EXISTING BUSINESSES NEED PLANNING TOO!!!

Every business needs to plan




There is a common myth that associates planning with start-up businesses. This misconception often leads to existing businesses suffering from inertia, or fire fighting on a regular basis. There are a host of other reasons why existing businesses do not seek help. As a result they miss out on the opportunity to manage themselves better and to produce improved results.



As an owner or manager of a small or medium business, can you afford not to plan? Do you often plan on the back of a beer mat and let your business develop according to external events? Or do you plan for priorities, and manage your growth proactively. Like any other business activity planning takes time and may not be seen as a priority.



A strategic plan, annual plan, operational plan; it does not really matter what term you choose to use. What does matter is the implementation and the management of the plan.



Benefits



Guide your growth: the growth of your business will depend a lot of variable factors, including overall economic trends, location, market trends and other elements. Prior planning acts as satellite navigation system for your business. That is its purpose, is to guide and influence business growth, so that businesses can move proactively towards defined objectives rather than just reacting to external events.

Manage priorities: Strategy is focus. Following a strategy will enable resources to be allocated to where they will provide the most leverage. It will also enable you to work towards your strengths and away from your weaknesses. Developing your company by doing the most important things, according to your long-term objectives will certainly lead to a sustainable business.

Assign responsibilities: Finding the right staff will very much depend on organisational priorities and the long term vision for the business.

Track progress: Alternatively you could think of a plan as a business positioning device. With a plan, you can track your progress towards goals, measure results, and manage the business. Without a plan, how do you know whether or not you are moving in the right direction? What do you measure against?

Plan for cash: Profits are not cash, and cash is not intuitive. You spend cash, you don’t spend profits. Many businesses do not plan well for cash, hence the difficulties encountered with cash flow. Whatever else, you do you will have to plan for cash.

Food for thought



Specific responsibilities, activities, deadlines, and budgets: Can be thought of as milestones. They are the bricks and mortar of a business. Your business will only grow if you are able to cement all the bricks together to build an identifiable structure.

Financial plan: One of the most important gains from an annual plan is the financial plan, which of course focuses on cash flow. A business needs to organise its priorities to ensure that they attain the right level of income in order to remain in business. Growth costs cash.