Travel Weekly financial make-over winners Yvonne and Peter Holmes drew up an action plan for their agency Classic Travel this week.
The couple set out to realise their goals with the help of Andrew Burnham, principal at accountancy firm MacIntyre Hudson, and his colleague, business strategy manager Mandy Mackinnon.
The aims and strategies will be specific to Classic Travel, but the principles can be applied to any business, according to Burnham.
“The strategic action plan is about fixing points in the future and deciding how you get to those points,” he said. “It’s a valuable process because if you don’t know where you are heading, how can you hope to get there?”
The first step was to analyse the strengths, weaknesses, opportunities and threats of, and to, the business, which is called a SWOT analysis. Strengths and weaknesses are the internal factors affecting the performance of a business.
The aim is to capitalise on the strengths, for example a loyal customer base or knowledgeable staff, and to overcome weaknesses such as the shop’s appearance or lack of staff training.
Opportunities and threats are external factors influencing a business. The idea is to capitalise on all the possibilities – such as new alliances and relationships with trade associations – and overcome threats such as online competition.
Using these lists, it is possible to draw up action points for the next 12 months. “You could come up with 50 different thoughts. It’s like loading good ideas into a funnel. But before your pour them out, you need to prioritise,” said Burnham.
“It is also crucial to prioritise the time to implement the new strategies and ensure you have regular reviews.”
It is key not to lose momentum in implementing a strategy, so Burnham advises agents to consider involving someone outside the business.
“All the objectives need to be clarified. It’s hard to self-analyse – you need someone detached and objective, someone who can challenge you, but who is not in competition.
Sometimes people can keep issues to themselves, and it’s important to have someone who can draw out your true feelings, and your objectives for the business.”
Key points
- Brainstorm, but ensure it is a structured process.
- Take a step back and keep in mind your overall objectives.
- Be honest and ensure you get everything out in the open.
- It can be a cathartic process, so take time to pick over the bones.
- This can be a turning point for your business and your chance to refocus.
Issues to consider:
- What products and services will you provide?
- What size will the business be – the number of employees, annual turnover, margin?
- Describe your ideal customer.
- What will you expect from yourself and those who work with you – courtesy, client orientated, punctuality, skills, experience?
- What are the unique qualities that willmake your business competitive?
- What are your strengths and weaknesses?
- What opportunities and threats do you face?
Talking point
Talking pointDo you have a business plan in place? Talk to Andrew Burnham about your own agency on travelhub…
Call to action: the future of Classic Travel
The latest meeting gave Andrew Burnham, Yvonne and Peter Holmes, and Mandy Mackinnon the chance to thrash out their thoughts.
“Today is what I refer to as a call to action – your chance to reflect on your business and decide what you want for it,” said Mackinnon.
“You may not get any surprises, but you will get some clarity.”
The priority was to improve margins. To do that, the couple had to decide where they should be concentrating their sales efforts, and how best to incentivise one of their most valuable resources – their loyal and experienced staff.
Although early internet adopters, their website had the potential to account for a greater proportion of their business. Yvonne agreed to research ways of redeveloping the site to make it easier to update.
Equally important was the need to relieve Yvonne of her shop floor duties. After 25 years at the helm, Yvonne was keen to play a more strategic role behind the scenes. A six-day week, with just one holiday a year, also meant that she and Peter were becoming tired of the toll the business was taking on their quality of life.
Find out more about Classic Travel and Yvonne and Peter’s strategic action plan at www.travelweekly.co.uk/makeover