The Importance of Strategic Planning: Why Your Business Needs a Yearly Plan
Okay, things don’t always go according to plan. This has never been more true than in 2020, the year that literally smacked us all down into the mud face first. At Anchorlight we were on track to have the most amazing year and then....in marched a pandemic to take the wind right out of the sails. We are lucky in so many ways and we are doing more than okay! But the point of that is to say that this year did not go as planned in so many ways for us personally, and every client we serve.
Strategic planning is a multi-purpose tool in your arsenal and you 100% need one. Most people know you need one when you START your business, but what about year 3 or year 10? I’m here to say that you need one every year.
Yep, every year.
Now, it doesn’t need to be as robust and of course it will be different than that initial outline. But you still need it just as much.
Let’s talk about 3 main reasons why:
Corporate Governance Documents: Ensuring Compliance and Legitimacy
In lawyer terms they call this Corporate Governance documents. It is proof to the federal government that you are running your business in a compliant way and that it is a legitimate business. Bare minimum, this is why it matters.
Goals That Ground You: Fostering Innovation and Taking Action
As a business owner and especially if you are a one-woman show, you are usually spending a ton of time DOING. You aren’t really spending your time DREAMING and BUILDING. You need to be. This is what innovation and action is–bringing forth the new and improved version of your ever evolving business. This is something no one else can do for you.
Note that this isn’t always growth-focused. Maybe it’s cutting some services and scaling back because you’re just tired. That‘s okay too. But whatever this looks like needs to be part of your planning.
Financial Checkpoints: Eliminating Uncertainty and Setting Targets
I want to know that my business is able to support my family and the lifestyle I choose. This is why I need to not just hope for growth but lay down a firm dollar amount or percentage that I am shooting for. That way that feeling of “I always have to be going or things will fall apart” can be eradicated. Did you hit your sales goal in June? AMAZING! That means that the rest of the year is legit the cherries on top. And that’s a great feeling.
So what are the nuts and bolts of the real business plan I like to follow? Here’s the outline:
Executive Summary (where are we going this year?)
Company Description (mission statement + overview)
Products and Services (any new ones added or removed this year?)
Marketing & Communication Plan (Who are we talking to and how do we get them to take action?)
Operational Plan (any operational changes that are coming or new hires?)
Management and Organization (who is who and what do they do?)
Expenses and Capitalization (any changes or updates?)
Financial Plan (the birds eye of financials)
Feeling energized? Maybe overwhelmed? We help our clients with strategic planning and organizational strategy all the time. If you want help, we are here for you. Contact us or just pop in below to share your own favorite topics your business plan covers. I’d love to know!
