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Business Planning
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Key Questions If Yes…. If No….. Goals well defined?
Personal aspirations Business Sustainability Tolerance of Risk If Yes…. Is the strategy right? Clear definition Profitability and potential growth Durability and Rate of growth If No….. Can the strategy be implemented? Resources Infrastructure The founder’s role
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Personal Aspirations Motivation to start a business?
What do I want for me, my family, society? What life style do I want? Review all these regularly
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Drivers for Enterprise
Tension The actual The possible
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Drivers for Enterprise
Three tensions - Financial Personal Social
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Financial Entrepreneurship is an economic activity
Concerned with building stable, profitable business Concerned with adding value for stakeholders Entrepreneurship not ‘zero sum game’ Entrepreneurship about win - win
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Personal Making money is not necessarily the most important factor
Achievement, sense of creation, making a difference, generativity instinct Challenge, competition Destination not important but journey is
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Social Societal influence ‘Better world’ concept Moral dimension
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What kind of enterprise?
Quick profits? Fast cash flow? Capital gains? Sustainable? Review these regularly
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What is my attitude to risk?
High risk? Risk adverse? Time scale? How do you handle stress? What am I willing to sacrifice? Review these regularly
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Right strategy? Short-term opportunistic? Longer term planned?
Controls? Tactics?
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Strategy Definition Strategic statements Mission? Vision?
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Profit, growth and sustainability
Competition? Pricing strategy? Value added? Cash flow and controls Market? Regulation? Opportunities
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Implementation Can it be done? What are the obstacles and risks?
How might these be overcome?
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What S.H.A.P.E. is your business in?
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What S.H.A.P.E. is your organisation in?
Service/Sales Human Resources Administration Production Entrepreneurial Flair
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What S.H.A.P.E. is your organisation in?
“Making sales is crucial to our organisation.” “We try to meet customers’ needs and sell them what they want.” “The customer is King/Queen.” “Service and sales are our prime function.” “Customer service and customer care is crucial.”
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What S.H.A.P.E. is your organisation in?
“We train and develop our staff.” “Teamwork must be encouraged.” “People are important.” “Career path is important.” “We pay well.” “We compete through our people.”
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What S.H.A.P.E. is your organisation in?
“Systems of control are essential.” “We know what we are doing day by day.” “We have carefully monitored plans.” “Cost and credit controls are crucial.” “Effective systems are the key to success.”
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What S.H.A.P.E. is your organisation in?
“We get the goods out of the door.” “We invest in up-to-date technology.” “Our production methods are crucial.” “Production has a high profile.”
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What S.H.A.P.E. is your organisation in?
“New ideas are important.” “Go for it.” “Creative thinking encouraged.” “Good feedback on ideas.” “R & D important.” “Energy and enthusiasm.”
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What S.H.A.P.E. is your organisation in?
Service - short-term, results driven Admin - short-term, results driven Production - short-term, results driven H.R. - necessary for long term Entrep. - necessary for long term
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What S.H.A.P.E. is your organisation in?
Services/sales + production + admin. = Trainable H.R. + Entrepreneurial flair = Developed
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What S.H.A.P.E. is your organisation in?
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What S.H.A.P.E. is your organisation in?
Brainwave shapE - New ideas - Excitement, energy - Don’t bother me with facts - Dedication - Go for it
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What S.H.A.P.E. is your organisation in?
Birth ShapE - Energy from idea - Drive to promote it - Faith that someone will be interested - Failure not considered - Need results
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What S.H.A.P.E. is your organisation in?
Awakening ShaPe - Production - Customer expectations high - Resources stretched - Problems start - Must produce goods - Effort, energy will win through
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What S.H.A.P.E. is your organisation in?
Growing ShaPE - Quality crucial - R&D important - Awareness of Competition - Service/Production conflicts - Cashflow problems
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What S.H.A.P.E. is your organisation in?
Mature ShAPe - Controls & systems - Formalise management - Good customer base - Growth from current base - Ideas less important - Sales/Admin conflict
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What S.H.A.P.E. is your organisation in?
Established SHAPe - Staff turnover increases - Management do more for people - Incentives important - Solid base - Competition strong - Politics get played
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What S.H.A.P.E. is your organisation in?
Faltering sHApe - People kept for personality not results - “You can’t do that.” - Systems & Admin rule - No need to try too hard - Keep status quo
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What S.H.A.P.E. is your organisation in?
Lethargic -HAp- - No risks - “why change things?” - No new product - Communications poor - Status rivalries - Competitors take over
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What S.H.A.P.E. is your organisation in?
Bureaucratic -hA-- - Blame culture - Core business lost - Systems rule - Rules must be followed - Communication poor
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What S.H.A.P.E. is your organisation in?
Senile --A-- - Nothing happening - Total authority in administration - No investment - Tradition rules - “Cover your back.”
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What S.H.A.P.E. is your organisation in?
Death ----- -Accountants dream!
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