The COVID-19 pandemic has left a trail of economic disaster and affected humanity like never before. Knowing the effect of the pandemic, you can plan the future of your business through your business plan.
Exactly two years before the outbreak of COVID-19, the FSCA published Board Notice 194 of 2017. Chapter 5 Section 37(2)(a) stipulated that each FSP must have a business plan. It stated further that this plan must be updated regularly so that it remains relevant.
How have your preparations, plans and strategies supported your business to date? After all, there is no better time than a crisis to have the foundation and principles of any business tested.
Considering that similar events could take place again, how will you adapt your business to remain relevant, profitable and successful? The best way to map out the future for your business is with a business plan.
Key advantages of a business plan
Having a business plan enables you to plan, articulate or revise the purpose of your business. It includes both the measurable and intangible aspects of your business, with a short-, medium- and long-term view. All these need to be linked to detailed action plans. You can express measurable aspects in monetary terms and percentages, such as income, expenses and client growth. Intangible aspects could include service, quality of staff and risk management.
A business plan also allows you to assess risk and reward through a structured planning method like a SWOT analysis. This is a useful technique to understand the strengths and weaknesses in your business. It also helps you to identify the opportunities open to you, as well as external threats.
This exercise will enable you to better understand your business and the environment in which you operate. Considering the impact of the pandemic and the way forward, this is especially important.
Your SWOT analysis would specifically speak to how your business views and deals with internal and external risks. These include managing financial risks in a negative economy, competition, succession and the competitive advantage of your value proposition.
A business plan also allows you to plan, create, draft and implement policies and processes. Specifically, you can create a culture or incorporate the concepts of treating customers fairly (TCF). This can support and underpin your business approach to retaining clients and income, and delivering service excellence by understanding each client’s needs.
Tips for drafting your business plan
When drafting your business plan, be realistic and detailed. Have your clients in mind. The culture of TCF and all the TCF principles should be at the core of the planning process. This not only ensures an effective business outcome, but also addresses the requirements of current and proposed legislation like Conduct of Business.
It’s important to involve all role players in developing your business plan, including sales staff, administrative staff and any managers. You could also consult external stakeholders like accountants, product providers and their consultants, compliance officers, office automation consultants, communications suppliers and IT support providers. These parties all contribute by effectively executing various aspects of your business plan.
Also set regular time aside to work ON your business and not just IN your business. To review the strategic aspect of your business, you’ll need to review the content of your business plan and the success of its deployment.
Plans for a virtual business environment
It is also prudent to have a strategic plan for a virtual business environment. It needs to address the scenario of staff working from home, with access to computers, internet connectivity, telephones and virtual meeting facilities. All staff members should also be able to remotely access client and business data.
Consider how you will educate and enable clients to deal with your business remotely. You’ll also need to review your legislative and operational policies and procedures to ensure they relate to your business, the industry and the economy.
A business plan is ultimately a blueprint of what you would like your practice to look and feel like. It should state what you intend to offer clients and identify the key deliverable areas to run an efficient practice. It should also actively drive outcomes through well-documented action plans and keep TCF at its core. By updating your business plan, taking into account the new operational environment, you have every opportunity to steer your business into a sustainable future.
Masthead offers Business Planning webinars, which can assist you to draw up a business plan to suit your business.
We also offer an implementation package, which can assist you in a more practical manner to draft and personalise your business plan for your business. Contact us to find out more.