Planning

Planning is appropriate for any organisation that wants to approach the future with a plan of action. The future will come whether you are prepared for it or not. Business planning allows you to anticipate the future and make well-informed decisions because you have thought about the alternatives you will be facing.

There are five functions of business management: Plan, Organize, Staff, Direct, Control.

Planning is the first of the five and establishes the basis needed to do the other functions successfully. Organising, staffing, and directing are necessary functions if you are going to incorporate your business or have employees. The control function is the actual operation of your business once the other planning phases have been completed.

Can't I hire someone to do this for me?

No! This is your business we are talking about. It is vital that it comes from your as this will reflect your ideas and efforts - not those of an someone elses. If you feel more comfortable obtaining outside assistance, use that help to review what you have done and make suggestions. But you must make the initial attempt at developing your plan.

The first step in the planning process is to develop the goals you have for your business.

Goals are targets for your business. Goals can be either long term or short term. Each goal must be stated in a quantitative manner that allows you to track progress toward the goal. In other words, every goal must be measurable. Each goal should be identified with a function of the business and assigned to an individual. Some goals may be applicable to the entire company, but some functions should be related to meeting the goal. It is important that all goals are compatible with each other.

When setting goals, answer the following questions: What? Why? How? When? Who? and Where?

Goals can be set for any aspect of your business. Some of the important goals that must be set are: Sales Volume, Profit, Customer Satisfaction, Owner Compensation, Number of Employees, Owner Time Commitment, and Assets.

It is a good idea to have from five to seven goals. Fewer than that will not be challenging and it is difficult to focus on more than that.