Most family-owned small businesses are eagerly awaiting the results of the upcoming presidential election, as the outcome may determine how they move forward with their operations. Regardless of which side ends up winning on November 6, family-run businesses can still take certain measures, such as creating a strong and forward-thinking strategic plan, to ensure their business is running on all cylinders from November 7 and onward.
Many leaders of family-run businesses recognize the inherent benefits of developing a strategic plan for their company, but struggle to find time to create one. In many instances, the main decision maker of a small family-run business is also the marketing director, the accountant, the supply purchaser – the list goes on. All the titles not owned by the main decision maker are then likely held by his or her sibling or relative, so everyone may feel pressed for time.
There's no doubt that an effective and detailed strategic plan takes some time to put together, but one of the major benefits of the tool is that it allows for companies to be better prepared for any wild cards that may come their way in the upcoming six to 12 months. So, in that regard, dedicating time to crafting a strategic plan every year may actually save family-operated businesses more time down the road.
Leaders of family-run businesses who see the value in allocating some of their time and energy to putting together a realistic and worthwhile long-term plan for their companies may want to keep a couple key ideas in mind:
1. Involve all relevant family members
One of the major hurdles family-operated small companies often face is resentment or jealousy. The head of the company may be able to reduce possible tension and eliminate resentment before it sets in by making sure all employees have a say in the shape of the company's future. Not every suggestion needs to be implemented and not every goal needs to be added. But, by including everyone in the discussion, cousins, nephews, brothers, sisters, husbands or wives, etc. will note that their voice carries some weight.
2. Be detailed, be realistic
Strategic plans are living documents that need to be reviewed and adjusted regularly to ensure they keep pace with new market developments or unexpected business occurrences. That being said, these documents still require detailed figures and business projections; otherwise, there will be no way to accurately determine essential business considerations: expenses, revenue, investments, new hires. By using a business planning tool, such as budgeting software, small family-run operations can forecast months and years ahead to answer important questions: How much money will the company earn during the next year? How much of that will need to be saved for expenses, fixed and otherwise? Will there be enough revenue to give bonuses? Invest in new equipment? Hire another relative?
Although some small business owners may be successful without crafting a proper plan for their companies, those who do tend to have the confidence to move forward with purchases, hires and other major decisions because they have a clear and defined strategy.
var addthis_config = {services_compact: ‘facebook,twitter,linkedin’}