Small Business Planning
Plan for Growth in Your Home Business by Seeing the Big Picture
Small businesses can plan better by seeing the whole picture and imagining what it will look like in five or ten years.
Small business planning can be as simple as asking two questions: "Why did I go into business?" and "Am I there yet?" If a business owner can answer these questions honestly, he or she is ready to plan for growth. Seeing the big picture can be intimidating, but doesn't have to be overwhelming.
"Why Did I Go Into Business?"
"I wanted to be my own boss." "I can make more money on my own." "I love what I do and I want to do it all the time." No matter what the reasons for starting a small business, asking "Am I there yet?" is the first step to sensible business planning. Answering that one, small question can lead to more complicated planning, but as a first step it's pretty easy. Before long it's not difficult to see your home business like you would a large business - the only difference is that the big picture is smaller.
If the home business owner gets in the habit of seeing the big picture now (when it’s not all that big), it's going to be much easier to grasp when the empire is vast. This broad-based vision of your home business is important to identify areas where stronger systems will be needed to support growth. Perhaps there is another form of business organization that would need more advanced home business planning but will make sense as the company grows. Adding staff might require writing down training guidelines, or reviewing insurance needs closely.
Seeing the Big Picture
A small business is a microcosm of a giant corporation. For a big company, it's important to plan for growth by recognizing that one person can't do everything. For a home business that problem may be more than five or 10 years away, but maybe not! It can be helpful to imagine the home business if the owner were hit by a bus and seriously injured. If someone else needed to step in, how much of the job could they do without training from the boss?
After identifying those areas where the boss can't be replaced, change what can be changed and insure the rest. Bookkeeping, filing, and administrivia should be set up so that someone can take over those tasks with little additional training. This also is planning for growth - a growing business will hire to perform those tasks. Secret formulas, unique customer relationships, and anything else that cannot be duplicated should be covered by disability and/or "key person" life insurance (which protects the company should that person die).
Plan for Growth
Answering the question "Am I there yet?" can lead to many different ways to grow a home business. Focus the strategies to two or three strategies that are achievable. Set deadlines and stick to them, and when those two or three goals are achieved, pick new ones. Small home businesses must plan better than larger ones, in a sense, because all the plans must be carried out by one or two people.
