Look at your business. Now look at your business planning. Do you have concrete plans in place to ensure continued success? What sets mediocre businesses apart from great businesses is the ability to properly plan their business. Business planning exceeds what you are going to do that particular day. What are your goals are for the entire year and beyond?
Business planning involves an exemplary attention to setting goals. Your goals need to be specific to your business or your organization. Use the following formula to be successful when you're setting goals during your business planning. Your plans should consist of goals which are specific, measurable, realized, true, and timely.
Specific
Now is not a time to use generalities. You must state the purpose behind your goals. Instead of a goal being, "my business will make money this year for the company", try "my business will make $ 10 million this year by aligning profitability with corporate sales metrics." You notice the specific purpose of the goal versus the vagueness of the goal? Once specifics are out of the way, move to the next step.
Measurable
How will you know if your business is succeeding or failing versus your set goals? Measuring your performance allows you to better align your goals if performance is lagging. Key indicators must be in place to visualize. Your goal is to make $ 10 million dollars, so an indicator would be financial monthly financial results. If your profitability is not aligned with corporate sales, then you must adjust your strategy.
Realized
During the business planning process you have to account for all external opportunities which may cause you not to achieve your goals. So when you are planning, do not make goals too lofty as to not attain success. So instead of firing you will make $ 10 million in a year, try making $ 833,333 per month. The end result will be the same, but more manageable.
True
Do you want to be known as a leader who can execute plans and deliver results, or a leader who is incompetent and can not meet company expectation? If you are the leader who values success, then during your business planning you will take into account whether or not your goals are realistic. Seek guidance from peers as well as supervisors if you are unclear of the goals setting process.
Timely
Can you deliver results in the time frame you set up during your business planning? If not, you need to realign your plans. The best laid plans are plans which have a beginning, middle, and an end. Be careful during your business planning not to give too much or too little time to a goal. Both are detrimental to goal achievement. Too much time shows lack of commitment. Not enough time shows you may be conceited.
Business planning is the cornerstone to a successful business. Without planning, you can expect poor performance. Lower than expected performance leaders to you being replaced with someone who will be able to deliver results.