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. 10 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!