Avoiding traps in strategic planning

Strategy errors to avoid.

At Blue Spire we can provide businesses in the Chichester & Brighton area with advice and support on a wide range of business issues. Here are some traps to avoid in strategic planning...

Some form of strategic planning is essential for all businesses that want to improve their long-term financial performance. However, it can be difficult to do it effectively, especially without external help and constructive criticism. 

Common pitfalls

For many businesses, 'strategy' is too often:

  • an overly simplistic vision, which is not necessarily grounded in tangible, competitive advantage
  • concerned only with general objectives, without spelling out the 'how'
  • too broad in scope, and insufficiently broken down by different product or market segments
  • controlled exclusively by too small a number of individuals
  • based upon inaccurate or wishful financial projections
  • focused only on profitability or sales measures, meaning that other important issues, such as exit values on sale of the business are often not factored in.

A new perspective

To avoid these traps, it is useful to take a fresh perspective on the business. You need to look at the wider picture, including such things as the 'PEST factors (political, economic, social and technical); the actions of your competitors, the efficiency of your systems and cost management; and the factors that drive growth in your business.

A good external adviser can often help in achieving this perspective. They can do this not just by coming up with imaginative ideas for growth and strategy, but also by facilitating discussions, by helping you to evaluate options, and by asking you searching questions about your business, which stimulate creative thinking and help you find your own solutions.

Practical measures

Above all, strategic planning must result in practical measures which ultimately benefit your bottom line.

Strategies should be broken down into step-by-step processes, deadlines and responsibilities decided, and project management guidelines put in place so that ideas can be implemented. Measures that will enable you to track success should also be established.

As your accountants, we can help you with much more than just your tax returns. We can assist in many of the areas that will enable your business to achieve long-term financial success. These include such things as preparing cash flow forecasts and business plans, minimising your tax burden and helping you to maximise the opportunities for raising finance.

If you are in the Chichester & Brighton area and are looking for help and support from experienced accountants and business advisers, contact Blue Spire.


Newswire

Why not register to receive our Monthly Newswire? Once a month we'll send you an email packed full of essential business news and handy tax tips to help save you money.

Sign up today ยป


Quick Links

Home | Contact us | Accessibility | Disclaimer | Help | Site map |

© 2018 Blue Spire Limited. All rights reserved.

We use cookies on this website, you can find more information about cookies here.

Contact Chichester Office

Tel: +44 (0)1243 781234
Fax: +44 (0)1243 791770
Email: chichester@bluespiregroup.com


Contact Brighton Office

Tel: +44 (0)1273 739533
Fax: +44 (0)1273 732844
Email: brighton@bluespiregroup.com

Chichester Address
Cawley Priory, South Pallant, Chichester, West Sussex PO19 1SY

Brighton Address
5th Floor Intergen House, 65-67 Western Road, Hove, East Sussex BN3 2JQ

Blue Spire Limited is Registered to carry out audit work in the UK and Ireland and regulated for a range of investment business activities by the Institute of Chartered Accountants in England and Wales C004152645. Professional indemnity insurance is provided by Royal & Sun Alliance Insurance Plc 9th Floor, One Plantation Place, 30 Fenchurch Street, London, EC3M 3BD and its territorial coverage is worldwide (excluding United States/Canada).
Blue Spire Financial Planning Limited is authorised and regulated by the Financial Conduct Authority. FSA register https://www.fca.org.uk/register reference 566257. This guidance and/or advice contained within this website is subject to the UK regulatory regime, and is therefore targeted at customers based in the UK