Build on core of your business, find opportunity for growth

Last summer, I took my own advice. With my employees, we developed a comprehensive plan. Having made the decision to grow the business, we had to be perfectly clear about what was at its heart, or core.

Rhonda Abrams -Arizona Republic

Like many entrepreneurs, I had started out with one kind of business, but in response to customer requests or attractive one-time situations, my business changed. Yes, I had been successful, but to take my business to a higher level, we needed planned – not opportunistic – growth. That meant developing a business plan.

You can’t figure out where you’re going unless you know from where you’re starting. In a series of meetings, my employees and I set about defining our core. Results?

• Greater focus. By identifying our core products and core customers, we realized we needed a stronger emphasis on what our customers depended on us for: products to help serious entrepreneurs develop successful plans.

• New products. We realized our customers wanted and needed additional tools for business plans. So we’ve introduced electronic templates to make it easier digitally to create and revise financial statements and documents.

• Specific target milestones. We gave ourselves tangible objectives so we could measure our progress. This would enable us to gauge how well our decisions worked.

• New name. We felt we needed a name that better reflected our new, stronger emphasis on business plan products for serious entrepreneurs. My company has a new name – The Planning Shop – and a new Web site, http://www.PlanningShop.com.

If you’re considering growing your business, begin by defining the heart of your enterprise. As you answer the question, "What’s at the core of my business?" examine:

• Core competency. At what do you excel? What do you do better than your competitors? You’re most likely going to build your business plan around your core competency. You’re most likely to succeed at that which you do best.

• Core product, service. What’s your best-selling product or service? That’s where you get the lifeblood of any company: cash flow. Moreover, it’s what the majority of your customers associate you with and is likely to be the anchor for your business growth. Of course, if your core product or service is facing increasing competition or other significant changes that negatively may affect your future income, it’s time consciously to develop a new core offering.

• Core profit center. While your core products or services may bring you the most cash, they may not necessarily bring you the most profit. Sometimes, the one or two offerings with high-profit margins carry the rest. When planning the direction of growth, you want to make certain you include your most profitable areas.

• Core market(s). What kind of customer(s) do you truly depend on? Are you doing enough to serve them? Perhaps you need to beef up your offerings for that customer group. On the other hand, are you overly dependent on one or two customers? What happens to you if something happens to them?

• Core values. Every business is shaped by the values and ideals of its leadership. Do you have a commitment to quality, to social or environmental responsibility, to maintaining a certain type of workplace? Values must be considered as you map your future.

• Core goals. What do you hope is in your future – and the future of your company? Are you clear about how much you want to grow your business? Do you just daydream about your long-term prospects or do you have a realistic exit plan?

I’m delighted to say that one year after our business plan process, we’ve reached nearly all the goals. We know what’s at our core and where we want to go. A year has passed, and we’re now about to sit down and, building on the core of our business, develop a business plan for the coming year.

Rhonda Abrams is the author of "The Successful Business Plan: Secrets & Strategies." To get free business tips, register at http://www.RhondaOnline.com, or write to her at 555 Bryant St., No. 180, Palo Alto, CA 94301.

http://www.azcentral.com/arizonarepublic/business/articles/0804abrams04.html