Charting the course for your business

If you don’t know where you are going, how would you know when you’ve arrived?

A business plan helps you define where you want your business to be within a specific time frame and how you plan to achieve that goal.

It’s like a roadmap to get to where you want to be. It keeps you on track to achieving your goals and is paramount to success.

Business plans come in many shapes and sizes, and there is no right way to create one. But they all serve the same function: they are the blueprint for the success of a business. They give you direction and purpose, help you to allocate resources, and allow you to measure your success.

Here are some simple steps to consider when establishing a business plan. 

Assess where you’re going

If you don’t know where you’re going, how will you know when you’ve arrived?

First, you must define your vision for your business, that is, what you want it to become within a defined period. Closely aligned to your vision is your mission, which describes what you want to be to your clients.

These big-picture goals give your business a purpose and reason for existence. They are the foundation for all other decisions. 

Take stock of where you are

Understanding your operating environment and what can affect your business is essential to executing your business plan.

At a macro level, you must be able to thoroughly analyze the environment in which you operate. For example, you must determine who your competitors are. What external factors would impinge on your plan? Do you have the resources to do what you want to achieve?

Having answered these questions, you should determine where you fit into the competitive environment.

It is recommended that you examine your practice and assess your current activities, resources, strengths, weaknesses, opportunities, and threats. Then, determine whether you have the capabilities, knowledge, and resources to follow through with your plan. 

Develop a plan of action.

Once you know where to go, you must articulate how you will get there. You have to create strategies for achieving your objectives and define what needs to be done by whom, when, and how. At this stage, you must get into an execution mindset. It’s all good to have a big picture vision, but realizing that vision means taking appropriate action.

In addition to your strategic plan, you must also develop marketing, sales, operational and financial plans. An important question is: Do I have the money and resources to execute my plan?

 Set measurable objectives

How will you know you are moving toward achieving your goals? One way is to ensure your objectives are attainable and measurable. Another is to develop metrics for tracking growth, costs, and revenue.

You must measure by activity. For instance, assess the impact of your marketing initiatives or calculate the cost of servicing clients. Make adjustments if necessary.

And finally, make sure your plan is flexible to accommodate changes over time.