in reviewing performance, and updating monthly sales and marketing plans throughout the life of the business. Every member of the Hotondo Homes’ network can review their performance on a daily basis through our internal systems, including their success rate in converting sales leads to jobs. Our support system is there from the first moment a builder joins the network right until they’re ready for retirement.
If you would like more information about becoming a member of the Hotondo Homes network, please contact us below.