The pandemic put many businesses off-track in the short and medium term, and with the additional uncertainty created by Brexit during the same timeframe, and now the Russian invasion of Ukraine adding to the mix, it is not surprising to learn that economic growth has slowed and that the UK economy is now only 1.5% above its February 2020 level.
While the situation in Ukraine is still cause for concern in humanitarian and political terms, the ongoing economic impact is as yet unknown. At least with the pandemic now losing momentum, and the Brexit situation more stable, there are fewer uncertainties for businesses to navigate. This means it might finally be time for businesses to get back into long term planning rather than having to continually fire-fight and think short term, as many have done for the past 2 years.
While being reactive and proactive, taking advantage of changes in the market and opportunities which come your way are all key strategies for success, it’s also important to have a long term plan so that you aren’t wasting energy and resources constantly switching direction to chase down different routes. Most of us wouldn’t set out on a journey without planning our route, or at least plugging the postcode into the sat nav! If you have a vision of what success looks like for your business, then you need a plan for how to get there.
A long term strategic plan looks at all the things a business could do and narrows it down to the things it is actually good at doing. A strategic plan also helps you determine where to spend time, resources and money.
So how do you create a strategic plan?
- Take time to review your own personal objectives – the business is there to provide you with what you want from life, do not forget this.
- Look at where you are now, your strengths, weaknesses, opportunities and threats. Take external advice so you have a clear understanding of your position in the marketplace, the competition, your systems and the way you do things and what you are good at and what you are not.
- Focus on where you want to be in (say) 5 years, what you want your business to look like when it is “complete” or running profitably and successfully. Then you can determine your priorities – the big issues that you need to focus on. This is the strategic plan!
- Write down your vision and define what you must achieve and the actions you need to take. Monitor how you are doing towards your vision each month, what actions have been completed and what needs to be done to keep you moving towards your plan.
- Allocate responsibility for taking the actions.
- Monitor, review and adjust your regular activities to keep you on track towards your plan.
Of course there will always be unpredictable events out of your control that may affect your business, but with a long term strategic plan in place, you can accommodate for these when they come along, absorbing them into your overall journey. This will help you to feel more in control and less at the mercy of external forces like pandemics, political events, and global economic uncertainty.
Your accountant here at ER Grove & Co is also a business advisor. They’re not just here to do your tax return once a year, but as a source of support and advice for achieving your business goals. Please talk to us if you need any help or support in creating a long term strategic plan for your business.
