Five Fundamental Business Planning Questions
Business planning doesn’t have to be complicated. At its heart, business planning means taking time to deliberately think through our business and make choices that move us closer to success.
These five fundamental questions get the planning process started.
In the coming 12 months (or a lesser period of time):
1. How much revenue/sales/turnover do we want?
Let’s start by thinking about customers, markets, products and competition.
2. What do we want our gross margin (NOT gross profit) to be?
Let’s have a think about value and pricing and delivery efficiency.
3. What do we want our EBITDA to be?
Let’s review overheads and operational performance.
4. What will or might prevent us from achieving these numbers?
This gets us into some nitty-gritty. Some frank discussions might be needed – but that’s a good thing!
5. What do we have to do to achieve our numbers?
It’s good to write these things down. It’s better to put a target date beside each one. It’s best to put somebody in charge of each item.
Business planning complicated? Nah – it’s just five little questions… 🙂