The WhIP Journal
November 2004 Power Your Practice – THE WhIP JOURNAL [What Helps In Practice]
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In This Issue:
YOUR BUSINESS AND INSPIRATION PLAN FOR 2005 – Planning Your Success Is Critical To Realizing It
THAT IS SUCH A GOOD THOUGHT…
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YOUR BUSINESS AND INSPIRATION PLAN FOR 2005 –
Planning Your Success Is Critical To Realizing It
Many people only prepare a Business Plan when they require financing. However there are many benefits to preparing an annual and updated Business Plan.
~To manage your growth and expansion with working capital, staff, and equipment requirements.
~To prepare your annual budgeting and overall operations issues.
~To maintain alignment with your mission statement.
~Critical to managed, planned success.
~To outline the business direction for all team members to know and understand.
Why have I called it a business and INSPIRATION plan? I believe the most important part of every plan you make is how to effectively inspire yourself and your team!
What inspires people? People want meaning and fulfillment in their lives. They want to make a meaningful contribution through their daily work and bring home less stress and dissatisfaction at night. When you and/or your team members are unhappy or unfulfilled that WILL affect your bottom line. No one ‘wins’. There are ways to lead and inspire that support an environment of outstanding performance, innovation, joy, loyalty, and a profitable business.
A Business Plan is one of three MOST important ‘living’ documents a firm can have. The other two are a Strategic Management Plan and a Mission Statement. If you are missing any one of these, now is the time (don’t procrastinate any longer) to take care of your business. (I would be happy to provide any outside consulting you may require on this).
Note: The following outline is designed as a management tool plan NOT for a plan that is going to be used to acquire external financing.
The Executive Summary: A one-page document that will describe the highlights of your business plan. In a concise, clear format (with a compelling story) outline what your firm does, who your niche market is, what opportunity you’ve identified as an inspiration for your business, and what sets your accounting firm apart from everyone else.
Firm/Company Description: This should cover the firm history, its mission, vision, values, goals, major objectives, niche marketing insight, critical success factors, etc. You should also include strategies and plans for the future. Then describe your management ‘team’ and the business experience and ability each member brings. The ‘team’ could be as small as one (yourself) or may include a management team, board of directors, or outside consultants and advisors.
Business Concept: This describes your market potential and outlines your action plan for (at least) the coming year.
-What’s your value proposition?
-What is your niche market? (Be specific. ‘Owner-managed businesses’ is much too generic)
-What’s your competitive advantage to this market?
-Describe your business size and location.
-Describe staff and equipment required for the coming year.
-Describe how you plan to inspire your team, your clients, and yourself this coming year.
-Discuss business risks and a contingency plan. (Be honest and address this seriously)
Basically prepare a SWOT analysis – Strengths, Weaknesses, Opportunities, and Threats.
Make sure your business goals are compatible with your personal goals, your family priorities and your management abilities.
The Service: Outline the services you provide and intend to provide (new or expanded service offerings) and why you’re inspired by them. Outline the process, quality and quality-control, training, equipment, and client service you will provide.
The Service Plan: Outline how you intend to service current, new, or expanded service offerings and any changes or additions required for staff, equipment, space, inspiration, etc.
Marketing Strategy: Sales strategy and selling method. Describe who’s ‘responsible’ for obtaining new clients and ‘upselling’ existing clients. Outline sources, market research and publicity methods for new and existing initiatives.
Business Goals: One year goals in gross sales, margins, new or expanded service offering. Goals over the long term, as in net worth, sale of business, etc.
Action Plan: STEPS to accomplish this year’s goals.
I call this your Strategic Practice Management Plan! It is vital for your ongoing and continued success. It’s the biggest problem in practice today as it affects every area of management an success. Without the steps, the action, the commitment to it then all the planning in the world doesn’t mean a thing. We all agree, but most of us know how difficult it is to follow through. We get motivated, but not truly inspired.
Let me ask a question many of you will want to shy away from –
“How valuable is your Tax Season revenue if it completely takes your focus and time AWAY from your strategic action plan?”
If you are not consistently working ON your practice and following a strategic management plan, please consider joining my 2005 Strategic Circle Group. TBA in Spring 2005.
Financial Information: Include monthly sales forecast for the coming year. Then annual forecast for 2-4 years following, cash flow forecast, and pro-forma financial statements. You’re accountants – enough said ??
Risk Assessment: List the potential competition to your market; ‘What if’, stating external and internal factors; contingency plan for the most significant risks.
Corporate Structure: The legal form, any share distribution (if applicable), list any contracts or agreements in force, directors and officers, background and responsibilities of key personnel, contract professionals/consultants, and organization chart.
Prepare your Plan now, during December, so you’ll be ready to greet 2005 with goals and purpose. You’ll be ready and inspired to take action!
“THAT IS SUCH A GOOD THOUGHT”,
Thoughts worth reading, thinking, repeating and embracing.
“Profit is like oxygen;
essential for our survival, but not the reason for our existence.”
-Lance Secretan, The Way of The Tiger
I hope you’ve found value in this month’s copy of THE WhIP JOURNAL.
My best regards to you,
Debra Dowdell
For more information, or to share your firm’s story please contact:
This is an Opt-in No-Fee monthly ezine/newsletter from Debra Dowdell. You are receiving this because you have subscribed to it. You may unsubscribe or change your information at any time at Details@PowerYourPractice.com. Your information will never be given away, sold, or rented. Ever. Thank you.
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