The Tribune

By Simon Cooper

Res Socius

The Australian Aboriginal peoples have a tradition they call ‘walkabout’, where they enter dreamtime and seek advice from ancestral spirits. That’s all very well, and I respect them deeply. However, when in business one usually needs a more detailed plan.

Consultants call the process business planning, although it is often more a statement of intent. Large corporates create cascading sets of documents, including strategies, goals, detailed objectives and cash flow forecasts. The top-level document is usually called a strategic plan. When considering a business for sale, ask to see one.

In a family situation, a similar document might record that “we will pay for our house, have a pension, raise some kids, educate them, and see them married off”.

In a commercial environment, it is more likely to describe overall financial objectives and the business model for achieving these.

Despite having comprehensive business plans, many businesses still fail. This can be because their owners fail to ask fundamental questions like those that follow here:

• Is your business idea powerful enough to sustain a competitive advantage? What makes you special enough to make it work?

• Are you willing to be out there on your own, taking financial risks and challenging the competition? If not, perhaps you lack the personal resolve …

• What resources do you have to see things through? Take time out to identify your strengths, weaknesses, opportunities and threats …

• Do you have the time and money to dedicate to this? New businesses are like babies. How are you going to support your business during the formative years?

• While I’m on the subject, what about your own close family members? How will your spouse and kids feel when you’re always at the office?

Is there really a market gap that’s worth pursuing? You need customers to buy your goods or services. If they don’t want them, they won’t pop by either?

• If you need business premises, where are you going to situate them? It’s all about position and upping the ante on your competition. But can you afford it?

• Finally (and importantly), what will be the criteria you use for measuring progress and success? What is measured gets managed. The opposite is equally true …

Of course, everything is not written in stone. Some of the best business plans were written on restaurant napkins.

The principle remains the same, though. If you do not know where you are going, you’ll likely end up someplace else.

My message this week is simple.

If you want to succeed in business you need to have a strategic plan.

If this applies to you, I suggest you stop dithering about it before someone steals a march on you and camps out on your brainwave. Speak to me should you require further advice. I’ll be delighted to assist.

NB: Simon Cooper is a founding partner of Res Socius, a business brokerage firm and businesses for sale directory service. Res Socius is authorised by the Bahamas Investment Authority to facilitate the sale and purchase of businesses and provide consultancy services.

Contact 376-1256 or visit www.ressocius.com.