Dated: 3 January 2003
We’re sure you want to achieve many things in your business in 2003, but how can you improve your chances of reaching those goals? One of the best ways is by developing an annual plan. This plan will specify the business details for operating your enterprise.
In every business, many things demand attention. If you don't have a plan, it's easy to spend the whole day - the whole year - attending to the most pressing problems instead of building your business.
Remember if you don't know where you're going, you won't know when you're lost. So, it's time to develop your 2003 plan.
Developing an annual plan doesn't have to be a major chore. Set aside a day or a few hours for you and your staff to work on it. Get away from the store or the phones.
As you plan, be real. It's easy to say you and your employees will return phone calls immediately, hold staff meetings weekly, attend every trade show and have time to jog, but when did you become ‘SuperEntrepreneur’?
Here's a simple way to develop your 2003 annual plan:
Look at the past. Before going in new directions, see what's worked for you and what hasn't. In particular, identify which activities have been the most successful in terms of profit, not just income.
List your goals. Start this year's plan by listing all of your goals: How much money you want to make; products or services you want to add; changes in work patterns or operations. Include personal goals that affect your work life.
Get specific. Now, go over your list and make the goals specific and detailed. Put numbers with each goal. Let's say one of your goals is to increase business. Decide whether that means more customers, more income per customer or both. Then, list the number of customers you want, what type of customers and the target for average per-customer sales.
Develop steps. Identify the steps necessary to achieve each specific goal. For instance, to attract more customers, you'll need to increase marketing. List the ways you'll do this: advertising, trade shows, direct mail, etc. Put a number with each.
Estimate money. Put a dollar figure next to each step. The more specific you've been with each step, the easier it will be to come up with a range of costs for every goal.
Estimate time. Things don't just take money; they take time. Next to each step, estimate how much time. For instance, writing a newspaper ad may take two hours, while exhibiting at a trade show may take 40 hours of preparation and five days for the show and travel.
Estimate people. Figure out who will be responsible for each step and how many people will be needed. This gives you an overall sense of the total "person-hours" necessary to achieve your goals.
Prioritize. By now, you've got a list that would take more money, more time and more people than you have. So prioritize your goals and steps. Rate most highly the things you must do to keep your business going: your "bread and butter." Next, choose those with the highest probability of success. Hint: Don't try to do everything part-way. Eliminate several goals entirely rather than attempting them all halfway.
Write an action plan. Based on your priorities, come up with an action plan. Schedule the month, week or day you're going to take action on each step and what that action will be.
Reality check. Look over your action plan. Does it fit with how you and your employees truly behave? If your plan seems overly ambitious, it probably is. Go back and reprioritize.
Get consensus. Discuss the plan with all affected parties (employees, subcontractors, family members). Do they agree it's realistic? Are they willing to commit to it? Getting everyone on board improves the chance you'll actually achieve your goals.
Over the coming year, your plans certainly will change, the unexpected will happen. But having an annual plan will help you figure out what things you absolutely need to do - as well as keep you from feeling lost.
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