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!