Business Planning Cycle

If you wrote a business plan to get a loan and then put it aside, you could be making the biggest mistake of your entrepreneurial career. A business plan is only one part of the business planning cycle necessary to ensure that you reach your goals and objectives. You could be on a crash course without developing a planning cycle that takes your business plan to the working level.

Business Planning Cycle

Develop

Develop a detailed business plan. Whether you are doing a business plan for a start-up business or to grow your business, it is critical to your success. A business plan explains and makes an argument for the who, what, when, where and why's that pave the road toward achieving your set goals and objectives. Such as:
Who are you and what does your company do?
Where will you open your company? Why?
Who is your target market?
What is your marketing strategy?
What is the competitive advantage of your product or service?
What are your measurable and realistic goals for success?
What are your revenues? What are your operating costs?
When are you expected to be profitable?

Prioritize

You may have several goals. Prioritize them. Set a time line for starting and completing your goals with expected dates for achieving milestones that lead to goals. A time line helps you focus and provides a visual framework that encourages action.

Carry Out

Carry out the business plan. Communicate the plan to people involved in helping you make it happen and gain their support and commitment. Set up a day-to-day action plan that leads to milestones toward your goals. Set up a reporting mechanism and decide who will check day-to-day, weekly or monthly reporting and how it measures against milestones.

Monitor and Measure

Monitor and measure performance. Monitor progress and make corrections as you move toward each milestone and goal. Develop an objective set of metrics for each key area of the business plan. Your metrics should provide an objective and true appraisal of progress to date as well as against key goals and objectives. Set a sensible time line for measuring progress--monthly, quarterly, yearly.

Realign

Realign goals as necessary so they will meet your objectives. Realign your detailed strategic and growth management plan as necessary, according to achievements and experience gained about what worked and what did not work. Examine alternatives and decide what changes you might make for future strategies.

References

• A Case Study: Real Life Business Planning