How to build a business development plan
You want to get to a there, a point in the future usually three to five years out at which time your business will have a different set of resources and abilities as well as greater profitability and increased assets. Each new rung brings more opportunities for fast growth, but also more risk. Situation Analysis A situation analysis is the process of gathering internal and external information to help in creating a business development plan.
McFarland says the iPhone has had a similar impact; once customers began to enjoy the look and feel of the product’s interface, they opened themselves up to buying other Apple products.
If you have a choice, you would ideally like to sell your new products to existing customers. Tactics are operational and indicate exactly what the company will do to achieve its strategies. For instance, Fastenal , a company based in Winona, Minnesota that sells nuts and bolts among other things , made the decision to acquire several tool and die makers as a way to introduce custom-part manufacturing capabilities to its larger clients. SWOT stands for strengths, weaknesses, opportunities and threats.
You don’t want to pull the plug too quickly, however. Developing a Growth Strategy: It is likely that you can apply Pareto i. You will also, when assessing what percentage of your annual target usually comes from existing accounts, need to review data over the last two or three years.
As you go about developing your growth strategy, you should first consider the lower rungs of what are known as Intensive Growth Strategies. A true alternative to in-house resources we offer a very high level of practical experience, know-how, contacts, and confidentiality.
In some cases, a merger can end in total disaster, as in the case of the AOL-Time Warner deal. The statistics are grim. We intend to implement a market penetration strategy that will ensure that we are well known and respected in our respective industry.
When Apple added its retail division, it was also adopting an Alternative Channel strategy. The least risky growth strategy for any business is to simply sell more of its current product to its current customers—a strategy perfected by large consumer goods companies, says McFarland.
The key word is Strategy, because you are creating a workable and achievable set of objectives in order to exceed your annual target. The bottom line for small businesses, especially start-ups, is to focus on those strategies that are at the lowest rungs of the ladder and then gradually move your way up as needed. Next Article Image credit: In bottom up management, employees will make suggestions and the best of the ideas will be passed up through management until, finally, some of the ideas are adopted.
Which — are the appropriate target personnel? We need to be continually communicating with the client. Using the Internet as a means for your customers to access your products or services in a new way, such as by adopting a rental model or software as a service, is another Alternative Channel strategy.
In other words, most businesses start small and stay there. Our personal selling marketing strategies will rotate around keeping in touch with investment and finance bodies for major clients and word-of-mouth for more individual investors.
Internal information includes information about employees, including turnover, longevity, satisfaction, as well as customers, including who they are, how long they’ve been customers, what they’ve purchased, and any particular strengths or weaknesses that the company may have.
Functional Strategies These strategies focus on broad ideas and tasks for different departments within a business.
Nevertheless, there are three viable alternatives when it comes to an implementing an Integrative Growth Strategy. The marketing will convey the sense of quality in every picture, every promotion, and every publication. Employing such a strategy not only adds to your company’s growth, it also eliminates another barrier standing in your way of future growth—namely, a real or potential competitor.
Depending on the complexities of the strategies you plan to implement, there are several factors you’ll need to take into consideration.
Quite simply, strategic management is the act of developing and implementing a plan designed to achieve the objectives of your business.
Why — would they want to meet with you? These will undoubtedly generate increased sales of our products. Some will develop their plans using a “bottom up” method, while others will use a “top down” approach.
Objectives are more specific and include clear, measurable outcomes and timelines. McFarland says that many of breakthrough companies such as Paychex , the payroll processing company, and Intuit , the maker of personal and small business tax and accounting software, acquired key competitors over the years as both a shortcut to product development and as a way to increase their share of the market.
Similarly, Apple pulled off this strategy when it introduced the iPod. Excellence in fulfilling the promise: Timeous response to clients orders: You start here, today, with certain resources and abilities. A Step-by-Step Guide This guide to writing a business plan will outline the most important parts and what should be included in an effective plan.
Find what works for you and if you realize that what you are doing is not working, switch things up until you find a new business strategy that is right for your organization. External information includes information about the business environment, economy, industry and competitors.
Sometimes, you have no choice but to take more risk, says McFarland. We need the right people in the right place at the right time if we are to ensure optimum growth. How — will you reach them?
Finding new ways for your customers to use your product—like turning baking soda into a deodorizer for your refrigerator—is another form of market penetration.
When — will you approach them? Where — are they located? An even more microscopic group, just 0. We will ensure that our services’ prices take into consideration people’s budgets, and that these people appreciate the services, know that it exists, and where to find it. Palms and Bonds offers the expertise that a proactive-oriented and market-opportunity seeking company needs to develop and enter new product distribution and new market segments in new markets.
At Palms and Bonds we are able to provide comprehensive solutions to our clients’ problems that will foster business development. This growth strategy would involve buying a competing business or businesses. If you choose to follow one of the Intensive Growth Strategies, you should ideally take only one step up the ladder at a time, since each step brings risk, uncertainty, and effort.
Strategies indicate how the company will accomplish its objectives by leveraging its strengths and opportunities, and overcoming its weaknesses and threats. Also, we intend to build our management team correctly. Clients must know that working with Palms and Bonds is a more professional, less risky way to develop new areas even than working completely in-house with their own people.
For example, Express Personnel now called Express Employment Professionals , a staffing business that began in Oklahoma City quickly opened offices around the country via a franchising model. Palms and Bonds prides itself on its analytical ability, its value-added service, competitive fees, its high standards of quality and its adaptability to changes in the market and in the method of its practice. Create your own business plan 1. Goals are high level and indicate what the business development plan is designed to accomplish in a broad, general sense.
Eventually, the company offered employment staffing services in some different locations, and the company became the fifth-largest staffing business in the U. As we grow we want to grow right. Too often, companies take a year to develop a strategy and, by the time they’re ready to implement it, the market has changed on them, says McFarland.
Growth strategies are never pursued in a vacuum, and being willing to change course in response to feedback from the market is as important as implementing a strategy in a single-minded way. They typically deal with the day to day operations of the business and may focus on details such as how many cashiers are needed during a certain shift or how much stock to keep on hand. With time our presence on the World Wide Web will increase the knowledge of our services to the various market segments we shall be targeting.
That’s the premise behind the search Keith McFarland, an entrepreneur and former Inc. The Power of Diversification Developing a Growth Strategy: Doing a good job of gathering specific, factual information about the business environment is important to help frame the discussion that will eventually lead to the development of goals, objectives, strategies and tactics.
Another option is the collaborative process in which managers and employees work together to develop the best business strategy. If you jot down a paragraph on the back of an envelope describing your business strategy, you’ve written a plan, or at least the germ of a plan. Sometimes, market conditions dictate that you must create new products for new customers, as Polaris , the recreational vehicle manufacturer in Minneapolis found out.
For example we recognize that we have to be in constant touch with our stakeholders to ensure market knowledge at all times. We shall position ourselves as a quality service provider that strives to provide accuracy, relevancy and specific information.
What made the iPod such a breakthrough product was that it could be sold alone, independent of an Apple computer, but, at the same time, it also helped expose more new customers to the computers Apple offered.
We intend to provide a number of necessary services to the business community and to the public. Our mission statement is: Diversification Another category of growth strategies that was popular in the s and s and is used far less often today is something called diversification where you grow your company by buying another company that is completely unrelated to your business. Business plans are inherently strategic. New Products for New Customers.
The common bond will be the appreciation of the importance of quality information that will enable correct decisions to be made, holding all things equal. When possible, a business strategy consultant may be included. Integrative Growth Strategies If you’ve exhausted all steps along the Intensive Growth Strategy path, you can then consider growth through acquisition or Integrative Growth Strategies. SWOT Analysis Based on all of the information gathered during the situation analysis, a SWOT analysis is generally done.
In most cases, careful planning and the implementation of a business development strategy was involved. That’s how GE could have a nuclear power division, a railcar manufacturing division and a financial services division all under the letterhead of a single company. We intend to provide quality information that is customized to the client’s needs, in the process assisting them on how best to use the available information.
Functional strategies may include marketing, human resources, new product lines as well as legal and financial strategies. We also intend to have brochures that will enable clients to have an understanding of the types of services we offer and advantages of doing so.