The importance of small business planning

Starting your own business is a lifelong dream of many.  Whether the reason is not to work for a boss, doing what you are passionate about or claiming financial independence, the vision often does not extend beyond opening the doors of the business.  Where should the growth of the business take it in the next few years?

No one gets rich without having a clear idea of how to accomplish it.  Success in any field needs a structure.  Yet the lack of planning in new businesses is ridiculously high.  You can temporarily get away without a plan if you run the business on your own (even if research has shown that only 7% of unwritten goals reach fruition).

However, the moment you employ other people, you run into problems.  You need to communicate to them what the business is trying to achieve, and how the jobs fit together into an integrated whole.

You also want to communicate clearly to potential clients that you have set up your business with the intention of growing it.  You need to be able to demonstrate that your business with its current team can get the job done, and that policies and procedures are in place to ensure this.

What unfortunately often happens is that early business success makes us think we don’t need a plan.

If there is not a plan with a clearly defined direction and guidelines, you become so task orientated that you lose sight of your goals. There may be a vague goal that revolves around increasing productivity, but without actionable steps it does not mean much.  You will not have significant growth in your business.

Ultimately, business failure comes down to one thing:  lack of knowledge.  Setting up a clear plan with actionable steps helps ensure that you and your employees know exactly where you are heading and how to achieve it.

A small business needs to be far more nimble and flexible than a big business.  Create your plans keeping this in mind.  If necessary, get outside help or hire people with the right knowledge to guide you in setting up a business plan.

Henry Ford said:  Before everything else, getting ready is the secret of success.  What are you doing to get ready for your business to flourish?

Feel free to contact Virtual Productivity Solutions for advice and guidance in setting up a business plan.

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