Why Doesn't Your Business Plan Consistently Secure Your Desired Results?

by: Leanne Hoagland-Smith

From small businesses to large corporations, when you render all the challenges and issues facing these economic engines from employees to growth and innovation, the inability to secure desired results or implementation always float to the top as the number one to number three obstacles that prevent business success. As a business owner or management executive, have you ever asked yourself one of these five questions:

1. How do I move from my vision to my desired results?

2. How do I get my employees to perform?

3. How do I recruit new employees with the skills that my company needs?

4. How do I attract new customers or clients?

5. Why can�t I consistently achieve my desired results?

All of these questions when rendered down are about implementation. The failure to implement each corporate wide business goal consumes valuable resources specifically time, people and money. These resources may have been already allocated to other initiatives.

Effective implementation is what separates the successful companies from the not so successful ones. Many authors from Rick Page in �Hope is not a Strategy� to Jason Jennings and Laurence Haughton in �It�s Not the Big that Eat the Small, It�s the Fast that East the Slow� write about the affects of poor implementation.

Possibly why implementation continues to vex today�s businesses is because executives search for an ineffective answer through a business plan instead of a strategic business plan. A recent search using Inventory Overture revealed that searches for business plan were over 200 times as many as for strategic business plan (148,650 vs. 614). From these searches, it suggests that business owners may be looking for the wrong answer.

Why choose a strategic business plan over a business plan? The answer is simple because a strategic business plan defines �Who Does What By When� through the critical success factors and supporting goals that are in alignment with the sales and marketing plans.

The structure of a strategic business plan is all about implementation. Using the ADDIE Plus methodology may help you in your efforts to create an effective strategic business plan.

Assess - The current market conditions, future market conditions and the organization need to be assessed. This evaluation should begin with an overall organizational assessment and may extend to internal and external customers.

Design � After the evaluation, a design is crafted. This design should include the vision, values and mission of the organization and is overall architecture for the plan. Simply, speaking this is the �Big Picture.�

Develop � The plan is developed according to the structure of the organization. Smaller plans or pictures such as marketing and sales fit within the overall plan.

Implement - Using specific goal setting and goal achievement, the strategic plan is implemented. At this juncture, who does what by when is identified.

Evaluate � Goal achievement is the mechanism to monitor and evaluate successful implementation.

Plus - Follow-up is the plus to ensure necessary course correction that may again require some new assessments along with design, development, implementation and evaluation.

Using the ADDIE+ methodology provides business owners a consistent vehicle from which to create, monitor, evaluate and follow-up on their strategic business plan.

If you truly want to reach that next level of success by bridging the implementation gaps, stop focusing on a business plan and take the time to create a strategic business plan that clearly defines who does what by when.

Buying a Franchise

by: Matt Bacak

is not for everyone. This guide will help you evaluate whether buying a franchise is right for you. It will help you understand your obligations as a franchise owner. Many people dream of owning and running their own business but are often let down by the reality of doing so.
By purchasing a franchise, you often can sell goods and services that have instant name recognition and can obtain training and ongoing support to help you succeed. But be cautious. Like any investment, purchasing a franchise is not a guarantee of success.
A franchise typically enables you, the investor or "franchisee," to operate a business. By paying a franchise fee, which may cost several thousand pounds, you are given a format or system developed by the company ("franchisor"), the right to use the franchisor's name for a limited time, and assistance.
While buying a franchise may reduce your investment risk by enabling you to associate with an established company, it can be costly. You also may be required to relinquish significant control over your business, while taking on contractual obligations with the franchisor.
Outlined below are some of the main points you need to consider before buying a franchise:
- Franchise fee: Your initial franchise fee, which may be non-refundable, may cost several thousand to several hundred thousand pounds.
- Royalty payments: You may have to pay the franchisor royalties based on a percentage of your weekly or monthly gross income. You often must pay royalties even if your outlet has not earned significant income during that time. In addition, royalties usually are paid for the right to use the franchisor's name.
- Advertising fees: You may have to pay into an advertising fund. Some portion of the advertising fees may go for national advertising or to attract new franchise owners, but not necessarily to target your particular outlet.
- Controls: To ensure uniformity, franchisors typically control how franchisees conduct business. These controls may significantly restrict your ability to exercise your own business judgment.
- Terminations and Renewal: You can lose the right to your franchise if you breach the franchise contract. In addition, the franchise contract is for a limited time; there is no guarantee that you will be able to renew it. A franchisor can end your franchise agreement if, for example, you fail to pay royalties or abide by performance standards and sales restrictions. If your franchise is terminated, you may lose your investment. Franchise agreements typically run for 15 to 20 years. After that time, the franchisor may decline to renew your contract.
Before investing in a particular franchise system, carefully consider how much money you have to invest, your abilities, and your goals.