The word “dynamic” is defined as an Adjective: “(of a process or system) characterized by constant change, activity, or progress: “a dynamic economy”, or as a Noun: “a force that stimulates change or progress within a system or process: “evaluation is part of the basic dynamic of the project.”
In a real sense both definitions could apply to your business. For example, if you are starting a new business or introducing a new product or service you will likely experience “constant change, activity or progress”. As the business or product/service grows and matures the changes, activity or progress of growth will slow down and typically at some point it even will plateau; unless additional stimulus such as a remarketing of the business or product/service takes place.
In either case, a new business or new product/service you may want to implement what I call a dynamic business plan. A dynamic business plan or DBP is a business plan where updating and changing of the plan is built into the plan. When you put together a typical business plan it is not necessarily cast in stone but the goals it represents are ones you fully expect to accomplish with in the set time frame set forth in the plan. The effort or drive to reach these goals requires a laser like focus and an action plan that is well-developed. When you find your business in constant change it is exceedingly challenging to have enough information to set that have you have a reasonable chance of accomplishing say for the year.
A DBP allows you the flexibility, say quarterly to revisit the plan and revise it according to certain parameters that have been built into the plan. An example would be your projected sales. When one starts a business, there is a lack of any type of historical sales data apart from industry data. Many sales plans written at this point are totally dependent on industry data, market research and gut feel. Without historical data, many believe these types of projections are nothing more than guesses.
The updating of sales projections based on the past quarter’s historical data allows for more accurate projections to be developed going forward. In taking baby steps, quarterly versus yearly updates, the business has the potential to greatly improve the quality and accuracy of its projection tool. Also, the ability to improve the businesses’ sales projection tool over time will allow the business to improve its overall efficiency and thus profitability. In a nutshell what you have is a dynamic process that is allowed to evolve with the growth of the new business.
This is where the word “dynamic” used as a noun comes into play. As a noun, we should all want a process or system of business planning that is dynamic in its nature. Many small businesses, particularly in the start-up phase, spend little or no time perfecting their planning process. As a result, they often find themselves “off track” from the goals they have set for the business. When you use your planning process to review your business plan more than once a year you have more of a chance of strengthening the process as well as keeping the business on track. You have created that “a force that stimulates change or progress within a system or process.”
- (of a person) positive in attitude and full of energy and new ideas:
“she’s dynamic and determined”
synonyms: energetic · spirited · active · lively · zestful · vital · vigorous · If you would like to hear more about “Do I Need to Use a Dynamic Business Plan?” you can listen live to The Weekly Business Hour on Monday January 22nd from 11:00am – 12:00pm CST on www.irlonestar.com , the Lone Star Community Radio app, or on Conroe City Radio at FM 104.5 & FM106.1.
You can also find the podcast of the show (posted on Wednesday January 24th ) by going to The Weekly Business Hour page on www.irlonestar.com or on Facebook to The Weekly Business Hour page: https://www.facebook.com/theweeklybusinesshour. The podcasts are also posted weekly on Wednesdays on YouTube on The Weekly Business Hour channel and on other social media outlets such as Stitcher, Google Play and ITunes.
If you have questions or comments then please email me at firstname.lastname@example.org