If you’re setting up a business, you don’t want to be a flash in the pan. You want to build a lasting brand that will make an impact in your market, and bring you personal and financial success. This means that it’s important to future-proof your business. You need to think about more than the here and now, and direct your attention to the opportunities and obstacles you may come across next quarter, next year, and even further in the future. Writing your business plan gives you the chance to prepare for the future so that you can plan to still be in business in five, ten, or twenty years’ time.
If you are looking for funding, planning for the future could help you to impress investors or lenders – this is good business sense and shows that you are serious about your ideas. But when you don’t have a crystal ball to hand, how do you go about future proofing your business? Here are a few ideas:
1. Increase your revenue streams
Why is this important?
You know the phrase “don’t put your eggs in one basket”, and this is true for your business. While you should focus on your core competencies, depending on one part of your business may not be the best way to guarantee your future success. Diversify your offering to tap into new markets or different customer needs – if it aligns with your brand, your business goals and your skills, it may just be the product or service you need to take your business into the future. And if one of your products falls out of favour, you will have others to fall back on.
How can you incorporate this into your business plan?
In your business plan you should explain what you are currently offering, but you could also mention products or services that you are considering launching in the future and show how they align with your business goals.
2. Stay connected with your customers
Why is this important?
What your customers want now might not be what they want in a year’s time. Businesses can fail when they are no longer in touch with their customers’ needs, and if you don’t continue to fulfil those needs your customers will look elsewhere.
How can you incorporate this into your business plan?
Find out who your customers are and research what they want, with a view to go back to your findings and reassess them at a later date. Observe their behaviour and look at their buying patterns. Do your customers still want what you’re providing, and what do you need to do in order to change for the better? Update your business plan to reflect your findings and any new goals you need to put in place. Plan how you are going to keep in touch with your customers so that they are always providing you with information that helps you to give them value.
3. Anticipate customers’ needs
Why is this important?
Customers don’t always know what they are going to want, so you need to anticipate their future needs by identifying their problems and finding innovative new ways to solve them.
How can you incorporate this into your business plan?
To anticipate customers’ needs, you need to research. What is going on in the market, in your area, or in the wider world? How are you going to keep tabs on this information and use it to continually improve your offering and meet your customers’ needs? Add this into your business plan.
4. Ramp up your security
Why is this important?
Security is a concern for any business, whether you are a bricks and mortar shop, or running an ecommerce website. Cybercrime is on the rise and you need to be aware of the latest threats, as well as the technology that can safeguard you from them. Equally, if you have a physical presence you may need security cameras to keep your shop, yourself, and your staff safe.
How can you incorporate this into your business plan?
If you have (or are going to have) a physical store, the SWOT analysis in your business plan is a good place for you to evaluate the local area. What is the neighbourhood like where you will be setting up your business? Is there a high crime rate, or is it very safe? Have there been any reports of theft recently? Once you know the risks you can decide how you are going to mitigate them.
If you operate online you will need to consider the security of your website, and the safety of your customers’ data. You may want to plan how you are going to decide on a secure hosting provider, and what measures you are going to put in place to ensure the ongoing protection of your system, such as researching the issue yourself or asking for outside help.
5. Continue to innovate and improve
Why is this important?
Good businesses don’t stagnate – they move with the times and continue to improve. Not only does this mean they deliver new and exciting products and services, but employees remain motivated and don’t get bored.
How can you incorporate this into your business plan?
Your business plan is a document that you can always refer back to. As such, you should be updating it when necessary, and reviewing whether your current offerings are helping you to meet your goals. Plan a regular review into your business activities so that you are always at the helm, steering your business in the right direction.
A lot of your futureproofing measures can be covered in your SWOT analysis, and you can find out more information about this in our previous blog post. At cbm we are happy to help you write your business plan and lay the foundations for futureproofing your business, whatever stage you are at. Contact us online using the form on the right or call 01604 420 420.