New Year New: Business Plan

It is a sad fact in business that very few companies actually have an up to date business plan in place.  

One may have been written when the bank asked for it or one may have been written at the very start of the business. But we are all too busy sometimes to take time out from working “IN” the business and actually work “ON” the business. The business plan is an integral part of working ON the Business. 

The Business Plan should be updated at least annually and if you don’t have one, make 2020 the year you take some time to look forward for the next 12 -36 months and write down the plan. 

As someone once said nobody plans to fail but many do fail to plan.

Some of the advantages of having a Business Plan are:  

  • To review and set the direction of the businesssee the bigger picture and use the plan to connect the different parts of the business into one strategic goal 
  • Helps identify common goals amongst several directors (if applicable) – it is important to align personal goals with business goals. The business should be giving you what you want.   
  • Helps identify and prioritise your key goals – you can’t do everything so need to allocate time, effort and resources strategically   
  • Helps create strategies to achieve your goals 
  • Helps identify what you will need to achieve your goals in terms of resource and targets  
  • Helps to set timeframes for achieving your goals to monitor this going forward 
  • Helps to develop a tool to communicate your business goals and vision with your team – when the vision of the business owner and team are aligned, the business is far more likely to flourish. 
  • Enable you to divide your goals into short term and long term – quick wins vs. key projects 
  • Helps to develop a template to review actual performance against targets and provide accountability.  
  • Helps to create a platform to develop Financial Forecasts 
  • It can be used as a basis to set team members’ individual goals / targets  

When we run business planning sessions with clients, it allows the business owners to take time out of the hustle and bustle of the business and in a half-day session cover off, the key issues covered include: 

  • Discussing and setting both personal and business goals for the next 12 months 
  • Discussing and agreeing on an action plan with strategies to support achievement of goals 
  • Identifying Gross Revenue Targets and Key Performance Indicators 
  • Identifying opportunities and vulnerabilities in your business that need to be managed 
  • Establishing a 90 Day Action Plan to address immediate critical issues 

The Business Plan does not have to be a 1 inch think document. In fact, condensing it down into the one / two pages is perfect. Click here to view an example of a Business Plan which captures all the key elements and provides focus for the business owners. 

So let 2020 be the year you finally commit to writing the business plan – and of course if you need assistance with any of this just give us a call. 

Written by Paul Dell 

If you would like assistance producing your business plan, book your complimentary meeting with Paul now by emailing paul.dell@raffingers.co.uk