Business Management

Do you Have an Effective Business Plan?

Business Plans are a useful tool in managing and growing the business. The complexity of the plan varies with the size and nature of the business but here are a few ideas to improve your plan and areas of focus.





1. Don’t delay.
Too many business owners only create a plan when banks or investors insist on it. Find the time even if you are too busy getting things done. The busier you are the more you need a plan. Don’t spend all the time just putting out fires; the entire business may be lost if you focus on one burning issue.

2. Shorten the planning horizon. With the speed of change today the 5 year plan has become obsolete. Shorten the timeline to 3 years. You can have great vision and well developed strategy but unless you can connect the dots between where you are today and where you want to be you will fail.

3. Manage what you can measure. Knowledge is power. Monitor the right information and your plan will have a greater chance of succeeding.

4. Be Cash Flow sensitivity.
Most business owners seem to focus on profits instead of cash. The reality is that businesses spend cash to operate, not profits. Understanding cash flow is critical. If you only get one report to manage the business make sure it is a cash flow chart.

5. Support a strategic exit
Finally, at some point, the owners of the firm may decide it is time to exit. Considering the likely exit strategy in advance can help inform and direct present day decisions. The aim is to liquidate the investment, so the owner/current investors have the option of cashing out when they want.
Common exit strategies include;
• Initial Public Offering of stock (IPO’s)
• Acquisition by competitors
• Mergers
• Family succession
• Management buy-outs


Investment decisions can be taken in the present with one eye on the future via a well-thought-out business plan. Given that valuing firms is notoriously difficult and subjective, a well-written plan will clearly highlight the opportunity for the incoming investors, the value of it and increase the likelihood of a successful exit by the current owner.

Thanks for your interest. Let me know your thoughts. gerry@polarisgroupmc.com

Business Growth

Benefits of Networking

As an entrepreneur, networking is a key activity that is not only fun, but critical to your personal growth and business development.
Small business is all about networking, building relationships and taking action.
Building a successful business takes a lot of time and drive, so it’s good to have a network of friends and associates to draw energy from and keep you going.

Here are some of the key benefits of expanding your networking activity:
1. Shared Knowledge
Networking is great for sharing ideas and knowledge. Whether it’s asking for feedback or discussing your point of view, it will help you expand your knowledge and allow you to see things from another perspective.

2. New Opportunities
It’s natural that networking will result in opportunities. The thing you will not know is when or how they will materialize. Whether it’s a referral, offer partnership or request for your service or product, it is important to be ready to seize opportunities when they come along.

3. Connections
Remember you are not just gaining exposure to the people in the room, you are building connections with their network too. If someone they know has a need that matches your business, if you have made an impression, you will likely get a referral.

4. Raising your profile
Being visible and getting noticed is a big benefit of networking. By regularly attending business and social events, people will begin to recognize you. This can you help to build your reputation as a knowledgeable, reliable and supportive person by offering useful information or tips to people who need it.

5. Friendship
This one is more personal related rather than business related, but is a big benefit none-the-less. Many friendships form as a result of networking because you are all like-minded business owners that want to grow your businesses, and you meet and help each other regularly, so naturally strong friendships tend to form. Some of my strongest friendships have been started from networking.

I trust this was of interest and helps remind you of the benefits of reaching out to others as part of your growth strategy. One never knows where the next great idea may originate.