Business Edge
How to write a business roadmap
By Jeff Tobe

Welcome to the inaugural Business Edge column. In this ongoing series, Eyecare Business will feature a variety of bottom-line topics in the areas of finance, marketing, human resources, operations, and law. All will be written by speakers in the new Business Edge conferences and online forums, which are sponsored by International Vision Expo and held in conjunction with Vision Expo East and West.

This month's topic is one I addressed at Vision Expo East: How to write a business plan. Or, rather, what I call a business roadmap. The fact is that you don't really need a business plan. But you DO need a roadmap to at least keep you on the route to success.

TRIP-TIK FOR BUSINESS

With all respect to the American Automobile Association, I like to think of this roadmap as a type of Trip-Tik^® for your business. It is just a suggestion of a way to get from where you are to where you want to go, and it takes into account all of the perceived roadblocks and obstacles. Notice I said perceived? Until you encounter them, even AAA can't predict exactly what is going to happen on your trip.

After consulting with hundreds of businesses, I have found that this roadmap is one of the most dreaded pieces to the business puzzle. Many entrepreneurs and business professionals have even expressed fear that if they write it down and don't achieve it, they will be perceived as having failed. Not true! This roadmap is a living, breathing document and, not unlike AAA's Trip-Tik, you can reach your ultimate goal by taking another route or a different direction.

There are many reasons to have this document written and accessible to everyone in the organization.

1. Planning/foresight can help eliminate problems we face daily.

2. If you don't set goals and try to reach them, it's guaranteed that you'll stay where you are today.

3. It may help you determine where the company NEEDS to go versus where you have thought it SHOULD go.

4. Because company-wide goal setting is an essential part of this roadmap, it gets everyone working toward a common vision.

5. It forewarns of possible roadblocks.

6. It helps you to formulate responses to possible contingencies.

MAKE IT S.M.A.R.T.

The first step is to establish company-wide goals. Make this fun and as interactive as possible. Make sure your whole staff is involved, and don't discount any ideas. At this point, you are describing desired results, not the details of how to achieve those results. One warning, however: Be aware of the "credibility gap." This occurs when you have a goal, but no starting point or practical means to achieve it.

To get over a any credibility gaps in your organization, weigh your goal against the measurement acronym, S.M.A.R.T. Ask yourself whether each goal is Specific, Measurable, Attainable, Realistic, and Time sensitive.

Every business goal has to fit all of these criteria or it should be abandoned. For example, if my goal is to increase my margins by year-end to 60 percent when they are currently at 30 percent, I could use the barometer of S.M.A.R.T. The goal is specific, 30 percent to 60 percent; and it is measurable--I can tell if we hit the goal by checking our average margins. The goal is attainable (although we may have to take some drastic measures to do this), BUT it is probably not realistic. The goal should be abandoned. Move on to the next one.

NINE STEPS TO FOLLOW

Once you have common goals established, it is time to start to consider how you get to your destination. Here are nine areas on which to focus:

Summary. We are going to start with the summary. This involves looking at the big picture to see if you are still going along the same road you were or if you've taken a detour. Several questions need to be answered. "What was and is our business concept?" "Where are we today?" "What are the five or six key success factors for us to achieve our goals?" "What is our financial status now?"

Vision and mission statement. If you don't know where you are going and if everyone doesn't buy into how to get there, then there is no reason for a map.

Market analysis. Know your market! This includes, but is not limited to, changes in the market, market segments, your target customer, that customer's characteristics and needs, and most important, what influences your customer's buying decision.

Competitive analysis. This is more of an industry overview. Consider your competition and compare who it was when you started, who it is now, and who it will be. Then take a look at changes and trends in the industry and who is most likely to jump on these first. And, finally, ask: "What products/services are going to set us apart, and what threats and/or risks are involved in considering them?"

Strategy. Understand your core strengths and weakness and develop a strategy around that. You must also have some kind of an implementation plan to play on your strengths in the future.

Products/services. All you need here is a basic description of your products and services, but look at it from three perspectives. First, what did you offer when you first started? Second, what do you offer today? And, third, what will you offer in the future? This begins to position your products/services.

Marketing and sales. This lays out your sales tactics, advertising plans, the promotions in which you wish to participate (including incentive programs for your staff), a publicity plan, and trade show strategy.

Operations. This is one of the most crucial pieces of the roadmap because when it comes to human resources, there is nothing else that can make or break a business more easily. List your key personnel and your organizational structure. Even in a small business, do this and write the details of each person's position.

Create the financials: You can't expect to travel from point A to point B without spending some money. It is at this point that you need to make sure you have a sound budget. This will include your balance sheet, profit and loss projections, cash flow projections, and an analysis on future business.

By following these guidelines, you can begin developing your roadmap. For more planning help, visit the Center for Entrepreneurial Excellence (CEE) at www.ceebic.org. Just remember: It is not the destination that is all-important in your roadmap, it is the places you visit along the way!

Jeff Tobe CSP is the author of Coloring Outside The Lines: Business Thoughts on Creativity, Marketing and Sales. For information about his books and presentations, or for free business newsletters, visit his Website: www.jefftobe.com.