Getting back to basics

Basic planning and organization are vital to the success of any endeavor in life. Yet, many small business owners do not bother to plan. With a one or two person organization it is relatively easy to manage by putting out fires and 'flying by the seat of your pants.' Unfortunately this management style may eventually lead to a decline in business prosperity.

Lack of planning may be due to a lack of understanding about the type and level of planning needed. A fairly detailed strategic plan that outlines future financial and organizational goals is often the suggested course of action but perhaps a better, and simpler, approach is to write an operations plan. This plan details 'what you do' and 'how you do it,' in all areas of your business -- marketing, accounting, technical, training and others. It not only provides a blueprint for the business owner but also provides a foundation for business continuity. Keep all information in a notebook and prepare goals for each section. A one-page worksheet with monthly goals can be a very effective method for a small business owner striving to move forward while dealing with day-to-day business frustrations.

For example, many entrepreneurs neglect the natural flow of incoming work. So much time is spent working on a current project that when the project is finished there is substantial 'down time' as additional work is sought. An operational plan with specific goals can provide a framework that encourages ongoing marketing activities while also maintaining work in the field. It is important to constantly engage in marketing efforts so that there is always potential work flowing towards the business. This type of planning and goal setting can also identify when employees need to be brought on board either to assist with the technical aspect of the work or to help with marketing.

Goals should be kept simple. Set monthly prospecting or sales targets, goals for job completion and other key parts of the operation. Include time management skills as part of overall personal development. A day planner can assist you in gaining control over some of the surprises that routinely appear. Look for bottlenecks in business operations to determine better, lower cost or more efficient ways to get the job done. Set aside time to study your three- and six-month business trends in income statements and cash flow (if you do not have these, goal one should be to find a way to track this information). Look for significant changes -- both positive and negative. This can help you identify problems before they become unmanageable.

Take time off at least once per year to review your company's overall performance and decide on new or revised goals. If paperwork is not your domain, consider outsourcing tasks such as accounting or payroll. But keep in mind that you still need to understand the business side of your operation even if you pass on the labor-intensive day-to-day managerial tasks to an expert in that field.

Don't let basic planning fall to the wayside. It is an important and integral part of your businesses growth and success.