Key components of a successful business plan
04 July 2019
What did you do the last time you created a business strategy? Chances are you looked at your business' current state of play, as well as what has occurred in the past. However, in these times of constant change, it is crucial you start considering strategy from a future lens.
What's in store? Questions to ask about the future
When you sit down to create a business strategy, ask yourself these key questions:
- Who are my future customers likely to be?
- What products and services will those customers be buying?
- How are the customers going to transact with the business in the future?
- What will communication look like?
Considering these questions will allow you to create a business model that can evolve and be successful even in times of turmoil. Otherwise, you can end up in a situation where, by the time you've actually implemented a strategy, things have moved on and you've lost opportunities.
Assessing the success of your forward-thinking business model
It is not enough just to create a business strategy. You also need to know whether it has been successful or not, and the best KPI to assess the success of your strategy is business value.
Understanding the current value of your business is critical to assess whether you have been successful in execution of strategy. Ultimately, you need to ask yourself the question “have I created more value as a result of my strategy or have I destroyed value?” Once you know the mechanics of business value, you can understand which levers to pull to increase it, and start building these elements into your strategy.
Operating through the lens of always being ‘investor or sale’ ready, and understanding the current and future value of your business, will drive business success.
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