Three Essential Tools for Business Success

Someone once told me; if you think of an idea, there is a 10% chance you will achieve it. If you take the time to work out a plan, the chance raises to 50%. But if you have to be accountable to someone to meet your plans, that increases the chances to 95%.

Making Change Happen – We all know making and implementing change can be difficult. If we break it down, change happens when we feel the potential benefits outweigh the resistance to change. We can further dissect that down to the benefits into dissatisfaction with the status quo and the vision of a positive future. When the dissatisfaction grows, and the vision becomes clearer, then providing we add some positive actions, change become easier.

Tool #1 Annual Business Plan – The first tool in our box is the Annual Plan. It should be short and sharp, no more than two pages, but well thought out. It should contain:

• A clear purpose, why you are in business.

• A vision of where you want to take your business.

• Personal goals as a business owner.

• A high-level budget, no detail just target gross revenues.

• Some KPI’s to help guide you and report against frequently.

• Assessment of opportunities and vulnerabilities.

• Overall goals for the year that are achievable and measurable.

• These goals broken down into 90 day plans and assigned to someone.

Tool #2

Annual Forecast – This is the plan for the financial aspects of the business. Start with the high level budget in your Business Plan and add detail. Work through sales targets, direct costs, and overheads to arrive at a monthly profit target. Consideration is required for asset purchases and finance or other debt arrangements.

Accountants tend to talk about 3 way forecasts – being the Profit and Loss, Cashflow and Balance Sheet. Each has it’s own important factors for understanding the health of the business. We encourage our clients to make a start themselves then engage with us to work through the detail. Depending on the scale, all three may not be required.

Tool #3

Ongoing Accountability – Having an accountability coach provides the incentive to keep on track. Your coach should be independent, have good business experience, be prepared to call a spade a spade, and cares about achieving your goals but is prepared to provide a dose of reality for inaction. Meetings should be regular giving you dedicated time to focus on your goals. Review your actual numbers compared to your forecast, check off the actions from the business plan, and set the next 90 day actions.

How we can help

Complimentary Client Review – We offer a comprehensive business review which covers a wide range of business matters. If you would like a fresh set of eyes to help identify some areas in your business which need attention, please get in touch.

Three Essential Tools Support - We also offer services based around each of these three essential tools, so if you would like a boost in any one of them, please reach out.