Louisiana Women In Business Winter 2021

BUSINESS PLAN — VS — BUSINESS STRATEGY

AND WHY YOU NEED BOTH

Written by KeAndrea Anderson

When a person has a vision of becoming an entrepreneur and is ready to launch a new business, the first step is to develop a business plan to prioritize and present all the details of this new enterprise.

The business plan must include general details, including its name, owners, central location, and objectives. It also needs to spell out details of how it will work. Such as:

• A detailed breakdown of products and services

• How your company will solve a problem for consumers

• Target markets (your ideal clients or customers)

• The price point for your goods or services

• Financial Data and Projections

• How it will differ from others in the industry

This data defines the steps to follow to promote a successful venture. A business plan allows you to identify and restrict potential mistakes on paper, instead of trial and error. In the end, your business plan should help you decide if it’s worth it to open, maintain or expand the business.

Have FOCUS and DISCIPLINE, but be prepared to adapt your strategy as your market changes. Remember that a strategy to succeed can become a plan to fail if not revised periodically.

Make a list of the next BIG steps in addition to what you’re currently doing. Many companies fail because they lose focus and are not prepared to adapt. Consider Kodak. While it was the first company to have access to digital camera technology, it lost tremendously by not planning and strategizing properly.

Imagine a worst-case scenario - your sales are dwindling, projections are zero, investors are backing out - it’s the end of using your product or service. What is your next step? Have a game plan that includes potential ways to pivot or elevate your business to the next step even before you need to take that step. Stay ahead of what’s trending, be open to change, continue to learn, and lead by example. Reinvent if necessary!

A structured business plan is essential for a business to survive its first years, and a sound business strategy is needed to flourish long-term. Once a company implements its business plan, it can then use the business strategy to direct and define its goals.

Good strategic planning considers the organization’s objectives in the medium and long-term and transforms its aspirations into action plans and numbers. How do you imagine your business in the next 3 or 5 years? What strategy and action plan are you implementing to achieve the defined goals/objectives?

An analysis of the economic, competitive environment will define parameters for planning your business strategy. These defined assumptions establish some objectives, such as sales figures, share, billing and other necessary resources. The quality of your database is crucial. By enhancing your “market intelligence,” you can have the information needed to position yourself “one step ahead” of the competition.

It is also essential to brainstorm possible negative scenarios and difficulties that your company could face. By doing this, you can construct contingency plans to minimize the impact on your business. It’s important to remember that Strategic Planning is only effective if it is well-executed.

A company without strategic planning is like an airplane without a compass. It can never reach its destination without direction.

KeAndrea Anderson, also known as The Startup Strategist, is a global project manager helping entrepreneurs launch and scale healthcare businesses all over the US, owner of Cami Jolie, an aesthetic wellness spa in Louisiana, and a proud mother of 5.

LOUISIANA WOMEN IN BUSINESS Winter 2021 11