Spending time on planning
“If you fail to plan, you are planning to fail” - Benjamin Franklin -
As the business owner operator, you are the likely mastermind behind the great ideas that made you successful. However, we probably also agree that ideas are only half of the work. And while an idea is always the catalyst for change and success, execution is as critical to success as the initial idea. Proper execution takes sound planning so without planning, there is rarely sustained success. You might feel your business has reached its limits or you may be planning your next business move. Whichever the case, we recommend spending more time on planning.
EXECUTION IS THE HARDEST TRUTH TO SUCCESS. IT FAILS BECAUSE OF A LACK OF AN INSANELY PRECISE PLAN
The Wine & Spirits industry is a capital intensive business with an average store set up investment between $450,000 to over a million dollars. A small variance compared to your plan/budget can lead to tremendous costs overruns from $10,000 to $100,000 or delays in the opening date due to operational or financial factors including possible delays in securing financing.
A business plan is not only required to secure financing from banks or investors, it is your roadmap to success which is ultimately measured by your ROI (Return On Investment). Anyone can put together a 10-page document specifying the structure of a store’s target and how much profit to expect, but it takes much more to build a plan that maximizes your ROI from the start, controls startup and operating costs, minimizes costs associated with “trial and error,” manages deadlines, and balances your investment against your desired profit!!
Exhibit 1.0 – There Performance Group’s 7 steps to a successful business plan
Our team’s primary focus when developing an insanely powerful business plan is by spending over 30% of our time on the market analysis and then tying it together with the six other steps. We then roll back your overall ROI from the financial projections and translate it into your store’s optimal product mix, staff structure/skills, and the required marketing budget to support your growth plan.