In general, we can all agree that things usually go better once you create a plan. When it comes to businesses and building businesses, this is especially true. Without a plan, things can go south really quickly.
The fact is, though, around 60% of businesses don’t have any sort of plan aligning with a budget. Even more alarming is the fact that more than 95% of workers aren’t clear on their company’s strategy.
Why are these so critical to a business?
Profitability is intentional. To be profitable, you need a vision and a plan. When everyone can work toward a common goal, it makes things easier and makes profitability more achievable.
Many businesses struggle to plan for a multitude of reasons. “I can’t wait to complete that 30-page business plan,” said hardly anyone ever! Okay, I am a part of that small percentage of people who loved creating my business plan. But for most people, it is not fun, especially the budgeting and forecasting portion. I know it is intimidating for many of my clients (used to be when they didn’t have my support). While the numbers are a critical part of any business plan, it is important to look beyond the numbers as you consider the benefits of having a plan. This is your chance to envision your future business, and that is exciting! Furthermore, a plan can be used to map out ways to improve productivity, delegate tasks, and keep a good work environment. This can all be done at little or no cost.
Another struggle business owners face is addressing faults in their business. While these can save time and money in the long run, they can also feel like failures to a business owner. The truth is, though, the sooner you address a problem, the less effect it will have on your business. It’s important to understand that everyone makes mistakes and instead of ignoring them, learn from them.
How to create your own plan
Where do you get started? Think of analyzing your SWOT – strengths, weaknesses, opportunities, and threats. By creating a clear picture of what your business has and needs to improve on, you can start to plan out the future and how to profit from your new improvements.
You don’t have to change your entire business just to see some results, either. It is best to start small and see what you can accomplish with the help of your team. While working together, you will likely notice profitability rise just by getting everyone on the same page.
Need guidance? I’m here to help. As a business solutions expert, I have helped dozens of businesses untangle complex issues and clarify a path to greater profitability.
Check out my free guide The 5 Missteps That Limit Your Business’s Profitability (and what you can do to fix them) to unblock common barriers to profitability that I observe among everyday businesses like yours.