keys to effective business planning

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• December 7, 2023

14 Key Steps for Effective Business Planning: Complete Guide

“Let’s start this journey through our detailed guide, where you’ll find everything you need for Niche Selection, Product Selection, Market Research, and Market Analysis . From fundamental strategies to innovative techniques, this article covers a broad spectrum of topics. Dive into sections on identifying your niche, mastering market research methods, and conducting thorough market analysis. Each segment is designed to clear any doubts and answer all queries related to these topics. With our article, be assured that every aspect of your search intent will be comprehensively addressed.”

Table of Contents

Introduction to business planning, definition and importance.

Business planning, a critical process for any entrepreneur, stands as the blueprint for company success. Delving into the heart of business planning, it’s much more than just a structured document; it’s the narrative of your business’s future. Imagine it as a compass, guiding your venture through the often-tumultuous waves of the market. Here, we’re not just scribbling down objectives, strategies, and methods. Oh no, it’s an intricate dance of aligning your company’s aspirations with the rhythmic movements of market dynamics, resource management, and the quest for profitability and sustainability.

Picture this: a well-orchestrated business plan, not merely a document, but a visionary’s tool, shaping decisions and carving out a path for long-term success. It’s in these pages that the seeds of future triumphs are sown. Let’s embark on this journey to uncover how a meticulously crafted plan can revolutionize the way you navigate the business world.

Overview of Article Contents

In this comprehensive guide, we’ll traverse through the key elements of creating a robust business plan. From conducting thorough market research to financial planning, each section is meticulously designed to guide you through every stage of business planning. Our journey will include practical steps, insightful tables comparing key data, and illustrative bulleted lists. True-to-life examples, including some from my personal experience in the business world, will enrich your understanding. This article is more than a guide; it’s a companion in your business planning journey.

The Fundamentals of Business Planning

What a business plan includes.

A business plan is more than a document; it’s a roadmap for your venture’s journey, encompassing your goals, strategies to achieve them, and the challenges you might face. It’s a versatile tool that serves various purposes, from securing funding to guiding your team. Here’s a breakdown in a bulleted format:

• Vision and Objectives: Outlining the primary goals and aspirations of your business.
• Market Research: In-depth analysis of industry trends, target market, and competition.
• Strategies and Tactics: Detailed plans for marketing, sales, and operations.
• Financial Projections: Revenue forecasts, budgeting, and financial needs.
• Organizational Structure: Roles, responsibilities, and company hierarchy.
• Implementation Timeline: Key milestones and timelines for important initiatives.

Key Components: Executive Summary, Company Description, Market Analysis

Each business plan comprises several critical components, forming the backbone of your strategy:

In the Executive Summary, I recall vividly outlining my company’s vision, which helped align our team and attract investors. The Company Description is more than history; it’s a narrative of your business’s purpose and potential. The Market Analysis, crucial for understanding your playing field, requires meticulous research and an objective view, something I learned is vital in making informed decisions.

Types of Business Plans

Traditional vs. lean startup plans.

In the realm of business plans, there are two distinct breeds: the Traditional and the Lean Startup. Each, like a key to its lock, fits perfectly with different business landscapes and objectives .

Traditional business plans are comprehensive, often containing detailed descriptions and long-term projections. They are ideal for businesses seeking substantial funding or those with a complex business model. On the other hand, Lean Startup plans are concise, focusing on summarizing only the most critical points of the plan. These are perfect for startups looking to quickly adapt and iterate their business model.

Here’s a comparative table to illustrate the differences:

In my experience, choosing between a traditional and a lean plan often depends on the specific needs and stage of your business.

Plans for Various Business Stages

Business plans must evolve with the business. The planning needs of a startup differ vastly from those of an established enterprise.

Startups usually require plans that emphasize market entry and growth strategies, whereas established businesses might focus more on expansion and sustainability. Here’s a table to help differentiate:

When I started my first venture, the focus was on market entry and survival, but as the business grew, the plan shifted towards expansion and managing complex operations.

How to Start a Business Plan

Initial steps.

Embarking on the creation of a business plan might initially feel like scaling a mountain, steep and overwhelming. Yet, when dissected into bite-sized, manageable morsels, this mountain transforms into a series of small hills, each easily surmountable. Picture the initial phase as laying down the bedrock, the very essence of your future empire.

Here, it all begins with crystallizing your business concept, a vivid picture of what you aim to achieve. Next, like a detective piecing together clues, you dive into a preliminary market analysis, a quest to unravel the mysteries of your industry and understand the moves of your competition. This isn’t just about setting the stage; it’s about painting the first strokes on your business’s canvas and defining the hues and contours of your entrepreneurial journey. Setting clear, achievable goals is also crucial at this stage.

Here’s a table outlining these initial steps:

From my journey, I found that setting clear objectives in the beginning provided a focused direction for my business plan.

Gathering Information and Resources

The next step in creating a business plan is gathering the necessary information and resources. This involves conducting detailed market research, understanding your target audience’s needs and preferences, and accumulating financial data and projections. It’s also essential to identify the resources, such as software or consultancy services, that can aid in crafting a comprehensive plan.

The following table summarizes this process:

In my experience, thorough research and resource gathering were instrumental in developing a plan that was not only realistic but also competitive.

Market Analysis in Business Planning

Importance and methods.

Market analysis is a cornerstone of business planning, vital for understanding the environment in which your business will operate. It offers insights into industry trends, customer behaviors, and competitive dynamics. This analysis helps in making informed decisions and crafting strategies that align with market realities.

The methods of market analysis include:

• Demographic Analysis: Understanding the age, gender, income level, and other attributes of your target market.
• Competitor Analysis: Assessing your competitors’ strengths, weaknesses, market share, and strategies.
• Trend Analysis: Identifying and evaluating industry trends and consumer preferences.
• SWOT Analysis: A comprehensive evaluation of your business’s Strengths, Weaknesses, Opportunities, and Threats concerning the market.

Through my experience, competitor and trend analyses were particularly revealing, offering crucial insights into market positioning and potential opportunities.

Tools and Techniques

Effectively conducting market analysis requires the right tools and techniques. These tools don’t just smooth the path; they sharpen the precision of your insights, turning rough guesses into fine-tuned knowledge.

Some of the key tools and techniques are:

• Surveys and Questionnaires: To gather direct feedback from potential or existing customers.
• Market Segmentation: Dividing your target market into segments based on certain characteristics to tailor strategies effectively.
• Data Analysis Software: Utilizing software tools for analyzing market data and uncovering patterns and insights.
• Industry Reports and Publications: Leveraging existing research and reports for a broader understanding of market trends and forecasts.

Incorporating these tools into my market analysis efforts significantly boosted the depth and breadth of my market understanding, guiding more strategic decision-making.

Crafting the Marketing and Sales Strategy

Developing plans and strategies.

Crafting a dynamic marketing and sales strategy is the lifeblood of business triumph. It’s a dance of comprehending your market’s pulse and wooing your audience with finesse. Imagine this: you’re not just setting goals, but lighting beacons – increasing brand visibility, skyrocketing sales, and seizing more market territory.

Your marketing plan should encompass various channels and tactics, including digital marketing, advertising, public relations, and promotions. Similarly, the sales strategy should focus on sales channels, pricing models, and sales team structure and training.

When developing these strategies, consider the following key elements:

• Audience Engagement: Understanding how to connect with your audience through effective messaging and branding.
• Budget Allocation: Determining how much to invest in different marketing and sales activities.
• Performance Metrics: Setting benchmarks and KPIs to measure the effectiveness of your strategies.

In my ventures, balancing the marketing budget between digital and traditional channels was a critical decision that significantly impacted our outreach.

Techniques for Target Customer Identification

Identifying your target customer is integral to effectively tailoring your marketing and sales efforts. This involves a deep understanding of who your ideal customers are, their needs, preferences, and behaviors.

Some techniques for identifying your target customers include:

• Customer Personas: Creating detailed profiles of your ideal customers based on market research and existing customer data.
• Market Segmentation: Dividing the market into smaller segments based on demographics, psychographics, or behavior to target more effectively.
• Feedback Analysis: Using customer feedback to understand their needs and improve your offerings accordingly.

One technique I found particularly useful was developing detailed customer personas, which helped in creating more targeted and effective marketing campaigns.

Porter’s Strategy in Business Planning

Porter’s Strategy, developed by Michael E. Porter, is a cornerstone concept in the realm of business strategy and competitive analysis. It’s particularly crucial for businesses at any stage, guiding them in navigating competitive landscapes and carving out a niche in the market. Porter’s framework consists of three generic strategies: Cost Leadership, Differentiation, and Focus. Let’s delve into how these can be integrated into business planning:

• Cost Leadership: This strategy aims to be the lowest-cost producer in the industry. It’s suitable for markets where price is a critical factor.
• Differentiation: This involves making your products or services unique. Differentiation can be based on design, brand, customer service, or technology.
• Focus: Focus strategy targets a specific market niche, with an emphasis on either cost leadership or differentiation within that segment.

Implementing Porter’s strategies in your business plan

• Analyzing Your Market: Understand the competitive forces and where your business fits.
• Identifying Your Competitive Advantage: Decide whether cost leadership, differentiation, or focus aligns with your strengths.
• Aligning Operations and Marketing: Ensure your operations and marketing strategies support your chosen Porter strategy.

Here’s a summary of the application of Porter’s strategies in business planning:

Incorporating Porter’s Strategy into your business plan can provide a clear direction for your competitive approach, helping to define your market positioning and strategic decisions. It’s a powerful tool for businesses looking to establish a competitive edge in their industry.

Operations Plan and Management Structure

Detailing operations, logistics, and technology.

The operations plan is the heartbeat of your business plan, detailing the daily pulse of your venture. It weaves through production, service delivery, logistics, supply chain intricacies, and the tech magic that makes it all run smoothly.

When detailing your operations plan, consider the following:

• Production or Service Delivery: How your product or service will be created and delivered to your customers.
• Supply Chain Management: How you will manage your supply chain, from sourcing raw materials to delivering the final product.
• Technology Utilization: The role of technology in your operations, whether for production, customer service, or internal communication.

In my own experience, integrating advanced technology in operations significantly streamlined our processes and enhanced efficiency.

Organizational Roles and Management Team

The management structure of your business is another vital element. It provides clarity on the roles and responsibilities within your organization, ensuring that every aspect of the business is effectively managed.

Key considerations for outlining your management structure include:

• Defining Roles: Clearly defining the roles and responsibilities of each team member.
• Leadership Team: Identifying your core leadership team and their qualifications.
• Organizational Hierarchy: Establishing a hierarchy that supports efficient decision-making and communication.

Drawing from my journey, having a clear organizational structure was fundamental in maintaining smooth operations and fostering a collaborative work environment.

Financial Planning in Business

Financial projections and budgeting importance.

Financial planning is a pivotal aspect of business planning, central to the sustainability and growth of any enterprise. This section emphasizes the importance of creating accurate financial projections and budgeting. Financial projections help in forecasting future revenues, expenses, and profitability, guiding business decisions and strategies. Budgeting, on the other hand, ensures that you allocate your resources efficiently, preventing overspending and helping maintain financial health.

Key aspects to consider in financial planning include:

• Revenue Projections: Estimating future sales based on market analysis, historical data, and business goals.
• Expense Budgeting: Identifying and planning for both fixed and variable costs.
• Profitability Analysis: Calculating expected profits by subtracting projected expenses from revenues.

In my ventures, realistic financial projections were a cornerstone in securing investor confidence and guiding our growth strategy.

Financial Analysis Tools

Various tools can assist in financial planning and analysis, making the process more accurate and manageable. This table outlines some essential financial analysis tools:

Incorporating these tools into my financial planning process significantly improved our accuracy and decision-making capabilities.

Business Planning for Different Sectors

Planning variances across industries.

Business planning is a tailor-made journey, varying distinctly across industries. Each sector dances to its rhythm of challenges, opportunities, and market dynamics, all of which must echo through your business plan. For instance, the technology sector might focus heavily on innovation and rapid growth, whereas a retail business plan might prioritize location and customer experience.

Consider these variances:

• Market Dynamics: Each industry has distinct market trends and customer behaviors.
• Regulatory Environment: Different sectors are subject to varying levels of regulation.
• Technology Utilization: The role and impact of technology can vary widely between industries.
• Competition: The intensity and nature of competition differ in each sector.

Here’s a table that illustrates some of these variances:

Examples of Multiple Sectors

To further illustrate how business planning adapts to different sectors, let’s look at some examples:

• Technology: A tech startup might focus its plan on securing venture capital and scaling quickly.
• Retail: A retail business plan could emphasize location analysis and in-store customer experience strategies.
• Manufacturing: This sector might prioritize operational efficiency and supply chain management.

Here’s a table with examples:

Drawing from my own experience, adapting the business plan to the specific needs and realities of the industry was key to achieving success.

Business Planning Tools and Software

Overview of tools and software.

In today’s digital age, various tools and software significantly simplify the business planning process. These tools range from comprehensive business plan creation software to specialized applications focusing on financial projections, market analysis, or strategic planning. Utilizing these tools can enhance accuracy, save time, and provide valuable insights.

Here’s an overview of some key tools:

• Business Plan Software: Software like LivePlan and Bizplan helps in creating, formatting, and organizing your business plan.
• Financial Modelling Tools: Applications such as QuickBooks and Xero offer financial tracking and projections.
• Market Analysis Software: Tools like MarketResearch.com provide industry reports and market data.

This table lists some popular tools along with their primary functions:

Comparisons and Recommendations

Choosing the right business planning tool depends on your specific needs, business size, and the aspects of planning you find most challenging. Here are some comparisons and recommendations:

• For Comprehensive Planning: LivePlan is excellent for those who need a detailed, all-in-one solution.
• For Financial Focus: QuickBooks and Xero are ideal for businesses that need robust financial tracking and analysis.
• For Market Analysis: MarketResearch.com offers extensive market data, beneficial for in-depth market analysis.

This table provides a comparison:

In my experience, using a combination of these tools, like LivePlan for overall planning and QuickBooks for financial management, provided a balanced approach to business planning.

Common Challenges and Solutions in Business Planning

Potential roadblocks.

Business planning, while essential, is often fraught with challenges that can hinder progress. Recognizing these potential roadblocks is the first step in navigating them effectively. Common challenges include:

• Underestimating Market Complexity: Many entrepreneurs misjudge the complexity of their target market, leading to unrealistic plans.
• Inadequate Financial Planning: A lack of thorough financial projections can result in funding shortfalls or mismanagement of resources.
• Overlooking Competition: Failing to properly analyze competitors can lead to strategies that don’t adequately address market realities.
• Rigid Planning: Overly rigid plans can hinder adaptability in a dynamic business environment.

These challenges can significantly impact the effectiveness of a business plan and, consequently, the success of the business.

Strategies for Overcoming Challenges

Addressing these challenges requires strategic thinking and adaptability. Here are some strategies to overcome common business planning hurdles:

• Conduct Thorough Market Research: Gain a deep understanding of your market to create realistic and informed strategies.
• Develop Detailed Financial Projections: Use tools and professional advice to create comprehensive financial plans.
• Regular Competitor Analysis: Continuously monitor competitors to stay ahead of market trends and shifts.
• Flexibility in Planning: Build flexibility into your business plan to allow for adjustments in response to market changes.

During my business planning, I found that regularly revisiting and adjusting the plan in response to new market information was key to staying relevant and competitive.

The Role of Business Plans in Fundraising

Attracting investors or securing loans.

A well-crafted business plan is crucial in attracting investors and securing loans. Your business plan is a showcase, highlighting your venture’s potential, strategic insight, and dedication to triumph. For investors and lenders, it’s a lens magnifying risks and rewards, pivotal in their decision-making process.

Key elements that appeal to investors and lenders include:

• Clear Value Proposition: Conveying the unique benefits of your business.
• Solid Market Analysis: Showing an understanding of the market and its potential.
• Realistic Financial Projections: Presenting well-researched financial forecasts.
• Effective Management Team: Demonstrating the team’s capability and experience.

Investor-Focused Elements in Business Plans

Certain elements of a business plan are particularly critical to investors. These elements showcase the business’s potential for growth and profitability.

Here’s a table outlining these key elements:

In my experience, emphasizing these elements in the business plan significantly increased our attractiveness to investors.

List of Venture Capital Investment and Fundraising Companies in India

India’s burgeoning startup ecosystem is supported by a robust network of venture capital and fundraising companies. These firms are instrumental in providing the necessary capital to fuel growth and innovation.

Here’s a list of notable venture capital and fundraising companies in India, along with their websites:

These firms have been instrumental in the growth of various successful startups in India, providing not just capital but also strategic guidance and networking opportunities.

Updating and Revising Your Business Plan

When and how to update.

A business plan is not a static document; it requires regular updates to remain relevant and effective. Key moments to update your business plan include:

• After Major Market Changes: Adjust your plan in response to significant shifts in your industry or target market.
• Following Major Business Milestones: Update your plan to reflect achieved goals and set new ones.
• When Expanding or Pivoting: Modify your plan if your business is entering new markets or altering its product/service offerings.

The process of updating your business plan should involve:

• Reviewing Each Section: Assess each part of your business plan for current relevance and accuracy.
• Consulting Stakeholders: Engage with team members, investors, and advisors for insights and feedback.
• Incorporating New Data: Update your plan with the latest market research, financial data, and operational changes.

In my journey, regularly revisiting and revising the business plan ensured that it remained a useful tool for decision-making and strategy.

Keeping the Plan Relevant

Ensuring your business plan remains relevant over time is crucial for its effectiveness. This involves:

• Staying Informed: Keep abreast of industry trends, customer preferences, and competitive landscapes.
• Flexibility: Design your plan to accommodate changes and unforeseen circumstances.
• Continuous Learning: Incorporate new insights, learning, and feedback into your plan.

A key strategy I employed was setting periodic reviews, and aligning the business plan with current business realities and future aspirations.

Business Plan Templates and Resources

Providing templates and resources.

Access to quality templates and resources can greatly simplify the process of creating a business plan. Templates serve as your planning compass, guiding you to cover all vital facets of a business plan. Plus, a treasure trove of resources awaits, ready to enlighten your journey with wisdom and best practices.

Here’s a list of helpful templates and resources, along with a brief description:

These resources were invaluable in my planning process, offering both structure and flexibility.

Customizing Guidelines

While templates provide a starting point, customizing your business plan to reflect your unique business is essential. Here are some guidelines for customization:

• Tailor to Your Audience: Modify your plan based on who will be reading it, whether investors, lenders, or internal stakeholders.
• Reflect Your Business’s Unique Aspects: Emphasize elements that set your business apart from competitors.
• Update Financials to Your Specifics: Ensure the financial projections and budgets accurately reflect your business’s financial situation.

Incorporating these customization guidelines ensures that your business plan is not only comprehensive but also reflects the unique identity and goals of your business.

In this comprehensive guide, we’ve gone through the critical stages of business planning, from understanding market dynamics to crafting effective strategies and making informed financial decisions. This journey, enriched with practical insights and tools, aims to empower entrepreneurs and business leaders to craft plans that are both visionary and pragmatic. Remember, a well-structured business plan is more than a document; it’s a roadmap guiding your venture toward success and sustainability. As you embark on or continue your business journey, let this guide be a cornerstone in your strategic arsenal.

Additional Resources

Links to further reading and resources.

To further enhance your knowledge and skills in business planning, here are some valuable resources:

• Harvard Business Review – For insightful articles on business strategies and management.
• Entrepreneur Magazine – Offers a plethora of resources for business planning and entrepreneurship.
• Investopedia – Business Plan – A comprehensive resource for understanding various business terms and concepts.

Recommendations for Continued Learning

Continuing your learning journey is vital in keeping up with the ever-evolving business landscape. Here are some recommendations:

• Coursera – Business Strategy Courses – Online courses from top universities and institutions.
• Udemy – Business Plan Courses – Practical courses on business plan development.
• Khan Academy – Entrepreneurship – Free courses on entrepreneurship and business fundamentals.

These resources, combined with the insights from our guide, will equip you with the knowledge and tools to create a robust and effective business plan.

Call to Action

Encouraging readers to start their business planning journey.

Reading this comprehensive guide isn’t merely a quest for knowledge, but a launchpad for action. Stepping into your business planning adventure marks a daring stride toward your entrepreneurial dreams. Seasoned tycoons fine-tuning their strategies or novices crafting their inaugural plans, the moment for action is ripe. Harness this guide’s wisdom and tools to forge a plan that mirrors your vision and the truths of your market.

Suggestions for Next Steps and How to Apply the Information

To translate the knowledge from this guide into action, follow these steps:

Each step is designed to move you closer to a robust and effective business plan. Remember, planning is an ongoing process. As you learn and grow, continually revisit and update your plan to keep it aligned with your business’s evolution. Now, armed with this guide as your blueprint, stride boldly forward on your business planning odyssey, transforming your vision from mere thought to tangible reality.

Frequently Asked Questions (FAQs)

• How long should a typical business plan be? While a typical business plan’s length can be a dance between 15 and 50 pages, it’s the depth that counts, ensuring every critical aspect of your venture is thoroughly illuminated. The length waltzes with your business’s intricacy and the plan’s intent.
• Can a business plan guarantee funding from investors? Crafting a stellar business plan boosts your odds for funding, yet it’s not a magic key. Investors weigh a mosaic of factors: the plan’s finesse, your business model’s solidity, market potential, and your team’s prowess.
• How often should I review and update my business plan? You should revisit and refresh your business plan at least once a year, or when the winds of change blow through your market, bringing shifts or new rivals into play.
• Is a business plan necessary for a small or solo entrepreneur? Even for solo voyagers or small-scale entrepreneurs, a business plan stands as a beacon, guiding strategy, sharpening decisions, and unlocking doors to funding when needed.
• What is the biggest mistake to avoid when writing a business plan? One of the biggest mistakes is not conducting thorough market research. This can lead to unrealistic projections and strategies that don’t align with market realities.
• How detailed should the financial projections in a business plan be? Financial projections should be as detailed as possible, including income statements, cash flow statements, and balance sheets for at least three to five years into the future.
• Can the business plan format be modified to suit specific needs? The business plan format should be adaptable to suit your specific business needs and the audience for whom it is intended (investors, lenders, partners, etc.).
• Should a business plan include information about the exit strategy? Yes, including an exit strategy is important, especially for investors, as it outlines how they will realize a return on their investment.
• How can I protect the confidentiality of my business plan? To safeguard the secrets of your business plan, a non-disclosure agreement (NDA) becomes your shield, signed by stakeholders like potential investors or partners before you unveil your blueprint.
• Is it advisable to hire a consultant to write a business plan? Bringing a consultant on board can be a game-changer, particularly when you’re strapped for time or expertise in drafting a meticulous plan. Yet, your active involvement is key to ensuring the plan truly echoes your vision and goals.

Prashant P. Chauhan

Meet Prashant Pratap Chauhan, the savvy founder behind The Winning Leap, a hub for sharp financial insights and expert analysis in the realm of finance blogging.

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How to Write the Perfect Business Plan: 10 Essential Steps

Whether you’re starting a new small business or are already years into operating one, a business plan is one of the best ways to clarify your long-term vision. Follow our step-by-step guide to writing a highly effective business plan.

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hether you’re starting a new small business or are already years into operating one, a business plan is one of the best ways to clarify your long-term vision. While every business plan is different, there are several key elements to consider that will benefit you in the long run. 

Follow our step-by-step guide to writing a highly effective business plan. 

What is a business plan?

A business plan is a document that outlines your business goals and how you plan to achieve them. Ideally, this will become your roadmap for marketing, sales, finance, and growth. 

In other words, a business plan is...

• An explanation of your overall vision.
• A valuable tool to plan and track your business fundamentals.
• An overview of your path to profitability, which can help get funding for your company.

Do You Need A Business Plan?

While it’s not a requirement, having a business plan is strongly recommended. In a recent QuickBooks survey , nearly 70% of current business owners recommended writing a business plan.

Creating a business plan is especially useful in the following scenarios:

• Applying for business loans
• Seeking additional rounds of funding or investors 
• Growing your employee headcount  
• Attracting top-level management candidates 
• Looking for opportunities to scale your business

10 Steps To Creating A Comprehensive Business Plan

While not every business plan is the same, there are a few key steps you should take to create an effective and comprehensive document:

1. Create an executive summary

Think of an executive summary as your company's elevator pitch in written form. It should be 1 to 2 pages in length and summarize important information about your company and goals. If you are pitching your business plan to get funding, you should ensure your executive summary appeals to investors.

What should you include in an executive summary?

• An overview of your business
• Your company mission statement
• A concise description of products or services offered
• A description of your target market and customer demographics
• A brief analysis of your competition
• Financial projections and funding requirements
• Information about your management team
• Future plans and growth opportunities
• An overall summary of your business plan

2. Write your company description

Your company description is a more detailed and comprehensive explanation of your business. It should provide a thorough overview of your company, including your company history, your mission, your objectives, and your vision. A company description should help the reader understand the context and background of the business, as well as the key factors that contribute to its success.

What should you include in your company description?

• Official company name 
• Type of business structure
• Physical address(es)
• Company history and background information
• Mission statement and core values
• Management team members and their qualifications
• Products and services offered
• Target market and customer segmentation
• Marketing and sales strategy
• Goals (both short- and long-term)
• Vision statement

Novo Note : The company description is your chance to expound on the pain points your company solves. It should also give a reader an accurate impression of who you are. 

3. Conduct and outline market analysis

This is one of the most important steps in building a business plan. Here, you will assess the size and dynamics of the market your business operates in.

How to conduct a market analysis

Market analyses include both quantitative and qualitative data. You may want to conduct surveys or lean on existing industry research to gather this information. You’ll want to answer:

• What is the size of the market?
• How much revenue does your industry generate?
• What trends are impacting this industry?
• Where are opportunities for innovation?
• What are the most well-known companies in the industry? What tactics do they use to sell to customers? How do they price their offering?
• Where are there gaps in the market? 
• What are your customer demographics? What problems do they have that need solving? What are their values, desires, and purchasing habits?
• What barriers to entry, if any, exist? These could include startup costs, legal requirements, environmental conditions that impact consumer behavior, and market saturation.

What is your target market?

In this section, you will specify the customer segment(s) you’re targeting . You can divide customers into small segments organized by age, location, income, and lifestyle. The goal is to describe what type of consumer will be most interested in your offering.

Novo Note : Regardless of your company’s size, understanding the trends and opportunities within your target market enables you to build a more effective marketing plan to distinguish yourself from the marketplace and grow your business. This analysis might also help you find potential customers or new products you could offer. 

4. Analyze your competitors

After conducting a market analysis, you need to do a deep dive into your competitors. Look at how the competition is succeeding or failing and how each competitor has positioned itself. For example, you might want to evaluate your competitors’ brand, pricing, and distribution strategies. 

How to conduct a competitive analysis

You’ll want to research your competitors and ask the following questions:

• What are their strengths?
• What are their weaknesses?
• What are their customer reviews like?
• How do they price their offering(s)?
• What are their value propositions?
• What marketing and sales channels do they leverage?
• How are they growing and evolving?

Novo Note : After you develop a strong understanding of the competitive landscape, consider how your business is unique. Solidifying your competitive advantage can help you appeal to your target audience.  

5. Describe your products or services

This is your chance to go into more detail about the products and services you offer! Use this opportunity to note where your offering or service differs from others in the industry. Highlight the standout features of your product, your company’s unique ability to solve customer problems, and your product roadmap.

What to include:

• Your product catalog
• Key differentiating features
• Information about the production process
• The resources required for production
• Plans for future product releases

6. Define your marketing and sales strategy

Your marketing plan describes your strategy for connecting with your target market and generating leads. It doesn't need to be full-fledged at this point, but it should answer who you're trying to sell to and how you plan to target them. Investors also want to know how you plan on selling your brand and breaking into the market, so make sure to consider their perspective as you develop your marketing strategy.

• Your sales and marketing budget
• Your key sales and marketing objectives
• Details about your sales process and sales goals
• Platforms or strategies you’ll employ to reach your target audience
• PR initiatives, content ideas, and social media strategies

7. Gather your business financials and outline financial projections

Your financials section lays out your company's past and current performance. You can also include a roadmap that dives into financial projections for your business. Aim to include projections for the next five years at a minimum.

• Income statements
• Cash flow statements
• Balance sheets
• Explanation of any significant changes

Novo Note : Novo offers integrations with accounting software like Quickbooks and Xero , allowing you to seamlessly access all your financial information within your business checking account .

8. Describe your organization

Your business plan should also include an organizational chart that maps your company’s structure. 

What to include :

• Company’s management structure
• Other key personnel, along with their roles and responsibilities
• Expertise of your team (feature any specialists or experts)

Novo Note : This is also a good place to explain the legal structure of your company — for example, if you are an LLC , a corporation, or a sole proprietorship . 

9. Outline your funding requests

If you’re looking for business funding, include an outline of any funding requests and requirements.

• Why you are requesting funding
• What the funding will be used for specifically
• Desired terms and conditions of funding
• The length of time over which the funding will be used
• Type of funding required (for example, debt or equity)

Novo Note : Propose a five-year funding plan, and aim to be as detailed as possible about how you will utilize the funds to grow your business. 

10. Create an appendix

The last section, the appendix, includes supporting documents and additional information not listed elsewhere in your business plan. Not all of these items are necessary to include, so you’ll need to evaluate which are most relevant to your business. You might also want to include a table of contents to help keep the appendix organized.

Items to consider including:

• Bank statements
• Business credit history
• Legal documents
• Letters of reference

Sample Business Plans

Need an example to help you through the process? Check out the Small Business Administration’s downloadable examples or this even more in-depth one from Harvard Business School.

Tips For Creating A Great Business Plan

Here are some of our favorite tips for creating the most effective and efficient business plan:

• Keep it short and sweet : You want to be sure people will actually read your business plan, so stay on topic and to the point.
• Make it digestible : No need to use the fanciest terminology or draft up the most complex graphs. Keep wording and ideas simple and straightforward — it’s the most impactful way to get your information across.
• Triple-check your work : There’s nothing worse than noticing a grammar, spelling, or mathematical error when you’re presenting your vision. So proofread… and then proofread again!
• Start early : It’s never too late to write a business plan, but the earlier you do it, the stronger your strategy for growth and expansion will be from the start.
• Reference credible sources : If you are going to reference third-party research in your business plan, lean on sources that are widely recognized as authorities. Try tapping into trade associations and government resources, like U.S. Census data or data from the Bureau of Labor Statistics.
• Set yourself apart : Wherever you can, explain why your product or service stands out and how it can solve a problem.
• Be objective : Avoid the instinct to only showcase the good. Stakeholders and investors want to know that you are realistic and have a contingency plan if you hit a bump in the road.

Updating Your Business Plan

As with most situations in business (and life), things change! So don’t think that your business plan has to be set in stone after you create it. Instead, you should plan to return to it once a year and make updates.

Be sure to do the following when you review and update your business plan:

• Analyze your progress: Review your original business plan and compare it to your actual financial data. Are you moving in the right direction, or do you need to reevaluate your strategy?
• Consider whether your product offerings need to be adjusted: For example, decide if you want to diversify your product offerings or scale back and focus on a singular product. 
• Reassess your overall goals: Perhaps your sales goals have changed with your new marketing strategy. Or maybe your customer’s needs have changed. In any case, be flexible where needed. 

We know there’s a lot that goes into creating a business plan, but it’s worth it. There’s no one-size-fits-all formula for developing a business plan, but our steps outlined above will put you on the right track for developing a comprehensive, investor-friendly document.

Take time to review your business plan annually and make changes as your needs and goals change.

Novo Platform Inc. strives to provide accurate information but cannot guarantee that this content is correct, complete, or up-to-date. This page is for informational purposes only and is not financial or legal advice nor an endorsement of any third-party products or services. All products and services are presented without warranty. Novo Platform Inc. does not provide any financial or legal advice, and you should consult your own financial, legal, or tax advisors.

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Top Tips • 4 min read

Top Tips for Effective Planning

Use these tips to help devise a new plan or run through a new plan.

By the Mind Tools Content Team

Fail to plan, and plan to fail, or so the saying goes. Whether you are putting together a project plan, business plan or arranging an event at work, these top tips will help ensure you have got everything covered.

Decide What You Are Planning For

In order for your plan to be effective, you need to have a clear purpose in mind . If your purpose is to improve your team's productivity, for example, first you need to determine what the current level of productivity is. Then you need to decide what your plan should achieve. The more specific you can be the better, e.g. 'I want to improve my team's productivity by 10% by the end of this quarter'.

Consult Relevant Stakeholders

Unless your plan is very small in scope, you will need to seek the input of key stakeholders to ensure that it is fit for purpose. For a project plan, for example, you may wish to involve the project sponsor, project team members and your senior manager. Consulting key stakeholders during the planning process has a number of benefits . For example it:

• gives you access to a breadth of knowledge and opinion
• enables you to agree on others’ level of involvement
• helps to secure buy-in for your plan
• ensures that nothing important is left out

Break Your Plan Down

Think about what you need to do before your plan becomes a reality. Break your plan down into its relevant component parts. For example if you are planning for your team's performance reviews, you might need to:

• gather evidence
• schedule the meetings
• book a room
• complete any appropriate paperwork

Once you've identified each step for your plan, look to see if the step can be broken down even further. You can then allocate the necessary resources , e.g. time, money, people required for each stage.

Identify Appropriate Timescales

Consider how long each of the different parts of your plan is likely to take. When considering timescales it may be useful to think about:

• whether the different stages in your plan need to happen in sequence, or if some can run concurrently
• asking any external parties or suppliers involved in your plan to provide you with their own timescales
• how much contingency time you might need to build into your plan

Use SMART Objectives

The best-laid plans have SMART objectives; in other words, they are:

• Specific – you have specified exactly what you want to achieve from your plan and there is no vague or ambiguous language.
• Measurable – you are clear about how you will measure the success of your plan, and how and when you will know if it has been a success.
• Achievable – your plan, while stretching or challenging, is realistic. [1]
• Relevant – there is a clear purpose or benefit to your plan, e.g. the outcome is relevant to you or your team’s work roles or aims. [2]
• Time-bound – your plan needs to have deadlines or it will drift.

Communicate Your Plan

Once you are happy with your plan, it is essential to communicate its contents. You might wish to do this by emailing it round, posting in on your intranet, or sharing its contents during a team or departmental meeting. When considering who to communicate your plan to, consider:

• Who will be involved in putting my plan into action?
• Who will be affected by my plan?
• Who else might need to know about it?

Monitor and Review Your Plan

Once you have started to implement your plan, be prepared to monitor it and amend it in line with any changing circumstances and shifting expectations. Once all the actions in your plan have been completed, it is good practice to look back over your plan and do a proper review . For more complex plans, this is particularly effective if you do this review with everyone else who was involved in the planning process. During your review, consider:

• What aspects of your plan worked well?
• What didn’t work so well?
• Was there anything that you failed to anticipate during the planning process?
• What could you do differently in future to make your plans more effective?

This final step in the planning process is often missed out. However, it is extremely worthwhile. While subsequent plans may differ in nature, you may well be able to apply some of the lessons you have learned to help you plan even better in future.

[1] Sometimes expressed as Attainable.

[2] Sometimes expressed as Realistic.

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• Business Plans

Effective Planning Principles for Small Businesses

Business Planning Guidelines Make Business Planning Easier

Susan Ward wrote about small businesses for The Balance for 18 years. She has run an IT consulting firm and designed and presented courses on how to promote small businesses.

Providing Real Timely Information

Creating an action-based business plan, identifying risks and challenges, business planning and ethics.

If you're interested in starting a business, you will need to write a solid business plan . This plan has two main purposes. If external financing is needed, it helps attract investors or obtain a bank loan. It also serves as a road map from start-up through the life of your business. It helps you stay focused on the goals you set initially and can be modified to adapt to future changes in the industry.

There are certain items that you will need to consider to begin creating a successful business plan.

A good business plan should be based on current data. It should include specific information about your company, as well as other details such as industry outlook, target audience, services and products, marketing strategy, and funding.

However, before you begin writing your business plan you will need to gather information to help you identify priorities and make decisions. This may include research on target demographics, the market , and potential competitors .

The Small Business Administration provides guidance and templates for writing both a traditional and lean startup business plan.

A well-thought-out business plan provides detailed information on business goals and how they will be achieved. It's a realistic, attainable plan that describes exactly how objectives will be met.

To determine your company's goals, start by looking at the SMART goal-setting strategy. SMART can guide you in creating goals that are specific, measurable, achievable, relevant, and time-based. Note that goals are not set in stone and may need to be modified to meet changing customer needs.

Make sure your business plan is clear and to the point. Avoid using industry jargon and acronyms, so it is understandable to those unfamiliar with the industry.

Successful business planning involves not only assessing potential risks but coming up with ways to mitigate them. One strategy is to create a risk management plan . This helps prepare a company for dealing with various risks before they cause serious financial loss.

Types of common business risks include fines and penalties from noncompliance, lost revenue and profits, and loss of reputation.

There are many types of strategies to increase your business’s profits, however, some may be unethical—or even illegal. Before you make them part of your business plan, consider if they are ethical. In other words, do they support or enhance your values and the values that you hope are shared by society?

To avoid any legal liability, be sure to understand the customs and regulations applicable to your business.

Adopting unethical practices comes with the risk of being caught. It can cost you in expensive fines and penalties, as well as your reputation in the industry. This can result in the ultimate cost of losing your business.

Business planning is critical if you want your business to survive and succeed. It is not only a tool for attracting investors or getting a loan but serves as a plan that can guide you through the life of your business. By creating a realistic, actionable business plan, you have taken the first step to becoming a successful business owner.

The Power of Strategic Planning: A Key to Success

• September 20, 2023
• Business Strategy & Innovation

In a world where innovation drives success, strategic planning emerges as a powerful tool for organizations seeking to stay ahead of the curve. With the ability to align goals, identify opportunities, and foster creativity, strategic planning empowers organizations to adapt and thrive in the face of ever-changing market dynamics.

By combining analytical insight with effective communication and coordination, organizations can unleash their full potential and achieve sustainable success.

This article explores the transformative power of strategic planning and its key role in driving organizational competitiveness and innovation.

Table of Contents

Key Takeaways

• Strategy is about positioning an organization relative to its competitors.
• Strategic plans focus on competitiveness and respond to change and future opportunities.
• The process of strategic planning involves gathering information, analyzing market trends, and generating ideas.
• Successful implementation of strategic plans requires effective communication, coordination, and flexibility.

Understanding the Importance of Strategic Planning

Understanding the importance of strategic planning is crucial for organizations to stay focused and aligned, make informed decisions, identify opportunities, foster innovation, and enhance performance. Strategic planning plays a vital role in organizational growth by providing a clear roadmap for success.

It enables organizations to identify their strengths, weaknesses, opportunities, and threats through a comprehensive SWOT analysis. By understanding these factors, organizations can effectively manage risks and minimize potential pitfalls.

Strategic planning also helps organizations seize opportunities by proactively identifying market trends and customer needs. It fosters innovation and creativity by encouraging new ideas and approaches.

Furthermore, strategic planning enhances performance and sustainability by providing a framework for setting specific goals, developing strategies, and monitoring progress.

Overall, strategic planning is an essential tool for organizations seeking to achieve long-term success and overcome challenges in a rapidly changing business landscape.

Unleashing the Potential of Strategic Planning

Unleashing the potential of strategic planning requires organizations to effectively implement and adapt their strategies based on feedback and market changes. To truly maximize the potential of strategic execution, organizations must embrace the following:

Embrace innovation: Strategic planning opens the doors to new ideas and creative solutions, allowing organizations to stay ahead of the competition and meet the ever-changing needs of customers.

Foster collaboration: By bringing together diverse perspectives and expertise, strategic planning encourages collaboration and teamwork, leading to the development of more robust and effective strategies.

Embrace agility: The ability to quickly adapt and adjust strategies based on feedback and market changes is vital for success. Organizations that can navigate uncertainty and embrace flexibility are more likely to thrive in today’s dynamic business environment.

Key Elements of an Effective Strategic Plan

Embracing collaboration and agility are essential factors in developing an effective strategic plan. In today’s rapidly changing business landscape, communication plays a vital role in strategic planning.

Effective communication ensures that all stakeholders are aligned and working towards a common goal. It facilitates the exchange of ideas, promotes transparency, and fosters innovation. By encouraging open and frequent communication, organizations can adapt to market changes and seize new opportunities.

Additionally, flexibility is crucial in strategic planning. A rigid plan may become obsolete in the face of unforeseen circumstances. Organizations must be willing to adjust their strategies and tactics based on feedback and market dynamics. Flexibility allows for agile decision-making and enables organizations to stay ahead of the curve.

Building a Strong Foundation for Success Through Strategic Planning

Effective communication and adaptability are crucial elements in building a strong foundation for success through strategic planning. By effectively communicating the goals and objectives of the strategic plan, organizations can ensure that all stakeholders are aligned and working towards a common vision. This fosters a sense of unity and collaboration, creating a resilient organization that can weather any challenges that come its way.

Additionally, adaptability is necessary for long-term growth. It allows organizations to adjust their strategies and tactics in response to feedback and market changes, ensuring that they stay relevant and competitive in an ever-evolving landscape.

Building resilience and focusing on long-term growth through strategic planning empowers organizations to not just survive, but thrive in today’s dynamic and innovative business environment.

The Role of Strategic Planning in Organizational Competitiveness

Adaptability and flexibility play a crucial role in helping organizations maintain their competitiveness through strategic planning.

In today’s rapidly changing business landscape, organizations need to constantly analyze the market and adapt their strategies accordingly. Strategic planning allows organizations to assess market trends, identify their target audience, and understand customer needs.

It provides a framework for organizations to allocate resources effectively and efficiently. By conducting thorough market analysis, organizations can identify key opportunities and develop strategies to capitalize on them. Furthermore, effective resource allocation strategies ensure that organizations are utilizing their resources in the most optimal way, maximizing their competitive advantage.

In order to stay ahead of the competition, organizations must embrace innovation and constantly adapt their strategies based on market feedback. Strategic planning is the key to maintaining organizational competitiveness in today’s dynamic business environment.

Harnessing the Power of Strategic Thinking and Decision-making

Organizations can leverage strategic thinking and sound decision-making to gain a competitive edge in the dynamic business landscape. By unleashing their potential and navigating change effectively, they can drive innovation and stay ahead of the curve.

Here are three emotional responses that strategic thinking and decision-making can evoke in an audience:

Confidence: Strategic planning instills confidence in organizations, as it provides a clear direction and roadmap for success. It empowers them to make informed decisions and take calculated risks.

Resilience: Strategic thinking enables organizations to adapt and thrive in a rapidly changing environment. It equips them with the agility and flexibility needed to navigate unforeseen challenges and seize emerging opportunities.

Excitement: Strategic decision-making encourages organizations to explore new possibilities and push boundaries. It ignites a sense of excitement and curiosity, fostering a culture of innovation and continuous improvement.

Navigating Change and Embracing Opportunities With Strategic Planning

During times of change, organizations can leverage strategic planning to navigate shifting landscapes and seize new opportunities.

Embracing change is essential for organizations seeking innovation and growth. Strategic planning provides a structured approach to identify and respond to emerging trends and market shifts. It enables organizations to adapt their strategies and tactics to align with the changing environment, ensuring they stay ahead of the competition.

By analyzing market dynamics and customer needs, organizations can identify untapped opportunities and develop strategies to seize them. Strategic planning also fosters a culture of innovation and creativity, encouraging organizations to think outside the box and explore new possibilities.

With a well-executed strategic plan, organizations can successfully navigate change, embrace opportunities, and achieve long-term success in today’s dynamic business landscape.

Enhancing Performance and Sustainability Through Strategic Planning

Strategic planning is not just about navigating change and embracing opportunities; it is also crucial for enhancing performance and ensuring long-term sustainability. By maximizing efficiency through strategic planning, organizations can optimize their resources and achieve greater productivity. This allows them to stay ahead of their competitors and adapt to market changes effectively.

Strategic planning also plays a vital role in promoting long-term sustainability. By setting specific goals and objectives, organizations can focus their efforts on initiatives that align with their values and mission. Additionally, strategic planning fosters innovation and creativity, enabling organizations to develop new strategies and solutions that address emerging challenges.

Strategies for Effective Implementation of Strategic Plans

To ensure effective implementation of strategic plans, it is essential for leaders to communicate and coordinate effectively, allocate resources efficiently, and establish a monitoring and evaluation system.

Strategic plan implementation requires strong leadership that can effectively communicate the vision and goals of the plan to all stakeholders. By fostering open lines of communication, leaders can ensure that everyone is on the same page and working towards the same objectives.

Additionally, effective coordination is crucial in allocating resources efficiently. Leaders must ensure that resources are allocated to the right areas at the right time to maximize their impact.

Finally, establishing a monitoring and evaluation system allows leaders to track progress, identify areas for improvement, and make necessary adjustments to the plan.

Overcoming Challenges and Roadblocks in Strategic Planning

In the realm of strategic planning, challenges and roadblocks are inevitable. However, overcoming these obstacles is crucial for the success of any organization.

Strategic planning requires careful consideration and adaptability to navigate through the complexities of the business landscape.

Here are some common challenges that organizations may face during the strategic planning process:

Limited resources: Organizations often face constraints in terms of finances, manpower, and technology. This can hinder the implementation of strategic plans and require innovative solutions to overcome.

Resistance to change: People naturally resist change, and implementing new strategies may face resistance from employees and stakeholders. Effective communication and change management strategies are essential to address this challenge.

Uncertainty and unpredictability: The business environment is constantly evolving, making it difficult to predict future trends and outcomes. Strategic planning must be flexible and agile to adapt to unexpected changes.

Overcoming these challenges requires a proactive and strategic mindset. By embracing innovation and leveraging opportunities, organizations can successfully navigate through the obstacles and achieve their strategic goals.

The Impact of Strategic Planning on Organizational Innovation

Organizational innovation is greatly influenced by the implementation of a well-designed strategic plan. Strategic planning plays a crucial role in shaping the culture of an organization and creating an environment that fosters innovation.

By aligning the goals and objectives of the organization with its strategic plan, employees are motivated and empowered to think creatively and contribute to the overall innovation process. Strategic planning also has a significant impact on employee engagement.

When employees feel that their ideas and contributions are valued and are aligned with the organization’s strategic direction, they become more engaged and committed to their work. This leads to increased productivity, collaboration, and a sense of ownership in the innovation process.

Therefore, organizations that prioritize strategic planning not only cultivate a culture of innovation but also enhance employee engagement, resulting in greater success and competitive advantage in the ever-changing business landscape.

Measuring Success: Performance Indicators in Strategic Planning

Performance indicators are essential tools used in strategic planning to measure the success and effectiveness of an organization’s strategies and tactics. These indicators provide valuable insights into the progress and outcomes of strategic initiatives, allowing organizations to track their performance and make informed decisions.

By evaluating the effectiveness of their strategies, organizations can identify areas of improvement and take corrective actions to ensure their success. Performance indicators also help in measuring the effectiveness of different tactics employed, enabling organizations to optimize their resources and achieve desired outcomes.

Tracking progress through performance indicators fosters a sense of accomplishment and motivation among the team members, driving them towards innovation and continuous improvement. It provides a clear and objective way to measure success and effectiveness, encouraging organizations to strive for excellence in their strategic planning efforts.

Aligning Organizational Goals and Objectives With Strategic Planning

After measuring success through performance indicators, the next crucial step in strategic planning is aligning organizational goals and objectives. This entails ensuring that the entire organization is working towards a common vision and mission.

To achieve this alignment, organizations need to focus on two key aspects: aligning organizational culture and integrating stakeholder engagement.

Aligning organizational culture involves creating a shared set of values, beliefs, and behaviors that guide decision-making and actions within the organization. This includes fostering a culture of collaboration, innovation, and adaptability to support the implementation of strategic plans.

Integrating stakeholder engagement involves actively involving key stakeholders, such as employees, customers, suppliers, and the community, in the strategic planning process. By incorporating their perspectives and feedback, organizations can better understand their needs and expectations, leading to more effective strategies and outcomes.

Adapting and Evolving: The Dynamic Nature of Strategic Planning

Adapting and evolving is essential in the dynamic nature of strategic planning. Organizations must continuously assess market trends and adjust their strategies accordingly. In today’s fast-paced business environment, flexibility plays a crucial role in strategic planning. By being flexible, organizations can leverage market changes to their advantage and stay ahead of the competition.

Here are three emotional responses that highlight the importance of flexibility in strategic planning:

Opportunity: Flexibility allows organizations to seize new opportunities and explore innovative ideas, creating a sense of excitement and possibility.

Resilience: With the ability to adapt, organizations can navigate challenges and setbacks, instilling a sense of resilience and determination.

Competitive Edge: By leveraging market changes, organizations can gain a competitive edge, evoking a sense of confidence and success.

Embracing flexibility empowers organizations to proactively respond to change, drive innovation, and achieve long-term success in strategic planning.

Empowering Organizations Through Strategic Planning

Flexibility in strategic planning empowers organizations to proactively respond to change, drive innovation, and achieve their desired outcomes.

By embracing a flexible approach, organizations can unleash their potential and harness the power of strategic planning to stay ahead in a rapidly evolving business landscape.

Strategic planning provides a framework for organizations to identify opportunities, analyze risks, and develop strategies that align with their goals. It enables them to adapt to market changes, anticipate customer needs, and seize new opportunities.

Through strategic planning, organizations can foster a culture of innovation, encouraging creativity and out-of-the-box thinking. This not only enhances their performance but also ensures their long-term sustainability.

Frequently Asked Questions

How does strategic planning improve decision-making in an organization.

Strategic planning improves decision-making in an organization by providing a clear direction and framework for evaluating options. It enables organizations to assess risks, identify opportunities, and make informed choices that align with their long-term goals and objectives.

What Are Some Common Challenges and Roadblocks Encountered in the Strategic Planning Process?

Common challenges and obstacles in the strategic planning process include resistance to change, lack of alignment and communication, inadequate resources, and external market volatility. Overcoming these hurdles requires adaptability, collaboration, and a proactive approach to problem-solving.

How Does Strategic Planning Contribute to Organizational Innovation?

Strategic planning contributes to organizational innovation by fostering a culture of creativity and providing a clear direction for growth. It helps identify new opportunities, enhances competitive advantage, and improves decision-making for sustainable organizational success.

What Are Some Strategies for Effectively Implementing Strategic Plans?

Effective execution of strategic plans requires clear communication, resource allocation, and a monitoring system. Actionable steps include assigning responsibilities, adapting to feedback, and adjusting strategies based on market changes.

How Does Strategic Planning Enhance Organizational Performance and Sustainability?

Strategic planning enhances organizational performance and sustainability by providing a clear direction for growth. It helps organizations gain a competitive advantage through innovation and creativity, improving decision-making and aligning resources effectively.

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5 Keys to Successful Strategy Execution

• 17 Nov 2020

You’ve set organizational goals and formulated a strategic plan . Now, how do you ensure it gets done?

Strategy execution is the implementation of a strategic plan in an effort to reach business goals and objectives . It comprises the daily structures, systems, and operational goals that set your team up for success.

Access your free e-book today.

Why Is Strategy Execution Difficult?

There are several factors that make successful execution of your business strategy challenging.

According to the Harvard Business School Online course Strategy Execution , some of the most common factors include:

• Poor communication of strategic objectives
• Lack of employee buy-in
• Ineffective risk management

All of these can cause the best strategic plans to fall flat in their execution. In fact, poor execution is more common than you may realize. According to research from Bridges Business Consultancy , 48 percent of organizations fail to reach at least half of their strategic targets, and just seven percent of business leaders believe their organizations are excellent at strategy implementation.

“If you’ve looked at the news lately, you’ve probably seen stories of businesses with great strategies that have failed ,” says Harvard Business School Professor Robert Simons, who teaches the online course Strategy Execution . “In each case, we find a business strategy that was well formulated but poorly executed.”

How can you equip yourself and your team to implement the plans you’ve crafted? Here are five keys to successful strategy execution you can use at your organization.

Keys to Successful Strategy Execution

1. commit to a strategic plan.

Before diving into execution, it’s important to ensure all decision-makers and stakeholders agree on the strategic plan.

Research in the Harvard Business Review shows that 71 percent of employees in companies with weak execution believe strategic decisions are second-guessed, as opposed to 45 percent of employees from companies with strong execution.

Committing to a strategic plan before beginning implementation ensures all decision-makers and their teams are aligned on the same goals. This creates a shared understanding of the larger strategic plan throughout the organization.

Strategies aren’t stagnant—they should evolve with new challenges and opportunities. Communication is critical to ensuring you and your colleagues start on the same page in the planning process and stay aligned as time goes on.

2. Align Jobs to Strategy

One barrier many companies face in effective strategy execution is that employees’ roles aren’t designed with strategy in mind.

This can occur when employees are hired before a strategy is formulated, or when roles are established to align with a former company strategy.

In Strategy Execution , Simons posits that jobs are optimized for high performance when they line up with an organizational strategy. He created the Job Design Optimization Tool (JDOT) that individuals can use to assess whether their organization's jobs are designed for successful strategy execution.

The JDOT assesses a job’s design based on four factors, or “spans”: control, accountability, influence, and support.

“Each span can be adjusted so that it’s narrow or wide or somewhere in between,” Simons writes in the Harvard Business Review . “I think of the adjustments as being made on sliders, like those found on music amplifiers. If you get the settings right, you can design a job in which a talented individual can successfully execute your company’s strategy. But if you get the settings wrong, it will be difficult for any employee to be effective.”

3. Communicate Clearly to Empower Employees

When it comes to strategy execution, the power of clear communication can’t be overlooked. Given that a staggering 95 percent of employees don’t understand or are unaware of their company’s strategy, communication is a skill worth improving.

Strategy execution depends on each member of your organization's daily tasks and decisions, so it’s vital to ensure everyone understands not only the company's broader strategic goals, but how their individual responsibilities make achieving them possible.

Data outlined in the Harvard Business Review shows that 61 percent of staff at strong-execution companies believe field and line employees are given the information necessary to understand the bottom-line impact of their work and decisions. In weak-execution organizations, just 28 percent believe this to be true.

To boost your organization’s performance and empower your employees, train managers to communicate the impact of their team's daily work, address the organization in an all-staff meeting, and foster a culture that celebrates milestones on the way to reaching large strategic goals.

4. Measure and Monitor Performance

Strategy execution relies on continually assessing progress toward goals. To effectively measure your organization’s performance metrics, determine numeric key performance indicators (KPIs) during the strategic planning stage . A numeric goal serves as a clear measure of success for you and your team to regularly track and monitor performance and assess if any changes need to be made based on that progress.

For instance, your company’s strategic goal could be to increase its customer retention rate by 30 percent by 2026. By keeping a record of the change in customer retention rate on a weekly or monthly basis, you can observe data trends over time.

If records show that your customer retention rate is decreasing month over month, it could signal that your strategic plan requires pivoting because it’s not driving the change you desire. If, however, your data shows steady month-over-month growth, you can use that trend to reasonably predict whether you’ll reach your goal of a 30 percent increase by 2026.

5. Balance Innovation and Control

While innovation is an essential driving force for company growth, don’t let it derail the execution of your strategy.

To leverage innovation and maintain control over your current strategy implementation, develop a process to evaluate challenges, barriers, and opportunities that arise. Who makes decisions that may pivot your strategy’s focus? What pieces of the strategy are non-negotiable? Answering questions like these upfront can allow for clarity during execution.

Also, remember that a stagnant organization has no room for growth. Encourage employees to brainstorm, experiment, and take calculated risks with strategic initiatives in mind.

Related: 23 Resources for Mobilizing Innovation in Your Organization

Building the Skills to Successfully Execute Strategy

Setting strategic goals, formulating a plan, and executing a strategy each require a different set of skills and come with their own challenges. Keeping in mind that even the best formulated strategy can be poorly executed, consider bolstering your execution skills before setting strategic goals and putting a plan in place. Developing these skills can have a lasting impact on your organization's future performance.

Are you interested in designing systems and structures to meet your organization’s strategic goals? Explore our eight-week Strategy Execution course and other online strategy courses to hone your strategic planning and execution skills. To find the right HBS Online Strategy course for you, download the free flowchart .

This post was updated on November 9, 2023. It was originally published on November 17, 2020.

About the Author

How To Master Effective Planning: 9 Tips That Will Set You Apart

Unlock success with our top strategies for effective planning. Master organization, prioritize tasks, increase productivity, and achieve your goals faster!

Imagine saving two hours every day, simply by spending a few minutes in the morning on a specific task.

It might sound too good to be true, but according to recent research , investing just 10 to 12 minutes into careful planning can free up as much as two hours during the day.

That’s time saved from confusion, retracing steps, or last-minute rushes. With our lives getting busier, the art of planning has never been more crucial for both our work and personal well-being.

Now, creating an effective planning process may feel like tackling a daunting labyrinth, but don’t worry! It’s more like piecing together a strategic puzzle. By carefully aligning each piece — your goals, analysis, stakeholder input, the plan itself, and tracking mechanisms — you’ll create a complete picture of success. 

This article will guide you through practical techniques to optimize your daily plans, ensuring you get the most out of every hour. We’ll break down the techniques and make sure you have all the tools you need to start planning like a pro. Let’s dive in!

1. Set SMART Goals

Effective planning begins with the establishment of well-defined goals, and the SMART framework is instrumental for this. SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. This approach ensures that goals have a clear direction (Specific), can be tracked (Measurable), are realistic (Achievable), align with overarching objectives (Relevant), and have a set timeframe for achievement (Time-bound). 

By setting SMART goals, you not only bring clarity and focus to your endeavors but also increase the likelihood of success. This structured method provides a foundation, allowing for a more streamlined and purpose-driven plan that aligns with your desired outcomes.

2. Prioritize Tasks And Set Achievable Milestones

When planning, not all tasks are created equal. Prioritize tasks based on their impact towards achieving your goals. Understanding the significance of each task helps in allocating resources and time more efficiently. Plus, tackling high-priority tasks first can lead to early wins, boosting morale and motivation as you progress.

Setting achievable milestones also breaks the journey into smaller, more manageable stages, helping maintain momentum and providing regular opportunities for celebrating progress. These milestones serve as checkpoints, ensuring you remain on track and offering moments of reflection to adjust your strategies if needed.

3. Conduct A Comprehensive Situational Analysis

Next, evaluate your current situation. What are your Strengths, Weaknesses, Opportunities, and Threats (SWOT)? What resources do you have available, and what constraints are you under? Knowing this info will help you create a plan that’s realistic and feasible.

Understanding the current landscape is pivotal for effective planning. The SWOT analysis is a proven tool for gaining a holistic view of any situation, be it for an individual, a project, or an organization. Strengths and Weaknesses are internal factors, highlighting what you excel at and areas that need improvement. Conversely, Opportunities and Threats are external factors, showcasing potential avenues for growth and external challenges that might hinder progress.

By conducting a SWOT analysis, planners can make informed decisions , capitalizing on strengths and opportunities while addressing weaknesses and preparing for potential threats. This strategic approach not only helps in identifying where to allocate resources but also in foreseeing challenges, ensuring a proactive rather than a reactive approach to planning.

4. Establishing Clear Responsibilities And Delegating Tasks

For any plan to be executed efficiently, clear delineation of responsibilities is paramount. This ensures that every task has an owner and that there’s accountability in the execution process. When each team member understands their specific role and what’s expected of them, it reduces overlap and confusion, streamlining operations and improving productivity. Delegating tasks based on individual strengths and expertise ensures that each task is tackled efficiently and effectively, bringing the best out of the team and moving closer to the defined goals.

Often, as tasks multiply or become more intricate, a single individual or a small team might find it challenging to manage everything effectively. This is where hiring an assistant or another team member can be transformative. By delegating tasks to a new hire, not only does it optimize operations, but it also provides a fresh perspective and an opportunity for collaboration, enhancing the overall efficiency and innovative potential of the planning process.

5. Use Tools That Aid In Effective Planning

In today’s digital age, a plethora of tools and software are available to assist in planning and task management. From digital calendars and project management platforms like Trello and Asana, to more complex enterprise solutions like Microsoft Project or Monday.com, these tools facilitate organization, communication, and real-time tracking of progress.

Leveraging these technologies not only streamlines the planning process but also ensures consistency, enhances collaboration among team members, and provides visual representations of timelines and milestones. By incorporating these tools, planners can effectively keep a finger on the pulse of their projects, ensuring that every step aligns with the overarching objectives.

6. Regularly Review And Revise The Plan As Needed

Plans are living documents, meant to evolve as circumstances change. Regularly review your plan to track progress, identify bottlenecks, and make necessary adjustments. This keeps your plan relevant and ensures you’re always moving towards your goals.

Periodic reviews allow for the incorporation of feedback, ensuring that strategies remain effective and efficient. It also promotes agility, enabling swift responses to unforeseen challenges or new opportunities. Thus, staying adaptive and flexible in your planning approach can be the key differentiator between stagnation and continuous growth.

7. Involve Relevant Stakeholders And Seeking Input

Your plan shouldn’t exist in a silo. Instead, engage with relevant stakeholders — these could be your team members, clients, or even suppliers. Seek their input , leverage their expertise, and foster a collaborative environment.

Not only will this make your plan more robust, but it also encourages buy-in and shared responsibility. It’s like cooking with friends — the experience is more enjoyable, and the results are often better!

8. Communicate The Plan Effectively To All Stakeholders

A plan is only as good as its execution, and that requires clear communication . Ensure all stakeholders understand the plan, their role in it, and how it aligns with the broader goals. Good communication fosters buy-in, aligns efforts, and promotes a shared vision. Furthermore, open channels of communication encourage feedback, which can be crucial in refining strategies and making course corrections.

Regular check-ins and updates ensure everyone remains on the same page, mitigating any potential misunderstandings or misalignments. In essence, clear communication acts as the glue that binds the plan, the team, and the objectives together, paving the way for coordinated and successful execution.

9. Establish Mechanisms For Tracking Progress And Making Adjustments

Finally, establish mechanisms to track your progress and make adjustments as needed. Remember, a plan isn’t set in stone — it should be flexible enough to adapt to changing circumstances. Regularly review your progress, celebrate achievements, and adjust your plan if necessary. This will keep your planning process dynamic and responsive.

How Can An Executive Assistant Aid In Planning?

An Executive Assistant can play a crucial role in planning. Their specialized set of skills, coupled with a deep understanding of the executive’s needs and business objectives, makes them instrumental in driving planning efforts.

Setting Goals

An Executive Assistant can assist in setting clear and specific goals. Given their close working relationship with the executive, they can help articulate the executive’s vision into actionable objectives that drive strategic initiatives.

Conducting Research

They can conduct essential research and data analysis, providing valuable insights that inform the planning process. They can identify opportunities and threats, assess resources, and evaluate the competitive landscape.

Leading Communication

An Executive Assistant often acts as a liaison between the executive and other stakeholders. They can coordinate meetings, solicit input, and ensure effective communication throughout the planning process, fostering a collaborative environment.

Handling The Small Details

Drafting and refining the plan is another task your Executive Assistant can tackle. They can help break down goals into manageable tasks, set timelines, assign responsibilities, and establish key performance indicators (KPIs).

Tracking Progress

Lastly, an Executive Assistant can help track progress against the plan, monitor KPIs, and keep the executive informed of any issues or deviations. They can also assist in making necessary adjustments to the plan, ensuring it remains responsive to changing business conditions.

Transform Your Tomorrow With Stellar Planning Today

From the importance of clear goal-setting to the role of effective communication, we’ve dived deep into the essence of impactful planning. By prioritizing tasks, harnessing the right tools, and staying adaptive to changing circumstances, you set the stage for success in any endeavor. Remember, planning isn’t just about setting a course; it’s about anticipating challenges, celebrating milestones, and keeping everyone aligned and motivated.

Always keep an eye on the evolving landscape, adjust your sails when needed, and engage your stakeholders in the journey. With determination and the right approach, you’re not just planning — you’re sculpting your future success. So, gear up, refine that plan, and watch as your visions transform into reality.

Level Up Your Planning Game with Persona

Are you keen on elevating your planning expertise? Our Executive Assistants at Persona are perfectly positioned to guide you in mastering planning intricacies.

Delegating your planning-related tasks to our Executive Assistants enables you to channel your energies and expertise on core objectives, while we handle the nuances of planning.

Our Executive Assistants can help you with:

• Defining and setting SMART goals
• Conducting comprehensive SWOT analysis
• Prioritizing and organizing tasks efficiently
• Effective communication of plans to stakeholders
• Reviewing and revising plans in line with changes
• Using the latest tools for streamlined planning

Don’t let the intricacies of effective planning deter you from reaching your pinnacle. Allow Persona’s Executive Assistants to be the backbone of your planning endeavors. For an in-depth insight into how our Executive Assistants can bolster your planning prowess, reach out to us today .

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10 Essential Tips on How to Manage a Business Effectively

• September 21, 2023

Managing a business is no walk in the park. It’s a complex endeavor that requires a well-rounded skill set and a strategic mindset.

In this article, we’ll explore 10 essential tips that can help you manage a business more effectively. Whether you’re a seasoned entrepreneur or just starting your business journey, these insights are designed to guide you toward success. 😊

So, if you’re looking to up your management game and navigate the challenges that come with running a business, you’re in the right place. Let’s dive in and get started! 🚀

For those who are looking to dive deeper into financial management, our article on How to Budget for Training provides valuable insights into budgeting for specific business needs.

Table of Contents

1. strategic planning: the cornerstone of effective business management 😌.

When it comes to managing a business, strategic planning is the linchpin that holds everything together. It’s not just about setting goals; it’s about creating a roadmap that outlines how you’ll achieve them.

This involves analyzing your current situation, identifying opportunities and threats, and making informed decisions.

Why is Strategic Planning Important? 🤔

Strategic planning serves as the backbone of any successful business.

It helps you allocate resources efficiently, keeps everyone on the same page, and provides a sense of direction.

Without a well-thought-out strategy, you’re essentially sailing a ship without a compass.

The SWOT Analysis: Your First Step 📊

A SWOT analysis (Strengths, Weaknesses, Opportunities, Threats) is often the starting point for strategic planning.

This simple yet effective tool can provide valuable insights into your business landscape.

Setting SMART Goals 🎯

Once you’ve conducted your SWOT analysis , the next step is to set SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound).

These goals will serve as milestones on your journey to business success.

Our article on Focus on Income-Generating Activities (IGAs) can offer some insights into setting goals that align with your revenue objectives.

The Role of Data in Strategic Planning 📈

Data-driven decision-making is crucial in today’s competitive business environment. Utilizing metrics and KPIs (Key Performance Indicators) can provide a quantitative basis for your strategic choices.

2. Financial Management: The Fuel for Your Business Engine 🚀

After laying down a solid strategic plan, the next crucial aspect of managing a business is financial management. It’s the lifeblood that keeps your business running smoothly, allowing you to implement your strategies effectively.

Budgeting: More Than Just Numbers 💡

Creating a budget isn’t just about crunching numbers; it’s about aligning those numbers with your strategic goals.

A well-crafted budget serves as a financial roadmap, guiding you through the fiscal year and beyond. For those interested in diving deeper into budgeting, Investopedia’s guide on Business Budgeting is a highly recommended read.

Cash Flow: The Business Lifeline 💸

Understanding and managing cash flow is vital for the survival and growth of your business. It’s not just about how much money you’re making, but also how you’re spending it.

Effective cash flow management ensures that you have enough funds to cover operational costs and invest in growth opportunities.

Risk Assessment: Prepare for the Unexpected 🛡️

Financial risks are an inevitable part of business. Whether it’s market volatility, credit risks, or operational setbacks, being prepared can make all the difference. Our article on What is a Competency Test? touches on assessing risks and competencies within your team, which can be a part of your broader risk management strategy.

Investment: The Road to Growth 🌱

Investing back into your business is essential for growth. Whether it’s in technology, human resources, or marketing, wise investments can yield significant returns.

For a broader perspective on investment strategies, you might find Harvard Business Review’s articles on Investment particularly enlightening.

By mastering financial management, you’re not just keeping your business afloat; you’re setting it up for long-term success.

This involves a balanced approach to budgeting, cash flow management, risk assessment, and investment. So, are you ready to take control of your business finances? 😊

3. Team Leadership: The Heartbeat of Your Business 💖

In any organization, the team is its most valuable asset. Effective team leadership is crucial for achieving business objectives and creating a positive work environment.

Building a Strong Team 🤝

A strong team doesn’t just happen; it’s built through careful selection, training, and management.

From the hiring process to ongoing development, every step counts. For those looking to understand the dynamics of team building, Google’s re:Work Guide offers valuable insights.

Leadership Styles and Their Impact 🌟

Your leadership style can significantly affect team morale and productivity. Whether you’re more autocratic, democratic, or laissez-faire, understanding the pros and cons of each style can help you adapt to different situations.

Communication: The Key to Success 🗨️

Effective communication is the cornerstone of good leadership. It’s not just about conveying information but also about listening and understanding your team’s needs and concerns.

Tools like Slack or Microsoft Teams can facilitate better communication within your team.

Employee Engagement and Retention 🎯

Keeping your team engaged is not just good for morale; it’s good for business. Engaged employees are more productive, more customer-focused, and more likely to stay with the company.

For a deeper understanding of employee engagement, Gallup’s State of the American Workplace report provides comprehensive data and insights.

By focusing on team leadership, you’re investing in the long-term success of your business. After all, a well-led team is more cohesive, more productive, and ultimately, more capable of helping your business reach its goals. 😊

4. Customer Relationship Management: Your Business’s Lifeline 🤗

In today’s competitive market, customers have more choices than ever. That’s why maintaining strong relationships with your customers is not just beneficial—it’s essential for the survival and growth of your business.

The Importance of Customer Satisfaction 🌟

A satisfied customer is more likely to return and recommend your business to others.

Customer satisfaction is not just about providing a good product or service; it’s about the entire experience your customer has with your business.

Tools and Strategies for Effective CRM 🛠️

There are various tools available to help manage customer relationships effectively.

Platforms like Salesforce, HubSpot, and Zoho CRM offer a range of features that can help you keep track of customer interactions, sales, and more.

Personalization: A Step Further 🎯

In the age of data, personalization has become more achievable and more expected. Tailoring your services or products to individual customer needs can set you apart from competitors.

For those interested in leveraging personalization, Forrester’s research on CRM personalization offers valuable insights.

Feedback Loops: Listen and Adapt 🔄

Feedback is a gift. Whether it’s positive or negative, customer feedback provides actionable insights that you can use to improve.

Tools like Net Promoter Score (NPS) can help you gauge customer satisfaction and identify areas for improvement.

By prioritizing Customer Relationship Management, you’re not just increasing sales; you’re building a community of loyal customers who will advocate for your brand.

This is invaluable in today’s market, where word-of-mouth and customer reviews can make or break a business. 😊

5. Marketing and Branding: The Face of Your Business 🌟

In a world where consumers are bombarded with choices, standing out is more important than ever. Effective marketing and strong branding can be the difference between a business that thrives and one that barely survives.

The Power of a Strong Brand 💪

A strong brand is more than just a logo or a catchy slogan; it’s an identity. It’s what people think of when they hear your business name.

Building a strong brand involves consistency, quality, and emotional engagement with your audience.

Marketing Strategies for Business Growth 📈

There are countless marketing strategies to consider, from digital advertising and SEO to traditional methods like print and TV ads. The key is to find what works best for your target audience.

For those interested in digital marketing, Moz’s Beginner’s Guide to SEO is a great starting point.

Social Media: Your Digital Storefront 📱

In today’s digital age, social media is often the first point of contact between your business and potential customers.

Platforms like Facebook, Instagram, and LinkedIn offer unique ways to engage with your audience and showcase your brand.

Content Marketing: More Than Just Words 📝

Content marketing is about providing valuable information to your audience. Whether it’s through blogs, videos, or podcasts, quality content can establish you as an authority in your field and attract more customers.

By focusing on marketing and branding, you’re not only attracting new customers but also building a long-term relationship with your existing ones.

This dual focus is essential for sustainable business growth. 😊

6. Time Management: Your Most Valuable Resource ⏳

Time is the one resource you can’t get more of, which makes effective time management crucial for any business. From meeting deadlines to balancing work-life commitments, mastering time management can significantly impact your success.

Tools and Techniques for Effective Time Management ⏲️

There are numerous tools designed to help you manage your time more effectively. Apps like Asana, Trello, and Todoist can help you organize tasks, set deadlines, and even collaborate with team members. For those interested in deepening their understanding of time management, The Pomodoro Technique is a popular method worth exploring.

The Importance of Delegation 🤝

Delegating tasks is not a sign of weakness; it’s a sign of effective leadership. Knowing when and what to delegate can free up your time for tasks that require your unique skills and attention.

Prioritization: The Key to Efficiency 🗂️

Not all tasks are created equal. Learning to prioritize tasks based on their urgency and importance can make your workday more productive and less stressful.

The Eisenhower Matrix is a useful tool for this, dividing tasks into four categories: urgent and important, important but not urgent, urgent but not important, and neither.

By mastering time management, you’re setting yourself—and your business—up for success. Effective time management leads to increased productivity, better work-life balance, and ultimately, a more profitable business. 😊

7. Quality Control: The Benchmark of Your Business 📏

Quality is not just a metric; it’s a promise to your customers. Ensuring the quality of your products or services is crucial for building trust and sustaining long-term relationships with your clientele.

The Importance of Quality Standards 🌟

Setting quality standards is the first step in quality control. These standards serve as a benchmark for your products or services, ensuring that they meet the expectations of your customers.

Industry certifications like ISO 9001 can help establish these standards.

Monitoring and Testing 🧪

Regular monitoring and testing are essential for maintaining quality.

Whether it’s through customer feedback, internal audits, or third-party evaluations, consistent monitoring can help you identify and address issues before they escalate.

Continuous Improvement 🔄

Quality control is not a one-time effort; it’s a continuous process. Adopting methodologies like Six Sigma or Lean can help you streamline processes and improve quality over time.

For those interested in Lean methodology, The Lean Enterprise Institute offers valuable resources.

Customer Feedback: The Ultimate Quality Test 🗣️

Your customers are the final judges of your product or service quality. Encourage feedback and reviews to gain insights into areas that may need improvement.

Platforms like Trustpilot or Google Reviews can be useful tools for collecting customer feedback.

By prioritizing quality control, you’re not just meeting customer expectations; you’re exceeding them.

This commitment to excellence can set you apart from competitors and help you build a loyal customer base. 😊

8. Adaptability: The Key to Long-Term Success 🌱

In a rapidly changing business landscape, the ability to adapt is more important than ever.

Whether it’s technological advancements, market shifts, or global events, being adaptable can be the difference between thriving and merely surviving.

The Importance of Being Adaptable 🤔

Adaptability is not just about reacting to change; it’s about anticipating it. An adaptable business is better positioned to navigate uncertainties and seize new opportunities as they arise.

Case Studies: Businesses That Adapted Successfully 📚

Real-world examples can offer invaluable insights into the power of adaptability.

Companies like Netflix, which transitioned from DVD rentals to streaming, or Adobe, which moved from boxed software to a subscription model, are testaments to the importance of adaptability.

Tools for Adaptability 🛠️

Technological tools can play a significant role in enhancing adaptability. Cloud-based solutions, for example, offer the flexibility to scale your operations up or down as needed.

Embracing Change: A Cultural Shift 🌈

Adaptability should be ingrained in your company culture. Encourage a mindset of continuous learning and openness to change among your team members.

This can be facilitated through regular training sessions, workshops, and team-building activities.

By focusing on adaptability, you’re preparing your business for whatever challenges and opportunities lie ahead.

It’s an investment in your future, ensuring that you’re not just reacting to change but actively shaping it. 😊

You might find our article on Developing Diversity and Inclusive Training beneficial.

9. Technology Integration: Staying Ahead in the Digital Age 💻

In today’s fast-paced world, technology is not just an add-on; it’s a necessity.

Integrating technology into various aspects of your business can streamline operations, improve customer experience, and give you a competitive edge.

The Importance of Staying Updated 🔄

Falling behind on technological advancements can put your business at a disadvantage.

Staying updated with the latest tools and technologies can help you optimize processes and stay ahead of the competition.

Tools That Can Help Manage a Business Effectively 🛠️

From project management software like Asana to customer relationship platforms like Salesforce, technology can simplify complex tasks and improve efficiency.

For those who are new to project management software, Capterra offers comprehensive reviews to help you choose the right tool for your needs.

Cybersecurity: A Non-Negotiable Aspect 🔒

As you integrate more technology into your business, cybersecurity becomes increasingly important.

Protecting customer data and business information is not just ethical; it’s crucial for maintaining trust.

The Role of Automation 🤖

Automation can take over repetitive tasks , freeing up time for more strategic work.

Whether it’s automating customer service through chatbots or using AI for data analysis, automation can be a game-changer for your business.

By embracing technology, you’re not just modernizing your business; you’re future-proofing it.

The right technology can make your operations more efficient, your team more productive, and your customer interactions more engaging.

10. Sustainability and Corporate Responsibility: Building a Legacy 🌿

In today’s business landscape, success is not just measured by profit margins; it’s also about making a positive impact on society and the environment.

Incorporating sustainability and corporate responsibility into your business model can enhance your brand image and contribute to long-term success.

The Triple Bottom Line: People, Planet, Profit 🌍

The concept of the Triple Bottom Line expands the traditional accounting framework to include social and environmental factors alongside financial ones.

This holistic approach can help you make more informed and responsible business decisions.

Implementing Sustainable Practices ♻️

From reducing waste to using renewable energy sources, there are numerous ways to make your business more sustainable. For those interested in sustainability certifications, The International Organization for Standardization (ISO) offers various options .

Corporate Responsibility: Beyond Philanthropy 🤝

Corporate responsibility goes beyond charitable donations; it’s about ethical business practices, fair labor policies, and community engagement.

Companies like Patagonia and Ben & Jerry’s are excellent examples of businesses that have successfully integrated corporate responsibility into their brand.

Transparency and Accountability 📊

Being transparent about your sustainability efforts and corporate responsibility initiatives can build trust with your stakeholders.

Transparency also holds you accountable, encouraging continuous improvement in these areas.

By focusing on sustainability and corporate responsibility, you’re not just doing good; you’re also doing well.

These initiatives can attract a loyal customer base, motivate your team, and even open up new business opportunities.

The Journey to Effective Business Management 🌟

Managing a business is a multifaceted endeavor that requires a balanced approach to various aspects like strategic planning, financial management, team leadership, and more.

In this ever-changing business landscape, the keys to long-term success are adaptability, technological savvy, and a commitment to sustainability and corporate responsibility.

Remember, effective management is not a destination but a continuous journey. It’s about learning, adapting, and growing with each new challenge and opportunity that comes your way.

So here’s to your journey in mastering the art of business management—may it be fulfilling, successful, and above all, impactful.

FAQ: How to Manage a Business

What does manage a business mean.

Managing a business involves overseeing various aspects of its operations, from planning and organizing to leading and controlling. This includes tasks like setting goals, allocating resources, making decisions, and evaluating performance to ensure the business achieves its objectives.

Is it easy to manage a business?

Managing a business is a complex and challenging task that requires a diverse skill set, including leadership, financial acumen, and strategic thinking. While it may not be “easy,” it is certainly rewarding for those who are committed to continuous learning and improvement.

Books on how to manage a business

There are numerous books that offer valuable insights into business management. Some popular titles include: “Good to Great” by Jim Collins “The Lean Startup” by Eric Ries “The E-Myth Revisited” by Michael E. Gerber “How to Win Friends and Influence People” by Dale Carnegie “The Art of Strategy” by Avinash K. Dixit and Barry J. Nalebuff These books cover a range of topics, from leadership and strategy to operations and customer relations.

Skills needed to manage a business

Effective business management requires a variety of skills, such as:

Leadership: The ability to inspire and guide a team.

Strategic Thinking: The capacity to plan for the long-term.

Financial Literacy: Understanding budgets, balance sheets, and financial planning.

Communication: Both verbal and written skills are essential for clear and effective interactions.

Time Management: The ability to prioritize tasks and manage time effectively.

Adaptability: Being flexible and open to change as the business environment evolves.

Mastering these skills can significantly improve your ability to manage a business successfully.

• business growth
• business planning

Tugrul is a freelance blogger and UI/UX designer with expertise in work-from-home jobs, making money online, small business, skills improvement, technology, social media, design, and personal development. He enjoys taking photographs and creating engaging content in his free time. His goal is to provide practical tips and valuable insights to help readers succeed in their personal and professional lives.

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Small Business Trends

How to register a business name.

Business names are key to helping brands grow. Taking time to register your small business is an important step.

When you register a business name, you can enjoy the following benefits:

• Help you realize tax benefits
• Help you establish credibility and identity
• Help you get approved for business loans

Is it Necessary To Register The Business Name?

Not always. Business structure and organization are factors that determine whether or not you must register the business name.

Sole proprietorships, with the business in the owner’s name, typically don’t have to be registered. But if you form a Limited liability corporation, a limited partnership or a corporation as a business structure, you’ll have to register your business.

Registering a Business Name: A Step By Step Guide

It’s actually fairly easy to register your business, no matter what business structure you have. The process can be accomplished online, as long as you can upload any required legal documents and paperwork.

There are some “pre-registration” steps you should take. You should start a business bank account (and business credit card). You should also establish your business structure.

Once you’ve done those things, here are your next steps:

Choose Your Legal Business Name

Take your time with creating the legal name for your business. You have to choose a name that will be easily identified with your business, and also choose a legal name that hasn’t already been taken by another existing business.

Also, choose a name that hints at the service or product the business provides. For example, balloon business names could include Air Soar or Up, Away and Back Tours, while esthetician business names (skincare) could include Smoothly Yours.

How can you find out if your desired name has been taken? See Small Business Trends article How to See If a Business Name Is Taken. Once you know your name is clear, make a business name reservation (see below). Name reservations are important so that another new business doesn’t try to use the same name as you complete the filing process.

The state’s secretary most often will not accept your proposed name for the business if a similar name already exists for an existing business.

Register with State Agencies

You’ll go to your state’s office, usually called the Secretary of State, to file your business name reservation and register your business. States require registration documents for an LLC, partnership, limited partnership, limited liability partnership, corporation or nonprofit organization. The Secretary of State website in most states should have a step-by-step process with a significant portion of filing you can do using an online form.

Along with your business registration, you’ll also need to designate a registered agent for the business. The registered agent is usually not the business owner. The agent is a person who can accept legal documents and other paperwork on behalf of the owner.

If you conduct business activities in another state, state laws may require you to register your business in that state (see below).

Register with Federal Agencies

You’ll need to register a Federal Tax ID number, which is also called an Employer Identification Number or EIN. You need that number to file taxes.

If you’re a sole proprietor, you can use you social security number as your individual taxpayer identification number for filing taxes.

Register with Local and County Agencies

The requirement for this may vary depending on your business location. Even if registration is not required, you will need to find out if you need to file certain licenses or permits.

Register a DBA

DBA stands for Doing Business As. In other words, it’s an assumed name or fictitious name for a business. If you use an assumed name for your business, that will most likely have to be registered by the local and county agencies.

Register a Trademark

If you want to trademark your business name, product name, trade name or brand, you’ll need to file that with the US Patent and Trademark Office . You can use the United States Patent and Trademark Office website to find your local trademark office. You will not be able to choose a trade name that is already in use.

Register with the IRS

If your business is an S Corporation or a tax-exempt non-profit organization, you’ll need to register with the IRS.

Why The Business Structure Matters

Limited Liability Company – Requires registered agent. Must be registered with Federal and State agencies.

Corporation – Requires registered agent. Must be registered with Federal and State agencies. You’ll have to file articles of incorporation.

Sole Proprietor – Does not require Federal or State registration. However, a sole proprietorship may elect to form an LLC, to protect private assets. Most businesses choose to form an LLC, despite the extra filing requirements.

Partnership – Requires registered agent. Must be registered with Federal and State agencies. This also applies to general partnerships.

Remember that in addition to requirements with the state agency, any business entity may require additional licenses and permits at the county and local levels. Also, a fictitious name must be registered for businesses.

What Business Formation Documents are Needed?

For filing, you’ll need official papers which detail your business name and location, as well as its ownership, structure, and management structure (including principal officer and board of directors if it’s a corporation).

You’ll need the name of the registered agent, the person’s address and contact information.

If the business structure is a corporation or S Corp, you’ll need to provide the number of shares and the value of each share.

You’ll need documents regarding your business name registration.

What Happens When You Conduct Business in More Than One State?

If the physical presence of your business is in one state, and you’re conducting business activities in another state, you may need to register your business in both states to remain in good standing.

Here are the criteria that determine if you need to register your business in another state :

• Your business has a physical location in the other state
• You often meet with clients in another state
• Lots of your company’s revenue comes from another state
• Your employees perform work in that state

Check with a business attorney for advice.

The Bottom Line

Registering a business is a step-by-step process when you’re a new company. Most of the work can be accomplished online and it’s not expensive.

Register a Business Name: FAQs

Should limited liability companies also file a dba.

Yes, if they are running the company under a fictitious name.

What Does Business Entity Mean?

The entity is the type of business structure of the company (such as LLC, general partnership, etc.)

How Much Does it Cost to Register a Business Name? Some examples for LLCs:

California $70; Maine $175, Delaware $75; Maryland $100; Ohio $99.

What Business Structure do You Need to Get a Trademark?

Any business structure can register a trademark with the USPTO.

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• Project planning |
• What is strategy implementation? 6 key ...

What is strategy implementation? 6 key steps to success

Strategy implementation is the process of turning your strategic plan into action. Whether you’re executing a new marketing plan to increase sales or introducing a new work management software to increase efficiency—your plan is only as valuable as the implementation. In this article, we cover the pitfalls of strategy implementation and how you can avoid them. Plus check out different frameworks associated with this process to set you up for success.

Having a strategic plan is great, but unless you have the bandwidth, resources, and support to implement your plan it’s not going to drive actual change in your organization.

We’re going to cover the key steps of strategy implementation, including potential pitfalls and how you can avoid them, and introduce you to a few frameworks to help you successfully implement any strategy you’re currently working on.

The 6 key strategy implementation steps

Before you can implement your strategy you need to create a strategic plan .

Your strategic or implementation plan outlines the steps your team or organization needs to take in order to achieve a goal or objective. Your implementation plan is the roadmap to a successful strategy execution and should include the following steps:

Define your goals

Conduct proper research

Map out any risks

Schedule all milestones

Assign tasks

Allocate helpful resources

Once your strategic plan is set, it’s time to get it on the road! There are six steps to follow on your way to a successful implementation.

Step 1: Set and communicate clear, strategic goals

The first step is where your strategic plan and your strategy implementation overlap.  

To implement a new strategy, you first must identify clear and attainable goals. As with all things, communication is key. Your goals should include your vision and mission statements , long-term goals , and KPIs . 

The clearer the picture, the easier the rest of your strategy implementation will be for your team and organization—simply because everyone will be working towards the same goals. 

Step 2: Engage your team

To implement your strategy both effectively and efficiently , you need to create focus and drive accountability. There are a few ways in which you can keep your team engaged throughout the implementation process:

Determine roles and responsibilities early on. Use a RACI matrix to clarify your teammate’s roles and ensure that there are no responsibility gaps.

Delegate work effectively . While it can be tempting to have your eyes on everything, micromanagement will only hold you back. Once you’ve defined everyone’s roles and responsibilities, trust that your team will execute their tasks according to the implementation plan.

Communicate with your team and ensure that everyone knows how their individual work contributes to the project. This will keep everyone motivated and on track.

Step 3: Execute the strategic plan

Allocate necessary resources —like funding for strategic or operational budgets—so your team can put the strategic plan into action. If you don’t have the right resources you won’t be able to achieve your strategic plan, so this should be a top priority. Here’s how you can ensure that your team has the resources they need:

Start with the end in mind to effectively align your project’s objectives, key deliverables, milestones, and timeline.

Identify available resources like your team’s capacity, your available budget, required tools or skills, and any other unconventional resources

Define a clear project scope so you know exactly what your project needs when.

Share your project plan with everyone involved in the implementation process using a work management tool.

The better built out your strategic plan is, the easier it will be to implement it.

Step 4: Stay agile

You’ll inevitably run into issues as you begin implementing your strategy. When this happens, shift your goals or your approach to work around them. 

Create a schedule so you can frequently update the status of your goals or implementation strategy changes. Depending on the strategy you’re implementing, you can create weekly, monthly, or quarterly project status reports . Share these updates with your external stakeholders, as well as your internal team, to keep everyone in the loop.

Having a central source of truth where you can update your team in real time will help you streamline this process. Asana’s work management software allows your team to coordinate projects, tasks, and processes in real time but also gives you the freedom to get work done asynchronously —providing everyone with the visibility they need to understand who’s doing what.

Step 5: Get closure

Once you implement the strategy, connect with everyone involved to confirm that their work feels complete. Implementing a strategy isn’t like a puzzle that’s finished when the last piece is set. It’s like planting a garden that continues to grow and change even when you think you’re done with your work.

Getting closure from your team will be the second to last milestone of your strategy implementation and is a crucial step toward completion.

Step 6: Reflect

Conduct a post-mortem or retrospective to reflect on the implemented strategy, as well as evaluate the success of the implementation process and the strategy itself. This step is a chance to uncover lessons learned for upcoming projects and strategies which will allow you to avoid potential pitfalls and embrace new opportunities in the future.

What you need to implement a strategy

No matter how well thought out your strategy is, you’ll need these five key components to successfully implement any strategy.

You’ll need a team that not only understands the strategy you want to implement but also has the skills and bandwidth to support you. Appoint, hire, and train the right people for the job and ensure that the competencies needed to succeed are present in your project team.

Asana’s Customer Success team was invaluable to our implementation process. They took the time to understand our business and showed us how to create practical workflows and processes to get the most out of Asana. We couldn’t have done it without them.”

Effective resource allocation is one of the most important parts in strategy implementation. Resources can be both financial (e.g., cost of labor) and non-financial (e.g., time to implement strategy).

Organization

Everyone in your organization needs to know what their responsibilities are so they can be accountable for their part in implementing the strategy. This also means that the chain of command has to be defined and communicated so everyone knows who to communicate with during the implementation process.

The tools, capabilities, and systems you’ve put in place are another key component. You have to know what the functions of each of these systems are and how they will support your strategic management process during and after the implementation. 

The final key component is the organizational culture within your company. Rolling out new strategies can be confusing and stressful for teams. Ensuring that everyone knows what they need to know and feels valued and included is crucial for a successful and effective implementation.

McKinsey’s 7S framework

McKinsey & Company is a world-renowned management consulting firm that, among other things, created a framework of seven factors needed to implement a strategy successfully.

The factors can be split into hard elements (strategy, structure, and systems) and soft elements (shared values, skills, style, and staff). While the hard elements are easy to identify and influence directly, the soft elements are less tangible and typically influenced by the company culture versus a manager or other direct contact.

Let’s take a quick look at the McKinsey 7S Model, beginning with the hard elements:

Strategy: Your organization’s plan to establish or maintain a competitive advantage over others in the field

Structure: Your company’s organizational structure

Systems: The day-to-day procedures and activities performed by your teams

These are the soft elements of the framework:

Style: The leadership style in your organization

Staff: Your team and their general capabilities

Skills: Your team’s competencies and skills

Shared values: Your organization's core values

You can apply this framework to your strategy implementation process by looking at your organization’s shared values first and ensuring that they align with your hard elements. Next, identify how well your hard elements support one another and where changes could improve their interaction. After you’ve established that, do the same for your soft elements.

This analysis helps you identify elements that are working well and elements that need improvement. Applying this framework to your strategic plan and strategy implementation process helps you get a better feel for how well your organization can implement change.

The three Cs of implementing strategy

Business consultant and author Scott Edinger coined the three Cs of implementing strategy —clarity, communication, and cascade. They’re the three steps you should keep in mind if you want to implement your strategy successfully.

Let’s take a closer look at what they represent.

Clarify your strategy. Ideally, strategy was well received in the boardroom and your stakeholders and executives are on board. However, if it’s not clearly defined, you may lose your mid-level and frontline team members along the way. Your team can only implement a strategy they understand, so be clear with what your goals and strategic objectives are.

Communicate your strategy. A poster, announcement, or newsletter won’t be enough to communicate a new strategy to your organization. Diversify your communication strategy to ensure that teams know what’s going on and create opportunities to ask questions so everyone feels like they’re part of the process.

Cascade your strategy. A well implemented strategy cascades through your entire organization. Involve your organization’s managers and ensure that they understand the strategy so they can forward relevant information, tactics, and processes to their teams. While you may have informed your organization during the communication stage, this step is crucial in aligning every last teammate with your new strategy.

Next, let’s have a look at some of the challenges you’ll encounter during strategy implementation.

Strategy implementation pitfalls and solutions

A big undertaking like the implementation of a new strategy comes with its fair share of obstacles. Below are four of the most common pitfalls you’ll encounter when implementing a strategy plus a few tips on how you can create solutions for your team. 

1.  Overwhelming or meaningless strategic plan

Problem: If the strategic implementation lacks meaning and potential or if there is an overwhelming number of puzzle pieces to consider, it can really put a wrench in your implementation. 

Solution: Use SMART goals to ensure that your strategic plan is specific, measurable, achievable, realistic, and time-bound. This framework will ensure that your strategic plan is both meaningful and possible to implement.

2. No implementation in sight

Problem: It’s great to have a strategic plan but without the resources and support from upper management, the implementation may never happen.

Solution: Your strategic plan should include clear goals, consequences, and requirements to inspire the actual implementation of your strategy. The clearer the document, the easier it will be to get the resources needed to turn it into action.

3. Lack of communication and ownership

Problem: A team that’s not 100% sure what the strategy actually is and doesn’t feel confident about their respective tasks can make your implementation process come to a halt before it’s even begun.

Solution: Clearly define each team member's responsibilities and delegate any relevant work. This gives team members a sense of ownership over the outcome of the strategy implementation. Ensure that your teammates have the authority and resources to execute their tasks.

4. Lack of accountability and empowerment

Problem: Low visibility and a lack of accountability can make your team feel helpless. 

Solution: Schedule regular strategy review and team meetings to discuss each team member’s progress, issues that are arising, and strategy shifts that can contribute to the success of your implementation. Track the progress to give your team a sense of accomplishment whenever they check off another goal they’ve met.

As long as you’re aware of the challenges, you can tackle them head on and avoid unnecessary setbacks.

Plan, implement, celebrate

Change isn’t easy but in order for your team to grow, it’s crucial that your organization does too.

Whether you’re in the midst of developing your strategic plan with a small project team or you’re already communicating your strategy to the entire organization, reliable project management software is critical in ensuring that everyone has access to the resources they need.

And once the strategy is successfully implemented, don’t forget to give yourself and your team a pat on the back. After all, celebrating milestones like these is important too!

Sources: Harvard Business School | MindTools | OnStrategy

Related resources

Unmanaged business goals don’t work. Here’s what does.

How Asana uses work management to drive product development

How Asana uses work management to streamline project intake processes

How Asana uses work management for smoother creative production

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What It Takes to Give a Great Presentation

• Carmine Gallo

Five tips to set yourself apart.

Never underestimate the power of great communication. It can help you land the job of your dreams, attract investors to back your idea, or elevate your stature within your organization. But while there are plenty of good speakers in the world, you can set yourself apart out by being the person who can deliver something great over and over. Here are a few tips for business professionals who want to move from being good speakers to great ones: be concise (the fewer words, the better); never use bullet points (photos and images paired together are more memorable); don’t underestimate the power of your voice (raise and lower it for emphasis); give your audience something extra (unexpected moments will grab their attention); rehearse (the best speakers are the best because they practice — a lot).

I was sitting across the table from a Silicon Valley CEO who had pioneered a technology that touches many of our lives — the flash memory that stores data on smartphones, digital cameras, and computers. He was a frequent guest on CNBC and had been delivering business presentations for at least 20 years before we met. And yet, the CEO wanted to sharpen his public speaking skills.

• Carmine Gallo is a Harvard University instructor, keynote speaker, and author of 10 books translated into 40 languages. Gallo is the author of The Bezos Blueprint: Communication Secrets of the World’s Greatest Salesman  (St. Martin’s Press).

Partner Center

Next-gen B2B sales: How three game changers grabbed the opportunity

Driven by digitalized operating models, B2B sales have seen sweeping changes over the recent period amid rising customer demand for more seamless and transparent services. 1 “ The multiplier effect: How B2B winners grow ,” McKinsey, April 13, 2023. However, many industrial companies are failing to keep pace with their more commercially focused peers and, as a result, are becoming less competitive in terms of performance and customer services.

The most successful B2B players employ five key tactics to sharpen their sales capabilities: omnichannel sales teams; advanced sales technology and automation; data analytics and hyperpersonalization; tailored strategies on third-party marketplaces; and e-commerce excellence across the full marketing and sales funnel. 2 “ The multiplier effect: How B2B winners grow ,” McKinsey, April 13, 2023.

Companies using all of these tactics are twice as likely to see more than 10 percent market share growth than companies focusing on just one. 3 “ The multiplier effect: How B2B winners grow ,” McKinsey, April 13, 2023. However, implementation is not as simple, requiring a strategic vision, a full commitment, and the right capabilities to drive change throughout the organization. Various leading European industrial companies—part of McKinsey’s Industrial Gamechangers on Go-to-Market disruption in Europe—have achieved success by implementing the first three of these five sales tactics.

Omnichannel sales teams

The clearest rationale for accelerating the transition to omnichannel go-to-market is that industry players demand it. In 2017, only about 20 percent of industrial companies said they preferred digital interactions and purchases. 4 Global B2B Pulse Survey, McKinsey, April 30, 2023. Currently, that proportion is around 67 percent. In 2016, B2B companies had an average of five distinct channels; by 2021, that figure had risen to ten (Exhibit 1).

Excelling in omnichannel means enabling customers to move easily between channels without losing context or needing to repeat information. Companies that achieve these service levels report increased customer satisfaction and loyalty, faster growth rates, lower costs, and easier tracking and analysis of customer data. Across most of these metrics, the contrast with analogue approaches is striking. For example, B2B companies that successfully embed omnichannel show EBIT growth of 13.5 percent, compared to the 1.8 percent achieved by less digitally enabled peers. Next to purely digital channels, inside sales and hybrid sales are the most important channels to deliver an omnichannel experience.

Differentiating inside versus hybrid sales

Best-in-class B2B sellers have achieved up to 20 percent revenue gains by redefining go-to-market through inside and hybrid sales. The inside sales model cannot be defined as customer service, nor is it a call center or a sales support role—rather, it is a customer facing, quota bearing, remote sales function. It relies on qualified account managers and leverages data analytics and digital solutions to optimize sales strategy and outreach through a range of channels (Exhibit 2).

The adoption of inside sales is often an advantageous move, especially in terms of productivity. In fact, inside sales reps can typically cover four times the prospects at 50 percent of the cost of a traditional field rep, allowing the team to serve many customers without sacrificing quality of service. 5 McKinsey analysis. Top performing B2B companies are 50 percent more likely to leverage inside sales.

Up to 80 percent of a company’s accounts—often smaller and medium-sized customers, accounting for about half of revenues—can be covered by inside sales teams. 6 Industry expert interviews; McKinsey analysis. The remaining 20 percent often require in-person interactions, triggering the need for hybrid sales. This pertains to highly attractive leads as well.

Hybrid sales is an innovative model combining inside sales with traditional in-person interactions. Some 85 percent of companies expect hybrid sales will be the most common job role within three years. 7 Global B2B Pulse Survey, McKinsey, December 2022. Hybrid is often optimal for bigger accounts, as it is flexible in utilizing a combination of channels, serving customers where they prefer to buy. It is scalable, thanks to the use of remote and online sales, and it is effective because of the multiplier effect of numerous potential interactions. Of companies that grew more than 10 percent in 2022, 57 percent had adopted a hybrid sales model. 8 Global B2B Pulse, April 2023.

How an industrial automation solution player implemented game-changing inside sales

In 2019, amid soaring digital demand, a global leader in industrial digital and automation solutions saw an opportunity to deliver a cutting-edge approach to sales engagement.

As a starting point, the company took time to clearly define the focus and role of the inside sales team, based on product range, customer needs, and touchpoints. For simple products, where limited customer interaction was required, inside sales was the preferred go-to-market model. For more complex products that still did not require many physical touchpoints, the company paired inside sales teams with technical sales people, and the inside sales group supported fields reps. Where product complexity was high and customers preferred many touch points, the inside sales team adopted an orchestration role, bringing technical functions and field sales together (Exhibit 3).

The company laid the foundations in four key areas. First, it took time to sketch out the model, as well as to set targets and ensure the team was on board. As in any change program, there was some early resistance. The antidote was to hire external talent to help shape the program and highlight the benefits. To foster buy-in, the company also spent time creating visualizations. Once the team was up and running, early signs of success created a snowball effect, fostering enthusiasm among both inside sales teams and field reps.

Second, the company adopted a mantra: inside sales should not—and could not—be cost saving from day one. Instead, a significant part of the budget was allocated to build a tech stack and implement the tools to manage client relationships. One of the company’s leaders said, “As inside sales is all about using tech to obtain better outcomes, this was a vital step.”

The third foundational element was talent. The company realized that inside sales is not easy and is not for everyone—so finding the right people was imperative. As a result, it put in place a career development plan and recognized that many inside sales reps would see the job as a stepping stone in their careers. Demonstrating this understanding provided a great source of motivation for employees.

Finally, finding the right mix of incentives was key. The company chose a system based on compensation and KPI leading and lagging indicators. Individual incentives were a function of whether individuals were more involved with closing deals or supporting others, so a mix of KPIs was employed. The result was a more motivated salesforce and productive cooperation across the organization.

Advanced sales technology and automation

Automation is a key area of advanced sales technology, as it is critical to optimizing non-value adding activities that currently account for about two-thirds of sales teams’ time. More than 30 percent of sales tasks and processes are estimated to be partially automatable, from sales planning through lead management, quotation, order management, and post-sales activities. Indeed, automation leaders not only boost revenues and reduce cost to serve—both by as much as 20 percent—but also foster customer and employee satisfaction. (Exhibit 4). Not surprisingly, nine out of ten industrial companies have embarked on go-to-market automation journeys. Still, only a third say the effort has achieved the anticipated impact. 9 McKinsey analysis.

Leading companies have shown that effective automation focuses on four areas:

• Lead management: Advanced analytics helps teams prioritize leads, while AI-powered chatbots contact prospective customers via text or email and schedule follow-up calls at promising times—for example, at the beginning or end of the working day.
• Contract drafting: AI tools automate responses to request for proposal (RFP) inquiries, based on a predefined content set.
• Invoice generation: Companies use robotic process automation to process and generate invoices, as well as update databases.
• Sales commission planning: Machine learning algorithms provide structural support, for example, to optimize sales commission forecasting, leading up to a 50 percent decline in time spent on compensation planning.

How GEA seized the automation opportunity

GEA is one of the world’s most advanced suppliers of processing machinery for food, beverages, and pharmaceuticals. To provide customers with tailored quotes and services, the company launched a dedicated configure, price, quote (CPQ) system. The aim of the system was to enable automated quote creation that would free up frontline sales teams to operate independently from their back office colleagues. This, in turn, would boost customer interaction and take customer care to the next level.

The work began with a bottom-up review of the company’s configuration protocols, ensuring there was sufficient standardization for the new system to operate effectively. GEA also needed to ensure price consistency—especially important during the recent supply chain volatility. For quotations, the right template with the correct conditions and legal terms needed to be created, a change that eventually allowed the company to cut its quotation times by about 50 percent, as well as boost cross-selling activities.

The company combined the tools with a guided selling approach, in which sales teams focused on the customers’ goals. The teams then leveraged the tools to find the most appropriate product and pricing, leading to a quote that could be enhanced with add-ons, such as service agreements or digital offerings. Once the quote was sent and agreed upon, the data automatically would be transferred from customer relationship management to enterprise resource planning to create the order. In this way, duplication was completely eliminated. The company found that the sales teams welcomed the new approach, as it reduced the time to quote (Exhibit 5).

Data analytics and hyperpersonalization

Data are vital enablers of any go-to-market transformation, informing KPIs and decision making across operations and the customer journey. Key application areas include:

• lead acquisition, including identification and prioritization
• share of wallet development, including upselling and cross-selling, assortment optimization, and microsegmentation
• pricing optimization, including market driven and tailored pricing, deal scoring, and contract optimization
• churn prediction and prevention
• sales effectiveness, so that sales rep time allocations (both in-person and virtual) are optimized, while training time is reduced

How Hilti uses machine data to drive sales

Hilti is a globally leading provider of power tools, services, and software to the construction industry. The company wanted to understand its customers better and forge closer relationships with them. Its Nuron battery platform, which harvests usage data from tools to transform the customer experience and create customer-specific insights, provided the solution.

One in three of Hilti’s frontline staff is in daily contact with the company’s customers, offering advice and support to ensure the best and most efficient use of equipment. The company broke new ground with its intelligent battery charging platform. As tool batteries are recharged, they transfer data to the platform and then to the Hilti cloud, where the data are analyzed to produce actionable insights on usage, pricing, add-ons, consumables, and maintenance. The system will be able to analyze at least 58 million data points every day.

Armed with this type of data, Hilti provides customers with advanced services, offering unique insights so that companies can optimize their tool parks, ensuring that the best tools are available and redundant tools are returned. In the meantime, sales teams use the same information to create deep insights—for example, suggesting that companies rent rather than buy tools, change the composition of tool parks, or upgrade.

To achieve its analytics-based approach, Hilti went on a multiyear journey, moving from unstructured analysis to a fully digitized approach. Still, one of the biggest learnings from its experience was that analytics tools are most effective when backed by human interactions on job sites. The last mile, comprising customer behavior, cannot be second guessed (Exhibit 6).

In the background, the company worked hard to put the right foundations in place. That meant cleaning its data (for example, at the start there were 370 different ways of measuring “run time”) and ensuring that measures were standardized. It developed the ability to understand which use cases were most important to customers, realizing that it was better to focus on a few impactful ones and thus create a convincing offering that was simple to use and effective.

A key element of the rollout was to ensure that employees received sufficient training— which often meant weeks of engagement, rather than just a few hours. The work paid off, with account managers now routinely supported by insights that enrich their interactions with customers. Again, optimization was key, ensuring the information they had at their fingertips was truly useful.

Levers for a successful transformation

The three company examples highlighted here illustrate how embracing omnichannel, sales technology, and data analytics create market leading B2B sales operations. However, the success of any initiative will be contingent on managing change. Our experience in working with leading industrial companies shows that the most successful digital sales and analytics transformations are built on three elements:

• Strategy: As a first step, companies develop strategies starting from deep customer insights. With these, they can better understand their customers’ problems and identify what customers truly value. Advanced analytics can support the process, informing insights around factors such as propensity to buy and churn. These can enrich the company’s understanding of how it wants its go-to-market model to evolve.
• Tailored solutions: Customers appreciate offerings tailored to their needs. 10 “ The multiplier effect: How B2B winners grow ,” McKinsey, April 13, 2023. This starts with offerings and services, extends to pricing structures and schemes, and ways of serving and servicing. For example, dynamic pricing engines that model willingness to pay (by segment, type of deal, and route to market) may better meet the exact customer demand, while serving a customer completely remotely might better suit their interaction needs, and not contacting them too frequently might prevent churn more than frequent outreaches. Analytics on data gained across all channels serves to uncover these needs and become hyperpersonalized.
• Single source of truth: Best-in-class data and analytics capabilities leverage a variety of internal and external data types and sources (transaction data, customer data, product data, and external data) and technical approaches. To ensure a consistent output, companies can establish a central data repository as a “single source of truth.” This can facilitate easy access to multiple users and systems, thereby boosting efficiency and collaboration. A central repository also supports easier backup, as well as data management and maintenance. The chances of data errors are reduced and security is tightened.

Many companies think they need perfect data to get started. However, to make productive progress, a use case based approach is needed. That means selecting the most promising use cases and then scaling data across those cases through speedy testing.

And with talent, leading companies start with small but highly skilled analytics teams, rather than amassing talent too early—this can allow them to create an agile culture of continual improvement and cost efficiency.

As shown by the three companies discussed in this article, most successful B2B players employ various strategies to sharpen their sales capabilities, including omnichannel sales teams; advanced sales technology and automation; and data analytics and hyperpersonalization. A strategic vision, a full commitment, and the right capabilities can help B2B companies deploy these strategies successfully.

Paolo Cencioni is a consultant in McKinsey’s Brussels office, where Jacopo Gibertini is also a consultant; David Sprengel is a partner in the Munich office; and Martina Yanni is an associate partner in the Frankfurt office.

The authors wish to thank Christopher Beisecker, Kate Piwonski, Alexander Schult, Lucas Willcke, and the B2B Pulse team for their contributions to this article.

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Microsoft 365 Life Hacks > Organization > How to lead a focus group

How to lead a focus group

Leading a focus group is a rare opportunity that goes beyond merely listening and taking notes: it requires a strategic approach to gather meaningful insights, foster collaboration, and make informed decisions. Learn how to facilitate meaningful discussions and fuel growth and key areas of improvement, while honoring the time you have with your customers.

What is a focus group and why are they effective?

A focus group is a valuable research technique where participants from diverse backgrounds are brought together to discuss and provide feedback on a product or service that you offer. Not only is it designed to harness the opinions of your existing customers, but it can also provide voices from new demographics that you’re looking to explore.

Focus groups are a direct glimpse into the spending habits and brand awareness of your audience. Along with surveys and demographic data, focus groups are a valuable form of market research that can help you get up close to the minds and voices of your target customers. You might even gain unexpected insights or honesty that can help you tailor and improve your product or service!

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Key points to consider when planning a focus group

To successfully get the most insight from a focus group, effective leadership is crucial to ensure that your audience stays focused, comfortable, and enthusiastic in order to produce actionable results. Here are a few ways to achieve those goals:

Define the parameters and goals

Establish what information you want to get out of this focus group. Are you looking to appeal to a new demographic, gauge feelings on a brand redesign, or expand into a new market or service? What specific insights are you looking to gather? Establish a clear understanding of what you hope to achieve from the very start.

Recruit a wide pool of candidates

Your existing customers are a good foundation to ask for suggestions or improvements. But potential customers are key to growing your business through focus group insights. Current customers have valuable feedback from their previous experiences, while potential customers can offer details about their needs and expectations. Even customers from rival brands can explain why they prefer them over yours.

It’s also vital to aim for diversity in age, gender, background, and occupation in order to gain a wide range of perspectives, including ones you may have not previously considered. This can lead to more comprehensive insights that can lead to a way of growing your business to be more inclusive.

Set the tone with a comfortable environment

Your focus group participants will feel more relaxed and willing to express themselves in a comfortable, relaxed atmosphere. Provide refreshments and coffee, or catered food if it’s been advertised. Use icebreakers to help participants feel at ease, with the idea that you’re all in this together. Don’t schedule your focus group to last too long, as participants can grow tired easily and turn towards negative opinions.

Lastly, be sure to deliver on anything that you’ve offered to attract your focus groups, whether they’re gift certificates, cash, or coupons—and if these incentives aren’t physically present, be sure to make it clear when your participants can expect to receive them.

Guide the focus group and stay on track

As the moderator of your focus group, it’s your responsibility to steer the conversation back to meeting the goals that you established from the beginning. While it’s important to consider different perspectives that might naturally occur and branch from topics of conversation, staying off-track can waste everyone’s time and create distractions from your goals.

Foster engagement and productive conversation: the key to any group setting is to ensure that everyone has an equal voice. Be sure to listen thoroughly, direct the group to avoid talking over each other (by calling on participants), and ask questions when there are lulls in conversation. It’s vital to take care of any conflict that might arise between your participants without erasing or minimizing those opinions. Avoid all-or-nothing thinking that might value one’s opinion as fact and therefore lead to these conflicts.

Take notes and identify key insights

During the focus group, pay attention to direct or constructive criticism, and take organized notes to review them later. They might not be aligned with the overall goals of your focus group, but they’re a valuable source of information from the moment that can unveil something later on. Use video conferencing to record these sessions in case you miss any input.

After the focus group, analyze the collected data in order to identify recurring themes, patterns, and key insights. You’ll likely be asked to generate a report from your findings, which—depending on how extensive the changes to your product and service entail—might take the form of a business case for a major redesign or a project scope document for changes that are already underway. This is an effective way to close the feedback loop with both your participants and your stakeholders.

Whether you’re a business professional, researcher, or team leader, taking the lead of a focus group is a valuable asset to grow your work. Be sure to check out ways to run any work function smoothly and keep things organized .

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Six keys for succeeding in your succession planning

Whether you are keeping your business in the family or selling it on, these strategies can help

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By Lyndell Grey and Wendy Penman

Six keys for succeeding in your succession planning Back to video

You’ve worked hard to build your business to where it is today, but having a solid plan for after the working years is equally as important for your prosperity.

The purpose of this type of planning is to create a clear exit path that is simple, yet effective at meeting your personal retirement plans and business goals. Defining your vision for the future and developing your succession goals are strategic ways to ensure your succession plans are achieved.

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No two families, or businesses, are the same. An exit plan must address a family’s unique situation. Transferring a business to family members or business partners is one common transition strategy. Preparing to sell the business to a third party is another option.

In either case, advance planning can help preserve family and partnership harmony during what is often an emotional and conflict-triggering process. For business succession to be successful, it needs to balance the needs and goals of all involved.

The framework of the succession plan includes several key assessments. Ideally, the following six assessments would be conducted in advance of your intended retirement:

Aptitude and desire

Assess these qualities within your children or key people who may take over the business. Parents/owners often have difficulty with this process. Independent firms with business facilitators can help with the analysis by eliminating the sensitivity and emotions that go along with it.

Future viability

Having a solid knowledge of the industry, future competition and opportunities is crucial. This identifies the businesses strengths and weaknesses and gives the owner a better understanding of the risks, challenges and merits of keeping or selling the company.

Business valuation

The company’s value needs to be established prior to exit to shed light on the financial viability of your retirement and how much risk can be taken to achieve retirement goals.

Saleability

Have an awareness of factors out of your control that may affect a sale. This assessment will help determine if retaining ownership or selling the business is prudent.

Tax planning

This is often a key focus of the seller, but should not be the sole focus. Succession planning must be done in conjunction with a view of the overall financial picture.

Lifestyle planning

Evaluate what you want your lifestyle to look like after the sale of your business. How will you source income? How will your lifestyle change when you are no longer involved with the business? How will these factors impact your family and loved ones?

• For greying entrepreneurs, '50 Hurdles' is a lifeline

It is never too early to start the process and develop the framework for your succession planning. Whether you’re thinking of keeping your business in the family or exploring third-party options, the most important thing to have on your side is a well-thought-out strategy.

Lyndell Grey and Wendy Penman are investment advisers with RBC Dominion Securities.

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China Vanke shares hit record low after disappointing earnings, payout cut

The Hong Kong-listed shares of state-backed property developer China Vanke slid as much as 12% to a record low on Tuesday after it reported a 50.6% drop in 2023 core profit and no dividend payout late last week.

Time, money, lost business are part of hefty price tag to rebuild critical Baltimore bridge

The Francis Scott Key Bridge - and more importantly its capability to support traffic of 33,000 vehicles a day - could take years to rebuild after a cargo ship slammed into it and sent the 1.6 mile roadway tumbling into the Patapsco River .

While state officials have not released timelines on bridge repairs, experts say it could take several months or even up to four years until the bridge can make a comeback.

When the bridge opened in 1977, it cost $60.3 million , which is equivalent to $316 million today. The bridge took five years to complete, but experts say reopening it could take less time depending on several factors, including the condition of the bridge's foundational pieces underwater, design plans, and funding. President Joe Biden has said he expects the federal government to cover all rebuilding costs.

The Army Corps of Engineers has activated its emergency operations center following the collapse, authorizing more than 1,100 personnel to support recovery efforts and clear the busy shipping channel of debris, the Army announced Tuesday. The Corps, supporting local, state and federal agencies, is providing an underwater drone, structural engineers, urban search and rescue specialists, and the Reynolds, a vessel that collects debris that could pose hazardous to navigation.

In the meantime, experts warn the downed bridge could have major implications for East Coast shipping as companies scramble to find other ports and residents are diverted to detours. About 12.4 million vehicles crossed the bridge in 2023.

Assessing the damage

Illinois Institute of Technology engineering professor Gongkang Fu said the first step to rebuilding will be to assess the foundational pieces of the bridge underwater. 

“The pieces we don't see...are more expensive than the pieces we see, normally,” Fu said.

Building the underwater part can account for as much as half of the construction time, Fu said, so the condition of those pieces will greatly determine how long rebuilding will take. 

How fast funds come in will also determine when the bridge can reopen, Fu said, noting that expediting construction raises costs.

The target bridge lifespan in current national guidelines is 75 years, Fu said.

Hota GangaRao, the director of the Constructed Facilities Center at West Virginia University’s Department of Civil and Environmental Engineering, said several bridge piers could be damaged by the collapse. But engineers would need to assess the underwater structure to see the extent.

Based on the size of the bridge, GangaRao estimated rebuilding the structure will cost at least $350 million, and take two to four years to complete.

Sameh Badie, engineering professor at George Washington University, said the cost of rebuilding the bridge will also depend on the new design. More technologies are available now than when the bridge was originally built nearly five decades ago. Engineers may also take Tuesday’s collision into consideration when deciding on the new structure as more information is released.

David Turner, spokesperson for Maryland Gov. Wes Moore, told USA TODAY timelines and cost estimates on bridge repairs were not yet available but the process will be “long and expensive.”

Detours, other ports take Baltimore load

Moody’s Analytics senior economist Adam Kamins said the bridge collapse could have a significant impact on the Maryland economy, along with broader national and potentially global implications. Kamins noted the Port of Baltimore suspended some operations after the collapse, and an extended closure could strain car and truck prices as it is the nation’s busiest port for cars and light trucks in the nation.

Mitch Merriam, a longtime U.S. Customs and Border Protection leader, said some other ports are already accepting cargoes destined for Baltimore. Merriam, the former area port director at Los Angeles International Airport and now vice president of borders and maritime security at Maryland-based K2 Security Screening Group, said he's seen estimates that it may take three months to clear the bridge wreckage from the channel and reopen it to shipping.

"My guess is that initially you're going to see anything that was supposed to go to Baltimore will divert to Philadelphia or Norfolk, depending on the size of the vessel," he said. "Initially you're going to see ports helping one another out, taking in cargo destined for Baltimore. But they are going to have to look for longer-term solutions."

GangaRao said building a temporary bridge over the existing piers would be unlikely, as several of them may have suffered damage under the weight of the collapse.

The Interstate 35W bridge in Minneapolis, an eight-lane bridge across the Mississippi River, collapsed on Aug. 1, 2007. Congress approved $250 million to rebuild it and President George W. Bush signed it into law within a week.

The bridge reopened Sept. 18, 2008. But the Minneapolis bridge was about one-third of a mile long, much shorter than the 1.6-mile bridge in Baltimore. And experts said the Minneapolis bridge was a significantly different type of bridge and collapse.

“This is a unique circumstance. I do not know of a bridge that has been constructed to withstand a direct impact from a vessel of this size,” Transportation Secretary Pete Buttigieg said. “Let me emphasize that was a very different circumstance with very different causes.”

Contributing: Bart Jansen, Trevor Hughes and Tom Vanden Brook, USA TODAY

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How the businessman who blew up MoviePass tried to create a 'TikTok killer' and cost investors millions

It was a little less than a year since MoviePass had filed for bankruptcy , and Ted Farnsworth was back.

The bombastic CEO had acquired MoviePass , helped turn its parent company into a meme stock, and presided over its collapse. Now he was on Fox Business touting his latest venture .

He and his cofounders were "really coming together in disrupting Hollywood again from the standpoint of media and content," he told the Fox Business anchor Maria Bartiromo in a January 2021 TV interview.

The company he'd founded, Zash Global Media and Entertainment, had agreed on a deal to merge with a little-known entity called Vinco Ventures, putting Farnsworth back toward the top of a publicly traded company.

A press release announcing the tie-up described the cofounders as "three of the most successful and disruptive leaders in the entertainment industry." The release included buzzwords such as livestreaming and user-generated content. The company would build a "virtual Hollywood," the statement said.

Vinco's stock spiked 196%.

Behind the scenes, the hedge fund Hudson Bay Capital, a key financer of MoviePass' parent company, had quietly made its first investment in Vinco.

The Ted Farnsworth playbook appeared to be set in motion once again.

Takeovers and implosions

Over the past 20 years, Farnsworth has been involved with over 20 different businesses and taken control of several publicly traded companies , the most recent of which was Vinco. Each public company saw a massive stock-price increase before crashing.

To understand Farnsworth's tactics, Business Insider spent months interviewing 11 insiders close to Vinco and Farnsworth and reviewing hundreds of pages of internal documents, public company filings, and lawsuits. Most of the insiders asked to remain anonymous for fear of professional repercussions, though BI has confirmed their identities and employment.

The insiders and court records described a strategy in which Farnsworth would get involved with a publicly traded company, help raise funding from his finance connections at favorable terms for them, and drive up the company's stock with splashy announcements.

"Ted is P.T. Barnum," John Fichthorn, a hedge-fund manager, told BI. "You need a guy who's willing to go onstage and tell a story and get investment in the stock."

Then it would all implode.

Vinco may be Farnsworth's last corporate collapse. He was charged in November 2022 with securities fraud , with the government alleging he defrauded investors in MoviePass' parent company, Helios and Matheson Analytics. He has pleaded not guilty and is awaiting trial. Farnsworth is also facing several lawsuits tied to Vinco.

"It's the most money I've ever lost in my life," said Shadwrick Vick, an investor who goes by Retail Rudy online and lost about $500,000 on his investment in Vinco. He holds 11,825 shares that he bought at an average price of $41.68, reflecting the results of a 2022 spinoff and a 2023 reverse split before the stock got delisted. The shares are now worth less than a cent each.

Vick is part of a shareholder group that filed a lawsuit, which has since been dismissed, against Farnsworth and several other current and former Vinco leaders, including Farnsworth's romantic and business partner Roderick Vanderbilt, who's still the chairman of the company. Vick has also sued two hedge funds that invested in Vinco in a complaint that alleges they made "predatory loans" to the company. That case is still pending.

"This was not an accident," Vick said. "These guys planned to take down the company," referring to Farnsworth and his allies.

The Farnsworth playbook

Farnsworth sports a friendly grin and seemingly boundless enthusiasm for what he is hocking at a given moment, which has included a psychic hotline promoted by La Toya Jackson in the 1990s and a beverage company in the early 2000s.

But it was MoviePass that really moved Farnsworth into the spotlight.

The movie-subscription service was acquired in 2017 by Helios and Matheson Analytics. Farnsworth, then the CEO of the parent company, dropped the monthly subscription price, which allowed subscribers to see a movie at any theater once a day, from $50 to $10.

The move attracted millions of subscribers and helped turn Helios and Matheson into a popular stock with retail traders. But the cheap subscription was a money-losing proposition, ultimately driving Helios and Matheson to declare bankruptcy.

At Vinco, Farnsworth employed several of the same tactics that he had at MoviePass and at his earlier ventures.

Farnsworth set up Zash as a shell corporation to acquire businesses connected to buzzy sectors. In Vinco, he found a public company in need of a lifeline and proposed a merger.

This allowed him to take control of a publicly traded company that he could use to attract retail investors, similar to the way he used MoviePass to draw investors to Helios and Matheson.

Farnsworth had been obsessed with the "Reddit crowd," as he'd call it, since MoviePass. In leaked audio from mid-2022, Farnsworth bragged that the "Reddit crowd" drove the stock of MoviePass' owner from around $3 to $45 (the stock actually peaked at around $38 in 2017).

And the same Wall Street connections were part of the deal.

On the day Vinco announced its merger with Zash, Hudson Bay struck a deal to invest $12 million in Vinco in the form of debt that had to be paid back with interest and could be converted to equity, in what is often called a structured-equity investment.

Hudson Bay also received warrants to buy 15 million shares in Vinco at $2 a pop — compared to the nearly $5 the stock closed at that day as the stock spiked 196%.

"It just makes it expensive money," Brian Quinn, a professor at Boston College Law School, said of the financing structure.

The deal was arranged by a longtime collaborator of Farnsworth's, Michael Hartstein at Palladium Capital Group, which had helped raise capital for his companies stretching back to the mid-2000s. (Hartstein and Palladium did not respond to requests for comment from BI.)

Palladium placed $132 million worth of convertible notes and shares for Vinco and, per company disclosures, was paid $14.3 million in cash fees across several financing deals from January 2021 to 2022, on top of earning warrants.

Besides Hudson Bay, hedge funds including BHP Capital, Armistice Capital, and CVI Investments also invested in Vinco.

Stock volatility was the key

Structured-equity investors make money in two key ways. First, the loans must be paid back with interest. Second, the loan can be converted to equity, creating the opportunity to profit from an increase in the stock price.

In the case of Vinco, some of the shares held by investors were what are called unregistered shares. For the investor to sell them, there has to be significant volatility and trading volume. That's because there's a cap on the volume of unregistered shares a seller can trade over a period of time (though registered shares can be moved freely).

"You need a guy who can get volatility into the stock and will make the stock go up," Fichthorn, the hedge-fund manager, said. "Because you need volume, and you need enthusiasm to get liquidity to protect yourself in your structured-equity investment."

This was Farnsworth's forte. He would hype up the stock with announcements stuffed with buzzwords and bombastic stats. In the case of Vinco, it touted in 2021 plans to acquire a "budding rival to TikTok" with "over 10 billion atomic clips," and variously referred to hot areas like the creator economy, social networking, and NFTs. At one point, Vinco said it would buy the National Enquirer .

Farnsworth wrote most of Zash and Vinco's press releases during his time at the companies, according to two people familiar with the matter.

"Ted took these press releases and really treated them like they were works of art for him," Matt Argall, a former advisor to Farnsworth, told BI. "He would reword them 10 times over before submitting them to legal."

Another person close to Farnsworth said public relations was Farnsworth's "fiefdom," and you "didn't dare" get involved.

Farnsworth was particularly fond of the David versus Goliath narrative he'd previously spun with MoviePass by pitting it against the largest movie-theater chain in the world, AMC Theatres.

"People don't realize, for MoviePass, I picked a fight with AMC, which drove us to the No. 1 consumer story for two years in a row," Farnsworth said in the leaked audio. "AMC would take a pop at me, I'd take a pop at them … It was David versus Goliath."

Farnsworth takes aim at 'bad, bad, bad' TikTok

Early in the pandemic, TikTok's user base was booming in the US, but the company had begun facing political scrutiny over its parent company's ties to China. Farnsworth saw an opportunity.

In mid-2021, Zash and Vinco bought majority control of Lomotif for $109 million. They said in a press release at the time of the investment that the app was "one of the top short-form video platforms in the world," and the combined companies would be worth over $5 billion, citing a recent "private financing comparable valuation by Gemini Valuation Services."

Hudson Bay bankrolled the Lomotif deal, lending Vinco $120 million in convertible notes. The app's potential to take on TikTok was the main reason Hudson Bay took an interest in Vinco, a person familiar with Hudson Bay's investment told BI.

That deal and other announcements helped drive the stock to a pre-reverse-split high of $12.49 during intraday trading on September 8, 2021, or the equivalent of $169.92 after a later spinoff and reverse split.

"TikTok's bad, bad, bad — and we're the saving grace. We're a US digital company," Farnsworth said in the leaked audio.

Farnsworth embarked on a wave of spending. Vinco announced a host of splashy plans in 2021 that included taking over a 52,000-square-foot movie studio in Syracuse, New York, as its base for creating content; acquiring the advertising company AdRizer to help bring in revenue; and forming Cryptyde, its blockchain and crypto-mining play, which Vinco would later spin out into a company called Eightco Holdings.

One of the first things Farnsworth did after acquiring a large stake in Lomotif was promote it by holding the Dandelion Music Festival, an all-day, free concert in Syracuse, in October 2021.

Argall recalled that in the middle of the festival, Farnsworth turned to him and, over the blaring house music, screamed: "It's amazing what you can do with public money," referring to the access to capital that publicly traded companies have. Farnsworth denied saying this through his lawyer in a statement to BI.

One VIP who attended told BI they were blown away by the festival's high production value — complete with a massive green room at the movie studio, which turned out to be the most action it would get during Farnsworth's reign — but were baffled by how it all could be done without charging attendees. Several people directly involved with the festival said it cost about $2 million to pull off.

Lomotif was also a partner at the popular electronic-dance-music festival EDC Las Vegas in 2021 and 2022, where, according to several people familiar with Vinco's plans, Farnsworth spent millions of dollars to lure stars like Lil Nas X, The Kid Laroi, Snoop Dogg, and Grimes to show up as surprise guests.

Farnsworth also once offered a $1 million donation — with a public handoff of a giant check — to the founder of a nonprofit arts festival in the southern Adirondacks. The founder said Farnsworth later sent paperwork requesting ownership of the festival as a contingency of his donation (BI has viewed the paperwork). The founder declined. Farnsworth, through his lawyer, denied he engaged with the arts festival in a manner "inconsistent with its non-profit status."

The smoke and mirrors of Farnsworth's 'TikTok killer'

Farnsworth was spending big on promoting the app, but problems plagued the platform.

Farnsworth had boasted in July 2021 that his "TikTok killer" app had more than 31 million monthly active users . But an internal Lomotif report from January 2022 told a different story: Just 6.2 million people had used the app in the previous month.

Argall, who had requested the data, got a panicked phone call from Farnsworth after seeing the report. He wanted to see Argall immediately at the downtown Tampa Marriott where he was staying. When Argall got there, Farnsworth's room was a mess of empty snack wrappers and rumpled bedsheets.

"Ted was in complete meltdown mode … shaking, crying, and terrified," Argall told BI. "Seeing the data, he realized there was no way on earth this property was worth $5 billion."

Farnsworth appeared furious at Argall. He said Farnsworth looked him in the eyes and said: "You have put my life at risk."

Five months later, Farnsworth received yet more evidence that his "TikTok killer" was anything but that.

An email to Farnsworth said that when Vinco and Zash bought into Lomotif, "a substantial number" of users were "double and triple counted." It also said there were "additional problems with the product," including that Lomotif had "hundreds of thousands (or more) of user views that couldn't possibly come from humans."

"As an example, we found one user who watched 3,000 videos in a row, one every 30 seconds. 25 straight hours of watching the same video. Inconceivable," the email read.

The email was sent to Farnsworth by the Boston-based data-analysis company Get2it, which had compiled a report for Zash on Lomotif data from May 2020 through March 2021. BI reviewed the email and data report.

Get2it's CEO, Allan Stern, refused to supply any reporting about Zash and initially declined to comment to BI on the report. Farnsworth's lawyer said the report had been "discredited at a later date when Get2it discovered a glitch in its own software." When asked to respond to the lawyer's comment, Stern told BI: "There was no software used in this work effort, so there could not be a 'glitch.' Instead, all we do is take client data from their own systems and analyze that data. Whoever told you this doesn't understand our process or is purposely prevaricating about it."

Despite the Get2it report, press releases about Lomotif were still rosy toward the end of 2022 — an October release that year said Lomotif had "about 225 million app installations" globally.

A rescue plan fails

Behind the scenes, Farnsworth had begun trying to overhaul the app. Vinco had hired a company called AI Pros to build a new version of the app that the company would license and roll out in the US.

The Lomotif app had largely been a disaster up until that point, "crashing left and right" when it launched in India in 2021, Farnsworth said in the leaked audio from mid-2022. "Lomotif's fucked," he added in the leaked audio, referring to the technical challenges. Farnsworth said through his lawyer that he was never aware that "Lomotif was ever in a situation of facing an irreversible computer software problem."

The app also generated no significant revenue for Vinco through September 30, 2022, which was the last period for which the company filed financial statements.

In spite of Lomotif's issues, Vinco plowed ahead and, in December 2022, agreed to buy Zash's end of the joint venture and forgave about $60 million it had loaned to the company.

By that point, the stock was cratering as investors began to realize it was a lemon. The company was running low on cash and behind on filing financials with the SEC. And some nasty boardroom infighting that included naming Farnsworth briefly as co-CEO of Vinco led to high leadership turnover.

Farnsworth had another trick up his sleeve, however. In February 2023, he announced that Vinco and Icon Publishing, his next apparent shell company, were forming a joint venture to buy the print and digital assets of the National Enquirer, National Examiner, and Globe.

This was going to be their NFT play leveraging the media brands' IP. But they missed the moment on NFTs, and despite getting some press attention — including an interview with Farnsworth in The New York Times — the plans failed to draw significant investor interest, including from Hudson Bay, and fell apart a few months later.

Farnsworth sits in jail while lawsuits pile up

Since August, Farnsworth has been sitting in a Miami jail cell.

Farnsworth was charged in November 2022 with one count of securities fraud and three counts of wire fraud stemming from his time at MoviePass and was released on a $1 million bond.

During Farnsworth's time out on bail, he showed a "marked disregard" for the law, according to Judge Robert N. Scola Jr. of the Southern District of Florida. Farnsworth traveled from his home in upstate New York to Miami on multiple occasions without notifying his probation officer and was involved in a domestic incident (not involving anyone associated with Vinco) that resulted in a restraining order, which he also didn't report.

In a hearing in August, Scola said Farnsworth had "an established pattern of withholding and concealing information from law enforcement and others, and that neither his indictment nor his conditions of release deterred him from committing new crimes," Bloomberg reported .

Farnsworth's bail was revoked, and he's now in jail awaiting his court date in July.

It's unclear how Farnsworth will fare in the upcoming trial. But Zash and Vinco — like many of his other ventures — have ended in failure. Everyday investors were the big losers.

Vinco stock has recently been worth less than one cent.

Vick, the investor who was among the 2,800 shareholders who filed a lawsuit against Farnsworth and other Vinco execs, has continued the fight. In January, he filed a complaint that targets Vinco's hedge-fund backers, alleging that Hudson Bay and BHP Capital were "'toxic' lenders" and that Hudson Bay made $253 million in profit from Vinco off its convertible notes and warrants.

The case has since been stayed by the court as Vick looks for new representation after his lawyer dropped the case. Hudson Bay has not been served the lawsuit as of the publication of this story.

"Hudson Bay's investment in Vinco Ventures was a standard, fixed price convertible loan of which millions remain unpaid," Hudson Bay told BI in a statement. "If served, Hudson Bay will seek to have these baseless, factually flawed and frivolous claims, which have been repeatedly dismissed in other proceedings against other parties, dismissed expeditiously."

BHP Capital did not return a request for comment from BI.

The suit also alleged that Farnsworth — who took credit in a July 2022 letter to Vinco employees for "raising hundreds of millions of dollars" for the company — and the Vinco directors Vanderbilt and Jesse Law had conflicts of interest and used the funding in the litigation for "self-dealing, mismanagement, corporate waste, breach of fiduciary duty, and fraud."

Farnsworth denied these allegations in a statement through his lawyer, and Vanderbilt did not return BI's multiple requests for comment. Law declined to comment for this story.

Investors aren't the only ones circling. Three people told BI that the Federal Bureau of Investigation had been looking into Vinco and Farnsworth.

"Wall Street is really corrupt," Vick said. "These guys just steal. They steal your money. And they are so arrogant that they need to be put in their place."

Katherine Long contributed additional reporting.

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