If you’re like most entrepreneurs, you have:
- More ideas than time
- More things to do than hours in a day
- Big dreams for your business…
And if you’re like many entrepreneurs, you don’t have a documented plan to help you get there. 
Having a solid business plan is one of the most important, but overlooked aspects of running (and growing!) a successful business.
Yet many entrepreneurs keep a plan “in their head”.
Which really amounts to a rough draft of how you’ll run your business this year.
Problem is, you can’t run a business in your head.
Sure you might hit some of your goals each year. But your business will never reach it’s full potential until you get your business out of your head and on paper (digital docs).
The Value of a Plan
I learned the value of having a documented plan for my business in place, when I started my business back in 2002.
After leaving a highly-structured six-figure corporate job, I came home to start my business. As a single parent of a 4 month and 4 year old, I quickly found that without that pre-existing structure and a plan, the business was never going to happen.
So I pulled up a Small Business Administration business plan on the web one day and it was of no help to me!
- Not only did it require a bunch of information that I didn’t have, it didn’t apply to my new ecommerce business.
- Nor did it take into account the person running the business (yours truly).
Yes, I needed to work on my entrepreneurial self as much as I needed to work on the business.
So out of desperation, I sat down and created my own plan.
- I thought through logically all the pieces that I needed to make happen.
- Segmented them so I could have a clear picture of which areas of my business were working for me and which were working against me.
- And then put my plan to the ultimate test – I put it into action!
With a bit of tweaking and adjusting along the way, it worked!
In fact it worked so well that in later years I began using the plan with my students and clients.
And they loved it too.
Because this plan looks at the business and the business owner, I called it my Holistic Business Plan.
Not only did I hit my financial goals that year, but I actually had a system in place to grow the business.
Now, I’ll be sharing more about the Holistic Business Plan in my next blog post.
But first, I want to talk about YOUR business plan for 2013…
Wait! Before You Start That Plan…
The first thing that you must do before you plan for 2013 is to take a snapshot of where you’re business is today.
Otherwise you’re documenting a dream not a plan.
Here are six questions to get you started.
1. What were your 2012 sales, broken out by month (Jan-Dec)?
2. What was your 2012 net profit margin each month?
3. What were your top 10-20 best selling products/services?
4. What products, currently sitting in inventory represent stale/aged/unprofitable inventory?
5. Where did you make the most money last year? What marketplace did you sell the most in?
6. What was your most successful marketing channel?
Now, pull up a Word Doc (Google Docs will work just fine.) and start by jotting down the answers to the questions above.
If you don’t have all the information at your fingertips, jot down what you can and move on.
You’ll be amazed at the clarity this short business snapshot will provide after even just 30 minutes!
Only then can you put in place a plan for growth and success that you can confidently achieve.
Next, tell me below… how is your 2013 plan? What do you need help with? Let’s chat!
-Lisa
Hi Lisa,
I agree completely that most on-line entrepreneurs need a different planning process than the usual freebie “bricks and mortar” business plan templates. Good for you for developing what works and asking yourself the hard questions in a way that makes sense for your own business.
Loved the questions to evaluate 2012. It can be so easy to want to move ahead, that we forget the value in understanding what’s already happened. Great distinction between the traditional business plan and one for your type of business.
Stay RADICAL,
Doreen
Figuring out where you are and then where you would like to go are absolute essentials to getting the clarity and focus you need to move forward. Thanks for spotlighting this topic. Great questions!
Love,
Katherine
Katherine C. H. E.
Author, Be True Rich
Wow! thanks Lisa,
This is just what I need. I’m pretty good at keeping track of how much I take in each month, but that’s were it begins and ends. I don’t always know how profitable I am – because I don’t track expenses the same way I do sales. And although I know which products are selling, I don’t always know where the sales are coming from. Got any tracking ideas?
Great advice, Lisa.
We all definitely need to put our plan down on paper and tweak it as we go along.
Without a plan – like taking a trip – you’re going to get lost and get off the beaten path and maybe not get to where you plan to go. Thanks for the reminder! And the tips!
This is great, Lisa! While I haven’t answered all of your questions in the formulation of my 2013 plan… now I want to! That said, I do have a great plan on paper that I’m excited about. Here’s to all of our success in 2013!
I am such a HUGE fan of plans. I see my plan as my guide for business decisions. It gives me the control to say yes or no when I am asked to speak, spend my marketing dollars, give away something from free, etc. If it’s in alignment with my plan to grow my business then the answer is YES. But if I don’t have a plan, I end up saying yes to many things that in the end don’t help me move forward and that’s a waste of time and money. Thanks for the tips!
Hello, just wanted to mention, I liked this post.
It was helpful. Keep on posting!
Wonderful tips for assessing the current state of your business. I also agree that it is critical to have a business plan. And not just any old business plan but a plan that align with you and your goals for your business. Flying by the seat of your pants doesn’t work and neither does following a cookie-cutter plan. I look forward to seeing your next post.
You’ve GOT to know where you are to effectively plan the path to where you want to go! Luckily I have a fabulous business partner who tracks everything obsessively 🙂 I used to not really care all that much, but I have to say, when you really start paying attention to your plan, your actions, and the results … and how it translates to your bank account … things get fun!
Wow, what a concept to look back at 2012……….that seems so obvious when you mention it, but I never thought of doing that….and how revealing and informative that could be! Thanks for the great tips and I look forward to your next post about the Holistic Plan!
Lisa,
Writing out a business plan is so important it is worth repeating this statement often.
If anyone needs a reason, how do you review a plan each month to see how
you are doing unless the plan is written down?
Lisa,
I am posting the info from my old web site to my new WordPress blog as you suggested. My blog is getting some comments already with only 14 posts that have re-posted from the web site. I’m rewording the web site posts and post them on the blog w/ the blog Head Line “WALKING SMART NOW’.
Should I maintain the web site when I am finished re-posting to the blog or just trash it? It is taking some time but I am moving along steadily.
I’m going to get the new blog refurbished w/ a new facelift from Woo THEMS AS YOU ADVISED.
Thank you