Use this framework to develop your business plan.
Everything has a starting point.
A new year, new day, new job, new business, new career, new relationship, new home, new holiday, the list could go on…
Starting something new can be daunting, overwhelming, and exciting for many. When we are clear about what we want from the new thing, it is like going on an adventure and enjoying the ride, even with all the ups and downs.
How do we be clear - we plan!
Creating or developing a plan for what you want to achieve is like giving yourself a roadmap for your adventure. The trip you will go on to get from the starting point of your new thing to the different destination points you want your new thing to give you.
Let's take starting or being in business. Every year or every opportunity can be a starting point for arriving at a new destination. By creating a plan using a proven framework and doing this consistently, the adventure of starting or growing your business can still be daunting and overwhelming. However, it will also be exciting because you will have greater clarity of your direction or what you want to achieve. Knowing where you want to go is critical; Steve Maraboli says, “If you don’t know exactly where you’re going, how will you know when you get there?”
Having a plan for your business is your roadmap to the future. You want the plan to take you from where you are now to where you want to be, your destination, and the goals you have set for yourself.
There are four key dimensions to consider when planning your business. Before sharing them with you, let's discuss plans and planning. They are two different things. Having a plan is one thing; however, planning is another ball game. Dwight D. Eisenhower's opinion was that "Plans are nothing; planning is everything." This implies that whatever you plan, you will be obliged to deviate from in response to circumstances and unplanned situations that will occur. This is the usual whirlwind of any business. There will be deviations, opportunities, changes, and disruptions. These are like tourist routes on your roadmap, your plan. These tourist routes allow you to see if any adjustments or changes to your plan are needed. The power of the plan is to give you the confidence that what you are focussing on is the most essential action to get to where you want in your business and life.
The Journal of Management Studies highlighted that companies with written business plans grow 30% faster, and the Journal of Small Business Management identified that 71% of fast-growing companies have strategic plans, business plans, or similar long-range planning tools in place. It all starts with having a proven framework to create your plan, which gives greater confidence that all the areas will be covered as you go on your planning journey. Even if you already have a plan for your business, you can use this framework to check in and ensure that all the areas to consider have been included.
Four dimensions provide a framework for creating and implementing a plan. We all have different levels of strength in our thinking around these dimensions, so that some areas will be more challenging.
Dimension One - Define the Big Picture
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Defining the big picture starts with purpose. When you are clear on your purpose, it will guide your life decisions, influence your behaviour, shape goals, and provide a sense of direction and meaning.
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Define Your Vision – brainstorm what legacy you want to leave and what difference you want to make in the world. When you can language your vision, you can achieve it. If you cannot language it, you cannot have it because you do not know what it is.
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Define your Mission - how will you achieve your Vision? Who do you and your team need to be, what standards will you lead by, and what will your approach be to lead the business?
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Define your Values - values are like fuel in the engine of your vehicle that is taking you on your road trip. Your vehicle is your roadmap, your business plan. Values will guide your decision-making and choices to take your plan forward.
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Define Your Wildly Important Goal (WIG). Decide your five-year goal and think big to go big! Your goal is not locked in concrete and can change, so do not get hung up on whether it is right or wrong; there is no such thing! Then, decide on the one-year WIG that will get you started towards your destination, your strategic goal.
Dimension Two - Structure the Plan
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Structure the plan around the categories or areas of your business. Rate your satisfaction with each category or area, i.e. sales or marketing.
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Identify the goals for each category based on how you rated your satisfaction and what you want to achieve.
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Ensure the goals you identify are all linked to your Wildly Important Goal for the year.
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Use the SMART framework and ensure your goals are Specific, Measurable, Achievable, Relevant and Time-bound.
Dimension Three - Act and Prioritise
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This is where the differentiation of having a 'plan' and 'planning' comes into play.
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The plan is developed in dimension two.
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The plan is implemented by taking action and prioritising using quarterly planning.
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Watch out for a future blog to delve deeper into quarterly planning.
Dimension Four - Empower and Collaborate
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Empower yourself to make great decisions for which your future self will thank you.
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If you have a team, even if it is only one other person, empower them to be involved in developing the plan - when there is no involvement, there is no commitment.
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A Harvard Business Review article highlighted that 95% of employees need help understanding their company's strategy.
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Get support from a business coach or mentor, or join a mastermind who can support you in thinking differently.
By consistently using this as the framework to develop and review your plan, the success you want to achieve will be yours as you move through time. In doing so, you will grow and learn, developing your thinking strength in these dimensions in the process!
If you would like support in developing your Business Plan, book your Complimentary Strategy Session with a lead coach at Leaders Network.
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