In this week’s post, Dr. Business continue with Plan for Planning process by discussing STEP #2:
Step Two – What will help or hinder?
Typically called – “Key Problems & Opportunities” – this section/chapter identifies short term (within the next year) problems that the management team must deal with/resolve, and short term opportunities that can be exploited over the coming year.
Problems and opportunities also come from the SWOT analysis described in Step One. Every company has short term problems and opportunities that need to be described in their business plan. To have a well done and complete business plan theses issues have to be highlighted with the actions planned to deal with them discussed in detail.
The format for this presentation and discussion is:
- Description of the problem e.g. Training and development of sales personnel.
- Action plan: Contract with a professional sales training company for quarterly one day detailed seminars on professional selling techniques.
- Measurement: Individual salesmen’s improvement in their selling techniques as measured by: 1. Increased sales, and 2. Feedback from customer surveys.
- Description of the opportunity e.g. Implement Customer Relationship Marketing (CRM) system.
- Action plan: Research CRM systems for the one best suited for our business/marketplace during the first quarter.
- Evaluate and select a system during the second quarter.
- Begin implementation during the second half.
When done well this section/chapter of the business plan describes management’s proactive plans to deal with the problems and opportunities identified in the SWOT exercise. It represents positive actions that are being taken to deal with issues of critical importance during the first year of this business plan.
It should reinforce stakeholder’s confidence in the management team and motivate them to delve further into the longer range plans outlined in the business plan.