THE BENEFITS OF PLANNING IN BUSINESS

We are now six months into the year and time has flown! Have you reviewed your business plan for 2023? Was there a plan for 2023 or are you winging it like last year? Perhaps it’s on the shelf or in a forgotten file, not looked at since it was sent to the bank?

Research shows that your chances of business success increase by between 30 and 142% when a written plan is in place and there’s no suggestion that you could be worse off by having a written plan. If you haven’t got one yet, it’s never too late to start. As accountants we look at figures for the last period and use them as a basic starting point for the following period. The setting up of a 90 Day Plan is a very useful timescale: short enough to keep control and measure but long enough to be able to see the results of changes you have made in your business.

This strategic framework revolves around setting short-term goals, objectives, and action plans to drive progress over a three-month period. By focusing on a manageable timeframe, you can access several key benefits that contribute to growth, adaptability, and overall success. The 90-day planning approach fosters goal clarity and focus within a business. By setting specific, measurable, achievable, relevant, and time-framed (SMART) goals for the short term, teams are better able to visualise and prioritise their targets. This clarity increases motivation, boosts productivity, and encourages proactive decision-making which can also benefit employees, as they can see tangible progress and achievements within a short timeframe. The time-constrained nature of 90-day planning emphasises execution and accountability. By setting realistic milestones and deadlines, businesses can ensure tasks and projects are completed efficiently and on time. Regular checkins and progress reviews during the planning cycle allow for course correction, identifying potential bottlenecks and allocating resources accordingly. Measuring progress and evaluating outcomes are critical components of effective planning. The 90day timeframe provides an ideal window for assessment, allowing businesses to monitor key performance indicators (KPIs) and adjust strategies as needed.

Write these down and identify regular weekly actions to improve the business; whether these are focused on improving sales, lead generation, conversion rates or pricing, reducing costs, improving engagement, or staff retention, they can all be monitored and broken down into small manageable tasks.

General recommendations suggest setting aside five hours a week for working on rather than in your business. Finally, the results of your planning will always reflect in the figures. Discuss your Profit & Loss, Balance Sheet and cash flow with your accountant to see the results of your actions in your business finances.

We’re always happy to discuss your business issues and planning, so call or email me on andyfroggatt@ roystonparkin.co.uk to get a copy of our e-book, 57 Ways to Grow Your Business, or our New Business Kit updated for the 2023/24 tax year.