For most small and medium-sized enterprises (SMEs), governance is something far away. In other words, measures of good governance are not yet part of daily practice. Particularly explosive growth and/or external demands, for example from an external financier, have changed this to date. Especially to make the likelihood and impact of risks manageable. Oddly enough, because fundamentally every entrepreneur wants to be successful and certainly not fail. Thus, corporate governance aimed at SMEs is actually relevant for every entrepreneur: it is about having control over realizing entrepreneurial ambition. And there's quite a lot involved. Therefore, we will be paying ample attention to this unexplored area in the world of the entrepreneur in the coming period.
Today, Route ICR shares the sixth article from the series 'How to practically implement SME governance'.
From Static to Dynamic Business Plan
Amsterdam, September 22, 2021 – Entrepreneurship is simple. But the hardest thing there is, is to undertake simply. But why is that? Let's discuss this in the coming period. And also look at how this problem can be solved. Today, Route ICR shares the sixth article from the series 'How to practically implement SME governance'.
By now, you have a crystal-clear entrepreneurial ambition. Now it's time for your company's business model. Because without a viable business model, targeted entrepreneurship is almost impossible. Your business model and the derived goals from your entrepreneurial ambition together form the necessary input for your dynamic business plan. From ambitious goals, you and your team will work on the dynamic business plan of your company.
Viable Business Model
The business model shows the absolute basis of how your company creates value, delivers value, and retains value. That's why it's so important to make clear which viable business model you will use to realize your entrepreneurial ambition. Start by describing what makes your company stand out in the market: in other words, what is the raison d'être of your company. Through the 9 elements of the Business Model Canvas (BMC), you understand how this works and you can document your business model in a clear way.
Ambitious Goals Challenge You: Think Big
Think big and set ambitious goals. Because they are necessary to improve and to be innovative. These goals may seem unattainable at first glance, but with the right approach, you can make them achievable! Once your goals are set and they are ‘SMART’, you make a plan to achieve these goals. Not a static business plan like, for example, the banks require from you. But a comprehensive and dynamic plan.
Dynamic Business Plan
For those who were still unclear, Covid 19 has once again proven that you must be able to adapt your plan at all times to the world around you. Therefore, in your dynamic business plan, work with small goals for the short term that contribute to the higher goal. This way, the whole is easier to oversee, simpler to adjust, and you see progress. This is motivating for your team, it helps to maintain the right focus, and to make goal-oriented choices. Choose what you do, but also what you specifically do not do. This way, you see that with your business model and dynamic business plan, you are implementing SME governance in practice.