August 21, 2014

Business Chops Hot Tip #1: Planning Is Your Competitive Advantage

Stiernberg Consulting announces a series of business and management tips. “Business Chops™ Hot Tips” will focus on tactics for planning, competitive intelligence, trend analysis, and business development decisions that optimize sales, profits, and growth of your business. Think of Business Chops as your competitive advantage toolbox.

Business Chops Hot Tip #1: Planning Is Your Competitive Advantage

Why are some companies in our industry more sustainably successful than others? Hit products? Best prices or value? Great customer relations? Those are all relevant, but they're the results of focused business planning. Strategy is decision making that involves the critical choices that focus your firm’s efforts. Your strategic (three-year) plan outlines what you are going to do within the industry. It also answers “why,” or the rationale behind the decisions. Sales and profit growth need to be driven by planning—they don't occur miraculously by accident. Your operating (one-year) plan articulates how you are going to implement the strategy. Relatively few of your competitors do planning beyond simple budgeting. Your business plan is a powerful competitive weapon.

Hot tip: Take time to plan.

Stiernberg Consulting provides strategic and tactical business planning services for manufacturers, and other companies in the audio-video, music products, entertainment technology industries. The whitepaper “The Tactics of Strategic Planning“ offers five success tips for optimizing strategic planning and describes key applications for scenario planning.

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