The Importance of Business Planning

Ever since my time in the Army having a detailed and effective plan has been a crucial element to my success. In the Military we did not attempt to move without a plan and one that was analysed, had a critical 360 review, tested, and was flexible to react to any known threats.

Operating in a Business World we should do the same, whether a large, medium or small business it does not matter to simply operate without one is placing your business at huge risk.

So why plan? Firstly once you sit down to shape your plan you start to look at the business as a whole rather than piecemeal or in silo's. This gives you the insight needed to start to become innovative and set SMART objectives (KPI's) whilst identifying any critical risks and issues.

The plan if structured will give real substance to your business objectives and map out the journey you need to take (Vision). This in turn enables you to monitor the progress you are making against the plan and report on the KPI's which is RAG rated will further enable risk management via a RAID report.

Other benefits to a formal Business Plan are:

• Assist with budget and crucially cash flow reporting and planning therefore viable forecasting
• Able to support any financial resource requirements and investment/loans if required (Banks do not like loaning to businesses without a plan)
• Aids innovation and growth by turning ideas into opportunities
• Formalise and ensure synergies with your Marketing Strategy thus identifying new market/product opportunities and sales strategy
• Communication of the strategy to key stakeholders
• Identify your key competition and be able to create barriers
• Attract top class employees

So we have decided we need to have a plan what does it look like? In my view there is no correct version its whatever works for you. I have developed highly detailed and short 4 page plans depending upon the scale and complexity of the business.

The one consistent element of all the plans is utilising the model I have developed below when creating your plan.

This model will enable you to fully review your "As Is" situation effectively and therefore allow you to create a plan forward