As the new year starts, it is the perfect time to review or write your business plan.
- What are your goals for 2010 for your small business?
- How will you achieve these goals?
- What actions do you need to take to achieve success 2010?
If you are starting a business or have never sat down and planned your business goals, now is the ideal time to complete a business plan for your small business. If you have a business plan, you should take some time to review your plan and set specific goals, action plans, and success measures for 2010.
A business plan does not have to be a complex document, but it should include several sections and the information that you will need to set and achieve your goals for the year. Look ahead up to five years in your business plan, but have a detailed plan for the next year. This document then becomes your guide and map for the year. You should refer to your business every few months to see if your small business is on track to achieving the goals you set at the start of the year.
Vision
The first section of your business plan is the overall vision. What does the small business do and what do you want the business to achieve in the next few years? Your overall vision for the business can include your business mission statement.
Goals
Next, your business plan should look at the goals. You should list two or three major goals that you want to achieve for the year. However, to really plan to achieve these goals, you need to drill down further into each goal. If one of your goals is to increase your sales by 15 per cent, you will need further details in your plan to make it happen. Just writing that one sentence in your business plan will not help you to achieve your goal.
Instead, outline what each goal means in terms of the 5P’s: People, Processes, Products, Profits and Planet (sustainable environment). Using the above example, your business plan may discuss answers to the following questions.
- Do your sales people need training to achieve this goal?.
- Can the business streamline the sales processes to make it easier for customers to buy the products again?
- Will you introduce new products or find new niche markets for old products to increase sales?
- Can you increase the profit margins by buying cheaper supplies?
- Will changing suppliers increase profits, but reduce the number of return sales?
- Is the goal sustainable in terms of production levels?
- Will the increase in sales add stresses to the environment?
Once you decide how every department will contribute to the achievement of the goal, you need to create a high-level action plan with a timeframe for specific actions. Allocate responsibilities (even it’s just you) for getting the actions complete on time. Finally, add in measurable milestones, so that you can check whether your business is on track to achieve the major goal at several points throughout the year.
Market Place
The next step in creating a workable business plan is to review the current market and try to forecast market forces that can adversely affect your business. Complete a quick analysis of your major competitors. Consider what part of the market your business could effectively win from your competitors.
Complete a basic SWOT analysis of your business and list your business’ strengths, weaknesses, opportunities, and threats.
Cashflow
Your business will not succeed if you run out of money at any time. Estimate the inflows (revenue to come in to the business) and outflows (costs of day to day operations and funding to achieve the goals). Ensure you have plans in place to cover a cashflow deficit at any time.
Risk Analysis
The final step in completing a good business plan is to write a risk analysis. Consider the key risks that could threaten your business and put plans into place to mitigate and reduce these risks.
2010 could be the year you achieve amazing things in your business, but only if you can plan properly. Set your business goals and plan the actions required to meet the milestones. Ensure your business has the cashflow to achieve your business goals this year. Planning is the first step on the pathway to success.
Now is definitely the time to plan your business success for 2010.
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photo credit: HikingArtist.com
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