In This Episode
One consistent theme we hear from small business owners is that they don’t have the time to pull together a plan for their business. As we’ve often said, this “time” pushback is code for folks not understanding why something is important enough to pay attention to so that they’ll make the time for it. Owners will justify not pulling together an annual plan because they know it will be “wrong”.
Well, the point of pulling together an annual plan for your business isn’t to get it “right” but instead to get your best thinking pulled together and provide a beacon of light to guide everyone in the organization. It’s more about the mentality of looking ahead and trying to make things happen on purpose vs. constantly reacting to what the outside world is throwing at you.
Keep in mind that when we’re talking about a plan, we aren’t referring to a 50+ page business plan. We are referring to MVP’s 7 Keys to Success. One of the first things we do with all or our coaching clients is to pull together what we call a Profit Plan (you may refer to it as a budget). The Profit Plan is where you give your best shot at forecasting sales and expenses for the next 12 months. This is more than simply an exercise of plugging a bunch of numbers into a spreadsheet or QuickBooks.
Chances are you won’t be able to do this Profit Plan alone. So that means you’ll have to engage some other members of your team. This is perhaps one of the biggest, and often missed, benefits of pulling together a Profit Plan. What better way to get a sense of your team and how they think and work together than to have them pull together some plans for the business. Don’t worry, you won’t have to tell them how much money you or any of the other team members make, but you’ll want to be open with just about everything else when getting your plans pulled together.
During tonight’s show we provide some good guidance for how to get this plan started and how to use it throughout the year. We also share several stories about clients of ours who wound up being better forecasters than they ever thought they could be, even though the plans didn’t go exactly as they thought! There’s no better time to start pulling together a plan for the next 12 months than now!