planning Business

As 2021 draws to the close and businesses start to think about the new year, now seems like a good opportunity to think about business planning.

By JEFF WILLIAMS

BUSINESS PLANNING IS NOT ABOUT producing a slick document for the bank manager to review, nor is it about that first plan you developed with an idea of how you wanted your business to grow. An effective business plan is a living breathing document that you refer to every month, to tell you whether or not you are on track with what you want to achieve this year. If you are actively doing this, you are already on track to growing your business significantly.

Proactive business planning is about getting everything out of your head and onto a clear plan that you can share with others who are going to help you fulfil your goals. Imagine taking out a map and marking your path to your destination, taking note of the roadblocks, junctions, diversions and breaks you will have to take along the way.

If you begin with a very clear vision of what you want your business to look like in the end, then you can start to put together a practical business plan detailing the opportunities and challenges in front of you. It’s all about the numbers at the end of the day.

Understanding the numbers

Think back to your first payslip, do you remember where you looked first when you received it? That’s right, the bottom right-hand corner to find out how much you are going to be paid.

In fact, you already had a pretty good idea in advance what that number ‘should’ be didn’t you? The same should be true in business. Rather than opening the payslip in surprise, your business plan should be a very clear plan as to how much you will sell each month, at what rate, at what cost and at what profit. You should know and plan this in advance each month. Throughout each week and month, you should check that you are on track to achieve your forecasted profit, because that’s what it’s all about isn’t it?

The 'What's in it for me' (WIIFM) factor Next, be very clear on exactly who you want as customers. What problem are you solving for them? What must happen to cause them to become your customers? What do you need to keep doing to keep them coming back? And what could happen to cause them not to buy?

Understand and plan for the fact that for your business to grow, your business needs to become attractive to the best people out there. You must learn how to induct them, train and develop them so that they stay and contribute to yours and their own prosperity – and dare I say, happiness and fulfilment. For your business to grow you must learn how to grow your people, because they grow your business.

Adapt, adjust and innovate

Proactively planning to systemise your business and create strong efficiencies and therefore higher profitability is the final part of an effective business plan, whilst keeping an eye on the competition and planning to adapt, adjust and innovate as necessary.

Effective business planning is an ongoing process of continual planning and improvement. If this is not occurring your business is effectively going backwards.

Some great questions to ask yourself as you go into next year are:

• What revenue do you already have promised for next year?

• What is your monthly break-even requirement in terms of revenue per month/week?

• How much revenue is required to make a profit each month?

• What is the gap between what is planned to come in each month and what you need to achieve?

• What strategies are you planning to apply to bridge that gap?

• Who is responsible for each action or strategy and do they have the time and resources to get their job done?

Reaching your goals

The easiest way to plan is to break the year down into four 90-day periods, and then break each 90 day period down into three one month periods.

Getting some help to keep you on track and focused is also a good idea.

Remember, failing to plan is planning to fail, or at the very least just exist on the edge. Creating a proactive business plan makes sense if you want to reach your destination and get your business firing on all cylinders.

So, what’s your plan?

For more advice and tips on Business Planning speak with Jeff Williams, Business Coach to arrange a complimentary strategy session 01244 515533 jeffwilliams@actioncoach.com

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