South Africa has limited growth potential in the short term. While government gets its house in order, we need to make sure that, as business owners, we have the correct strategy in place to meet the challenges that face us. Real value lies in the process of putting the plan together. The act of planning helps you think things through thoroughly, and to critically re-assess your assumptions and ideas. A good strategy needs to be short, sharp and coherent, with a strong opening paragraph illustrating where you are going and how you aim to get there.
Strategy and Goals
- List your goals and your mission statement
- Develop a strategic plan of how your business will achieve its goals
- Reflect on the sustainability of your venture – is it intended to be short term or a long-term venture?
- The team – your staffing needs and ways to meet them
- Suppliers - make a list of everything required including the name of the suppliers and their prices and terms
- Location - explain the location outlining the details (address, rent, taxes, and so on)
- The strengths, weaknesses, opportunities and threats of your venture
- Financial numbers – cash flow, sales forecast, personal expenses, profit and loss
- List the amount required in a budget including the source of capital (if applicable)
- Be realistic. The numbers need to reflect that your venture is a good idea and that your assumptions can be turned into a positive cash flow which in turn will translate into profit
- How long will it take to break even? How long will it take to create positive cash flow?
- Conduct a target market analysis
- Who or what is your competition? How much of the market do they own already?
- What is your competitive advantage – is it your pricing, niche product or service?
Legal and compliance
- Licenses and permits –note whether they are required and how you will obtain them
- The trading vehicle through which you intend operating
Keep detailed notes on your sources of information and the assumptions underlying your financial data.
The document will become a “living” one which you will be able to refer to, revise and develop as your business changes and grows. Your strategy and mission statement will assist you with performance measurement and in assessing your targets and goals.
If you require professional assistance to develop a strategy do not hesitate to contact us in this regard on 021 702 7800.