Your business plan
WilliamBH, https://my.wealthyaffiliate.com/williambh/blog/hob... got me thinking about my business plan and how I use it regularly to guide my business growth.
Your business plan will be different for different purposes. The one you take to the bank may be a book heavy on cash flow analysis, budgets and other statistics.
The one you use internally may be only a couple of pages and it is reviewed frequently to make sure you stay on track.
I like the following outline:
- Vision: What will your business look like in 6 months, 1 yr, 5 yrs. Your vision guides the growth of your business.
- Your values: Values guide the ethics of your business. For instance, if you value honesty you will make sure what you do helps others.
- Mission Statement: Why are you doing what you do.
- Goals: What are you trying to accomplish.
- Strategies: What you will do to accomplish your goals.
- Objectives: Breaks your goals down into measurable steps that include deadlines.
- Plans: How you will accomplish your strategies. This is where you get into the details. It is where most people start, but without doing the pre-planning work you may be planning for something that is inconsistent with your vision.
This is a plan you review at least quarterly, so keep it short and realistic. Your objectives must be based on things you control. Making a net income of $10K/month is not in your control. How many prospects you talk to every week is something you can control and can measure.
Recent Comments
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I am a big fan of doing business plans. And it should include a financial plan or budget. This will help focus on the goals and avoid chasing shiny objects along the way.
I agree,but budgeting comes when you are developing your plan to implement your strategy. I mentioned budget and cash flow belong in the more detailed plan you take to the bank. Preplanning should be kept simple.