Business planning is necessary for anyone going into any business, be it an electronics engineer or a graphic designer.
Business planning is necessary to get the business off the ground as well as on an ongoing basis to provide focus and direction in the long term.
Many creative and technical firms who start out with a few clients without any real goals except to deliver the goods begin realising the value of a business plan especially when they find limited monetary gain in spite of creative growth.
These companies don’t have much to show in terms of business success in spite of tremendous hard work. Rising competition and expenses make matters worse with the company not really going anywhere in terms of growth.
The problem is, for a business to be successful it cannot stay in the same place. Business plans for design and engineering firms are never static. Business planning allows one to reflect back on the past and make plans for the future.
The planning process is important both in the beginning and middle as it makes one aware of the challenges ahead and also helps find solutions. Business planning allows one to assess the competition and find the key differentiators. Using this information, potential clients can be convinced to come on board.
A key rule is to include one’s team and stakeholders in the process to ensure the team goals and their personal goals are aligned.
Business planning for creative and technical types can be a fun and exciting process of brainstorming. But the real challenge lies in the execution of the business strategies chalked out in the plans, especially those related to financial projections, profit and loss, cash flow statements and promotional plans.
One has to own the business plan and narrow down the objectives to these simple questions:
- Where are we now?
- Where would we like to be one/five/ten years from now?
- How do we get there?
LX Group is an award-winning electronics design company based in Sydney, Australia offering full turnkey design, electronics, hardware, software and firmware design services. LX specialises in embedded systems and wireless technology design.