A properly executed small business plan can positively impact business vitality and growth.
In part one of this planning two part series, we looked at why a business plan is core to success. In part two well look at how to properly execute a plan.
The execution of a plan can be a grueling process that can either make or break a company. The first step towards building a successful business is establishing a sound plan; however, the buck doesnt stop there.
Companies are now faced with the often arduous task of executing what they have put down on paper.
At this stage of the game the chance of company achieving success is measured by their ability to successfully implement an intelligent execution strategy.
Here are some strategies that companies can utilize to ensure a successful execution phase:
Create an organized infrastructure
Ensuring a successful plan execution is for owners to establish an infrastructure that serves as a system of checks and balances. Companies need to have regular meetings where they establish micro-goals, strategize, discuss and resolve problems, evaluate performance, and determine if theyre on-track with the initial plan.
Often times many companies fail in their plan execution because they either ignore or fail to identify potential problems that would normally present themselves if the time was taken to evaluate the companys current progress. This practice allows companies to become more adept in identifying and responding to problems before its too late.
Maintain the focus and accountability of employees
It's essential to maintain the focus and accountability of employees. A successful execution is heavily dependent upon the performance and attitude of employees. Companies that properly plan will assign roles and responsibilities to each employee in an effort to establish accountability; unfortunately, when the time comes to act, employees can sometimes lose track of what theyre accountable for.
These problems arise due to a number of reasons, such as lack of internal communication between owners and/or managers and employees, not believing in the companys vision, failing to properly instill an ownership mentality amongst employees, and personal issues related to individual employees.
Unlike larger companies that can sometimes tolerate a small amount of underperforming employees without the threat of serious consequences, smaller companies often cant afford to have any underperforming employees.
In order to avoid these problems owners and/or managers should constantly reinforce accountability amongst their employees as well as their importance and value to the company. The bottom line is that the focus and motivation of employees must always be in line with that of the companys goal.
About the author
Alexander J. Hart of Cuban American decent is principal and founder of Hart Vida Raffo. With over 25 years of experience, Alex specializes in the areas of tax strategy and planning, business process improvement, and capital consulting. Whether advising on capital and financing strategy or consulting for privately-held professional services firms, Alex has the expertise and practical know-how to help any company optimize their business processes and make tactical financial decisions. He began his career at IBM in sales operations and accounting. He was a Controller for the N.Y. Post, has been a CFO for a medical device company, and has written a tax column called “Ask the Tax Guys” for Micro-Cap Review. Alex is a professional member of A.L.T.A. (Affiliated Lawyers of the Americas), a member of the National Association of Tax Preparers, and is a contributing author and mentor at Latin Business Today. Alex graduated from St. John’s University with a B.A. in Spanish and his M.B.A. in Finance. He obtained his accounting degree from Pace University.Website