You wouldn’t set out to drive from Gladstone to Melbourne without a plan of how to get there? Would you?
So why is it that every day thousands of small business owners operate their businesses without any idea of where they are going or how they will get there.
The business plan is like a roadmap—or maybe more like a GPS in today’s world. If you want to reach the destination of financial independence, you have to plan the journey and use the tools at your disposal.
Why a business plan is important
A business plan gives owners direction and saves them from getting lost in the daily 'hustle and bustle' of running their business.
It enables them to make regular reviews of their business practice, systems and goals, to change course when required and to work towards reaching their 'Vision."
While a business plan can take many forms the most important thing is to write your plan down. Most experts on goal setting believe that having your goals put in writing increase your chances of achieving those goals.
The act of sitting down and writing a Business Plan requires you to think through your Current Business Operations, Proposed Business Operations, and then forces you to commit your decisions to writing.
Where to start
At GTC we approach business planning as a three step process.
- The first step is to carry out an analysis of the business’s Strengths, Weaknesses, Opportunities & Threats (SWOT Analysis). To get the best results we use a formal questionnaire.
- Step two is to set a vision for your business or review your current vision.
- The third and final step is to develop strategies with an action plan and time line to achieve those desired results.
A few helpful hints
- Keep the plan short & to the point (a 1 page plan is great).
- Business owners must take ownership in the preparation of their business plan and not simply delegate it to a consultant. The power of the plan is in understanding HOW the business works and its KEY DRIVERS.
- Don't file it in a bottom drawer and forget. Use it as a day-by-day, week-by-week, month-by-month reference point to compare where your business is against where you planned it to be.
- Now (just before the start of the new financial year) is a good time to prepare a financial plan.
- Your Business Plan should be updated and reviewed at least annually.