I read the following article and I thought its really interesting and important information to remember for those who are trying to open a business, thinking on a business idea or personal project…
You can’t get somewhere if you don’t know where you are going. Sounds simple enough doesn’t it? Well, why are so many people embarking on business ventures without knowing where they are going?
You know you want to start a business and you know you want it to succeed. But ask yourself, how will it succeed? How will you get from A to B? A business plan is what will direct you and ensure you stay on path to your business goals.
Step #1: Start with a Vision
Think for a moment what you would like your business to be like 10 years from now. This is your vision.
Having a vision gives you direction; it helps you formulate what you most desire from your business so you can start to take steps to make that vision a reality.
The next step once you have the vision is to start thinking of ways to get to it.
Step #2: Set Your Long-Term Goals
What would you like to achieve within the next two years of your business? What would you like to achieve in the next four years? All of the long-term goals you choose must lead you to the direction of your vision.
Back track from your vision if it’s easier for you to think of long-term goals. In this we mean thinking of your vision, what needs to come before it, and then what needs to come before that. Soon you will be at the first goal you must meet to be on your way to success.
Step #3: Set Short-Term Goals
Your short-term goals will help guide you to your long-term goals, which will then lead you to your business’ vision.
What do you need to do to meet your long-term goals? Since your long-term goals are set at two years, schedule your short-term goals for each year.
By having deadlines for your goals, you will be much more motivated to accomplish them. You will have a path to follow that has check points to keep you moving towards success.
Step #4: Steps to Your Short-Term Goals
Breaking down your short-term goals into steps to achieving them is where the real work begins. This is what you will do each month to ensure you meet the short-term goal at a year.
For example, for the first month you may concentrate on marketing and your goal may be to gain your first client. To do this, you will write down all the things you will do to market your business. This could include create and send pamphlets, place an ad in the paper, and join your local small business association.
Step #5: Plan Your Business’ Finances
Go back through your goals and the steps you need to take to achieve them. Start with your vision and think about how much money you would like to have made at the ten year mark. Divide that amount by five to figure out how much you need to make every couple of years to be on track to your vision’s financial goal. Divide the bi-yearly financial goal by half to figure out your yearly goal.
While making money is always nice to think about, you also need to think about the money you’ll put into it. Go through each step to your short-term goals and place in an estimated expense. If you have a set amount of money you can spend on your business each year, you will be able to see what you can and cannot do to make that budget each year.
Business Plans Are Flexible
Dont feel tied to your business plan. After each year, assess the status of your business and if it’s on path to your vision. If it is not, there is no harm in adjusting it to meet your business’ needs. The finance store can also help with any necessary funding adjustments your business may need.
