The Power of Proper Planning

Sometimes we all need a little help getting where we want to go. Like a GPS navigation system in your car or even a good old fashioned Hagstrom map in your glove compartment, we all can use a little direction sometimes.  

Similarly, businesses seeking to grow and become more profitable can only benefit from putting a roadmap in place that will take them to the next level of success. Drafting a well thought out business plan that defines goals and strategies, as well as financial forecasts and market analysis, can dramatically help keep a business focused on track, and profitable.  

In a recent article, Forbes provided valuable insights into how to craft a meaningful business plan. Paraphrased below are some key takeaways.  

Ideally, a business plan should consolidate and communicate the overall vision of the company and outline both long and short-term goals within realistic parameters of the budget. The best place to start is at the beginning, which is typically the Executive Summary, which highlights the most important aspects of the business plan.  

This is often followed by a company description which is, in essence, an overview of the business. It should include your business’s registered name, address, and any key employees involved in the business.  

The plan should also include a description of the products and/or services the business offers, as well as an outline of how the company plans to attract and retain customers. It should also define the structure of the company. For example, is it a sole proprietorship, a limited liability company (LLC), or a corporation?  A section should also be included that details the company’s history and evolution over time, if applicable.  

Detailing financial and profit goals is a key component of a solid business plan. But beyond this, you should also assign a number to your budget and set your planned weekly, monthly, and annual spending. These can span various costs, not the least of which are operational expenses. Sales and marketing costs should also absolutely be figured in. Market research is another worthwhile expenditure that can enable you to rank how your business is doing within your industry. 

Once in place, a company’s business plan should not be put on a shelf and forgotten. It should be referenced, managed, tracked, and executed across the entire enterprise. Leadership may dictate the vision, but it should be adapted to guide employees to help them carry it out and achieve strategic goals and outcomes. 

A well thought out business plan truly is like a roadmap designed to lead you to where you want to go. Drafting one compels you to define your company’s goals, mission, and strategy, so you stay focused and on course. It also indicates to stakeholders that you are prepared, thereby increasing the chances of securing loans or investments. And by spelling out operational requirements, budgeting, and resources, waste is minimized, and productivity is maximized.