Kundun Consulting

I get asked the same question a lot - “What is a strategic plan versus what is a business plan?’ 

So I thought that my first post in this series about business planning would be  to define the term. You can go and do a Google search and find some long winded definitions however I like to keep things simple.

A strategic plan is simply a process where you look at where you want to take your business over  an extended period of time and try to address the issues that will affect your ability to meet the goals that you have defined. Its goal is to focus your energies to establish processes, plans, budgets and operational refinements into a unified direction.

A business plan on the other hand is a document that looks at the present and in consideration of the strategic plan,  seeks to establish the operational processes, goals, targets and achievable objectives required to met the strategy.

A business plan must  look at the various business units of your business, in order to align them together. You will look at each area and will complete a focussed marketing plan,  financial budget,  SWOT analysis and you should address all key issues, personnel and resource issues that will need to be actioned in order to meet the goals set.

Business planning is often seen as too formal and long winded to be of any benefit , and is often only completed because “it feels right to do one.”  However if you invest the time to undertake a planning process then set it up correctly and you will reap the benefits. Most of all it is not set in concrete. It should be seen as the mechanism of managing the business and should be reviewed consistently throughout the journey to ensure that you have your business on track.  It is ever evolving and must change when your business changes, market conditions change, goals or milestones are missed or when you feel that you have lost direction and that the business plan is not helping focus attention.

Over the next week I will run through the process that I normally use to implement a business plan into my small business clients. At the end of the week I will provide a free template to everyone who registers and simply asks for a copy. 

Stay tuned.

Every morning I grab my start to the day from a Coffee shop that is fighting the big boys and winning.

The “shop” in question is literally no more than a hole in the wall. It would be 1.2m by 3.5 meters in total, and from here the owner, Steve, has forged a magnificent little business that competes and beats his much larger, more resourced competition.

How does he do it? He does it because of three reasons - that I can see.

First of all his product is the best that he can deliver - in fact that almost anyone can deliver. His passion for making coffee is, particularly when I am in a rush, a little bit obsessive - but you may never find a better coffee anywhere else in Melbourne. It is consistently the same product every time I get one - which makes me very happy as a self confessed coffee addict. If you are going to do something - then do it well.

Secondly he has great systems in place. His stock is delivered outside of the morning rush. I asked him how he did that and his answer was simple. He simply asked his supplier’s delivery drivers to make him last on their city run. Their reward - a free coffee and a chat about the state of world politics - all good!

In his very small space he manages to display and sell a limited range of sandwiches and other “healthy” alternatives to the competition around him. He manages to store all his required items within arms reach so that when he makes a coffee he has everything that he needs at his fingertips. There is no fluff, just the products that he can produce and sell at the highest possible margin.

But the real reason that he is so successful in my opinion is that he has created a genuine point of difference that his competitors just don’t see. His outlet is called Brownies and with each coffee he gives a small piece of chocolate brownie. It is no more than a small bite but it really is a point of difference. It is something extra that costs very little but which seems to bring people back and even forces them to wait in a line 10 deep for 5 or 10 minutes. I stood back and watched for 10 minutes the other day and his customers all immediately eat the piece of brownie - it works!

He chats merrily right through the customer experience and finishes off with “Have a great day.” It does not feel contrived but rather a real thank you from someone who understands that his customers are the critical component in his business - without them he doesn’t have a business.

It is often very easy for a business to fall into the trap of taking their customers for granted. How often have you brought on a new product line and tried to gain new customers for your business. How often has this been a really trying experience and one that was mildly successful or a failure? But how often have you started marketing your services or product offerings to your existing customers? How often do you contact your existing customers - personally - and make them understand how appreciative you are of their loyalty?

Getting new customers is costly and time consuming. It is a process that is often difficult to successfully complete and usually at a reduced margin because you have had to “beat” the opposition whose business you are trying to take. Your existing customer base is already there and looking to spend more with you. They are there ready, willing and able to be offered more by you.

So take a little piece of Brownie’s philosophy and look at what you can do to make your customers feel “loved”. Remember your goal is to get sales and it is easier selling to people who are already converted - rather than trying to convert those who are currently entrenched elsewhere.

And please give your customers an experience that meets and then exceeds expectations - never give them an excuse to try the new coffee place down the road!