September 17, 2007 | Category: Management | Tags: Startup Advice

Running your business involves different types of planning. The Biz Class mentioned that every growing business encounters 4 types of plans. A bigger question now is HOW do you plan the future of your business? Let me introduce to you the business concept called Gap Analysis.

Don’t be intimidated by this seemingly corporate jargon. In basic terms, it is a comparison of your actual performance versus your goals. It works like your actual-versus-forecast analysis. What you will find after using this tool are your weaknesses and areas for improvement. All you need to do is answer these 3 simple questions below:

1. Where are you now?
2. Where do you want to go?
3. How do you get there?

Looks simple, right? You might be surprised how much insight you can generate by asking these 3 easy questions. Once you get the answers, you should translate these questions to a strategic planning tool called OGSM:

Objectives or what do you want to accomplish or where do you want to go.
Goals are the specific results to meet your objectives.
Strategies are key steps to achieve your goals.
Measures are important to know if your strategies are effective.

Hey, it’s not yet the end of the process. What’s missing? You haven’t looked at the market yet! Try asking yourself this one question:

• How will competitors react to your strategies?

It’s very difficult because you don’t know what the other players are thinking. Try running different scenarios and come up with contingency plans for every reaction.

What you have at the end of the day is a well-formulated plan that will guide you in the years to come.