Planning - The First Step
With the New Year underway, now is the perfect time to reassess your plans for 2010. The holiday break probably gave you some time to think about your business and where you want to take it. This is a good start. It works even better when you put your thoughts down in writing in a structured way.
Below is a format I've used with clients as part of their Annual Planning Session. January/February is the perfect time to do this.
1. Objective
Your objective is the big thing you are aiming for - the bigger picture. One client put it this way: "10.10.10". To him that meant: "$10 Million turnover at 10% profit in 2010". I love it! A big bold objective, clear, decisive, challenging! Another client wants to sell her business in five years, while another client wants to retire in 3 years. These objectives are at the higher level and give everybody something to aim for.
2. Three Goals
The next step is to identify three goals you will accomplish in 2010. Not 'hope' to accomplish, but goals you WILL accomplish - goals you can tick off the list at the end of the year. These should be important to the business and meaningful to achieve. It's also a great idea to add a personal goal to this list to make them even more meaningful.
3. Identify Key Milestones
In order to reach your big goal at the end of the year it helps to break it up into smaller bite-sized chunks, like planning where you will be at the end of March, June and September. By hitting these milestones through the year, you are more than likely to achieve the big goal at the end of the year.
4. TOWS Analysis
Most business people have heard of the SWOT analysis, but we prefer to turn it around and call it the TOWS analysis (Threats, Opportunities, Weaknesses and Strengths). This way you get the Threats out in the open early and finish on Strengths. The key to this exercise is to be open, frank and honest in your evaluation.
5. Review the Organisation Chart
Most businesses have a People Chart which shows the people in the business and the work they do. That is NOT an organisation chart. An Organisation Chart is where you outline the functions to be carried out, the tasks to be completed. That way, if the staff member leaves, you just have to find someone to do the tasks, and not find a replica of the person who left. This is vitally important and can save heaps of time. The Organisation Chart also provides the structure for your monthly management meetings by working through each key Area of Operation of the business.
6. Budget and Cashflow
How could we have a Plan without a budget and cashflow? (This must be written by an accountant!). These are vital tools which help you manage and monitor the financial aspects of the business. In rapidly changing times these tools are even more important!! By understanding what your finances might look like ahead of time, you are in a better position to handle it when that time comes around.
7. Implementation - The Key!!
Having the plan is really only the first part of the story. The rest of it begins when you go to IMPLEMENT the plan. This is where most people fail... they fail to implement the plan, no matter how full of great ideas it is! Implementing a mediocre plan is far better than not implementing at all! But it's the toughest part of the whole process -implementing the plan and following through on your promises.
So now that you've got the framework it's time to get stuck in and start your plan!
Peter Knight, Knight Partners, a niche Business Advisory and Accounting Practice which specialise in taking businesses to the next level. 02 9680 8887
by Peter Knight - Knight PartnersGWP Magazines® Business Resource & Lifestyle™ Issue #28, Jan-Feb 2010
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