In the always on often hectic world of running a small business (SME), it is easy to get caught up in day to day operations and not think about the future. Taking time out to focus on the bigger picture and long-term strategy is crucial for sustainable growth and success.
Every book, podcast or instagram story on business success tells you to “work on your business not in it”. I talk to clients about it all the time, but recently I asked myself how often do I practice it? The answer not nearly as often as I should.
There are two barriers that stop business owners from doing this.
- They can’t find the space to focus on thinking differently because the world around them in the workplace is too distracting.
- There is no playbook as to what areas to focus on. No structure to the thinking is not productive when time is limited.
Being in the right environment
Being in the right place, getting away from the day to day is crucial if you are going to take time out and maximise the value you get from it so choose a location you are comfortable in, where you have space and can relax in the surroundings.
This is a business activity so the cost is allowable as a deduction from your profits.
Where to start? Structure your thinking.
When you take time out to work on your business, it’s important to focus on areas that will drive strategic growth and ensure long-term success.
The plans, ideas and creative thinking will be different for everybody but following a framework could help you be more strategic.
Start by evaluating where you are and how the world around you is changing. Start with these four areas:-
- The world around you. What is going on in the economy that might affect you, how are customer trends changing, what new laws and regulations are going to change how you operate? How are the trends towards building more sustainable, socially aware businesses going to impact your business.
- Next turn the microscope round and look inside your business. What are the pain points that you are always firefighting, what feedback are you getting from customers and your employees? What do your performance KPI’s tell you about performance? Examine operational efficiency, identifying any bottlenecks or processes that could be streamlined.
- Assess your financial health by analysing key metrics such as cash flow, profitability vs budget, working capital requirements for the future. Is the business generating the returns you want and what investment does the business need?
How is your team performing? What do performance measures tell you about areas that could be improved? How are stress levels and how aligned are your team with company values, purpose and priorities?
SWOT
Next undertake a business SWOT analysis. (Strengths, Weaknesses, Opportunities, Threats) What are strengths and opportunities that can be built on and developed and where are the blind spots, the weaknesses and threats?
Strategy
Finally what big giant steps do you need to take to move from A to B (your strategic themes) and what little baby steps do you need to take in between (your action plan).
For example your objective might be to increase profits by £12,000 per year. How will this be done, the big step – growing sales of X or reducing costs of Y. Then how will this be done, small steps/ actions.
Final thoughts
Taking a step back from the day-to-day running of your business to focus on strategy is not a luxury, but a necessity. Regular strategic reviews, effective delegation, embracing technology, continuous learning, and fostering a strategic culture are all vital components of successful long-term planning but they all start with you having a clear plan of the journey you want to go on.
By prioritising time out to think about strategy, SME owner managers can ensure they are not just surviving but thriving.