A business needs to have a strategy in place to achieve its business goals. The business action plan determines precisely what the company will implement to achieve them. It includes the objectives, actions, resources allocated, results, and monitoring indicators.
Definition of the Commercial Action Plan
The business action plan is broadly part of your business strategy. To generate turnover, concrete actions are essential. Even if the business develops a good product or a good service, it will not sell itself. The company needs to implement means to reach its customers and make sales.
Finally, commercial actions must make it possible to achieve the commercial objectives set. For example, if you plan to generate 10 new customers per month or earn 15,000 euros in monthly turnover, you should explain how you will achieve it. Of course, your actions must be achievable. This implies that you have the necessary means to implement them.
The plan is made up of several parts:
- The business objectives to be achieved,
- Operational actions to achieve the goals,
- The human, material, and financial resources devoted to activities,
- Monitoring indicators and results
Construction of the Commercial Action Plan
The plan specifies, for each commercial objective to be achieved:
- Operational action (advertising campaign, social networks, participation in trade fairs, establishing a business contribution partnership, etc.)
- The commercial objective concerned by the action in question,
- The people in charge of the commercial operation,
- The period concerned by the action,
- The budget devoted to the action,
- Key performance indicators,
- The results.
First of all, it is necessary to indicate precisely each action implemented and, for each of them, the business objective to which it relates.
Then, for each planned commercial action, sufficient resources must be allocated. These resources are made up of the people responsible for carrying out the activities, the budget, and the equipment at their disposal. Logically, these resources are allocated over a determined period.
The key performance indicators are intended to measure the performance of your commercial actions. They will make it possible to deliver quantified information to the business manager to measure the commercial activities’ results. Subsequently, they will also allow the performance of the corrections and adjustments made to the initial plan to be measured.
Monitoring and updating of the action plan based on the results
Once developed, the business action plan is implemented at the company level. For it to be piloted, monitoring is essential. The key performance indicators come into play, and the results are carried over to the plan.
The commercial action plan initially aims to constantly evolve based on results, accumulated experience, and the readjustment of commercial objectives. The adjustments may relate to different elements. For example :
- Set new, more ambitious goals taking into account the growth of the company and the new means at its disposal,
- Correct the actions implemented because they did not make it possible to achieve the set objectives
Finally, the action plan must also evolve to follow the overall strategy of the company. For example, if the business model changes in depth, this will inevitably impact the commercial system. It is the same when the company launches new activities.