Are you starting to plan how you can improve the profitability of your business this 2019? That is a good idea since preparing before next year arrives will help you analyse carefully what needs to be improved and what has to be retained among your current business strategies. In order for you to accomplish that, you need to start drafting your 2019 business plan.
Every entrepreneur knows that the business plan serves as the blueprint of a business. It’s primary purpose is to describe what the enterprise is all about. It will tell you about it’s objectives, financial forecasts, marketing tactics, and sales. In addition, this will help you identify the possible problems that you might encounter along the way, evaluate if you are meeting your goals, and measure your business’ progress.
Aside from clarifying the idea of your business, you will also need a business plan if you plan to get a bank loan or secure an investment. This is also helpful in presenting a proposal if you are looking for investors, clients, and suppliers.
How to Create a Business Plan
If you want to create a well-established business plan, then these tips below can help you accomplish that desire:
- Go back to your vision and goals.
Whenever you need to create a plan of any sort, you have to go back to the purpose of why you will make it—and it starts with your vision. What was the reason why you started this business in the first place? What did you envision about this business?
Now, what are the specific goals that you want to accomplish this coming year? So that you will not be overwhelmed by too many tasks, just choose a maximum of three goals. Make them SMART so that you will have a clear guide of how you will achieve them.
2. Identify the causes of profit leaks in 2018.
If your business is leaking profit, then you need to find out its source as soon as possible. The issue needs to be addressed so that next year it will not hinder your business from gaining more profit.
Some of the usual reasons of profit leak are the following: Unattended cash flow, fixed costs not factored during price calculation, financial reports not regularly reviewed, ineffective budgeting, expenditure on wastes, and invoices made on services that have not been delivered.
3. Create a strategic plan.
Once you have already identified your goals (which are aligned with your company vision) and the causes of profit leaks, you have to develop a strategic plan. This plan includes a comprehensive design of how you will hit your goals and resolve the issues. You will use the business’ SWOT so that your plan will be on track and realistic.
The strategic plan will help you focus on your advantage over your competitors. Overall, this will contain:
- Strategies– the specific methods you will use to reach your goals
- Long-term goals– these include your vision for the company in the next 5 years and your objectives and priorities within the duration
- Short-term goals– these are focused on your business’ current needs and condition
4. Make it short and brief.
The purpose of a business plan is to guide and remind you of what and how to accomplish the company goals. If it is too long, it will be a hassle to read. Also, it would have to be revised from time to time to adjust to the business’ needs.
5. Consider your target audience.
If you are running a business and you have a team working for you, then you have to show them the plan so that they can keep running with you in the business. For this reason, you need to write it with a language that all of your team members can understand. Avoid using jargons.
6. Hire a consultant.
In case you are having a hard time creating your business plan, then you can hire a business coach or consultant to help you make it. An expert’s advice can help you polish your plan of how your business can improve next year.
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