Every year many new businesses are started but business planning is often overlooked.
Business Planning – why?
To increase your chance of success business planning is vital. Many small and new business owners are so busy with getting their business off the ground or tied up with the everyday matters that the business generates they fail to plan for the future. No one would think of taking a sailing boat across the sea without charts and a plan of how they are going to arrive at their destination. Without a plan disaster is quite likely or at best to finish up in the wrong place.
The same can be said for business. You have a dream or an an idea of where you want your business to be in the next few years but how do you make sure that you get there? This is where business planning is so essential. The business plan that you write will enable you to mark your route to achieve your goals.
Business Planning – how?
A business plan need not be a complicated document. In fact the simpler it is the more likely you are to refer to it and follow it. Some plans could be written on one sheet of paper. A business plan that you need to present to a bank or potential investor will need to contain much more detail and you may want to seek help with writing one for that purpose. The kind of business planning discussed here is the planning that will keep your business on track to succeed.
Write down your goals. Under each goal make notes of the things that you will need to do to achieve them. For example you may have a goal to reach a certain level of turnover /profit by a certain date. How many sales will that require? How many Customers? How will you find those customers? How many people a day do you need to speak to? Write down the numbers.
You will begin to see how much work is required each business day and what work needs to be done to get there. You can then target yourself and any staff with making the right number of phone calls or calling on prospects rather than just guessing or perhaps easing off after a successful run. Averages tend to come back and haunt you! If you speak to 10 people and get 8 sales instead of 2 you may find the next 30 don’t buy!
Every business is different and what you want to achieve can be very different from what others would want. Therefore take the time to sit down and do your business planning carefully and from time to time check if it needs to be amended.