Have You Outgrown Your Business Plan?
Written by The One Page Business Plan Company, on January 25, 2022
With supply chain disruptions, recruiting challenges, new remote work trends, many companies can quickly outgrow their business plans.
How do you know if you have outgrown your business plan?
- You see and are acting on significant opportunities that were not visible last December when the plan was created… and you can’t or won’t say no to them.
- The programs and projects that are now the company’s prime focus can’t be found in the original plan.
- The management team can no longer live within their discretionary budgets… in fact, they are spending money on things that were never envisioned or approved in the plan.
- Your business’s production or service delivery functions can’t keep up with the sales demand, even with extensive use of overtime.
- Your original cash plan had you comfortably living within your credit line limit for most of the year… you have now been maxed out for the last three months, and next month’s cash demands may not be met.
- It’s clear the right hand no longer knows what the left hand is doing at your company. It’s evident to you that your team is not on the same page.
- A major competitor has either just entered your marketplace… or one just went bankrupt… and you must take significant action, now!
If more than a few of the above items are true for you, here are three simple and effective planning strategies that can help you ensure that your plan stays current longer:
Keep Plans Simple
Plans should be short concise to the point. Cut all of the fluff and filler. Have each profit center, cost center, significant projects, and programs have written plans. If it is important enough to invest in a manager or team, they need to have a plan, it needs to be in writing, one page is probably enough… and everyone needs to see everyone else’s plans.
Keep Plans Short So They Are Easy To Change
A good friend recently advised, “Be wary of excessive verbiage”. Insist that your management team write clear statements of what is to be accomplished, by when, with explicit and measurable goals. Keep plans to one page… any more is too much!
Conduct Monthly Business Reviews
Our recent surveys indicate that less than 20% of businesses with management teams of five or more managers have a regularly scheduled monthly business review. This may be the most critical meeting in your company; this is where you walk through the financial statements and review all important projects and programs. One tool that our clients use is The One Page Business Plan.
Curious about how One Page Plans can help your business? Click here to learn more.