10 Reasons Why You Need a Business Plan
It is reported that every month in the United States, about 543,000 new businesses get their start. However, only 7 out of 10 are still in business after the first two years, and only 5 out of 10 are still operating after five years. Reportedly, of the 5 that are still standing after the first five years, around 70 percent have found success thus far due to having a business plan in place to help them along. The Green Leaf Group is a team of experts that can help you with the next crucial steps.
1. If You Don’t Know Where You’re Going, You May Never Get There
All roads lead somewhere but not having a set destination or plan to get you there can lead you (and your business) to all kinds of costly places. By planning your destination, you are more likely to arrive precisely where you want to be. You will miss more than a few time-consuming and profit-devouring detours along the road to your business’s success.
2. The Difference Between Possible And Probable Success
The difference between possible and profitable is the difference between actually reaching your goal or profit margin or crossing your fingers and attempting the best you or your business can do to get there. Do you want your success to be something you can reach, or is the sound of it being something you can probably achieve sound better? Possible is guaranteed, and probable can be likely to happen.
3. The Antidote To The Bright Shiny Object Syndrome
The bright shiny object syndrome is the distracted entrepreneur equivalent of a toddler being distracted by a spoonful of yum-yum. These distractions can be quite costly to the business owner and extremely effective at delaying progress toward their true goal or core focus. A core focus is what you do as a business and what you excel at and are passionate about. The core focus should come from the heart, involve everyone, and be simple enough to not only understand but to recall.
4. It Sets The Foundation For A Great Culture
A company’s culture is essential for empowering and creating balance among its team and members. It helps to build and enforce the company’s vision and mission statement. An effective and clear business plan helps with detailing and outlining not only the direction of the business but also the values that provide purpose and direction for the employees and leaders.
5. The Ten-Year Decision
The idea behind the ten-year decision is sitting down and writing 5-10 attributes about your business that describe what your business looks like 10 years from today. This is highly beneficial for your company and team since it will provide you with a sort of road (goal) map to focus on through the next ten years. This also keeps you focused and on track since you have the destination(s) in mind already.
6. The Bowling Alley Bumpers
For each one of your 10-year attributes, write something you can do by year 3 that will support you. This 3rd year’s goal acts as a sort of bowling alley bumper. Those bumpers are used as a way to help keep that large, heavy, and awkwardly thrown ball from slipping easily into the side gutters and completely missing the pins at the end of its path. That’s what this step is for – keeping the ball in line with the pins, so we can knock a few down this far into the game.
7. The Get Real Playbook
Dividing up your goals into categories is also very beneficial. By listing action items that should be accomplished in the first year, you will find yourself starting out on the right footing toward making those goals a reality. So, in this step, write down a few areas of your practice that you will need to go to work on in year 1. It is important to remember to be SMART:
S – Specific. State what you will do, and use action words.
M – Measurable. Evaluate and use metrics or data targets.
A – Achievable. Make sure your goal is within your scope.
R – Relevant. Makes sense and improves your business.
T – Time Sensitive. Be specific about the time of completion.
8. The Foundation Of Your Message
The foundation of your message is your target audience. You can have the most powerful and delivering message for describing your company and its purpose, but it means nothing if you don’t have a target audience to deliver it to. So who is your target audience, and how do you reach them?
- Where do they live?
- What is their annual income?
- What problems do they need solved?
- How do they think?
- What drives them to make a purchase?
What is your unique value position? What does your practice offer that patients can’t get elsewhere? What is your proven process? Identify five or six steps that make up the proven process that guarantees your service to uniquely work each and every time. Consider steps that no other provider does in quite the same way to get the same result.
9. Everyone On The Same Page
When everyone is on the same page, the path to success becomes infinitely clearer. Everyone grows and arrives at the desired destination at the same time. This type of transparency builds loyalty among your teams and leaders, as well as allows the team as a whole to work collectively towards the company’s most important goals.
10. Revise Vs. Reinvent
This step is more about looking at what you have so far and revising it versus attempting a time-consuming and costly reinvent. Reinventing what you are after or the processes or ideas can be beneficial and, perhaps, even necessary sometimes. But revision is the less costly of the two and, oftentimes, allows you to keep in place the pieces that do work.
Craft Your Secret Weapon
In need of help creating your company’s own business plan? Let us help. Contact us today and book your free 15-minute consultation now. We look forward to working with you.