The Lucky Sevens of Annual Business Planning

Whether you are a part-time, weekend mompreneur or a full-time mega mom-corporation, business planning is essential. I’m not just talking about the importance of having a business plan; I’m addressing the need to have annual plan – a roadmap – of where you want to go in the next 12 months. Without one, you and your business will meander aimlessly never knowing if you’ve achieved the level of success you want or deserve.

All too often, businesses – especially small, home-based businesses – feel that business plans and business planning is something only large corporations do. Nothing could be further from the truth. In fact, chances are highly likely that those large corporations got there because of planning!

The most common method of formulating your annual business plan is creating a new business plan or revising an existing one. However, all too often once these plans are created, they sit in a binder until the following year when they are recycled as coloring pages for budding toddler artists.

I’m no different. For years, I would revise my existing business plan, only to neglect to use it as a daily strategic operations tool. Business plans and operations plans become segregated from each other but also your mission, which is just about as effective as trying to get a child clean in a bath full of mud. I learned to increase the effectiveness of my business planning by following seven simple steps. (Really, they are very simple.) To align your vision, actions and results in to achieve the next level of success, try adopting the Lucky Sevens to Annual Business Planning.

1. Know your mission and vision. Seems simple enough, doesn't it? The truth is, though, that most companies operate without a clear mission or vision; often because they think they don't need one or they will be to difficult to create. They are neither. Simply stated, your mission is a declaration of why you are in business, and your vision is a statement of where you want to go. Be sure you can clearly communicate both to yourself and others.
   
2. Plan for your business and your family. These two entities are not mutually exclusive. They continually overlap. Be sure to consider your family's needs as well as your business needs when planning for the next 12 months. For example, what will you do if you have an urgent meeting with a client (rescheduling is not an option) and your child is home from school? Or, is it doable to launch a new product the same week your twins are turning one? Whatever the situation, be sure to incorporate your family into your business planning.
3. Stay true to your authenticity. Stop comparing yourself to what everyone else is doing. Like most of our parents said to us, "If all your friends were jumping off a bridge, would you do it too?" No, you probably wouldn't. The same rule applies in business. Be aware of what others are doing but avoid comparing yourself to those businesses. In fact, the only comparison you should be making is with your future self. Instead of keeping up with the Joneses, keep up with your potential by aligning your business with your values and integrity.
   
4. Learn from last year's mistakes and success. Glen whatever insight you can from your previous year's actions. Did the direct mailing have a zero return on investment? Find the cause and make adjustments (or scrap direct mailings this year). Did you the samples you handed out to fellow parents at the school parking lots yield you at least ten new customers? Then by golly, you might want to do that again.
   
5. Plan for success. Success can be a scary thought. Everyone wants, but how do you plan for it. Often, it is so much easier to plan for mediocrity. However, when you plan for mediocrity and hope for success, you stunt your growth. Why not plan for success instead? When planning, consider what you will do when you finally land the appointment with the potential client you've been prospecting for the past six months? Can you meet their demand? Are you prepared to meet their needs? Are you prepared to meet your needs when success arrives? Can you still meet your own needs when this happens?
   
6. Blend together a results-oriented business plan (including your business) with a strategic action-oriented operations plan to align your decisions and forward movement company-wide. Your annual plan and/or business plan does not need to be a lengthly dissertation that rivals the 700+ page Harry Potter book on your son's nightstand. In fact, a shorter plan can often keep you more on track than one diluted in too many details.) What your plan does need, though, is to be prepared as both a working document for you (no more leaving it on the shelf to collect dust!) and a succinct, written vision for potential investors.
   
7. Get SMART with your short- and long-term goals. Goal setting is an integral layer in the foundation to your success. However, goal setting alone isn't enough. You have to get SMART with your goals. SMART goals have traditionally been formed with specific, measurable, achievable, realistic and time-sensitive traits. However, in today's rapidly moving world, one-word descriptions just don't make the grade. SMART goals have evolved to align with you and your business. So, without further ado, here's the new SMART goal guidelines ...
   

• S: "Specific" paints a vivid picture, but SMART goals are also stretchy, synergistic, significant, socially responsible, shifting, shared and systematic.
• M: "Measurable" is a fantastic term to show movement, but also consider goals that are motivating, memorable, meaningful, methodical, and mission-matched.
• A: "Accountable" is the word that always comes to mind with SMART goals, but the A in SMART can also stand for achievable, authentic, acumen, agreed, abilities, and action.
• R: "Realistic" is a good start. Other contenders for R include relevant, reasonable, results-oriented, rewarding, reliable, remarkable, responsible, and resonating.
• T: "Time-sensitive" goals provide a much needed end point to strive toward. However, other"T" words to consider when composing your goals are tangible, thoughtful and truthful.
  

A few other considerations with business planning: (1) Start early. Allocate approximately 2 months for your annual business planning to allow yourself to do the most important part of planning - thinking about where you want go. (2) Be flexible. Business planning is not set in stone. Rather it is more like a pathmarker on your desired road to success. And finally (3) set aside time each month to review your plans so you know you are on track. If necessary, make adjustments for new developments in your business.

Best wishes for a prosperous and planned 2008!

JWS

PS. For more on this topic and many other mom-owned-business topics, tune into MOB: Mastermind on Business Gold Club on the 2^nd and 4^th Monday of each month. For more information, visit Inspired Imaginations and look under Exclusives!