Most business leaders do not understand that Horizon Portfolio Planning is as important as the business plan itself. What they do is make a draft of their business plans, set objectives, and work on execution. Although this is a conventional way of doing business, it somehow works for some. For others, however, it does not go a long way. This conventional way of business operation may work out for you if your business module is not complex.
For instance, if you are looking to run a small retail store, you can follow the conventional method. And, more often than not, you will see your business plan and objectives executing effectively. However, if you are an established entrepreneur and want to run a large-cap company, you can not simply rely on conventional business modules and strategies.
This is to say that you can not simply rely on a straightforward business module and strategy if you are looking to kick off a multi-million dollars startup. Even if you are looking to expand your well-established business, you will always end up feeling the need for Horizon Portfolio Planning.
In this article, we are going to explore what Horizon Portfolio Planning is and what are its 3 phases. At the same time, we will also explore how you can double up your revenue and improve the efficacy of your business through Horizon Portfolio Planning.
Nonetheless, it is essential to note here that Horizon Portfolio Planning can be utilized at any part of the time. Whether you are in the initial stage of operation or your business is well-established, you can always make use of it - for good.
What is Horizon Portfolio Planning?
In its truest sense, Horizon Portfolio Planning is capacity planning, where you analyze your business from the top to the bottom. You can evaluate what your business has been up to since its operation. And what turnovers your business has been generating. Similarly, you can also measure and align them effectively. For instance, if your sales and marketing strategies are not on par with the demands of the market, you can re-align them. Likewise, you can advise your sales team on certain innovations in marketing strategies for better turnover.
Nonetheless, it is essential to note here that investors can also use Horizon Portfolio Planning. They can measure the effectiveness and potentiality of stocks prior to buying them. Even after buying stocks, investors can use Horizon Planning to check the efficiency and performance of the stocks.
The Three Phases of Horizon Portfolio Planning
Here are the three fundamental phases of Horizon Portfolio Planning:
- Horizon One: The foundation of the plan.
- Second Horizon: Execution of the plan.
- Horizon Three: Deals with exploring the outcomes of the strategy and implementing new strategies that are on par with the demands of the market.