How to chart the course for your business

A business plan is a necessity to chart the course for any business. It can help you define where you want your business to be within a certain time frame and how you plan on getting there.

It’s like a roadmap to get to where you want to be. It keeps you on track to achieving your goals and is paramount to your success.

Business plans come in many shapes and sizes and there is no single right way to create one. But they all serve the same function: they are the blueprint for the success of a business. They give you direction and purpose; help you to allocate resources; and allow you to measure your success.

Here are some simple steps to consider when establishing a business plan.

Assess where you're going

If you don't know where you're going, how will you know when you've arrived? 

First, you have to define your vision for your business, that is, what you want it to become within a defined period. Closely aligned to your vision is your mission which describes what you want to be to your clients.

These big-picture goals provide your business with a purpose and the reason for your existence. They are the foundation for all other decisions. 

Take stock of where you are

Understanding your operating environment and the things that can affect your business is essential to executing your business plan. 

At a macro level, you must be able to do a thorough analysis of the environment in which you operate. For example, you must determine who are your competitors? What external factors would impinge on your plan? Do you have the resources to do what you want to achieve? 

Having answered these questions, you should then determine where you fit into the competitive environment.

It is recommended that you look at your practice and assess what you are doing now; your resources; and your strengths, weaknesses, opportunities and threats. Then determine whether you have the capabilities, knowledge and resources to follow through with your plan.

Develop a plan of action

Once you know where you want to go, you have to articulate how you will get there. You have to create strategies for achieving your objectives and define what needs to be done by whom, when, and how. You must get into an execution mindset at this stage. It's all well and good to have a big-picture vision, but realizing that vision means taking appropriate action.

In addition to your strategic plan, you must also develop marketing, sales, operational and financial plans. An important question to ask is: Do I have the money and resources to execute my plan?

Set measurable objectives

How will you know you are moving toward achieving your goals? One way is to make sure your objectives are attainable and measurable. Another is to develop metrics for tracking growth, costs and revenue.

You must measure by activity. For instance, assess the impact of your marketing initiatives or calculate the cost of servicing clients. Make adjustments, if necessary.

And finally, make sure your plan is flexible to accommodate changes over time.