Planning for 2011

Almost every business owner I talk to will affirm the value and importance of an annual business plan. However, few really take the time to create one! Why do so many give lip service to planning but so few actually do it?
The primary reason is we lack the mindset of a Strategic Business Owner! We think more like an employee than an entrepreneur! As a result, working “in” the business makes more sense to us than working “on” the business.
Why spend 4-6 hours creating an annual business plan when we can be marketing, calling on customers, or doing the technical work of fulfillment? To move your business forward you MUST elevate your mindset! You must learn to think more like a CEO or you will never start behaving like a leader!
Another reason most business owners do not plan is they do not have a simple system to follow for creating an annual business plan! Some had to create a “Start Up” business plan and found it to be so difficult and time consuming that the thought of having to go through that pain again is totally de-motivating. Plus, many did not even look at it once they received their funding and got their business running.
Here’s a simple outline for an annual plan to grow your business: Start your plan NOW!!
1. First, review your mission, values, and vision. This is what I call the “High Level Component” in your plan. These do not change dramatically from year to year but they need to be reviewed, evaluated, and updated annually. Find a quiet place where you will not be interrupted and take no more than an hour for this activity.
2. Next, create a budget for the year. I call this the “Financial Component.” This may be difficult if you do not practice annual budget planning. You may want to enlist the help of your CPA or your business coach. Once you set your budget, enter it into your bookkeeping software (Quick Books does this very nicely.) By doing this you can look at your P/L Statement every week or every month and know exactly where you are in comparison to your budget & projections. Most small businesses can do this in a couple of hours.
3. Finally, create goals around your 7 key business processes. I call this the “Organizational Component.” These 7 key functions are leadership, management, marketing, sales, operations/fulfillment, customer service, and administration/back office. Most small businesses can do this in a couple of hours.
These are the 3 critical components of an annual business plan. I thoroughly enjoy helping business owners put together their plan. I love the focus it gives them and the sense of accomplishment they feel, knowing that they are on top of their game, truly tracking the performance of their company.
With this intentionality and planning they are typically able to improve and grow their business year to year. If you need help, please call (215-436-9443) or email me (S.Toeller@TheGrowthCoach.Com)!