Unlocking Success: The Essential Elements of Business Planning
At the core of a CGMA’s (Chartered Global Management Accountant) [1] expertise lies the ability to develop comprehensive business plans. Beyond mere numbers, these plans encompass strategic objectives, market analysis, and risk assessment, providing a roadmap for sustainable growth. Here is where your CGMA should be assisting you:
Foundational Statements: Mission, Vision, and Problem Identification
Mission: "What you want to do” - The mission statement encapsulates the purpose and overarching goal of the organisation. It outlines what the business seeks to achieve and the impact it aims to make.
Vision: "What does it look like" - The vision statement describes the desired future state or the goal the business aims to reach. It provides a clear picture of what success looks like and serves as a guiding principle for the organisation.
Problem:? "Why" is addressed by identifying the problem or pain point the business seeks to solve. Understanding the problem is crucial as it forms the basis of the business idea and validates the need for the product or service offered. This is often articulated with a Value Proposition, which outlines the target audience and the unique value the products and services offer to address their needs or challenges.
Operating Environment Awareness Tools
PESTLE analysis, developed by Harvard's Prof. Francis Aguilar, provides valuable insight for business owners by examining Political, Economic, Social, Technological, Legal, and Environmental factors. This analysis helps identify opportunities and threats present in the external operating landscape.
Porter's Five Forces framework, developed by Harvard Prof. Michael Porter, assists businesses in assessing the competitive intensity and attractiveness of their industry. By analysing Competitive Rivalry, Supplier Power, Buyer Power, Threat of Substitution, and Threat of New Entry, businesses can devise strategies to gain a competitive edge and navigate market dynamics.
SWOT analysis, developed by SRIs Albert Humphrey, Porter, McGill, et al., delves into a business's internal strengths and weaknesses, as well as external opportunities and threats. By identifying these factors, businesses can capitalise on strengths, mitigate weaknesses, seize opportunities, and prepare for potential challenges.
Strategic Partnerships: Legal, Financial, Technological, Marketing, Planning, and Accounting
Strategic partnerships are vital for entrepreneurs as they launch their new ventures, bolstering team capabilities and increasing the likelihood of success.
This involves collaborating with legal advisors to navigate regulatory complexities and mitigate risks.
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Accountants provide financial expertise for sound management and compliance, while industry mentors offer insights and networking opportunities.
Technology partners assist in developing and implementing technological solutions, while marketing agencies build brand awareness and reach target audiences.
Supplier and distribution partnerships ensure efficient operations and financial partners provide growth funding.
Collaborations with community organizations enhance brand reputation and social impact.
Leveraging these strategic partnerships enables entrepreneurs to navigate challenges, seize opportunities, and drive business growth effectively.
Bringing a CGMA on board during the early planning stages can offer invaluable expertise and access to strategic planning tools. Brainstorming sessions enhance collaboration and idea generation within the team, while also assisting in the identification of expert strategic partners crucial for the entrepreneurs' success.
Your CGMA will be able to understand the business objectives and devise budgets and performance reports to measure achievements against your goals.
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David Fisher FCMA CGMA FCPA MBL. Contact [email protected]
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