Mike Clark's Business Bites: Take into account macro factors when planning

With all that is going on in the world trying to come up with a plan that has any substance can be challenging. Photo / Unsplash

Do you have a business plan? How do you ensure it is relevant? How do you pressure test it to make it as relevant as possible?

With all that is going on in the world trying to come up with a plan that has any substance can be challenging. At the best of times planning can be a bit of crystal ball gazing - how many plans written in January 2020 included "what to do if the entire world goes into lockdown"?

There are many tools to help with writing good plans - swot analysis, SOAP, OODA loop, business canvas, to name a few. A useful tool to help ensure your plan is taking into account macro factors is pestel. This encourages you to look at six factors you have no control over and yet need to be aware of as they can impact your business.

P- Political factors. Think about what is happening on the political front locally, nationally and internationally. What plans has the council got that you need to be aware of - check the 10-Year Plan. Nationally decisions can be made that you need to consider - eg the Three Waters Reform. International politics like tension with China, UK leaving the EU, US and other country trade agreements.

E - Economic factors - foreign exchange rates, changes in tax and interest rates, stock market movements. Considering these helps take calculated risks, for example, interest rates are so low at the moment borrowing can be a smart strategy.

S - Social considerations. This is the most constantly moving of the six factors. Trends and fashions are considered under this heading. Factors like the move towards inclusiveness, #metoo, Black Lives Matter, LGBT, work from home, freelancing and online learning have dramatically changed the way we work and the expectations workplaces need to meet.

T - Technological. This is the fastest growing area of consideration. The exponential explosion of technology can be seen in almost every aspect of business from our growing reliance on technology to cloud storage, robotics, AI, VR, AR, bionics, nanotechnology etc. Uber and Airbnb are two examples of how planning with technology at the forefront can change an industry.

E - Environmental. Are you doing your part to save the planet? The past two years have seen this element of pestel thrust into the limelight. Battery and hydrogen power in cars are a perfect example of how one needs to forward plan with the environment in mind.

L - Legal. Many of the above factors overlap and often legal factors are used to add weight, the Government's Zero Carbon Act being a great example.

Do you need to review your plan and ensure all the above factors are considered and included as necessary and relevant?

• Mike Clark is director and lead trainer and facilitator at Think Right business training company.