Proper planning prevents poor performance. It may be a truism, but it remains valid, because, to quote US Founding Father, Benjamin Franklin: “If you fail to plan – you are planning to fail”. This page looks at things to consider when planning your business year, so you can prepare in good time and remain in control.
Planning is crucial because it allows you to maintain control over your business, instead of being at the mercy of events. As Alan Lakein, celebrated American time-management author, explained: “Planning is bringing the future into the present, so you can do something about it now”.
Some events are predictable because they happen every year, for example, the Self Assessment tax return filing deadline. Others only happen in specific years or occasionally, for example, a major legislative change or high-profile event such as a royal wedding, which may or not have relevance for your business.
Some events will be unique to your business, for example, the end of a new major contract, while others may be relevant to your region or market, whether they affect all businesses or just smaller ones. National or international events can also affect small businesses.
Some events may threaten your business, while others bring opportunity. Once you’ve identified them, planning enables you to act in a timely, logical manner to either mitigate risk or capitalise on opportunity. Once you’ve created a plan for the year ahead, obviously, you must work to it, because although action without planning can prove fatal – planning without action is futile.
It’s advisable to first speak to others when planning for the year ahead. Ultimately though, as the business owner and leader, you’ll have to make the final decision on how best to plan for the year ahead, but that doesn’t mean you shouldn’t invite input from other key stakeholders.
If you have employees, they’re probably the best and most logical place to start. Find out what their plans are for the year, for example, they might want to take most of their annual leave in the winter rather than the summer or carry over holiday into next year.Find out more
Suppliers and customers
Also, speak to your suppliers to find out their plans for the year ahead. Maybe they’ll be having a summer shutdown, before which you may need to increase your regular order. They might have issues with their suppliers at certain times of year or more exceptionally, their services might be disrupted by moving premises.Find out more
When planning for the year ahead, take time to update your business plan. If you haven’t got one – produce a business plan. You need goals for your business’s immediate future, as well as a sound strategy for how you will achieve them. Creating a reliable business plan means you have to research your market and carefully consider all aspects of your business – and crucially – key financial information.
A business plan can prove to be a useful tool you use to remind yourself of your goals and strategy, while enabling you to judge your performance and growth. But it will only remain useful if you keep it up to date. And if you’re not progressing well and unlikely to achieve your business plan objectives, you’ll be able to rethink your strategy.
Most aspects of a business plan can change over time, so rule nothing out when updating. You may have gained or lost market share; you may have introduced new products or services; key people could have been replaced by others; the way you market your business or sell could have changed, too.
Pay particular attention to your business plan’s financial data. Ensure that this is accurate and as up to date as possible. Where you can, replace forecasted figures with actual numbers. Look at your business plan every month and update it at the beginning of every year as a key part of planning for the year ahead. Seek input from others within your business and trusted advisers, especially your accountant.
The clue is in the name: a good business plan is a key part of planning ahead. Read our guidance on how to focus and plan for the future.Read more
When you first start in business you may find that you spend all your time on actually running the business and the number of tasks you have to do can feel overwhelming. Here we give you some practical tips on how you can become more organised and schedule your time effectively.Read more
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