6 Steps To Creating Your 2020 Business Plan

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business planning

Whether you currently have a business or you’re thinking of starting one, you should have a business plan to carry you through. A business plan isn't a legal necessity like insurance, for example, but it should be viewed as compulsory by anybody who is serious about starting a business. 

Before you start your 2020 business plan, take the time to put in some preparation. What would you like to accomplish in the next year? What are your strengths and weaknesses? What does your financial situation look like? When you have a clear idea of what you want everything to look like, move on to the below six steps:

Step 1: Define Your Goals

The first step of any business plan should be to define and identify your goals. Think of what you hope to achieve by the end of 2020, and every six months after that. See if you can come up with some goals based on current business trends and market opportunities that you’ve found, too. 

Remember, your goals should be SMART: specific, measurable, attainable, realistic, and timely. If you make sure your goals fit that criteria you’ll have a much better chance of meeting them.

Step 2: Revisit The Basics

This is important for any business owner. Revisiting the basics every so often to ensure you’re on track could make a big difference to your overall success. 

  • What is your USP (unique selling point) and how do you differ from your competition?

  • Who is your ideal customer? 

  • What is your mission statement? 

  • What are the top five places that have helped you to generate the best leads?

Step 3: Establish Your Marketing Budget

Your marketing budget is the amount of money you’re willing to allocate to various platforms so that you can capture the attention of your ideal customer. Don’t confuse this with your overall budget. Allocate as much to marketing as possible and don’t try to cut corners. 

Step 4: Note Who You’re Working With

A business can only be as good as its suppliers sometimes, so make sure you outline who you’re working with. How will you build relationships with each of your key suppliers to ensure a smooth service and perhaps even a better deal in the future? Whether you need delivery logistics or you’re looking at packaging manufacturers, make sure you include your suppliers and partners and information on how they help your business model work. 

Step 5: Include An Operational Improvement Plan

There are many aspects you want to cover in your operational improvement plan. Facilities, equipment, culture, sales, customer satisfaction and more should all be covered. You could even get your team involved in this discussion - see if you can define any ‘quick wins’ to help you improve.

Step 6: Develop A Financial Plan

Now it’s time to analyze your income. When did it come in, where did it come from, and do you think your previous marketing had an impact on it? Having a clear picture of your month on month cash flow throughout the year will allow you to utilize your performance.