Momentum - Business to Business Online Magazine MOMENTUM January 2019 | Page 11
From the Business Coach
5 Steps
to
Start Your Business Plan
By Mike Hilderbrand, MBA, CBC, CSSC
ActionCOACH of Galveston
[email protected]
www.actioncoach/mikehilderbrand
I was asked to meet with a local business owner recently who
had been in business for about a year. When I assessed his
situation, it was apparent that he had made a litany of mistakes
that put his business in jeopardy. Yet, when I asked to see his
business plan, he proudly produced a beautiful and highly
detailed 20+ page document. But on closer review, the pro
forma numbers were unrealistic, and many of the action plans
had either been done poorly or not at all. Here are 5 Steps necessary to begin the Planning
Process:
It was as if his attitude was “As long as I have a great plan, my
business will work.” 2. Break the plan down into realistic chunks.
Instead of just doing an annual plan, break it down
into quarterly plans so that you can focus on short-
term accomplishments while working towards
long-range goals.
A recent survey of business in the U.S. found that over 80% of
new businesses fail within the first five years. Many of these
failures could have been prevented by having comprehensive
business plans guiding the businesses. Yet how many of these
same businesses do have excellent plans, and still fail, and why
is this the case?
Frequently, the business owner buys a generic business
planning software program, fills in the blanks, and once their
SBA loan is approved the plan goes on a bookshelf to gather
dust.
The software does not have the intuitive ability to ask the tough
questions of the owner, push them to think through where their
business is heading, and then stay with them to make sure the
plan is executed with discipline and precision. When the owner
subjugates their plan to canned software, or to a 3 rd party who
writes it for them with minimal input, the results are almost as
bad as if they had no plan at all.
The magic of a great business plan is not the “plan” itself, but
rather the process that the business goes through in putting it
together and then using it as a living document to guide and
direct the business.
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MOMENTUM / January 2019
1. Know where your business is going. Do you
have a vision of what you want your business to
look like in 5 years? 10 years? It’s impossible to
put together a realistic plan if you don’t know your
destination.
3. Assign tasks to team members. Do not think you
can do everything yourself. Make sure you get
your team involved in the plan.
4. Dedicate a block of time to do the plan. Once a
quarter spend an entire day away from your
business putting the plan together. This will get
you away from your day-to-day distractions and
help you focus on completing the plan.
5. Have a Business Coach assist you. Having an
outsider’s perspective to give you ideas and
guidance keeps you from developing unrealistic
expectations and going in a direction that doesn’t
make sense for you or your business.
Having a solid and realistic business plan can help you
overcome the pitfalls that every business owner will
encounter. Start in 2019 and make your future
happen!