Out-Plan the Big Guys – With Just One Page

Posted on March 11, 2008

You know what needs to happen in your business. That puts you well ahead of many of the big companies. Leverage your knowledge into a business plan by answering these five questions.

The big companies that are competing with you sometimes appear enviable. They roll in new products, update their offerings at the perfect time, and seem to operate as though they have a clear vision and a plan. Of course, the big guys have strategy staffs which don’t have to handle all the details of running the operation. You might think they can sit back and have executive retreats and planning sessions amidst the golf outings.

Don’t be envious. With a little effort and discipline, you can be a more effective planner than them.

A simple approach to planning is best at all levels, and five simple questions, if answered thoughtfully can lay out an entire year’s course of action for your business. I’ll give you the five questions right now, right here. Keep reading.

1. What are you building? Write down what your business will hopefully look like in three years. Include in one long sentence your revenues, who your customers should be, your location, describe your product mix, and lay out why you’ll appeal to your customers. Officially, this is your vision. Don’t worry about polishing it. Just write it down.
2. Why does your business exist? I mean, what is the point of having your business be alive? To help people enjoy their spare time? To help them build skill at their hobbies? Officially, this is your mission. Just jot your thoughts down.
3. What are your goals for the next 12 months? Just make a list, and keep it less than seven items long. Be really specific with a target number and a date. Like, “Hire two employees by January 15th, 2008”. Or “Grow sales from $450,000 last year to $510,000 this fiscal year.” Try to think broadly about goals — quality, service, profits, sales, store appearance, product breadth or depth. Don’t forget a goal for self-development too.
4. How are you going to build up your business over time? Think broadly about how you are going to out-do the competition. Will your strategy focus on one type of hobbyist? Will you be the low cost provider? Or the high cost but high priced provider? These are your strategies.
5. What is the work to be done this year? Think about projects that really need doing. Take a peek at the goals you noted in #3 above, and think about what projects you’d need to tackle by when, in order to achieve those goals. Be as specific as you can. These are your action plans.

Spend two to four hours, write down your answers to these questions on one page–nice and short–and you’ll be leagues ahead of most business owners. Right now, make an appointment with yourself to do it–in the next week.

These simple five questions have been tried and proven over many years by Jim Horan, the author of The One Page Business Plan, a bestselling book and planning system. I’ve used it myself (on myself) and with many clients, large and small. Improve your planning skills and the results you’ll get by buying his book at any bookstore or on line. It’s a workbook style, an easy read, and comes with a CD for $35.00.

Second in importance only to writing your answers to the five questions is setting a date with yourself each and every month to chart your progress toward your objectives. So at the end of each month, you should write down — even graph– how you’re doing on each of the goals you set. If you’re on target, pat yourself on the back. If you’re not, think about what you must do differently to get back on track. If you really want to think about your plan every month, I’d suggest getting someone else involved. Make a monthly breakfast date with a colleague or friend that will be tough on you and hold you accountable to your own plan. Just the act of thinking about your plan and whether you did what you had decided was most important in the last month will greatly increase your odds of success.

You can also hire a consultant to help you with the One Page Business Plan process. Jim Horan has hundreds of trained providers throughout the USA. They can guide you through the process and also check in on you each month to see if you’re really paying attention to your own plan. Their website is www.onepagebusinessplan.com. Tell them I sent you.

With your hands at the helm, you are in the thick of it. You know what needs to happen in your business. That puts you ahead of many of the big retailers. With just a bit of planning on your own, answering the five questions and looking at the plan and your progress monthly, you’ll be able to focus on the most important aspects to growing your business. It’s just that extra push to reduce the time you spend reacting to the day to day pressures, and increase the time you spend on critical projects and goals. Just do it, and do it now. You’ll see benefits quite soon.