The last time you borrowed money from the bank there was the obligatory business plan. When did you last read it? More to the point, why were you borrowing money in the first place? What was supposed to happen with the money? How was it supposed to help your business grow?

Borrowing, and the capacity to do so, are indicators of a strong business with a asset base, good management structures and a well executed business plan. That business will be growing according to accurate projections.

Is this a description of your business? Truthfully, on a scale of one to ten, how accurately does that statement describe your business? If you answered less than 6 then your business is definitely not fulfilling its potential.

Most Owner/Managers start out in life as technicians, and when they start businesses they do so with a particular skill set. That skill set only takes a business so far; and then the business tends to plateau.

Sometimes this is because the owner has run out of ideas or enthusiasm, more often it is that they haven’t planned the business but have just lived the dream. Taking the business to the next level requires a business plan!

So back to our scenario: You delivered the business plan, borrowed the money, went back to the office and put it into the filing cabinet.

That is probably the last time it will see the light of day until the next visit to the bank. So often we get this far… and then, because it is just a plan we consider it finished, and fail to follow through on it.

Imagine the difference in the business if we were to just review the business plan 6 months down the road. To Re-View, to look at it again and measure and see… did I do what I said? That was a rather good idea; I am smarter than I thought; why didn’t I implement that one...

The difference in a really effective business plan is that it has built into it the three essential ingredients of success.

 Clearly Itemised actions to deliver the productivity

 Targets and measuring points all along the way

 Budgets aimed at delivering the projections.

This plan is designed to be a strategic tool in growing the business. It gets looked at on a weekly or even daily basis. The purpose of the plan is to spur you into action, but not just any action. Busy-ness is not the same as business. It spurs you on to targeted actions with achievable, measurable results.

So, what are the fruits of a well executed business plan?

More profitability for less time or cash invested (a better return on investment)

Happier Customers, leading to good publicity, referral business and increased profits

Growth in Turnover, Margins and Profits

All these elements have one thing in common. PROFITABILITY.

Are we not in business to make a profit? If that is the case then why would we hide one of our most important tools in a filing cabinet? We are like a small boy going fishing but we left the worms at home. We have the rod and the net but no bait – so any fish we catch will be pure luck. The kid with the worms has a significantly better chance of catching his supper both faster and more often.

If you don’t have a plan, you are just drifting. If you do have a plan – but don’t measure where you are in relation to that plan – you are travelling blind! You had better hope you are lucky!

So dust off that plan, have a look at its elements and see what you can learn from your best teacher. YOU.