The ConsultingHQ Business Planning Guide For Busy Business Owners
Are you planning to succeed in the upcoming financial year – or failing to plan your business growth?
It’s easy to be continually busy being busy – especially when you are up to your armpits in business challenges.
The biggest issue of all facing business owners these days is the uncertain economic situation we’ve lived in for the past almost decade, but there are signs now that the economy will stabilise and that means potential growth.
It definitely pays to have strategically sound business plans in place to optimise business during economic growth!
Regardless of the economy, let’s take a positive approach to the upcoming year and plan for growth for your business anyway! This often means increasing resource to increase capacity. If well planned, it also can mean increased gross margins and improved profits.
Here’s our recommended path forward for business strategy planning requirements for the new financial year:
- Nominate your overall annual sales and expenditure budgets.
- Nominate your overall intended direction forward for attaining planned growth. As a leader you must show clear direction to your team.
- Nominate clear planning dates for your team to work to – first draft, final draft and board approval dates.
- Bring key stakeholders together as early as you can in the planning process.
- Many business owners try to create the strategic business plan alone. This is a huge mistake. The more responsibility and accountability you are able to give your managers, the stronger your business progress will become. Giving those stakeholders clear and unwavering direction is the key.
- Key performance measures for each department and team member need to be built into your plan – department by department (by the department manager).
- Overheads and expenditure for each department must be fully completed.
- Considerations for changes in gross margin such as purchase price and exchange rate forecasting must be completed, and finally, revenue targets must be allocated to business units.
Too often business owners only consider revenue increase, but the reality is that all of the above planning points make a much more significant contribution to business profitability than revenue increase/decline.
Finally, we encourage you to also consider your milestones for achievement of planned goals and what rewards you might put in place, as this keeps employees engaged and motivated in accelerating the growth and profitability of your business.