An eBook titled “6 AMAZING ANALYTICAL PATHS TO BUSINESS SUCCESS WHERE TO FROM HERE?” is available for purchase.
This eBook outlines 6 phases of your ideal business analysis.
This analysis may be done at start-up; or when the business seems to plateau and not going anywhere; or annually or quarterly to satisfy yourself you are headed in the right direction.
Things can and do change – world economic situation; State, National and World pandemic situation; Government policy; International politics; local competitor strategies; your own organizational and financial issues.
Your business must adapt, or risk being left behind.
This analysis facilitates any necessary adaptation.
Phase 1 is the Situation Analysis – Where are we now?
Here you have the opportunity to describe your current situation as if you were explaining it to shareholders, potential shareholders or the bank.
This covers financial, organizational, marketing, and your team.
Phase 2 is the Goals and objectives Analysis – Where do we want to take this business?
Many business owners do not have goals and the reasons why are well documented. Goals are very important, and they need to be written down in a living document subject to review and visualization etc.
They provide you with clarity, focus and a direction.
You can have financial goals, operational goals, personal goals for the business, marketing goals, etc. there is much more about goals in this eBook.
Phase 3 is the Strategy Analysis – How will we get to achieving these goals?
Strategic options are almost unlimited. You could choose
- Retail strategy
- Franchising strategy
- Digital strategy
- Professional services strategy
- Micro-business structure strategy
- Growth strategy
- Scaling-up strategy
- Market penetration strategy
- Product development strategy
- Market development strategy
- Diversification strategy
- “Leadership” OR “Management” strategy
- And many others.
The option you choose will generally be aligned with your experience and training, but you need to spend time considering some of the options.
In my case, I have spent about 5 decades promoting a number of professional services including consulting – all non-digitally – fronting people face to face, cold-calling businesses, etc. Very difficult and not very rewarding.
Clearly, these days, a digital strategy to develop a business, is much better.
This eBook contains a business strategy review article by my friend Allen Roberts, from Sydney, who is recognized as one of this country’s best marketing strategists. His business is StrategyAudit.
Phase 4 is the Financial Analysis – How much will we invest to make this strategy work?
There are many business, financial projection / forecasting programs available.
I have successfully used the one I developed with some external help, with many clients aver many years. It is described in more detail under the Financial Resources heading.
Phase 5 is the Capital Analysis – Where will the necessary funding come from?
As you work through the financial projection spreadsheet in Phase 4, you will see the Cashflow page.
In the line that says “Surplus / Deficit” for each month, there will be a month where this figure shows the greatest deficit.
For example, if it shows in month 6 that the greatest deficit is $50,000, this means you must raise $50,000 in business funding to make this project work.
The easiest place to get funding – and also the worst because of a lack of due diligence – is the 3 F’s – “friends, family and fools”.
The eBook discusses the main options for raising business funding apart from the 3 F’s – the bank, the Government and private equity investors. There are others which I do not consider to be mainstream.
Phase 6 is the Risk Analysis – Is it really worth it?
This is a very important Phase.
In the financial projection spreadsheet, there is a Sensitivity Analysis page where you can estimate the chances that this forecast will not be achieved. There are any number of “what if’s” you can enter, then you have to decide on the basis of your personal risk profile – mine is “risk averse” but some people are “risk takers”, even adrenaline junkies – whether to proceed with your business venture or not. For example, if there is a 20% chance these forecast results may not be achieved, and you need to borrow, say, $50,000, and you are risk adverse, I would suggest you think carefully about proceeding.
When I work with clients in this situation, I suggest we go back to Phase 3 and re-strategize so that the rate of development may be a bit slower, but it could take less capital to make it work.
