I am a huge fan of goals. I believe, to reach its’ poten­tial, every small busi­ness needs a detailed annu­al plan. A plan is sim­i­lar to a bud­get, but dif­fer­ent two very impor­tant ways. A plan is all about goals and it has built in accountability.

A bud­get is a con­straint sys­tem. A plan is a goal and account­abil­i­ty system.
What­ev­er you plan for 2020, you are like­ly off plan. If you are one of the for­tu­nate few, you are above plan. If you are like most busi­ness­es, you are below plan.

Annu­al plans are not meant to be revised in nor­mal times. For exam­ple, if your mar­ket­ing depart­ment fails to imple­ment a mar­ket­ing plan or an effec­tive mar­ket­ing plan, that is not a rea­son to revise your plan. That is a fail­ure in account­abil­i­ty that needs to be addressed, not a rea­son to revise your plan.

Eco­nom­ic shocks, such as those cre­at­ed by COVID, are rea­sons to revamp your plan.

So how do you go about it?

Begin my devel­op­ing a pos­i­tive mind­set. It is easy to be caught in the fear of eco­nom­ic con­trac­tion, espe­cial­ly when it is hap­pen­ing all around you. Instead, reframe the cur­rent moment to one of possibility.

Engage your team. Too many small busi­ness own­ers are glad­i­a­tors when it comes to finan­cial goal set­ting. Instead, become a head coach. Com­pile a diverse team that will chal­lenge you and chal­lenge the sta­tus quo. Keep the con­ver­sa­tion big pic­ture, rev­enue, gross mar­gin, total oper­at­ing expens­es, and net income per­cent­age. Down­load the MACKEY™ Cas­cad­ing Met­rics tool to guide you.

Give your big goals to your finan­cial team to fill in the details.
Cir­cle back with your plan­ning team and put the final touch­es on the plan by devel­op­ing clear week­ly and month­ly mea­sures toward your plan and by assign­ing account­abil­i­ty for those met­rics to the team mem­bers that have the respon­si­bil­i­ty to deliver.

Get start­ed right now. Reframe your mind­set and make a list of who you want on your plan­ning team.

Now go make 2020 amazing!