It is said that large global companies such as Microsoft started in times of economic depression.
According to the wisest man that ever lived, two main ingredients for success are:
- Effective planning.
- Hard work – implementing the plan.
Questions you must ask yourself:
- Do you have a written well thought out documented plan for the next 5 years?
- Do you have a written well thought out documented plan for the next 12 months?
- Do you have a written well thought out documented plan for this month ahead?
- Do you have a written well thought out documented plan for today?
- Does your employee (partners) know your plans?
- Did your advisors and partners/employees agree to the plans?
- Are your employees/ partners aware of what part they must play in the plans?
- Have you reviewed last month’s plan and the results looking at why there were variances etc.?
- Do you have a written well thought out plan for that new idea?
Effective Planning Involves The Following:
- Setting realistic objectives and goals coming out of your vision and mission.
- Looking critically at your assumptions and all the elements in their minute state in terms of projected incomes and expenditure. Being even more critical to pessimistic about incomes.
- All plans must always involve a documented budget or cash flow projection with clear practical researched assumptions.
- Get help from an experienced accountant to prepare and document your plan especially for financing.
- Always review your medium and long term plans every 3 to 6 months.
- Do not start an idea or function without a written well-researched plan.
- Try to not allow monthly loan premiums to exceed 40% of the surplus especially for smaller projects.
PROVIDING THE BEST FOUNDATION FOR GROWTH IN YOUR BUSINESS- SETTING THE TONE FOR SUCCESS:
- Surround yourself with the right persons for effective and efficient control, decision making, goal setting, and planning.
- Establish a board of directors (Experienced and knowledgeable advisors).
- Seek the guidance of experienced professionals which would include a qualified accountant, an investment consultant, a marketing consultant, a human resource consultant, and an IT consultant.
- Record keeping for reporting and analyzing the financial performance and status of your business constantly. Be guided by your accountant and IT consultant.
- Computerized recording and accounting systems are by far the most efficient approach.
- Computerized systems require proper backups of records and maintenance.
- Obtain training or assistance in setting effective pricing levels.
- Operate your business with ethics and good standards