Do you plan your schedule?
Many business owners I talk to don’t; in fact, they often don’t have a plan at all! These are the companies that lurch from one crisis to the next, taking the amounts in their bank account as an accurate reflection of how they’re doing. Planning is something you never really have time to do. Other business owners who have a written business plan keep them safely tucked away in a filing cabinet where they rarely, if ever, see the light of day.
In today’s uncertain business times, not really planning is planning to fail. And reviewing plans regularly is an essential check to ensure we can react quickly to changes as they occur. I would like to suggest that you set aside at least half a day each month to plan for the future of your business. Make an appointment in your calendar, change the phone to voice mail; turn off all email and message alerts. This is important!
Your plans don’t have to be fancy, but having them in writing will have the effect of making your future seem real. You will have goals to work towards and goals to measure. Monthly reviews will highlight problem areas and allow you to make adjustments and take corrective action quickly, if necessary.
How do you plan your meetings?
When business is a bit quiet, it can be a welcome relief to write something in the journal! You probably meet other business owners for coffee or lunch and feel like you’re working really hard. But your time, especially if you’re a one-person business, is the most important asset you have. You can’t afford to waste it or waste it on anything that won’t make you money. And even when you keep meetings short, if they involve travel, that’s basically ‘down’ time that won’t get you anything.
Take a look at your journal now. Do you have a meeting planned? Are they going to make you money right away (ie client meetings) or very soon? Do any of them fall into the ‘maybe someday’ category?
While I’m all for building relationships for the future, having meetings can be time consuming. When you take the time to plan before you make arrangements, your time will be well spent. For example, it’s hard for me to focus on other work if I know I’m going to a meeting later that day. One solution that works for me is to group meetings on the same day.
finance planning
Working with a client last year, I was surprised to find that they had no budget controls, cash flow projections, or advance planning for capital purchases. His business was not insignificant either, with 9 employees and a turnover of almost £1/2 million. However, his considerable overdraft and the associated bank and interest charges did not surprise me.
This is a good example of how not planning your business finances can literally result in money being thrown down the drain. Planning ahead to replace outdated equipment avoids the panic of scrambling to find funds when it finally stops working.
Planning an annual marketing budget will keep you from getting swept up in seemingly irresistible special offers that you really can’t afford. Or, conversely, being able to take advantage of low prices because you know you have the funds available. Planning your cash flow projections means you’ll be able to quickly see if there’s going to be a shortfall, before it happens, and give you time to do something about it.
6 hidden dangers of planning
While planning is an essential step toward success, there are also some pitfalls to be aware of!
Planning to the nth degree. This is when you write out your plans in such detail that there is no room for maneuver. Your plan should include some contingency time to allow for the unexpected, because it will happen.
Planning you in a corner. While planning is a good thing and helps keep you on track, if you don’t realize when adjustments are needed, you’ll end up in a corner with no easy way out. Take a step back from time to time and check that you are still on track to achieve the result you want.
Working with the flashers on. It is not the same as the previous two, this is when you are so focused on doing what you had planned that you do not realize the new opportunities that may come your way. It would be a shame to miss something good, because you were too busy to see it.
Plan without taking action. Unfortunately, this happens to a lot of people (in business and in their personal lives). They confuse planning with doing, and never really get to put their beautifully crafted plans into action. Then they wonder why nothing has changed. Don’t let it be you.
Let others plan for you. Although this is rare in business, fortunately, it’s worth double checking that what you’re planning is really what you want to do and achieve, and not what someone else has decided might be a good idea for you.
Planning to look good. Don’t make plans to do something because you think you should or because you want to look good in front of others. Unless you plan for what you really want, and those plans are in line with your personal inner values, you will have a hard time moving forward with them and you won’t enjoy the journey.
I hope this article has made you want to start writing plans for your small business, while keeping an eye out for potential pitfalls!