By Charif Slag at May 02 2019 20:51:22
Developing Planning Modules: Compartmentalizing your plan by developing planning modules or "chunks" allows you to attack the plan in parts, yet still maintain a cohesive plan. I have found that developing an annual plan made up of quarterly targets _ thus becoming a rolling quarterly forecast financial model _ allows for a cohesive structure along with the nimbleness to react to market conditions. At the end of each quarter, a true_up process to align results to annual targets needs to be re_forecast and adjustments made.
Increase Personal Productivity _ You have to be organized when you start a business. Rather than writing things down on loose scraps of paper and hoping for the best you need to have somewhere to compile all of the important data that you collect. A business plan is ideal for this purpose. If you store the business plan as a document on your PC you can simply add new information as you come across it. If you have done your research and have all of you information stored in one convenient location you will be more organized throughout your business launch and you will avoid a lot of unnecessary headaches.
So how would you go about making a plan like this? Well if you know a fair amount about business, you can. It will take some special calculations and some work but if you know how to put together a Profit & Loss Statement, you can probably do it. You would first do a P&L for the present year for your existing business and the first year and as many years after as you would like to have your plan cover. Your existing business financials will be the foundation for building yourself a business plan for as many years out as you want. This data will tell you a number of things but first if you want to build your plan around what you want in life, you would need to decide some things about your life: 1. You would need to decide how much income you would like to have for yourself for each of the years you plan for. 2. You would need to determine what kind of profit margin you would want from your business for each of the years. 3. And by combining these 2 things into a P&L format you can develop a financial business plan that can extend as for into the future as you would like. 4. The first thing it will show you is how much sales you would need each year to give you the income and profit you would like. Once you see the sales needed, if you know your business well enough, you should be able to estimate those additional expenses needed to overcome capacity constraints that will occur as your business grows.
Sometimes no matter how much you research, plan, or test, things don't go as expected in a business. This isn't necessarily a herald of failure or a sign that you're not cut out for entrepreneurship. Life and the marketplace are both unpredictable, and plans need to be fluid and responsive. The "One Pressing Issue Plan" is simply a reflection of a normal evaluation process.