To have a profitable business and sell a business at the best possible price - you need to plan and action the plan.
A good business plan will be the guiding light for everything that happens in your business and your life.
Why do I include "... your life" in that statement. Because your business is the vehicle to create the lifestyle you want and deserve.
If you don't take time out of your business to plan and prepare for success then you are effectively planning NOT to plan and your business is effectively dragging you along behind it!
"If we do not change direction, we are liable to end up where we are headed.” - John Whitmore author of "Coaching For Performance"
However, success not only relies on a good plan but also good execution. There are many reasons why business owners do not create and work to a strategic plan:
- They don't know they need one
- They don't understand strategy
- They believe it is a waste of time
- No-one ever reads it or follows it
- It is a lot of work and just sits on the shelf collecting dust
If it is a lengthy document and put together badly, then yes, it is a waste of time and yes, it will sit on a shelf and collect dust.
However, if it fits on a single page, is easy to understand and is created and tested properly, and then executed, it is a fantastic tool for guiding the business! It comes down to strategy AND execution. Let's look at some scenarios:
If there is a very low level of strategy in the business and a low level of execution, then basically the business is GOING NOWHERE.
If there is a low level of strategy but high execution, then the business is BUSY BEING BUSY! In other words, lots of day to day activity but no vision of where the business is going!
When there is a high level of strategy and planning but a low level of execution, then everyone in the business is FRUSTRATED.
A high level of strategy and good execution leads to SUCCESS - provided the strategy is a good one! That's where the testing comes in.
HOW TO START: In order to create a business plan I recommend you start by describing in writing your ideal life style "at some point in the future". The timeframe is very much dependent upon your own personal circumstances and where you are at right now. Once you have the vision for your ideal lifestyle in mind, then think about what your business would have to be like to sustain that lifestyle.
- How big would your business be?
- What would be the monthly / annual PROFIT (not turnover)
- How many people would be in the business?
- What would your role be - how many hours per week, doing what?
- How much would it be worth if you wanted / needed to sell?
- Could you sell it or would you exit some other way?
NEXT STEP: Work backwards from the vision you have just created and set milestones and measures. (I call it 'backcatsing' - the opposite of forecasting). Work backwards to the present time and start taking action on your plan.
If you are a business owner and want to know more about my planning and accountability process and how I can help you, then book a complimentary chat with me. Just click the Schedule A Call button below.
Alternatively, take my quick saleability quiz and immediately get a personalised report to tell you the key strengths of your business and areas that need working on.
I provide the tools, mentoring, and accountability to create a practical and actionable plan to grow your business. Through one on one or group mentoring I re-energise business owners to focus and execute their plans for SUCCESS.
WHAT MEMBERS AND WORKSHOP ATTENDEES HAVE SAID