Strategic Planning

Author

Danny Breadmaker
October 17, 2023

Welcome Back to The Danny Breadmaker!

Feature Audio Article
How to Create a Strategic Plan for Business Success
In Audiobook, PDF and EPUB Formats
Audio Article Length: 13 minutes

Ron Swanson: the ultimate self-starting, no-nonsense, budget-conscious, philosophizing intern. He'll work tirelessly without supervision while debating political theories over breakfast meats he whittled himself. Ron will get things done on time and under budget without wasting a single office supply. Just keep him away from the copy machine so he doesn't try to dismantle it. Ron will thrive in any environment that values individualism, practical skills, blunt honesty, and breakfast foods.

A lucrative business model is web-based software as a service (SaaS) that solves a common pain point for enterprises. To execute it, build a subscription-based platform that provides high value-add to customers through data insights, workflow automation, etc. Hire top engineering talent to ensure continuous innovation and differentiation. Invest heavily in sales and marketing to rapidly acquire customers and promote loyalty. Maintain lean operations to maximize profit margins. Continually gather customer feedback to refine the offering. By providing an "must-have" platform on a recurring revenue model, focused execution will result in surging profits over time.

It's difficult to estimate specific revenue and profit numbers, but here's a high-level example of how this SaaS business model could perform:

  • Target market: Large enterprises (5000+ employees) in a specialized industry like finance, healthcare, etc. Total addressable market size is $2 billion.

  • Product: SaaS platform that provides business intelligence, data analytics, and workflow automation for the target industry.

  • Pricing: $5,000 per month subscription fee per enterprise customer. Offer 10-20% discounts for annual contracts.

  • Customer acquisition: Land 250 new enterprise customers in Year 1 by investing heavily in sales and marketing. Grow to 500 customers by Year 2.

  • Revenue: With 250 customers at $5,000/month, Year 1 revenue = $15 million. Year 2 revenue with 500 customers = $30 million.

  • Expenses: Engineer team, sales, marketing, G&A expenses total $5 million in Year 1 and scale to $10 million by Year 2.

  • Profits: With $15 million revenue and $5 million expenses in Year 1, that's $10 million profit. Year 2 would bring $30 million revenue and $10 million expenses, so $20 million profit.

So in summary, this model could realistically generate $10+ million in profit in Year 1 and scale to produce $20+ million by Year 2 with focused execution. Earnings growth would continue with expanding customer base each year.

Quote of The Week

"The only limit to our realization of tomorrow will be our doubts of today." - Franklin D. Roosevelt

This quote from President Franklin D. Roosevelt emphasizes that nurturing a mindset of possibility and optimism is key to driving progress and achievement. Rather than doubts, insecurities and limiting beliefs holding us back, Roosevelt encourages focusing on the potential ahead. This growth mindset opens the door to innovation and advancement. FDR demonstrated this throughout his presidency by propelling ambitious programs that lifted America out of the Great Depression and laid the foundation for its emergence as a global superpower.

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