Congratulations on getting this far and for completing Parts 1 and 2 of your Business Plan. So far you have done a lot. Your business has a clear Vision and Purpose and you know what you want to achieve and the Values you will use to do this.  You have articulated your Value Proposition that explains what you do for who and how you can help them. Finally, you have identified the Opportunities and Vulnerabilities to be addressed in the next 12 months.

In this final section, you will agree the Goals and Key Projects to achieve in the next 12 months and broken this down into 90 day actions.

11.Goals / Key Projects

Start a new page on your Business Plan – I like to do this on the back page so it is a true one page Business Plan.

Draw up five columns and title as follows:

• One Year Goals
• 90 Day Goals
• Actions to Achieve 90 day Goals
• Who
• By When

Start with the One Year Goals and list the main goals you have for the rest of the financial year.  Some of these goals may be actions in order to achieve other goals – these can be grouped together under functional headings such as HR Issues, Marketing, etc.

They should address key opportunities and vulnerabilities that have been previously identified and should align to your purpose, vision and what you want to achieve.

Try and keep it to four goals or less, anymore and its likely one of them could have been grouped into another goal. Too many and you’ll struggle to effectively achieve them.

12.Actions To Achieve Goals

Now for each One Year Goal, on a separate piece of paper list all the actions that will be required to achieve that Goal.    These actions need to be specific, broad enough that there are multiple things necessary to achieve them. Think big picture – don’t get into small specific actions yet – this is what we do in the 90 day plan.

13.Establishing Your 90 Day Plan

Consider the One Year Goals – or goals within a larger goal – that need to be achieved in the next 90 days and list these alongside the One Year Goal in the 90 Day Goals. Now review the action list you compiled previously and list the actions that can be done within 90 days in the Actions column.

These actions need to be specific and a responsible person identified. Ideally no more than five actions per person (or you won’t achieve them) and they must be time bound. Include these details in the appropriate columns of your plan.

If there are parts of your business plan that need further work, add finalisation of your plan as a goal and set actions to achieve this.

Next Steps

And now your Business Plan should be complete! Next consider how to roll this out to your team, customers and suppliers to get the most benefit from your plan. Several clients of mine have publicised various aspects of their Business Plan such as Core Values on their websites and some have had them put up on the office walls.

Set a date in 90 day’s time to review your plan and put in place your next 90 day action plan.

Good luck creating your business plan and remember, if you need help to do this, contact Giles or his team on  0800 758 766 or sign up for our business planning service.

The post How to create a business plan in 4 hours – Part 3 appeared first on GECA Chartered Accountants.

Having completed Part 1 of Creating a Business Plan in 4 hours, you will now have a one page template that states your business’s Vision and its Purpose. You have identified what the business needs to deliver to you and the Core Values that provide the basis for how you will do this. Now we are going to delve into the detail to operationalise your strategy – by setting goals for the next 12 months, along with actions to achieve and metrics to ensure you’re clear around what success looks like.

5.Revenue Targets

Under “What we want to achieve” section, write Gross Revenue Target. If you have an existing financial forecast, use the projected annual revenue figure.  If not, see the PlusOne website for a financial forecast template. If appropriate, divide the Gross Revenue figure by 12 to get a monthly target (not relevant for businesses with seasonal variation).  Now add any other relevant high level financial measures such as Gross or Net Profit and a monthly target.

Note the Gross Revenue Target should tie back to your “What we want to achieve” statements.

6.Key Performance Indicators (KPIs)

Head up the next section in the right hand column with Key Performance Indicators (KPIs). These are the key business drivers and identifying these enables business owners to measure progress accurately and then apply strategies and tactics to improve each KPI.

Start by listing as many KPIs as you think are appropriate for your business. These will be drivers of your business and are levers, that if pulled, can have an impact on your results. Your KPIs need to be measurable on a daily, weekly or monthly basis.

For example, 5 KPIs that drive Sales are client retention rate, leads generated, sales conversion rate, average transaction value and average dollar sale.

Now rank your KPIs from most important and include the top 5 in your business plan. You will need to ensure your selected set of KPIs covers all core business areas, and also decide which of these will be key levers for change – not just for the coming 12 month period, but running through your entire strategic plan.

The next two sections are quick and easy to complete.

7.Our Ideal Client / Customer

Consider who you would like to work with and describe this customer in one sentence. Think about the Vision for the business and how the ideal customer would fit in with the Vision. Now complete the following sentence and enter on your Business Plan; “Our ideal customer is…”

8.Our Value Proposition (for ideal customers)

The Value Proposition is one of the most important, if not the most important, parts of your business plan.  Think of it as your ‘elevator pitch’ that summarises what you do and for who. It can be shared with customers and staff and is a powerful business tool.

Consider the following and spend 25 minutes brainstorming the things that describe your value proposition to your ideal customer.

• Why should your customers do business with you?
• What makes you stand out from the competition?
• What is your point of difference?
• What objections from customers have you overcome that your competitors may not have?

Now complete the following statement “I help target market do topic so that benefit. If you have three main problems you should call us.”

For example “We help small to medium sized business owners unlock their business potential so they improve performance and increase profits. If you want to grow the wealth of your assets, have your business running more efficiently and sleep at night knowing your assets are fully protected, you should call us now on 0800 7587 766.”

9.Our Most Critical Challenge

Write down as many critical challenges to be addressed in the next 12 months and rank in priority.  Now include the most important critical challenge in a new section on your Business Plan under the Ideal Client section.

10.Opportunities / Vulnerabilities We Must Manage

The purpose of this section is to identify key opportunities to take advantage of and vulnerabilities to be addressed. Consider the following:

• What keeps you awake at night?
• What’s happening in your industry that you need to respond to?
• How much family time are you getting?
• How much YOU time are you getting?

These issues are often identified by doing a SWOT analysis and a SWOT template is available here for you to complete your own SWOT analysis. Now include these in a section alongside the Critical Challenge.

The opportunities and vulnerabilities identified are often used as the basis for Goal Setting in Part 3 of How to create a Business Plan in 4 hours.

Good luck creating your business plan and remember, if you need help to do this, contact Giles or his team on  0800 758 766 or sign up for our business planning service.

The post How to create a Business Plan in 4 hours – Part 2 appeared first on GECA Chartered Accountants.

Hands up all those business owners who have business plan? Now keep your hands up if you looked at it this week? Typically by now, there are very few hands left up in the air.

And yet, ask any business owner if they recognise the importance of a business plan and invariably it’s an emphatic yes. So let’s make it this month’s goal to write or update your business plan.

My three part series that will show you to create a one page business plan that will give you these benefits:
• Clarity so you understand where you are going
• Identifies your key goals
• Creates strategies for you to achieve your goals
• Sets timeframes for achieving goals and therefore provides accountability
• Provides a tool to communicate your business goals and vision with your team

So find a quiet space where you won’t be interrupted and let’s get started. Turn an A4 sheet on its side and head it up Business Plan. Now divide into two columns. For your first title in column 1, write;

1. Purpose

From a customer perspective, ask yourself why your business exists. What does it do for your customers and how is it different to your competitors. Great purpose statements are short, punchy and clearly articulate the business reason for existence. Some great examples of purpose statements are Walt Disney’s “to make people happy” or Song.com’s “to teach everyone to play music”. Our purpose at GECA is to unlock business potential.

Give yourself 20 minutes to brainstorm as many things as possible that describe your purpose. On a separate piece pf paper, write these down and then create a simple meaningful purpose statement of five of fewer words that conveys why your company does what it does for its customers. This should tie into your marketing materials such as websites and business cards.

Now you should be clear about what your business does. In column 2, now write

2. Vision

Consider at a high level what your business will be like in five or ten years’ time. Be realistic but at the same time, ambitious. This is your desired end point – what you want your business to become. It needs to be measurable but the detail can come later. Right now we want to capture the big picture.

Spend 20 minutes listing all aspects of your vision of your future business. Be sure to include internal focus and external focus elements. Now refine these into a clear Vision of what the business will look like in the future.

Consider your business purpose and make sure the Vision is aligned to this – there is no point having Vision that cannot be achieved with the business purpose for being. I love my dentist’s Vision to be “Auckland’s most sought after cosmetic dentist”. It’s clear, measurable and he shares it with his team and his clients.

We now understand the purpose of the business and have a vision of where the business is going. Now under the Purpose write;

3. What we want to achieve

This section focuses on what the business needs to deliver to you, the owner. Ultimately, a business is just the vehicle to achieving what you want in life and a truly successful business should provide the income to support the lifestyle you want and the discretionary time to enjoy it.

Start by listing in as specific terms as you can what you want to achieve. For example:
• How much income (after all costs) will the business deliver to you personally in the next 12 months
• What will you be doing? (Role, hours of work per week, holidays per year)
• If you are planning a holiday; where will it be and when?
• What will the business be worth / will it be ready to sell?

Your goals should be ‘SMART’ – Specific, Measurable, Achievable, Relevant and Time-bound.

Now prioritise the goals and list them on your business plan. You are now ready to complete one of the most important sections and under Vision write;

4. Values

A set of core values are the key principals which a business upholds and is an extremely powerful business tool in its own right. Meaningful core values provide a decision making framework that enables your team to understand how they work with each other, with customers and suppliers.

Generally these are values that the business owner follows and are unlikely to change over time. You should have no more than five core values and these should be clearly explained. One of the GECA core values is “Best endeavours – doing everything with a positive, can do attitude”.

Many businesses publish their core values and they can be an excellent way of explaining how your business is different and the way you interact on a day to day basis. Be careful to use core values that you, the business owner can live up to – a client of mine had “honesty” as a core value but was caught short when commercial circumstances meant he was unable to be truthful with his staff at the time about a particular issue.

For the purposes of our business plan, we will only spend 30 minutes on this, however, to do this properly, ideally you need to spend a full day with key team members.

The two hour check-in. By now you have achieved a lot. You understand your purpose and the vision of where you want to go. You know what the business needs to deliver to you and you have established a set of core values that will provide the basis of how you will do this. Give yourself a pat on the back and take five. When you get back, we’re diving down into the detail to make your Business Plan actionable.

Click here for How to create a Business Plan in 4 hours – Part 2

Good luck creating your business plan and remember, if you need help to do this, contact Giles or his team on  0800 758 766 or sign up for our business planning service.

The post How to create a Business Plan in 4 hours – Part 1 appeared first on GECA Chartered Accountants.

Since publishing the post 5 Reasons to engage a Business Coach last week, several readers have now asked me what to look for in a business coach to get the best results. So here we go.

First things first – understand what you are trying to achieve

Business coaches can help business owners with all aspects of running a business.  This can range from support in specific areas; i.e. improving online sales, to broader items like creating long term strategic plan.  Understand your needs and find a business coach who is qualified to help in those areas.

Independent thinking

So often a business owner’s coach is a family member or close friend, limiting the ability to provide honest independent feedback and assessment.

Having an independent view will enable a fair and reasonable outlook and most importantly, the coach will be able tell the truth, even when it may be something the owner doesn’t want to hear.

Third party perspective

A business owner is often a specialist who has become a manager as the business has grown. As such, their knowledge of the broader aspects of running a business may be limited. This is where a business coach can help.

A good business coach brings a wealth of commercial experience to call upon and apply to your business issues, providing fresh perspective and insights to support the business owner in overcoming challenges.

Compatibility

The basis for a successful coaching relationship is openness and clarity of purpose. Both client and coach must be accountable for their actions to move forward.

By doing this openly and with care, the coach can provide feedback to help the client grow and achieve what it is they have set out to.  It is crucial the coach is someone the client trusts and has confidence in. If your business coach has the perfect skills and expertise to support you but is someone you cannot be open with, keep looking.

Where to find a business coach

Once you have defined your needs and understand what you want to achieve by engaging a business coach, there are numerous solutions available for business coaching services, ranging from inexpensive phone based apps to personalised one-on-one coaching from professional business coaches.

Look for a business coach with a demonstrated record of successful coaching, supported with testimonials. This may be through a coaching specific organisation such as NZ Mentors or through qualified professionals such as your accountant.  Reach out through business networks for recommendations.

As with any business decision, a benefit cost analysis should be undertaken. Factor in not just the costs of coaching but also the time required by the business owner to attend coaching including pre-work and follow up actions.

Coaching is about enabling the client to achieve things, it is not about the coach completing actions for the client. If the client cannot meet the time requirements then the coaching may not bring the returns hoped for.

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Good luck, I hope you find a business coach that will enable you to continue to move forward and achieve.

At GECA our most successful clients use our business coaching services – call us now on 0800 758 766 for a free consultation. Alternatively, you can find out more here.

The post How to find a business coach that will move your business forward appeared first on GECA Chartered Accountants.

Business success and sports success are often down to one thing – good planning.

Beyond their obviously talented players, the All Blacks incredible record of success in part can be attributed to the planning that covers every aspect of their performance.

One of the assistant coach’s jobs on the recent tour to England was to catch the bus from the hotel to the stadium the week prior to estimate the time it would take for the team to get there on game day.

Planning for the small details like this gives the All Blacks the platform to focus on their roles, winning rugby games.

So what lessons from planning for success in sport can be applied to business planning?

Focus on what you have to do

Tops sports stars have incredible focus on achieving their goals. Every night in bed, Olympian Michael Phelps said he mentally swims the race in his mind, counting every stroke, visualising his turns, planning every second of the race.

Imagine what could be achieved if you bought such a focus to your business planning, mentally focusing on the key goals you need to achieve and planning the steps that need to be done.

Good business leaders do this by focusing on the key strategic goals for the business, and planning how to achieve these using clearly identified, time-bound actions and assigning responsible people for delivery.

Procedures build consistency

Sports success is based on consistent performance. Be it a competition across months, or a game of two halves, winners need consistent performance to ensure success.

In business, a great way to build consistency is to use clearly documented procedures that allow operations to be standardised. Clearly documented procedures for all aspects of your business a great way to reduce business risk – no more relying on knowledge held by a staff member who can be absent at any time.

Another benefit of documenting procedures is the opportunity to review processes to increase efficiency.  Many businesses have processes that have been there since day one without considering if increased business activity could allow a better way to do things.

Documenting procedures facilitates a process review; by setting down each step in any process, it is easy to identify opportunities for business process improvement.

Innovation to keep ahead of the competition

At the height of his success as a golf player, Tiger Woods took time out from playing to completely reinvent his golf swing. He didn’t need to at the time – he had just won four majors in succession but he knew he had to improve to stay ahead of the competition.

In the same way, business owners constantly need to invest in research and development to provide new products and services to their customers. As in sport, this is done by analysing what makes the competition successful and improving on this to create something better.

Clear expectations

In sport, there is a very clear expectation of success. From the athletes competing for medals to sports bodies competing for funding, high performance against benchmarks is the expectation. There can only be one winner.

High performing businesses have the same clear expectations of performance. Staff have clear objectives aligned to business goals and understand what is required of them to achieve these objectives.

Regular performance reviews are undertaken to monitor and improve performance and development programs are put in place to identify and nurture talent.

So there you have it – four good ideas for sporting success that can be equally applied to business planning. If you need a business coach to help you unlock your business potential call us now on 0800 758 766 for a no obligation chat.

The post What can success in sports teach us about business planning? appeared first on GECA Chartered Accountants.