A traditional business plan—examining the markets, the numbers, and the likelihood of profit—is something every business owner should do. It makes you consider the nitty-gritty of your business. With that being said, I filed my plan away the day I wrote it. There are many people who have no plan at all. How disastrous is that?
The traditional business plan seems quite limiting to me. It’s like putting on a very tight hat and squeezing all the mental juice out of my brain. I look at it and I just go blank and it’s not something I use to drive my business. It’s more like an atlas when what you need is a street directory. What I want in a business plan is a roadmap to get me to my goal in a way that I can use easily, quickly, and regularly. I want one that I can adapt on the fly and show me new opportunities.
There are many ways to make a business plan. I have seen a collage of photos. It meant nothing to me, but it was enough for the business operator to follow him as he went. Each image represented something that she needed to accomplish on the way to her goals. Let me show you a great tool that you can tailor to suit you. I call it a ‘business plan ladder’. It is the ladder to your success. A word of warning: this will not suit traditionalists or people who love details. This is perfect for the visual, seat-of-the-pants business person, so decide which one you are before you read on. A successful business will go through stages of growth, expansion, and recruiting. The staircase is designed to reflect those stages. By identifying the main stages, the flights of the ladder provide a blueprint for you and your business.
Stairs.
At the bottom is the beginning. What is your idea? Why do you want to do this? Where are you now? Get it clear in your head before doing anything else.
Stage 1 Products/Services
This is about getting started. What am I going to do or sell exactly? Who is my provider? How much do I want to do? It is important that you set yourself a profit or billing goal so that you can see how you are doing. You are deciding who your customers will be and where to find them. Should you have a website or open a store? Let me try and see how it works. This is a time to shape your business. It is about firmly grasping the rung before running the risk of climbing the next one. It may be the hardest step you take.
Stage 2 Increase business
By now, you will be actively running the business. You will have reached your first sales goal so you know that what you are doing is working. Now is the time to start increasing your goals or expanding your market. How will you do this? What options do you have? Where can you look for new clients? Are there better ways to do what you’ve been doing? You’ve proven the idea works, now is the time to really kickstart the business.
Stage 3. Recruitment.
By now, you’ll have enough work to keep you busy, so it’s time to find someone to help you. How many people do you need? What jobs will they be doing? What changes do you need to make to accommodate them? Can you afford it? This is a time of consolidation rather than expansion.
Stage 4. Moving to a larger premises.
At some point, now that the business is up and running and staffed, it will likely need new offices or a warehouse. It has decent sales and good staff. Will you need more staff at the new store? Will you need new equipment? What impact will it have on staff? You’ll probably find yourself going through stages 3 and 4 a couple of times, depending on the type of business you have and how big you want it to be.
Stage 5 Moving forward.
The business runs itself, with the help of a great staff. Hire a manager and find something new to do? Do you sell the business and retire? What is your exit plan? You have reached your original goal. This ladder is quite conceptual and you can adapt it to suit any business. By thinking about the growth stages he is likely to go through, you can plan ahead. Each rung of the ladder becomes a framework for your decision-making processes. You will also be able to find out which rung you are on by looking at what you are currently doing. I find this helps me choose where to focus my energies – I can see what I should be doing to get to the next level.
When I plan my week’s work, I can see where I am and where I need to go, which helps me prioritize. Once you’ve identified the stage you’re in, you can start adding details to the next level. It is so easy to get bogged down in daily work that it becomes very difficult to think about the future. The beauty of this plan is that you are always focused on the future, without looking back. The Ladder is also useful when your business is growing faster than you expected. If you find yourself in stage 3 very quickly, you will have to adapt quickly. Having the stages identified will help you fill in the gaps that would normally have been resolved along the way. It’s a great planning tool because it keeps you on track at all times. I think the most difficult business planning question to answer is “How will I know when I’m there?” The answer, ‘how big is your staircase?’