In this fast-paced and ever-changing world, success belongs to those who plan.
With 2024 just around the corner, to ensure continued success and growth for your business throughout the year, creating a business plan is fundamental. It allows you to make intelligent decisions and provides a competitive edge for your business.
The foundation of a strong business plan is to step back and evaluate your business performance over the last 12 months. A well-structured business plan not only serves as a roadmap for your company’s future but also provides valuable insights into your operations, finances, and strategies. You must create a strategy and action plan that will push your business forward. So, what things do you need to consider when planning for the year ahead?
Review how your business is really performing.Reviewing your business performance over the last year is essential for assessing your progress and making informed decisions for the future. Start by analysing your financial statements, such as income statements, balance sheets, and cash flow statements, to identify trends and assess profitability.
Evaluate key performance indicators (KPIs) related to sales, customer retention, and expenses. Assess how your business is performing, drill down into the real revenue and profit growth, and how your margins have been affected by price increases.
A Gross Profit and Pricing Health Check can provide all that information and more. Find out more here to kick start your 2024 business plan: https://www.oldfieldadvisory.com/get-started/gross-profit-health-check
Establish clear, quantifiable short/long-term goals.Having long-term goals gives everyone something to work towards, and once established these can be broken down into achievable short-term projects and tasks. The same applies to long-term financial goals, being then broken down into month-by-month forecasts.
Use regular management reporting to measure your progress toward your goals and steer your team’s focus. Why not have some healthy competition between departments within the business to help drive those goals into financial reality?
Map out financial insights for the oncoming year.It is essential to create a financial plan that ties in with your sales plan, allowing you to set clear profitability and cashflow targets. We’ll help you ensure your financial plan will be one that will result in improved cashflow and a more valuable business – the plan has to work, and we make it work for you.
Plan out multiple scenariosIn a world of uncertainty, it is crucial to prepare for multiple different scenarios. It is important to create backup plans to effectively respond to unforeseen obstacles or advantageous situations. Being adaptable guarantees that you’re ready for any potential scenarios.
Communicate your goals to your team to ensure that you are all working towards the same thingThere’s no point in creating goals and not communicating them to the rest of your team. You need to have them at the forefront of people’s minds to help drive the business forward. When you communicate your goals to your team, you ensure that everyone is on the same page. This alignment ensures your team understands the company's direction, and they are more likely to work together to achieve common goals.
Create a succession planA succession plan is all about identifying and developing potential successors for key positions in your business and ensuring that the right people and processes are in place for the day you retire and walk away. If you’re unsure or would like some help with creating a succession plan, we’ve got a solution that will help… https://www.oldfieldadvisory.com/articles/2022/07/491-succession-planning
With years of experience in helping clients map out their future, we can work with you to clarify your goals and formulate a clear plan for you, giving you inspiration and direction to help you maximise your growth potential.
Get in touch with the team at Oldfield via info@oldfieldadvisory.com or call 02476673160 and we will be happy to advise on the best solutions for your business.
Please note: This article is provided for information only and was correct as at time of writing (02/11/23). Any lists and details provided above are not exhaustive and are not intended to be full and complete guidance. No action should be taken without consulting detailed legislation or seeking independent professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a result of the material contained in this article can be accepted.
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