NID52: Realistic Small Business Planning

Most textbook business planning is unsuited to the realities of small business. 

Expecting detailed financial projections in 3 to 5 year's time is totally unrealistic when a small business can barely see 6 months ahead.

Instead of planning methods developed for large and fairly stable big businesses, we have developed a flexible, low workload, business planning system for small business.

It is based around a financial quarter GamePlan where you decide what to achieve in this quarter.  Generally, a small business can see three months ahead and have some hope of projecting financial data.

Each quarterly Gameplan has a built in StrategyTree which identifies the 4-6 Critical Success Factors (CSF) that must be addressed for the GamePlan Destination to be achieved.  Things like key staff and required revenue.  Then the several Necessary Conditions for that CSF to work are identified and factored in

We then show how to prioritize these Necessary Conditions so you move quickly and thoroughly to the GamePlan Destination for this quarter.

Next quarter, you look at the current realities and develop a new GamePlan to suit.

This is simple, fast and structured planning that suits the realities of small business.

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Transcript on Realistic Small Business Planning Podcast

Transcript

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Eventually planning methods often don't suit. Small business owners. But it is important to know where you're going and what, and that your strategy is sound. We have developed a planning system, we think is better tuned to the needs and realities. A small business. Let me outline the concepts of our small business planning system in this nugget. Eventually planning methods often don't suit small business. Better suited to large organizations that are financially stable. I have a track record that can easily be extended a few years. I have a lot of staff. So adding one or two more is easily absorbed. And which have staff resources they can dedicate to planning. A big business wants a three to five-year plan. When a small business can barely see. Pass the next six months. Small business knows. Future financial projections are make believe. Because the future. In an evolving small business. It's not very predictable. Especially early on. The owner doesn't know what will work so needs are planning method. That allows for frequent unforeseen changes. Small business growth tends to come in lumps. Starts with a one person band, a solopreneur followed by a micro business of one to four staff. That literally quadruples the business revenue necessary to pay for all those new salaries. Then it expands out to become a small business with up to 25 staff. When the uncertainty associated with hiring new middle management becomes a new unknown. To be planned for. Rather than big day tiled and multi-year plans. We have a system. We call game plans. Typically a small business falls into one of three longer range business lifestyle. First of all those that want to grow. Next. Those that are happy to slow down and have a lifestyle. So they don't want to grow as quickly. But. They want a better quality of life. And thirdly, those. That want to exit business. Since we think on this. I have a reasonably good picture for the next financial quarters direction. We encourage a new game plan for each quarter. Towards the end of the prison. The. Excuse me. Towards the end of the present quarter, you can set up the next game plan for the following quarter. Depending on what you've learned in the current one. That way you only do enough planning to cover what is currently important. But always have a multi-year destination in mind. So your game plans keep heading towards that destination. Within each game plan, we encouraged drawing up a strategy tree. This is done in dot point format or in a mind map. You start with the four to six critical success factors. That had to be done with a game plan to succeed. Things like what is the necessary revenue? What about hiring critical staff? And any others that have, that must be satisfied if the game plan is to work. Each of these critical success factors. Has several necessary conditions. That have to be done. For that Nessus, the critical success factors to succeed. So necessary conditions in order for the critical success factor to succeed. An order for the game plan to reach the destination for the quarter that you'd want. We also show you how to choose the priorities when you're facing many issues, demanding. And your time it can read more about a high tempo. But small business friendly planning system on the website. Under the business planning men here. This approach takes the realities of small business life into account. When setting up a plan. Always remember that our advice is general in nature. Because we don't know the specifics of your business. Always seek specialist advice. For specific issues. If this was success. If this was useful, please subscribe to the channel where you got this clip. And please like this clip. So that we get some brownie points. You can always read more about this topic and any other. Any other topic that we have on our website. Site 12 faces. Business. Thank you for your time.