Friday, July 23, 2010
How to Monitor your Business Plan
You already have your goal. You are also able to create your sub-objective. But then, how do you monitor them? How can you determine if you are making any progress?
Your sub-objectives should lead you to your main goal. Think of a ladder. The last step of the ladder is your primary goal. Each step towards that last step is your sub-objective. Each sub-objective should lead you to your main goal. For example. If I want to make my business successful, I should be able to connect to my consumers. That is one step. Therefore, that is one of your sub-objective.
A successful outcome of your sub-objective should have a visible result in the operation of your business. Maybe not a success in whole. However, it should be significant enough that you would already feel the improvement. It would be great to make a board in your office. Perhaps near your table. Or a place in your office where you will always see the board. Make a chart. Your chart could be in the form of column, line or pie. Depending on what most appeal to you. The chart should signify each of the sub-objective. The ones achieved should be marked. It is better if you could make a notation beside each accomplished mark.
Chart is useless if not in use. Therefore, compare your chart with the corresponding Balance Sheet and Income Statement. Make a check and balance. The improvement notated in your chart should match with the figures. In figures I mean money. If the improvement in the chart is not directly proportionate to your income sheet, there should be some angle in your business operation that shows significant improvement.
Make a habit of checking and counter checking if your operation is going according to your plan. If your actual report is showing that you are ahead, that is great. However, if your actual figure is behind as compared to the chart, this means you should check your plan. Determine what happened in the operation. Where is the flaw? Why are you not hitting the target. Once you determined the flaw, you can already work from there.
If nothing is wrong with the business operation, check your plan. Verify if you need to do some modification. Observe the business trending. Compare it with your strategy. Make sure you are on the loop. Make sure your business plan is in line with your income sheet. Reconcile your plan with your actual balance and income sheet.
A business goal coupled with a great business plan is an assurance of your success. However, such success will remain an idea unless you are able to strategically take the action plan from the paper into the actual business field.