Sep 6, 201812:43 PMOpen Mic
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7 signs your business needs a new strategic plan
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The adage says that 10 minutes of planning saves an hour in execution. The same motto applies to running a business. Whether your organization is opening another office location, onboarding a new client, or simply starting on a new internal project, the planning phase is of utmost importance. Without a plan, your team spends more money and more time completing the project, and it usually doesn’t turn out as well. Likewise, to make sure that the overall business is following a growth-focused trajectory, strategic planning or contracting strategic planning services is critical.
However, as much as we often know we need to plan for our business to be successful, many of us don’t undertake strategic planning sessions as often as we might need. So, how do you know if your business is overdue for a strategic planning session? Here are seven telltale signs.
1. You’re losing existing customers.
If your business is losing existing customers, especially ones who have been with you awhile, it’s a sign that something in your business model needs to change. Either you’re attracting and pursuing the wrong clients who aren’t a good fit for your business or you’re not focusing enough on the customer experience. Either way, it’s important to determine what the root cause is so that you can improve your client retention rates.
2. Your sales and profits are dropping or leveling off.
Even if you’re attracting and retaining new customers and your sales are up, decreasing or stagnating profits might indicate that your business has inefficient processes that are cutting into your profit margin. While working with an organization that offers strategic planning services, you might uncover that a new process has helped to retain customers but makes you less profitable. From there, you can decide to look deeper at working with a firm to improve your business’ process or transform your organization.
3. You’re losing market share, even if revenue is climbing.
Likewise, even if your sales and revenue are climbing, but you’re losing market share, it’s time to change direction and see how you can reverse the trend and hold onto the share that you’ve already acquired. Maybe it’s as simple as investing in some new marketing services, or maybe it requires a complete overhaul of your current customer service processes and systems to be more efficient or any other number of issues. Either way, you need to take action and make some decisions to have more success within the marketplace, and strategic planning can help you identify what steps to take.
4. You’re adding new products or services.
At certain points, your business may choose to diversify your product or service offerings to tap into new market segments, or your customers may start asking you to provide services that you don’t normally offer. If that’s the case, it shows that there’s a need that you can fill that’s outside your current business model, and updating your strategic plan will help you identify how you can tap into that market opportunity effectively and efficiently.