SMEs - Step 5 in the business planning process

The last step in the corporate strategy is the environmental analysis, more commonly known as the PESTEL analysis.

This could arguably be done earlier in the corporate strategy process, and in fact should best be done as part of each and every step of the corporate strategy process. This environmental analysis is crucial to success, as these external factors are outside the control of management and consequently it is imperative that management are aware of their possibly impact on the corporate strategy.

Too often businesses become introspective and consequently fail to take cognisance of the external factors that surround their businesses, and then they later wonder what caused their businesses to fail.

For the uninitiated it is Political, Economic, Social/Cultural, Technological, Environmental and Legal environments which are to be monitored.

SMEs - the research is valid and correct

I had the pleasure, as part of my PhD research, to interview a successful business owner, as part of my fine tuning of my questionnaire. It was a pleasure because he confirmed so much of my research to date.

Key to his success has been a vision/plan on where he wants to be down the road. He reads a lot, networks at every opportunity and has done some additional skills courses subsequent to leaving school. He funded his own business by initially working in the industry and gaining experience, and then saving until he had enough money to start his own business. He is a strong believer that the point of business is wealth creation not income creation.

Finally he said that he is extremely opportunity aware, and once he has identified a genuine opportunity, he does not delay in making the decision to proceed. He does very little without seeking out possible opportunities, and he is wired for opportunities. He has learned from his peers and through studying, and has full confidence in his skills.All this is directly in line with my research to date, as this man is undoubtedly a natural entrepreneur.This leads me to my next blog. Can we create entrepreneurs?

SMEs - do business plans (1/2007)

This is a highly debatable topic. There are many business owners who are highly successful, yet they have never had a business plan. Similarly, there are many businesses that have failed because they never had a plan.

There will inevitably be research for both arguments. However, my personal belief is that while there may be many successful businesses who did not have a business plan, I believe that the reality is that we are in fact referring to a WRITTEN business plan when this statement is made. I think a written business plan may not be crucial, but I am sure that all successful businesses had a plan, albeit that it was merely a mental plan.

Most successful owners I have met had a clear vision of where they were going. That to me is indicative of a plan.

Rob Smorfitt

SMEs - do business plans! (1/2007)

This is a highly debatable topic.

There are many business owners who are highly successful, yet they have never had a business plan. Similarly, there are many businesses that have failed because they never had a plan.


There will inevitably be research for both arguments. However, my personal belief is that while there may be many successful businesses who did not have a business plan, I believe that the reality is that we are in fact referring to a WRITTEN business plan when this statement is made.

I think a written business plan may not be crucial, but I am sure that all successful businesses had a plan, albeit that it was perhaps merely a mental plan. Most successful owners I have met had a clear vision of where they were going. That to me is indicative of a plan.

Rob Smorfittt