Business Plan Tips : Business Situation Analysis

The key to any business succesfull plan is the situation analysis. It doesn't sound very sexy, but think of it as wearing a "you were here" sign, this where you start. If you don't do the situation analysis effectively, there is no way you can come up with effective strategy. And in fact this is the most neglected part. We don't do our homework before we get started. The good news is that the homework is not hard. It has four basic parts.

The first is, the background. Look at where we came from so that we get perspective on where we're going. Looking at where we've been, would give us a better perspective on where we're going and help us to avoid mistakes in the future.

The second part is mission. Understanding who we are, what we do and who do we serve.

Internal analysis is a review in detail of our internal assets and this isn't just physical assets. In includes ladership, marketing, finance, operation, HR, how do these functions and how well they serve strategy.

The last part is external analysis. Understanding industry attractiveness and what is going to take to be successfull. Peter Druckner refers to the meaningfull outside and that's important for that in order for a company to do well, it must understand the outside first. According to Druckner, this is the no. 1 job of the CEO, in fact, the only cost.


Source: YouTube