5 Tips to Proper Business Planning

Look at your business. Now look at your business planning. Do you have concrete plans in place to

ensure continued success? What sets mediocre businesses apart from great businesses is the ability to

properly plan their business. Business planning exceeds what you are going to do that particular day.

What are your goals are for the entire year and beyond?

Business planning involves an exemplary attention to setting goals. Your goals need to be specific to

your business or your organization. Use the following formula to be successful when you're setting

goals during your business planning. Your plans should consist of goals which are specific, measurable,

realized, true, and timely.

Specific

Now is not a time to use generalities. You must state the purpose behind your goals. Instead of a goal

being, "my business will make money this year for the company", try "my business will make $10 million

this year by aligning profitability with corporate sales metrics." You notice the specific purpose of the

goal versus the vagueness of the goal? Once specifics are out of the way, move to the next step.

Measurable

How will you know if your business is succeeding or failing verses your set goals? Measuring your

performance allows you to better align your goals if performance is lagging. Key indicators must be in

place to visualize. Your goal is to make $10 million dollars, so an indicator would be financial monthly

financial results. If your profitability is not aligned with corporate sales, then you must adjust your

strategy.

Realized

During the business planning process you have to account for all external opportunities which may

cause you not to achieve your goals. So when you are planning, don't make goals too lofty as to not

attain success. So instead of stating you will make $10 million in a year, try making $833,333 per month.

The end result will be the same, but more manageable.

True

Do you want to be known as a leader who can execute plans and deliver results, or a leader who is

incompetent and cannot meet company expectation? If you are the leader who values success, then

during your business planning you will take into account whether or not your goals are realistic. Seek

guidance from peers as well as supervisors if you are unclear of the goals setting process.

Timely

Can you deliver results in the time frame you set up during your business planning? If not, you need to

realign your plans. The best laid plans are plans which have a beginning, middle, and an end. Be careful

during your business planning not to give too much or too little time to a goal. Both are detrimental

to goal achievement. Too much time shows lack of commitment. Not enough time shows you may be

conceited.

Business planning is the cornerstone to a successful business. Without planning, you can expect poor

performance. Lower than expected performance leaders to you being replaced with someone who will

be able to deliver results.