Step 4 of Building a Better Business: Make a plan
You know what you want from your business; now it’s time to plan how to get it.
Start by deciding what you want personally from your business. For example, if you need $100,000 p.a. to cover your living costs and a family holiday, and your overheads are $100,000, your gross profit needs to be $200,000. If your current gross profit margin is 50%, then your annual sales need to be $400,000.
Make sure your plan is linked directly to how you’ll achieve what you want personally from the business, e.g. $100,000 and a six-week holiday.
Follow these rules to create a solid plan and achieve your goals:
1. Keep your plan on one page.
Double-sided if you must.
2. Set a maximum of four main goals for the year.
These should be broken down into 90 day goals and actions to ensure you work towards your annual goals.
3. Identify five Key Performance Indicators (KPIs).
Any more than five and you’ll lose focus. Pick the KPIs most likely to have an impact.
4. Share the plan with your team.
Ensure their goals align with your plan. Help them define their own actions and the KPIs they need to achieve.
5. Keep the plan visible.
Track your progress against the plan and celebrate success with your team along the way.
6. Review your plan at least quarterly.
Make sure you’re completing your 90 day actions and achieving your 90 day goals. Update the plan with new goals each quarter. Having someone independent hold you to account helps.
Your Business Plan is the most fundamental document in your business. It acts as a how-to-guide to achieving what you want from your business.
Your business is there to serve you; you should not be a slave to your business.
Need help creating your plan? Get in touch for more information about our Business Planning service.
“Hope is not a strategy.” – Anon