8( a ) Business Development Training: Strategic Planning

© Copyright 2013-14. Stover & Associates, Inc. All Rights Reserved. Used with permission This activity is funded by the U. S. Small Business Administration (SBA) under contract number SBAHQ-13-C-0021.

SBA’s funding is not an endorsement of the contractor or any products, opinions or services. All SBA programs are extended to the public on a non-discriminatory basis.Reasonable arrangement for persons with disabilities will be made if requested at least two weeks in advance.

1

8(a) BUSINESS DEVELOPMENT TRAINING: STRATEGIC PLANNING

THE SMALL BUSINESS ADMINISTRATION’S OFFICE OF NATIVE AMERICAN AFFAIRS



2

OUR MISSION

ONAA Mission: The Office of Native American Affairs (ONAA) mission is to ensure that American Indians, Native Alaskans and Native Hawaiians seeking to create, develop and expand small businesses have full access to the necessary business development and expansion tools available through the Agency's entrepreneurial development, lending and procurement programs. www.sba.gov/naa

http://www.sba.gov/naa



3

OUR MISSION CNTS Mission: The mission of Cherokee Nation Technology

Solutions (CNTS) under this contract is to provide training services to Tribal Corporations, Alaska Native Corporations, and Native Hawaiian organizations in the developmental and transitional stage of the 8(a) Business Development Program. CNTS is a Native American operated technical assistance firm that helps transform and build strong tribal nations, enterprises and organizations.

Through CNTS’s experience, we will provide advice, resources, and practical tools to help your

organization meet the challenges facing tribal communities today.



4

SBA 8(A) PROGRAM MISSION

Provide a logical, systematic approach to Federal market access and enterprise growth to 8(a) businesses

Assists firms by facilitating the award of sole-source and limited-competition contracts

“Participation by Native Businesses in the 8(a) program has helped Native communities develop their own business tools and become active participants in the U.S. economy – across all states.”

- Native 8(a) Works



5

SESSION OVERVIEW

Purpose: To assist entity-owned businesses in Native American communities throughout the United States to understand federal government contracting programs and plan to seek opportunities that will lead to contract awards.

Focus: Understanding of how the planning provides a roadmap to success for selling to the government through the 8(a) program.

Objective: Have a general understanding of federal contracting, markets and how to strategically pursue 8(a) and non-8(a) contracting opportunities.



AGENDA

Strategic Plan purpose, and where it fits in your business processes

Steps in the strategic planning process

Benefits associated with strategic plan

Tips for better strategic planning

Strategic planning pitfalls

Strategic plan versus the business plan or long-range planning

Setting and mapping goals

Wrap up

6



DO THESE DESCRIBE YOU?

We don’t know where to begin. If you don’t know where to begin, you don’t know how to get started. Strategic planning helps define your objectives and criteria for success and provides a roadmap for actions and activities.

We bid on anything. If you are bidding anything, it’s because there is nothing telling you not to. Without specific criteria that are used like a filter, companies are usually incentivized to bid everything they find.

We’ve used up resources chasing leads. If you don’t strategically apply a filter to what you bid, then it’s easy to wake up and realize you have no budget left to pursue more leads, because you wasted it all chasing low-hanging fruit. Now you have no wins, and no budget to go after better leads.

We occasionally get lucky. Sometimes an opportunistic company shows up when a customer is ready for a change and gets lucky. They win just enough business to get by and reinforce their bad habits. But they don’t prosper and they don’t have the strength to weather a bad business cycle.



WHY DO I NEED TO DEVELOP A STRATEGIC PLAN?

The Small Business Act, 15 U.S.C. Sec. 644(a) requires that a fair proportion of Government contracts in each industry category be placed with small business concerns.

Government policy provides ‘maximum practicable’ opportunities to small firms as prime and sub contractors

There is more than $700B available to federal contractors.

The result?

More opportunity than you know what to do with!

8



9

WHY DO I NEED TO DEVELOP A STRATEGIC PLAN?

Non-8(a) Business Activity/Competitive Business Mix Targets in the out-years of the program can be met and maintained through proper strategic planningParticipant's Year in

the Transitional StageNon-8(a) business activity targets

1 (Program year 5) 15%







STRATEGIC PLANNING GETS RESULTS!Ficticious Construction Company, LLC NAICS Code: 238140 Masony Contractors Size Standard $15M8(a) Awarded 3/15/11 8(a) Graduation 3/15/20

Contract Type Award Date End Date Avg. Annual Revenue 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 20218(a) 1/1/2012 12/31/2017 $500,000.00 $500,000.00 $500,000.00 $500,000.00 $500,000.00 $500,000.00 $500,000.008(a) 8/6/2014 8/7/2018 $2,500,000.00 $2,500,000.00 $2,500,000.00 $2,500,000.00 $2,500,000.00 $2,500,000.008(a) Target 6/5/2015 6/1/2020 $4,000,000.00 $4,000,000.00 $4,000,000.00 $4,000,000.00 $4,000,000.00 $4,000,000.00 $4,000,000.008(a) Target 4/8/2019 4/6/2022 $3,700,000.00 $3,700,000.00 $3,700,000.00 $3,700,000.00

TOTALS $500,000.00 $500,000.00 $3,000,000.00 $7,000,000.00 $7,000,000.00 $7,000,000.00 $6,500,000.00 $7,700,000.00 $7,700,000.00 $3,700,000.00

Contract Type Award Date End Date Avg. Annual Revenue 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021non 8a 3/7/2008 3/6/2012 $89,000.00 $89,000.00 $89,000.00non 8a 1/1/2009 12/31/2013 $1,200,000.00 $1,200,000.00 $1,200,000.00 $1,200,000.00non 8a 2/14/2010 2/13/2015 $650,000.00 $650,000.00 $650,000.00 $650,000.00 $650,000.00non 8a 10/1/2013 9/30/2016 $75,000.00 $75,000.00 $75,000.00 $75,000.00 $75,000.00non 8a Target 9/30/2014 9/29/2019 $1,200,000.00 $1,200,000.00 $1,200,000.00 $1,200,000.00 $1,200,000.00 $1,200,000.00 $1,200,000.00non 8a Target 6/7/2017 6/6/2021 $2,500,000.00 $2,500,000.00 $2,500,000.00 $2,500,000.00 $2,500,000.00 $2,500,000.00non 8a Target 8/31/2018 8/30/2022 $5,000,000.00 $5,000,000.00 $5,000,000.00 $5,000,000.00 $5,000,000.00

TOTALS $1,289,000.00 $1,939,000.00 $1,925,000.00 $1,925,000.00 $1,925,000.00 $1,275,000.00 $3,700,000.00 $8,700,000.00 $8,700,000.00 $7,500,000.00 $7,500,000.00

$1,289,000.00 $2,439,000.00 $2,425,000.00 $4,925,000.00 $8,925,000.00 $8,275,000.00 $10,700,000.00 $15,200,000.00 $16,400,000.00 $15,200,000.00 $11,200,000.00$0.00 $500,000.00 $500,000.00 $3,000,000.00 $7,000,000.00 $7,000,000.00 $7,000,000.00 $6,500,000.00 $7,700,000.00 $7,700,000.00 $3,700,000.00

$1,289,000.00 $1,939,000.00 $1,925,000.00 $1,925,000.00 $1,925,000.00 $1,275,000.00 $3,700,000.00 $8,700,000.00 $8,700,000.00 $7,500,000.00 $7,500,000.00

0.00% 20.50% 20.62% 60.91% 78.43% 84.59% 65.42% 42.76% 46.95% 50.66% 33.04%100.00% 79.50% 79.38% 39.09% 21.57% 15.41% 34.58% 57.24% 53.05% 49.34% 66.96%

15% 25% 35% 45% 55%

Size Standard $1,289,000.00 $1,864,000.00 $2,051,000.00 $3,263,000.00 $5,425,000.00 $7,375,000.00 $9,300,000.00 $11,391,666.67 $14,100,000.00 $15,600,000.00 $14,266,666.67

Graduate

TOTAL 8(a) revenue

Non 8(a) revenue

8(a) % of RevenueNon 8(a) % of Revenue

NON 8(a) Target per SBA

Development Phase Transition Phase



OBJECTIVES

Be able to explain the strategic planning process steps and the advantages of strategic planning to the small business owner

Be able to understand where strategic planning fits in the business process cycle

To understand the importance of strategic planning

Comprehend strategic planning benefits and pitfalls

Understand the difference between strategic planning and business planning, and long-range planning

11



WHY A STRATEGIC PLAN?

Your Vision Why my company exists; it’s purpose

Define your Purpose

Define your Mission

Define Core Values

Identify three to five strategies that are borne out of your greatest strengths, all highly focused on achieving your Mission.

“Strategy Planning Methodology” breaks down your current Mission into the annual and quarterly priorities you need to complete in order to achieve your Mission

12



WHERE STRATEGIC PLANNING FITS

13

Source: willswann.com



PLANNING STEPS

Identify core values and culture.

Craft vision and/or mission statements.

S.W.O.T.

Evaluate internal and external influences.

Design Initiatives and Goals to achieve improvement and desired results.

Engage and deputize all involved.

Celebrate and revise14



BENEFITS

Clearly defines the purpose of an organization or individual.

Establishes realistic goals and objectives.

Communicates to all affected.

Gains buy-in and ownership.

Blueprints the use of resources.

Creates measurement and evaluation.

Focuses efforts and results.15



STRATEGIC PLANNING FRAMEWORK

Where are we now? Review your current strategic position and clarify your

mission, vision, and values.

Where are we going? Establish your competitive advantage and your vision.

Clearly see the direction your organization is headed.

How will we get there? Lay out the road to connect where you are now to where

you’re going. Set your strategic objectives, goals, and action items and how you’ll execute your plan.

16



THE FRAMEWORK

Strategic planning involves vision, mission and outside-of-the-box thinking

Strategic planning involves "feel" just as much as it depends on management science

Since it depends on creativity and outside-the-box thinking, there is no perfect way to design a winning strategic plan

The more you understand your company, your industry, and your corporate "wish list," the better a winning strategic plan you'll create.

17



TIPS FOR BETTER STRATEGIC PLANNING

Pull together a diverse, yet appropriate group of people to make up your planning team.

Allow time for big-picture, strategic thinkingGet full commitment from key people in your

organizationAllow for open and free discussion regardless of each

person’s position within the organizationThink about execution before you startUse a facilitator, if your budget allows

18



TIPS FOR BETTER STRATEGIC PLANNING (CONT.)

A SWOT -- strengths, weaknesses, opportunities, and threats -- analysis is a wonderful way to prepare for developing a strategic plan

Make your plan actionable

Don’t write your plan in stone

Clearly articulate next steps after every session

Make strategy a habit, not just a retreat

Check out examples online19



STRATEGIC PLANNING PITFALLS

Relying on bad info or no info

Ignoring what your planning process reveals

Being unrealistic about your ability to plan

Planning for planning’s sake

Not having your house in order first

Copying and pasting

Ignoring your culture and organizational readiness

20



STRATEGIC ISSUES

Typical strategic issues include answers to the following questions: How will we grow, stabilize, or retrench in order to sustain our

organization into the future?

How will we diversify our revenue to reduce our dependence on a major customer?

What must we do to improve our cost structure and stay competitive?

What is our new value proposition given that our customers are buying substitute products and we have new competitors?

How and where must we innovate our products and services?

21



WHY IS A STRATEGIC PLAN IMPORTANT?

There is a clear vision and direction

Helps build your competitive advantage

Communicates your strategy to staff - Everyone understands the direction and is “on the same page.”

Prioritizes your financial needs

Provides focus and direction to move from plan to action

Hardest part - start the process and follow-through

22



STRATEGIC PLAN VERSUSBUSINESS PLAN

A business plan Is a planning tool

Helps define the purpose of your business

Helps plan human resources and operational needs

Is critical if you’re seeking funding

Assesses business opportunities

Provides structure to ideas

23



STRATEGIC PLANNING VERSUS LONG-RANGE PLANNING

A matter of emphasisLong range planning:

A major assumption in long-range planning is that current knowledge about future conditions is sufficiently reliable to enable the development of these plans

Emphasis is on the articulation of internally focused plans to accomplish agreed-on goals

24



STRATEGIC PLANNING VERSUS LONG-RANGE PLANNING

Strategic Planning: A major assumption in strategic planning is that an

organization must be responsive to a dynamic, changing environment

Emphasis is on understanding how the environment is changing — and will change — and on developing organizational decisions that are responsive to these changes

25



GOAL SETTING

Use the S.M.A.R.T. goal setting strategy to determine if your goal is Specific, Measurable, Attainable, Realistic, and Time -Bound

26



MAP YOUR GOALS: STRATEGIC PLANNING MODEL

Where are you now?Example: I help friends plan parties but

I want to formalize my services for extra income.

What is your S.M.A.R.T Goal?Example: I will launch the business and

have 2 events lined up by June.

How will you get where you want to be? What is your strategy?

Example: I will launch a part-time home-based event planning service.

What steps must you take?

Example: Action1: Refine offerings and

consolidate contacts for other referrals.


Example: Action 2:Create a compelling

value proposition.


Example: Action 3: Collect testimonials and

references from past clients.


Example: Action 4: Create marketing

materials and communicate my services via my

personal network.

Source: STRATEGIC PLANNING FOR SMALL BUSINESS, empowerment group



THE ONE-PAGE PLAN2014 Strategic Plan

Purpose: To be recognized as the absolute best pressure regulation supplier to the process control industry

2014 Focus = GROWING SALES REVENUES

KEY OBJECTIVES

Market Development Process Improvement People Development Product Development

INITIATIVES

• Expand regulator market reach

• Increase customer visits by engineers

• Review distribution strategy

• Implement lean process

• Develop/implement supply chain strategy

• Implement personnel planning

• Improve communication

• Increase teamwork

• Increase quick-change regulator line

• Expand range of QPRO line

KEY PERFORMANCE INDICATORS

• Revenue/Distributor

• Revenue/Month

• Cash-to-Cash days• First-time through

%/month

• % Turnover/Month• % Absenteeism/

Month

• New Product Revenue/Month

28Source: Strategic Planning for Your Small Business in Eight Simple Steps, Gregg Stocker of The Praecedo Group



WHEN TO CHANGE THE STRATEGIC PLAN

In mature markets, a strategic plan can be valid for a long time

In more dynamic markets, which is the case for many small businesses, a strategic plan's shelf life is usually a lot shorter

Several warning signs that potentially spell the need to change one's strategic plan Declining sales from a small business' core customers

A change in market position by competitors

Entry of new competitors

Evolution of the market

29



STRATEGIC THINKING VERSUSSTRATEGIC PLANNING

Counter-argument: Strategic Planning is appropriate for large businesses only

Small businesses: Don’t have the time or the resources to invest in days of planning

Can’t justify the expense in personnel and time away from normal and more productive duties

See it as only a small payoff

Require continual strategy adjustments; strategies are short-lived due to factors beyond their control.

Small businesses win because they are nimble, quick to seize unexpected opportunities than their larger competitors. Long term planning can slow them down…..

30



STRATEGIC MESSAGE

“If you don’t know where you are going, that’s probably where you’ll wind up, no

where.”

31



LINKS

http://mystrategicplan.com/examples/

GSA Vendor Support Center- www.vsc.gsa.gov

Small Business Administration (SBA) http://sba.gov

32

http://www.vsc.gsa.gov/



FOR MORE INFORMATION

For more information or to register for additional webinars please visit:

www.Native8aTraining.com

If you have questions or would like to receive a copy of this webinar presentation and/or recording:

[email protected]

410-350-4903

http://www.native8atraining.com/

mailto:[email protected]

Documents

8( a ) Business Development Training: Strategic Planning