The Importance of having a business plan
We're all in business for one reason... to make money, but you'd be surprised at how many small business owners, don't have a business plan.
When I first started out, I was asked what my 5 year plan is and I can remember looking at the person I was talking to and saying what do you mean?
In my mind, I'd created this business, I had clients and my plan was to simply do the work, and that's great if you want to stay the same forever, but to be able to grow, then you need to have a business plan and targets.
So after that conversation, I went away and asked myself where I wanted to be in five years time and the answer wasn't in the same place as I was then.
I'm not going to share my five year plan, but I will tell you that I set myself targets and so far I have reached those targets and I am currently six months ahead of schedule.
Has it been an easy road? Nope. Has it been straight forward? Double Nope, but we have got there and I'm excited for the future.
So, why is it important to have a business plan? A business plan helps you to set Target and Goals and gives you focus and accountability.
BUT, don't think of your business plan as set in stone... Think of it as a working document that you review every six months. What you goals were two years ago, may not be the same now and so your business plan can evolve and grow with your ambition!
What about in the short term?
As well as having a five year plan, it's useful to set yourself some short term goals too.
This is where having a three month plan can be really useful.
For example, your goal might be to increase sales by 20% in the next quarter and having a three month will help you focus on how your going to get there.