Does Social Media Belong in Your Business Plan?

Social Media has become a worldwide phenomenon but does it belong in your business plan? The growth in usage statistics are staggering across the numerous platforms that make up this online world. I recently read a blog post that discussed 52 different social media sites. These were presented in groups under the following categories - sites that you can use to network with others, those that help you promote your products/services and those that enable you to share information with others. The starting point for answering the question "Does social media belong in your business plan" is the understanding that a business plan is a living, breathing, ever-changing document. My concern is that too many business owners of small to medium size businesses either don't develop a business plan at all or if they do, they don't revisit it periodically to keep it fresh and relevant. While social media has existed for some time now, its use for business is a rather recent development. This has come about as a result of its increasing acceptance by the population in general, businesses finding ways to capitalize on it, larger businesses dedicating resources to it and the social media platforms offering more business oriented capabilities. Those business owners that are keeping their plans current are likely to already have included it as a consideration. For others, this new technology may force them to dust off their current business plan and take a fresh look from a new perspective. So, how should social media be incorporated into a business plan? To answer that question, let's examine some of the key elements of a business plan. First, let's look at "Market Analysis". Has social media had an impact on the specific industry related to your business? For example, if you own a restaurant you need to know whether or not any of the these platforms could help you grow your business. In this case, two immediately come to mind - Yelp and Foursquare. It would be important to be proactive with the use of these platforms in your business planning. Another area of market analysis is "Competitive Analysis". In this section of your business plan have you analyzed how your competitors are using social media platforms? For example, do they have a business page on Facebook? Do they use Facebook ads? Along these same lines, you need to consider how investing in these platforms can help you with your competitive differentiation. How can you use them to make your business stand out from the rest? Another area of your business plan that should include consideration of social media is the "Organization and Management" section. The use of these technologies requires resources. Consideration needs to be given to whether these will be internal or external. In addition, social media can provide an effective platform for managing customer service, including issues. It has provided new methods for people to share their opinions about a business and its service. It is important to follow these developments and pay attention to whether or not your customers are providing information to their online friends about your business. A third area of your business plan to consider is "Marketing and Sales". This is a crucial area for those that decide to dedicate time, energy and money to the use of social media. A focused strategy is critical to success or you may spend thousands of dollars with little return to show for it. Consistent messages, attracting people to your products and converting them to customers requires proper business planning for successful execution. The last area of your business plan to consider is the "Financial" section. Unfortunately, I have encountered owners of small to medium size businesses that have spent money for online services such as a web site that are never going to give them a return on their investment because the site is not likely to be found among the millions of web sites that exist today. However, these new platforms can provide very cost effective alternatives for promoting your business. The 2011 Social Media Marketing Industry Report compiled by Social Media Examiner reports that small business owners are seeing the greatest benefit from marketing with these new tools. In summary, the growth of social media indicates that it is here to stay. That doesn't mean that every platform will survive however. It is important to periodically review your business plan using the sections highlighted in the business plan format used throughout this article to ensure that your business is taking advantage of the growth opportunities that social media has to offer. Cindy Rack has more than 20 years of experience in sales and marketing. Her company Social Voice Marketing LLC provides workshops, marketing plans, best-in-class video-based training packages and tools to enable business owners to successfully grow their business online.