6 Strategies for Successful Business Planning
6 Strategies for Successful Business Planning
Running a small business is never easy. Whether you’re just starting out or have been running your own company for years, whether you have a few loyal clients or a whole lot, whether your overhead is minimal or substantial, running a successful and profitable business takes a lot of work—rewarding work for sure, but hard work nonetheless.
Luckily, there are some ways to make it easier. While the Oregon Small Business Development Center (SBDC) has loads of resources—some we’ll tell you about here—that can help small-business owners, the best step you can take to improve your odds of success is to plan properly. In this article, we’re outlining six strategies you can implement for successful business planning.
1. Start Planning Early
It’s never too early to start planning. Never. Whether you have an idea you want to turn into a business, you have a business ready to launch, or you already have a successful business and are thinking of what to do next, a strategic plan is crucial.
The Oregon SBDC is here to help with your business planning at any stage. From startup to scaling, our advisers have the tools to help you build a solid foundation for your business. Tools like LivePlan simplify business planning, budgeting, forecasting, and performance tracking for our clients.
GrowthWheel is another tool our advisers use that provides a visual toolbox to help business owners make better decisions and take action in their businesses. Both of these tools are offered free of charge exclusively to Oregon SBDC clients.
2. Set Your Goals
Your strategic business plan needs to include more than just ideas. While the vision of a business is an important component, a key factor to success is setting SMART goals—specific, measurable, achievable, realistic, and timely.
Oftentimes a big goal is tied to several smaller goals you need to achieve along the way. For this reason, some business owners set goals by month or quarter, while others set goals for the year. The right timeline to choose depends on you and your business goals.
3. Identify Your Staffing Needs
When people think about goals for businesses, they typically think about financial targets they want to hit, potential physical expansions, new strategies for upcoming product launches, and the like. But another factor that merits consideration and forward planning is your business’s future staffing needs, especially in today’s climate.
If your business goals include expanding your operations, the number of full-time, part-time, and/or contracted workers will likely change. The cost and time it will take to hire for your staffing needs requires planning.
4. Understand Your Financials
Awareness of your business and personal finances is a vital part of successful business planning. Even if you’re “in the black” and seeing profits, understanding your finances is important when making decisions and planning for the future of your business. And this means knowing more than just what’s in your bank account.
Understanding how much money is coming in and going out each month, product costs, the cost to manufacture, the cost of goods sold, labor costs, fixed and variable costs—these are all numbers you need to know so you can make decisions for your business. Your financial indicators are the drivers of your business, and if you don’t understand them, it can be easy to make a costly mistake.
5. Put Together Your Marketing Plan
A marketing plan may sound like the kind of thing that only big businesses with their own massive internal marketing departments need to do. But small, local businesses need a marketing plan, too. And just like any other part of running a business, your marketing requires a carefully thought out and meticulously detailed plan.
From the channels you will use to the creative you want to deploy to your monthly marketing budget—write it down. Building and implementing a successful marketing plan can help your business grow exposure and revenue.
6. Evaluate the Previous Year
When you’re running a small business, there are times when you’ll need to look back in order to move forward. Looking back can be fun, especially if you’ve experienced growth in your business and can count your wins over the year. It can also be hard, if you’ve experienced a challenging year that didn’t live up to your expectations.
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