A business plan is a document that shows the objectives, sales and marketing strategies, and financial predictions of a business. It is an important document to all businesses, big or small, that aspire to grow and succeed. This document can be classified as short-term or mid-term depending on the term of operations. Business plan strategies are different from strategic planning which is required long-term.
Business plan strategies assist a business to:
Identify challenges facing the business
Acquire financial assistance
Gauge the progress
Set current and future goals
Make clear the business ideas
There are different business plan strategies that a company can embrace. In this article we shall describe four most common strategies.
Price control strategy
This plan is employed mainly by large, well established companies that have control of the market trends in their niche, geographical location, or a particular product or service.
The company establishes their specific prices that affect other similar enterprises putting them in control of the market. Very often, they lower their prices for commodities or services to make their competitors do the same. As such, they can raise or lower prices to their advantage.
Business variation strategy
This strategy involves a company offering different services or goods to consumers compared to the competitors. In other words, the company will conduct a secret study of goods and services traded by the competing industries in the UK. Then, it will modify the products or produce completely different ones giving them an edge over their counterparts. As a result, they maintain their profits and stability as well.
Due to the proliferation of industries producing multiple products in the UK, it is necessary for a trade enterprise to specialise in a particular product. You can also specialise in a segment of a production line. For instance, Land Rover only manufactures that specific model of all the cars produced and imported into the UK. This gives them full control of all dynamics regarding Land Rover.
Also, a company can target a specific group of buyers,for instance, Athletes, making it easier to have control over what they produce and the pricing.
The Tax laws in the UK are quite strict and enforced by a non-relenting tax collection authority. This means that small and large business enterprises have to be conversant with the operations of the tax authority to come up with a concrete business plan strategies.
There are tax laws for small businesses and for large companies. The taxes also depend on the type of industry. It can be a processing industry, manufacturing company, assembling company, or a service industry. It is imperative that business entities understand how their companies are affected by different taxes to come up with sound tax plan strategies.
The planners should consult with the UK Tax law body to get relevant information before jotting down any strategies.
These are not the only strategies involved in business planning. There are more that are important to explore as your company strategises competition with your competitors. These include business exit, intelligence, continuity, and succession planning strategies.