Are you starting a new business or is your current business struggling, here are some key tips and ideas to look out for when engaging in the business:
It’s that time of year again, where businesses and department heads start thinking about next year, yes that is right it is business planning time. We will walk through business planning on an annual basis today and also putting together a business plan for a business starting up or looking to grow. The concepts are all the same but there are some different nuances to doing an annual business plan and an overall comprehensive plan.
To start, every business, including financial advisors and insurance agents should have a business plan to start their business. The components of a business plan should include:
When doing the annual plan, paying very close attention to how one is going to do things and execute is important. Also you need to pay attention to the financial projections form your first plan, these need to be updated annually with actuals and new projections, and then connect them with your annual numbers.
Business plans can be elaborate or simple, but they need to be detailed. When working with people developing their plans I notice they are missing clarity on many ideas especially the financial and the marketing sections. It is best to be objective when one does this and not get emotional. The difficulty here is when doing these plans, whether it be annual or a formal comprehensive one, which you take your emotions out of it and focus more on an objective point of view. This is an extremely tough thing to do as we all want to be invested in what we do and who we are. The best way to do this is too have someone else do your planning for you. Whether you are running a department in a business or your own business, doing your own planning you get caught up with your emotions. Setting things outside of that and bringing in someone who can ask the objective questions will help you plan these out and put together a more accurate plan.
Whether you are creating, building, or maintaining a business everyone needs a business plan. What are your goals that you are trying to achieve? Do your employees and your clients know what you are stand for and what you are trying to accomplish? One needs to put things together annually in a formal way. The best way to do this is through a third party. Just like the old saying goes “Only a fool would have himself as a lawyer” the same comes to doing your own business plan. Each year I have someone do mine and we sit down and discuss. Have you done yours yet?
Once the plan is created it shouldn’t live in a desk drawer. You should be using the document weekly and having formal review meetings monthly. Tracking progress and identifying weaknesses in the plan and then figuring out changes to these plans will be helpful and will help make sure you hit the goals you set out to accomplish. What steps do you take to accomplish your goals and your plan?