Business / Business News
Previously we have spoken about the importance of conducting a thorough review of the past year to determine whether your business achieved the objectives that were set out for 2019.
After that review process is an equally important process of developing a plan for the coming year.
What are the goals, milestones, changes to be made, growth plans, marketing strategies, etc?
We must understand that the review process is not an exercise with an objective to pat yourself on the back if you did well or chastisement if you did not do so well.
The purpose of a review is to get insight into what worked and what didn’t. This invaluable information will help you to either rectify or build on your success.
This, therefore, tells us that the review and planning processes are tools for the same goal. One can neither be meaningful nor effective without the other.
Furthermore, an effective plan must be achievable, realistic and within resources.
I do understand that the nature of entrepreneurship is to dream big and aim for the sky. But when does aiming for the sky become pie in the sky?
Sometimes entrepreneurs set themselves up for failure by creating unattainable audacious goals.
There needs to be a balance because, without realism, a perfectly good idea could fall flat on its face because of failing to develop a realistic, achievable plan.
A simple guiding tool for setting goals and developing a strategy is resource capacity.
In a business, resources determine what you can and cannot do. A realistic plan should be based on the company’s resources.
Even if the plan is reliant on a large investment or financing from the bank, that plan still depends on the ability of the company to attract investment.
Many a time entrepreneurs create elaborate plans on the hope of attracting investment, which in itself is not wise because access to funding is never guaranteed.
Nevertheless, the most critical aspect of planning for the next year is to start implementing now.
As soon as your strategy has been developed, you must begin implementing. Why?
Because it gives you a head-start.
If you are changing a management system or entering a new market, test it out right away instead of waiting for January. January is usually a slow month, and you do not want to be caught in the sluggish mood.
But if you start now, January can be a continuation of an already working plan.
Munya Duvera is CEO at Duvera Elgroup
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