Signs your business plan is a success [Infographic]
Every small business needs to have a business plan in place. This document is filled with information pertaining to annual revenue projections, goals and how you plan to meet them. Business plans can vary in length and include more, or less information, but above all, the document should describe your firm's future and the steps you're taking.
It's understandable if you feel overwhelmed and are curious to see if the plan is actually working. There are four signs that will show you if your business plan is in the right direction.
No. 1: Determine strong revenue
Every business plan should look at future monthly revenue. However, not every month will post strong gains. As a result, successful business plans will identify the months that determine your better revenue months, while also accounting for opportunities for repeat business.
You can use metrics to help spot strong revenue months. Higher earnings can come in the form of aggressively targeting new customers, or attracting devoted ones to keep coming back.
No. 2: SWOT
Known as strengths, weaknesses, opportunities, and threats, a SWOT analysis can reveal new areas where you can increase growth, and as a result, make more money.
- Strengths: Knowledge and areas where your business makes money.
- Weaknesses: Areas that need improvement, such as ineffective marketing.
- Opportunities: The ability to adapt and meet new trends and customer needs.
- Threats: Noticeable vulnerabilities from competitors, political, economic or social trends.
No. 3: The first 30 days
The 30-day sales goal for the first three months of the year will help you identify a metric goal and develop marketing plans. The profit and sales metric, in addition to conversion rates, are numbers you want to pay particular attention to.
No. 4: Insights matter
A good business plan will contain insights that highlight areas where your business has grown and even regressed, which allow for smarter decisions. If your small business is currently succeeding, look for ways to continue increasing your business cash flow and keeping costs low.
If your business is going through tough times, think about strategies that you may not have originally considered while improving on the current ones. Business plans are always changing - don't feel like you have stick to your original goal.
Small-business owners have a lot to account for, and to help keep them on track, a strong business plan is needed.