We’re living in unprecedented times. Countries are threatening to default; the West is
facing the prospect of a ‘double-dip recession’ and stock markets are falling sharply. So
if you’re running a business, you’d be forgiven for having a one word business plan:
“survive.”
Proper planning is now more important than ever. Taking the time to write – and
regularly review – a good business plan could be the key to helping your company come
through the current downturn.
Here are eight proven strategies for making sure your business plan is a worthwhile
document – one that helps guard against your company becoming just another
depressing statistic.
· If a business plan’s worth doing, it’s worth doing well. You need to devote time
and attention to preparing a comprehensive plan. It will take at least a day – and
an uninterrupted day at that, so consider setting specific time aside and
producing a detailed business plan you really believe in.
· By all means write a business plan for next year – but break it down into
manageable time periods. It’s essential to have monthly or quarterly targets
within your business plan.
· Be Honest – if your business turned over £50,000 last year it is highly unlikely that
this year’s figure will be £1m. Your business plan has to be realistic - otherwise
it’s not a business plan, it’s a wish-list.
· Technology is changing ever more quickly and you need to keep up. It may be a
daunting task, but it should be there in your business plan. And if social media is a
part of your plan, remember it’s like any other form of marketing: you need to set
targets and measure results.
· Even the best business plan is worthless if you put it in your drawer on January 1st
and then forget it until December. Business plans need to be reviewed on a
regular basis. That’s why monthly or quarterly targets are so important. Regular
reviews give you the chance to get yourself back on track.
· You need to keep score. Identify the Key Performance Indicators (KPIs) in your
business – and then measure them. It might be sales appointments, revenue or
tighter credit control. You’ll know the numbers that are crucial to your business:
it’s vital that they are included in your business plan and regularly monitored.
· You need to be accountable: if you’re not, it’s too easy to slip into a comfort
zone. If you have fellow directors you can hold each other accountable. If you
haven’t, then using a business mentor or joining a peer-support group are options
worth considering.
· Finally, be adaptable. Business plans are not set in stone. Their purpose is to
guide you and keep you on track; not to blinker you. Circumstances change and
new opportunities will present themselves. One of the key strengths of an SME is
that it can make decisions and change direction far more quickly than a big
company. So keep an open mind – and if necessary, re-write your business plan
