Consultant stresses importance of a business plan

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2013CruiseWorld_logo200x115FORT LAUDERDALE — Jack Mannix, founder and principal of strategic consultancy Jack E. Mannix & Associates, told agents that a goal without a plan is a wish, and that’s why it’s essential to write a business plan.

Mannix, speaking at Travel Weekly’s CruiseWorld conference on Wednesday, gave agents a simple outline that is designed to make writing a business plan less daunting.

He recommends laying out objectives. This could be fairly simple, such as generating a certain amount in sales or net revenue in 2014. It could be completing a Certified Travel Counselor curriculum by January. It could be reducing your work week from 50 hours to 40.

“You want a limited number,” Mannix said. If you have too many goals, you won’t achieve them, he said.

Next step: strategies. That’s the “how” behind the objective. Strategies for achieving sales goals could be making 80% of an agency’s sales preferred-supplier sales, focusing on luxury and using preferred-supplier marketing dollars.

Then, agents should lay out a plan for executing those strategies. For example, to achieve the goal of 80% preferred-supplier sales, agencies might need to review total sales, increase preferred-supplier training and offer incentives for booking preferreds.

Jack MannixMannix told agents to choose objectives carefully because they increase exponentially. One objective spawns three strategies, which in turn spawns two or three key actions. It adds up.

A marketing plan is another must. This means segmenting customers, making sure you’re sending them the right offers; making a plan to get supplier co-op dollars; and deciding what marketing channels to use—mail, print, email or social media.

Financial plans may be boring, but they’re critical, Mannix said. Agents should break their financial plans into monthly and quarterly goals. That way if they find they’re not on target for the first quarter, there’s time to take remedial action.

Agents also have to include regulations that might affect their business, insurance needs , legal and administrative costs, technology needs and physical resources.

Finally, a business plan should be a document referred to regularly in order to monitor progress.

“Analyze shortfalls,” he said, “and high-five your successes. Congratulate yourselves. It’s a business, but it should be fun.”

Follow Kate Rice on Twitter @krtravelweekly.

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