It is one thing to set a target for yourself, it is quite another to plan how you will achieve it. When I establish my annual goals, I ask myself, “How will I accomplish these goals”? This forces me to plan the tactics, strategies and actions I need to take to achieve my targets. For example, if your business relies primarily on referrals, identify what you can do to increase the number of referrals you receive.
In her book, Get Clients Now!, author C. J. Hayden suggests using a monthly tracking sheet. This means setting specific monthly goals, planning what action you will take to generate new business, and tracking your progress. She suggests that you engage in a minimum of ten different marketing activities each week. This can include networking, prospecting, cold calling, sending mailers, speaking, etc. A speaker I know spends most of his Monday planning and strategizing his week, determining exactly what activities he will execute in the upcoming few days.
How should you plan your business? It all depends on what you want to accomplish and what is important to you. For example, you could increase your revenue significantly over the next 12 months but it would require spending less time with your family. Only you can determine what is most important. And this will change depending on what stage of life you are in. What is important to you now may be completely irrelevant six months from now. Here are five key areas to plan.
Revenue
If your business is like most, you likely have more than one product or service; therefore breaking down your sales into specific categories makes sense. This allows you to track your progress in each area and see where you can improve year after year. Plus, you can also determine the products or services you should stop selling because they are not generating significant sales.
Profit
Obviously determining your gross sales is important. More importantly, though, is the amount of money you have left over at the end of the day. In other words, what profit are you going to generate? A business owner I know plans his business by deciding what profit he wants to earn by each year. He then creates his plan backwards to determine how he will achieve this. Remember, you can have incredible sales but still go out of business.
Expenses
Controlling expenses is a critical aspect of running a profitable and successful business. Large organizations budget expenses but most small business owners wing it and pay the bills as they come in. If you want to increase your revenues, you need to know how much it will cost you to generate your targeted sales. By analyzing all of your expenses you’re likely to uncover several areas that could be trimmed. This freed up cash can be redirected to marketing your business. The result is more revenue with no additional out-of-pocket expense.
Vacation and Personal Time
How much free time do you want for yourself in the next year? You can very easily get sucked into the vortex of running a business and forget to take a vacation or personal time to recharge your batteries. Block those days in your calendar early in the year. This signifies a commitment and allows you to plan your business around these personal days. A business acquaintance spends part of his summer scuba diving so he plans his year accordingly. He works extremely hard but plans his vacation so he can enjoy his favorite past time.
Personal Development People who invest in themselves consistently outperform those who don’t. Identify the skills that will help you become more successful. Determine what books, programs, courses, or people can help you learn these skills and take action.
Planning does take time. However, it is time well invested. Make the time in your life to create a plan for this year’s business. Review it regularly and make the necessary changes as you progress forward. You’ll be glad you did.
