As we move into the new year, does your business have a game plan for 2016? In business, it is nigh on impossible to become successful if your business plan is to just “wing it.” If you truly want to be successful, it is imperative that you have a business plan for 2016 to ensure that you are on the right track. But there are many reasons that you need a business plan that surpasses goal setting. Consider some of the top reasons why you need to have a business plan for the coming year.
Managing Your Cash Flow
There have been a lot of businesses that were profitable but ultimately failed because they couldn’t adequately manage their cash flow. Managing your cash flow is critical in any industry, and it is essential for businesses of any size. But small businesses have an even greater need for managing cash flows because their pockets aren’t as deep as other mature organizations in their industry – meaning that one wrong step could ruin your business. You need to know where your break-even points are and chart monthly goals to ensure that the bills get paid on time.
Financing Considerations
Oh, and let’s not forget the financing part of the equation. If your business wants to attract investors or even get a business loan, you’re going to have immense difficulties obtaining funding without a business plan. Think about it – would you want to give money to someone that doesn’t have a clear and sensible plan for the coming year? Of course not. Lenders and investors want to know what your plan is for your business so they can effectively gauge the risk as well as their potential ROI.
Support Growth by Adapting to Change
Most industries experience a lot of change as new technologies and trends surface. And your business needs to adapt to these changes in order to become successful. If your industry has changed but you are using strategies from an older business plan, you’re not going to be very effective. That is why it is critical to make a new business plan for the coming year after reflecting on the success of your previous business plan.
But you don’t only need to look at developments within your industry. You also need to pay attention to internal changes as well. As leaders scale their businesses, they quickly find that they encounter growing pains. As part of your business plan for 2016, you need to respond to internal factors and address problems that surface due to growth. Without a business plan, you might grow too large too fast and make some incredibly costly mistakes that ruin your bottom line. But having a business plan that addresses these factors will significantly help your business reach its goals. If you lack a business plan or you simply don’t know how to adequately prepare for the future, it’s time to reach out to a qualified professional.
Creating a Plan for 2016
Creating a solid and viable business plan for the coming year is no easy task. If you need assistance, contact John M. Ruh and Associates. We can help you create a business plan that will help your business thrive in 2016.
Written by John Ruh
John M. Ruh and Associates are mission based business advisors who partner with growth oriented leaders to create the right P.S.T. support: the right People, the right Structure and the right Tools.