Image by Billy Alexander

As this year is coming to a close and the new one is just around the corner, this is the perfect time to take inventory of your business.  Now is the time to review your goals for 2010.  What did you want to accomplish?  If you did not reach your goals, why not?  Did the marketplace shift requiring you to shift your goals and focus?  Did internal or external obstacles prevent you from success and what lessons did they teach you?  And what did 2010 provide that will serve as the basis for 2011?

This process of review may be difficult for you, especially if you did not take the time last year to develop your business plan and goals for 2010.  So kick this new year off to a good start by creating a solid plan for 2011.  A well-conceived plan allows you to be focused in all your efforts, provides you with a measurement and accountability tool as you move forward, and provides the framework for your business success.

Planning

Many business books talk of complicated and lengthy business and strategic plan models.  Often times these models are overwhelming and dissuade companies from creating them.  Luckily you do not need to have an MBA or a 20-page presentation to have a strong strategy.  A strong business strategy can be created on two pages if they include the right elements.  Below is the simplified business strategy I use to help businesses get started.  There are three (3) aspects to the overall business strategy; the Business Description, Strategic Plan, and Annual Plan.

Business Description

This is the what, how, where, and why of the business’ existence.  The Business Description is the foundation for the company.  The added benefit from this section is defining a clear purpose and differentiation which is the basis for strong branding and marketing.

Better known as the Five P’s, the core elements of the description detail the what, how, and where of the business.  These include People or your target market, Product or service the company provides, Price including expenses and sales fees, Place which is how or where your product is sold, and Promotion which includes how your product will be branded and marketed.

The second section of the Business Description focuses on the why the business exists.  First is the Vision Statement.  This is a simple sentence or two that encapsulates the ultimate goal of the company, what the company is striving to be.  The Mission Statement supports the Vision by explaining why the company exists and why they have chosen to serve their market.

Strategic Plan

photo by bizior

The Strategic Plan is where you want the business to go.  It is the big picture, ten (10) to twenty (20) year vision of what the company can become.   This Plan begins with the Business Objective or the financial goal for the company within the given time period.  Then it details how the company plans to reach that goal.  As the Strategic Plan is visionary, the details in this plan are broad.

This plan starts out with Objectives or the goals the company wants to reach.  For each Objective, there are three (3) to five (5) Strategies.  The Strategies are how the Objectives will be completed.

Annual Plan

The Annual Plan is based off of the Strategic Plan.  It is the slice of the Strategic Plan that will be focused on in the current year.  Here the Objectives and Strategies are more tangible, actionable, and quantifiable.  The selected Strategic Plan Strategies become Annual Plan Objectives.  Each of these Objectives then receives three (3) to five (5) Strategies on how to accomplish these Objectives.  Then one more layer is added.  For each Annual Plan Strategy, usually three (3) Tactics are outlined to show how the Strategy can be accomplished.  It is very important that these Tactics be specific, measurable, actionable, relevant, and timebound.  These become the must-do’s of the business this year.  The Tactics are really the work plan for the business.

Often times when creating a plan, Tactics are mistaken for an Objective or a Strategy.  “Creating a Website” is a Tactic not an Objective.  “Growing awareness” is the Objective, “Online Presence” is the Strategy, and “Creating a Website” is the Tactic.  The goal is not to have a pretty website; the true goal and desired outcome is to grow awareness so more potential customers can learn about and purchase the product.  Using Objectives, Strategies, and Tactics properly keeps you focused on what you are truly trying to achieve.

I hope this overview of business planning will provide you with the framework and incentive to make the plans you need for a successful new year!

My Dad

My father’s experience with cancer over the last three years has taught me much about patience with the unknown, acceptance of the truth – no matter how painful, and gratitude for the smallest things in life.  But his experience has not stopped teaching us yet.  Lately my father has developed a condition that puts pressure on the brain therefore causing cognitive issues.  It has been an interesting ride.

The first symptom we noticed was diminishing short term memory.  It started with forgetting small things like dates and locations but then escalated to not remembering what he ate five minutes before.  There were also some emotional changes including anger and frustration from a very even-keeled man.  But the symptom that really intrigued me was his new perception of “reality.”

His perception of reality began to shift due to his memory loss.  He thought that people visited who didn’t and forgot who truly did come by.  But then it branched into other areas besides memory.  On Halloween, I spend the night with him in the hospital.  We watched the show Undercover Boss where CEO’s pose as prospective workers to see how their company really works.  This particular episode was about Garden Fresh pre-packaged salads.  My dad started to wonder out loud what it would take to get a job for Garden Fresh.  We chatted about what it would take for a few minutes, but then I realized this was not a hypothetical discussion.  The nurse came in to take his vitals and my father asked her how many bags of lettuce she packed a day.  He truly thought that she was a salad packer, not a nurse.  He got angry when I tried to explain that she was a nurse and that the job was just a television show.  He proceed to ask me what position my brother and other family members landed, and wanted to know if they were all here or at other parts of the company.  My father really thought that he was in the show, that he was supposed to get a job.  And then things got even stranger.  About a week later we were watching a public television show about woodworking.  For hours after the show he complained about how strongly he could still smell the varnish they used.  His ailment was now affecting his five senses or the brain’s interpretation of what these senses were experiencing.  During both of these incidents, my father believed he was experiencing the real world.

Do you see a young girl or an old lady?

It was very difficult to watch my father in this state, but I knew there was a lesson to be learned.  I believe the lesson is that our reality is what we perceive – and we can choose what we perceive.  We choose what we focus on.  We choose what we accept.  We choose how we interpret different situations.  Therefore we are actively choosing our lives every day.  How many times have you gone to a party with a group of friends and upon leaving feel like you were at different events?  One person have a great time reliving old times with old friends, one person was bored by the retelling of old stories, one person was disappointed that there was not enough dancing, and one person thought the food was phenomenal and worth the visit.  Each of these individuals was at the same party – the same reality – but their perception determined how they experienced that reality.  How we grew up, our past experiences, our goals, our likes, and our dislikes all color how we see life around us.  We don’t change reality we are just choosing how we interpret it.

How do you perceive reality?  How are you choosing to live your life?  Do you focus on the good or always look at lack?  Do you share stories of heartbreak or small wins?  Do you look forward to the future with hope or are you resigned to a bleak future?  You can make the choice on how you perceive and therefore live your life.  Watch yourself and catch your thoughts when they start leading you astray into a life of negativity.  Choose the best scenarios.  Choose the life you want to live.  It is amazing how simple it is.  Don’t let society, friends, family, or past experiences determine how you are experiencing this moment.  Take control.  Rule your perceptions.  Create the life you want to live.