As a business begins its fiscal/calendar year of operations, there is always a sense of renewal.  Whether the previous year was a success or not, there is always excitement about starting out a new operating year with new goals and a belief that the next year will be better than the last.  Many of us set resolutions at the beginning of each year.  In business, the resolutions should be incorporated into the business plan.  If your company has a business, strategic, marketing and/or financial plan, the odds of achieving success are better than not having one.

In my October 2009 newsletter, I wrote an article entitled “Do You Have a Vision for Your Company?”  Regardless of how you plan your business, it starts with your vision.  Included in your business vision are the company’s mission statement and values.   That article can be viewed at http://www.b2bcfo.com/partners/kcattoor/.

In the companies that I’ve worked with over my 30+ year career, I’ve seen different companies use different terminology for business planning.  Those described in Wikipedia are-

·        Business plan- a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. 

·        Marketing plan- a business plan having changes in perception and branding as its primary goals is called a marketing plan. 

·        Strategic plan-  is an organization's process of defining its strategy, or direction, and making decisions on allocating its resources to pursue this strategy, including its capital and people. Various business analysis techniques can be used in strategic planning, including SWOT analysis (Strengths, Weaknesses, Opportunities, and Threats).

·        Management by Objectives (MBO)- is a process of agreeing upon objectives within an organization so that management and employees agree to the objectives and understand what they are in the organization.

A well run business should incorporate all of the above into their long and short term planning.   I’ve always combined the above plans into one document.  They are all important, but I believe that the most important approach is Management by Objective (MOB).  This approach engages your management team and your employees to achieve common goals.  If goals are achieved, the business is likely to succeed.

When your plan is established, it should be revisited on quarterly basis.  Inherent in the planning process is a detailed financial plan with statements of projected income, cash flow and often times balance sheet projections.  Each of these statements should be supported by detailed assumptions and financial analyses supporting your projections.  These projections should be updated monthly and any needed adjustments to the plan and projections should be made.  

I’ve been fortunate to work with some quality organizations in my career.  CBS, Inc. and the Pohlad Companies- Minnesota Twins to name two.  Business planning was integral to running our businesses successfully.  Once your plan is set, it becomes a living and breathing document. 

I met recently with my financial advisor. We were talking about how so many businesses begin the planning process but do not have the discipline to stay with it.  He stated that in advising clients you sometimes feel like a personal trainer who has a client at the first of the year who wants to lose 20 pounds.  But after 30 days, they no longer show up at the fitness facility.  And so they don’t lose 20 pounds.           

So set your plan and stick to it!  Work your plan and your chances of having a successful 2010 are great!