Is your business suffering from lack of revenue? Are you multitasking and not seeing results? Does the thought of a lengthy business plan make your head ache? Well, here’s the reality, in order to have a profitable business, you must have a plan. The people who operate within your business must have a focused direction that leads to an avenue of profitability. The daily to-do list should be based upon your company’s objectives.
Of course you’ll need a lengthy business plan if you are seeking investors. However, here’s a short cut to get you headed the right direction in no time. It’s an index card business plan. Here’s how it’s implemented.
The key objectives for your business should fit on no more than three 3 x 5 index cards. This way you are more likely to be concise with your short and long term goals. You should focus on the areas of money, time, and energy. The focus should address the “immediate” needs of your business.
Let’s focus on the money aspect of the plan first. However, you can start on any of the three areas. Just so we’re clear, I’m not stating the money is the most important factor of your business. I know many in business enjoy sharing their “brilliance”, as well. However, you are running a business not a hobby.
On this card, the focus should be placed on the short-term objectives for revenue growth. It should include the necessary duties that are directly related to generating revenue and satisfying and retaining your clients. Concentrate on how to most effectively use your current budget and where you can cut overhead and still effectively serve your client. This card should also contain a yearly target figure and a monthly breakdown of how much is necessary to achieve the annual figure.
Next, let’s take a look at the time index card. On this card, you’re going to pinpoint the areas specifically that maximize your time in the office. First, determine the clients and activities that generate the most yearly revenue. If 20 percent of your clients are generating 80 percent of your revenue, then the top 20 percent should receive 80 percent of your company’s time. As your revenue grows, recalculate the hourly rate of how much your time is worth and delegate, automate and delete the items that are not bringing you revenue that is equal to or above your hourly rate.
Finally, make the items that are your strengths and you enjoy the most, your priority to conserve your energy and avoid burnout. Clearly outline the objectives of the roles in which you want to focus. Never be afraid to delegate any task that doesn’t allow you to be at your best and achieve the goals of the businesses.
Don’t forget to share this plan with your staff. They should be on board and a part of the vision for the company. Remember, not to focus too far ahead. This plan should be revisited every three to six months as the “climate” for your business changes. Post the cards in clear view to help you stay on track.
Please feel free to comment & share! As always, here’s to your success…