Every business owner has a dream when he or she starts a new venture. Unfortunately, enthusiasm and energy are often not enough to sustain a new business for very long, which is why most owner/operators without a plan find themselves waking up to the harsh realities of running a ship without a compass.
Fortunately, many business people today are recognizing the importance of planning and goal setting to ensure the long-term success of their enterprise.
Outlined below are the key steps to establishing and growing a successful business with a foundation of solid planning, based on our many years of experience helping business owners and operators in a wide range of industries reach their financial goals.
1. Establish your organization's strategic and financial goals.
The key to setting meaningful objectives in this area is linking viable strategic goals with realistic financial goals that allow you to grow your business. Too many new upstarts either fail to define a clear strategic vision or forget that a business can only survive if there is a solid financial infrastructure built on profit behind an idea. Also vital to a strong focussed organization is a set of goals that is reflected in the everyday operations of the business.
2. Clearly define the methods that you will use to obtain your goals (i.e. sources of revenue).
There are millions of ways to make money; your job is to determine how your company will earn its revenue and clearly communicate your strategies in writing and to your employees. By establishing a well-defined outline of your operations, you are setting a constant guideline for your business to follow. Furthermore, you can compare your operational methods with the goals you set in Step 1 on a regular basis to ensure that they one is still an appropriate reflection of the other.
3. Set periodic benchmarks that you can objectively measure your performance against.
It's not enough to simply set your goals and cross your fingers hoping to reach them in a year's time. By setting regular performance benchmarks (i.e. quarterly, bi-monthly, etc.) you are holding yourself accountable to staying on course to your ultimate financial goals. This regular evaluation also provides an excellent opportunity for you to adjust or adapt your strategic and financial goals if you find that market conditions have changed significantly since you first set out.
While the model above is a simplified one, many new businesses overlook these basic principles and end up reacting to those around them rather than controlling their own destinies.
