Already on ArticleSlash?

Forgot your password? Sign Up

Easily Create a Great Annual Business Plan For Your Business

Chris Riche
 


Visitors: 217

A key difference between successful business owners and less successful ones is the successful ones are aware of what is most important and are able to stay focused on that. This one page business plan is a great place to end up to help you get and stay focused.

There are two reasons why this is very important: Occam's Razor and the Law of Focus.

  • Occam was right when he first articulated hundreds of years ago what has since become known as “Occam's Razor": The simplest explanation is likely the best. Said another way, if you can't explain something simply, you probably don't know what you are talking about.
  • The Law of Focus says we can only do a few things well and in any given situation only a few things matter. That is great news for us as business owners and managers and yet a reality we sometimes lose site of.
Leonardo daVinci was right when he said, “Simplicity is the ultimate sophistication. "

Your VOLT(tm)

We call this one page business plan your VOLT(tm). This stands for Vision, Objectives, Levers, and Targets. By breaking up how you think about your business into these four areas you can help ensure you are staying focused to your vision, know if you are on track, have clear direction on what actions you need to take during the year, and know if those actions are working. Specifically, these are:

  • The guiding Vision you have for your business
  • Your business Objectives for this year and several years out
  • The most important Levers you are going to focus on to run and grow your business
  • Your easily measurable Targets for each of those levers to help you know if you are on track
Vision

If you haven't developed a clear vision statement for your business I highly recommend you do so and while that is beyond the scope of this article, for examples sake, your vision should follow along these lines:

  • Generally one to two sentences maximum. It needs to be guiding and focused.
  • Big picture focused. You are going to be #1 or #2 in what category for what target?
Objectives

A Vision is great but you need to be able to track how you are doing toward that vision. A good Objectives section will have important measures for at least three time periods. The first is last year's actuals (if applicable) so you know your baseline. The second is this year's target so you know what you are going after. The third is a time period three or five years out. You want something to keep this year's goals in context and help ensure you are not too focused on the near-term. That said, too far out and it becomes interesting but largely meaningless.

The measurable objectives themselves will be directly related to what you have in your Vision statement. If you are going to be number one in your category how will you measure that? Will it be customers, profit, revenue, client satisfaction, a combination of two or more of those? Usually there will be at least two and more likely three but not more than five. Think big picture here.

Levers

What are the important levers you are going to pull in your business? Usually there are less than five. Examples include:

  • Enhance new client acquisition by. . .
  • Generate referrals by. . .
  • Increase revenue per client by. . .
  • Enhance existing client retention by. . .
  • Introduce/upgrade/expand product line by. . .
  • Reduce costs by by. . .
  • Form strategic partnerships/joint ventures with. . .
Depending on your priorities, some of the above may actually be included in other levers (enhancing new client acquisition by generating more referrals). That's fine. Your specific focus area will tell you which should be called out and focused on.

Make sure your levers pass the sufficiency litmus test: “If I pull these levers will they be sufficient to reach my business objectives?"

One additional level of detail many business will do is list out 1-2 key tasks, programs, or tactics which they plan to do to pull each lever. This helps them get more focused in what they will need to do. At the same time, many business leaders will assign a specific owner to each task or even an overall owner for a specific lever. This help them be clear on who owns what and helps them both keep everyone focused and on track (whether they are employees, consultant, contractors, or vendors) and help the business leader work on their business rather than get sucked into working too much in their business.

Targets

Each of your levers should have an associated and measurable Target. Depending on your situation and the levers you have chosen the targets can be just for this coming year or you can also show them for the prior and a future year as well for perspective. Setting both overall Objectives and these lower-level Targets are important to help you understand if you are achieving your overall Vision and what levers are working and not working in your effort to do so.

Congratulations!

Once you have boiled down the key decisions and actions to this focused one page plan you will likely quickly be able to determine if you have have the plan you need to succeed. Going through this process can be a great way to find out what you don't really know, what is missing, and if you are being focused enough.

http://www.percess.com is a leading online resource helping people live a life of achievement, meaning, and enjoyment both personally and in their business. We do this through a bi-weekly newsletter, our online assessments and tools, and educational articles and programs. These resources help guide you from where you are to where you want to be, while enjoying the trip.

Copyright 2008, Percess Technologies, Inc. All Rights Reserved.

(1050)

Article Source:


 
Rate this Article: 
 
Business Plan Writers - Creating a Custom Business Plan
Rated 4 / 5
based on 5 votes
ArticleSlash

Related Articles:

Business Plan - Benefits of Writing a Great Plan for Your Business

by: Lisa McGrimmon (February 21, 2008) 
(Business/Strategic Planning)

How to Create a Winning Business Plan

by: Adam Singleton (July 20, 2008) 
(Business/Strategic Planning)

Business Opportunities From Home - How to Create a Great Business Name for Your .

by: Serge Daudelin (May 06, 2007) 
(Home Based Business)

Create Best Business Plan For A Successful Nightclub

by: Veselin Iskrenov (November 22, 2011) 
(Home Improvement/Interior Design and Decorating)

Effective Tips For Startups To Create An Impressive Business Plan

by: Oliver Mark (November 11, 2019) 
(Business)

Discover How To Create A Plan In Achieving Home Business Goals And Success

by: Rauf Mohamed Yusope (January 31, 2008) 
(Home Based Business/Network Marketing)

How To Create A Great Business Case

by: Duncan Brodie (August 05, 2007) 
(Business/Management)

How To Write A Business Plan - Ways To Make Writing Your Business Plan Easier

by: Dee Power (June 10, 2007) 
(Business/Small Business)

How To Write A Business Plan Ebook Review - Make Your Business Plan Soar

by: Audrey Owen (May 01, 2008) 
(Internet and Businesses Online/E Books)

Business Plan Writers - Creating a Custom Business Plan

by: Tyler Jensen (August 30, 2011) 
(Business/Management)