Generally, there are three main reasons why businesses don’t get to the next level
- Their plan sucks
- They don’t have plan B
- They suck at the implementation of their plan
The key to being out in all of these is to look from where you are now to where you want to be in the future and visualize what that looks like. It is about thinking in your mind about what does my turnover want to be, what does my profit want to be, what does my team structure look like, what am I doing in the business, how much time am I spending in the business, what is my business going to look like in future to be able to give me the profits I want. Once you are clear on that you can plan strategically for the future.
Planning
The most difficult aspect of starting a business is planning a business future. A good business plan is the backbone of every successful company. It lays out a detailed strategy of how you will achieve your goals and it ensures you that the roadmap for success when starting your venture. A well-written business plan can help you visualize your future. Stay focussed on your goals and give others in the industry a transparent look at your vision for the business’s future. Planning a business future is very important for any entrepreneur with an idea and ambition.
If you are planning your business future let’s say for the next 12 months, every 12 months is broken down into four quarters. Every quarter has got three months or 13 weeks in it. So once your forecast where you want to be able to go in the future, it’s about creating milestones and reverse engineering from where you want to be in the future back to where you are right now. Reverse engineer 90 days action plan so every quarter it’s about thinking about what are the one of the two or the three simplistic strategic moves which you need to be able to act in the next 90 days which is going to powerfully move me forward to my bigger goal.
It is mostly one or two strategic simplistic moves which will define your business’ future. It is important to remember that you are already working a ton of hours, you are already trying to run your business, and you have already got all the operations and all that kind of stuff in the background of what you need to do. It is about being clear about the future of your business and then thinking of all the milestones you need to be able to get what you want.
Step-by-step guidance
Following is the step-by-step guide on how to plan a business’s future
- Develop a deep understanding
You should have a deep understanding of what it will take for your business to succeed. For this reason, the business owner must be the sole author of the business plan.
- Have a business plan
A business plan is a researched and refined document. It is an essential part of business as it covers the following important aspects
- Business loans
- Equity funding
- Fix business objectives
- Review of your business idea
- Agreement between partners
The business plan is simply to define your goals and how will you accomplish them in the future. It is like a blueprint to accomplish your goals. It will identify
- The purpose of your business
- Company description
- Product or services
- Required resources
- Financial plan with financial statements
- Business management and operation
Executive summary
It is the first section of your business plan that sets the tone for what will be discussed. It should cover who you are, any research done on your market, and what you want to accomplish in the future. The executive summary should be persuasive so that it can attract the reader’s attention. It should not be more than two pages in length. It includes
- Company overview
- Business objectives and strategy
- Key risks and opportunities
- Executive summary highlights
Business description and overview
The business description should include the company’s name, business structure, location, and any relevant background information about founders or owners. It should also include the type of services or products offered by the company as well as any special features that make it stand out providing an overview of the company’s history, mission statement, and goals or objectives.
Organization and management
It includes details about the ownership of the company, who is part of the management team, and who are the board members. In addition to who the board members are you will need to describe why they were chosen to be a part of the board. The organizational chart includes the managers, employees, and other important point persons. Within this organizational chart, each managerial position should list the
- Name of the person
- The position
- Primary responsibility
- Education
- Number of years with the company
The legal structure of the business
There are four legal structures and it depends on you which one will you like for your business’s future
- Sole proprietorship
This is the kind of business structure that has only one owner and in this case, is you. You decide on things, you have the last say on everything
- Partnership
Two or more owners of the same business can file for the partnership status. All partners are financially responsible for the debts and taxes of the business.
- A cooperation
Cooperation can have many structures but the most typical cooperation organizational structure consists of the
- One board of directors
- 2 officers
- 3 employees
- 4 shareholders or owners.
- Limited liability cooperation
As cooperation, limited liability cooperation is a separate distinct legal entity. This means that LLCs can get tax identification numbers, open a bank account and do business.
Products and services
Using a business plan to outline what products will be produced or sold or what services are offered is a wonderful way to communicate to others. This section should highlight the biggest sellers, unique products, or services that your business provides. This section will show the heart of your business and what you are offering to the public.
Target market audience
A business plan will not succeed without understanding the target market. This description of your market is what you will need to know to create a marketing plan that aligns with the needs of your desired customers. The more specific you can be about your target market the better chance of success you will have. Define the audience and target market for your business, what type of product you want to sell, who is your target customer etc.
Competitive analysis
A good competitive analysis should be done before starting any new business project. It’s important to know what your competitors are doing and how they are doing it. You should know the strengths and weaknesses of your competitors to create a strategic plan for how the best compete with them in the marketplace. It will help you identify your competitors and you have to plan your business future accordingly.
Marketing and sales strategies
When it comes to marketing you need to keep in mind that there are three main types
- Integrated marketing is the combination of traditional and digital techniques.
- Direct marketing connects a customer with a product or service using non-traditional techniques such as TV, and prints. Mailers and phone calls etc.
- Word of mouth marketing is the process of sharing information about a product or service with others through conversation or reviews on social media.
One of the most important marketing strategies for any business is to stay organized and focused. It’s easy to get distracted by all the social media platforms and news outlets available. To maintain focus you can create timelines for posts, and plan out posts in advance.
Unique selling proposition
It includes what your unique selling proposition is what differentiates you, and what combination of features will your customer finds benefit them more than your competitors’ offerings. Like can you deliver faster than your competitors etc.
Production and operations
Production and operation are a big part of any business, if you are going to have a sustainable company, you need to have a process for getting the product made and distributed to your customers. There are two main types of manufacturing
- Mass production generally relies on a few standard steps that go into making a product
- Craft-orientated production typically emphasizes craftsmanship and detailed artwork.
Planning out your production and operations is an important part of creating a business plan. You must determine what materials you will need, where to get them and how much they will cost and how you are going to store them. Once the production process starts all you have to do is figure out how to keep up with the demand without running out of inventory or wasting anything that can’t be used.
Conclusion
Don’t overwhelm yourself, don’t think too big when it comes to all the strategies got to work on. Make a business plan as it is crucial if you want to develop a quality strategy for your business’s future. The size and nature of your business don’t matter. You just need to learn to write and implement a business plan for a better future.