This time of year is always a good time for business owners to reflect on the year gone, and to start planning for the new year to make the most of their business more profitable.

Planning is always guaranteed to evoke a wide range of emotions in business owners. For some, it means organisation, satisfaction or success, but for the majority of SME owners, it means a time of confusion, struggles and a headache!

While I know many owners who, may not have a plan, but agree that it’s a good idea to have some sort of plan in place, there are some out there who dislike the idea of having a plan and think its overrated. Which got me thinking…

Is a business plan vital to having a profitable business?

Many SME owners who don’t have a plan often give a variety of reasons:

  • I have a plan, its mapped out in my head
  • Planning is hard work
  • I don’t have time
  • A plan is too restrictive
  • Things change too fast to have a plan

Some of these concerns are more valid than others. But there is usually some semblance of truth behind old clichés, and in this case ‘failing to plan means planning to fail’ certainly does ring true! Without a plan in place, things can quickly descend into chaos, particularly if you have a team…

“If you don’t know where you’re going, you’re not going to get there!”

Having a plan gives you clarity about where you’re going and how you’re going to get there, therefore dissipating the noise and allowing you to focus on the things that are important. Always ask yourself if this task is going to bring you closer to your goal or not, which makes it much easier to manage your priorities and time!

There is an almost endless list of benefits to having a plan in place for your business:

  • See the bigger picture
  • Helps with investments and awards
  • Strategic focus
  • Set priorities
  • Manage financials
  • Team alignment/responsibility
  • Set and achieve milestones/goals
  • Measurements
  • Accountability
  • Manage change

You get the point, I could go on all day….

How do I get there?

By starting off with a 5-year plan, then a 12-month plan, then a 90-day plan…

For your 5-year plan, think about where you want to get to, what you want the company structure, client base and product set to look like. Many owners I have worked with underestimate just how much can be achieved in this time, dream big guys! When you have the 5-year plan in place, you can narrow it down into a 12-month view. Have a think about what you want to achieve in the next financial year, make sure you have some detailed sales and marketing plans in place to help drive those financials! When this is in place, a 90 day plan each quarter helps you put it into action! Map out the 3 big objectives for the quarter that will help you deliver the 12-month plan, that goes into the 5-year plan. Plan your actions week by week to help you achieve these goals!

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