Who Needs a Business Plan?

Do you create a business plan each year?  When I ask this question of clients, I will regularly get a chuckle or roll of eyes before I get that reluctant, “yeah, I do.”  The reason for the response is universally that the client DID it, and then promptly put it into a drawer.  A few will proudly admit that they pull it out once a quarter (or sometimes more frequently) and review it, but very few can say they live their business plan (or their goals).

 It’s that time of the year (beginning of the 4^th Quarter) to work on your business plan for next year. Your business plan is probably the most important part of your business, but it has to be living and breathing, monitored and adjusted.  And in its most basic format, it is easy to do.

 Let’s say you told me you are going on vacation.  The first question I would ask is “where?”  I doubt you would say “well, I’m just going to get in the car and start driving.” What are the chances of you getting anywhere? You would not only be able to tell me where you’re going, but how you’ll get there, how long you’ll be gone, how much it will cost, how long it will take you to get there, what you’ll be taking along, who you are going with, etc., etc.  In other words, you carefully plan your vacation.

 So why is it you don’t just as carefully plan your business?  A well crafted business plan designed to make you successful will also keep you on track, be your roadmap (or GPS), and relieve stress.  But even a simple business plan will give you direction, and when used correctly provide so much more for your business.

 The three basic rules to creating a business plan are:

• Start with the end in mind
• Work backwards
• Break it down into smaller pieces

 Start with the end in mind – How much do you want to sell this year? I am not talking net profit at the moment, but gross sales.  Make that decision (See Smart Goals blog article), and don’t be shy.  Be realistic, but it’s no fun unless the number is high!

 Work backwards – Small children go through a learning phase where they constantly ask “why?”  You need to keep asking “How?” Starting with the end, that question will set the steps before.  Each step should also have a “how” attached, and keep going until you get to the most basic “how.”  This identifies your SWOT (strengths, weaknesses, opportunities, threats or challenges.) You may look at a “how” and think to yourself “but I don’t know how.” More on that in a paragraph…

 Break it down into smaller chunks – Time plays a big part in a business plan.  If everything has a deadline of December 31, you will not even look at it until December 1, then shake your head and say “no way!”  So break the steps into shorter or smaller increments, with interim dates.  $1 million in sales for the year is $250,000 per quarter, or $83,333 per month, or $3,846 per day (five day week). Less than $4,000 per day sounds a lot easier to achieve than $1,000,000!  Working with each “how” above, set dates for accomplishment.

 As you go through this exercise, you will discover what extra tools, knowledge, personnel, equipment, or whatever you need to achieve the goals in your business plan.  Excellent!  How are you going to make that happen? Is it something you can do or does it make sense to hire some one to do it? Something you can learn, or delegate for some one else to learn.  These answers become part of your business plan as they are an integral step in staying on target.

 A more robust business plan will certainly improve your business skills and bottom line, but if you at least get this far, you will see a difference.

 The most important step in this exercise is to take this finished plan and place it somewhere to look at everyday.  One of the best places to put the plan (besides hanging on the wall of your office) is to purchase a desk calendar, and transfer the “small chunks” to the calendar.  You will be much more likely to accomplish something on your calendar than on a list somewhere.

 For a free business plan template or goals worksheet, please email me at jbyron@dmbgroupinc.com and I will be happy to send one to you.  Don’t let another year go by without a thorough plan!

Clouds in the Sky are not Smoke in your Eyes

by Sherry Matteson, M.A.

Smoke in your eyes is disorienting and debilitating, to say the least. Whatever you were doing comes to a halt. With diminished vision comes uncertainty and the reaction to uncertainty is generally to stop action. A cloudy sky can have a similar effect in that we don’t know if a storm is coming or simply a quiet rain. The uncertainty of our economy is like clouds in the sky. Unclear, yes, but it is not smoke in your eyes.

Without knowing the decisions our government will make, which if known, might give us a sense of security in our own decision-making, our waiting and inaction becomes paralyzing. Motivating ourselves to try something new, or to get on with innovation seems tough when the rules of the game are up in the air. Uncertainty is one of the primary reasons that people resist change, and this resistance often leads to failure. However, the certainty we are looking for is not really all that certain, anyway. We must  move to adapt and create our own version of certainty. Part of its creation is designing our businesses to be flexible , constantly monitored and adjustable as we go. Have you created all that is necessary to do this in an impeccable way in every aspect of your company?

Its true that perfect clarity is not always possible, and leaders are not always in control of events and outcomes. However, this does not mean that all the action should stop. As a leader in business you can provide Certainty of Process. When the world at large is seemingly in chaos, you do not have to follow suit.

Excellent leaders will continue to:                                                                              

•  communicate                                   
•  invest in relationships                                                                                                  
•  improve                                                                                                                   
• remain true to principles                                                                                               
• forge new alliances

These actions can make the difference between getting stuck and emerging triumphantly. Providence steps in to help those who do not stray from their goal.

Clouds will eventually give way to clarity.

As a cloudy sky gives way to the sun once more and the wheels of commerce begin to turn more rapidly, how would you like to be positioned in your industry? What aspects of your company require development now?

• prof it performance and financial controls
• productivity and employee incentives
• customer loyalty and quality assurance
• leadership development and succession planning
• sales and marketing implementation
• technology systems

Now is the time to shore up your systems, policies and procedures for the future, regardless of what it holds. The only thing we can rely upon 100%, is Change.

How we weather change determines our success.