Business Plans Don’t Last Forever
Business Plans Don’t Last Forever
It’s highly likely you have outgrown your business plan when:
1. You see and are acting on major opportunities that were not visible last December when the plan was created... and you can’t or won’t say no to them.
2. The programs and projects that are now the prime focus of the company cannot not be found in the original plan.
3. Management team can no longer live within their discretionary budgets... in fact they are spending money on things that were never envisioned or approved in the plan.
4. Production or service delivery functions of your business can not keep up with the sales demand, even with extensive use of overtime.
5. You have successfully hired all of the people in the hiring plan... and the requests for new hires keep on coming.
6. Your original cash plan had you comfortably living within your credit line limit for most of the year... you have now been maxed out for the last three months and next month’s cash demands clearly can not be met.
7. It’s clear the right hand no longer knows what the left hand at your company is doing. It’s obvious to you that your team is not on the same page.
8. A major competitor has either just entered your market place... or one just went bankrupt... and you must take significant action now!
9. The gain or loss of one or more significant clients has the impact of 8.0 on your Richter scale.
10. You aren’t sleeping, you’ve gained ten pounds, you haven’t played golf in months, and your wife and kids don’t recognize you... and you are wondering why you ever started this business.
If more that a few of the above scenarios ring true for you, here are some simple, effective planning strategies that can help you insure that your plan stays current longer:
1. The Plans... keep them simple. Short, concise to the point. Cut all of the fluff and filler.
Have each profit center, cost center, all major projects and programs have written plans. If it is important enough to invest in a manager or team, they need to a have a plan, it needs to be in writing, one page is probably enough…and everyone needs to be able to see everyone one else’s plans.
When plans are concise... they are easy to change! A good friend recently advised, “Be wary of excessive verbiage”. Insist that your management team write clear statements of what is to be accomplished, by when, for what purpose and be sure to have explicit, measurable goals.
2. Budgets... critical tool for fast-growing companies. Haven’t mastered the process yet... get outside help. Management accountants, consulting controllers and CFOs and some CPAs can train you and your team how to make the budget process your friend.
3. Timely, Accurate Monthly Financial Statements... without them, your company is like a Ferrari going down a dark country road at 120 miles per hour without headlights. There is a serious accident about to happen. If you can’t read your financial statements (and many executives can’t), get help!
4. Monthly Business Review... recent surveys we have conducted indicate less than 20% of businesses with management teams of five or more managers have a regularly scheduled monthly business review. This may be the most important meeting in your company; this is where you walk through the financial statements and review all critical projects and programs.
5. Forecasting... this can be a very simple, but highly effective process for eliminating surprises. Especially the “Ooops... we are out of cash surprise”! Most successful companies take their budget spreadsheets and turn them into a simple forecasting process by dropping in the current month actual results and then selectively fine-tuning the future month’s sales, expense forecasts, new hires, capital expenditures, updates to projects and programs. Keep it simple... don’t create another bureaucratic nightmare!
Final thought: In the end it is not the quality of the plans that counts... it’s execution, results and customer satisfaction.
Business Plans Dont Last Forever - To learn more about this author, visit Jim Horan's Website.
Like this article? Share it with your friends
Business plans... you either love them or hate them. They are a beautiful thing when they create a unified focus and alignment across your company... And empower your team to go out and do what they must do to produce results. But fast-growing companies outgrow their business plans. Often, it is just a matter of time, because business plans don’t last forever!
It’s highly likely you have outgrown your business plan when:
1. You see and are acting on major opportunities that were not visible last December when the plan was created... and you can’t or won’t say no to them.
2. The programs and projects that are now the prime focus of the company cannot not be found in the original plan.
3. Management team can no longer live within their discretionary budgets... in fact they are spending money on things that were never envisioned or approved in the plan.
4. Production or service delivery functions of your business can not keep up with the sales demand, even with extensive use of overtime.
5. You have successfully hired all of the people in the hiring plan... and the requests for new hires keep on coming.
6. Your original cash plan had you comfortably living within your credit line limit for most of the year... you have now been maxed out for the last three months and next month’s cash demands clearly can not be met.
7. It’s clear the right hand no longer knows what the left hand at your company is doing. It’s obvious to you that your team is not on the same page.
8. A major competitor has either just entered your market place... or one just went bankrupt... and you must take significant action now!
9. The gain or loss of one or more significant clients has the impact of 8.0 on your Richter scale.
10. You aren’t sleeping, you’ve gained ten pounds, you haven’t played golf in months, and your wife and kids don’t recognize you... and you are wondering why you ever started this business.
If more that a few of the above scenarios ring true for you, here are some simple, effective planning strategies that can help you insure that your plan stays current longer:
1. The Plans... keep them simple. Short, concise to the point. Cut all of the fluff and filler.
Have each profit center, cost center, all major projects and programs have written plans. If it is important enough to invest in a manager or team, they need to a have a plan, it needs to be in writing, one page is probably enough…and everyone needs to be able to see everyone one else’s plans.
When plans are concise... they are easy to change! A good friend recently advised, “Be wary of excessive verbiage”. Insist that your management team write clear statements of what is to be accomplished, by when, for what purpose and be sure to have explicit, measurable goals.
2. Budgets... critical tool for fast-growing companies. Haven’t mastered the process yet... get outside help. Management accountants, consulting controllers and CFOs and some CPAs can train you and your team how to make the budget process your friend.
3. Timely, Accurate Monthly Financial Statements... without them, your company is like a Ferrari going down a dark country road at 120 miles per hour without headlights. There is a serious accident about to happen. If you can’t read your financial statements (and many executives can’t), get help!
4. Monthly Business Review... recent surveys we have conducted indicate less than 20% of businesses with management teams of five or more managers have a regularly scheduled monthly business review. This may be the most important meeting in your company; this is where you walk through the financial statements and review all critical projects and programs.
5. Forecasting... this can be a very simple, but highly effective process for eliminating surprises. Especially the “Ooops... we are out of cash surprise”! Most successful companies take their budget spreadsheets and turn them into a simple forecasting process by dropping in the current month actual results and then selectively fine-tuning the future month’s sales, expense forecasts, new hires, capital expenditures, updates to projects and programs. Keep it simple... don’t create another bureaucratic nightmare!
Final thought: In the end it is not the quality of the plans that counts... it’s execution, results and customer satisfaction.
Business Plans Dont Last Forever - To learn more about this author, visit Jim Horan's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
|||
Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|||
Casey GollanCasey Gollan, Business Coaching & Mentoring Programs. Add $1 Million to $10 Million in the next 1 to 3 years. Since 1996 Casey has to added hundreds of millions of dollars to businesses. Watch a free video see client results Business Coaching website. - Visit Casey Gollan's Website |
|||
Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
|||
Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
|||
David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
|||
Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
|||
Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Jim's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
|
||
|
||
|
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 A Clean Desk What’s Wrong With Your Site? Reference Check Form Attract Desired Careers Dismiss a Franchise |
|
 | ||
 |
Top Social Business Blogs
Top Social Entrepreneur Blogs | |
 |
Top 50 Diversion Blogs
Top Diversion Blogs of 2009 | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
|||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
