By Lika Ramlal at April 23 2019 14:25:06
Business Plan Analytics Through Key Performance Indicators (KPI's): Identifying key performance indicators for your business to use as benchmarks throughout the year is perhaps the most critical step you can make with regard to business analytics. Not only will KPI's help identify key shortfalls in the plan, but will help narrow your focus in addressing the shortfalls. For instance, recognizing that you have an issue in labor isn't merely enough when you consider the following possibilities: a) labor rates may be too high; b) overtime has exceeded its budget; c) the issue is regionally_based, not across the board; d) man hours may have exceeded its allocated budget, etc. It could be a myriad of triggers that caused labor to exceed its budget and KPI's enable you to drill down to the cause. KPI management requires a disciplined review process established monthly that fosters a blended analysis throughout the year that compares actual results against both budgets and forecasts.
Location: Writing down the location of your business is very important. Locations with greater customer traffic usually cost more to buy or rent, but they require less spending for advertising to attract customers. This is especially true of retail businesses where traffic count and accessibility are critical.
Be Prepared For Risks _ It is a fact of life that any new business or enterprise has a degree of risk attached to it. Therefore it is important for your business plan to analyse and calculate that risk, showing how you will engage with it. There is no business plan out there that is risk_free, but very often where the risk is higher then the rewards will be as well.
Reinforce Your Ideas _ As you slowly get ideas about the catering company that you want to start you will find that these thoughts start floating around in your head. What you imagine yourself doing is often very different from what you are able to do realistically. Nothing is impossible but you just need to work out how to get there. By putting your ideas down on paper you will be clarifying them in your mind. As you write you will find that you do additional brainstorming. You may get new ideas about what you want to do with your business and you may decide that some of the ideas that you had initially are not really feasible.