80% of businesses fail in their first 18 months due to lack of proper planning. That’s a BIG number. It’s evident, then, that planning is not a buzzword; it’s the lifeblood of any successful organisation, regardless of its size. Business success relies on planning.
Those who neglect the planning process may find themselves struggling to keep up and can easily fall behind. In this post, I delve into the significance of annual and quarterly planning, emphasising how structured goals can propel your business forward. My aim is that, by the end, you’ll see how working with an online business manager (OBM) to implement the right goals can lead to the success of your business, while regular check-ins keep you on track and accountable.
The importance of planning for business success
Planning is the roadmap that guides entrepreneurs and their teams to effectively pursue their goals. Without a plan, teams can experience confusion, wasted time and, ultimately, failure. Eugh, what a horrible word. Maybe we could stick with “opportunities for learning”. Seriously, though, no one wants to get things that wrong. Annual and quarterly planning really helps businesses define their long-term and short-term objectives, ensuring that everyone is aligned and informed about the direction the organisation is heading. In fact, I would say that planning is an essential part of running a business. Fail to plan, plan to fail and all that.
Understanding the SMART goals framework
One of the most effective ways to organise your planning process is by using the SMART goals framework. This approach encourages business owners to be specific about their objectives, how they’ll measure success, whether they’re realistic, how they relate to the overall vision, and the time frame in which goals should be met.
Specific
Goals should be clear and specific. For instance, instead of saying, “We want to increase sales,” you might say “We want to increase sales by 20% in the next year by attracting new clients”. Make sure there are dates and numbers involved here – wishy washy goals are as good as no goals at all.
Measurable
Quantifying your goals allows you to track progress effectively. Establish metrics to gauge whether you’re on target. For example, you could track the number of new customers each month. There are so many potential metrics, and they are not everyone’s cup of tea. OBMs LOVE metrics. Numbers don’t lie but can reveal so much.
Achievable
While aiming high is vital, your goals also need to be attainable. Review your existing resources and capabilities to set realistic objectives. If increasing sales by 20% seems too ambitious in the economic climate, consider a 10% increase instead. It’s great to be ambitious, but always start with a “good” goal – one you’ll be happy with. Add in “better” and “best” goals so that, when you smash it, you can crack open the bubbles.
Relevant
Make sure your goals align with your overall business mission. If your goal is to expand to another country, ensure your company has the necessary resources and capabilities to do it. And if you don’t have a mission written down somewhere… well, get on it.
Time-Bound
Every goal needs a deadline. Time limits push you to prioritise tasks and maintain motivation for completion. Establish checks along the way to assess your progress and make adjustments as needed. However, don’t think time frames can’t be adjusted. They absolutely can (because sometimes life gets in the way!), but should be stuck to if possible.
The role of annual planning for business success
Annual planning sets the groundwork. It’s where the vision for the year is laid out in detail. This process involves analysing past performance and setting clear objectives for the coming year. It may sound like a pain and a bit dull, even, but honestly it isn’t. Chatting this through with an OBM can provide some amazing insights.
Step 1: Assess Your Current Landscape
Before making any plans, assess where you currently stand. Analyse your previous year’s performance. What were your successes? Where did you fall short? This assessment provides the necessary insight to create realistic goals. BE HONEST. No one is judging.
Step 2: Define Your Business Goals
Based on your assessment, define clear business goals that you want to achieve in the upcoming year. For example, if customer satisfaction decreased, a goal might be to enhance customer service response time.
Step 3: Resource Allocation
Look at your available resources: finances, staff, marketing and technology. Ensure each goal is supported by the resources required for success. This phase is crucial for avoiding under- or overcommitting.
Step 4: Craft a Strategic Roadmap
This roadmap highlights key initiatives, responsible parties, deadlines and required resources. It keeps everyone focused on their tasks and provides a timeline for hitting your goals. In the OBM world, we think of it as a bus ride. You make the map with your destination, and we drive the bus and get you there.
The value of quarterly planning for business success
While annual plans provide your overarching strategy, quarterly plans help break the larger goals into actionable projects with specific tasks. It also allows for flexibility and adaptability to changing market conditions. Plus, a year is a loooooong time. 90 days is like WHOOSH! Gone!
Step 1: Revisit Your Annual Goals
At the start of each quarter, review your annual goals. Are you on track? This step helps identify any obstacles and provides an opportunity for adjustments.
Step 2: Set Quarterly Objectives
Set specific, detailed objectives that align with your annual goals. For instance, if your goal is to increase sales, your quarterly objective might be to introduce a new marketing campaign for a specific product.
Step 3: Develop Action Items
Each objective should have clear action items assigned to team members. This ensures accountability and keeps your team aligned with your quarterly goals.
Step 4: Monitor Progress
Regular check-ins are essential. Weekly meetings or bi-weekly reviews can help assess progress toward objectives. Utilise this time to pivot strategies if some tactics are not producing desired results.
The impact of regular check-ins
Regular check-ins are invaluable for maintaining the course, both for you and your team. They foster collaboration by allowing team members to voice concerns, share progress and make necessary adjustments. And they are a way for everyone to feel that they are working towards the same goal. Working in silos won’t do anything for your business, your team or yourself.
Establishing Key Performance Indicators (KPIs)
In addition to regular check-ins, developing KPIs helps measure progress objectively. KPIs are metrics that gauge performance against set objectives, allowing you to assess whether you are on track to meet your goals. Examples include sales growth, customer retention rates and website traffic but there are many, many more. If you haven’t worked with KPIs before – worry not! Start with two or three and see how you go.
Continuous Improvement Through Feedback
Feedback, both from within the team and from clients, creates a culture of continuous improvement, as long as it’s handled correctly. An OBM is a skilled leader, and can frame feedback positively, while emphasising the vision, mission and goals as needed. Encourage team members to learn from successes and failures. Client feedback provides insights into service quality and areas for enhancement. Implementing a system for gathering and acting on feedback can lead to progressive growth and enhanced customer satisfaction.
What is the OBM’s role in the planning process?
An OBM can guide you through the entire process: pre-planning analysis, annual and quarterly planning and documenting, objective setting, project and task tracking, metrics analysis and more. Importantly, an OBM is also a sounding board and feasibility checker; they will guide you to creating achievable goals, and won’t let you get carried away with ideas. The OBM wants you to succeed, and this may mean advising against a particular plan or project, especially if it doesn’t fully align with the company vision, mission or values. You might not always agree with your OBM, but remember: their goal is for you to reach your goals. Find the right OBM, and you won’t have a bigger cheerleader. (Pompoms are optional.)
By committing to structured annual and quarterly planning using the SMART framework, your business can stay agile and focused in a world which sometimes resembles a rollercoaster more than a road.
Take Action Today! Remember, the key to effective planning is not just setting goals but fostering a culture of accountability and continuous improvement. Start crafting the future of your business today!
Get in touch and see how I can help you in your business.