Today in Part 8 of Becoming Financially Well Organised, we’re discussing driver 1 of your business plan and providing you with your own Business Plan Checklist.
Driver 1: Business Context
Context gives meaning to the content.
Your business will make sense if you make sure you are clear on why your business exists, its contribution to the community and society, the important role it plays, and the solutions and opportunities it provides to people.
Some famous corporate contexts are:
- “To make people happy”, Walt Disney (Disneyland).
- “To solve unsolved problems innovatively”, 3M (Post-it Notes).
- “To bring inspiration and innovation to every athlete in the world”, Nike (Sports Shoes).
When you think of these companies and the products they produce, they just make sense.
It’s because we understand why these businesses exist, what they stand for, and the contribution they make. We understand their context.
Some businesses focus on a Mission Statement, or a Vision Statement, but most people confuse this with what they want to achieve, not why their business exists.
So, how do you develop your business context? Firstly, you need to understand what CONTEXT is. Start with this exercise:
Write down a word to describe “blue”
Your answer may have been: colour, sky, sad, depressed, aqua, light, extent to which a steak has been cooked…
Each person will have a different answer to this question, dependent on your own experiences and interpretation. In every respect your answer will be correct, but does it describe the word blue in the way you were asked to describe it? Were you clear on the context? Did you have to stop and think, “I wonder what you mean by blue?”
Because the context was vague and broad, the meaning of the content became difficult to understand.
So, let’s try it again: write down a word that describes “the name of a colour of blue”
Aqua, navy, sky, light, royal…
This time it was much easier to understand what was being asked. The context was clear and descriptive, and therefore the content made sense.
Your business should be exactly the same. If you are clear on the context of your business and can articulate what this context is, your business will make sense to those involved; your clients, suppliers and the public.
Complete this statement: the purpose of my business is to…….
If you understand why your business exists, its contribution to the community and society, the important role it plays, the solutions and opportunities it provides to people, then your business will truly make sense.
Business Plan checklist:
- Business owners who are Financially Well Organisedä, view the asset value of their business as an integral part of their wealth accumulation.
- The 5 Drivers of Business Success are: Business Context, Organisational Responsibility, Financial Management Systems, Revenue Strategy, and Leadership.
- Business context provides meaning so those involved in your business – clients, suppliers and the public – will clearly understand its purpose.