Business experts across the globe unanimously agree on one thing: every successful business needs a plan.
Multi-billionaire and iconic entrepreneur, Richard Branson recently revealed that he drafted his very first business plan at just 15 years of age.
Whether you want to expand your business, be more competitive or hit certain goals, a business plan is an absolute must.
Here are the three things every business needs to understand about successful business planning.
Define your purpose
Clarifying the purpose and direction of your business is a must for any business plan as it allows you to see where your business will be over a period of time. Establishing your businesses direction also allows you to visualise another crucial aspect of business growth: what needs to be done for forward movement.
Without clarifying your purpose of why you are in business, it will be difficult to maintain goal oriented growth.
A three, five and ten year plan
One of the most popular questions when it comes to strategic planning is how many years should we plan? Thirty years ago experts said planning every ten years would suffice. However with technological advances, globalisation and market volatility, businesses need to develop three, five and ten year plans so they can stay in front of changes affecting their area.
Business planning is to a business what a scalpel is to a surgeon. It defines the routes that when taken will lead to profit and growth. And like a surgeon, strategic plans can meet detours and obstacles that call for adapting and adjusting, which is why it’s important to review plans on a regular basis.
No matter what your driving passion is, without sustainable financial success, you might as well work for someone else. That is why taking the time to construct a financial plan is a must for any business. A financial plan or budget will guide a business on day-to-day decision making and will yield information on the overall health of your company.
A well thought out financial strategy will factor in an additional injection of capital to fund growth and expansion such as bootstrapping, venture capital and even angel investors.
Bootstrapping essentially means the business funds itself because as the business grows, it re-absorbs profit to enable further growth. Venture capital involves firms that provide early-stage funding but are looking to gain a significant share of the company. Meanwhile, angel investing is, in most cases, affluent individuals willing to invest in businesses.
We’ve all heard the saying, “Failing to plan is planning to fail”, so it goes without saying that investing time in a business plan is time well spent.
Make sure your business plan is up to date, contact us for advice on financial and business planning.