Why Create an Annual Business Plan?
Can you imagine going on a road trip without knowing your destination? Or, building your house without plans? The same can be said about running your business without a plan.
They say that -If you dont know where you are going, any road will do.- But if you dont know where you are going how do you know when you get there? Or if the road you are on is the right road or the scenic, roundabout route?
Planning is essential if you have somewhere to go. If you want to grow your business, if you want to have more free time, if you want to introduce a new product, if you want to enter a new market.
You dont need to plan if you have reached your destination, if your business is all you hoped it would be. BUT have you considered that the world is changing pretty rapidly these days. Even if you are happy with what you have, your environment is changing, which, if you like it or not, is going to change your business.
Therefore, we come back again to the need to plan.
What planning is NOT:
It is NOT that 120 page document you created when you tried to get funding to start your business. That document was essential to start your business and it might be useful every 5 or so years if you change your business focus but it does not work for an annual plan.
It is NOT a document that is placed on a bottom shelf and looked at once a quarter or once a year.
It is NOT a to do list
It is NOT a wish list
What is annual planning?
Annual planning is about creating a vision for the next 3-5 years and then formulating concrete plans to achieve that vision.
It is about deciding on a future and how you intend to obtain that future, one year at a time.
It is about creating measurable goals that can be tracked.
It is about tracking those goals on a weekly and monthly basis so that they are actually achieved at the end of the year. Goals can only be tracked if they are measurable.
Annual planning is about understanding what is working and not working and using that to set further action plans.
Annual planning should also be able to able to monitor the performance and effectiveness of your staff over the year.
A well structured plan will also have the ability to be used as an effective monthly reporting tool by managers. It becomes the common language.
Planning is not only for whole businesses but also for business teams, divisions, projects and even individuals.
Planning brings about focus and clarity of what is to be achieved. Equally when done effectively, planning brings about alignment between team members and people become accountable for completion of their goals.
Planning brings about business success and bottom line results.
Related Tags: planning, success, results, strategy, winning, execution, implementation, reporting
By Graeme Nichol President of Arcturus Advisors. Please visit their website at http://www.arcturusadvisors.com. Arcturus Advisors works with business leaders to close the gap between great strategies and mediocre results. We use a process to get businesses to focus on a shared vision and agree on how to achieve results that far exceed individual contribution.
Your Article Search Directory : Find in ArticlesRecent articles in this category:
- The Beginning of the Cataloging Code
The first significant cataloging code was published in 1841. The realization that cooperation and s - In the Lap of the Gods 24
Life moved on. Lily became well liked by both students and staff because of her cheerful outlook on - In the Lap of the Gods 23
Does fate decide the future? Is it all mapped out for us, predestined, or can we influence what com - Write Your Memoir: How to Write About What Troubles You the Most
Everyone has a story to tell, and unfortunately those stories aren't always pleasant. What makes me - How Crafty Word Order Can Instantly Improve Your Writing
by Philip Yaffe I am usually very reticent about offering writing tips. Unless they are linked to - You Say Grandpa, I Say Deda
I was born with two grandmothers but only one grandfather. In nature's rules of familial supply and - My Russian American Dichotomy
I was a Russian girl and an American teenager. I had no choice about the first but I tried very har - In the Lap of the Gods 22
This is just an explanation for those who have read some of the other Chapters of, "In the Lap of t - Write a Book: 8 Reasons You Should Do it
Studies have shown that 82% of people want to write a book, but few of these actually ever achieve - Book Review: the Book of Common Prayer
Book Review: The Book of Common Prayer, "My carry-with-me copy is this size, and I recommend it for
Most viewed articles in this category:
- Real Estate Investment - Investing In Commercial Properties
As in any other type of investment, its obviously advisable to do your research well so that the pro - Taking Care Of Acne Prone Skin With Proper Skin Care Products
Although acne has been largely associated with teeners and puberty, the condition is not only confin - Do I Really Need Eight Hours Of Sleep Each Night?
What if you were told that there is no definitive answer for why we need to sleep? Your initial reac - How to Improve Your FICO Credit Score
If you didn't know this already, having a good credit score is more important than having a lot of c - 10 Tips for a Magnificent Memory
"Where did I leave my keys?" "What did I come in here for?" "Your glasses are on top of your head!" - Things You Might Like To Know About Card Companies
If you have a regular income and are 18 or over then you may be able to get a credit card. You will - Bad Breath in Babies and Toddlers
If your baby or toddler has had bad breath lately, not to worry. There are plenty of things you can - Starving College Students No More
The majority of today's college students are extremely Internet savvy. In fact, many of those studen - Cosmetic Surgery Financing: How Can You Get It?
Cosmetic surgery, a branch of plastic surgery, can be quite expensive, especially if you are plannin - Article Marketing, Improve Your Ranking With Links
Article Marketing, without a doubt remains the best free formula for attracting website traffic. At