6 Steps to Effective Small Business Planning

As the new year approaches, many people will be thinking of their goals and dreams for the year ahead.

Without a doubt the number one reason I see start-up businesses flail or even fail is that they don’t have a proper plan. They try to run their new business by the seat of their pants, hoping all will work out. But what happens when things don’t work out? They get into serious trouble. They lose precious time and money, and most importantly, the world loses the opportunity to experience these unique ideas being realized.

“A goal without a plan is just a wish.”

– Antoine de Saint-Exupéry

I find this so unfortunate, especially when it can be so easily avoided. Entrepreneurs don’t have to operate in the dark. There are alternatives! We would never consider building a home without a blueprint, or go on a long journey without a road map. So, why try to run a business without a plan?

The reason I hear from most people is that they don’t know how to develop a business plan. Or, they believe that a business plan is really only needed for obtaining financing (from the bank or government). Many entrepreneurs believe creating a business plan will take too much time and that it’s not worth the effort. This couldn’t be further from the truth. Imagine, an individual comes up with a great business idea, but then targets the wrong audience? Or, the product is not positioned properly in the market? What if the brand is communicating the wrong image, or is priced incorrectly? Wouldn’t the entrepreneur have saved a lot of time, money, headaches and even heartache by doing the proper analysis and planning?

Every day I see people losing hundreds of hours and thousands of dollars pursuing the wrong direction. I recently spoke to a woman who spent $15,000 developing an online program and now has no money left to market it. With proper planning, design, development and marketing, her program would have been clearly detailed and budgeted. And, she would be in a better position to share the program she poured her heart into with the world.

Another friend of mine spent $10,000 and months developing an online web portal that would help people donate to the favorite charity easily. He had to abandon the project, because he learned that the cost of the propriety software required to run his portal was too high for him to operate his business sustainably. This too could have been avoided with proper financial planning. As a result, the world was robbed of his great idea to help bring needed funds to not-for-profit organizations.

A recent client of mine had spent a lot of money trying different types of advertising over the last three years to attract clients, without ever developing a proper marketing strategy. The result was a patchwork of successes and failures, and a lot of wasted time and effort. After developing her business plan, she realized that she could spend less time actively promoting her business and more time actually generating income. She also learned that she could charge more and bundle her services in such a way as to increase her profitability.

To help clients avoid such mistakes, I work with them to develop a clear road map that outlines their goals, strategies and a detailed action plan. There are six key elements of this road map.

1.0 Limiting Beliefs – The first thing we do is examine the client’s beliefs about money, abundance, scarcity, competition, their fears and doubts. It is these unconscious beliefs that can often sabotage success. It is important to reprogram these beliefs to create a foundation for attracting clients, money and success with ease.

2.0 Clarity – Going beyond a simple vision board exercise, I work with clients to help them see the connections between what they love to do, what brings meaning, and their unique gifts and expertise, to create a mission statement that will guide them for years to come.

3.0 Analysis – The next step is to conduct a complete analysis of the market, potential competitors (direct and indirect), mentors, as well as clearly defining the ideal target audience. This analysis will help to properly position the client and their brand in the market. This is followed by an honest self assessment and understanding of their business strengths, challenges, opportunities and threats, and the best business model for the client’s personality and goals.

4.0 Strategy – This assessment provides clear direction for the development of key business strategies, including: products or programs, pricing, marketing and sales strategies, process, systems, financial and resource requirements.

5.0 Brand – Based on the strategy, we develop brand elements, including: brand name, image, important communication elements, such as your tag line, 30 second elevator speech and key support points.

6.0 Action Plan – Finally, we put everything together in a clear action plan that has steps, timing, sequencing and expected outcomes. This plan includes the marketing components that need to be developed like website, social media sites, email, etc. and it also includes a plan for communication and engagement throughout the year in the form of campaigns.

When my client has completed their plan, they have such clarity and confidence. This is so satisfying for me, because I know that they can now focus on what they love to do. I know that their chances of success have improved dramatically and that they have the proper tools to work through difficulties and challenges along the way.

It is this satisfaction that motivated me to create group and one-on-one programs to help small businesses develop a road map for success. These programs are based on my formal business training (MBA) and 30 years of experience working for small, medium and large companies. I’ve taken this knowledge and broke it down into a process for creating efficient business plans that are easy, flexible and tailored to each businesses’ unique needs.

If you would like to explore uncovering your own true calling and gain the tools and confidence to make your path successful, Lianne offers one-on-one coaching services and hosts group in the Montreal area.

Contact Lianne at: lianne@designingtransformation.com